Southwest Ont. trucking sheltered from US slump: Study

LONDON, Ont. — If you’re hauling autoparts south of the border you might not believe it, but a study by a pair of Western University professors suggests that southwestern Ontario industries have been able to deke past the crashing U.S. economy.

The region has been somewhat insulated by the economic slump stateside mainly because of strengthening ties within Ontario, particularly the greater Toronto Area, write Guy Holburn and David Conklin of Western’s Ivey School of Business.

According to Sun Media, the six-month study unexpectedly reveals that commercial trucking patterns indicate that a large majority of southwestern Ontario trade stays within southern Ontario’s borders.

Less than 29 percent of the region’s truck freight goes south, the two authors told a group of 150 regional mayors and economic development officials today.

The authors acknowledged that specific sectors are hurting as a result of the U.S. economy, especially automotive, which is dependant on southbound trade.

While Michigan is largest market for automotive exports, surprisingly, researchers found that auto trade to California is growing.

Southwestern Ontario provides about 30 percent of all Canadian automotive jobs, but, the study notes competition from low-cost countries like Mexico and eastern Europe will continue to be a growing threat.

 


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