MONTRÉAL, June 3, 2015 – “It’s been a while since conditions for growth in the manufacturing sector have been this favourable, but the recovery is not for everyone,” stated Guy Barthell, Partner in Raymond Chabot Grant Thornton’s Strategy and Consulting Group. His comments were made in conjunction with the release of the Quebec component of the cross-Canada manufacturing sector study sponsored by Grant Thornton LLP, Raymond Chabot Grant Thornton’s Canadian counterpart.
Manufacturers cautiously optimistic
U.S. manufacturers are enjoying a resurgence and free trade agreements have reduced trade barriers, factors that improve local business prospects. In light of this economic and political situation, in particular the weak Canadian dollar, compared to the U.S. dollar, the study reveals that 60% of Quebec manufacturers are cautiously optimistic (slightly below the national average of 63%).
Many manufacturers are concerned about tough competition. This is the reason most often given to explain their reluctance to expand beyond North America. This concern is also seen in the industry’s greatest business challenges, as revealed by the study: controlling costs (1st) pressures on pricing (4th), which is very strong internationally.
An analysis of the Quebec component of the cross-Canada study indicates that for many Quebec manufacturers productivity issues are limiting access to international markets with their growth potential. “It’s important to take advantage of the economic situation to invest in training, research and development. Only those businesses that are able to improve their practices can take advantage of the global economy,” Barthell concluded.
The complete study may be viewed at the following: www.rcgt.com/en/outlook2015.
About Raymond Chabot Grant Thornton
Founded in 1948, Raymond Chabot Grant Thornton has become a Canadian leader in the fields of assurance, tax, consulting services, and business recovery & reorganization. Its strength is based on a team of over 2,500 professionals, including some 230 partners. Together, Raymond Chabot Grant Thornton and Grant Thornton LLP, another Canadian member firm of Grant Thornton International Ltd, help dynamic Canadian organizations unlock their potential for growth with over 4,300 professionals and some 140 offices across Canada. Grant Thornton International Ltd provides clients with the expertise of member and correspondent firms in more than 130 countries, with over 40,000 professionals.
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