Canadian Manufacturing

Food, Health & Consumer Products of Canada attribute weak manufacturing sector to regulatory red tape

Canadian consumer health product executives reported they are six times more likely than counterparts in the United States, and the UK to find costs of doing business restrictive.

January 14, 2021  by CM Staff

MISSISSAUGA — The Canadian consumer health products sector (the makers of over the counter medicines and natural health products such as pain relievers, cold remedies and vitamins) is more negatively impacted by high costs of doing business and unnecessary regulatory red tape than counterparts in other countries such as the United States, United Kingdom, and Australia, weakening essential manufacturing and supply chains, limiting innovation and product choice, and increasing costs for Canadians.

As part of a study conducted by Deloitte on behalf of Food, Health & Consumer Products of Canada (FHCP), Canadian consumer health product executives reported they are six times more likely than counterparts in the United States, the United Kingdom, and Australia to find costs of doing business restrictive.

FHCP CEO Michael Graydon commented:

“No one’s health is well-served by regulations that needlessly drive-up costs and keep Canadians waiting up to ten years longer for safe, effective products available to consumers across our borders and around the world. COVID-19 has reemphasized the perils of hollowing out essential manufacturing and supply chains – perils Canada can no longer afford to ignore.”

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Other key findings include:

  • 100% of Canadian consumer health executives interviewed for the study say regulations have a negative impact on investment (compared to half of other global executives)
  • Regulatory restrictions make consumer health product companies in Canada twice as likely to abandon new product innovations compared to global counterparts
  • Top barriers to product innovation in Canada are time to profitability (80% of executives cite) and testing costs/requirements (60% cite)
  • Per-unit manufacturing costs are 70% higher in Canada than in the United States, the United Kingdom, and Australia, and Canadian executives are three times more likely than their global counterparts to expect significant future increases in regulatory costs

The findings reinforce FHCP’s previous warnings that unnecessary regulatory restrictiveness and high costs of doing business also weaken Canada’s food and consumer goods sectors.


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