DVANCED ANUFACTURING IN BRAMPTON. Economic Development Office
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1 DVANCED ANUFACTURING IN BRAMPTON Economic Development Office
2 Over 30% of Brampton s economic output is generated by the advanced manufacturing sector. With a highly diversified economy, a steady flow of welleducated skilled labour, and a strategic position in the country, Brampton s advanced manufacturing sector is a world-class powerhouse of production. The Sheridan Institute of Technology and Advanced Learning s Davis Campus is one of Canada s leading schools for advanced manufacturing and technology. The Centre for Advanced Manufacturing and Design Technologies offers top-rated technical programs geared towards the manufacturing sector. Magna Technical Training Centre, located in Brampton, is a premier skilled training centre that blends North American and European training methods and provides exceptional skilled labour for business to draw from. ADVANCED MANUFACTURING SECTOR Statistics Canada defines the advanced manufacturing sector as, being comprised of establishments primarily engaged in the physical or chemical transformation of materials or substances into new products. These products may be finished, which means that they are ready to be used or consumed, or semi-finished, which means they are becoming a raw material for an establishment to use in further manufacturing. Related activities such as the assembly of the component parts of manufactured goods, the blending of materials, and the finishing of manufactured products by dyeing, heat-treating, plating and similar operations are also considered manufacturing activities. Brampton is geared for growth. Some of the leading manufacturers in Canada that call Brampton home, include: Chrysler Canada, MDA Space Missions, Brampton Brick, Velcro Canada, Massiv Die-Form, Transcontinental and Unilever. 2
3 BRAMPTON S MANUFACTURING SECTOR The 2006 Census revealed that manufacturing, transportation and warehousing, and retail trade were the three largest industries in Brampton, based on employment. Brampton s geographic location on the west side of the Greater Toronto Area offers many benefits, including an extensive network of rail, road and air transportation, providing manufacturing companies easy access to raw materials and distribution to and from local and international markets. This robust supply chain network, along with a skilled labour force within the region, allows manufacturing companies to excel. Brampton has a healthy and diverse manufacturing sector that is comprised of the following sub-sectors: automotive, aerospace, fabricated metal products, food and beverage, and plastics and chemicals. The manufacturing sector represents about 27% of Brampton s total employment. Approximately one-tenth of the Toronto CMA s manufacturing workers (352,535 1 ) are employed in Brampton (36,735 2 manufacturing employees.) While the total number of manufacturing firms and employees is down from previous years, the average number of jobs per manufacturing facility is up from an average of 29 employees per firm in 2004, to 37.6 employees per firm in NUMBER OF MANUFACTURING FIRMS 1,200 1,162 1,150 1,100 1,096 1,064 1,050 1,016 1, NUMBER OF MANUFACTURING EMPLOYEES 40,000 39,000 38,890 38,170 38,000 37,000 36,735 36,000 35,000 34,919 34,000 33,707 33,000 32, Total Companies 2004 Total Companies 2006 Total Companies 2008 Total Companies 2010 Total Companies 31, Total Employees 2004 Total Employees 2006 Total Employees 2008 Total Employees 2010 Total Employees Source: Brampton Employment Census Source: Brampton Employment Census Brampton Employment Census, Economic Development Office. 3
4 AUTOMOTIVE MANUFACTURING Automotive manufacturing is Brampton s largest subsector in the advanced manufacturing sector. Ninetyseven percent of all Canadian light vehicle production is within a 3-hour drive of Brampton, positioning the city as a great strategic location for companies that operate in many of the secondary sectors such as parts manufacturing and distribution. Ontario is home to: Chrysler Canada Inc. Ford of Canada Ltd. General Motors of Canada Ltd. Honda Canada Manufacturing Inc. Toyota Motor Manufacturing Canada Inc. Suzuki The automotive industry in Brampton, includes Chrysler Canada s Brampton Assembly Plant. Chrysler continues to be one of Brampton s biggest manufacturers, employing 2,900 people on two shifts. Chrysler Canada has invested $1 billion U.S. in the Brampton Assembly Plant since 2008, and produces the Chrysler 300, Dodge Charger, and Dodge Challenger. Brampton s automotive industry is stimulated by a steady supply of educated and skilled labour, a strong R&D environment, a strategic location in the heart of the North American automotive industry, as well as a positive investment climate and a reputation for productivity, quality, and innovation. Major Automotive Manufacturing Companies In Brampton Company Name Total # of Employees Chrysler Canada Brampton 2,900 Assembly Plant Massiv Die-Form 781 Decoma (Plastcoat Division of Magna) 552 Matcor Automotive Inc. 400 Hydroform Solutions (Division of Martinrea Inc.) 365 Atlas Fluid Systems 304 ABB Inc. 253 Eberspacher Exhaust Systems Canada 230 Benteler Automotive 219 A. Berger Precision Ltd. 180 Cosma International Group of 130 Magna International Inc. Deco Automotive 107 Commercial Babcock 97 General Kinetics Engineering Corporation 76 Jancox Stampings 69 TI Group Automotive Systems Canada 59 Tabco Auto Brake Company Ltd. 57 Magnum Integrated Technologies (Headquarters) 40 Skills Training Development Programs for Advanced Manufacturing located in Brampton Sheridan College Davis Campus Centre for Advanced Manufacturing and Design Technologies Magna Technical Training Centre 4
5 AEROSPACE MANUFACTURING There are approximately 1,200 employees within the aerospace industry in Brampton, accounting for over 5% of all of Ontario aerospace employment. KPMG s 2008 Competitive Alternatives study reported that aerospace manufacturing costs are lower in Canada than in France, the UK, the Netherlands, Italy, Germany and Japan. MAJOR AEROSPACE COMPANIES IN BRAMPTON Company Name Total # of Employees MDA Space Missions 443 Atlantis Systems International 100 Metal Improvements Company 64 Aircraft Appliances & Equipment Ltd. 62 Ben Machine Products Co. Inc. 61 Vac Developments Ltd. 50 5
6 Fabricated Metal Product Manufacturing Fabricated metal product manufacturing is the thirdlargest sub-sector within the City of Brampton. This sub-sector employed almost 5,000 employees in 2010, which accounts for 14% of all employment in the manufacturing sector. Fabricated metal product manufacturing serves the following industries: new construction, major renovations, machinery manufacturing, and automotive. The City of Brampton currently has over 220 businesses within the fabricated metal product manufacturing sub-sector. MAJOR FABRICATED METAL PRODUCT MANUFACTURING companies IN BRAMPTON Company Name Total # of Employees ArcelorMittal Tubular Products Canada 475 The Butcher Engineering Enterprises Ltd. 274 Aluminart Products Ltd. 191 Almag Aluminum Inc. (Headquarters) 155 A.B.M. Tool & Die Co. Ltd. 150 Johnson Matthey Ltd., Refining Division 135 Atlas Bearings Corporation 135 Crosby Canada 120 Formulated Coatings 120 Tipco Inc. 111 Carbon Steel Profiles 101 Commercial Roll Formed Products Ltd. 100 BMP Metals Inc. 100 Southern Graphics Systems 93 Brannon Steel (Headquarters) 91 Can-Art Aluminum Extrusions Inc. 90 M & P Tool Products Inc. 90 Tilton Industries 80 Breyer Casting Technologies Inc. 76 Durable Release Coaters Ltd. 75 Industrial Containers Ltd. 74 Decon Studrail Inc. 68 Metal Improvements Company 64 Clayson Steel (1988) Inc. 62 Senior Operations (Canada) Limited 62 Ben Machine Products Co. Inc. 61 Gray Tools Canada 60 WG Pro-Manufacturing Inc. 60 Matalco Inc. 60 Ryerson Tull Canada Ltd. 56 Future Steel Buildings International Corporation 55 Harris Rebar 55 Metex Heat Treating Ltd. 50 Roma Fence Ltd. 50 6
7 Plastics Manufacturing Brampton s plastics manufacturing sector is the fourth-largest manufacturing sub-sector in the City. Over 4,000 people are employed within this sector. This sub-sector accounts for 11% of all employment in manufacturing in Ontario. This highly fragmented industry has many niches, determined by material type, manufacturing process, and end-use. Chemical Manufacturing In 2007, approximately 46,000 people were employed within the sub-sector of chemical manufacturing in Ontario. Approximately 5% of all chemical manufacturing employees work in Brampton. Chemical manufacturing represents 6% of Brampton s overall manufacturing sector. Over the past decade (from 2000 to 2010), Brampton s chemical manufacturing sub-sector experienced an average annual employment growth of 7%, which is strong when compared with the Canadian average of 0.9%. MAJOR PLASTICS MANUFACTURING COMPANIES IN BRAMPTON Company Name Total # of Employees Par-Pak Ltd. (Headquarters) 525 Peel Plastic Products Limited (Headquarters) 220 Valle Foam Industries Inc. 360 ABC Group Ltd. 200 Norpak Custom Packaging 184 Monarch Plastics Ltd. (Headquarters) 153 W. Ralston Canada Inc. 241 Sabic Polymershapes 150 Graphic Packaging International Inc. 144 Packall Packaging Inc. (Headquarters) 125 Rever Plastics Systems Inc. 100 Canam Plastics 2000 Inc. 84 Plastmo Ltd. 75 Matrix Packaging Inc. 70 Film Tech Plastics 56 NPI Nexcycle Plastics Inc. 54 Daniel Sharp Smart Canada 40 MAJOR CHEMICAL MANUFACTURING COMPANIES IN BRAMPTON Company Name Total # of Employees Taro Pharmaceuticals Inc. 400 Sun Chemical Ltd. 192 Canada Colors & Chemicals Ltd. 165 NCH Canada Ltd 150 Hostmann-Steinberg 143 Praxair Distribution 140 The Clorox Company of Canada, Ltd. 100 Kleen-Flo Tumbler Industries Ltd. 85 Vulsay Industries Ltd. 75 Colortech Inc. 75 Air Liquide Canada Inc. 65 Recochem Inc. 60 Para Paints 50 7
8 EMPLOYMENT IN THE ADVANCED manufacturing SECTOR EMPLOYMENT BY SECTOR IN BRAMPTON 1 5% 35% 19% 5% 5% 31% Retail Administration & Logistics Sector 44,540 ICT Sector 6,796 Life Sciences Sector 8,010 Advanced Manufacturing Sector 27,810 (excl. ICT, Food & Beverage and Life Sciences) Food & Beverage Sector 7,616 Other Sectors 51,309 Manufacturing companies benefit from Brampton s skilled and educated workforce, which includes professionals in the fields of engineering, business, and technology. Manufacturers have access to graduates from numerous first-rate post-secondary educational institutions such as the Sheridan Centre for Advanced Manufacturing and Design Technologies, located at Sheridan s Davis Campus in Brampton. Brampton also offers a large number of registered apprentices with training specific to the manufacturing sector. Over a five-year period (from 2001 to 2006) there was a strong upsurge in apprenticeships, increasing the total number of registered apprentices in Brampton by 25,505 (or 55%). Brampton s motivated labour force According to the 2006 Census, the number of members of the labour force aged 15 years and older who were engaged in manufacturing activities was 50,000 in Brampton and 900,000 in Ontario. Brampton s manufacturing labour force accounts for: 5.6% of Ontario s total manufacturing labour force 9.6% of the GTA s manufacturing labour force 45.1% of the region s (Region of Peel) 2.5% of Canada s manufacturing labour force The manufacturing sector represents about 27% of Brampton s total employment. In 2009, about one-tenth of the Toronto CMA s manufacturing workers (352,535 1 ) were employed in Brampton (36,735 2 manufacturing employees). Between 2002 and 2010, the manufacturing sector created approximately 7,000 new jobs, according to the Brampton Economic Census. Employees in the manufacturing sector are highly skilled and work mostly for the larger organizations. Approximately 80% of all manufacturing employees work for a company that has an employee base of 51 people or greater. As of 2006, 52 different types of occupations were present in Brampton s manufacturing sector. The most employable manufacturing occupation was Machine Operators (with 8,985 workers and 50% of the regional share). The second-largest manufacturing occupation was Assemblers, employing 7,660 workers with 55% of the regional share. The top 12 manufacturing occupations each employed more than 1,000 employees, collectively accounting for 85% of all of Brampton s manufacturing employment. The top 25 manufacturing occupations collectively accounted for 98% of total manufacturing employment in Brampton. 1 Source: Brampton Economic Development Employment Census, Note: The City of Brampton s total manufacturing employment is 36,735; the manufacturing sector in the pie chart has been altered to avoid double counting. Life Sciences, ICT and Food & Beverage sectors contain a proportion of total manufacturing employment within their sectors. 8
9 Cost advantage Corporate Income Tax: 8.6% cost advantage in comparison to the United States. 3 Statutory Labour Costs: 1.2% cost advantage in comparison to the United States. 3 Total Effective Tax Rate: 7.3% cost advantage in comparison to the United States. 3 Today, Canada has the lowest payroll taxes among the G7 countries. By 2012, Canada s corporate income tax rate will fall from 19% to 15% less than half that of the U.S. rate. Federal and provincial programs Brampton s advanced manufacturing sector is supported by a number of federal, provincial and local programs. These include: Apprenticeship Job Creation Tax Credit Apprenticeship Training Tax Credit Co-operative Education Tax Credit Ontario Centres of Excellence Talent Program Scientific Research & Experimental Development (SR&ED) Tax Incentive Program Advanced Manufacturing Investment Strategy (AMIS) Program Partners in Project Green CME s SMART Program Export Market Access Program Industrial Research Assistance Program MUNICIPAL PROGRAMS Municipal Approval Process Assistance Discounted Industrial and Office Development Charges Program Development Charge Exemption on Industrial Expansion KPMG Competitive Alternatives Focus On Tax, Page 22 Did you know? Ontario has the second-highest number of manufacturing employees of any jurisdiction in North America, after California. 1 According to the 2006 Census, the number of members of the labour force aged 15 years and older who were engaged in manufacturing activities was 50,000 in Brampton and 900,000 in Ontario. The City of Brampton s manufacturing labour force accounts for 5.6% of Ontario s total manufacturing labour force, 45.1% of the regional level (Peel) and 2.51% of Canada s manufacturing labour force. 1 Canada is the ninth-largest vehicle producer in the world. The automotive sector is Canada s biggest contributor to manufacturing Gross Domestic Product (GDP) and its largest manufacturing employer. 1 According to KPMG s study Competitive Alternatives, Canada s automotive sector also benefits from the country s number three spot in precision manufacturing and number four spot in electronic sectors. 2 In 2009, Shepherd Thermoforming & Packaging processed well over 1,000,000 lbs. of recycled plastic. That s equivalent to diverting more than 45,000,000 water bottles from landfill. Bacardi Canada s full line of BREEZERS rum beverages bottles are being produced at Amcor Rigid Plastics in Brampton. Chrysler Canada s Brampton Assembly Plant produced approximately 49% of all Chrysler s North American car production in Brampton s own Par-Pak Ltd. was a winner of the Plastics Stewardship Award in This prestigious award is designed to honour companies that have contributed to the enhancement of the Canadian plastic industry s stewardship and sustainability. 9
10 City of Brampton Economic Development Office 2 Wellington Street West, Brampton, ON, Canada L6Y 4R2 T: TTY: F: edo@brampton.ca
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