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Manufacturing Matters

Manufacturing Matters. May 7 th 2007 St. Catharines City Council: . 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….

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Manufacturing Matters

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  1. Manufacturing Matters May 7th 2007 St. Catharines City Council:

  2. 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…

  3. Ontario lost 171,600 (15%) manufacturing jobs: Niagara area has lost 15% of its manufacturing jobs St. Catharines has suffered as much as anyone.

  4. 2007, Announced Six Plant Closures

  5. 2006, Three Niagara Plant Closures

  6. 2005, Six Niagara Plant Closures

  7. 2004, Two Niagara Closures

  8. 2003, Seven Niagara Plant Closures

  9. 2002, Six Niagara Plant Closures

  10. 2001, Six Closures

  11. 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! 2,800 0 200

  12. 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

  13. 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.

  14. Other Regions: Other Cities Toronto lost 104,600 jobs St Catharines lost 2, 855

  15. The problem is widespread. Across manufacturing industries...

  16. Manufacturing is on The Critical List 2002 Start of recent decline 16.7% of CDN Workforce Loss of 4.2% 12.5% of CDN Workforce

  17. Trends bounce back… Manufacturing is in a Free Fall

  18. Unbalanced Trade is a major problem • Large and growing manufacturing trade deficit • From a surplus of $12 billion to a deficit of $29billionin 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

  19. 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

  20. 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 million dollars in lost wages every year.

  21. 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

  22. 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

  23. 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.

  24. 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

  25. 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

  26. Support For Our Communities • Canada’s manufacturing workers: • Direct payroll of $94 billion per year • Generate income taxes of $20 billion per year • 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.

  27. Niagara Information Meeting Rick Alakas Wayne Gates David Robertson Tim Lambert

  28. 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 …

  29. Draft Resolution... • Identifying the manufacturing industry as a strategic sector in Canada’s economic development;

  30. Draft Resolution... • Undertaking a comprehensive review of the causes and consequences of manufacturing job loss;

  31. 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

  32. 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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