Page 14 - CFCM May-June 2021_Neat

CASF NEWS

NEWS & INFORMATION

ON SURFACE FINISHING

By Bob Smith

News promised you a continuation of the seriali- Indirect Impacts: the other economic impacts that are
CASFzation of our Orr & Boss Surface Finishing in generated by the industry as a result of the purchase of goods and
Canada Impact Study two editions ago in this column, but recent services to produce surface finishing products.
national and global attention on the unfolding Carbon Tax situation Induced Impacts: personal expenditures by people who have
caused us to change direction. Based on your feedback, it was the been paid wages and salaries in support of business operations,
right move. Hopefully many of you contacted Katherine Teeple and for facility construction, facility operations, event staging events,
made your views known and thereby have given our sector a chance production of indirect goods and services, etc.
at being included in Ontario’s Output-based Pricing System (OBPS)
program where it belongs. On March 25, 2021, the Supreme Court of Data Sources
Canada ruled in favour of the federal government, its right to impose Data presented in this report was collected from several sources.
a minimum carbon price across Canada and supported the Green- The major ones are as follows:
house Gas Pollution Pricing Act in its entirety.
A short recap: the Canadian Paint and Coatings Association, • Interviews with many CASF member companies.
CPCA, had sponsored a similar study in 2017 with Orr & Boss, which • Government data sources such as Statistics Canada
we saw and liked very much, so CASF undertook a similar study in and Industry Canada.
2019 which was finalized mid-2020. It has met with universal ap- • CPCA data, (collected from member companies).
proval and has been widely distributed within our federal and pro- • Orr & Boss data, (collected from Orr & Boss work in the
vincial governments and internationally. In early March, members of chemical industry markets over several decades).
the Board of Directors of the NASF saw our column coverage in this
magazine and were impressed enough with the level and extent of Some of the data was put together using government data that was
the detail outlined that they contacted us for more information. This provided via NAICS codes. The relevant NAICS codes used are
resulted in them also securing Orr & Boss to complete a similar study summarized below:
of the Surface Finishing industry in the U.S. A full copy of the Cana-
dian study is available on our website at www.casf.ca for our • 332811: Heat Treating.
members. • 332812: Coating, Engraving (except jewelry and silverware), and
Now it’s time to continue with the second of our three-part Allied Services to Manufacturer.
Surface Finishing in Canada Impact Study. We started with the Ex- • 332813: Electroplating, Plating, Polishing, Anodizing,
ecutive Summary which you’ve now seen, and that was followed by and Colouring.
the Introduction you see here:
Orr & Boss Consulting Incorporated
Part Two – Introduction Orr & Boss Consulting Incorporated, headquartered in Toronto, is a
The Canadian Association for Surface Finishing (CASF) engaged leading management consulting firm to the specialty chemicals indus-
Orr & Boss to determine the economic output of the surface finish- try with focus on the paint and coatings, as well as adhesives and
ing industry in Canada. The objective was to obtain a greater under- sealants markets. Founded in 1947, Orr & Boss Consulting is an experi-
standing of the present economic contributions generated by the enced, highly respected international management, marketing, and
industry including contributions to GDP and employment, because strategic planning consulting firm. For more than three decades, Orr &
we felt much had changed since the last such study many years ago. Boss has specialized in the coatings industry, and has worked for many
We also believed that many, including ourselves, had no real concep- of the leading specialty chemical manufacturers. It has also worked for
tion of the size of our Industry segment or its contribution to Canada many of the smaller regional formulators and suppliers.
as a whole. The key types of impacts considered were: Orr & Boss Consulting was engaged by CASF to estimate the
direct and indirect economic impacts of the Canadian Surface
Direct Impacts: total employment, output, and GDP generated Finishing industry. For the purposes of this study, the Canadian
by the surface finishers directly. Surface Finishing industry consists of companies engaged in the
14 CANADIAN FINISHING & COATINGS MANUFACTURING MAY/JUNE 2021