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The Canadian tool, die and mold making industry had sales of $1.2 billion in 2002 that dropped by 40+% in the ensuing decade as manufacturing moved offshore in search for lower labor cost. Trade tensions, conflicts (Ukraine/Russia; Taiwan/China etc.), COVID pandemic and accompanying supply chain disruptions, increase in labour cost overseas, improved automation technology and rising transportation cost have eroded the advantage, and the Canadian market is once again on a growth trend predicted to reach $128 billion. The growth is fuelled by novel ways of machining to reduce production cost and increase productivity, greater employment, and higher wages (Cook, 2022) . Furthermore, transportation and labour accounts for 45% and 32% of the logistics cost and its reduction with reshoring is advantageous. A Canadian study, conducted by Deloitte Economic Advisory, identified Machinery manufacturing as a hotspot for reshoring. An estimated five to seven jobs are created in related industries for every job reshored in the manufacturing sector (Cook, 2022); an additional boost for Canadian employment. However, lack of skilled labor, manufacturing knowledge and lack of interest among youth in this domain is a challenge.
The focus of this, university/industry, partnership is on developing automation technology that assists operators during machine programming and by detecting and avoiding anomalies during machine setup and machine operation.
Sanjeev Bedi
Elliott Matsuura
Engineering
Manufacturing
University of Waterloo
Business Strategy Internship
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