While a rising Canadian dollar may have once driven fear into the hearts of Canadian manufactures, Reuters is reporting that the sector is well-equipped to handle the currency's recent upward climb. The Canadian dollar is currently sitting at 99 cents American and rising but smart planning from the country's manufacturing sector means losses will likely remain minimal.
"Of course, it hurts that Canadian goods cost more abroad, and, of course, higher wage levels increase the cost of doing business in the United States, Canada's biggest market by far. But manufacturers, for the most part, have done it all before, and those that survived the first bout of currency-induced pain say they are ready for the second."
"On its own, the increase in the Canadian dollar forces one to be more competitive and if you're not competitive, you die. It's as simple as that," said Rob Wildeboer, executive chairman of auto parts maker Martinrea International Inc (MRE.TO).
"Jeff Brownlee, vice president of public affairs at Canadian Manufacturers and Exporters, said that companies would be better able to compete if the currency were more stable, but the industry has learned to adapt."
"What we've come through in the last four or five years just proves how resilient Canadian manufacturing sector is and I think this is actually going to make the Canadian manufacturing sector stronger in the long run."
read full story
hereoriginal source
Reuters