The Agenda with Steve Paikin (Audio) - What is the Future of Canadian Manufacturing?
Episode Date: April 10, 2025Canada's manufacturing sector faced challenges even before President Donald Trump imposed tariffs on goods made here. The overall sector has shrunk, both in its contribution to our economy, and the nu...mber of workers it employs. So, how should Canada support existing companies and their workers as tariffs take hold? And what's the way forward to building up a homegrown manufacturing sector that provides higher-skilled jobs and in-demand goods? See omnystudio.com/listener for privacy information.
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Canada's manufacturing sector faced challenges
even before President Donald Trump imposed
tariffs on goods made here.
The overall sector has shrunk, both in its contribution to our economy and the number
of workers it employs.
So how should Canada support existing companies and their workers as tariffs take hold?
And what's the way forward to building up a homegrown manufacturing sector that provides higher skilled jobs and in-demand goods?
Let's get into that with, in Vancouver, British Columbia,
Jim Stanford, economist and director
at the Center for Future Work.
In Cambridge, Ontario, Michel Creutien,
Vice President of Research and Innovation
at Conestoga College and a member of the Natural Sciences
and Engineering Research Council of Canada.
And here in our studio, Jason Myers, CEO at NGEN,
that's Next Generation Manufacturing Canada,
and Brendan Sweeney, Managing Director
at the Trillium Network for Advanced Manufacturing.
And it's good to have you two gentlemen here in our studio
and to our friends in Points Beyond.
Jim and Michelle, thanks for joining us tonight on TVO.
Want to bring up a chart just to inform our discussion here. and to our friends in Points Beyond, Jim and Michelle, thanks for joining us tonight on TVO.
Wanna bring up a chart just to inform our discussion here.
This is manufacturing employment in Canada
since the late 1990s.
Back then, manufacturing was a bit more than 15%
of Canada's total workforce,
and for those listening on podcast,
we're looking at a ski hill here.
The numbers just go down, down, and down.
By 2019, it had gone from more than 15% to roughly 9%
where it sort of remains today.
So let's start with the whys behind that.
Jim Stanford, why did we lose all those jobs?
Well, the steepest part of that ski hill
that you just showed, Steve,
is the period of the early 2000s
when manufacturing was really hammered
by a number of factors,
including a very, very high Canadian dollar.
For a while, 2006, 2007, the Canadian dollar was trading for more than an American dollar,
which doesn't make any sense given the relative level of costs and prices in the two countries,
partly because of the big oil boom that was happening out west at that time.
That was during the maximum period of construction of oil sands facilities and so on.
So that was the worst of it.
Since then, we have stabilized and I think we should see that as a victory, frankly,
the fact that manufacturing employment has stayed fairly steady as a share of total employment.
That's in a labor market that's been growing quickly.
So we actually have added in terms of numbers of jobs,
we have added some jobs in there.
So I do think that, you know, Trump aside for the moment,
Canada has done a pretty good job
of maintaining manufacturing as a core part of our economy.
Let me ask Michelle to follow up by characterizing
the kinds of jobs that have been lost
over the last two and a half to three decades.
Yeah, that's interesting. I think that the kinds of jobs that have been lost over the last two and a half to three decades? Yeah, that's interesting.
I think that the kinds of jobs actually span
a variety of different skill domains.
And one of the things that certainly we hear
in talking to manufacturers on a daily basis
is they are seeking both skilled laborers
and general laborers,
but the skilled labor is becoming more and more difficult
to find due to perceptions of work
in the manufacturing industry, certainly other opportunities
that are available to skilled workers
and a lack of young people pursuing careers
in the skilled trades.
And then in the general labor category,
I think there's just really tough competition
and salaries have a hard time keeping pace
in a way that keeps Canadian
manufacturing competitive from a price point perspective. All right, with that background
in place, Jason, let me bring you in now. I'm not only going to ask you to put on the hat that
you're currently wearing, but you're the former head of the Canadian manufacturers and exporters
as well, so you know this file all too well. Tariffs are taking hold. What are the best ways
available, do you think, to support manufacturers and workers, given the new realities we're dealing with?
Well, let's keep our fingers crossed that the tariff issue is just a short-term issue and is not going to be sustainable over the long term.
Assuming that, the first thing we need to do is help companies stabilize employment.
One of the reasons why Canadian productivity over that period that Jim was talking about
from 2000-2010, one of the reasons why we didn't do too well in productivity is we kept
a lot of workers employed, although we lost workers.
And one of the other factors here, remember remember is the opening up of the North American
market to Chinese imports too during that period of time.
So we, I think right now we face a real problem of course with the tariffs.
It's giving companies a great opportunity to look for new markets, look for new customers,
look for new suppliers, new technology partners as well. This is the time to invest in new technology, in innovation, in new markets.
The problem is that with all the uncertainty, everybody's very, very cautious right now
about their cash, and companies will need to invest their cash.
That's where they look to invest.
But they're probably going to sit on it for now.
They're going to sit on it for now. They're going to sit on it for now.
So hopefully after this disruption passes,
we've got a little bit more clarity.
Then the question is, where do manufacturers go from there?
And as you were saying, Steve, the sector was facing some major problems
in terms of competitiveness, aging workforce,
and huge competition from around the world, even before the tariff issue.
So I think in the long term, let's focus on that.
Let's put the microscope on one sector, autos.
Autos and trucks, cars, whatever you want to call it.
How automated is all of that right now compared to, say, when we had 15% people working in
the manufacturing sector two and a half decades ago?
In certain assembly plants in Canada,
in certain vehicle assembly plants in Canada,
the updates, the investments in automation in facilities
that were already dictated by an assembly line
are just incredible.
And in the bigger Toyota plants that
manufacture about nearly 40% of all the vehicles made
in Canada today, there is AI, machine vision, all these fun
technologies are right there on the shop floor.
And this is what the production staff is engaging with.
I don't know if those technologies have been rolled
out consistently across every single assembly plant.
So there's possibilities.
There's a lot that can be done.
How much has been done?
That's a question.
And then there's a real diversity
of technological, of automation approaches in the automotive
parts industry.
But I'm wondering, is that part of the explanation behind why there are many fewer manufacturing
jobs in Canada today?
We've automated a lot more.
We have, but at the same time, if you look at the companies that are making vehicles
and making auto parts in Canada, They still employ a lot of people.
So there would be other sectors, steel, chemical, paper,
where output has grown and employment has decreased.
But in automotive, it has stayed relatively consistent.
There have been gains.
But those gains have led to other types
of jobs within the sector. I've got to ask the former economist for the Canadian Auto Workers Union
whether or not he opposes or understands or embraces the notion of more automation in the
auto sector. Go ahead, Jim. Oh Steve, I think it's quite wrong to blame automation for what's
happened in the decline of jobs. All of the modern assembly plants in
Canada use a huge amount of robots and automation and this is a good thing. I would much rather have
a plant that is automated and hires 3,000 people rather than one that uses the old technology and
hires 4,000. The reason being the one with old technology isn't going to stay open. The key
reason why automotive employment has declined from that peak in the late 90s is just that we're making a lot less cars. In
1999 we made 3 million assembled vehicles in Canada, that's about twice as
many as were sold in Canada and Canada ranked as the fourth largest automotive
assembler in the world. Last year we made half that and yet we bought 2 million
vehicles in Canada so we're now that, and yet we bought two million vehicles in Canada, so we're now
producing much less than we buy in Canada.
That's the main reason.
So automation and innovation and new tech is going to happen, and it has to happen,
and it is one of the reasons why manufacturing employment as a share of the total is shrinking
everywhere in the world.
And I think certainly an enlightened, intelligent union like Unifor is not going to stand in
the way of using the latest technology in our plants. What the union
really wants is to make sure those plants are in Canada and given what Trump
has done it's going to be more important than ever that the federal government,
the provincial government, all the companies are laser focused on keeping
that footprint here in Canada. Well let me follow up with Michelle on that.
Because of all of the uncertainty that we've been talking about
now that these tariffs are coming on,
do you think manufacturers are going to be, say,
more reluctant to invest in the innovation
and the automation that clearly is part of the future?
Yeah, I think short-term, you know, as Jay was saying,
the unfortunate consequence is that people are going
to hold back on investment and we're already
seeing that. I do want to jump in on the question of the adoption of technology and what that
means for employment. I think there are lots of examples in other jurisdictions around
the world where embracing robotics automation and manufacturing has actually resulted in
a net increase in jobs across the economy. So I think it isn't something to be scared of.
In fact, unions and governments and companies
partner together in countries in Europe
to embrace and encourage the adoption of automation.
I think our real challenge in Canada
is that we're not doing enough of it.
We talk a lot about Canadian productivity
and our gap or lagging productivity compared to other countries around the world.
And I think part of that is a lack of adoption of technology.
So we talked about automotive.
Certainly another big manufacturing sector in Ontario is the food and beverage sector, who are embracing automation at about the same rate as the automotive industry.
But it's still relatively low compared
to other countries around the world. So I think Canada was last ranked 15th of 20 countries when
it comes to the adoption of robotics technologies. And that was actually moving down since 2019. So
I think that's an area that we need to look at. And nothing like a good crisis to give us the opportunity to focus inwards
and think about what we might want to do when the current season of tariffs, etc.,
has hopefully passed.
So, yeah, to answer your question, short-term,
I think people are going to hold back on investing,
but I really think that governments in particular
should be looking at how we encourage that investment now and in the future.
Jason, I should get you to weigh in on what role you think automation and AI have played in that
ski hill graph that we saw earlier. Well one of the things I think we have to take into consideration
is that the automotive or the automotive and the manufacturing value chain in Canada is a lot bigger
than what that graph shows. All of the technology, all of
the engineering services, all of the business and financial services that go
into manufacturing, that footprint is much larger, probably over twice as
twice the size of the employment in manufacturing itself. So I think that's
very important but now, especially with AI and all
of these other technologies that are coming into play,
automation is important.
We have disproportionately more small companies
in Canada's manufacturing sector,
more small companies proportionately than the US
does.
So we have to understand the sector.
We have to understand that Canadian manufacturers,
by and large, create value through much more
customized product.
They're focused on value.
They're not focused on volume.
The way we measure manufacturing is outdated.
It's 40 years old.
It's based on manufacturers producing stuff. Well, today, the nature of the business
is about producing solutions.
And that means it's manufacturing,
but it's also technology, and it's also services.
And so let's take a look at that and how AI, how some
of these new technologies fit into that.
So if we're about creating solutions
as opposed to products, should we not
obsess so much about these numbers we're looking at? I think we need
to look at them in the context of a modern manufacturing economy where
the footprint is much greater than these numbers alone. We need to
produce products there, but today because of some of the advances in AI,
for example, every product, every machine, every process
is a data platform.
And today, you can read the data, the services
that you're providing from all of that digital technology.
That's a source of value for companies improving product,
improving their own processes, improving
delivery times, improving the quality of the product.
There's a company here in Ontario called Shimco and they manufacture the most basic product
you could ever think of, a metal shim.
This is what you put in between parts to stop them vibrating.
But they put a sensor in that shim.
And their business is not making the shim.
Their business is reading the outcome of the sensor,
the vibration, and they're a service company
that's doing a lot of business
with the aerospace industry right now
because of all of the products.
You want to measure the vibration in an airplane. So you know we need to think
differently about what how manufacturing services and technology all work
together. AI for instance is allowing companies to figure out where they have
problems in their processes, where they can add value to their products. I think
we're at really the cusp of a real unique revolution in manufacturing
where if companies can jump onto this,
they can continue to drive what has been fundamental to Canadian manufacturers
and that's producing value for customers.
It's not getting product out the door.
Well, okay, let me do an example here with Brendan
because I have seen numerous announcements
by the Prime Minister of Canada and the previous prime minister
and the current premier of Ontario
and his economic development minister
opening up new facilities for EV manufacturing here
in the province of Ontario.
Given the regimen that we're going through right now,
tariffs and all of the nonsense from south of the border, do you think we are in the midst
potentially of an existential crisis as it relates to all of that investment in
EV manufacturing in Ontario that we have committed to?
Probably not. You say probably not. Probably not because I can't I don't have a crystal ball. He's an economist.
The trajectory of the world is going electric.
There may be a blip in North America,
but from everything we understand in the 2030s,
in the 2040s, in the 2050s, the mix of vehicles
will have more electric vehicles.
Will we hit one? That's not the existential crisis I'm thinking of, though.
I'm thinking of tariffs repatriating all of what
we've got here to the United States, which
is what Trump wants.
I don't think the United States could handle it all.
I don't think they have the workforce.
I think that companies chose to locate these facilities
in Ontario for a good reason and
not the United States and not Tulsa, Oklahoma for a similarly good reason.
Part of that is talent.
Part of that is we have a mature ecosystem.
The manufacturing ecosystem in the GTHA extended out to Waterloo, it is just absolutely incredible.
It's one of only two major metropolitan areas
in North America that has full-scale aircraft
and full-scale automotive assembly.
Dallas-Fort Worth is the other one.
It's the only one that adds to that integrated steelmaking,
the ability to make nuclear reactors, biopharma,
and we're forgetting one of the largest,
if not the largest, segment
of manufacturing in the area, and that's food.
So all of that provides hard to measure but just incredible value to anyone who's locating
in Simcoe County or in St. Thomas.
Okay, I get you.
Is it...
Our automotive industry has been in a bit of an existential crisis since the 1960s.
And we always kind of come out on the other side of it.
So I think we'll come out somewhere good.
It might be a little bit different.
It might be a little bit more delayed
than what we had anticipated a couple of years ago
when we were talking about it on this show.
But will we be making batteries for vehicles in 2030 at three or more facilities
in Canada?
Most likely.
What did you say?
Most likely.
I don't have that crystal ball.
I still want to yes, but okay, most likely I guess we'll have to take it right now.
Steve, could I add in here too?
Last week in the midst of all this chaos, Siemens made an announcement they were investing 150 million dollars in the establishment of a global EV battery research hub here in in southern Ontario.
They wouldn't do that if they weren't serious and if they weren't taking
advantage of as Brendan says of the skills of the great innovation ecosystem
that we have in this province.
Fair enough but okay I'm gonna get Jim
Stanford back in here now because of, it didn't take too long once Trump
threatened his tariffs for the auto manufacturers
in the province of Ontario to start laying people off,
understandably, if there's not going to be.
Anyway, you know where I'm going with this.
What's happening with employment insurance right now, Jim?
What needs to change to take account of the new reality we're dealing with?
Okay, Steve, I will answer that question, but I've got to jump in on the EV discussion you were
just having. Because I share Brendan and Jason's confidence that we've got the amazing makings of
a world-leading EV industry, and the world is going to EVs, no doubt about it. But the industry
is going to need some forceful and targeted help to get through
the next two to three to four years, however long this takes.
Because in addition to Trump's tariffs, he has also pulled the plug, to use an
analogy, on the whole Joe Biden program to accelerate EV development in the US.
You know, Trump was on TV yesterday holding up lumps of coal saying we're
going to support the coal industry, instead of trying to move
forward and position America at the forefront of that EV revolution.
So Canada is very well positioned long term, but we are going to need some
very focused assistance. And that includes focused assistance for the
workers. So I will answer your question now. EI is still full of holes.
We knew it was full of
holes when the pandemic hit a few years ago. That's why the government had to
move to the CERB vision of emergency payments directly to workers and so on.
There was a promise to fix EI and make sure that more unemployed people could
qualify for the benefits and it hasn't been fulfilled. So we are in a situation
where we're seeing you know temporary layoffs at plants that are idled waiting to see what happens with the tariffs, but
potentially longer-term layoffs if we get closures or restructurings happening.
So we're gonna need, I think, a whole slate of improvements in EI, eliminating
the waiting period. The government, to its credit, has done that, increasing the
level of benefits. A key thing we should fix is how EI is integrated with
training.
Right now if you go into a vocational college or back to university or something you would lose
your EI benefits and that doesn't make sense. We want people to adjust and learn new skills so
we've got to fix that problem where people aren't financially penalized for taking the leap back in.
So EI is going to be a vital tool in the next year or two as we go through this
and we've got to fix it.
Michelle, we've been talking a lot of auto sector here so far, but I guess I should ask
what else are we really good at making in this province?
Well, that's a good question. So, and we do tend to talk about auto a lot more talking
about manufacturing, but as I alluded to earlier, food and beverage is almost equal size.
I think they out took automotive manufacturing slightly during the pandemic,
but an equally important sector, particularly in Ontario,
where we have the largest cluster of food and beverage processing in Canada.
So that's a really important one, lots of jobs and lots of really great innovation
and opportunity in that space.
I think we also, obviously there's aerospace, which we would include in kind of transportation.
And let's not forget chemicals, rubbers, plastics, and also biopharmaceuticals and pharmaceutical manufacturing.
So I think there's been an interesting storyline in Sarnia over the last number of years,
with a shift to looking at biochemicals and biofuels.
And I think that stands out as an example of what Ontarians and Canadians can do when faced with a
challenge, right, is pivot, is look at where we add value. And as Jay was alluding to earlier,
this idea of focusing not just on producing stuff and as much stuff as we can get out the door,
but really looking for opportunities to add value,
to leverage data, to embrace technology
in order to create something meaningful for a customer,
not just a lot of things for a customer.
Can I just ask you two here,
did you both go to this conference in Germany,
this industrial conference in Hanover?
We were talking about it before we went on the air here.
We did. Okay.
I mean, presumably you picked up some sense in the rooms that you were in
about what kind of reputation we have as it relates to manufacturing in this country.
What are you hearing?
So, first of all, Canada was a partner country and officially invited by Chancellor Schulz
to participate. The reason was because the Germans know that Canada is a source of tremendous industrial
technology here.
Everything from robotics to AI, of course, to quantum to advanced materials.
That's why we were invited there.
There were a thousand Canadians in Hanover last week.
They were looking for new customers, new suppliers, new innovation partners, new investors.
And I think that's exactly the type of reaction.
Everybody was very positive.
When you had Chancellor Schultz get up and said, we believe in Canada, he got a standing
ovation mainly from the Canadians, of course, there.
But it's so important and to see Canada as a reliable trading partner, but also a
reliable supplier and a reliable customer for German businesses as well.
Well Brendan, I don't want to be a killjoy here, but I'll get you to react to another
chart we're going to put up.
This one is going to show the decline in value added manufacturing as a percentage of our
economy here in Canada.
And again, for those listening on podcast, I'm going to describe the same ski hill again.
It was once upon a time, I guess as high as 17% in the late 1990s, but it's around 9%
today.
So how do Canadian manufacturers reverse that trend and increase the sale of value added
products?
I think that we really target and focus
on higher value industries or industries
with the potential to be high value.
I think about space, I think about bio-pharma
as two industries that are at once highly productive,
high value, high tech,
and that really fit the profile of the people that are graduating
from Canadian universities and Canadian colleges.
People in Hamilton and Sault Ste. Marie
will want to know if steel is on your list as well.
Steel's already there.
And we're investing, and some of that steel
might go to the space industry
So steel is on that list
But biofarm more biofarm a more space, you know the likelihood we will get another integrated steel mill in the next
Decade or two is low, but the likelihood that
We will invest at the fastco and at Algoma,
and that's what I'm going to call them.
Even though they're not called that anymore, but no.
I'm with you.
Use the old name.
Well, we are investing there.
And the ArcelorMiddle, DeFascoMill,
that is that company's flagship mill outside of, I guess,
Luxembourg, outside of the EU.
And I think it will remain that way.
That's probably the best steel mill in North America.
Okay, Michelle, your post-secondary institution,
obviously, is in the business of trying to prepare
young people for the jobs of the next generation,
and I guess I want to know what kind of skills,
as it relates to manufacturing,
do you think they're going to need to have
as processes become more complex and sophisticated going forward?
Yeah, so I think we see that there's certainly continued demand for skilled trades workers. So across, you know, welding, machinists, those types of roles are highly coveted. And there's still a gap in manufacturing industry today.
highly coveted and there's still a gap in manufacturing industry today.
But then I think we see more integration as we've all been talking about of technology, whether anything from robotics to AI, and that requires a
different skillset.
And so, you know, we and others, all the post-secondaries in Ontario, by the
way, Ontario has an absolutely world-class, completely outstanding post-secondary
education system, and we are very blessed.
And that is one of the core reasons why companies choose to invest here
is because of the talent that we produce. So I think we'll see
across our STEM programming, so engineering, engineering,
technologists, those students, those graduates will be, will be,
I was gonna say looking, but it's actually more of it the
other way around companies will be looking to those graduates to fill graduates to fill their ranks. And I think we have a challenge there a little bit in when
we talk about the labour shortage in manufacturing. And there was, Jim made a great point that I want
to come back to about the period that we're in right now where we see layoffs and potentially
workers having to access employment insurance benefits. This is an amazing time to look at
the long between 80 and 200,000 vacancies in the manufacturing industry across Canada, depending
on who you ask. What an amazing time to help those workers reskill or upskill to fill those vacancies.
So I think there's Jim's absolutely right. There's a fix that we could look at there.
Excuse me. And I think that the industry,
so we're creating all these graduates,
we have amazing people,
we have an amazing education system.
And the question then becomes,
why aren't those people choosing jobs
in the manufacturing sector?
And there, I think we have some work to do
around the perception of jobs in manufacturing
and some work to do on the diversity end,
or to be honest.
So we have women, for example, as 50% of the workforce
and less than 30% of the manufacturing workforce.
And that number has been flat for basically,
certainly since I've started talking about this,
so a couple of decades.
So we have the talent, there's no question.
I think there's a bit of a matchmaking exercise
that all of us need to engage in.
And there's some great work going on. I just think we need to stay the course and not underestimate
how long it takes to change hearts and minds when it comes to perceptions of what jobs and
manufacturing can be because there's no question that they are not what they might have been in
the past. They are high tech, they are exciting, they are embracing the latest technologies.
And these are careers really that young people
should be wanting to go into.
Well, Jim Stanford's been coming on this program
for a couple of decades trumpeting what you just said.
So I know he is, you're preaching to the choir with him,
but Jim, what I wanna ask you is,
if we wanted to create a national industrial strategy
in this country and we wanted to support a kind of an advanced manufacturing sector going forward,
give me some sense about what that looks like.
We have got such a toolbox of different policies and levers and regulations that we could apply
in manufacturing.
And when we look around the world at countries that have been successful in this mission
of using active industrial policy to support high-value industries within their own jurisdictions,
we've got lots of experience to draw on.
You know, in Canada, our auto and aerospace and pharmaceutical industries here are the result of active policy,
active national strategies to bring those industries here.
In auto, it started with the AutoPact, of course. With aerospace, we had everything from public ownership of aerospace
manufacturing to proactive procurement strategies to make sure that we bought Canadian-made aircraft
for our airlines and our military. In pharmaceuticals, it was all tied in a sort of a quid pro quo with
some of the patent rules. So almost anything that government does, you can find a way to make a connection
to increasing domestic value added.
And so I think we're going to need, we're going to need something like that.
Because even if Mr.
Trump changed his mind tomorrow morning about this whole tariff thing, we've
still got a situation where nobody can count on America being the biggest
asset for an investment in Canada.
You know, we used to say, come to Canada, we're next to America, and you can sell all your stuff
there. And nobody believes that anymore. So we are going to have to have, I'd say, a multi-dimensional
industrial policy strategy to make sure that all of those value-added industries in Canada
are able to survive Trump, first of all, but even better, then
go on and grow and we'll end up, if we do this right, we'll end up with a
stronger, more self-sufficient economy.
Jason, in our last couple of minutes here, it's probably a good idea to steal ideas
from other countries that would be doing things well that we want to do well as
well. What ideas do you see out there from other countries that we ought to rip off?
Well, I think particularly the European countries, and Germany in particular,
their focus on apprenticeships, their focus on young people.
But you know, every country in the world is struggling right now with this revolution in manufacturing.
How do we, particularly small companies, how do we accelerate the adoption of technology
and do it successfully? Because a lot of you can invest in it in a technology and but it's that that's a totally
different question than can you manage that technology successfully can you
actually generate value as a result of that so you know I think there are some
very significant programs around labor force development maybe one of the
things that we should be stealing is a real focus on making stuff,
a real focus on manufacturing,
or in advanced manufacturing,
seeing that as a cornerstone of economic development.
Have we gotten away from that?
Oh, I think we have.
I think it's the last 20 years
that we've moved away from manufacturing.
We've put a huge emphasis on tech,
and we've got some of the best tech companies in the world
here in Ontario.
What we need to do is match those tech companies up
with manufacturing customers and accelerate this adoption
of Canadian-made technology here in Ontario.
You know, there aren't very many places in the world
with this concentration of leading-edge research of technology, large and small companies,
startup ecosystems as Michelle was saying of this great skills base and the
colleges that provide that and the variety of manufacturing that the
Brendan was saying. How can we bring all of this together,
drive more collaboration, make this work, and actually create an economy in the future
that really is leveraging up all of these great assets that we've got?
And one other thing, Steve, going back to this graph, I don't believe for a minute that
real GDP is a good measure
of manufacturing activity.
You add more value in your product, you add more value in your service, and that discounts
it as inflation.
We are not measuring the impact of manufacturing in this country or the manufacturing supply
value chain around this really important sector.
Jim, in our last minute, I'm going to ask you a question
you're not going to like at all, but what the heck?
Let's have a little fun here.
Do you, are you prepared to give Donald Trump some credit
in as much as he has really put the accent back on
reshoring manufacturing to this continent,
and we've been getting away from it
for the last many decades?
I don't think so, Steve.
I don't give him credit because he's lying about it.
First of all, as Brendan pointed out earlier,
they cannot quote unquote,
reshore all that stuff back to America.
They don't have the space, they don't have the factories,
they don't have the capital,
they don't have the people to do it.
And in most of it, they don't want it.
Most of the things that they're talking about
in terms of work, especially more labor intensive work
that's done elsewhere in the world,
America as an economy doesn't want that. They've got 4% unemployment,
they are not in a depression, at least not yet.
So this idea that they need to get everything back is wrong
or that they can bring it back.
Secondly, the idea that it was ever theirs
to start with is false.
The jobs we have in manufacturing in Canada,
we didn't steal from America. We were manufacturing long before we ever had a trade agreement or
an auto pack. We made cars back in the 1900s. So they weren't America's jobs to
take back. He is just playing for a domestic political audience and pushing
these buttons about how America is supposedly mistreated and I'm the guy
who's gonna put America first. That reshoring narrative is not going to work, and it's not even what his motivation is.
So this is where we have to, I think, have the confidence as a country to say we don't
– you know, we are going to export to America, and this is important to us, but we have got
the capacity to build a self-reliant, high-value, productive, prosperous economy on our own,
and reject Trump's false narrative here.
Get off the fence and tell me what you really think.
Someday, Steve, I'm going to tell you what I really think about this.
Exactly. Exactly.
Great discussion, everybody.
Thanks so much for coming on to TVO tonight.
Thanks to Jason Myers from Next Generation Manufacturing Canada,
Brendan Sweeney from The Trillium Network,
Michel Creutien, Conestoga College,
Jim Stanford, who's telling it like it is, at the Center for Future Work on the left coast in Vancouver.
Thanks so much, everybody.
Have a grand day.
Thank you, Steve.
Thank you.
Thank you.