3 takeaways from Linamar's $500M expansion
Linamar's plant in Guelph is set to receive $100M in funding thanks to a partnership between the federal and provincial governments. Linamar is also investing $400 million of its own money to create 1,200 new jobs at its facility over 10 years. The money will also enable the company to produce new, more environmentally friendly transmissions.
CBC Kitchener-Waterloo spoke to three different people who have followed the developments closely about what the funding will mean for manufacturing in Guelph and the rest of the province.
Amy Kendall - Chair of the Board, Guelph Chamber of Commerce
"I think it's exciting news for Guelph and the manufacturing sector within Guelph specifically, but also for the workforce. It's opportunity for new jobs, manufacturing has been strong in Guelph throughout, so this just supports what's already been happening and helps us build on it. [...] We have over 350 advanced manufacturing companies in Guelph employing about 22,000 people."
Tony Faria - Co-director, Office of Automotive and Vehicle Research, University of Windsor
"I certainly hope that it's sending the message that the government is going to strongly support investment initiatives in the automotive industry. The automotive industry in North America had a solid year in 2014.
"Almost all new assembly capacity in North America is going to the southern U.S. and Mexico, and that means for Canadian parts makers we are farther and farther away from what is becoming the centre of the North American auto industry. Canadian companies through opening new facilities in the southern U.S. and Mexico certainly are benefiting corporate wise, but that's not creating very many new jobs in Canada."
Hamid Noori - Professor, School of Business and Economics, WilfridLaurier University
"The government is demonstrating that although other sectors and segments of the economy are important, manufacturing is just as important and there are very good reasons for manufacturing to stay in Ontario. [...] This announcement is really good for people in Guelph and the Ontario as a whole for sure."