New opportunities for manufacturing in Canada?
Aug 17, 2021
Supply chain disruptions and severe product shortages in the marine industry (and many other industries as well) raises the idea that there could be opportunities for more Canadian manufacturing in the future.
Several reliable sources have described a tripling of shipping costs from overseas ports as well as sometimes dramatic delivery delays.
In the August 6th edition of the NMMA’s Currents, there was a story that more U.S. firms are buying supplies in the U.S. and moving away from the current dependence on China.
The AP reports that more U.S. firms are considering moving production out of China and closer to the U.S., and one survey by Kearney found that 52% of their respondents “said they have started buying more supplies in the United States in response to COVID-related supply disruptions”; while 47% “plan to reduce reliance on supplies or factories from a single country”; and “41% specifically said they wanted to cut their dependence on China.”
There certainly appears to be a new opportunity, especially for products where the shipping costs are a significant component of pricing. Consumers may also be willing to pay more for domestically produced goods.
