Can Canadian manufactures selling to US stay alive with a $0.98 cent dollar?
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Posted: Thursday Oct 11 11:18:23AM 2007
Well said Prospector. I own a couple of companies and we export about 85% of our product to the US. While we are not a manufacturer, we have been forced to learn how to run a lean, mean organization and we have prospered despite the impact of the exchange rate on our sales and margins. Sadly, we have had to shift a lot of our purchasing to US suppliers and away from Canadian companies who have not taken steps to improve their productivity.
The biggest problem for Canadian exporters, especially manufacturers is that many cannot upgrade their infrastructure and productivity fast enough because this magnitude of a shift in the dollar has happened way too quickly. The Bank of Canada finally seems to be recognizing this. I hope it takes action to slow down the appreciation of the dollar so Canadian exporters, especially manufacturers, have time to adjust and increase productivity, etc. Otherwise, many business will die before they can improve productivity to compete with their US counterparts.
Posted: Thursday Oct 11 8:27:57AM 2007
yes. but they will have to realize less margins. it will help too if the raw product they purchase is originating in the US. Follow IPC.V for more results. Last quarter they reported the majority of thier sales came from the US, it will be interesting to see how the dollar (which should actually be calculated more around 1.05 after bank fees) effects them next time.
Posted: Wednesday Oct 10 5:28:35PM 2007