Automotive & Mobility
The automotive and mobility industry is going through a major transformation which will not only guarantee a complete makeover of businesses, but also of the society, globally. This significant transformation is mainly due to the growing influence of electric, autonomous and connected vehicles. Lucrative opportunities are accessible more than ever and establishing in the right markets is imperative to convert these opportunities into sustainable & profitable revenue streams.
The Automotive industry in Canada & favorable factors
Canada's automotive industry has the largest concentration of car assembling and designing/R&D centers in North America. They are one of the biggest industrial sectors, representing 23% of manufacturing trade and 10% of manufacturing GDP. Canada has the most minimal expense structures and the lowest business taxation burden among progressed economies, with a general expense benefit of 4.5% over Japan and 8.2% over the U.S. in the automotive manufacturing sector. As indicated by KPMG Competitive Alternatives, the auto parts activities in Canada generally partake in 31% labor cost advantage as compared to their U.S. based partners. Companies like Apple, ABB, Ford and General Motors have invested significantly in Canada to build up their R&D centers in self-driving vehicles, and are working intimately with A-list colleges for the research work. Having more than 100 years as an auto-producing country, Canada has a well-established automotive infrastructure and an incredible record of performance. Canada offers international investors incredible plant and labor quality. Canada’s assembly plants has won 33% of all J.D. Force plant quality honors for North America which comprises nearly thrice the Canada’s share of regional production.
Automotive Industry in the United States & Potential Opportunity
Under CUSMA, Canada enjoys special access to one of the world’s biggest and most significant automotive markets i.e. the United States, which is also the second largest market in the world for vehicle sales and production. Every large European, Korean and Japanese automaker has invested more than $75 billion in the U.S. in the automotive industry; the first being Honda in 1982. The automotive industry is at the forefront of innovation, with its R&D initiatives transforming the industry for the opportunities of the 21st century. As per the Auto Alliance, US$105 billion spent on R&D in the world is spent in the United States. It has a broad network of auto parts providers serving the business. With its open venture policy, an enormous buyer market, an exceptionally skilled labor force, accessible infrastructure, local and state government incentives, the United States is the premium and primary market for the 21st-century automotive industry.
The Prescot & Lynn Advantage
Canada's automotive supply base is best in class and it has a profoundly gifted labor force fit for giving quality and efficiency. Canada's well-established qualities in automotive, information and communications technology (ICT) come together to make it an excellent area to create and construct the connected, autonomous and safe vehicles of tomorrow. It is important to have an experienced panel of experts such as Prescot & Lynn as partners who can help your business navigate through the rapidly changing global markets. With more than two decades of experience in managing several international business and the ability to leverage an extensive network of global experts, Prescot & Lynn can help you reach the full potential of your business and ensure that your business is future-ready and in a position to take advantage of new opportunities.