A resurgent auto sector, high demand in the US, and a low Canadian dollar are driving Ontario’s exports to seven per cent growth this year, the most growth of any province in Canada.
EDC’s semi-annual Global Export Forecast predicts that Ontario’s automotive products sector, which accounts for nearly 40 per cent of the province’s exports, will grow by 10 per cent this year, bolstered by record-high demand for light vehicles in the United States, and higher shipment volumes from assembly plants in Oakville and Windsor, which are now back in full operation following some down time for modernization and retooling.
“High income growth, high employment, rock-bottom gas prices, and considerable pent-up demand caused by post-recession thrift are all combining south of the border to create the perfect recipe for demand,” said Peter Hall, EDC’s Chief Economist. “This is having a considerable impact on Ontario’s exports, and we expect that demand to continue going forward, not just in the auto industry but most sectors of Ontario’s economy.”
EDC’s forecast for Ontario’s exports is solid all around, with few sectors experiencing decline. Of note, the province’s exports of industrial machinery and equipment will see a boost of nine per cent this year, while metals, ores, and other industrial products will increase by five per cent. Again, this export growth is supported by a robust US economy and a competitive currency.
“If the locomotive of world growth is the US, Canada is the first wagon, with Ontario sitting firmly in the front row,” adds Hall. “This return of demand for manufacturing plays right into the strengths of Canada’s manufacturing heartland.”
Mr. Hall is discussing Ontario’s export prospects — and those of the rest of Canada — in a meeting today with local business people at Burlington’s Economic Development Corporation (BEDC) and in a second session with the Vaughan Chamber of Commerce.
Over the next month, Hall will travel across Canada for EDC’s Let’s Talk Exports tour, which offers insights on the current global economy and explores how economic trends will impact Canadian exporters. It also analyzes a range of risks for which exporters should be prepared.