CAMESE uncovers hidden value of mining supply and services sector

The Canadian Association of Mining Equipment and Services for Export (CAMESE) has released the findings of a new economic impact survey reveals that the mining supply and services (MSS) industry generates 60,000 jobs across Ontario and is...

The Canadian Association of Mining Equipment and Services for Export (CAMESE) has released the findings of a new economic impact survey reveals that the mining supply and services (MSS) industry generates 60,000 jobs across Ontario and is responsible for twice as much of the provincial GDP than previously assumed.

PricewaterhouseCoopers conducted the study for CAMESE based on 913 companies that considered themselves mining suppliers in 2011. From the 268 businesses that responded, the auditor was able to extrapolate figures for all of the sector..

Notably, the following points are made:

  • In 2011, the MSS sector contributed a direct impact of approximately $3.9 billion to Ontario’s GDP. Taking into consideration indirect impacts, the total contribution was roughly $6.2 billion, or approximately 1% of Ontario’s GDP

  • With 41,000 direct and 27,000 indirect jobs, the MSS sector is estimated to have contributed 68,000 jobs in Ontario in 2011

  • MSS sector companies had expenditures in Ontario of over $6.6 billion (direct impact) in 2011, which generated a further $4.2 billion (indirect impact) in spending throughout the Ontario economy, for a total impact of $10.8 billion

  • MSS jobs are estimated to have generated nearly $4.9 billion in salaries and wages.

  • Extrapolation of the economic impact results suggests that the MSS sector is expected to contribute nearly $1.5 billion in government tax revenues

  • Economic Analysis Program of the University of Toronto’s Rotman School of Management for the Ontario Mining Association (the “Rotman Report”) found that direct employment in mining was “more than 16,000”. Thus, with 41,000 direct jobs, the MSS sector provides 2.5 times the number of direct jobs as mining itself

  • The Rotman Report found that there were 7,851 “workers employed in support activities to mining.” The 41,000 direct and 27,000 indirect jobs revealed in the present survey likely capture significant MSS activities for non-Ontario mining operations by the 78% of responding companies that report earning revenues from outside of Ontario

  • The Rotman Report gives a production value of $10.7 billion, accounting for more than 1.6 % of Ontario‘s total GDP. Correcting this for the indirect GDP contribution, mining’s direct contribution is 1.3% of provincial GDP. Thus, mining supply is approximately 77% as important to Ontario’s economy as mining itself. Further, the two integrated sectors with activities within the province and including the MSS sectors’ globally activities, together total about 2.3% of GDP

  • The $3.8 billion direct contribution to provincial GDP is larger than the motion picture and sound recording industries and the information and communication technology manufacturing sector, which directly contributed $1.8 and $3.8 billion respectively to Ontario’s GDP in 2011

The report examines the role of equipment and services exports and highlights the challenges and opportunities facing the MSS.

Read a four-page Highlights of the Pan Ontario mining supply and services by clicking here.

Or click here to read the full, 62-page report.

Comments

Your email address will not be published. Required fields are marked *

Mar 27 2024 - Mar 28 2024
Apr 08 2024 - Apr 09 2024
Apr 15 2024 - Apr 16 2024
Apr 16 2024 - Apr 16 2024