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Manufacturing Sector – North
America
Paul Young CPA, CGA
September 23, 2018
Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com
Agenda
• PMI Index – Canada vs USA
• USA vs Canada – Automotive
• USA vs Canada – Forestry
• USA vs Canada – Oil Production
• USA vs Canada – Manufacturing (overall) - Employment
• Blog – Jerry Dias – Unifor
Overview
• Manufacturing is a key are for both countries. USA
government policies have focus on cuts to both
taxation and regulations as compare to Canada
government policies which are more focused on
increasing both taxation and regulations.
PMI – Canada vs. USA
Canada PMI
Source - https://tradingeconomics.com
USA PMI
USA vs Canada - Automotive
Issues
• Ontario competitiveness (High hydro rates, hikes to CPP, threat of federal
impose carbon tax, new labour laws, etc.)
• Mexico and the USA have an agreement under NAFTA to raise wages -
https://globalnews.ca/news/4413740/nafta-canada-auto-industry/
• Changes in cost structures will lead to increase to vehicle costs
• Electrical car sales still only account for 2% of the total vehicle sales.
Ontario and other governments are eliminating the tax credits when it
comes to purchasing electrical cars
• Jerry Dias has done little to support the automotive sector. Jerry Dias
approach almost cost jobs at CAMI -
https://www.thestar.com/business/2017/10/13/general-motors-reaches-
tentative-agreement-at-its-ontario-cami-plant.html
USA vs Canada – Oil
Production
This is what happens when you listen too much to radicals
https://www.slideshare.net/paulyoungcga/oil-market-
analysis-and-commentary-july-2018
https://www.cbc.ca/news/politics/c69-regulation-
overhaul-1.4830334
Trudeau and his team are not about development of
resources. Trudeau should just say he is implementing the
leap manifesto of the NDP instead saying he is for oil.
USA is moving to be an exporter of oil -
https://www.reuters.com/article/us-usa-oil-exports/u-s-
crude-exports-in-july-edge-down-from-record-high-data-
idUSKCN1LL2AA
BTW:
The Energy is one of the reason the trade deficit annually
is only $25B
Canada vs USA – Forestry Sector
1. Canada is able to export lumber as it does not take a pipeline -
https://www.bnnbloomberg.ca/economics/video/overall-impact-of-
softwood-lumber-dispute-minimal-for-canada-economist~1108540
2. Lumber industry has been outspoken when it comes to Carbon Tax
- https://business.financialpost.com/commodities/energy/citing-
competitiveness-pressures-feds-ease-carbon-tax-thresholds
3. C69 / More regulations -
https://business.financialpost.com/commodities/energy/think-its-
hard-to-build-big-projects-in-canada-wait-till-you-see-the-liberals-
new-bill
4. Canada has issues with high costs of hydro, stumpage fees, etc. -
https://www150.statcan.gc.ca/n1/pub/16-201-x/2018001/sec-2-
eng.htm
5. Provinces need to get better at forest management practices -
https://www.slideshare.net/paulyoungcga/forestry-
management-practices-around-the-world-june-
2018
Manufacturing (Overall) – USA vs Canada -
Employment
Blog – Unifor / Dias
Hey Dias,
You stand up for nothing. I suggest you go look at
data to see what is happening in those areas
and/or historical stats related to culture, dairy, etc.
1. Cultural industries already have foreign
ownership -
https://www.slideshare.net/paulyoungcga/cult
ure-policies-broadcasting-canada-and-nafta-
september-2018
2. Dairy Industry has been open up under other
trade deals -
https://www.slideshare.net/paulyoungcga/dair
y-canada-analysis-and-commentary - Transition
funds were provided
3. Go look at the stats for lawsuits and disputes
4. Mexico got a deal done, right
Solutions
Trudeau needs to scrap
both the carbon tax and
C69 as both those
aforementioned policies
will lead to less
investment in Canada
Trudeau needs to review
government support to
areas like supply
management
Trudeau needs to expand
innovation funding to all
colleges and university.
The funding should be
based on per capita.
Trudeau needs to expand
capacity of ports. This
could mean selling off
ports to the private
sector and let the private
sector run the ports.
Trudeau and his
government need to
scrapped the small
business tax changes on
passive income as well as
income sprinkling
Hydro policies across
Canada need to be
reformed.

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Canada Manufacturing sector in Crisis

  • 1. Manufacturing Sector – North America Paul Young CPA, CGA September 23, 2018
  • 2. Paul Young - Bio • CPA, CGA • Academia (PF1, FA4 and MS2) • SME – Risk Management • SME – Close, Consolidate and Reporting • SME – Public Policy • SME – Financial Solutions • SME – Supply Chain Management Contact information: Paul_Young_CGA@Hotmail.com
  • 3. Agenda • PMI Index – Canada vs USA • USA vs Canada – Automotive • USA vs Canada – Forestry • USA vs Canada – Oil Production • USA vs Canada – Manufacturing (overall) - Employment • Blog – Jerry Dias – Unifor
  • 4. Overview • Manufacturing is a key are for both countries. USA government policies have focus on cuts to both taxation and regulations as compare to Canada government policies which are more focused on increasing both taxation and regulations.
  • 5. PMI – Canada vs. USA Canada PMI Source - https://tradingeconomics.com USA PMI
  • 6. USA vs Canada - Automotive Issues • Ontario competitiveness (High hydro rates, hikes to CPP, threat of federal impose carbon tax, new labour laws, etc.) • Mexico and the USA have an agreement under NAFTA to raise wages - https://globalnews.ca/news/4413740/nafta-canada-auto-industry/ • Changes in cost structures will lead to increase to vehicle costs • Electrical car sales still only account for 2% of the total vehicle sales. Ontario and other governments are eliminating the tax credits when it comes to purchasing electrical cars • Jerry Dias has done little to support the automotive sector. Jerry Dias approach almost cost jobs at CAMI - https://www.thestar.com/business/2017/10/13/general-motors-reaches- tentative-agreement-at-its-ontario-cami-plant.html
  • 7. USA vs Canada – Oil Production This is what happens when you listen too much to radicals https://www.slideshare.net/paulyoungcga/oil-market- analysis-and-commentary-july-2018 https://www.cbc.ca/news/politics/c69-regulation- overhaul-1.4830334 Trudeau and his team are not about development of resources. Trudeau should just say he is implementing the leap manifesto of the NDP instead saying he is for oil. USA is moving to be an exporter of oil - https://www.reuters.com/article/us-usa-oil-exports/u-s- crude-exports-in-july-edge-down-from-record-high-data- idUSKCN1LL2AA BTW: The Energy is one of the reason the trade deficit annually is only $25B
  • 8. Canada vs USA – Forestry Sector 1. Canada is able to export lumber as it does not take a pipeline - https://www.bnnbloomberg.ca/economics/video/overall-impact-of- softwood-lumber-dispute-minimal-for-canada-economist~1108540 2. Lumber industry has been outspoken when it comes to Carbon Tax - https://business.financialpost.com/commodities/energy/citing- competitiveness-pressures-feds-ease-carbon-tax-thresholds 3. C69 / More regulations - https://business.financialpost.com/commodities/energy/think-its- hard-to-build-big-projects-in-canada-wait-till-you-see-the-liberals- new-bill 4. Canada has issues with high costs of hydro, stumpage fees, etc. - https://www150.statcan.gc.ca/n1/pub/16-201-x/2018001/sec-2- eng.htm 5. Provinces need to get better at forest management practices - https://www.slideshare.net/paulyoungcga/forestry- management-practices-around-the-world-june- 2018
  • 9. Manufacturing (Overall) – USA vs Canada - Employment
  • 10. Blog – Unifor / Dias Hey Dias, You stand up for nothing. I suggest you go look at data to see what is happening in those areas and/or historical stats related to culture, dairy, etc. 1. Cultural industries already have foreign ownership - https://www.slideshare.net/paulyoungcga/cult ure-policies-broadcasting-canada-and-nafta- september-2018 2. Dairy Industry has been open up under other trade deals - https://www.slideshare.net/paulyoungcga/dair y-canada-analysis-and-commentary - Transition funds were provided 3. Go look at the stats for lawsuits and disputes 4. Mexico got a deal done, right
  • 11. Solutions Trudeau needs to scrap both the carbon tax and C69 as both those aforementioned policies will lead to less investment in Canada Trudeau needs to review government support to areas like supply management Trudeau needs to expand innovation funding to all colleges and university. The funding should be based on per capita. Trudeau needs to expand capacity of ports. This could mean selling off ports to the private sector and let the private sector run the ports. Trudeau and his government need to scrapped the small business tax changes on passive income as well as income sprinkling Hydro policies across Canada need to be reformed.