In the latest in a series of international business updates, we focus the current opportunities in Canada and particularly within the automotive sector.
Canada is an excellent destination for automotive sector supply chain businesses to look towards for business growth, by accessing critical auto markets.
Canada is a strategic location in the centre of one of the world’s largest and attractive automotive manufacturing regions. Canada’s automotive manufacturing sector already employs over 120,000 workers and generates revenues of in excess of $85 billion. Regardless of its neighbour’s massive automotive sector market, Canada itself produces over 2.1 million cars a year.
- Canada is part of fully integrated North American market with annual sales of nearly 20 million vehicles and annual production of about 16 million units.
- According to a recent KPMG report, auto parts operations based in Canada typically enjoy an 11.2% labour cost advantage compared to their U.S. based counterparts.
- The report also states that Canada lags only behind Mexico when it comes to how little businesses have to pay for labour, facilities, transportation and taxes.
- Under NAFTA (North American Free Trade) and the proposed CETA (Comprehensive Economic Free Trade Agreement) Canada will enjoy preferential access to some of the largest and most important automotive markets in the world.
- If ratified, CETA will eliminate nearly all import duties (saving European exporters around EUR500 million a year), give access to government contracts and relax restrictions on the movement of people.
Many of the world’s largest automotive component manufacturers and supply chain operators reside in Canada. The relationships, contracts and channels these companies have with well-established car manufacturers provide a strong infrastructure which foreign investors can use to spring board into the sector.
If you are an automotive sector business, or a manufacturing business in another sector and are interested in finding out about more about this exciting opportunity please contact Andy Bewick.
Andy will connect you with Tony Sokic from our fellow AGN member firm Adams & Miles, based in Toronto, who would be delighted to help. Our Canadian AGN member firms have representation in Toronto, Brampton, Ottawa and Vancouver.