CHAPTER 3:
CHALLENGES FACING SELECTED INDUSTRIES WITHIN THE MANUFACTURING SECTOR

Aerospace Industry

The Canadian aerospace industry consists of more than 500 companies with annual revenues of $21.7 billion in 2004, placing Canada in 4th position behind aerospace industries in the United States, United Kingdom and France. This Canadian industry is extraordinarily dependent on foreign buyers of its products, as 84% of its revenues were garnered from export sales and 75% of all exports were to the United States.

The global aerospace industry does not operate in a laissez-faire marketplace. Government intervention in the sector is rationalized primarily on national security grounds and secondarily on grounds of industry characteristics such as its high degree of R&D and its attendant high risks and long payback periods. Governments around the world use various policy instruments to support aerospace industries operating within their jurisdictions, including funding defence programs and purchases, financing research and development infrastructure, and providing loan guarantees and bank financing for aircraft development and production. In Canada, major federal programs and initiatives used by the aerospace industry include: (1) Scientific Research and Experimental Development (SR&ED) Tax Incentive Program; (2) Technology Partnerships Canada; (3) Defence Research and Development Canada; and (4) the National Research Council's Institute for Aerospace Research, Aerospace Manufacturing Technology Centre and Industrial Research Assistance Program (IRAP).

Given that the aerospace industry's long-term survival and prosperity depend on innovation and one of the basic building blocks of that activity is R&D, which in the last decade represented between 6% and 15% of industry sales, the industry believes that it is crucial that the Government of Canada redevelop and replace the Technology Partnerships Canada program as a means of levelling the playing field with its foreign rivals. Any improvements to the SR&ED tax measure as an incentive to encourage R&D, particularly for SMEs, would also be welcomed by the industry.

Apparel Industry

Mass production of apparel in Canada began in the mid-19th century in many urban centres, which supplied much-needed semi-skilled labour but were also the major consumer markets. For most of that time, domestic production closely matched domestic demand in terms of quantities, qualities and style requirements. The second half of the 20th century (by contrast) was marked by a substantial increase in world trade in apparel, mostly originating from low wage, developing countries and destined for high wage, developed countries. Two attempts to address the imbalances and inequities caused by this growing trade were made, which resulted in two multilateral international agreements: the Multi-Fibre Arrangement (MFA), which permitted developed countries to impose quotas on imports of apparel and textiles from developing countries, and the Agreement on Textiles and Clothing (ATC), whereby the MFA quotas were to be gradually phased out over a 10-year period. These two agreements marked 1975, 1995 and 2005 as milestones for three distinct and increasingly freer trade regimes.
The Canada-U.S. Free Trade Agreement (FTA) also played a
role — a positive one — as exports to the United States soared and now account for 40% of Canadian apparel shipments valued at $5.6 billion in 2005.

In and of itself, the ATC posed significant competitiveness challenges to the Canadian apparel industry, particularly from the export of cheap Chinese, Indian and Bangladeshi clothing. Canadian apparel companies were adjusting to the new trade environment by shifting and focusing their production on selected North American niche markets, whereby geographical proximity to these markets would provide a competitive advantage, such as in the case of their "fast fashion" segments. However, the 43.7% appreciation of the Canadian dollar against the U.S. dollar in only the past four years has hobbled the implementation of such strategies given that U.S. apparel companies are reacting similarly. Much greater contraction and consolidation of the Canadian apparel industry, along with more lay-offs, are expected should current trends continue. To mitigate such a scenario, the industry believes that government action is needed on tariff policy and procurement, as well as continuing general support for the industry.

Automotive Industry

Canada has attracted a number of foreign automobile manufacturers (i.e., DaimlerChrysler, Ford, General Motors, Honda, Suzuki, and Toyota) to locate their production facilities mostly in southern Ontario, producing for the North American market, while at the same time importing a substantial amount of vehicles to match its varied automotive needs. Associated with these automotive assemblers are a large number of independent parts and components manufacturers located across the country. Based on relatively lower wage rates, on average, than those in the United States, government-provided benefits (e.g., health care), and federal and Ontario government financial support of $434 million and $513.8 million, respectively, in the last two years alone, capital expenditures in Canada's automotive assembly plants have been brisk, averaging more than $3 billion per year over the past 12 years. As a result of these investments, Canada's automotive assembly plants are estimated to be, on average, 4.6% more productive than those of the United States and 38.9% more productive than those of Mexico. In turn, Canadian production accounted for about 17% of North American production and Canada-U.S. automotive trade amounted to $143.8 billion in 2005. Canadian consumption accounted for approximately 8% of total North American consumption, resulting in a Canadian trade surplus of $23.5 billion in 2005.

With many countries also subsidizing investment in their automotive sectors, leading to a world and North American automotive assembly plant overcapacities estimated at 11.5 and 2.5 million units, respectively, and a 43.7% appreciation of the Canadian dollar against the U.S. dollar in just the past four years, Canada's labour cost advantage is rapidly shrinking. The appreciation of the Canadian dollar has been particularly hard on the automotive assembly supply-chain, and the availability of both general skilled and technical skilled workers is also a growing concern. These factors are threatening industry profitability, labour wage increases and Canada's trade surplus. They have also played some role in plant closures and production capacity restructurings over the past several years, as well as planned expansions in the next two years. For example, three light duty vehicle assembly plants (i.e., General Motors of Canada, Ste. Thérèse, Quebec, jobs = 1,092; DaimlerChrysler, Windsor, Ontario, jobs = 1,128; and Ford Motor Company, Oakville, Ontario, jobs = 1,388) and one medium/heavy duty plant (Mercedes (Western Star Truck), Kelowna, B.C., jobs = 675) have closed between 2001 and 2005, while no new plants have opened. These plant closures decreased Canada's vehicle production capacity by 553,000 units, but capacity expansions totalling 195,000 units elsewhere at existing facilities meant that Canadian production capacity declined only by 358,000 units in the past five years. Honda, Toyota and General Motors have also announced new plant openings and expansions over the next two years. Honda will invest $154 million in a new engine plant to begin production in 2007. General Motors will invest an additional $750 million for the production of the new Camaro beginning in 2008. Finally, Toyota is investing $1.5 billion in a new RAV4 assembly plant located in Woodstock, Ontario, which will begin production in 2008.

The industry suggests that it may be threatened further by a Canada-South Korea free trade agreement if market access and measures such as South Korea's non-tariff barriers are not addressed. The industry also believes that a lower marginal effective tax rate on capital, one that is competitive with that of the United States, would provide a favourable investment climate.

Basic Chemicals and Resins Industries

The basic chemicals and resins industries form part of the chemical manufacturing subsector. In 2005, the industries' shipments totaled approximately $23 billion, a 5% increase over 2004 shipments. Shipments are expected to rise by 12% in 2006 to $25.7 billion. In 2005, exports totalled $17.4 billion (a 17% increase over 2004 levels), of which $13.4 billion (77%) was exported to the United States The industries employed 21,889 people in 2005, a 1% increase over 2004 levels, but 4.6% lower than in 2003.[17]

The industries have experienced considerable cost pressures from high raw material and energy prices, and from the relatively high value of the Canadian dollar. Chemical producers are also concerned about the impact on their operations of environmental regulations that may be introduced by the federal government. With respect to energy, the cost, availability and reliability of electricity remain as concerns for competitiveness and plant safety, particularly in Ontario. Other challenges cited by the producers include rail transportation concerns in Western Canada, the regulatory environment, and labour shortages in Alberta.

Despite these challenges, increased demand for chemicals kept plants running at, or near, capacity in 2005. As a result of chemical price increases, operating profits have been relatively high since 2004. This performance also reflects gains in productivity achieved by the industries in recent years; productivity levels for Canadian chemical producers exceed those of their U.S. competitors.

Computer and Electronic Product Industries

Companies manufacturing computers, computer peripheral equipment, communications equipment, and similar electronic products, as well as components for such products make up this subsector. These industries employ production processes that are characterized by the design and use of integrated circuits and the application of highly specialized miniaturization technologies. In 2005, most of the subsector's 3,681 establishments were located in Ontario (47.7%) and Quebec (22.5%). Shipments by the subsector totalled $18.6 billion in 2005, down from $27.04 billion in 2001, just prior to the ICT bust.[18]

Members of the subsector note challenges to competitiveness that include difficulties in attracting skilled labour, the relatively high value of the Canadian dollar, and delays in getting product across the border into the United States. In an attempt to deal with some of these challenges and other difficulties stemming from the dot-com bust, some companies have responded by eliminating as much waste as possible (e.g., overproduction, waiting time, transportation, processing, inventory, motion and scrap) and detecting process defects through a blend of Lean and Sigma Six methodologies known as "Lean Six."

Electrical Equipment, Appliance and Component Industries

This subsector is composed of manufacturers of electric lighting equipment, household appliances, electrical equipment and other electrical equipment and component manufacturers. Most of the 1,964 establishments in the subsector in 2005 were located in Ontario (47.3%) and Quebec (25.6%). Shipments by the subsector stood at $9.6 billion in 2005, down from $11.6 billion in 2001.[19]

These industries cite challenges to competitiveness from the high value of the Canadian dollar, increasing energy and commodity prices, and from emerging markets in Asia and Latin America. The industries note that the Chinese government has imposed export duties of between 20% and 40% on metals, and export tax credits of between 13% and 17% on finished goods. According to the industries, both the tax credits and export duties have left Canadian and U.S. manufacturers with no access to China's material cost structure and tax shelter without relocating manufacturing to China. Members of the large appliance industry note that importers have an 11.4% cost advantage with respect to taxes since imported appliances are subject only to the GST, whereas domestic manufacturers must pay a variety of income, property and other taxes, in addition to the GST. These manufacturers suggest that a radical restructuring of how taxes are collected is required to address this issue. They propose a reduction in corporate, property and payroll taxes and an increase in consumption taxes, in order to place more of the tax burden on imported products.

Energy Industries

In 2005, Canada's energy industries contributed $64 billion to the GDP (1997$), $87 billion of nominal exports, and $34 billion of nominal imports. The industries employ 180,000 people, and have an estimated total employment impact of over 500,000.[20]

Industrial energy use is the biggest single component of energy demand in Canada (39% of total demand). Of that demand, 30% is from energy industries themselves (mostly the upstream oil and gas industry), and 27% from the forestry and pulp and paper sectors. The average annual growth in energy demand from industry grew by 1.4% between 1990 and 2003. Gains in energy efficiency and structural changes in the economy (the relative increase in the activity of less energy intensive industries) have partially offset increased demand for energy. The key energy sources for industry are natural gas (30%); electricity (26%); refinery fuel oils, coke and still gas (23%); wood waste and pulping liquor (14%); and coal, coke oven gas, liquid petroleum gas and gas-plant natural gas liquids, steam and waste fuels (8%). In terms of the main input sectors to industry (natural gas, electricity and petroleum products), oil is the most deregulated, the most competitive, and the most world-scale in terms of the market. Natural gas is a continental market that is largely deregulated. Electricity is the least deregulated and the most regional in its basic structure.

The Energy Dialogue Group notes the following challenges facing Canada's energy system: (1) the need for new supply and delivery capability; (2) the need to adapt to higher prices; and (3) the need to find sustainable solutions to environmental challenges. In terms of other challenges, many energy industries complain of the complicated, multi-jurisdictional regulatory processes governing approvals for new investments in energy infrastructure. They suggest that the adoption of a national energy framework that recognizes jurisdictional authorities, but that emphasizes the value of working cooperatively across governments, would help in dealing with issues (e.g., regulations) that transcend jurisdictional boundaries.

Food and Consumer Products Industries

Food manufacturing is Canada's second largest manufacturing subsector with shipments totalling $65.8 billion in 2005 (second to transportation equipment whose shipments totalled $123.1 billion). Shipments for the food manufacturing subsector in 2005 were 3.6% lower than in 2004 ($68.2 billion), and were at their lowest level since 2002.[21] In 2005, Canadian companies exported $17.9 billion worth of processed food products. Canada's food exports account for approximately 29% of total production, up from 18% 10 years ago. In fact, Canada moved from being a net importer of manufactured food products to a net exporter over this period.[22] In 2005, the food manufacturing subsector employed 243,950 people, down 2.8% from the 250,762 employed in the subsector in 2004, and the lowest number of employees since 2000.

Meat processing has consistently been Canada's biggest processed food industry; in 2003, shipments of processed meat totalled $18.6 billion, which was 2.2% lower than the high of $19 billion recorded in 2001. Dairy processing is the second largest food manufacturing industry in Canada, with record sales of $10.4 billion in 2003, followed by grain and oilseed milling and fruit and vegetable preserving. Other processed food products include fish and seafood, poultry, and bakery and tortilla products.

Because food manufacturing is export-oriented, the industry faces challenges from the high value of the Canadian dollar. Additional challenges include falling prices resulting from high inventories, increased import competition and weak domestic demand growth.[23] According to the industry,[24] the most significant barrier to innovation and growth it faces is Canada's "outdated and poorly functioning regulatory system." It suggests that minimizing regulatory differences between trading partners and eliminating costly delays are critical to ensuring that an economically viable manufacturing sector remains in Canada. With respect to industry-specific issues concerning regulations, the industry notes challenges related to the absence of a policy regarding food fortification; the long approval process for novel foods and food additives; and the lack of a regulatory approval framework for health claims.

Forest Products Industry

Canada's forest industry sold some 250 products, valued at $84 billion in 2005, to more than 175 countries, generating $32 billion in trade surplus. Canada ranked first in the world in terms of newsprint production and second in the world in terms of both wood pulp production and softwood lumber production.

As the forestry sector is simultaneously highly energy-intensive, capital-intensive and export-oriented, the rapidly rising prices of energy and the Canadian dollar present the sector with its greatest competitiveness challenges. Somewhat linked to these challenges is the sector's fragmented industrial structure. Canada's two largest forestry companies, Abitibi-Consolidated and Domtar Canada, rank just 21st and 23rd among the largest forest companies of the world. Significant economies of scale exploited through further industry consolidation could bode capital cost savings and would help towards levelling the competitiveness playing field with its much larger foreign rivals. The industry believes that the Government of Canada can play a significant role in improving the investment climate for the industry, most notably by taking various measures that would lower the marginal effective tax rate on capital. The industry also believes that a more accommodating application of the Competition Act would be part of its competitiveness solution and that a Canada-South Korea free trade agreement would provide incremental benefits.

Plastics Industry

Rapid growth in the Canadian plastics industry followed the dramatic increase in the domestic capacity for producing synthetic resins beginning in the late 1970s which was, in turn, a response to the OPEC oil embargo and energy crisis. During that period, U.S. tariffs on imported resins were typically 10 to 12%, whereas they were 3% to 5% for plastic products. This tariff differential spawned vertically integrated production of resin and plastics in Western Canada. Today, Canada boasts more than 2,000 plastics companies, mostly Canadian-owned small and medium-size enterprises (SMEs), whose shipments were more than $20 billion in 2005, of which 50% was exported (and of which 93% was destined for the United States).

The industry faces a number of competitiveness challenges that include: (1) the small size of many of its Canadian companies; (2) the need to match high R&D rates of their U.S. competitors; (3) a more secure supply of its Canadian natural gas feedstock; and (4) increasing natural gas prices. As resin costs typically account for 30% to 50% of the final value of a plastics product and one dollar of natural gas at the wellhead can be turned into a $15 plastic product — hence, a value-added multiplier of 15 — the development of a federal energy framework that would ensure adequate feedstock for manufacturing (rather than exporting so much natural gas in its raw state) and the stabilization of energy prices is seen by the industry as a way to boost its competitiveness. The industry has also indicated that acceleration of the capital cost allowance to no greater than two years, and a simplification of Canada's R&D tax credit regime are top priorities to assist it in meeting its innovation challenge.

Railway Equipment Industry

Railroad rolling stock manufacturing is part of the transportation equipment manufacturing subsector (Canada's largest manufacturing subsector). Railroad rolling stock companies design and manufacture the following equipment: ballast distributors (railway track equipment); self-propelled railroad cars; diesel-electric locomotives; railway track equipment (e.g., rail layers, ballast distributors); mining locomotives and parts; railway rapid transit cars; rail laying and tamping equipment; subway cars; and trolley buses.

The rail equipment manufacturing sector is highly specialized and export-oriented, with more than 70% of urban transit and locomotive shipments destined for foreign countries, principally the United States. Virtually all Canadian urban transit and rail systems and vehicles are supplied by domestic sources, while major systems and components such as engines, computers and other equipment are usually imported from U.S. suppliers. Manufacturing shipments for this industry group increased from $1.9 billion in 1994 to $2.0 billion in 2003, an average compound annual rate of 0.6% per year. Between 2002 and 2003, manufacturing shipments decreased by 42.0%. The railway suppliers employ approximately 60,000 people in Canada.

The industry cites challenges related to competitiveness with U.S. suppliers. It notes that the federal capital cost allowance rate for the depreciation of railway rolling stock and track infrastructure is 15% and 10%, respectively. With these rates, it takes Canadian railways more than 20 years using the declining balance method to fully depreciate their rolling stock assets. In contrast, U.S. tax rules allow railway companies to fully depreciate their rolling stock assets in seven years. The industry believes that the disparity is hindering Canadian railways' capital spending for modernization and growth when compared to U.S. railways. It also argues that the rates will adversely affect the industry's ability to meet government objectives related to climate change and air quality.

Shipbuilding Industry

Canada's shipbuilding industry[25] is comprised of 203 establishments, including about 30 shipyards that are located principally in each Atlantic province, Quebec, Ontario and British Columbia. The shipyards are fixed facilities with drydocks and fabrication equipment capable of building watercraft suitable or intended for other than personal or recreational use. Canada's shipbuilding tradition dates back to pre-Confederation, but in recent years, the industry has suffered through declining demand, which has led to declining production. In 2003 (the latest year for which there are data), industry shipments were $535.5 million (down from $969.5 million in 1994, an average annual rate of decline of 6.4%), with exports accounting for $83 million of these shipments. Canada has a persistent trade deficit in shipbuilding, which in 2005 amounted to $304.5 million. Employment was also down over the same period from 7,361 persons in 1994 to 3,797 employees in 2003, an average annual rate of decline of 7.1%.

Canadian shipbuilders have a limited domestic market that cannot, in itself, sustain the current industry. Unlike the United States, government procurement of naval and other vessels does not provide a consistent base level of demand in Canada. The domestic commercial market is relatively stable, and industry growth is therefore dependent on capturing a share of the international market. However, Canadian shipyards are finding it extremely hard to compete internationally because of government subsidization by other shipbuilding nations (e.g., Norway and South Korea). Additional external factors that adversely affect competitiveness include low foreign labour rates, less stringent environmental regulations, and improved manufacturing practices in several countries — challenges that have been magnified by the recent appreciation in the value of the Canadian dollar.

In terms of other challenges, on the immediate horizon is Canada's pursuit of two free trade agreements: one with the European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway and Switzerland; and the other with South Korea. Norway is a formidable competitor (based, in part, on subsidies) and South Korea (based, in part, on low labour wages and subsidies), if it shifts its expertise and capabilities from large to smaller vessels, could also become a direct competitor. Eliminating the current 25% tariff on ship imports into Canada for these two countries without addressing the issue of subsidies would put Canadian shipbuilders at a competitive disadvantage in their home market.

Steel Industry

Canada has 10 steel producers operating in five provinces (Alberta, Saskatchewan, Manitoba, Ontario and Quebec). Of the 15 plants in Canada, 4 are integrated mills and 11 are mini-mills. Algoma Steel Inc., Dofasco Inc. and Stelco Inc. are the largest operations, producing close to 60% of Canada's total steel output; they operate large integrated facilities equipped with blast furnaces and rolling mills. The smaller producers use electric arc furnaces, and produce carbon steel plate, sheet, bar and rod products as well as specialty steels and stainless steel products. Across the country, 20 other production facilities fabricate pipes and tubes, wire and wire products. Canada's steel industry is concentrated in Ontario, where most of its customers are located. In particular, all but one of Canada's auto assembly plants are located in southern Ontario, as are all of the stamping plants, most of the appliance makers, and a significant portion of the steel fabrication and construction market. Steelmakers in other markets tend to serve regional or special markets, such as the oil and gas industry in Western Canada.

In 2005, steel production in Canada was estimated at 15.6 million tonnes. Canadian steel shipments totalled $13.5 billion in 2005, with $5.5 billion in exports. The industry directly employs more than 35,000 people, including contractors, part-time employees and students.[26]

The industry cites a number of challenges to its competitiveness including strong global competitors and a rapid expansion in capacity; escalating input prices; a declining domestic and NAFTA manufacturing base; industry consolidation (competition for investments in Canada versus other jurisdictions); and the increasing need for innovation. It is particularly concerned about market distortions resulting from alleged subsidies and dumping by certain steel-producing nations, including China.

Textiles Industry

The textiles industry is one of Canada's oldest manufacturing industries. Established more than 150 years ago in small, urban communities that offered a stable labour supply and rivers ideally suited for water-generated power and dyeing/finishing, the industry started with the manufacture of yarns and fabrics from natural fibres. Today, the industry is structured very differently. Canada's textiles manufacturing industry has transformed itself, particularly in the past 25 to 30 years, through substantial and sustained capital investment and the result is a modern industry that is increasingly capital-intensive, a major user of high technology, and a provider of jobs for thousands of Canadians. In 2005, the industry is located mostly in Quebec and Ontario and uses natural, artificial and man-made fibres and filaments to produce and ship $6.2 billion worth of textiles and textile products, of which $3.0 billion or about 48% were exported.

The Canadian market for textiles appears to have peaked at a level just shy of $11 billion in 2000, declining more than 20% in the past five years. This slump in demand is more protracted than a simple downturn in the economy — trade factors are at play. Indeed, the ATC and the rapid appreciation of the Canadian dollar have together sharpened the industry's competitiveness challenge. The industry is prepared to meet this challenge but is seeking complementary industrial and trade policies from the federal government in the areas of an export processing strategy and on the rules of origin governing duty-free entry of imported apparel from least developed countries (LDCs).

Tool, Die and Mould Making Industries

The Canadian tool, die and mould making industries are comprised of two groups: industrial mould manufacturers and other metalworking machinery manufacturers.[27] The industries include more than 800 companies — mostly small, Canadian owner-manager operations — located across the country that employ more than 29,000 people. These industries shipped $4.3 billion of product in 2003 (the latest year for which there are data). In terms of mould makers, in 2003, there were 637 establishments in Canada, with at least 1 establishment located in every province but none in the three territories, that employed 10,692 people, up from 9,360 in 1994. Mould shipments were $1.47 billion in 2004, growing on average by 5.7% per annum in the previous decade.

The industries are built on traditional precision metalworking skills but make use of many modern and advanced technologies, including computer aided design/computer aided manufacturing (CAD/CAM) technologies. Typically, tool, die and mould makers employ less than 100 people but they tend to be larger than their U.S. counterparts, thereby benefiting from efficiencies gained in labour specialization (employees in U.S. operations often have multiple roles).[28] Canada's eight largest mould makers rank among the top 20 mould makers in North America. They are heavily concentrated in southern Ontario. While the Canadian industries serve a wide array of industrial sectors, regional specialization in particular products and markets is evident: (1) southwestern Ontario companies focus on automotive and building products; (2) Toronto companies specialize in automotive, aerospace, appliance, packaging, consumer products and building products; (3) Montreal companies focus on recreational vehicles, aerospace and building products; (4) Winnipeg companies focus on aerospace products; and (5) Edmonton and Calgary companies focus on petroleum products.

The challenges facing Canada's tool, die and mould manufacturers are principally: the rapid rise of the Canadian dollar; the increasing costs of financial and technological risks associated with supplying automotive manufacturers; and intense competition from low-wage offshore sources, most notably China. Tool, die and mould manufacturers that supply automotive manufacturers are being asked to carry a greater share of the financial and technological risks, as new tooling can take a year or more to develop while payment terms (i.e., production part approval process or PAPP) are being stretched to 18 months (whereas, traditionally, banks provide SMEs with 60-90 days of financing for accounts receivable and very limited support for work-in-process). Finally, the automotive manufacturers are increasingly setting up operations (i.e., off-shoring) in China — sometimes lured there by government financial incentives — and parts from those operations are increasingly being exported to the United States and Canada for assembly or integration with standardized parts into customized modules for final assembly.

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[17] Information and statistics from Canada's Chemical Producers, http://www.ccpa.ca/files/Library/Documents/Economic/Yrend2005_report_final.pdf.

[18] Data from Statistics Canada.

[19] Data from Statistics Canada.

[20] Statistics supplied by the Energy Dialogue Group and Natural Resources Canada.

[21] Data from Statistics Canada.

[22] Michael Burt, Canada's Food Industry: Industrial Outlook, Winter 2006, Conference Board of Canada.

[23] Ibid.

[24] Submission by Food & Consumer Products of Canada to the House of Commons Standing Committee on Industry, Science and Technology, 17 October 2006.

[25] Statistics Canada defines the shipbuilding and repairing industry as establishments engaged in the construction, repair, conversion or alteration of all ship types of more than five tons displacement; anything less is deemed to be engaged in boatbuilding.

[26] Data supplied by the Canadian Steel Producers Association.

[27] Industrial mould includes all manufacturers engaged in casting and machining industrial metal moulds, including: extrusion moulds, industrial moulds, metal casting moulds and metal moulds for rubber or rubber products machinery.

[28] U.S. International Trade Commission, Tools, Dies, and Industrial Molds: Competitive Conditions in the United States and Selected Foreign Markets, October 2002, p. 4-4.