The Canadian manufacturing sector is confident the coming year will be a good one, according to the recently released 2013 Business Outlook Survey by Grant Thornton LLP and PLANT Magazine. Sixty-one per cent of survey respondents expect orders to increase in the coming year, 59% are looking at sales dollar values rising, while 46% are banking on higher profits and 37% anticipate higher pricing.

“The past few years have not been easy for manufacturers,” says Jim Menzies, National Leader, Manufacturing and Distribution, Grant Thornton LLP. “While the world’s economic troubles may be on the minds of Canadian companies, they continue to feel positive about the future.”

While last year’s optimism continues for 2013, plans for growth have taken on a different look. Manufacturers realize there are still many challenges to be faced going forward. There is an increasing trend of growing through on-shoring, investing closer to home and bringing operations back to North America, while growing through expansion into emerging, offshore markets has declined somewhat. Manufacturers also continue to focus on taking advantage of research and development, innovation and new products. With these issues in mind, more than ever they need to form a solid strategy around such changes, says Menzies.

Investment in Machinery and Equipment

Manufacturers are ramping up their investments and forecasting average spending of more than $1.2 million in 2013, an increase of almost 40% over 2012. Seventy-eight per cent of them are investing in machinery and equipment, which is the top priority for 39%. Financing capital projects doesn’t appear to be an issue, with 78% indicating they are confident they’ll find the money. Companies continue to pursue traditional avenues for financing such as banks and from their own revenues, while 25% are taking advantage of government programs.

Read the full Grant Thornton press release.