MONTREAL—A new provincial industrial policy coupled with the re-industrialization of the United States means there are promising opportunities on the horizon for Quebec’s manufacturing sector, according to a Deloitte report.
With the industry in Quebec standing at a crossroads, the report says the future of manufacturing in the province hinges on a number of issues.
In recent years, manufacturers have faced major challenges with accessing capital, markets and talent.
The rising value of the Canadian dollar has also been a significant hurdle for exporters, Deloitte says.
However, rising Chinese wages and transportation costs, among other factors, have compelled companies to relocate some of their plants to the U.S. and Canada.
And with manufacturing investment returning to North America there are promising opportunities for the future competitiveness and sustainability of Quebec’s manufacturing sector.
“Quebec is about to become the first jurisdiction in North America to adopt an industrial policy, and it is crucial for Quebec manufacturers to mobilize and move quickly to revive this vital sector of the province’s economy,” Louis J. Duhamel, Deloitte consultant partner and corporate strategy leader in Quebec, said in a statement.
Major U.S. corporations have recently reshored certain production capacities, leading to the net creation of hundreds of thousands of jobs since 2010 in the American manufacturing sector.
Deloitte predicts those corporations will require a strong network of suppliers, which is where Quebec manufacturers could be called on to contribute.