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A worker splits cedar logs to manufacture shakes and singles at the S&W Forest Products Ltd. facility in Maple Ridge, British Columbia, Canada, on Tuesday, Feb. 11, 2014.
A worker splits cedar logs to manufacture shakes and singles at the S&W Forest Products Ltd. facility in Maple Ridge, British Columbia, Canada, on Tuesday, Feb. 11, 2014.
(ABIGAIL SAXTON/BLOOMBERG)

Enormous challenges ahead as global manufacturing shift leaves Canada behind

It is now cheaper to make goods in once high-cost countries such as Japan or Britain than in Canada, according to a new map of global manufacturing competitiveness.

For Bank of Canada Governor Stephen Poloz, who is counting on a surge in exports to help drive a stronger economy, the unflattering comparison points out the enormous challenge ahead. Canada’s inability to produce internationally competitive products, outside of energy and raw materials, is proving to be a powerful drag on job creation, especially in Ontario.