Canadian manufacturers integral to fighting inflation, says CME
September 9, 2022 by Manufacturing AUTOMATION
Canadian Manufacturers & Exporters (CME) announced its support for the Bank of Canada’s fight against record-high inflation. The association 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.
CME notes that to do so, it needs the federal government to make boosting manufacturing production a main priority.
“The Bank of Canada isn’t in this fight alone. 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.” said Dennis Darby, CME president and CEO.
CME officials recently met with the Bank of Canada and the federal government, urging 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. Fixing immigration backlogs, streamlining the Temporary Foreign Worker Program, investing in our transportation and trade infrastructure are all must-dos,” added Darby.