Note to the Government: Manufacturing Matters

A recent poll conducted by Harris-Decima for Canadian Manufacturers & Exporters (CME) and Food & Consumer Products of Canada has found that Canadians believe that the country’s manufacturers are more than competitive with foreign manufacturers in terms of quality and value; however, a large majority believe that we cannot compete based on price.

Of the 1,000 people surveyed, 51 percent feel that equivalent goods manufactured in Canada will be of higher quality, and 57 percent feel that products will have a better overall value; however, 75 percent believe that goods produced here will have a higher price than the same goods produced outside of the country.

Unsettling revelations in the survey have found that Canadians are unsure whether the jobs lost in the manufacturing sector during the recession can be replaced. The numbers are fairly equal, with 46 percent believing that these jobs can be replaced and 47 percent who feel that these jobs will never come back.

Notwithstanding this uncertainty, Canadians are not prepared to turn their backs on Canadian manufacturers.

The survey also states that more than two-thirds of the population rejects the notion that Canada cannot compete with lower-cost countries for manufactured goods and that we should be looking to other sectors for future job growth. Instead, they hold that a strong economy requires a strong manufacturing sector and that the government should be striving for ways to protect these jobs.

“Canadians haven’t written off manufacturing and governments shouldn’t either,” said CME President and CEO Jayson Myers. “As Canada’s largest business sector, manufacturing is the wealth creation, innovative segment of the Canadian economy, with jobs paying well above the national average. Manufacturing is the future, our future.”

Canada Versus U.S.

The American economy is having a tougher time recovering than Canada’s, essentially defining a new economic norm moving forward for both countries.

“The conventional wisdom is that the recent recession hit the American consumer much harder than the Canadian consumer,” said Allan Gregg, chair of Allan Gregg Strategies and Decima Research. “While this study bears that out, it also indicates that the difference in the two countries is more one of degree than direction. While economic concerns and the impact of the recession may have been deeper in the U.S., Canadians in no way have been immune to the effects of the downturn.”

No matter the differences, the recession has had a significant impact on both Canadian and American consumers, and economic concerns continue to dominate the public opinion agenda in both countries.

In fact, the economy and unemployment are cited as the most important problems facing Canada and the U.S., and the majority in both countries continue to believe that the recession is not over yet, the survey states.

While the direction of sentiment is the same in both countries, the findings make it clear that the intensity of consumer anxiety is much deeper in the U.S. More than twice as many Americans as Canadians report that they are “very” or “somewhat worried” about their family’s financial situation.

Similarly, almost twice as many Canadians (63 percent) as Americans (36 percent) express confidence that they will be able to retire with enough income and assets to last the rest of their lives.

“This reinforces the sentiment of Canadian business that it’s going to be a long, slow recovery and moving forward, business as usual is simply not an option,” said Myers. “When one customer purchases 72 percent of your products, your economic well-being hinges on the economic health of that consumer. With such a long-lasting economic hangover south of the border and increased protectionism, the onus is on Canadian companies to define a new normal, their own future moving forward.”

For more information, visit www.cme-mec.ca.