Auto industry investing less: report
Capital investment in the Canadian auto assembly sector since the financial crisis has been nearly cut in half compared with the period before the downturn, a new report says.
DesRosiers Automotive Consultants said Wednesday that capital spending for Canada’s motor vehicle assembly industry has averaged $1.2 billion a year for 2010-17. That’s down from $2.3 billion annually on average from 2000 through 2009.
Meanwhile, the average new capital expenditures for the parts and accessories industry dropped to $565.9 million from $887.7 million for the same time periods.
“Despite small occasional increases in the period between 2008 and 2017 there has been no sustained indication of a return to the heights recorded in the mid to late 90s and late 2000’s,” DesRosiers said. “Canada’s loss of investment market share to Mexico and the southern U.S. over this period has been well documented.”
However, DesRosiers noted that investments by truck body and trailer manufacturers have increased on average from $52.7 million for 2000 to 2009 to $82.7 million since 2010.