Full Economic Production Will Likely Return Mid-2022

Disruptions due to port closures, factory shutdowns, product halts, and labour shortages will likely delay return of full production until mid-2022, says a report by RSM Canada. Imports from China, Canada's second biggest trading partner, dropped 30.9 per cent to $3.9 billion in July, from the record high of $5.6 billion in March. Furthermore, the average price to ship a container from Asia Pacific increased by 63 per cent in the March-July period, while the same cost from Europe increased by 79 per cent and, therefore, Canadian businesses have been forced to look for alternative domestic suppliers that can compete in terms of pricing. The lack of options may provide the federal government with the incentive to address interprovincial trade barriers. Additionally, in terms of the labour force shortage, participation rates and labour shortages will become a more acute problem over the next year, says the study. From this past year, job vacancies went from 550,000 in the first quarter of 2021 to 730,000 in the second quarter.