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back to index backAMERItalk January,  2006


Driving Canada's Engine of Growth

FOREWORD

Why Support the Auto Sector?

The auto industry is Canada's largest manufacturing industry by far. In fact, the original equipment supply industry by itself is Canada's largest manufacturing industry. The multiplier effect for the auto industry is currently being debated but the minimum multiplier for each assembly plant employee is 7 and there are economic models as high as 10. To put this into perspective, the new Toyota plant announcement in Woodstock which will employ 1,300 people translates to between 9,100 and 13,000 people that will have employment as a result of this plant commencing production. Not all of that additional employment will be in Canada, but the majority of it will be.

Government can afford to invest substantial sums to attract assembly plants to Canada because of the taxes (income, GST and provincial) they collect from their employees. Let's do a conservative estimate of the impact a hypothetical new assembly plant will have.

To download white paper, click here.

Source: APMA - GAI

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