Transportation Equipment Industries - ARCHIVED

The latest issue contains the article "The transportation equipment industries in Canada, 1985 - 1997 - A review of change". The transportation equipment industries are the largest industrial manufacturing group in Canada representing more than a quarter of the total value of manufacturing shipments in 1997. They include the manufacturing of a diverse range of products, ranging from aircraft to ships to automobile assembly to vehicle parts and accessories manufacturing. As well, the manufacturing activity also includes repairs to aircrafts, boats and ships.

Since 1985 these industries have experienced sustained growth in terms of total shipments as well as the number of workers employed. The hourly wages paid to workers are much higher than the average hourly wages for all manufacturing. The gap between the hourly wages of the workers in the automotive industry and the rest of the workers in the transportation equipment industry has been widening considerably since 1985.

The auto industry has weathered free trade with the United States without suffering the job losses or decreasing productivity that some analysts predicted before the agreement took effect. In fact, productivity has increased, as have incomes.

Over 70% of the output was exported, mostly to the United States. Given the sustained prosperity that the United States has enjoyed for more than a decade now, it is not surprising that the Canadian transportation equipment industries have also performed well.