Manufacturing snags are leading to more price hikes.
Canadian Manufacturers and Exporters is warning that more price increases are on the horizon, thanks to ongoing supply chain hitches.
Divisional Vice President, Ron Marcolin, says this is stress we have never seen before.
“We have issues all throughout the supply chain. We have bottlenecks, we have transportation issues, and increased costs. We have inventory issues and stress on the production and the receiving of certain inventories.”
Marcolin says increased costs are going to get pushed down onto the consumer.
“So the consumer in this case may be another company which than of course can’t absorb the costs, so they in turn pass it down. So it is the trickle down effect. You and I eventually, unfortunately, have to pay more for our goods.”
He describes the situation as the “eye of the storm” with transportation issues, inventory pressures, and stress on production kicking up expenses.
According to a report from the organization, Canadian manufacturers have lost roughly $10.5 billion in sales because of supply chain disruptions.
As well, suffered $1 billion in increased costs.
(With files from Sam Macdonald)
