Canadian manufacturers ‘key’ to fighting inflation, CME says
The association said that Canadian manufacturers are in a strong position to help fight against the current high inflation.
Canada’s federal government has to make boosting manufacturing production a main priority in the fight against high inflation, the Canadian Manufacturers & Exporters (CME) said.
In a Sept. 7 news release, officials with the Ottawa-based CME announced the association’s support for the Bank of Canada’s fight against record-high inflation, and said that Canadian manufacturers are in a strong position to play a “key role” in helping both the bank and the federal government achieve that goal.
“The Bank of Canada isn’t in this fight alone,” CME president and CEO Dennis Darby said. “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.”
CME officials recently met with the Bank of Canada and the federal government, Darby said, and urged both parties to help the manufacturing industry fight labour shortages and supply chain disruptions. Alleviating these dual challenges is instrumental to helping the sector increase production, drive down prices for goods and ultimately reduce inflation, explained the association.
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 a greater capacity to deliver goods and services to Canadians, said CME.
Increasing the supply-side of the economy is not only fundamental to growth, but creates a more inflation-resistant economy.
“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,” Darby said. “Fixing immigration backlogs, streamlining the Temporary Foreign Worker Program, investing in our transportation and trade infrastructure are all must-dos.”