Compared to other global manufacturers, today's Canadian companies have certain advantages. The economic, tax and regulatory regime in Canada is generally more stable than in other parts of the world, as are the Canadian capital and credit markets.
But, will Canadian manufacturers be able to capitalize on these benefits?
New research from KPMG suggests that they will provided that these companies continue to focus on supplier risk management and cost containment.
After polling more than 80 senior Canadian manufacturing executives, KPMG found that:
Minimizing costs and reducing risks remain the leading concerns for Canadian manufacturers today. However, KPMG cautions that too narrow a focus may result in missed opportunities. In order to stay competitive, firms need to invest in innovation, product development, and R&D, as well.
Canadian manufacturers plan to deepen and broaden their relationships with suppliers in an effort to reduce risk and minimize costs.
Low-cost country sourcing will be a focus in the next two years for many Canadian manufacturers, with China at the forefront. Canadian manufactures may shy away from domestic and American suppliers because Canada and the US are increasingly seen as high-cost sourcing countries.
The KPMG report, Reshaping the Supply Chain: New Opportunities for Canadian Manufacturers, is available here.