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The Canadian dollar reached $1.10 in November but eased to about par by month-end. The exchange rate continues to poses challenges for Canadian manufacturers in both domestic and export markets.

The Canadian dollar has seen a dramatic rise from .64 cents in 2002 to a high of $1.10 in November 2007. Canadian companies have had to adjust to the rising dollar over the last several years as the dollar has steadily climbed to at or above par in late 2007.

Value of the Canadian dollar to U.S. dollar
2001-2007

(Source: Bank of Canada)

The Value of the Canadian dollar compared to U.S. dollar
2007 to date

(Source: Statistics Canada)

“With the Canadian dollar at parity with the U.S. dollar, Canadian companies now face a more serious competitive challenge than the introduction of the Free Trade Agreement’, said Mr. Hart, president of Hart & Associates.

Mr. Hart added that Canadian companies can no longer rely on the “currency subsidy” when selling into the U.S. market. Canadian companies now face direct dollar-for-dollar competition for their U.S. sales and must rapidly make changes to keep them competitive. Compounding the challenge further for Canadian manufacturers are U.S. companies aggressively selling into the Canadian market where Canadian business and retail customers are looking for cheaper U.S. products.

Hart & Associates provides a number of specific services that helps Canadian companies improve their ability to export to the U.S. and protect their customer base in Canada. Some of our services include improving companies’ cost efficiencies, obtaining new input sources, finding new customers and markets for products and strengthening customer relationships. Contact us to learn how we can help you protect yourself and profit from the higher Canadian dollar.

Contact Hart & Associates to find out how to protect your export and domestic sales.