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US benefits from higher Canadian labour costs

Published by Steve Coleman on January 09, 2012

Companies seeking better bottom lines are moving out of Canada and in into the arms of American communities courting them with cheaper labour costs.

An opinion piece in the Watertown Daily Times in Watertown, N.Y. says it is US communities that are reaping the benefits of higher labour costs for Canadian manufacturers at home.

One of the big reasons for several moves south is the fact US companies made a decision to push toward more automated equipment that lowers unit production prices. Automation pushed manufacturing costs down 13 per cent between 2000 and 2010. By the same token, prices in Canada (in part because of the rising value of the loonie) increased 18 per cent over the same period.

A look at the situation through American eyes can be found at the following link.



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