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Canadian Industrial Outlook: Food Manufacturing—Summer 2018

The Conference Board of Canada, 20 pages, September 11, 2018
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This report examines the short-and medium-term economic and profitability outlook for Canada’s food manufacturing industry.

Document Highlights

Laggard No More—Canada’s food manufacturing industry has often been regarded as a laggard in adopting new technologies. Recent productivity growth, however, suggests that this is no longer the case.

Feeling the Squeeze—Intensifying competition in the retail food landscape will constrain the ability of food manufacturers to pass cost increases on to consumers. This will dampen revenue growth and put downward pressure on industry margins.

NAFTA Termination?—A termination of NAFTA would hurt export growth and reduce the growth trajectory of food manufacturing production. At the same time, its low dependence on the U.S.—both as a source of inputs into production and as a destination for exports—suggest that the industry would be more insulated from cross-border tariffs than most other manufacturing segments.

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