Analysis-Canada risks losing investment to Mexico as labor productivity skids

  • 📰 SaltWire Network
  • ⏱ Reading Time:
  • 33 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 63%

Business News News

Business Business Latest News,Business Business Headlines

Explore stories from Atlantic Canada.

Third teenager charged with second-degree murder | SaltWire #newsupdate #news #halifax #policeOTTAWA - Canada's low labor productivity level puts the country at risk of losing of billions of dollars of investments to Mexico, as the so-called nearshoring boom spurs companies to move supply chains to North America, economists and lobby groups say.

Economists say continued low labor productivity dampens profits as well as makes Canadian output expensive and uncompetitive globally. Mexico has seen foreign direct investment into the country hit a record $36 billion in 2023, a 27% jump from a year earlier, with more than half flowing into manufacturing, according to official data.

In the key autos sector, Mexico is already producing 1.5 times more vehicles than Canada and has already reached its pre-pandemic output level. Canada's vehicle production is languishing below 2019 levels and the sector finds it tough to compete with Mexico on labor costs due to a unionized workforce.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 45. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Analysis-Canada risks losing investment to Mexico as labor productivity skidsCanada's low labor productivity level puts the country at risk of losing of billions of dollars of investments to Mexico, as the so-called nearshoring boom...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »