Raw material costs causing price inflation in Canada
Monica FergusonBusiness Operations Production Manufacturing Canadian Manufacturers and Exporters global uncertainty labour and skill shortages raw materials price supply chain bottleneck sustained high costs
A Canadian Manufacturers and Exporters (CME) infographic shows the impact on manufacturers of sustained high costs for key raw materials, such as crude oil, natural gas, wheat, and forestry products. The raw materials price index for May was up 37.4 per cent from a year ago and has risen by two-thirds since January 2020.
Manufacturers are experiencing other challenges, including supply chain bottlenecks, labour and skill shortages, and heightened global uncertainty. These challenges are weighing on margins, leaving manufacturers with no choice but to increase prices. This is one of the factors driving high consumer price inflation in Canada.
“Canadian manufacturers are feeling the pain from these rapidly increasing costs and are ready to do their part in the fight against inflation,” said Dennis Darby, president and CEO, CME. “But this will take concrete steps from governments to help the industry get the workers it needs, improve the environment for business investment, and accelerate spending on critical infrastructure”