Transcript Job loss and manufacturing decline

Manufacturing
Matters
May 7th 2007
St. Catharines City Council:
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Economic indicators appear
to be good…
Interest rates are low…
Unemployment is sitting at 6.1 percent…a
historical low
Every month there seems to be good news
about jobs…
Corporate profits are robust …at least in
Oil and Gas
But the real story is on the local job front…
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Ontario lost 171,600 (15%)
manufacturing jobs:
Niagara area has
lost 15% of its
manufacturing jobs
St. Catharines
has suffered as
much as
anyone.
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2007, Announced Six Plant Closures
Employers
Town
Jobs
Canada Hair Cloth
St Catharines
42
Cadbury Schweppes
St Catharines
26
Dana Canada Frame
Thorold
125
Niagara Brewing
Niagara Falls
11
Haun Drop Forge
Welland
29
Dana Canada
Thorold
537
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2006, Three Niagara Plant Closures
Employers
Town
Jobs
Port Weller
St Catharines
250
Newville Candies
Niagara Falls
60
Affinia
St Catharines
250
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2005, Six Niagara Plant Closures
Employers
Town
Jobs
Beamsville
70
ConAgra
Niagara Falls
224
Stelpipe
Welland
400
Bazaar & Novelty
St. Catharines
200
Ferranti Packard
St Catharines
275
Alcom
Port Colborne
70
Maax Spas
6
2004, Two Niagara Closures
Employers
GM American Axle
Maax Spas
Town
Jobs
St. Catharines
750
Beamsville
70
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2003, Seven Niagara Plant Closures
Employers
Town
Jobs
Saint Gobain
St. Catharines
35
Atlas Specialty Steels
Welland
630
Atlas Steel 10-1 mill
Welland
200
Washington Mills, (Exolon)
Thorold
25
Ronal Canada
Stevensville
160
Welland Pipe
Welland
177
GM - Delphi
St Catharines
400
Fleet Industries
Fort Eire
350
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2002, Six Niagara Plant Closures
Employers
Town
Jobs
Domtar
St.Catharines
210
American Axle
St. Catharines
340
Cunningham Foundry
St. Catharines
70
Zippo Manufacturing
Niagara Falls
22
Swagelok Canada
Niagara Falls
88
General Drop Forge
Welland
85
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2001, Six Closures
Employers
Town
Jobs
Taylor & Bate
St. Catharines
7
Fantom Technology
Welland
365
Irvine Industries
Fort Erie
150
E.S.Fox Kent Ave.
Niagara Falls
60
GYRO Industries
Niagara Falls
60
Gallaher* (2000)
Thorold
310
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Niagara
Region
Hit Hard
 Since 2000, 35 plant closures, a loss of 5,952
manufacturing jobs in Niagara.
 Some of these plants have been around since the
1920’s
 These statistics do not take into account, downsizing
that has taken place in manufacturing facilities!
General Motors
Atlas steel
9,000
2,400
2,800
Dana
3,000
200
0
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Canada's Manufacturing Sector
In the last 4 1/2 years Canada has lost
about 250,000 manufacturing jobs.
In 2 years, the job loss rate has actually
accelerated.
More than 150 jobs are lost every single
day.
In the time it takes to do this presentation,
2 manufacturing jobs will disappear
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Condition is Chronic
Manufacturing share of jobs in the economy
down 25% in 10 years
 Not in a recession:
 Early 80’ and early 90’s
 Period of economic growth
 Not isolated to one sector, one region, or one
period of time.

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Other Regions: Other Cities
Nova Scotia
Lost 20%
Quebec
Lost 18%
Windsor
Lost 25%
Toronto
Lost 21%
Oshawa
Lost 21%
Thunder Bay
Lost 20%
St Catharines
Lost 26%
Toronto lost
104,600
jobs
St Catharines
lost 2, 855
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The problem is widespread. Across
manufacturing industries...
Sector
Textiles and Clothing
Jobs Lost
%
66,000
-40%
Aerospace
8,300
-16%
Shipbuilding
3,300
-32%
Food and Beverage
40,000
-13%
Primary Metal
12,500
-13%
8,500
-9%
10,700
10,000
-8%
-7%
Paper
Wood products
Automotive
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Manufacturing is on The Critical List
17%
16%
Manufacturing Share of Total Employment
(Canada) Jan '87 - Dec '06
2002 Start
16.7% of CDN
of recent
Workforce
Loss of 4.2%
decline
15%
14%
13%
12.5% of CDN
Workforce
12%
11%
10%
Jan 1987 Oct 1988 Jul 1990 Apr 1992 Jan 1994 Oct 1995 Jul 1997 Apr 1999 Jan 2001 Oct 2002 Jul 2004 Apr 2006
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Trends bounce back… Manufacturing
is in a Free Fall
Manufacturing Share of Total Employment
(Canada) - August 2002-January 2007
15.00%
14.00%
13.00%
12.00%
11.00%
Aug 2002 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Jan 2007
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Unbalanced Trade is a major problem
 Large and growing manufacturing trade deficit

From a surplus of $12 billion to a
deficit of $29
billion in a decade.
 Deficit grew by 75% during 2006, highest on record.
 Trade exports have shifted to resources
 2005 was the first time that mineral fuel products (oil
and gas) passed transport vehicles as our top export.
 Losing ground on all accounts
 Low-tech, resource-based manufacturing, and higher
value-added
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Manufacturing - Niagara's Economic
Engine
 Accounts for:
 18.4% of local economy
 25,600 workers
 Auto is critical
 Almost 1 in 4 are auto workers
 Manufacturing is Diverse
4,900 Metal Workers
 3,800 Food & Beverage workers
 Petrochemical, Paper and many others

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Loss of manufacturing jobs affects
everyone
 Manufacturing workers earn and spend
close to $1.5 billion a year.





Supports regional economy
Supports infrastructure
Local tax base (property taxes)
Major contribution to income tax
Support local business
 But it used to be more 4,400 lost jobs

is an impact of over 239
in lost wages every year.
million dollars
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Ripple effect…
 A crisis that affects everyone
All the spin-offs
 tourism,
 food and retail,
 social programs,
 charities
 Chronic Insecurity
 Even those who have jobs are constantly
threatened

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Manufacturing Matters
 Manufacturing is a vital source of jobs:
 2.1
million Canadians, or 1 in 8 jobs
 1 in 6 jobs in Ontario
 1 in 7 in Niagara
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Benefits Spread Far and Wide
 Canada’s Manufacturing Sector:
Directly accounts for 17% of
economic activity
Purchase of goods & services, and
spin-offs, total up to 55% of economic
activity.
Creates $3.05 elsewhere for every $1
activity.
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If Manufacturing Isn’t The Future?
Has highest value-added sector
Accounts for two-thirds of nation’s
exports
Accounts for 75% of private sector
R&D
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These Are Good Paying Jobs
 Family-supporting Pay:

Hourly pay in Ontario: $21.33



With overtime, $50,900 per year
24% higher than average for all Ontario
Replacement jobs pay 25% less
 Opportunities for our youth:
 We need core industries
 Engineers, Trades, Apprenticeships, Management,
as well as line workers
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Support For Our Communities
 Canada’s manufacturing workers:


Direct payroll of $94 billion per year
Generate income taxes of $20 billion per year

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

Health Care
Education
Infrastructure
Social Services
Add to this: sales, property and other taxes.
 If you care about our social programs, you
have to care about manufacturing.
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Niagara Information Meeting
Rick Alakas
Wayne Gates
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David Robertson
Tim Lambert
What we want to do…
 Demonstrate that the Manufacturing sector is
key to the future of Canada
 Draw attention to the impact job losses is
having on communities like St Catharines.
 Point out that the crisis…is being ignored
 Call for a report & debate on the manufacturing
crisis
 Our draft resolution asks for …
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Draft Resolution...
 Identifying the manufacturing industry as a
strategic sector in Canada’s economic
development;
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Draft Resolution...
 Undertaking a comprehensive review of
the causes and consequences of
manufacturing job loss;
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Draft Resolution...
 Adopting a comprehensive and integrated
set of economic, fiscal and monetary
policies along with a framework for fair
trade that will both strengthen domestic
manufacturing and protect manufacturing
jobs; and
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Draft Resolution...
 Ensuring that all Canadian workers are
protected in job loss through the
improvements of bankruptcy laws, wage
protection, pension protection and
enhanced employment insurance benefits.
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