Ottawa, September 7, 2022 – Canadian Manufacturers & Exporters (CME) supports the Bank of Canada’s fight against record inflation and is in a strong position to play a key role in helping both the bank and federal government achieve that goal.
To do so, however, CME needs the federal government to make boosting manufacturing production a main priority.
“The Bank of Canada isn’t in this fight alone. Manufacturers have an important role to play, too. We make the goods consumers want. When we can’t meet their demand, prices and inflation go up. If we are given the tools we need, we can increase our production and drive down inflation.” said Dennis Darby, CME President and CEO.
Recently, CME officials met with the Bank of Canada and federal government, urging both parties to help the manufacturing industry fight labour shortages and supply chain disruptions. Alleviating these dual challenges is instrumental to helping our sector increase production, drive down prices for goods, and ultimately reduce inflation.
Higher interest rates curb inflation by reducing demand for goods and services and slowing the economy down.
In tandem with the Bank of Canada’s actions, policymakers must now do all they can to build a more productive economy with greater capacity to deliver goods and services to Canadians.
Increasing the supply-side of the economy is not only fundamental to growth, but creates a more inflation-resistant economy.
Added Darby, “We want to strengthen our sector and see it grow so it can continue to drive our economy, improve prosperity, and build long-term resilience against future shocks. Fixing immigration backlogs, streamlining the Temporary Foreign Worker Program, investing in our transportation and trade infrastructure are all must-dos.”
- The manufacturing sector accounts for nearly 10% of Canada’s real gross domestic product.
- Manufacturers employ 1.7 million people in Canada.
- Total manufacturing sales hit a record high of $718.4 billion in 2021.