Hit by tariffs, Canadian tool and die makers eye opportunities in defence industry

Hit by tariffs, Canadian tool and die makers eye opportunities in defence industry PIPPA NORMAN INNOVATION REPORTER PUBLISHED 1 HOUR AGO Open this photo in gallery: A LAV 6.0 Armoured Personnel Carrier and an Armoured Combat Support Vehicle at General Dynamics in London, Ont., on July 16. CARLOS OSORIO/REUTERS COMMENTS SHARE SAVE FOR LATER Listen to this article Learn more about audio Log in or create a free account to listen to this article. Key takeaways This summary is AI-generated and editor reviewed. Learn more Canadian tool-and-die manufacturers are pursuing defence contracts as U.S. tariffs stall business in automotive, steel and aluminum sectors. Defence Minister David McGuinty hosted an event to connect major defence contractors with tool, die and mould companies. Defence won’t replace automotive volumes – manufacturers are used to making 16-to-18-million units a year for that industry, a scale defence cannot match. READ MORE Tool-and-die manufacturers in this country are seeking opportunities in Canada’s growing defence industry as business in their major markets stalls amid a worsening trade war with the United States. The automotive, steel and aluminum sectors have been especially hard hit by U.S. tariffs, and tooling companies rely upon inputs such as steel to make their products and sectors such as automotive or consumer goods to buy them. The levies range from 15 to 50 per cent and the consequent rising cost of doing business is forcing many to look elsewhere for new lines of work. In particular, they’re turning to a growing sector that’s seemingly flush with federal funds and already has a well-established presence in areas such as Southern Ontario through major contractors such as defence company General Dynamics Land Systems (GDLS), which builds military vehicles. “With this big spend and promise from the federal government in military and defence, everybody’s looking at it as an option and saying, ‘Okay, where do I fit in?’” said Louis Jahn, president of the Canadian Tooling and Machining Association. Trade war could affect defence relationship between Canada and U.S., experts warn Some of his members are already selling into defence and others aren’t interested in making the transition, he said. But for those feeling the effects of business uncertainty in the U.S. and Canada since early last year, the idea of tapping into an industry in which Ottawa is committing consistent spending over the next decade is a relatively…