New Brunswick manufacturers paused hiring and major spending due to the uncertainties over the impending U.S. tariffs, which are expected to take effect Tuesday.
Ron Marcolin, divisional vice president of Canadian Manufacturers and Exporters, explained manufacturers took these proactive steps while waiting to see if the tariffs would be implemented.
“Manufacturers in New Brunswick are under stress. They continue to be under stress, but they are prepared.” Marcolin said.
In the meantime, he said companies have been stockpiling inventory and accelerating shipments to the U.S. to minimize disruption.
“We have been blessed with our geographic advantage in New Brunswick over the years, but now obviously it’s looking like that market is tightening up and it’s time for our manufacturers to look elsewhere,” He said.
Marcolin suggested that manufacturers might need to expand their markets and look for suppliers within Canada and internationally.
The Vice President of Canadian Manufacturers and Exporters emphasized that developing new international markets may take longer and involve building relationships.
“Markets just don’t magically appear. You have to work them to get to the volume that you ultimately both benefit from,” Marcolin said.
Marcolin noted that provincial governments across Canada are discussing potential support measures for manufacturers.
He explained that the proposed assistance would be similar to COVID-19 relief programs, involving loans and other types of financial support rather than direct grants.
