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TORONTO, Aug. 6, 2020 /CNW/ - While the manufacturing sector faces a challenging backdrop, the outlook shows some potential positives, according to an outlook for the sector in the BMO Blue Book.
The BMO Blue Book, published by BMO Economics and BMO Business Banking, combines the expertise of BMO's economists with information on current national and provincial business conditions provided to BMO's business bankers by local businesspeople. This edition also features an outlook for five key sectors of the Canadian economy: technology, agriculture, energy, manufacturing, and construction.
"The most critical element of the outlook for manufacturing is simply how the global economy recovers from the deep virus-driven recession in the year ahead," said Doug Porter, Chief Economist, BMO Financial Group. "Given that we expect a relative rebound in factory activity globally in 2021, we look for Canadian manufacturing to also rebound by roughly 6 per cent next year from a 7 per cent setback this year."
The report notes that potential positives in the post-pandemic era include shortened supply chains, and keeping production closer to the end user (i.e. reshoring). "As well, the freshly signed USMCA deal contains North American production requirements which are expected to slightly benefit Canada," noted Mr. Porter.
"For smaller operators in the manufacturing space, we are starting to see some positive momentum," said Mike Bonner, Head, Canadian Business Banking, BMO Bank of Montreal. "We are seeing businesses in the space pivot and show a nimbleness to either shift their product lineups or look to alternative products to tap into consumer needs such as personal protective equipment. On the whole, this agility and ability to find efficiencies will help carry businesses past this pandemic and, as with all of our clients, we stand ready to support."
The BMO Blue Book can be downloaded at: https://bmoficc.bluematrix.com/sellside/EmailDocViewer?encrypt=97c0d8cd-f2d4-430e-82d2-b73dce5354f9&mime=pdf.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $987 billion as of April 30, 2020, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group
