VIEW Spring 2025 Canada Post Mail Publications Agreement Number: 40609661 The voice of the Canadian Tooling & Machining Association Finding strength in uncertainty Canada in transition: 5 CONTENTS SPRING 2025 UP FRONT 7 A Message from the CTMA president FEATURES 8 Canada in transition: Finding strength in uncertainty 11 Where EV growth and U.S. relations hit the road 13 Your guide to performance improvement MEMBER PROFILE 14 Eclipse Automation CTMA HEADLINES 16 Welcome to the new CTMA members 17 New members receive their plaques 17 CTMA Members’ Forum 18 Building business resilience in uncertain times 19 Cambridge Chamber of Commerce hosts Good Morning Breakfast 20 Event at the Empire Club talks tariffs and Trump 20 CTMA’s Controlled Goods webinar was a hit 21 KBC Tools & Machinery celebrates 60th anniversary, Founder’s Day 22 INDEX TO ADVERTISERS 18 Spring 2025 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. Return all undeliverable addresses to: 309 Youville Street Winnipeg, Manitoba R2H 2S9 Toll-Free: (866) 999-1299 Toll-Free Fax: (866) 244-2544 www.matrixgroupinc.net Canada Post Mail Publications Agreement Number: 40609661 President & CEO Jack Andress Operations Manager Shoshana Weinberg sweinberg@matrixgroupinc.net Senior Publisher Jessica Potter jpotter@matrixgroupinc.net Publishers Julie Welsh, Christine Scarisbric Editor-in-Chief Shannon Savory ssavory@matrixgroupinc.net Editor / Social Media Manager Jenna Collignon Finance/Administration Lloyd Weinberg, Nathan Redekop accounting@matrixgroupinc.net Director of Circulation & Distribution Lloyd Weinberg distribution@matrixgroupinc.net Sales Manager Jeff Cash Matrix Group Publishing Inc. Account Executives Colleen Bell, Jackie Casburn, Chandler Cousins, Rich Cowan, Rob Gibson, Jim Hamilton, Frank Kenyeres, Sandra Kirby, Andrew Lee, Brian MacIntyre, Chad Morris, Lynn Murphy, Wilma Gray-Rose, Monique Simons, Joseph Ukaoha Advertising Design James Robinson Layout & Design Kayti McDonald ©2025 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. 8 21 1167 UP FRONT GROWING UP AS THE SON of a war refugee, my father never threw out anything. When he passed, he left behind two barns and a basement full of what I would classify as “useless” pieces of steel, old motor parts, various oddball machine parts, rusty tooling, and the list goes on. I’m certain many of you can relate to my upbringing and you can still remember your parents saying: “vee might need zat von day and youa keets will be glead I keep it” (my father was a German immigrant). The reality is that probably less than two per cent of their precious lot was put to use, but instead, continued to rust and rot; not to mention being a tripping hazard and taking up valuable space where I could have parked my cars, snowmobiles, and motorcycles. Keeping the junk was a constant pain but in reality, his thought pattern was definitely not flawed. His life experiences taught him to prepare for a downturn. I was always frustrated seeing the junk, but I did recognize the valuable life lesson and have always incorporated it in both my personal and business life to this day. There is no shortage of university and college business courses, seminars, consulting firms, self-help books, and autobiographies by extremely successful entrepreneurs who are extremely qualified to provide you with the baseline framework to run a successful organization. If you really want to read a great book, check out Shoe Dog: A Memoir by the Creator of Nike by Phil Knight. Since the beginning of recorded history, one of the fundamental truths you can always count on is that with the economy—nothing is constant and there will always be ups and downs. These peaks and valleys are as sure as both death and taxes. It is not a matter of “if” the economy will dip, but it is a matter of “when”. In the past 25 years, we have experienced the dot com implosion in 2000, pushing the world into a recession and then recovering only to be followed by the 2008 housing bubble bursting, causing a global financial crisis. The markets eventually recovered, peaking again on April 23, 2015, only to crash again on Feb. 20, 2020, due to the COVID-19 pandemic. Less than five years later, we find ourselves in the throes of a worldwide market slowdown caused by the U.S. Administration’s tariff initiative. In less than 25 years, we’ve faced four catastrophic economic events caused by four entirely different reasons. I doubt your local soothsayer’s crystal ball could have predicted these outcomes. During each event there were a lot of casualties because businesses did not have the financial strength to make it through the valley and up the hill again. With this knowledge that there will always be peaks and valleys, how will you maintain your financial position to survive these events? I’m sure we all agree that often it takes risks to achieve rewards. These risks come at a cost and as I’m not much of a gambling man, I try to keep my risks in check. I take them, but still prepare for the worst should it happen. I run my business from valley to valley and not from peak to peak. As a very successful business operator and friend of mine says, when the economy is rolling along at the peak, “anybody with a pulse can run your business as you rake the purchase orders off the front lawn.” Thriving at the peak when the economy is in high gear is almost a no-brainer, but surviving as you go through a valley takes forward planning. I hope I see all of you at the close of 2025, and in the meantime, watch your spending and keep your head up. We’ll get through this. Eventually it will sort itself out and then you can go home, pour yourself a drink, and crank up the Cars 1978 hit: Let the Good Times Roll. ❙❙❙ Louis Jahn CTMA President Jahn Engineering Ltd In less than 25 years, that’s four catastrophic economic events caused by four entirely different reasons. I doubt your local soothsayer’s crystal ball could have predicted these outcomes. Let the good times roll! &Dinner ANNUALGENERALMEETING Keepaneyeonyour inboxformoredetails comingsoon!8 FEATURE anada’s tooling and machining sector has long benefited from a strongly integrated trade relationship with the United States (U.S.). For more than a century, manufacturers in Canada have been able to claim one of the largest trading relationships in the world and, despite some bumps in the road, this has been a relationship that has proven fruitful on both sides of the border. However, following the new administration’s arrival in the U.S., this relationship has become more complicated as manufacturers have been hit hard by the significant uncertainty as to what impact tariffs—and an impending trade war—will ultimately have. This uncertainty has already resulted in job losses for many companies and has heavily impacted sales, especially for those companies that do significant business in the U.S., or those with heavily integrated supply chains with Canada’s southern neighbour. The Business Development Bank of Canada (BDC) supports small- and medium- sized businesses (SMEs) across all industries and at every stage of growth. By providing financial assistance and expert advice, BDC helps entrepreneurs take their businesses further. In Ontario, the BDC places a strong emphasis on the automotive industry. For the past decade, it has maintained a dedicated team and strategy focused on supporting this vital sector. “Many of the entrepreneurs we speak with are currently taking a ‘wait and see’ Finding strength in uncertainty Canada in transition:9 approach when it comes to their decision-making,” said Tyson Jones, senior vice president for BDC in Ontario. “They are being forced to make many impactful decisions in the face of the tariff threats, which are—quite frankly—one of the most significant challenges ever faced the Canadian economy.” Like BDC, Export Development Canada (EDC) has also been actively engaging with industry stakeholders, including those in the manufacturing sector, to better understand their needs and determine the best ways to support them. “When it comes to manufacturing, we know that the sector will be hard- hit,” said Mike Brownhill, commercial account director at EDC. “Canadian manufacturers with significant exposure to the U.S. market are likely to become less competitive as their goods become more expensive for Americans to import. Manufacturers also tend to have a higher level of imported content as part of their operations or products and would be hit by a weaker dollar when purchasing these inputs from the United States.” EDC also believes that demand for accounts receivables insurance will likely increase to help manage risks associated with non-payment from foreign customers of Canadian manufacturers, as there is an increased risk of products not being accepted by customers and of tariffs causing cash- flow-related disruptions. In addition, some manufacturers may need greater working capital to manage existing contracts, a potential decrease in U.S. sales, or volatility in the Canadian dollar exchange rate. “EDC anticipates that many manufacturers will look to expand their operations, re-direct their inputs to new industries and sectors, and, in some cases, diversify their markets and their supply chains to mitigate the impact of the tariffs,” said Brownhill. NEVER LET A GOOD CRISIS GO TO WASTE While this current situation is unprecedented, Canada does have a good track record of navigating major economic disruptions over the last few decades, including the Great Recession of 2008- 09, the COVID-19 pandemic, and even an earlier round of tariffs imposed by the first Trump administration, and came through stronger because of it. “Over the last 80-plus years working with Canadian entrepreneurs, BDC has come to recognize the immense resiliency within the nation’s business community to navigate any crisis that comes forward and has helped them to push through trying times like the ones we face today, with financing and expert consulting services,” said Jones. Given the ability of industry to weather the economic storms from wherever they may blow, Canada is well positioned to further enhance the resilience of its manufacturing sector, especially in the face of this most recent crisis. For its part, EDC is well adept at managing economic difficulties and is, in many ways, built for this purpose. “We were established to help Canadian companies grow their business through export trade following World War II and we have navigated major economic disruptions since then over our 80-year history,” said Brownhill. “Therefore, we can draw on numerous experiences and lessons to navigate this new situation and support Canadian companies during these challenging times.” So, even though the days ahead may seem dark, there is some light in the distance, as well as some ‘silver linings’ in the situation Canada currently finds itself. Canadian exporters across various sectors are more and more expressing an interest in exploring new markets and are seeking out new strategies for entering them. Trade diversification has long been a focus for EDC to help Canadian companies seize the breadth of opportunities that are out there, and there is now momentum for Canada to diversify its trading relationships, as it is necessary for the nation’s long-term competitiveness. That said, for Canadian manufacturers it may be more difficult to pursue far-flung markets given the nature of the business, but that doesn’t mean that they cannot think a bit beyond the U.S. By expanding their customer base and international reach, manufacturers can reduce market concentration risk and enhance their resilience. Canadian companies today have an unparallelled level of market access through 15 free trade agreements with 51 countries. These include the Comprehensive Economic and Trade Agreement (CETA) with the European Union, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 10 countries in the Indo-Pacific. Moreover, Canada has a free trade agreement with every country in the G7. “While the U.S. will remain a top trading partner, we need to get serious about becoming more resilient by diversifying,” said Brownhill. “But diversification to new markets does not happen overnight. Time and patience are required, as well as front-end research for manufacturers to understand the human and financial resources, the relationships, and the requirements regarding regulatory, taxation, and customs to enter those global markets of opportunity.” Another silver lining lies with innovation, as the uncertainty and the impacts of the tariffs could potentially push Canadian certainty ansition:Next >