Here is look at the state of manufacturing for October 2018 and November 2018 (Canada and United States)

1. Manufacturing Sector in
Crisis? – Canada and
USA
Paul Young CPA, CGA
December 18, 2018.

2. Contoso
S u i t e s
Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public Finance
and Advanced Management Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. Contoso
S u i t e s
Agenda
• PMI Index – USA and Canada
• MFG Employment – USA and Canada
• EPIC failures with Manufacturing
• Manufacturing by key Sector
• Manufacturing by Province
• Competitiveness
• Automotive
• Class 8 Truck
• Steel Production
• Unifor
• Solutions

4. Contoso
S u i t e s
Source - https://tradingeconomics.com/united-states/business-confidence or
https://tradingeconomics.com/canada/manufacturing-pmi
4
PMI Index
USA PMI Index
Canada PMI Index

5. Contoso
S u i t e s
Source - https://data.bls.gov/timeseries/CES3000000001 or Stats Canada
5
Employment – Manufacturing – USA vs Canada

6. Contoso
S u i t e s
Source - https://qz.com/1269172/the-epic-mistake-about-manufacturing-thats-cost-americans-millions-of-jobs/ 6
Epic mistake by Manufacturing
• Unions fought automation as it meant less
union jobs
• Robotics have played key role with
manufacturing
• 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
• AI continues to help streamline manufacturing
processes - https://supplychainbeyond.com/7-
ways-ai-and-automation-are-driving-the-future-
of-manufacturing/

7. Contoso
S u i t e s
Manufacturing Sales by Sector
Source – Stats Canada
7

8. Contoso
S u i t e s
Manufacturing
Sales by
Province
Source – Stats Canada
8

9. Contoso
S u i t e s
Source - http://cme-mec.ca/wp-content/uploads/2018/11/Doc_Industrie-2030_Manufacturing-a-Competitive-Business-
Environment-in-Canada.pdf
9
Competitiveness
I have been saying the following for since
Liberals took office in 2015
• Low taxes free up money to reinvest in
new capital and advanced technologies
• A strategic taxation policy can reward
companies for growing
• 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 Canada’s ability to compete in
foreign markets
Note:
Many thanks to Deloitte for providing a
similar view to mine in terms of solutions.

10. Contoso
S u i t e s
Source - https://www.spencerfernando.com/2018/11/15/dias-bias-union-representing-thousands-of-canadian-journalists-
calls-themselves-resistance-against-scheer/
10
Unifor / Jerry Dias • Dias never speaks out against bad policies like high hydro
rates, carbon taxation, excessive regulations, etc.
• Unifor is defending media which is only a small percentage
of his base https://www.unifor.org/en/unifor-numbers-
across-canada
• Unifor is not looking out for its members. Unifor almost
cost CAMI their jobs -
https://business.financialpost.com/transportation/autos/g
m-strike
• Unions have a place but Dias approach is always
confrontation.
• 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
• 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?

11. Contoso
S u i t e s
11
Automotive Production
• Mexico now produces 24% of the NA automotive production
• Automation is replacing need for workers - https://www.businesswire.com/news/home/20180429005087/en/Industrial-Robots-Market-Automotive-
Industry---Rising
• Many automotive manufacturers have adopted flexible manufacturing - https://www.plantengineering.com/articles/gm-to-create-a-flexible-
manufacturing-cell-at-lansing-plant/

12. Contoso
S u i t e s
12
Class 8 Truck Production
Key Changes
• Driverless Trucks - https://singularityhub.com/2018/10/11/no-safety-driver-here-volvos-new-
driverless-truck-cuts-the-cab/
• Electrical Vehicle - https://electrek.co/2018/05/02/peterbilt-truck-maker-all-electric-class-8-tesla-
semi/
• Plug-in station - https://www.plugshare.com/location/15209
• Technology Changes – IoT- https://www.logisticsbureau.com/6-key-supply-chain-and-logistics-trends-
to-watch-in-2017/

13. Contoso
S u i t e s
13
Steel Production
• Steel production continues to face challenges - https://www.financialexpress.com/market/commodities/steel-
industry-looking-at-brighter-prospects-in-2018/1035442/

14. Contoso
S u i t e s
Source – KPMG 14
2019 Manufacturing Outlook

15. Contoso
S u i t e s
Solutions
• Canada’s 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
• 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.
• Provinces need to get their policies in check
including hydro rates, taxation and labor reforms