The members of the Canadian Tool and Mechanized Association hope that military contracts provide opportunities for some manufacturing companies that seek to diversify away from the car sector in the middle of the current commercial war with the United States, according to the Chief of the Louis Jahn association.
In response to Prime Minister Mark Carney’s promise $ 8.7 billion for defense expenses By the Department of National Defense (DND) or other government departments, Jahn expects “some opportunity” for manufacturing companies.
But, he said, the track to reach that point where companies can obtain a contract is long.
“There are a lot Windsor tomorrow The guest host Chris Ensing on Wednesday.
“Meanwhile, your company has to survive, so what we must do is have some mechanism to make us competitive in all spaces, but the defense is wonderful.”
Carney announced in June that Canada would spend $ 9 billion in this fiscal year to fulfill its NATO commitments, and plan to spend even more in the coming years.
Jahn, who is also president of Jahn Engineering in Tecumseh, Ontario, said some companies could close as the commercial war continues.
“That realistic possibility cannot be ignored. I don’t think all companies within Windsor-Essex survive this situation that we are going on at this time unless things change and change quickly,” he said.
“It is very unfortunate, but to pivot, each company is trying to pivot. It is not so easy because we simply do not have relationships, contracts, certifications to do that type of work.
“We all have the experience, knowledge, equipment and infrastructure to do so, but we don’t have the other necessary relationships to get that job immediately. So we have thousands and thousands of incredible qualified workers in this area that will seek work, there is no doubt about that,” Jahn added.
‘This is just the tip of the iceberg’
Jahn’s company and others that are part of the Canadian tools and machining association produce tools that manufacture car parts.
Since the United States commercial war began earlier this year, Jahn said companies “have felt a recession in the business”, and the deceleration has led to “many employee layoffs.”
“We like to think that tool companies are like Canary in the coal mine. So, when things go wrong for us, that means that within six months or maybe within a year or maybe between 18 months, it will appear in the economy in a big way,” he said.
“Then, we believe that this is only the tip of the iceberg, less than things turn and change quickly, I think there will be many problems in the economy.”
‘We need funds:’ Chamber of the Chamber
Ryan Donally, President and CEO of the Regional Chamber of Commerce of Windsor-ESEX, said that with the federal government committing to spend a percentage of the Gross Domestic Product of Canada in Defense, its association is advocating “a guaranteed percentage of Canadian products made” included in that expense.
Donally said companies will need financial aid to get away from the automotive sector.
“Let’s say we want to go into defense or want to go more international and grow our relations with Europe or Asia of the South, we need funds for that to happen,” Donally told CBC Windsor.
“It is not something that someone can say: ‘Ok, I am changing to the defense, I will change a lot of my product lines, I will bring new equipment.’ This will be hundreds of thousands of dollars if not millions, and it will take months, if not a year or two to make these transitions.”
