Canadian mouldmakers are finding a way forward

If you are a Canadian mouldmaker, the past year may have been rough for you, especially if you serve the automotive sector.

Working through the demands and at the whim of the automakers is hard. Doing it during the quarantines of a global pandemic with layoffs, slowdowns, shutdowns, and nonsensical tariffs added to the mix made the business of making parts tougher than ever.

Thankfully, some government support came in the form of the Canadian Emergency Wage Subsidy (CEWS). Manufacturers also used business loans, deferrals, the Industrial Research Assistance Program (IRAP), the Scientific Research and Experimental Development (SR&ED) tax incentive program, and the Regional Relief and Recovery Fund (RRF) to help stay afloat in those first troubling days.

Specifically for Ontario, the Ontario Automotive Modernization Program (O-AMP) enabled shops to receive support when adding new technology or lean manufacturing programs to their business. This program gives businesses up to $100,000 to help cover up to 50 per cent of eligible project costs.

It wasn’t just government that was helping the industry during this time, either.

Through this unsettled period, the Canadian Association of Moldmakers (CAMM), along with Automate Canada, and with the help of the Canadian Tooling & Machining Association (CTMA), provided guidance to mouldmakers. The CAMM/Automate Canada survey became a must-read.

Diversification was seen as a way for many manufacturers to rebound from the initial shock of the COVID-19 pandemic.

Exploring opportunities in new industry sectors, such as medical equipment, other segments of the automotive industry, aerospace, and food and beverage production, was listed as a priority, along with exporting to new markets like Mexico and South America. This data was captured from surveys conducted by CAMM and Automate Canada. CTMA assisted CAMM and Automate Canada in the distribution of each survey.

“We know our industry is resilient,” said Mike Bilton, CAMM board chair at the time of the survey. “We were hit hard, but we were ready with a strong team on our board, with Automate Canada, and with our local economic development organization. Many of our members are still struggling, some are rebounding, and some are thriving. We now are looking ahead to ensure we get back on track even stronger by applying what we’ve learned to date.”

Survey Highlights

In the most recent survey, which was conducted in late 2020, the top concerns for manufacturing were border restrictions and a return to profitability given pressures from a weakening economy.

In the monthly survey of mouldmakers and industrial automation companies, 80 per cent of respondents said they began planning for the predicted second wave of COVID-19 early and were focusing on improving profitability.

“Our survey program has allowed us to be the voice for our industries, reporting concerns and needs to all levels of government,” said Shelley Fellows, chair of Automate Canada. “The information provided to us has been invaluable in shaping our responses to this crisis.”

The association also held a webinar in partnership with the Windsor Essex Economic Development Corp. and the Canadian Border Services Agency (CBSA) that provided information on border issues to more than 100 attendees from the industrial automation and mouldmaking sectors.

“By working with community and industry partners, we’ve pulled together some amazing webinars, information-sharing sessions, and will now look ahead to how best to advocate for our members,” said Bilton.

Providing essential services for the Canadian economy, manufacturers initially halted or slowed operations and laid off large numbers of employees, using government programs like the CEWS to preserve employee numbers and protect cash flow.

According to CAMM, it took up to six months for many manufacturers to resume operations and return employees to the workplace. Many spent the time planning for doing business in a greatly altered landscape, with access to their most important export market – the United States – hampered because of border closures.

A milestone finally was achieved in August 2020 when survey results showed that 100 per cent of reporting companies said that they had resumed operations. At that time, the number of employees on temporary layoff also dropped to a six-month low, and the number of employees on furlough dropped precipitously from an average of 400 each month to under 20.

Lessons Learned

One positive that has emerged from a year of negatives are the lessons learned and best practices that have been born from the necessity of doing business during this time. Some of these are:

1. Co-operating and collaborating with other shops, especially for workload-sharing, is a good way to relieve the stress of an overworked and understaffed shop.
2. Finding efficiency improvements by using staggered shifts, which can increase unmanned machine time, and working from home in the case of some office staff and programmers/designers.
3. Improving health and safety practices has made employees feel protected by their employers, fostering employee loyalty and improving communication.
4. Using unexpected downtime to jump-start digital transformation initiatives.
5. Seeking a deeper understanding of government assistance programs.

Editor Joe Thompson can be reached at jthompson@canadianmetalworking.com.