OTTAWA, March 27, 2014 /CNW/ - The outlook for Canada's computer and electronic product manufacturing industry is expected to improve in 2014 after two straight years of financial losses, according to the Conference Board of Canada's Industrial Profile Winter 2014.
The industry is projected to post a pre-tax profit of $554 million in 2014, the first profitable year since 2011.
Following the loss of almost 40,000 jobs since 2010, employment is also expected to grow this year.
"Part of this turnaround can be attributed to a slower decline in telecom equipment manufacturing, and healthy growth in areas such as aviation equipment, instruments and measuring devices," said Michael Burt, Director, Industrial Economic Trends.
"There's also a rise in new companies creating competing products in this sector," he said.
There are also indications of changes expected to affect the offshoring phenomenon of the previous decade, which refers to decisions by companies to move jobs from Canada to other countries, usually in search of cheaper labour. The trend to offshoring appears to be slowing and in some cases reversing as wages in many emerging markets rise and companies re-assess the risks of extended supply chains. This shift will increase the opportunities for Canadian companies to compete for international sales. Unfortunately for the industry, any wholesale "reshoring" in the near-term seems unlikely.
The computer and electronic product manufacturing industry is one of five industries covered in the Canadian Industrial Profile - Winter 2014. Published by The Conference Board of Canada the Winter outlook also examines: Pharmaceuticals, Plastic and Rubber Products, Chemicals, and Non-Metallic Mineral Products.
SOURCE: Conference Board of Canada
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Yvonne Squires, Media Relations, Tel.: 613- 526-3090 ext. 448
The Conference Board of Canada