The outlook for Canada’s manufacturing sector continues to be clouded by ongoing supply chain, workforce, and pricing pressures.
The pandemic has disrupted nearly every aspect of the global supply chain, resulting in shortages and price hikes across a whole range of products. The most prominent example of this is the global semiconductor shortage, which has severely dented auto production.
At the same time, labour market conditions are very tight. Job vacancies in the manufacturing sector climbed to 65,900 in the second quarter of 2021, while the job vacancy rate reached 4.2%, both record highs. These tight conditions threaten to fuel rapid wage growth, which in turn could put more upward pressure on prices.
Against this backdrop, CME surveyed its members about the growth prospects of their firms, focusing particularly on the extent to which labour and skills shortages are affecting their operations. CME’s next member survey will address supply chain issues.