According to a note from CIBC economists Benjamin Tal and Katherine Judge, U.S. manufacturing GDP has climbed almost 10% above pre-pandemic levels while Canadian output still struggles to reach its 2019 baseline. This performance gap is rooted in a structural shift toward automation and technology that Canada has failed to mirror. to the performance gap since 2019," Tal and Judge observed regarding the disparity in growth rates. While Canada faces an uphill battle to close this productivity void, its less-leveraged manufacturing sector may find silver linings in a high-rate environment. Related articlesWhy CIBC warns Canada is falling behind U.S. manufacturingGM cuts Oshawa shift as 1,200 autoworkers face layoffs - CBC NewsU.S. trade deficit nearly doubles in November