Meanwhile, the flight of manufacturing continues...
Four in 10 Canadian manufacturers eye U.S. production move
Nearly six in 10 manufacturers have delayed, reduced or cancelled capital investments amid trade uncertainty and competitiveness concerns.
One year after manufacturers warned that U.S. tariffs posed an existential threat to their businesses, a new
KPMG surveyopens in a new tab finds four in 10 manufacturers have moved production to the U.S. or are considering doing so as they adapt to ongoing trade uncertainty and mounting competitive pressures.
The survey of 275 manufacturers finds that
57 per cent say they have paused, reduced or cancelled capital expenditure projects due to economic uncertainty and trade and tariff threats, while
42 per cent have scaled back or paused research and development spending. More than half (52 per cent) say they are currently operating in “endurance mode.”
The findings come as discussions surrounding the Canada-United States-Mexico Agreement (CUSMA) intensify. Government action on overall competitiveness, taxation, regulations and trade will play a critical role in determining whether future manufacturing investment stays in Canada, says Anamika Gadia, Partner and National Leader of Industrial Markets at KPMG Canada.
Nearly six in 10 manufacturers have delayed, reduced or cancelled capital investments amid trade uncertainty and competitiveness concerns.
kpmg.com