Precision Machining Industry- A Canadian Impact

While we can identify over 13oo “machine shops” in Canada, here is a quick look at the impacts of 60 that we know are in the “Screw Machine Capable” Contract Manufacturing Sector. Here are asome facts we plan to share with the MP’s and Ministers when we join the Canadian Manufacturing association for their Manufacturing Day on Parliament Hill in Ottawa.

Here's hoping it's warm...

Here’s hoping it’s warm…

Precision Machining IMPACTs:

Companies                         62  *(See note below)

Employment                      1488

Shipments                           $242,524,656 (A quarter of a billion dollars!)

Payroll                                  $67,155,140

Exports markets                 Motor vehicles and parts (34.7%)

Mechanical Equipment (9.2%)

Electrical Machinery (4.0%)

Plastic Products (3.5%)

Precision Machining is an industry that produces large volumes of highly engineered components used in other manufactured goods. Best described as NAICS 332721- Precision Machining, it is often referred to as Screw Machining, based on the historic use of automatic screw cutting machines employed to make high volumes of parts.  The largest part of the industry is involved in contract manufacture of large volumes of customer designed parts. Automotive Industry is the largest industry served, accounting for over 25% of industry shipments, and this fits well with Ontario’s Top International Export  in 2012 being Motor vehicles and parts at 34.7%.

Our parts play a major role in four of Ontario’s five largest international exports-  Motor vehicles and parts (34.7%); Mechanical Equipment (9.2%); Electrical Machinery (4.0%); and Plastic Products (3.5%). (Precision machined components are often molded into many plastic parts and assemblies.)

*(Precision machine shops: In Ontario alone, PMPA has identified 62 Screw Machine capable companies. In addition we know of over 1,371 additional “machine shops.” Figures provided were limited to  the 62 contract manufacturers we have identified. Our figures, therefore, are a lower bound estimate.

Data: http://www.fin.gov.on.ca/en/economy/ecupdates/factsheet.pdf ;  U.S. Census  2011 Survey of Manufacturers Data; PMPA

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