The one-time heavyweights of the Canadian economy are lagging behind—a new Conference Board of Canada report says—and to keep up growth, they must invest in new capacity.
According to the new report, which was commissioned by HSBC Bank Canada, the wood products sector, the pharmaceutical and clothing industries, as well as aerospace, vehicle and other transportation parts companies have enjoyed historical success, but have failed to spend enough over the past decade to continue growing.
“Business investment has stagnated over the last several years, leading to a situation where key manufacturing sectors are unprepared to capitalize on growing U.S. demand,” Danielle Goldfarb, director of the Global Commerce Centre at the Canadian think tank, said. “These ‘least prepared’ industries need to make investments in human and/or physical capital to boost capacity.” Click here to read more.
Related: “Taking Advantage of the U.S. Economic Rebound” Report (Registration required)