Canada is known for many things, but being a major global manufacturer of electronics is not one of them. The country's largest technology manufacturer, Research In Motion (RIM), is trying to recover from slow progress with sales of the brand new BlackBerry Z10, and the future success of the entire Canadian electronics industry may be dependent on it.
Findings by the Conference Board of Canada revealed electronics industry profits dropping to a nine-year low in 2012.
"The largest company in the Canadian industry, BlackBerry, has gone through a major restructuring and its future depends heavily on the success of its new generation of smartphones," said Michael Burt, director of industrial economic trends at the Conference Board of Canada. "Early sales and response for the new Blackberry puts the industry on track to achieve our 2013 forecast. In the longer term, the performance of BlackBerry will shape the industry as a whole."
Ailing electronics industry
Once the standard in the business world, BlackBerry has struggled to keep up with competitors like Apple and Samsung in the rapidly developing smartphone sector. The computer and electronic nearshore manufacturing industry in Canada had a rough couple years, losing 23,000 jobs since 2011, according to the report. Profits in 2012 dropped to an astounding $246 million Canadian dollars from $2 billion Canadian dollars in 2011. With weak exports and a strong Canadian dollar, the technology industry will continue to flounder, the report suggests.
Despite this, the Conference Board of Canada is optimistic that the BlackBerry Z10 will perform well in the market and profits will improve in 2013. Slight price increases and lower costs of manufacturing are expected to contribute to the rebound. The authors of the report believe that 2012 was the low point for the electronics manufacturing industry and profits will continue to increase.