Although since 2000, a decrease of 9 percent auto parts. However, in Canada, about 540 suppliers, the employment rate has remained relatively stable at 97000 - with a sharp contrast, in 2000,
Eccentric Shaft the number of automobile assembly of more than 12 per cent, down by up to 57,000 workers.
ball screw company
The desire to survive under these challenging conditions is the impetus behind the “re-tooling” of the Canadian auto parts industry.
piston pin set
Joanne Tognarelli, EDC Transportation Sector Advisor describes the range of market pressures forcing the sector to adapt.
“The rapid rise in the Canadian dollar to near parity with the American dollar, coupled with corresponding higher energy and raw material prices have greatly increased costs. Fuel prices and environmental issues have moved the consumer market to smaller, more
fuel-efficient cars, a segment mostly dominated by foreign car makers. As well, cross-border congestion exacerbated by security concerns has hindered the vaunted ‘just in time’ delivery process.”
The integrated nature of the North American auto industry means effects are felt everywhere. “All the stresses besetting General Motors, Ford and Chrysler are passed on to the Tier 1 parts suppliers which in turn get passed down the supply chain to the Tier 2
and Tier 3 manufacturers,” notes Chris Despond, EDC’s Account Manager for several automotive parts makers. However, both he and Tognarelli point out that the Canadian parts sector has demonstrated resiliency in dealing with industry restructuring.
“Canadian auto parts suppliers have been a key contributor to Canada’s historic advantage in auto production,” observes Tognarelli. “They are industrious and efficient manufacturers, which have, up to recently, been able to supply higher quality products at a lower cost despite the erosion to their cost advantage by the soaring Canadian dollar.” Underscoring this point is the more than 40 per cent increase in Canadian parts exports to Mexico since 2000 where North American vehicle assembly has been growing rapidly.
Despond adds, “The smart auto parts companies have repositioned themselves to compete in a global market. Joint ventures have enabled them to share costs with producers and establish closer working relationships with customers. This includes taking on more of a role in technology development and consulting with the major players much earlier in the model development process. Others have looked beyond automotive assembly to sectors such as aerospace, oil and gas and construction where the market for precision parts and equipment is robust.”
"The most important thing is," Tognarelli said, "Canada's parts suppliers have adjusted to the global market, expanding its coverage to cover the manufacturers all over the world, which does not belong to major vehicle manufacturers in North America, but in Africa China has established a number of facilities to China and India has also been given an ambitious ambitions. "
