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The ever-changing automotive stamping industry in Canada

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The ever-changing automotive stamping industry in Canada



According to Statistics Canada, in 2019 Canada’s motor vehicle metal stamping sector had over 100 stamping establishments, with a primary concentration in Ontario and a few businesses in British Columbia, Alberta, and Quebec. These businesses range in size from very small stamping facilities with one to four employees up to large enterprises with more than 500 employees. The majority of Canada’s stamping businesses fall into the small (five to 99 employees) to medium-sized (100 to 499 employees) category.To get more news about automotive stamping parts, you can visit tenral official website.

Over the past few years, the automotive manufacturing sector in Canada has changed dramatically with shifts in production and closures of major plant operations. But what does that mean for the motor vehicle metal stamping sector in Canada?

"As a Canadian stamper we are committed to being very competitive with China and overseas markets; we have to," said Mo-D, director of new business development, LA Metal Stamping, North York, Ont. "In the last 24 months, we have been able to pull a significant amount of business from China and Mexico. We have been focusing on changing our process to a better way of producing parts, particularly in automotive stamping, which tends to be a very turnkey approach. We try to find a compromise between production and engineering and address cost savings from the onset."

LA Metal Stamping focuses only roughly 7 to 10 per cent of its business on automotive stamping. The bulk of its stamping projects are in the housing, appliance, restaurant and food, and payment system segments. This is partially due to a need for diversification to manage market volatility in any one given sector, but also because automotive stamping has significantly more technical requirements and certification than many other traditional industry segments.As new certification becomes available, automotive stampers need to upgrade to meet the standards. And with that come quite a bit more paperwork and administrative duties that go along with automotive part production in general.

"Because of all the technical requirements, we thought it would be better to stay in the Tier 2 segment of the automotive world rather than be a Tier 1 supplier," said Mo-D. "This has allowed us to be more flexible and cash-happy. We are able to dictate the projects we accept from Tier 1 and have more negotiation room for pricing. As a family-operated business, being able to say no to jobs because of an unnecessarily high expectation of requirements is so important."

While LA Metal Stamping has diversified its project portfolio, many Ontario-based stamping shops have jumped into the automotive stamping world completely.

"Ultramet had previously been working with some larger presses and heavier parts but it shifted to some lighter components with a large production mix," said Justin Garisto, general manager, Ultramet Industries, Breslau, Ont. "However, in the last 10 years, we’ve moved to 99 per cent automotive part production."Garisto explained that the company is well-suited to take on the advanced technical challenges of the automotive industry and has adapted its shop floor to meet quality and traceability requirements such as the IATF guidelines and certification.

"Production releases and scheduling are different in automotive than some other industries," said Garisto. "For example, if the construction industry and door stamping requested 25,000 parts, once they are completed, we would deliver all the parts, where the construction company would then keep them in a warehouse to consume over time. When it gets down to a reorder point, it would order another 25,000 parts. In automotive stamping, it’s not like that. Usually they want 2,000 parts on Tuesday and then 3,000 parts on Thursday. The release sequence is more spaced out."

Ultramet Industries.
Ultramet has focused on taking on some unique and very technically challenging jobs and recently purchased a new weld cell and is expanding its stamping capabilities. Photo courtesy of Ultramet Industries.

The one advantage Garisto sees with the automotive industry is that it tends to be leaner and cleaner than stamping projects for other industries. He also noted that in automotive, the dies are generally owned by the Big Three automotive manufacturers or whomever the shop is stamping for.
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