The world business geography
comprises various geographical theories that influence the physical location of
production processes, the flow of commodities and the necessary factors of
production in the different business regions. It is for these reasons that
countries in the world have different economic patterns. Canada, for example,
specializes in three main industries; service, manufacturing, and natural
resource industries. However, this paper seeks to analyze the impact of world
business geography on Canada’s manufacturing industry.
History of
Manufacturing Industry in Canada
The manufacturing industry in Canada
came into existence in the eighteenth century. The first kind of processing was
brought about by the introduction of the gristmill used in the grinding of
grains into flour for human consumption (Hon et al, 2017). The first plant was in New France
and as time progressed, there were more establishments of gristmills both in
Upper and Lower Canada to serve the growing demand for flour in the domestic
and foreign markets. The idea paved the way for business globalization in the
region. Automobiles sector developed in the 1730s during the invention of iron
smelting and the creation of the first steamboats and their engines. Later, a
manufacturing plant was put in place to perform large scale manufacturing of
automobiles to serve the growing economy in the region.
The 19th century was
marked with greater developments in the industry- with most of them attributed
to the favorable political environment and the type of governance. The
political environment depicted unity and self-governance allowed the Canadian
government to make its decisions independently. The 1867 confederation paved the
way for geographic business expansion both within and outside Canada. The
Canadian Pacific Railway is another factor that harnessed the mobilization of resources
such as capital, raw materials and human power and skills (Balakrishnan, Eliasson and
Sweet, 2007). The Canadian Manufacturers Association (CMA) was also
another development in the century that enhanced the growth of manufacturing
industries in Canada.
The 20th century,
however, was different in terms of developments in the industry as well as the
increased global competition from economies such as Japan, China and the US (Easterbrook, 2019). It
was also characterized by numerous agreements with different states to enhance
trade freedom through tariffs. Such
trade policies affected manufacturers in Canada as it facilitated business
globalization across the regions where the policies touched. One of them was
the Canada-US Automotive Products Agreement- this agreement sought to create a
duty-free trading association between Canadian and US economies (Ankli and Frederiksen, 2009).
The other regulatory policies paved the way for the Canadian manufacturing
industry to gain a competitive advantage in the world business geography (Balakrishnan, Eliasson and
Sweet, 2007).
Geographic
Differences in Products
The production of manufactured goods
differs from one geographical location to another within Canadian economic
territories. The variation is attributed to the availability of the raw
materials, capital and the required levels of skills (Henri and Journeault, 2008). The most prominent
manufacturing industries in the region include food and beverage, chemical,
petroleum and automobile industries. The industries producing the different
kinds of products are profiled depending on the importance they bring to the
said regions in terms of workforce and contributions to the country’s overall
economy. Therefore, each geographical location tends to have distinct sources
of opportunities and challenges. The paper will draw the geographical
differences in products from the major manufacturing provinces in Canada. These
are British Columbia, Ontario, Quebec, and Saskatchewan.
British Columbia province is known
for its massive production of wood products. This characteristic makes it a
convenient place for wood processing industries. Wood Paneling manufacturing is
the main product in the region having been known worldwide as the largest
exporter. The region also provides an epicenter of wood production in Canada as
it is located in a resource-based economy (Bewley and Li, 2000). The availability of large
supplies of lumber makes it attractive for the operators in the industry to put
up sawmills within the province of British Columbia. Apart from the
availability of resources, British Columbia’s strategic location makes it
suitable to access the markets in the United States and around the world. Its
ports are ideal for easy transportation of exports to the outside markets (Grace, Nelson, and Kozak,
2018).
Ontario is a host for many
industries in Canada. These industries are not limited to plastic manufacturing
and automotive industries. The province relies heavily on plastic manufacturing
that complements the automotive sector. The plastic products are used in the
interior construction of cars in the region. The strategic geographical location
of Ontario is attractive to car manufacturers for raw materials and market
access through its ports (Agur,
2016). For instance, the province hosts the headquarters of the three
major car manufacturers of the United States of America. These manufacturers
are the Ford, General Motors and Chrysler. Also, the availability of skilled
manpower from the population in the region adds to the attractiveness of the
province to foreign investors (Deyo,
2016).
Quebec province is known for its
aerospace products manufacturing. The province traces the role back to the
early 20th century where it served as an aviation market (Froe and Boyer, 2019).
The region’s most prominent industries are those dealing with the manufacture
of aircraft and their assembling parts. The statistics from Canadian revenue
state that Quebec produces up to 23 percent of the country’s total aircraft
establishments (Moshiri,
2016). The attractiveness of the province to the manufacturers is
attributed to the attractive tax incentives offered by the government to the
operators in the industry. The industry is also supported by various academic
and technical institutions in terms of innovation and advancement (Taner, Skyllas-Kazacos and
Houle, 2019). The province also plays a great role as the economic
powerhouse of Canada- hence attracting all kinds of industry developments.
Unlike the previously discussed
provinces, Saskatchewan is the hub of farming- both agricultural production and
cattle rearing. The province constitutes 41 percent of the total arable land in
Canada. The major types of crops in the region are barley wheat and oat. It is
due to the presence of farming that the province has had increased
manufacturing of agricultural machinery such as tractors (Agur, 2016). One of
the notable farming machines manufacturers is the Deere Company which
constitutes a third of the country’s total revenue from the agricultural machinery
manufacturing sector. Animal farming in the region has also led to the
development of animal products processing industries (Elena and Pavel, 2018). The products being processed
are the meat products from both beef and poultry farming prevalent in the
region.
Key Firms in
Canadian Manufacturing Industry
The manufacturing industry in Canada
has attracted both domestic and foreign investments due to its unique features
in terms of resource availability and geographical location (Nguyen, Séror and Devinney,
2007). The automobile sector is the leading sector with most of the
firms being internationally recognized. For instance, the province of Ontario
hosts the headquarters of the three major car manufacturers of the United
States of America (Bloomfield,
2017). These manufacturers are the Ford, General Motors and Chrysler. It
also hosts the Toyota Lexus plant and also the Honda manufacturing plant. Also,
the country’s agricultural achievements have made it possible for most
agricultural machinery manufacturers to settle in the place. The Deere Company,
the world’s most prominent agricultural machinery manufacturer, found its place
in one of Canada’s provinces, Saskatchewan (ElMaraghy, 2011). In Quebec province, for instance, the
world’s major aircraft manufacturers established their manufacturing plants. Bombardier
is among the aerospace companies that form the Canadian manufacturing industry.
Canada’s availability of highly skilled labor force and the robust trading networks and business agreements make it an ideal location for manufacturing. The country draws its strengths from the automotive sector in Ontario and aircrafts manufacturing in Quebec. The success of these industries is attributed to the meaningful trading relationship between Canada and the United States (Fayerweather, 2017). It is to say that the future of the manufacturing industry in the region will depend on how far it will go with the already established business network. Also, technological innovations in the global business will be instrumental in the future growth of the manufacturing sector in Canada as it has been in the present day (Andreoni and Chang, 2016). The government of Canada together with the Canadian Manufacturers and Exporters have structured a strategic plan that aims at enhancing the manufacturing sector (De Sousa, 2006). The plan acknowledges the contribution of the sector in the country’s revenue, employment creation, and enhancement of the business environment. The industry 2030 plan is pegged on three key objectives that will stimulate the overall growth of the sector. It seeks to champion for the increased adoption of the industries by the small enterprises. It also seeks to prepare the future manufacturing workforce through skill impartment (Sweeney, 2020). The third objective is that the plan seeks to recognize and strengthen the worldwide leadership of the aerospace industry for further innovation and diversification.
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