CME looks to upcoming federal economic statement for support
by CM Staff
New survey results released by CME last week have demonstrated that this year alone, labour shortages have resulted in economic losses totalling nearly $13 billion.
OTTAWA — Canadian Manufacturers & Exporters has said it wants Deputy Prime Minister Chrystia Freeland to address persistent challenges in the country’s manufacturing sector — labour shortages and investment incentive gaps.
The organization put out its statement just ahead of the federal government’s upcoming fall economic statement scheduled for Nov. 3.
The CME says the United States’ Inflation Reduction Act is the main culprit behind the sector’s investment incentive gaps.
It referenced the Canadian government’s previously stated support for the country’s efforts towards clean electricity, to manufacture electric vehicles and batteries, and to develop the critical minerals sector.
“Manufacturers fully support these strategic moves and are perfectly positioned to help Canada’s economy weather the economic storm,” reads the statement from the CME.
Currently, the manufacturing sector accounts for nearly 10 per cent of Canada’s gross domestic product, two-thirds of goods exports, and it directly employs 1.7 million people across the country. In 2021, it had a sales record high of $718.4 billion.
However, new survey results released by CME last week have demonstrated that this year alone, labour shortages have resulted in economic losses totalling nearly $13 billion.
During this same time, 62 per cent of manufacturers have lost or turned down contracts and faced production delays due to a lack of workers, resulting in $7.2 billion in lost sales and penalties for late delivery.
The CME also says incentives offered in the United States’ Inflation Reduction Act are very concerning on the investment front. The United States’ plan directly incentivizes battery and electric vehicle production, in addition to giving consumers generous tax breaks on their purchases of electric vehicles.
“The once equal playing field between Canada and the United States has now been wiped away, and Canada must play catch up or risk losing future investment in these critical manufacturing sectors,” reads the CME’s statement.
For these two reasons alone, Canadian manufacturers will need specific measures in the Fall Economic Statement to support them.
