Canadian Manufacturers & Exporters

Canadian Manufacturers & Exporters

February 27, 2009 13:33 ET

Economic Outlook Continues to Deteriorate-CME Survey

OTTAWA, ONTARIO--(Marketwire - Feb. 27, 2009) - Canadian manufacturers and exporters are not seeing signs of economic recovery yet, according Canadian CME's February Business Conditions Survey.

"Unfortunately, the economic tsunami hasn't loosened its grip on the economy and more storm clouds are still on the horizon," said Jayson Myers, CME president. "We are now starting to feel the full brunt of the downturn in customer demand and the outlook for the next three months is still bleak."

The February Business Conditions Survey was conducted between February 9-23, with a total of 620 companies, from all regions of Canada, participating. This month's survey reveals an additional decrease in new orders over the next three months; a further reduction in employment and a tighter credit squeeze for all companies, regardless of size.

Key trends from the survey include:

- A majority of manufacturers and exporters expect the value of new orders to fall over the next three months - 56 per cent say that orders are likely to decrease between February and May. This is a less optimistic outlook than in January when only 43 per cent of companies were expecting new orders to drop in the coming three months.

- 45 per cent of companies say that employment levels are likely to fall. This is slightly higher than the 42 per cent of companies that expected their employment levels to fall in the January survey.

- The credit crunch is affecting smaller companies the most, but larger companies are now reporting difficulty accessing financing. 60 per cent of manufacturers and exporters report difficulties accessing adequate levels of financing including obtaining working capital, extending lines of credit, accessing financing for new technologies and product development.

"The findings indicate that we haven't hit financial rock bottom just yet," Myers added. "Unfortunately we will see more layoffs and more plant closures making this downturn the worst economic recession since the Great Depression.

"This reinforces the need for federal budget measures, specifically access to credit, to be implemented on an urgent basis to help innovative and creditworthy companies survive this economic downturn - our industry and our standard of living are at stake. We will not see the Canadian economy recover without a recovery in our vital manufacturing and exporting sectors."

The report is available at the following address: http://www.cmememberservices.ca/_uploads/_media/pdfs/cme_web/cme_business_conditions_report_feb_09.pdf.

Canadian Manufacturers & Exporters (CME) is Canada's leading trade and industry association and the voice of manufacturing and global business in Canada.

The association directly represents more than 10,000 leading companies nationwide. More than 85% of CME's members are small and medium-sized enterprises. As Canada's leading business network, CME, through various initiatives including icosmo.ca and the establishment of the Canadian Manufacturing Coalition, touches more than 100,000 companies from coast to coast, engaged in manufacturing, global business and service-related industries.

CME's membership network accounts for an estimated 82% of total manufacturing production and 90% of Canada's exports.

Contact Information

  • CME
    Jeff Brownlee
    VP of Public Affairs
    613-238-8888 ext. 4233