Factories adjusting to strong dollar

Bank of Canada Governor says output has increased despite labour shortages
By
|hrreporter.com|Last Updated: 06/22/2006

Canadian factories are increasing production as the economy faces labour shortages, increased international competition and a dollar that has soared to a nearly 30-year high, said Bank of Canada Governor David Dodge.

"Canadian manufacturers have been getting more efficient," Dodge told the House of Commons Standing Committee on Industry, Science and Technology. "Indeed, we have seen a tremendous rebound in manufacturing productivity — output has increased even while the number of jobs has been reduced."

Firms have taken advantage of the strong Canadian dollar to buy new machinery and equipment to boost productivity. The increased productivity and efficiency will improve Canada's international competitiveness in a global economy, said Dodge.