Many Canadian manufacturers eyeing U.S. move as trade tensions take a toll: KPMG
KPMG Canada said 57% of firms have paused, reduced or cancelled capital projects as trade uncertainty pushes investment decisions south.
- KPMG Canada reported on Tuesday that 42 per cent of Canadian manufacturing companies are considering moving production to the United States, with 77 per cent expecting to transition within two years.
- United States Trade Representative Jamieson Greer said last week the U.S. is not renewing the Canada-U.S.-Mexico Agreement in its current form; President Donald Trump maintains sectoral tariffs on steel, aluminum, and automobiles.
- Survey findings show 57 per cent of manufacturing firms have paused, reduced, or cancelled capital investment projects, while 11 per cent plan to move their head office to the U.S. within five years.
- Shifting production south could meaningfully impact Canada's gross domestic product , as the manufacturing sector represents about 10 per cent of the country's overall economic output, KPMG said.
- Anamika Gadia, partner and national leader of industrial markets at KPMG Canada, said manufacturers need more tariff certainty, lower corporate taxes, and better access to capital to remain competitive.
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Trade tensions are driving some Canadian manufacturers to decide to relocate their production south of the border or to postpone their capital investments, according to a new study.
Trade Frictions Drive 42% of Canadian Manufacturers to Weigh Relocating Production to US: Survey
Some 42 percent of manufacturers in Canada have moved or plan to move some or all of their production to the United States as trade tensions persist between the two countries, a new survey suggests. A newly published survey by KPMG Canada indicates that 29 percent of Canadian manufacturing firms have relocated part or all of their production to the United States, while 13 percent intend to do so. Among those considering relocation, 77 percent ex…
The Toronto Star
Many Canadian manufacturers eyeing U.S. move as trade tensions take a toll: KPMG
A new survey shows trade tensions have some Canadian manufacturers deciding to move production south of the border or delay capital investments.
Nearly six out of ten manufacturers have delayed, reduced or cancelled their capital investments.The post Four in ten Canadian manufacturers have already moved or are planning to move their production to the United States, according to a survey by KPMG appeared first on Les Affaires.
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