Insidetrack - Spring/Summer 2016 - (Page 42)

❱❱❱❱ FEATURE THE MIXED BLESSINGS OF A LOW CANADIAN DOLLAR BY JAMES CARELESS According to conventional wisdom, a low Canadian dollar is good for Canada's manufacturing. But that's not necessarily the case, according to the country's rail suppliers. "The low Canadian dollar has proven to be both good and challenging," said Chris Erhart, Sales Manager with North American Rail Products (NARP; maker of rails and railway equipment). "It is a bit of a double-edged sword," agreed Michael Byrne, General Manager of Modern Track Machinery (maker of railway handheld and heavy tools). "In fact, there is a tipping point when it comes to materials or components supply from non-Canadian sources, where the dollar can get too low." The Upside of a Low Dollar At first blush, it makes sense that a low dollar is good for Canadian manufacturers. After all, a lower loonie means that Canadian-made products are more competitively priced against those made in other countries; whether purchased directly from the U.S. and other countries, or indirectly through importers based in Canada. A lower dollar should make Canadian products more competitively priced outside of Canada as well, since foreign purchasers end up paying less when the Canadian dollar is below par with their currency than when it is at par or above their currency's value. 44 42 insidetrack | SPRING/SUMMER 2016 ❱

Table of Contents for the Digital Edition of Insidetrack - Spring/Summer 2016

President’s Message | Mot du president
The Times, They Are a Changin’
National Railway Day
Review of Canada Transportation Act: Impacts on the Rail Industry
Advocating for a Sustainable Future
Infrastructure, Public Transit, and Via Rail: What the 2016 Federal Budget Means for Railway Suppliers
Trade Credit Insurance for the Rail Industry: Grow Sales and Increase Profitability
The Mixed Blessings of a Low Canadian Dollar
Aim Higher
New Members | Nouveaux membres
CapEx: An Industry-Wide Look at Who’s Spending What | Dépenses en immobilisations : Tour d’horizon des immobilisations de l’industrie
Railway Supplier Buyers’ Guide | Guide d’acheteurs des fournisseurs de chemins de fer
Index to Advertisers I Index des annonceurs

Insidetrack - Spring/Summer 2016