by Michael Arbow MBA
Partner, RSD Solutions Inc.
As pointed out by Peter Hall, Chief Economist at the EDC, Canadian corporate profitability is on the rise, with 2010 showing an overall increase of 7.9%. At a macro-level it seems that the ascending loonie is having little impact on exports but sadly there is a disconnect lying just below the surface (no pun intended). The significant rise of commodity prices has helped Canada’s miners, food exporters and the firm’s that touch those sectors but has left the high value-added manufacturers in their wake.
With a solid generational up-trend in the demand for commodities the Canadian dollar will continue to strengthen forcing value-added manufacturers to refine operations and seek new markets. This takes time: time that through well thought out and executed risk strategies you can buy. So this maybe a good time for the marketing department to meet up with finance and the risk team to determine future needs and expectations.
To hear more on this subject follow the link to EDC’s weekly commentary:
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