Canada Economy Overview for May 2015 – Trends and

Policies AnalysisBy: Paul Young, CPA, CGA

Automotive Sector

Automotive Production

Canada Automotive

Canada Automotive

Impact of Production change

Canada Auto Sales

Canada Auto Sales

Scotia Bank

Automotive

International Trade

Canada Exports and Imports

Canada Trade

Exports – EDC Comments

Canada Exports

Canada Exports

Trade Comments

Comments Trade/April 2015

Comments Trade/April 2015

Comments Trade/April 2015

CIBC – Trade Comments

BMO – Trade Comments

Manufacturing Trends

Canadian Manufacturing Sales

Canadian Manufacturing

Canada MFG Sales

Canadian Manufacturing

Forestry Industry

Canadian Manufacturing Analysis

Canadian Manufacturing Analysis

Canadian MFG Trends

Canadian MFG Trends

US MFG

US MFG

US MFG

PMI Index

PMI Index

Robotics

Competitiveness

Competitiveness

Freight Index

Freight Index

Trailer Sales

Housing Starts

Housing Starts - USA

Housing Starts - Canada

AG Equipment

Canada Equipment Tax Policy

Electricity Power

Electricity Power

Metal Processing Center

Commodity Prices

Commodity Index

Commodity Index

Commodity Index

Commodity Index

Iron Ore

Lithium

Copper

Aluminum Wiring

Oil Rig Count

US Oil

Oil

Oil

Crude Oil

Crude Oil

Canada Oil

Oil - China

Saudi Arabia

Machine Tool Orders

US Machine Tools

Robotic Trends

Class 8 Truck Sales

Truck Sales

Steel Analysis

Steel Analysis

Green Technology

Cleantech Index

Cleantech Index

Asia / Green Tech

US Green Investment

Other Provinces

BC• http://

www.ballard.com/about-ballard/newsroom/news-releases/news06081501.aspx• http://www.canadianmanufacturing.com/technology/enwave-ultima-

sign-yogurt-technology-agreement-148215/ • http://

www.ctvnews.ca/business/shell-led-lng-project-gets-environmental-go-ahead-from-ottawa-b-c-1.2427779

Alberta

• http://www.canadianmanufacturing.com/manufacturing/pembina-investing-125m-to-expand-horizon-pipeline-149182/• http://www.canadianmanufacturing.com/supply-chain/cenovus-to-bu

y-canexus-oil-transloading-facility-for-75m-149180/ • http://www.canadianmanufacturing.com/supply-chain/pharmaceutic

al-firm-to-invest-100m-in-edmonton-manufacturing-site-148953/

Saskatchewan

• http://www.canadianconsultingengineer.com/transportation/consortium-selected-for-saskatchewans-biggest-transportation-project/1003400421/ • http://

www.miningweekly.com/article/new-saskatchewan-carbon-capture-facility-a-global-test-bed-2015-06-19

Saskatchewan

Manitoba

• http://www.purchasingb2b.ca/1-purchasingb2b/new-flyer-lands-bus-contract-with-honolulu-144884/

Manitoba Economic Review

Ontario

• http://www.canadianmanufacturing.com/manufacturing/canpotex-orders-700-new-railcars-from-national-steel-car-150078/• http://

www.newswire.ca/en/story/1556317/aero-montreal-and-ontario-aerospace-council-oac-sign-a-strategic-collaboration-agreement • http://www.canadianmanufacturing.com/manufacturing/blight-in-b-c

-means-opportunity-for-ont-hazelnut-farmers-148921/ • http://www.canadianmanufacturing.com/supply-chain/highway-401-e

xpansion-ignores-key-design-flaws-hurts-area-businesses-149461/

Ontario

Ontario

Ontario

Quebec

• www.miningweekly.com/article/arianne-phosphate-and-quebec-first-nations-ink-cooperation-covenant-2015-06-12 • http://www.canadianmanufacturing.com/manufacturing/feds-choose

-davie-for-sole-sourced-navy-supply-ship-retrofit-150259/ • http://

www.miningweekly.com/article/paladin-energys-michelin-project-gains-federal-nod-for-foreign-majority-ownership-2015-06-22

New Brunswick

• http://www.foodincanada.com/food-business/northern-harvest-receives-8-15-million-131220/

Nova Scotia

• http://www.aecon.com/Media_Room/~1364-Aecon-Group-Inc-secures-fabrication-contract-for-OpenHydro • http://thechronicleherald.ca/business/1293835-arctic-patrol-vessels-

%E2%80%98really-have-started%E2%80%99-construction-says-irving-president

PEI

• http://www.cbc.ca/news/canada/prince-edward-island/p-e-i-government-looking-to-own-future-power-plants-1.3110178

Newfoundland

• http://www.canadianmanufacturing.com/supply-chain/newfoundlands-bay-du-nord-offshore-oil-play-faces-harsh-realities-149977/

North

• http://www.gov.yk.ca/news/15-205.html#.VYazpvlVhBc• http://www.nunatsiaqonline.ca/stories/article/65674peterson_pulls_t

he_plug_on_nunavut_mlas_green_energy_dreams/ • http://

www.northlandutilities.com/Documents/StopTheWaste/NorthlandUtilitie-Response-to-2014-Energy-Charrette.pdf

Economic Trends for Canada

Canada GDP – March 2015

Canada GDP – March 2015

Retail Sales

Retail sales by Province

Retail sales by Segment

Retail Sales - Canada

Employment

Employment

Employment

Household Debt

Wages / Canada

Global Trends

Global Trends

US Economy

Latin America

Latin America

Mexico

Currency

Currency

Corporations

Capital Spending - USA

Small Business

Small Business

Small Business

Small Business

Government Policies

Foresty Sector

• www.parl.gc.ca/Content/HOC/Committee/412/RNNR/Reports/RP8046840/412_RNNR_Rpt13_PDF/412_RNNR_Rpt13-e.pdf

Quebec Government / Security Audits

Manufacturing Policies

Pipelines

BC and Resource Management

NDP Corporate Taxation• http://www.canadianmanufacturing.com/financing/ndp-leader-mulcairs-corporate-tax-policy-needs-clarity-150026 /

• Taxation Analysis - NDP Policy: http://xfer.ndp.ca/2013/policybook/2013-04-17-PolicyBook_E.pdf

• NDP lists manufacturing:• Harper has already supports MFG via tax policies and/or grants - http://cme-mec.ca/_uploads/_media/52fqtx4b9.pdf. So, how is the NDP going to handle

tax policies? NDP talks about support for business, but says nothing on existing programs like SDTC or EDC or other programs that support seed money or loans or other tax reduction, why? http://www.slideshare.net/paulyoungcga/trade-and-investment-for-canada or http://www.slideshare.net/paulyoungcga/federal-government-programs-canada.

• Harper has no control over provinces establishing policies like carbon pricing/taxation or provincial pension plans, regulations, etc. Yet, these aforementioned programs do more harm than good to Canada’s competitive position.

• Canada already has a green economy via programs like SDTC. So, why does Mulcair not mentioned that in his statements? http://dualcitizeninc.com/GGEI-Report2014.pdf.

• FTA/Investment agreements by Harper already supports huge inflow of capital to help develop the resources and/or industry in Canada - http://www.automationmag.com/industry-news/news/4429-canada-ranks-third-globally-in-foreign-direct-investment-confidence-index/ . Yet, Mr. Mulcair does not mention that issue, why?

• Exports – Harper’s trade deal will start to provide more opportunity for business - https://globalconnections.hsbc.com/united-kingdom/en/tools-data/trade-forecasts/ca. Yet Mulcair does not mention these deals, why? http://www.canadianmanufacturing.com/manufacturing/canadas-trade-growth-to-return-to-pre-recession-levels-says-hsbc-148943/

• NDP says targeting employment tax credit, but is that not the same as what Harper is doing with EI cuts and/or training/skills options – So, how come this program is ignored by Mulcair - http://www.cfib-fcei.ca/english/article/5299-employment-insurance-helping-workers-back-to-work.html.

• NDP has transitioned programs listed, but says little how Harper has introduced programs to help business adjust to competitive pressures, why? http://saulschwartz.com/2014/12/11/the-newfoundland-fisheries-innovation-and-adjustment-fund/. NF is fighting the program as they want to use the money for other purposes. So, does the NDP support handling a blank check to the provinces without any accountability on how the money is to be spent as part of any transitioning of businesses?

NDP Corporate Taxation• NDP has social programs like EI and CPP on the list, but is less than clear what that means in terms of policies. If there is further expansion of those programs

then how will the cost be pick up? Does that mean the NDP endorses higher payroll taxes? Harper is working on training and skills development - http://www.newswire.ca/en/story/1528807/harper-government-announces-support-mine-training. NDP never makes comments on these programs, why? NDP is also less than clear on education, especially at the provincial level. It is not Harper’s fault if provinces are not putting the right focus on skills and training: http://www.plant.ca/insights/canada-needs-manufacturing-strategy/. The provinces set the educational curriculum as such why is Mulcair not calling out the provinces?

• Made in Canada solutions? How is Mulcair going to come up with value added work in Canada? Is Mulcair going to throw subsidies at business? Yet, Harper is focus on advance manufacturing that will lead to valued added work being created in Canada - http://news.gc.ca/web/article-en.do?nid=905129 http://www.marketwired.com/press-release/harper-government-supports-innovation-in-western-canada-2000280.htm

• NDP has labor laws listed, but said little how provinces have control over many areas of labor law: http://en.wikipedia.org/wiki/Canadian_labour_law or http://www.benefitscanada.com/news/ontario-to-launch-consultations-on-labour-laws-62723. So, where does the NDP stand on bringing consistency to labor laws across Canada?

• Social responsibilities – Harper continues to ensure companies live up to their social responsibilities - http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/ottawa-vows-to-protect-canada-brand-with-social-responsibility-policy/article21579511/ or How come Mr. Mulcair does not discussed the sustainable reporting already being done by companies? http://www.pwc.com/en_CA/ca/sustainability/publications/corporate-sustainability-reporting-canada-2009-en.pdf

• Overall, the NDP policies is all about riding existing policies as well as putting their own spin on policies. The ironic thing is that most of the policies in discussion by the NDP have already been implemented by Harper and/or will continue to be revisited as part supporting the economy.

• The NDP is also not being truthful on the cost of their programs as any changes to programs will have a costs. So, where is the fully-costed analysis from the NDP? It seems to me NDP is just throwing out policies without truly understanding either the cost impact and/or the risk to business as part implementing changes in policies!

•

Corporate Taxation