The manufacturing sector faces a serious situation as a result of the setbacks at General Motors and the other domestic car manufacturers according to the CEOs and business leaders on the COMPAS panel. The panel is not clear that GM will be able to turn around its situation.

Panelists perceive the top two reasons for GM’s difficulties as the “Auto Workers’ Union for extracting of benefits that were unsustainable over the long-run” and “GM for agreeing to be saddled with very expensive benefits obligations over the years.” Panelists’ opinions on this have changed hardly at all in the three years since they were last asked about it.

The principal change in panelist opinion is an increase in a belief that the federal government is partly responsible for the situation as a result of “failing to negotiate fair deals with Asian trading partners and fair access to their markets”—a plurality opinion today compared to a minority opinion three years ago. Today, 48% agree with this idea compared to 32% three years ago while 32% disagree compared to 49% three years ago—essentially a reversal in position.

These are the key findings from this past week’s Internet survey of CEOs and business leaders on the COMPAS panel. The weekly business survey is undertaken for Canadian Business magazine under sponsorship of BDO Dunwoody LLP.