As the newly installed chair of the Canadian Association of Moldmakers (CAMM), Saylo Lam finds himself on the front line of a battle for his members’ survival.
A confluence of pressures — looming retirements along with automakers delaying electric-vehicle production and sourcing parts from lower-cost countries — has created a crisis for the small and midsize companies that make up the backbone of Ontario’s automotive supply chain.
CAMM represents about 75 predominately Tier 2 companies that design and make molds for automotive and nonautomotive customers further up the supply chain.
“Our members are the ones who make things that make things,” said Lam, president of Circle 5, a Windsor manufacturer of precision molds.
Circle 5 has a diversified customer base, but even suppliers that aren’t solely dependent on automotive are feeling “some pause” [in business] because ofCanada’s slowing economy, he said.
Many CAMM members have been sideswiped by an EV transition that has lost momentum. Ford, for example, has postponed production of its large utility EVs at its Oakville, Ont., plant to 2027 from 2025.
The delays have rippled through the entire supply chain, exacerbating financial troubles for companies that made investments based on automakers’ initial EV plans, said Lam. “Just 12 months ago, the industry couldn’t build EVs fast enough,” he said. “The forecast was that the product flow was going to be very strong.” Suppliers “have already made those capital investments in their facilities, their workforces, but the projects have not materialized to offset those expenditures.”
At Circle 5, Lam “was fortunate to pause new spending.” He is planning new investment this year but is awaiting clarification from his Tier 1 customers on their plans.
Adding to Lam’s worries: recent comments by Stellantis CEO Carlos Tavares, who said the higher costs of building EVs will shift more of the global industry’s supply base to find the lowest price.
“I believe the industry is leaving no stone unturned to reduce costs,” said Lam.
On July 4, Lam met with officials representing federal International Trade Minister Mary Ng. He urged Ottawa to strengthen trade protections for mold makers and tooling and equipment manufacturers.
“The USMCA [United States-Mexico-Canada Agreement] does have content requirements for automotive,” Lam said. “However, that’s for assemblers. It does not talk about this subset of skilled-trade workers.”
Supply chains not protected by legislation “are completely vulnerable to competition from other countries,” he said.
The federal government is conducting consultations in July on whether to slap surtaxes on China-made EVs as well as gearing up for the 2026 review of the USMCA. Lam will be there, waving the CAMM flag.
