Jerry Cook Editor, MPP jcook@clbmedia.ca

Underlying economic strength should see Ontario through slowdown

Ontario will likley teeter on the brink of a recession for much of 2008 but other positive market forces should be enough to help buoy the province′s economy during the year and help Ontario push through the tough times ahead, according to a recent report from RBC Economics.

“The nationwide hit to Canada’s exports will disproportionately affect Ontario because of both its heavy reliance on U.S. demand for its products as well as the unfavorable composition of those exports that are largely focused on the auto and forestry sectors,” says the RBC Economics recent Provincial Outlook report.

Adds the report, “Ontario’s exports to the United States account for roughly 84% of its total exports and about 40% of its GDP. The heavy drag from Ontario’s trade will see the province teeter on the brink of recession through 2008 delivering sub 1% growth this year followed by a modest pick-up to 1.9% in 2009 alongside a recovering U.S. economy.”

As a result, the report concludes that while the possibility of a technical recession in 2008 can’t be ruled out, “We think that the slowdown will be short-lived with enough offsetting forces to push the economy through these tough times. Real estate markets are in healthy shape, real wages are still rising, and a big dose of interest rate stimulus should provide a boost as it filters through the economy this year,” the RBC Economics analysis states.

The report points out that the recent Ontario government budget in which the provincial government tabled a balanced budget but warned of growing risks to key revenue drivers.

“Significant year-end expenditures prohibited any meaningful, and much-needed tax relief. The budget is expected to remain balanced through to fiscal year 2010-2011 with $3 billion in cumulative reserves built in to provide a buffer against mounting downside risks to economic growth,” the RBC Economics report says.

According to the report, further evidence of a slowdown is also becoming apparent in Ontario’s labour markets.

“Digging beneath the headline numbers, Ontario’s job market resilience now appears overstated. The year-long trend shows that the public sector has been doing the heavy lifting, while the private sector is in contraction, with declines led by key sectors including forestry, agriculture, manufacturing, finance, insurance, and real estate.

“Some slack emerging in the labour market confirms that the province is gearing down as companies trim their operations,” the report says.

In a nutshell, those companies that can hold the line during 2008 should be looking ahead to an improving market environment next year.

Mazak Canada open house focuses on solutions for global competitiveness

Left to right: Bill Miller, vice president, A.W. Miller; Rick Ware, vice president, marketing, Advantec Division, Mazak Corp.; Claude Beaulac, general manager, A. W. Miller Technical Sales Canada; Ray Buxton, general manager, Mazak Canada Technology Centre; and Albert LeBlanc, vice president of operations, A.W. Miller Equipement Technique. The sales team for A.W. Miller's Mississauga office includes from left to right: Nick Serniuck, Nicholas Piccione, Bob Kanarek, Eric Roell, Claude Beaulac, Frank Quattrociocchi, Daniel Medrea, Doug Holmes, and Rob DeJong.(Not in photo Darcy Litle.)

APMA conference focuses on today′s issues, tomorrow′s opportunities

The 2008 Automotive Parts Manufacturers' Association's (APMA) annual conference and exhibition will provide attendees with the information and insights needed to help them deal with the issues of today and take advantage of the opportunities available in the future.

The theme of this years' conference, "Developing 2020 Vision," is designed to provide attendees with insights and exposure to issues, strategies and techniques to help manage the risks and maximize the opportunities in a marketplace that is experiencing ongoing restructuring.

The 2008 APMA conference features new additions such as the AUTO21 Innovation Panel which is designed to "show by example" what various firms are doing in the area of innovation and new technology.

The exhibit area will feature over 60 exhibitors displaying the newest advances in industry product and process innovations. As well, the exhibit area will also offer attendees several new features including the Innovation Showcase, Ontario Centres for Excellence Collaboration Zone, and a new Commercialization Zone.

The 2008 APMA conference and exhibition will be held April 30-May 1 at the Hamilton Convention Centre, Hamilton Place Theatre, Hamilton, ON. For further information or to register for the conference visit www.apma.ca

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