The 2% Challenge
The COVID-19 pandemic triggered the deepest economic recession in nearly century. And while Canada’s manufacturing sector has recovered relatively more quickly than industries like hospitality and tourism, the manufacturing sector faces several challenges that threaten both its short and long-term outlook, including ongoing supply chain disruptions, labour and skills shortages, and a prolonged investment slump. Indeed, between 2015 and 2019, Canada accounted for just 1.2 per cent of total manufacturing investment in OECD countries. By comparison, the US and Mexico’s shares were 28.1 per cent and 12.3 per cent, respectively.
Over the next decade, Canada’s goal should be to attract at least 2 per cent of annual OECD manufacturing investment, equal to about $43 billion per year. To meet the “2 per cent challenge,” the government needs to adopt a pro-jobs and pro-growth industrial strategy that makes Canada a leading destination for manufacturing investment again.
Join CME’s President & CEO, Dennis Darby, as he outlines the four pillars of a comprehensive industrial strategy for Canada.