Manufacturers Shifting Focus From China: Report
A report out this week suggests the number of manufacturers planning to source from China has been cut in half since last year.
KPMG’s Canadian Manufacturing Outlook 2014 found only 14% of manufacturers planned to source from China in 2014, a drop from 31% in 2013.
The report credits the change to rising energy and transportation costs and increased inflation in China.
KPMG says at the same time Canadian companies are finally moving past “survival mode” to focus their sights on increasing revenue.
Jayson Myers, president and CEO of Canadian Manufacturers and Exporters, says that doesn’t necessarily mean Ontario will see a boost.
Myers says the good news is that more manufacturing work will move to the U.S. or Mexico, some of Canada’s biggest customers.
He says because manufacturers were sourcing mostly high volume, low-tech products from China, the shift is not likely to bring more manufacturing jobs to Ontario immediately.