VIEW Fall 2023 Canada Post Mail Publications Agreement Number: 40609661 The voice of the Canadian Tooling & Machining Association What do CTMA members need to know about Canada’s transition to zero emission vehicles? THE IMPACT OF EVS5 18 CONTENTS FALL 2023 28 Try the new forum at www.ctma.com 29 OCTE recognizes Robert Cattle 30 Annual Meeting of the Cutting Tool Survey Group 31 Benchmarking tool: CTMA’s Annual Wage & Business Survey 32 CTMA holds Career-Ready Info & Networking session in Belleville MEMBER NEWS 33 Mitutoyo celebrates 50th Anniversary in Canada 34 INDEX TO ADVERTISERS 33 UP FRONT 7 A Message from the CTMA president ON THE COVER 8 The impact of EVs: What do CTMA members need to know about Canada’s transition to zero emission vehicles? FEATURES 13 2023 High School Awards recognize deserving students 18 Successful day celebrating the CTMA’s 25th Annual Golf Tournament 23 CTMA to attend 2023 ISTMA World Conference MEMBER PROFILE 25 Ontario Die International CTMA HEADLINES 26 CTMA membership continues to grow 26 CTMA members accept new member plaques 27 CTMA holds lunch & tour at the Canadian Warplane Heritage Museum 13 Fall 2023 Published For: The Canadian Tooling & Machining Association 140 McGovern Drive, Unit 3 Cambridge, Ontario N3H 4R7 Tel: (519) 653-7265 Fax: (519) 653-6764 marketing@ctma.com www.ctma.com The contributed articles presented in this magazine represent the opinions of the authors and the interviewees. Their inclusion does not directly or implicitly denote concurrence by the Canadian Tooling & Machining Association. Articles were selected for inclusion based on the issues and views of interest to the industry. Published By: Matrix Group Publishing Inc. 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Account Executives Change the rep list to: Colleen Bell, Rob Gibson, Jim Hamilton, Scott Hendren, Touhid Kahn, Frank Kenyeres, Sandra Kirby, Cheryl Klassen, Charlie Langsford, Andrew Lee, Brian MacIntyre, Caitlin Nakamura, Jaime Schroeder, Wilma Gray-Rose, Joseph Ukaoha, Julie Welsh Advertising Design James Robinson Layout & Design Kayti McDonald ©2023 Matrix Group Publishing Inc. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without the prior written permission of the publisher. The opinions expressed in this publication are not necessarily those of Matrix Group Publishing Inc. Printed in Canada. The reproduction of any articles or pictures in this publication requires the prior written consent of the Canadian Tooling & Machining Association. To request permission, please contact the association’s office by e-mail at info@ctma.com. 27 297 UP FRONT WHERE DO I START? WHERE did I start? I started with a visit with the CTMA’s executive director, Robert Cattle. Robert dropped by for a quick visit at XL Tool to let us know what the CTMA had been up to. He gave me a great update and ended the meeting asking if I would consider joining the board of directors. I remember thinking: who, me? I did not really see myself as the type to sit around the boardroom table feeling important about myself. My next thought was—maybe it was time to give back to our industry a little and maybe get out of my comfort zone and learn a few things along the way. From what I can tell you, the only way to really grow is to get out of your comfort zone. How do I wrap up four years as president of the CTMA? I can start by telling you it has been an amazing experience. Not only because I became great friends with our CTMA team, but also, I met amazing people along the way. I now have friends from Windsor to Ottawa and everywhere in-between. I’d like to add that the privilege has been all mine; from the friends I have made to the personal growth I have experienced, to being able to share CTMA’s message with audiences both large and small. Not to mention, I have become a little more politically correct, which I did not think I was capable of. I have become a better listener and an even better leader from working with a truly AMAZING board of directors. Having the opportunity to sit around a table with some of the best and brightest business owners and managers across Ontario can only make you better. The best part of all is, it did not cost me a dime. Even better, I did it for free and learned that volunteering your time for people who truly appreciate it, is an amazing feeling. Without getting into too much detail, I feel very proud of the work our team has done over the last four years. Just a few of the highlights are: supporting our members through the COVID-19 pandemic, developing great provincial government contacts, growing our membership to close to 200 members, and the number one highlight for me personally was securing funding to rebuild our manufacturing classes in high schools throughout Ontario, through the Career- Ready with CTMA: Expanding Opportunities program. This also provided many of our members with funding to hire and train people right out of high school and put them into apprenticeships. I am also proud of the High School Awards, which reward graduating manufacturing students who are getting into the trades. Robert might try to give me credit for this, but for me it was just an idea. Making it a reality was an amazing team effort by the CTMA. Thank you, Robert, Julie, Sarah, and our entire CTMA team for all your amazing support! Thank you to our amazing board of directors for all your many years of commitment to our team. I plan to stay on as a board member until such a time as our next leader needs a spot on this amazing team. Hopefully when you read this, you will consider getting more involved with the CTMA. ❙❙❙ Chris Hergott CTMA President XL Tool Inc. Just a few of the highlights are: supporting our members through the COVID-19 pandemic, developing great provincial government contacts, growing our membership to close to 200 members, and the number one highlight for me personally was securing funding to rebuild our manufacturing classes in high schools throughout Ontario, through the Career-Ready with CTMA: Expanding Opportunities program. From start to finish, this has been an amazing experience!8 ON THE COVER The impact of EVs o build a cleaner economy that fights climate change, Canada’s federal government announced late last year that it was setting a mandatory target for all new light-duty cars and passenger truck sales to be zero-emission by 2035, supplanting its previous goal of 100 per cent sales by 2040. The regulations will require that at least 20 per cent of new vehicles sold in Canada will be zero emission by 2026, at least 60 per cent by 2030, and 100 per cent by 2035. At the announcement, the Honourable Omar Alghabra, Minister of Transport, said, “Helping Canadians make the switch to zero-emission vehicles is crucial for reaching our climate goals: it keeps our air clean and helps people save money, all while positioning Canada as a leader on building cleaner vehicles. Today’s announcement is a key deliverable under Canada’s Action Plan for Clean On-Road Transportation. These regulations will help to ensure Canada can meet its ambitious ZEV sales targets, reduce pollution on our roads, and achieve net-zero emissions by 2050.” In order to reach this ambitious goal, billions upon billions of dollars are currently being invested to attract once- in-a-generation projects that will help to invigorate the Canadian auto manufacturing sector and keep good jobs here in Canada. One of the most significant investments involves the governments of Canada and Ontario working together to fund performance incentives of up to $15 billion; Stellantis and LG Energy Solutions will build an electric vehicle battery plant in Windsor, Ont. Another includes $13 billion in performance incentives to establish Germany-based Volkswagen’s first overseas electric vehicle battery cell manufacturing plant in St. Thomas. In a joint statement from the Honourable Chrystia Freeland, Canada’s Deputy Prime Minister and Minister of Finance; the Honourable François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry; the Honourable Doug Ford, Premier of Ontario; and the Honourable Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade, it was said: “As the auto sector continues to move towards electric vehicles, Canada and Ontario remain ambitious and competitive, allowing us to attract projects that will ensure our automotive sector retains global leadership in critical parts of the value chain. Thanks to concerted efforts and collaboration between the federal and provincial governments, including Ontario and Quebec, Canada currently ranks second in the global electric vehicle and battery ecosystem.” In the United States, the investments are even more profound. With a goal of making 50 per cent of the U.S. auto fleet electric by 2030, the Biden administration has called for $174 billion in government spending to boost electric vehicle (EV) production, including $100 billion in customer incentives to spur consumer engagement. Yet, while Canadian manufacturers that deal in the very lucrative automotive parts business on both sides of the border are excited about news like this, and recognize that battery-electric vehicles (BEVs) right now appear to be the future of transportation in Canada, there are still some significant questions as to what this By Paul Adair, Staff Writer What do CTMA members need to know about Canada’s transition to zero emission vehicles? “Right now, the average vehicle on the road today is 13 years old so, for the customer that buys the ICE car in 2034, that car is still going to be on the road in 2047. That means there will still be a need for aftermarket parts to support them. So, while this will be a transformation like we haven’t seen since the introduction of the car in the early 1900s, it will still be relatively managed.” —Jamie Bowman, Bowman Precision Tooling EVs CANADA’S EV GOALS • The regulations will require that at least 20 per cent of new vehicles sold in Canada will be zero emission by 2026, at least 60 per cent by 2030, and 100 per cent by 2035. These targets will help increase supply so that more Canadians who want a ZEV can buy one. • Automakers have made it clear that the transition to electric vehicles is now firmly underway. Many have set their own ZEV sales targets. According to Statistics Canada, the share of new registration of light-duty ZEVs in Canada was 2.9 per cent in 2019, 3.5 per cent in 2020, and 5.2 per cent in 2021, amounting to 86,000 vehicles. In the first half of 2022, 7.2 per cent of new light-duty vehicles sold were ZEVs. • From 2026 to 2050, Canada’s proposed ZEV sales targets are estimated to save vehicle owners $33.9 billion in net energy costs, with incremental vehicle and home charger costs of $24.5 billion. • The cumulative greenhouse gas emission reductions from 2026 to 2050 from the proposed ZEV sale targets are estimated to be 430 million tonnes, valued at $19.2 billion in avoided global damages. • Canada’s automotive sector supports over 500,000 workers, including nearly 100,000 auto plant workers in Ontario. The sector contributes $16 billion annually to Canada’s gross domestic product and is one of the country’s largest export industries.Next >