Manufacturers could face difficulties as dollar remains firm
April 14, 2011
by Canadian Manufacturing Daily Staff
TORONTO—A new BMO survey by Leger Marketing suggests entrepreneurs will use the strong Canadian dollar to upgrade and expand their business.
“Parity with the U.S. dollar represents a significant opportunity for Canadian entrepreneurs to enhance their productivity by upgrading or refreshing their equipment,” says Cathy Pin, vice‑president, BMO Commercial Banking. “A strong Canadian dollar provides additional purchasing power when importing this equipment and purchasing supplies and inventory from the global market.”
The survey also revealed regional differences, including:
But, the impact of the strong dollar varies depending on the sector, presenting both opportunities and challenges for Canadian businesses.
Utilities, broadcasters, sport teams and some retailers could benefit from a stronger currency, while manufacturing, tourism and some resource industries could face some difficulties as the loonie remains firm.