Canada's slumping dollar: Winners and losers in Montreal
For some businesses the low currency is a boon, for others it hurts the bottom line
As the Canadian dollar continues to struggle, Montreal businesses are having to adjust their plans.
For some, the low currency is a boon, but for others it hurts the bottom line.
- Canadian dollar will drop to 59 cents US in 2016, Macquarie forecasts
- TIMELINE: What the world looked like the last time the loonie was this low
To offer a look at two sides of the coin, here is a tale of two Montreal businesses.
Business owner Mark Levitt is expecting 2016 will be a banner year.
"I'm looking forward to 2016. With U.S. exports, I think we can maintain at least a 15 per cent growth," said Levitt, president of Metalware Corp.
I'm looking at the impact of the low dollar on Mtl businesses. Mark Levitt describes impact on his shelving business <a href="https://t.co/bM9eEOkmE4">pic.twitter.com/bM9eEOkmE4</a>—@AlisonNorthcott
His business manufactures shelving and does well when the loonie's low.
He buys most of his materials in Canada, and the low dollar means sales to the United States are on the rise.
"It's astronomical for us. It's a great opportunity for us to move forward and develop a relationship status on a long term basis," Levitt said, adding that after 62 years in the business, 2016 could be one of his best years on record.
But good news for Levitt is bad news for others such as Simon Bertrand, the president of the tea manufacturing company Rise Kombucha.
"It's affecting our profit margin," Bertrand said.
"We have to be more efficient, which is good, but it's more challenging for sure. We've seen prices increase by 20 per cent on some ingredients and on our packaging, which is huge. So we have to re-evaluate how we do business."
Simon Bertrand owns Rise Kombucha in Montreal. For him, the low Canadian dollar hurts <a href="https://t.co/0hCZJqv3Ty">pic.twitter.com/0hCZJqv3Ty</a>—@AlisonNorthcott
Canada's low dollar means that American customers are getting a deal. Bertrand said he may have to raise prices just to cover his higher costs.