Auto Industry
26 June, 2022
Canada’s automotive industry is a dynamic economic player in terms of the revenue it creates. How it is accredited for the rich contribution of over $16 billion to Canadian GDP is immensely plausible. Canada is one of the world’s top 12 vehicle producers of light commercial vehicles. Today, as we retrieve strength to rise from the gloom and doom caused by the pandemic, the auto sector contributes to being one of Canada’s largest manufacturing sectors.
Canada’s far-famed automotive industry is attracting bulk investments that are competitive and efficient. The leading companies investing in the automotive industry find themselves in the driver’s seat. Recently, in May 2022, Stellantis North America's chief operating officer, Mr. Mark Stewart, announced a brand new federal investment of $3.6 billion for its Canadian operations that are bound to secure thousands of jobs and overhaul assembly plants for a clean-tech economy by delivering zero-emission vehicles. It is estimated to come up with 2500 new, good-paying jobs in the province of Ontario alone. This multi-billion-dollar project depicts confidence in Canada’s automotive sector as a world clean-tech leader.
The government of Canada announced an investment of up to $529 million into the Stellantis project. Ontario province, where EV (electric vehicles) manufacturing facilities will be based, is also supporting the project with an investment of up to $ 513 million. It will surely turn heads around by producing a lucrative future for the workers and communities all over Ontario. Doug Ford, Premier of Ontario, said, “Ontario has everything it needs to be North America's auto manufacturing powerhouse once again. We are getting it done and ensuring that the cars of the future are made in Ontario by Ontario workers”. The province is Canada’s most populous state, boasting a population of over 14 million people. will command electric vehicles' faster adoption. With the support of the government, Stellantis- one of the leading automakers in Canada- will conjointly modernize assembly plants and enhance electric vehicle production in Canada.
The automotive industry chiefly comprises assembly plants, maintenance, production, marketing, etc. The manufacturing portion alone is Canada’s largest industrial sector, accounting for 23% of manufacturing trade. It produces passenger vehicles, trucks, auto parts, buses, trailers, and also tires and machines, tools, dies, and molds (MTDM)- Canada is the center of only one of the MTDM clusters in the world. Auto manufacturing produces 135,000 direst jobs in Canada. The majority of them- about 124,000- are located in Ontario. This sizable industry, thus, is taking the job of training a bespoke workforce into its own hands.
By recruiting a panoply of skilled personnel from prestigious colleges, universities, and other institutions, companies are aiming to transition the industry itself. That means that the war for talent hunt is raging across Canada. Businesses ensure a productive workplace by giving employees access to tools and resources needed to complete the jobs, prioritizing safe, calm, and healthy employee wellbeing, and building honest communication platforms. It's no surprise that the work in this industry is playing out even among the most well-performing employees.
With cutting-edge technological advancements in automation, automotive workers feel the brunt of it negatively impacting their health. 39% of employees are subjected to burnout syndrome. They have to either upskill or risk losing their jobs, with so much cutthroat competition around. It’s a known maxim by Dale Carnegie that people work for money but do go the extra mile for praise, recognition, and rewards. Automotive companies should ditch unprecedented ways and opt for employee welfare by caring for their needs and appreciating their efforts. Because they are the key drivers for boosting Canada’s economic health and prosperity while contributing to the nation’s manufacturing GDP. It is worthwhile to say that for each auto assembly job, 7-9 other jobs are created in the economy.
In 2016, Canadians exported vehicles worth $64 billion. The main destinations of exported cars were the United States, China, Germany, and also the United Arab Emirates, showcasing how Canada’s automotive sector is export-oriented.
The auto industry builds momentum for economic growth. There’s been a paradigm shift from the norm that auto manufacturing isn’t a good career fit for women. In January, General Motors Co. proclaimed to reopen its earlier shut-down auto assembly plant in Oshawa, Ontario. It created spin-off jobs for 1800 people, most crucially, it announced to boost the inclusivity of women recruits. A 2020 Deloitte survey, found that 45 percent of women workers in the auto industry were committed to changing their work industry if they were to start their careers today. “But this should not be the case”, says GM Canada President and Managing Director, Scott Bell. He wants to take a step further and include workplace diversity in the hiring process. With more women in production automation roles, there will be a significant change in a male-dominated society.
The Canadian government deserves extolment and recognition for keeping Canada’s automotive industry sturdy in the global arena. Its accountability in the Canadian economy is a well-proven fact of the rich continuous belief in the future of this industry and the incredible jobs it's creating for the next generations. It not only gave people access to remote places to travel but also contributed to changing the lives of Canadians. Automobiles have breezed through other industries by creating new services such as motels, amusement parks, restaurants, and other recreations. It gives people the opportunity to expand their lives.
Canada has become a powerhouse in automotive manufacturing; the automotive industry is the farthest thing from being low-tech. Five global OEMs each year assemble about 1.4 million vehicles at Canadian plants: Stellantis, Ford, Honda, General Motors, and Toyota. Such splendid growth of Canada’s vibrant auto industry is contributing over $20 billion to its booming economy, one way or another, and the numbers are expected to rise in generations to come.
