Canadian auto-parts companies employ more people in the United States and Mexico combined than they do in Canada, according to a new report by a trade group that intends to use the findings to influence U.S. lawmakers ahead of any NAFTA talks.
The report, by Canada’s Automotive Parts Manufacturers’ Association, may provide ammunition for industry and government officials to argue against a proposed U.S. border adjustment tax and any potential tweaks to the North American Free Trade Agreement deemed detrimental to Canada.
The “Canadian Supply Footprint,” compiled by the APMA in March, shows Canadian parts makers employ about 86,000 people at 270 facilities in the United States and Mexico. At home, suppliers employ 71,000, the report said without providing a facility count.
APMA’s members voluntarily completed the survey. The association also obtained data through various public and private sources, meaning the final total encompasses data from member and non-member manufacturers alike.
The APMA included sites or facilities listed as a manufacturing facility, some of which included r&d work on site. Standalone sales offices and individual research centres, for example, were excluded.
The report will be presented to Canadian and U.S. politicians prior to any renegotiation of NAFTA. The association’s hope is to convince lawmakers in all three NAFTA countries that changes could hurt the industry.
The APMA went so far as to identify U.S. Congressional districts that hold factories owned by Canadian suppliers and how many local jobs those facilities create.
The data show that 31 Canadian companies operate 150 manufacturing facilities that employ 42,800 people in the United States. By comparison, 64 Canadian companies have 120 facilities that employ 43,500 people in Mexico.
“The final numbers tell a story of the great reach of Canadian auto supply investment outside of Canada,” the APMA said in a statement.
APMA President Flavio Volpe previously told Automotive News Canada that parts makers are attempting to show the United States, in particular, that Canadian companies are true partners when it comes to the auto sector and NAFTA.