According to a recent survey in PLANT Magazine by Grant Thornton LLP, 2014 shows growth potential for the Canadian manufacturing industry.
This survey was based on 450 responses from senior executives in leading manufacturing operations. It was found that they’re looking to invest in new employees, lines of business, and geographic markets. “What’s clear from the results is that Canadian manufacturers believe their industry is in growth mode,” says Jim Menzies, National Leader, Manufacturing and Distribution, Grant Thornton LLP.
One of the leading priorities over the next three years is in machinery and equipment investment. With such a heavy commitment, companies are trying to improve productivity and grasp their share that is starting to be competitively lost to places like South East Asia.
The majority of the companies are currently making most of their sales in Canada, and 56% plan on continuing to pursue new customers in North America. There has been some business development as experimental expansion steps have been taken in other regions such as Western Europe and China. Over the next three years, however, South America is going to be a target of growth for at least 40% of the surveyed companies.
With lots of potential growth comes many challenges for companies; the first being financing for new projects. Finding financing externally can be a struggle, so the majority of companies will be relying on internally generated cash flow. At the same time, controlling and reducing costs, while improving productivity will be a top priority.
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