Analysis-Canada risks losing investment to Mexico as labor productivity skids [Yahoo! Finance Canada]
Ford Motor Company (F)
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Source: Yahoo! Finance Canada
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. Mexico is fast becoming a global destination to manufacture products for supply to the U.S., where companies are seeking suppliers closer to home to reduce their dependence on China and shorten their supply chain. Canada, however, has seen little benefit from this trend. If Prime Minister Justin Trudeau's government fails to take measures to boost productivity, Canada will miss a historic opportunity to attract funds flowing into the region from the "nearshoring" boom of U.S. companies looking for suppliers close to their homebase, economists warn. ADVERTISEMENT The annual labor productivity of Canadian businesses declined 1.8% in 2023, its third consecutive year of decline. That prompted the Bank of Canada Senior Deputy Governor Carolyn Rogers to sound the alarm over the country's productivity declin
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