Weak loonie won't negate hit from market slump: manufacturers
Quebec manufacturers and exporters say the ongoing economic turbulence cancels any benefits they hoped to gain from a weakened Canadian dollar, at least for now.
Exporters have been hoping the Canadian dollar would drop since it first hit parity with the U.S. currency a year ago.
The dollar has plummeted along with commodity prices and as troubles emerged on the global markets.
But the threat of a global recession still worries Quebec manufacturers.
"Absolutely, the economy is a state of concern," said Pierre Pichette, a spokesman for Bombardieer Recreational Products (BRP).
The company, which builds snowmobiles, all-terrain vehicles and other leisure craft, recently announced a production slowdown, despite the slumping dollar.
BRP can't bank on the low dollar, he said.
"We're always looking at stability in medium- and long-term, and that's what we don't have," Pichette told CBC News. "Although, the signs of the dollar going down is positive for us."
The high dollar did allow BRP and other companies to buy new equipment from the United States at bargain prices, allowing them to improve production.
But the U.S. is still the biggest market for Canadian exporters, which remains a concern, said Jean-Luc Trahan, a spokesman for the group Quebec Manufacturers and Exporters.
"The dollar is one thing," he said. "The economy is the most important thing. You can have a very low dollar, and that's positive regarding when you're selling, but at the same time you need a market."
Exporters need the dollar to remain low for six months to a year before they could potentially start reaping the benefits, Trahan said.
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