40% of Canadian Manufacturers Relocating or Considering U.S. Shifts Amid Trade Uncertainty
Event summary
- 42% of Canadian manufacturers have moved or plan to move production to the U.S. due to trade uncertainty and competitiveness concerns.
- 57% have delayed, reduced, or canceled capital investments, with 42% scaling back R&D spending.
- 11% of manufacturers plan to relocate their headquarters to the U.S. within five years.
- 61% of manufacturers say their business cannot survive without access to the U.S. market.
The big picture
Canadian manufacturers are facing significant pressure to relocate production to the U.S. due to ongoing trade uncertainty and competitiveness concerns. The KPMG survey highlights that while most manufacturers plan to keep their headquarters in Canada, a substantial portion is reassessing future investment decisions. This shift could have meaningful economic implications, as manufacturing represents over 10% of Canada's GDP.
What we're watching
- Trade Policy Impact
- How the White House Executive Order on Strengthening Customs Enforcement will affect Canadian manufacturers' relocation decisions.
- Competitiveness Dynamics
- Whether Canada can improve its competitiveness to retain manufacturing investments amid U.S. tariffs and trade uncertainty.
- Market Diversification
- The pace at which Canadian manufacturers will diversify their exports beyond the U.S. market by 2035.