This informative infographic explores the effects of inflation on raw materials used by manufacturers in Canada. As the country experiences climbing inflation rates, the prices of raw materials have surged by an average of 37% year-over-year. Canadian Manufacturers & Exporters (CME) provide valuable insights into the specific materials that have witnessed significant price spikes over the past year.
Crude energy materials, including coal, crude oil, and natural gas, have seen substantial increases due to supply constraints and heightened demand. Wheat inflation has been driven by drought and geopolitical conflicts, impacting food and fuel manufacturers. Lumber prices have risen due to increased housing demand and supply disruptions. Manufacturers face additional challenges, such as elevated shipping costs, supply chain disruptions, global uncertainty, and labor shortages.
Consequently, many have responded by raising prices and implementing strategies such as finding alternative suppliers, increasing inventories, and reducing production. Looking ahead, manufacturers aim to strengthen relationships, diversify suppliers, and localize production. While supply chain issues are anticipated to be resolved in 2023, manufacturers must adapt to the ongoing rise in costs for the time being.
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