This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

New Canadian manufacturing sector "rising from the ashes": CIBC

Stocks in this article: CM

Surviving firms are stronger, leaner and more productive

TORONTO, April 1, 2014 /CNW/ - After a difficult decade that saw the number of Canadian manufacturing firms fall by 20 per cent and the sector's share of GDP drop to 12 per cent, a new report from CIBC World Markets finds that many industries are ready to reverse that trend and outperform in the coming years.

"A different manufacturing sector is rising from the ashes," says Benjamin Tal, Deputy Chief Economist at CIBC. "Though some failed to survive, many who did are stronger, leaner and more productive. The long and painful adjustment is starting to pay off, with many industries better positioned to take advantage of the weaker dollar to regain positions in U.S. markets and to better integrate into global supply chain opportunities."

The report, co-authored by Mr. Tal and CIBC Economist, Nick Exarhos, notes that Canadian manufacturing has seen dramatic ups and downs over the past 25 years. In the 1990s, when a tumbling loonie lost over 20 per cent of its value, Canada's manufacturing share of GDP rose dramatically, counter to the trend in other western nations that increasingly saw manufacturing shift to emerging-market countries.

"Only when the Canadian dollar started its march back to, and through, parity at the turn of the new millennium, did the adjustment arrive in Canada," says Mr. Tal. "Canadian manufacturing saw a nose-dive—capped off by the Great Recession—from the relatively elevated levels it had seen in the previous two decades."

With currency and market conditions improving, the two economists analyzed the sector in order to rank which industries, based on their market characteristics and actions taken during the dark days of the last decade, have best adapted and are poised to outperform in the coming years.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,710.27 +248.95 1.51%
S&P 500 1,953.23 +26.12 1.36%
NASDAQ 4,453.7220 +70.8750 1.62%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs