The trade war with the United States is taking a toll on small and mid-sized auto-sector companies in Ontario, with nearly three in four reporting revenue losses during the past year, according to a new report by Western University’s Ivey business school.
It said automotive revenue declined 68 per cent among the 28 surveyed companies with up to 500 employees that produce car components, with half saying the drop was larger than 10 per cent.
Despite the hit to their bottom line, the majority of companies said they’re still profitable or breaking even, but they’ve had to turn to drastic measures, such as cutting jobs or postponing capital investment, to stay afloat, the report said.
