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nomic sector, while GDP measures the value of goods and services pact that the paint and coatings sectors have in Canada. The sur-
produced. The “output” of goods noted in this report is defined as face finishing and paint and coatings segments are similar since
goods produced or imported and sold in the Canadian market. It they serve or share similar markets, and both involve coatings or
also captures economic activity generated by exports, though ex- surface finishing of a metal or plastic part. If we include the eco-
ports represent less than 10 percent of the total volume. nomic impact of all industrial applied coatings, (in other words, ex-
A summary of the economic impact of the surface finishing in- cluding site-applied coatings like architectural, auto refinish, pro-
dustry in Canada shows: tective, and marine coatings), the economic impact is:
• Annual Direct and Indirect Output of $3.5 billion. • $3.03 billion of output
• Surface Finishers Revenue of $2.5 billion. • $702 million of wages and salaries
• Total Direct and Indirect Estimated Employment of 17,198. • 21,240 jobs created
• Total Direct and Indirect Wages and Salaries of $705 million. • $1.148 billion of GDP
• Wages and Salaries that are 26 percent higher than the • $428 million of tax revenues
Canadian average.
• Annual Induced Employment of 29,924. It should be noted that the above values for industrial applied
• Total Induced Wages and Salaries of $996 million. paint and coatings include all industrially applied coatings includ-
• Annual Federal and Provincial Tax Revenue of $447 million. ing automotive OEM coatings, coil, general industrial, metal pack-
• Annual GDP Impact of $1.31 billion. aging, powder, and transportation coatings (rail, aerospace, and
others).
Ontario, Alberta, and Quebec are the main beneficiaries of the
economic activity generated by the industry, with nearly 90 Table 1.3: Economic Impact of Industrial
percent of the economic activity in those three provinces. Applied Paint & Coatings
Table 1.1: Summary of Economic Impact of Total
Surface Finishing Direct Indirect Eco-
nomic
Impact
Total
Direct Indirect Eco- Output (millions $) $1,109 $ 1,921 $ 3,030
nomic Wages & Salaries (million $) $ 222 $ 480 $ 702
Impact Employment (Number of jobs) 5,276 15,965 21,240
Output (millions $) $ 2,586 $ 930 $ 3,516
Wages & Salaries (million $) $ 636 $ 69 $ 706
Employment (Number of jobs) 15,121 2,077 17,198 Table 1.4: Summary of GDP and Taxes Paid by
Province (Millions of $) of Industrial Coatings
Table 1.2 Summary of GDP and Taxes Paid
by Province (Millions of $) Total
Taxes Total GDP
Collected
Total Ontario $ 671 $ 251
Taxes Total GDP Alberta $ 105 $ 39
Collected Quebec $ 164 $ 61
Ontario $ 743 $ 241 British Columbia $ 110 $ 41
Alberta $ 248 $ 65 Manitoba $ 35 $ 13
Quebec $ 165 $ 80 Saskatchewan $ 22 $ 8
British Columbia $ 80 $ 30 Atlantic Canada $ 37 $ 14
Manitoba $ 21 $ 11 Total $ 1,144 $ 428
Saskatchewan $ 33 $ 11
Atlantic Canada $ 25 $ 10
Total $ 1,314 $ 447 If we add in the contributions of the Surface Finishing and In-
dustrial Paint & Coatings Market, the total result is:
• Output of $6.5 billion
In addition to the above economic activity, a related segment is • Wages of $1.4 billion
the paint and coatings industry where metal and plastic parts are • Employment of 38,438
coated. In 2017, the Canadian Paint & Coatings Association • Total GDP Impact of $2.5 billion
(CPCA) engaged with Orr & Boss on a study of the economic im- • Total Taxes Collected of $876 million
These data are summarized in Tables 1.5 and 1.6.
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