Tough road ahead for Canadian manufacturers: CME survey

Canadian manufacturers and exporters are experiencing a sharp contraction in customer demand that is likely to continue into the first quarter of 2009, according to Canadian Manufacturers and Exporters‘ Business Conditions Survey.

“The message we are hearing from manufacturers and exporters across the country is that ‘we ain’t seen nothing yet,'” said CME president Jayson Myers. “New orders are down sharply in most manufacturing and exporting sectors as a result of the credit market meltdown we have seen in the United States.”

“Our members tell us that there are more production closures and job losses to come,” she continued. “We need urgent action to ensure financing continues to flow to creditworthy businesses if we are to avoid an industrial meltdown that would take Canada into deep recession.”

A total of 327 companies across Canada participated in the survey. The survey found that nearly 60% of companies report that orders have fallen in value since September, and 52% say that orders are likely to decrease between December and March 2009.

Additionally, 38% of companies say employment levels are likely to fall over the next quarter, and one-third of manufacturers report difficulties accessing adequare levels of financing.

“The situation for Canadian industry and the Canadian economy is very serious. 2009 will be an extremely challenging year,” said Myers. “Addressing immediate liquidity problems must be the top priority for governments — other economic measures and policy initiatives will be academic if companies have closed their doors.”

The full report can be viewed by clicking here.