Bold action needed to support Canadian manufacturers

OTTAWA (ON), May 5, 2022 /CNW/ – Canadian Manufacturers & Exporters (CME) is calling on the federal government to provide temporary financial relief to businesses affected by supply chain disruptions and work to resolve Buy America and other protectionist measures to mitigate the severe challenges faced by manufacturers.

Appearing today before the Standing Committee on Transport, Infrastructure and Communities, Denis Darby, president and CEO of CME, told committee members that the supply chain crisis is affecting all aspects of manufacturing and that its impact on Canadian businesses is severe. He said there was no immediate end in sight.

“Put simply, these issues are holding back the recovery of the manufacturing sector and, by extension, the recovery of the overall economy,” Darby told the committee. “I can’t overstate the severity of the challenges facing Canadian manufacturers here. That’s why we need bold action to address them now,” Darby said.

Darby also told the committee that manufacturers needed workers and called for action to address labor shortages, encouraging the government to raise intake targets to 500,000 a year into the economic stream.

A recent CME survey found that nine out of 10 Canadian manufacturers are experiencing supply chain issues, and more than 60% rate the impact of these disruptions as major or severe. As a result, manufacturers say they lost about $10.5 billion sales and 80% of manufacturers were forced to raise prices and delay fulfillment of customer orders.

In his testimony, Darby urged the government to prevent further blockages or disruptions of from Canada transportation network, adopt a national manufacturing strategy that from Canada industrial supply chains and accelerate investments in manufacturing and from Canada commercial infrastructure.

“MEC supports the work of this committee and the federal government to address these issues and I believe the solutions we have proposed are a good start. MEC looks forward to rolling up our sleeves and working with the government in the months ahead to tackle our supply chain challenges,” he concluded.

  • The manufacturing sector accounts for more than 10% of from Canada gross domestic product.
  • Manufacturers directly support more than 1.7 million jobs in Canada.
  • Total manufacturing sales in 2019 exceeded $685 billion.

SOURCE Canadian Manufacturers and Exporters

For further information: Jane Taber, Vice President, Public Affairs NATIONAL Public Relations, C: 902-209-9512 | [email protected]