MGPS: Manufacturing Job Losses Rising

Canadian exporters are continuing to feel the pain of astrong dollar. However, while other exporting nations haveresisted price increases, it is possible that their marginshave been squeezed to the point where a price increase maybe inevitable. Consumer prices in the U.S. rose 3.5% overthe last 12 months.

Perhaps the fears of a recession are overstated and inflationwill be the result. The weakening housing sector and tighteningcredit conditions seems to be driving fears of the former,while the relative buying power of the dollar is drivingfears of the latter.

Meanwhile, in Canada, Consumer prices are dropping as retailerstry to curb cross-border shopping. Prices are dropping inother areas as well. As a result some Canadian economistsare calling on the Bank of Canada to raise interest rates.

If you are in the sectors that have been adversely affectedby the weak U.S. dollar, you can either wait it out andhope for the best or take action now on areas that are withinyour control. There is never a better time than now to reviewexpenses, suppliers, cost drivers and cost structures. Youmay not be able to fight the dollar but with sound expensemanagement strategies, you can still minimize the impactof the dollar on your margins.

About MGPS

MGPS is a management consulting firm that specializes inreducing non-core expenses. These expenses tend to be indirect,hidden and scattered throughout the organization. MGPS identifieshidden costs and develops and implement efficient processesto drive out unnecessary expenses. The end result is increasedcash flow and greater profitability.