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