ProfileoftheAutomotiveSectorPreparedfortheExpertPanelonSkillsbyDanO’Hagan1999AdvisoryCouncilonScienceandTechnologyConseilconsultatifdessciencesetdelatechnologieSUPPORTINGDOCUMENT3PROFILEOFTHEAUTOMOTIVESECTORAdvisoryCouncilonScienceandTechnologyExpertPanelonSkillsiiThispublicationisalsoavailableelectronicallyontheWorldWideWebatthefollowingaddress:http://acst-ccst.gc.ca/skillsThispublicationcanbemadeavailableinalternativeformatsuponrequest.ContacttheInformationDistributionCentreatthenumberslistedbelow.ThisdocumentispartofaseriesofresearchdocumentsthatconstitutebackgroundmaterialforTheReportoftheExpertPanelonSkills.Foradditionalcopiesofthispublication,availableonCD-ROM,pleasecontact:InformationDistributionCentreCommunicationsBranchIndustryCanadaRoom205D,WestTower235QueenStreetOttawaONK1A0H5Tel.:(613)947-7466Fax:(613)954-6436E-mail:publications@ic.gc.ca©HerMajestytheQueenintheRightofCanada(IndustryCanada)2000Cat.No.C2-467/2000-28E-INiiiAbstractTheautomotiveindustry,includingvehicleassemblyandpartsproduction,isakeycomponentoftheCanadianeconomy,contributingabout12percentofmanufacturinggrossdomesticproduct(GDP),providingroughly160000jobs(1997figures)andgeneratingalargesurplusoninternationaltrade.TheindustryisthelargestsingledestinationofcapitalinvestmentinplantandequipmentinthetotalCanadianmanufacturingsector.Theindustryfacesanumberofchallengesincomingyears,includingeconomicandmarketpressuresresultingfromtheglobalizationofproduction,andtechnologicalissuesfromtheneedtoreducefuelconsumption,vehicleweightandenvironmentalimpacts.Theindustryiscopingwellwiththeseeconomicandtechnologicalissues,andcontinuestogrow,thoughitwillneedtoaddresstwochallenges.ThefirstistoretainitsproductivityandcostadvantageintheassemblysectoroverU.S.productionfacilitiesthatleadlargeautomakerstomaintainhighlevelsofinvestmentinCanada.Thesecondistoensurethatlevelsofdesign,researchanddevelopmentcapabilityinthepartssector,especiallytheTier2partssector,arehighenoughtoensureacontinuingflowofsupplycontractsfromtheTier1companiesandthemajorvehicleassemblers.Bothofthesechallengesrequirethattheindustrymeetitscriticalskillsneeds.Intheassemblysectorandthelargerpartscompaniesthekeyissuesareindesignandresearchanddevelopmentactivities,andindealingwithimpendingshortagesinarangeofproduction-relatedspecialties.Thismeansreplacingthelargenumbersofskilledworkersandproductionspecialistssuchasengineerswhoarelikelytoretireoverthenexttwotosevenyears.Forthesmallerpartscompanies,thechallengeistomaintainorraisetheleveloftechnologicalsophisticationanddesigncapabilitytoensuresustainedsourcingopportunitieswiththeassemblyandlargerpartscompanies,andpositionthemtogrowintocompletesystem(Tier1)suppliers.Bothindustryandeducationalinstitutionshavebeguntofilltheseskillsneeds,witharangeofco-opandfull-timeprogramsdevotedtoskilledtradesandtechnologiesaswellastomanagerialandrelatedskills.Whetherornottheseinitiativeswillbesufficienttodealwiththeindustry’shumanresourceneedsoverthenextdecaderemainstobeseen.ivContentsAbstract..............................................................................iiiINDUSTRYSECTORCHARACTERISTICS.................................................1TheChallengeOftheFuture..............................................................1EconomicandMarketPressures...........................................................1Re...
