For Canada, 2012 was a year of sluggish domestic economic conditions and challenging global headwinds, yet there is an underlying sense of confidence for what 2013 and 2014 may bring, according to a report from the Manufacturers Alliance for Productivity and Innovation (MAPI).

The country’s fortunes should improve along with, but are partly contingent upon, anticipated growth in the United States, the group says.

MAPI’s industry forecasting model for 15 industries representing 80% of Canadian manufacturing output suggests the recovery will be stronger in 2013 and 2014, particularly for durable goods industries.

Motor vehicles production is expected to lead the way this year at 6.3% while wood products, at 6.8%, and machinery, at 6.4%, are predicted to be growth leaders in 2014.

The category of miscellaneous products, which includes medical equipment and supplies as well as sporting and athletics goods, is anticipated to grow by 4.5% in 2013. Chemicals are forecast to improve by 3.7% in 2014. Textiles are an ongoing concern, and expected to show 3.2% growth for 2012 but decline by 7.3% this year and by 7.6% in 2014.

Boisclair added a note of caution to the improved overall outlook. “As a small open economy, Canada faces a number of threats externally that cannot be ignored,” David Boisclair, MAPI economic consultant said.

“All major trading partners have pending issues, which, if not resolved positively, will imply lower than expected growth: the U.S. fiscal cliff, growth stabilization in Asia, and the Eurozone debt crisis,” added Boisclair.