Manufacturing Industry

Spring is a time of year when new life starts to grow not just for plants but for companies and governments alike. Whether it is the hiring of new employees or an annual federal budget, spring brings out a wide variety of change. This rings true for the Canadian manufacturing industry which has seen its fair share of ups and downs over the years but things are on the rise for the moment. The RBC Canadian Manufacturing Purchasing Managers’ Index was at 50.1 last month after adjusting for seasonal variation, up from 49.3 in March. A reading above 50 represents growth, while a number below means contraction. This expansion is most likely a result of greater demand from the United States, Japan and China. Inventories of finished goods have increased for the first time in 2013.

RBC’s chief economist, Craig Wright,  stated that “while the overall gains made in April were tepid, we expect manufacturing output to pick up, augmenting export activity and supporting Canada’s growth prospects.” So while this growth is indeed small, it’s a sign that things are improving for Canada’s manufacturing industry. Although there are many variables that are out of manufacturer’s hands, one aspect they can control is taking advantage of Canada’s funding programs such as SR&ED or Export Market Access (EMA). If you aren’t already taking advantage of these lucrative programs, contact us for a free, no-obligation consultation.