Fraser Institute study suggests Ontario could learn from MichiganClick image to enlarge

A new study from The Fraser Institute says Ontario’s manufacturing sector could take a growth lesson from its close U.S. neighbour Michigan.

The Fraser Institute singles out southwestern Ontario, the province’s – and the country’s – manufacturing heartland, which it says has been badly battered in recent years. The Institute points out that while Ontario’s manufacturing sector has been suffering, some other manufacturing-intensive jurisdictions have been thriving, including Michigan.

“While Ontario’s manufacturing sector has largely languished (despite some recent positive developments), Michigan’s has rebounded sharply from the nasty 2008/09 recession,” says The Fraser Institute. “The comparison invites a closer look.”

While prior to 2011 Ontario outperformed Michigan on key economic indicators, in 2011 the pattern started reversing, and since then Michigan’s economy and manufacturing sector have outperformed Ontario’s.

The full study is worth a look, but in a few words, there are three things Michigan has done that Ontario should consider:

  • corporate income tax reform;
  • reduced government spending; and
  • “right-to-work” legislation.

At the same time, the study says, Ontario raised personal income taxes, suspended a planned corporate tax reduction and significantly increased labour regulations, including a higher minimum wage.

“Michigan’s economic turnaround has coincided with its comprehensive pro-growth policy reform initiatives,” says The Fraser Institute. “The [Ontario] Ford government should consider similar reforms—and quickly.”

You can read more here.

Bombardier forecast: 24,000 deliveries; $626 B revenue

Bombardier sees a bright horizon for its business aircraft business. It predicts it will deliver 24,000 jets worth $626 billion in its 20-year industry delivery forecast.

Grinding Know-How

For Mike Truic, CNC grinding operator at Northstar Aerospace, the grinding seminar hosted by United Grinding and its Canadian distributor Machine Tool Systems Inc., is a must-attend event.

CMTS Highlights: Sandvik Coromant "Smart Hub"

In the competitive cutting tool industry, suppliers need to set themselves apart from the competition.

Terry Yamazaki In His Own Words by Ray Chalmers

In October 2011, I became aware of Terry Yamazaki's death. The chairman of Yamazaki Mazak Corp., his obituary (he died September 15, 2011, at the age of 82) was carried on Mazak's website and in the October issues of many North American metalworking magazines.

Stay In Touch

twitter facebook linkedIn