EDCโs semi-annual Global Export Forecast predicts that Ontarioโs automotive products sector, which accounts for nearly 40 percent of the provinceโs exports, will grow by 10 percent 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.
โHigh 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,โ said Peter Hall, EDCโs chief economist. โThis is having a considerable impact on Ontarioโs exports, and we expect that demand to continue going forward, not just in the auto industry but most sectors of Ontarioโs economy.โ
EDCโs forecast for Ontarioโs exports is solid all around, with few sectors experiencing decline. Of note, the provinceโs exports of industrial machinery and equipment will see a boost of nine percent this year, while metals, ores, and other industrial products will increase by five percent. Again, this export growth is supported by a robust US economy and a competitive currency.
โIf the locomotive of world growth is the US, Canada is the first wagon, with Ontario sitting firmly in the front row,โ adds Hall. โThis return of demand for manufacturing plays right into the strengths of Canadaโs manufacturing heartland.โ
