This analysis helps us understand a significant portion of the gap in export performance. Our research also tells us that most of the sectors expected to lead the recovery in nonenergy exports still have some excess capacity.
Our Business Outlook Survey interviews indicate that while companies plan to invest in new machinery and equipment, few are planning to expand their capacity, at least so far. This helps explain why business investment might be delayed relative to what would be expected in a normal cycle. This research has important implications for Canada’s employment picture.