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S u i t e s
Paul Young - Bio
โข CPA, CGA
โข Financial Solutions
โข SME โ Business Process Changes
โข SME โ Risk Management
โข SME โ Close, Consolidate and Reporting
โข SME โ Public Policy
โข SME โ Financial Solutions
โข SME โ Supply Chain Management
โข Academia โ Advance Accounting, Public Finance
and Advanced Management Systems
Contact information:
Paul_Young_CGA@Hotmail.com
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S u i t e s
Agenda
โข PMI Index โ USA and Canada
โข EPIC failures with Manufacturing
โข Manufacturing by key Sector
โข Manufacturing by Province
โข Competitiveness
โข Automotive
โข Class 8 Truck
โข Steel Production
โข Unifor
โข Taxation vs Subsidy blog
โข Blog โ Near Shoring
โข Solutions
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โข Manufacturing sales rose 1.6% to $58.9 billion in May, following a 0.4% decline in April. The increase was mainly due to
higher sales in the transportation equipment industry.
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/190717/dq190717b-eng.htm
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Introduction
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Source - https://tradingeconomics.com/united-states/business-confidence or
https://tradingeconomics.com/canada/manufacturing-pmi
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PMI Index
USA PMI Index Canada PMI Index
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Source - https://qz.com/1269172/the-epic-mistake-about-manufacturing-thats-cost-americans-millions-of-jobs/ 6
Epic mistake by Manufacturing
โข Unions fought automation as it meant less
union jobs
โข Robotics have played key role with
manufacturing
โข More and more manufacturers are moving to
3-D Printing. Market size potential is $33B -
https://www.prnewswire.com/news-
releases/world-3d-printing-in-digital-
manufacturing-market-outlook-2018-2023---
3d-printing-is-one-of-the-cornerstones-of-
industry-4-0-and-will-facilitate-evolution-of-
supplydemand-economics-300715302.html
โข AI continues to help streamline manufacturing
processes - https://supplychainbeyond.com/7-
ways-ai-and-automation-are-driving-the-future-
of-manufacturing/
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Manufacturing Sales by Sector
Source โ Stats Canada
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Manufacturing Sales by Province
Source โ Stats Canada
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Source - http://cme-mec.ca/wp-content/uploads/2018/11/Doc_Industrie-2030_Manufacturing-a-Competitive-Business-
Environment-in-Canada.pdf
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Competitiveness
I have been saying the following for since
Liberals took office in 2015
โข Low taxes free up money to reinvest in
new capital and advanced technologies
โข A strategic taxation policy can reward
companies for growing
โข An easy-to-navigate regulatory
environment reduces the cost of doing
business in Canada and makes
domestic companies more competitive
Strategic government spending on
economic and trade-related
infrastructure improves productivity
and Canadaโs ability to compete in
foreign markets
Note:
Many thanks to Deloitte for providing a
similar view to mine in terms of solutions.
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Source - https://www.spencerfernando.com/2018/11/15/dias-bias-union-representing-thousands-of-canadian-journalists-
calls-themselves-resistance-against-scheer/
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Unifor / Jerry Dias โข Dias never speaks out against bad policies like high hydro
rates, carbon taxation, excessive regulations, etc.
โข Unifor is defending media which is only a small percentage
of his base https://www.unifor.org/en/unifor-numbers-
across-canada
โข Unifor is not looking out for its members. Unifor almost
cost CAMI their jobs -
https://business.financialpost.com/transportation/autos/g
m-strike
โข Unions have a place but Dias approach is always
confrontation.
โข Harper had a bill that shut down by the liberals that would
have provided oversight -
https://www.thestar.com/news/canada/2012/12/12/prime
_minister_stephen_harpers_government_passes_bill_forci
ng_unions_to_open_their_books.html
โข Unions spend part of the dues on election campaigns -
https://www.cbc.ca/news/canada/toronto/union-backed-
group-fights-ontario-rules-on-election-advertising-
1.4501104
Dias says little on
other sectors which
account for 95% of the
jobs right?
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Automotive Sector
Source - http://www.gbm.scotiabank.com/scpt/gbm/scotiaeconomics63/autoflash.pdf
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Class 8 Truck Production
Key Changes
โข Driverless Trucks - https://singularityhub.com/2018/10/11/no-safety-driver-here-volvos-new-
driverless-truck-cuts-the-cab/
โข Electrical Vehicle - https://electrek.co/2018/05/02/peterbilt-truck-maker-all-electric-class-8-tesla-
semi/
โข Uber and Transportation - https://www.cnbc.com/2019/05/15/convoy-flexport-automating-the-
shipping-industry.html
โข Plug-in station - https://www.plugshare.com/location/15209
โข Technology Changes โ IoT- https://www.logisticsbureau.com/6-key-supply-chain-and-logistics-trends-
to-watch-in-2017/
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Steel
Production
โข Steel production continues to face challenges -
https://www.financialexpress.com/market/commodities/steel-
industry-looking-at-brighter-prospects-in-2018/1035442/
โข Steel producers are concerns with tariffs -
https://www.cbc.ca/news/politics/steel-tariff-zekelman-freeland-
1.4869440?fbclid=IwAR29Hosw-7ZZGSPihTnTdPt4xp1mOblaSfkCx-
CFYi5-axDFHqwbtLw2AXg
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โข Exports / Canola
โข
โข https://www.cbc.ca/news/business/canola-china-export-1.5043182
โข
โข @jimcarr_wpg are you going to act on Canola or not?
https://www.cbc.ca/news/business/canola-china-export-1.5043182
@PierrePoilievre @MichelleRempel
I have never see a govt that sits on their hands when things are imploding!
@emilia_suze
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Canola and China
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Source โ KPMG 15
2019 Manufacturing Outlook
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โข Douglas Gray No it does not! Oil pays their taxes and gets their tax deduction. Clean Tech gets R&D and/other
deductions like Oil and Gas. Clean Tech loses money which means they do not pay corporate taxation as there is no
taxable income. https://www.slideshare.net/paulyoungcga/how-corporate-and-business-taxation-flows-to-government
โข The liberals are handling grant money out to clean tech via SDTC - https://www.sdtc.ca/en/
โข My advice to you is stop taking comments from people that have never done a corporate tax return in their life.
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Blog โ Taxation vs Subsidy
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โข https://www.mhlnews.com/global-supply-chain/75-companies-missing-growth-opportunities-supply-chain?NL=IW-
09&Issue=IW-09_20190715_IW-
09_348&sfvc4enews=42&cl=article_1&utm_rid=CPG03000003273915&utm_campaign=35965&utm_medium=email&el
q2=076b32e2b6b14736b7ae302421a5ea3f&oly_enc_id= - Based on a survey of 1,350 business executives, the report
"From Inventory to Influence: The Mover Becomes the Shaker" reveals that more than three-quarters (78%) of
executives and their companies โ named the โLaggardsโโ are missing opportunities to leverage the power of the
supply chain as a driver of revenue growth.
โข https://www.atkearney.com/operations-performance-transformation/us-reshoring-index
โข I am all for supporting merchandise trade, but trade must be fair. The problem is the WTO needs to be reformed to
ensure emerging markets follow rules.
โข WTO Reforms - https://asia.nikkei.com/Politics/G-20-summit-Osaka/G-20-leaders-agree-to-speed-up-WTO-reforms2. I call the WTO
out numerous times - https://www.slideshare.net/paulyoungcga/world-trade-organisation-wto-and-trade-disputes
โข Tariffs never work as all they do is make items more expensive.
โข China has seen deterioration as many countries pushed back at Chinaโs unfair trade policies -
https://www.bloomberg.com/news/articles/2019-07-12/singapore-s-economy-contracts-sharply-as-manufacturing-slumps
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Blog โ Manufacturing โ July 2019
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S u i t e s
Solutions
โข Canadaโs manufacturing is at a crossroads as such
needs to have a new strategy. The Liberals decision
to impose carbon tax, more regulations (C69), failure
to make critical investments in export related
infrastructure, small business tax changes, etc. have
made Canada less competitive
โข Canada needs an integrated strategy that involves all
level of government, education and private sector as
part re-visiting incubation centers. Government role
is not to pick winners and losers but to support
policies that will allow equal access to every
business.
โข Provinces need a partner in Ottawa that is not about
more tax and excessive regulations (C69)
โข Provinces need to get their policies in check
including hydro rates, taxation and labor reforms