Cluster comparison: Detroit

The Birth of Detroit’s automotive industy

“Detroit, just across the Detroit River from WINDSOR, became the world centre for automotive production at the beginning of the century. The reasons for Detroit’s predominance seem to have been based on its well-established carriage, bicycle and boat-engine industries and the excellent road system in the surrounding region. Windsor became the Canadian extension of Detroit because of 2 inducements: a 35% tariff on carriages of all kinds entering Canada and a preferential tariff entry to British countries.

It was the master mechanics of Detroit who turned the luxury plaything into a mass-produced, low-priced, reliable convenience for common use. Ransom E. Olds was the first successful mass producer in the US, with his rakish, curved-dash “merry” Oldsmobile. Important contributions were made by Ford, Charles and Frank Duryea, Henry Leland, Walter Chrysler, Charles Nash and Charles “Boss” Kettering, who invented the self-starter which made motoring less dangerous and more reliable.”

http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0000412

 

The Birth of Automotive industry in Canada

“The Automotive Industry in 1986 comprised some 500 establishments, producing almost $37 billion in vehicles and parts; it ranked first among Canada’s manufacturing industries. The first horseless carriage in Canada was built by Henry Seth Taylor in 1867 in Stanstead, Québec.

The automotive industry began in Canada when a group of young businessmen in Windsor, Ontario, led by Gordon M. McGregor, formed the Ford Motor Co of Canada, Ltd (1904), only a year after Henry Ford, the promoter and inventor, had begun production in Detroit. Cars were assembled in the works of the Walkerville Wagon Co, Ltd, as parts were ferried by wagonload across the Detroit River. Canadian Fords were soon being shipped to most parts of the far-flung British Empire. Colonel R.S. MCLAUGHLIN, Canada’s pioneer in the industry, converted the family’s thriving carriage and sleigh production in Oshawa, Ontario, to the new horseless carriage with its noisy internal-combustion engine.

The form and size of today’s automotive industry was shaped by the first “Canadian-content” legislation in 1926, the Tariff Board hearings of the mid-1930s, the Royal Commission on the Automotive Industry of 1960, the subsequent CANADA-US AUTOMOTIVE PRODUCTS TRADE AGREEMENT (APTA or Autopact) of 1965, and the Iranian oil crisis of 1979, which ushered in the automotive depression of the early 1980s.”

http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0000412

 

Presentation podcast

boomp3.com

The above link is my podcast that had been uploaded on Boomp3.com

Simply browse the link and click play to follow through with my power point slides from page to page.

Thank you!

 

Presentation PPT Slide

Below is the ppt slide that I had attached to Slideshare.com:

http://www.slideshare.net/syyip1/gta-automotive-cluster-345143/

 

Strategic Skills Programs in GTA

“Advanced Manufacturing & Design Technologies Centres for Brampton and Regional Manufacturers (Brampton)

• Skills: advanced manufacturing
• Project lead: Sheridan College
  Sheridan College will open a new Advanced Manufacturing and Design Technologies at its Davis Campus in Brampton in 2005. The Centre will target skills shortage by offering a combination of apprenticeship, diploma and graduate certificate programs. It will also offer intensive industry training on technical, business and soft skill upgrading for industry employees.

Centre for Engineering Design and Rapid Manufacturing
(Toronto)

• Skills: mechanical engineering, design, manufacturing, tool & die.
• Project lead: Centennial College.
  The goal of the program is to increase the numbers of full time technologists and technicians by 200 annually.

Integrated Manufacturing Centre (Oshawa)

• Skills: advanced manufacturing and related management skills.
• Project lead: Durham College & University of Ontario Institute of Technology
  The IMC will provide unique working, industrial grade, flexible manufacturing facilities that will showcase advanced technologies and provide industry-relevant training to students in diploma and degree streams and for the re-skilling of workers.

Strategic Training in Nanotechnology, Fuel Cells and Smart Structures (Kingston, Toronto, Niagara Falls)

• Skills: nanotechnology
  Project leads: Queen’s University and Niagara College.
  Designed to increase Ontario’s supply of materials engineers, scientists, technicians and technologists, the project will focus on industry-identified applications and project-based learning activities conducted at university and college labs. Emphasis will be placed on advanced materials and nanotechnologies in a broad base of engineering disciplines, specifically solid oxide fuel cell technologies, smart structures, electronics & photonics and manufacturing applications.”

http://www.greatertoronto.org/investing_sec_01.htm#99

 

Thestar News today; “Auto products drive retail sales”

“Apr 09, 2008 08:53 AM

THE CANADIAN PRESS

OTTAWA – Canadians’ dependence on their automobiles was exacting an ever-increasing cost in 2007 as retailers had a strong year with sales increases in all major commodity groupings.

Statistics Canada is reporting that Canadians spent $413.4 billion on goods and services in retail stores last year, 5.8 per cent more than in 2006.

Almost a third of retail purchases – $31 of every $100 spent in retail stores – went to automotive-related products in 2007.

Of all commodity groups, sales of automotive fuels, oils and additives had the strongest growth, up 11.3 per cent over 2006 to $41.5 billion.

The agency says gasoline prices rose 4.5 per cent over 2006, the third time in four years that automotive fuels, oils and additives led sales increases among retail commodity groupings.

Sales of motor vehicles, parts and services rose a modest 3.6 per cent in 2007 to $87.4 billion, on the strength of sales of used automotive vehicles, which rose 7.4 per cent, the largest annual increase in sales of used automotive vehicles since 2001.

The overall, year-over-year sales increase in the third quarter was the year’s weakest at four per cent.

More than half of spending in retail stores focused on transportation, food and beverages.

Of every $100 spent in retail stores in 2007, consumers spent about $21 on food and beverages, $21 on motor vehicles, parts and services, $10 on automotive fuels, oils and additives, $9 on furniture, home furnishings and electronics, $9 on health and personal care, $8 on clothing, footwear and accessories, $7 on hardware, lawn and garden products, $3 on sporting and leisure goods and $2 on non-electric housewares.

The remainder, about $9, was spent on all other goods and services such as tobacco and pet food.”

http://www.thestar.com/article/412859

 

2008 APMA Annual Conference and Exhibition

2008 APMA Annual Conference and Exhibition

         Developing 2020 Vision

Features:

•       OEM executives and Tier I purchasers invited to meet you!

•       AUTO21 “Innovation Showcase”, OCE “Commercialization Zone” and the IBM Internet

“Collaboration Zone”on Exhibit floor

•       Booths of key industry manufacturers and industry suppliers

•       Opportunities to meet international delegates from key automotive focused countries

•       Opportunity to network with Canada’s leading researchers

•       Numerous networking opportunities

 

http://www.apma.ca/client/apma/apma.nsf/object/2008+Brochure/$file/2008+APMA+Conference+Brochure.pdf

 

Environmental or Not Environmental?

“March 7, 2008

Few willing to pay for environmental vehicles

–> Westlake Village, California – A new report by J.D. Power and Associates found that although many new-vehicle buyers may want to purchase an environmentally-friendly vehicle, only 11 per cent are “very willing” to pay more to do so. The study, 2008 Power Auto Offline Media Report, found that in particular, new-vehicle buyers who express a strong willingness to pay for more environmentally-friendly vehicles are more likely to be female and are highly educated. The concentration of consumers willing to pay extra is highest in the western U.S. and lowest in the Midwest. The study also found that among these consumers, approximately one in 10 actually purchased a new hybrid vehicle. “The marketing buzz in the automotive industry is all about green cars and trucks,” said Jon Osborn, research director at J.D. Power. “While most consumers immediately think of hybrids when considering an environmentally-friendly vehicle, the price premium of hybrids may be prohibitive. However, consumers don’t have to buy a hybrid vehicle to be environmentally friendly. One can still be environmentally conscious by buying a more fuel-efficient vehicle that gets good gas mileage.” The study also found that new-vehicle buyers who say they are very willing to pay more are also more likely to purchase compact vehicles than the average new-vehicle buyer, and tend to have owned smaller vehicles previously, demonstrating a propensity to consistently choose more fuel-efficient models. The study found that those who purchase hybrid vehicles tend to have attained much higher levels of education, report much higher household income, and are an average of 54 years old, or about four years older than the average new-vehicle buyer. Hybrid owners tend to be proud advocates of their vehicles and typically provide many more positive recommendations about their ownership experience than do other new-vehicle buyers.”

http://www.canadiandriver.com/news_2008/03/07/080307-5.htm

 

GTA Automative Clusters

Some of the Automotive clusters in GTA:

1.   Automotive Parts Manufacturers’ Association

“APMA is Canada’s national association representing OEM producers of parts, equipment, tools, supplies and services for the worldwide automotive industry.

The Association was founded in 1952 and has over 400 members accounting for ninety percent, directly or indirectly of independent parts production in Canada. In 2006, automotive parts shipments were just less than $32 Billion and the industry employment level was over 92,000 people.

APMA’s fundamental objective is to promote the O.E. automotive supply manufacturing industry both domestically and internationally. The Association provides important representation to both Federal and Provincial Governments, supports regional government initiatives and creates and executes global marketing initiatives in order to develop trade and business opportunities for the membership.”

http://www.apma.ca/

2.  Automotive Industries Association of Canada

“The Automotive Industries Association of Canada (AIA) is a national trade association representing the automotive aftermarket industry in Canada. The aftermarket is a $16.1 billion industry that employs more than 220,000 people. The industry is composed of companies that manufacture, distribute and install automotive replacement parts, accessories, tools, and equipment.

 

 

 

AIA represents manufacturers, re-builders, manufacturers agents, warehouse distributors, national distributors, buying groups, wholesalers, machine shops, retailers, and through its councils, the interests of collision repair shops and automotive service and repair outlets.

 

 

AIA’s mandate is to promote, educate and represent members in all areas that impact the growth and prosperity of the industry.”

http://www.aiacanada.com/index.cfm

3.  AUTO 21

“It is a national research initiative supported by the Government of Canada through the Networks of Centres of Excellence Directorate and more than 110 industry, government and institutional partners.

AUTO21 was formed to focus Canadian research expertise on the task of improving and enhancing the global competitiveness of the Canadian automotive industry. The Network currently supports over 265 top researchers working at 42 academic institutions, government research facilities and private sector research labs across Canada.”

 

 

 

 

http://www.auto21.ca/home_e.html

 

Cluster statistic facts

“The Greater Toronto Area is the second largest automotive cluster in North America & is accounts for 58% in Ontario.

Source: Statistic Canada, U.S. Department of Labor, Bureau of Labor Statistics.

The Industry

• Three major auto manufacturers – General Motors, Ford and DaimlerChrysler – collectively operate seven assembly plants in the Greater Toronto Area (GTA).

• General Motors, Ford, Honda, KIA, Mazda, Suzuki, Nissan, Volkswagen, Toyota, Hyundai, Aston Martin, Jaguar, Land Rover, Subaru, Volvo, BMW, and Mitsubishi chose the GTA for their Canadian headquarters.
• More than 700 parts manufacturers help make the GTA one of the most vital and diverse automotive clusters on the continent.
• GTA automotive companies employ close to 50,000 workers, second only to Detroit, and produce more than 1.1 million cars, trucks and minivans per year. Major employers include: Ford, DaimlerChrysler, Magna, Honda, Lear, A.G. Simpson, Benteler, Dana, Collins & Aikman, Woodbridge Foam, Polywheels.
• Vehicles assembled in the GTA: DaimlerChrysler: 300 Series, Magnum, Charger; Ford: Freestar, Monterey; Honda: Civic, Acura EL, Pilot, MDX, Ridgeline.
• 803,405 vehicles were built in the GTA in 2004 (or 2,201 a day).
• The industry produced vehicles and parts worth an incredible $37 billion in the GTA in 2004 (or $101 million a day).
• Ontario is the most important vehicle-producing jurisdiction in North America, producing the highest vehicles than any other region or State. 2.4 million vehicles were manufactured in the Greater Toronto Area in 2006.

Jobs and the Local Economy

• The auto industry directly employs 63,400 people in the GTA.
• Thousands more jobs are created to supply the industry: jobs in steel, plastics and other manufacturing and services. More jobs are created by the spending power of auto workers’ paycheques.
• The major original equipment manufacturing jobs in the region stimulate an estimated 89,000 jobs throughout the economy.
• Auto workers’ paycheques pumped $3.3 billion into the GTA economy in 2004 (or $9.1 million a day).

Supporting our Community

• Labor costs in the GTA are 32% lower than leading automotive clusters in the U.S.

Innovation

Canada and Ontario are working hard to ensure the continued strength and growth of the Canadian automotive industry. In 2004, the Canadian Automotive Partnership Council (CAPC) released, “A Call for Action: A Canadian Auto Strategy,” while the Ontario Government launched the Ontario Automotive Investment Strategy (OAIS), a new five-year, $500 million program designed to strengthen the industry’s competitiveness.

These strategic initiatives will support private sector investment with:

• Advanced skills training to keep pace with new technology and processes.
• Innovation through consumer credits and commercialization tax credits.
• Over $1 billion for leading-edge investment in automotive engineering and manufacturing facilities.
• $300 million to improve border-crossing infrastructure and regulatory harmonization.
• New environmental technologies and energy efficiencies.

In addition to the Ontario Automotive Investment Strategy, Auto 21, a Canadian government Centre of Excellence, focuses on research for improving competitiveness in the automotive sector. Auto 21 employs the expertise of 230 top researchers in more than 35 academic institutions, government research facilities and private labs nationwide.”

http://www.greatertoronto.org/investing_sec_01.htm