STUDY: Rising Ontario Electricity Costs Destroyed Over 70,000 Manufacturing Jobs

The elites try to make the decline of manufacturing in Canada seem inevitable, but that’s far from the truth.

A new study by the Fraser Institute reveals the massive destruction high energy prices have done to manufacturing in Ontario. Here are some key parts of the report:

“Ontario now has the highest electricity costs across all Canadian provinces and among the highest costs in North America. In 2016, large industrial consumers in Toronto and Ottawa paid almost three times more than consumers in Montreal and Calgary and almost twice the prices paid by large consumers in Vancouver. Even some select large industrial consumers (Class A) that were granted rate reductions still paid higher rates than high-demand electricity users in Quebec, Alberta, and British Columbia.”

“Ontario’s manufacturing sector accounts for almost 40% of Canada’s exports, so its decline is a matter of national concern. Between 2005 and 2015, Ontario’s manufacturing output declined by 18% and employment by 28%.”

“Compared to many American and Canadian jurisdictions, Ontario has exhibited the most substantial decline in its manufacturing sector over the past decade. Between 2005 and 2016, while many Northeast jurisdictions that are Ontario’s main competitors boosted their manufacturing sector’s share of GDP, in Ontario it declined by 5.1 percentage points. Since Ontario’s manufacturing sector is lagging behind other jurisdictions, global factors such as world demand, exchange rates, and technological change cannot explain the poor performance.”

That 28% decline in manufacturing employment equals nearly roughly 74,881 lost manufacturing jobs.

The study also notes that Ontario once had low energy costs, which served as a competitive advantage. Now, Ontario is at a terrible competitive disadvantage, and the Fraser Institute points a finger at the Green Energy Act (introduced by the Ontario Liberals of course), as a key factor behind the big electricity cost increases.

Additionally, the data shows that Ontario has lost almost 2 permanent manufacturing jobs for every new job that resulted from the green-energy initiative. It’s even worse than that, since many of the green-energy jobs were temporary.

Manufacturing jobs can be brought back

A strong manufacturing sector is essential to the strength and security of any country. Being dependent on other nations for tangible items is a very vulnerable position to be in. Yet, the elites keep telling us that the loss of manufacturing jobs is inevitable and irreversible. Now, we can see the fact that government policy (particularly garbage Ontario Liberal policy), can have a direct impact on how strong our weak the manufacturing sector is. Just consider the charts below:

And here’s the consequence:


Bring our energy sector and manufacturing sector together to make Canada more prosperous

As we can see, high energy costs damage the manufacturing sector. This fact makes it clear what Canada needs to do. With massive energy reserves, we could easily have super cheap energy throughout our entire country, which could dramatically boost our manufacturing sector and strengthen our exports, making our country much more prosperous. However, that will take leadership, which we currently lack at the federal level. We need leaders who focus on strengthening all Canadian industries, not just picking and choosing industries for political gain like Justin Trudeau does. And, we need to defeat so-called “leaders” who damage their own economies with horrible policies.

Read the full Fraser Institute report here

Spencer Fernando

Photo – Fraser Institute Graphic