Published on : Jan 22, 2015
As oil prices are hitting a new low in Canada, the country cannot help but turn to Ontario to make some recovery. Presently, Ontario is Canada’s only hope to sustain its growth in manufacturing. It was in December last year that TD Economics predicted that Ontario will help Canada achieve growth at a rapid pace with a 2.6% hike in GDP in 2015. The current economic winds are suggestive of a recession in Alberta due to dropping crude oil prices.
According to Canadian Press, Ontario will benefit a great deal from Western Canada's losses due to this slump. Some of the manufacturers such as Mark Perry reported that the shifting trends in the manufacturing unit can already be felt. President and chief executive of Canadian Manufacturers and Exporters, Jayson Myers seemed positive about manufacturing sector’s shift to Ontario and further added that he is hopeful of reaching the exact same place as before the recession with robust sales. Myers reported that the manufacturing sectors needs to modernize their facilities to deliver higher quality of goods.
However, market watchers will observe this situation extremely closely to see how Ontario lives up to the global pressure.
With a tone of caution, Myers suggested that companies need to take an innovative approach to manufacturing as making goods is no longer putting things together. He elaborated this by saying that buyers are more convinced with engineering, design, and innovation than a mere assembly of parts. Going forth, manufacturing is going to be about specialized products and customized delivery, and that this must be the undercurrent of most of the companies to survive the pitfall.
Export Development Canada's chief economist, Peter Hall added that Ontario will obviously see new investments in coming few years if these economic conditions last. He further added that demand is getting bigger and bigger, and Ontario’s biggest advantage is that it is close to the U.S. market and happens to be high-developed to cater to these needs as well.