Canadian Finishing & Coatings Manufacturing Magazine September/October 2021 - 17

CASF NEWS
used in the manufacturing process but not going into the actual
product), are 28 percent of the revenue of a typical surface
finishing company. This results in the total raw material supplier
output being $724 million. Raw material supplier employment
generated within the industry is estimated at 1,137. This value
was estimated by assuming 55 percent of the raw material
supplies were domestically sourced whereas the other 45 percent
were imported. (These import and export statistics are similar to
those of the Canadian chemical industry statistics as a whole, so
we assumed that they would be similar in the surface finishing
industry).
For the domestically produced raw materials, we used a value
of $350,000 of revenue per FTE. The imported products will still
be generating employment in Canada since those goods would
be passing through a staffed distributor system. We used a value
of $1 million per FTE for the distributors which was gathered
from the interviewing process. Table 4.2 summarizes the output
and employment data for the raw material and process material
suppliers.
Table 4.5 provides the data on estimated direct and indirect
wages and salaries earned as a result of the surface finishing
industry. In total, it is estimated at $706 million.
Table 4.6 shows the total economic output generated by the
surface finishing industry is $3.5 billion. There are an estimated
17,198 people employed in the industry in Canada. Total wages
and salaries paid are estimated to be $706 million.
Impact on GDP, Taxes, and Induced Benefits
It is estimated that the surface finishing industry increases GDP
by $1.3 billion. The Direct Surface Finishing GDP was provided
by Industry Canada. Orr & Boss calculated the Supplier GDP
contribution to GDP by scaling the GDP impact by the Output
tables, (Table 4.1, 4.2, and 4.4).
Taxes
There are two types of taxes generated by the industry. The first
are the taxes paid by employees through the wages and salaries
that they earn. These taxes include federal and provincial
income tax as well as the CPP and EI contributions that both the
employee and the employer contribute. The second are the taxes
the companies involved in the industry pay through corporate
income taxes, as well as the sales tax, (both provincial and
federal), that are generated through the sale of surface finished
products.
Table 5.2 provides the estimate for the taxes paid by the
employees that work in the industry. Total wages paid were
multiplied out by the federal and provincial income tax rates.
We also multiplied out the wages by 13.8 percent to determine
both the company and employee contribution to the CPP and
EI programs. As Table 5.2 indicates, the total taxes paid by
individuals employed (both direct and indirect) are estimated to
be $217 million.
Table 5.3 provides the estimate for the corporate taxes paid.
Again, this is both the corporate income taxes that are paid to the
federal and provincial governments as well as the sales taxes that
are paid. Corporate taxes were estimated by multiplying the total
British
Columbia
Manitoba
Saskatchewan
Atlantic
Total
Table 4.5: Total Wages and Salaries ($millions)
Direct
$330
$128
$95
Ontario
Quebec
Alberta
British Columbia $48
$14
$13
$9
Manitoba
Saskatchewan
Atlantic
Total
$636
Indirect Total
$47
$9
$4
$4
$1
$1
$1
$69
$377
$137
$99
$52
$15
$14
$11
$706
Table 4.6: Direct and Indirect Output, Employment, and Wages
$
$ Output
(millions)
Ontario
Quebec
Alberta
$1,978
$576
$483
$279
$67
$62
$72
$3,516
Employment
(Number of
employees)
9,123
3,384
2,470
1,287
374
335
223
17,198
Wages
(millions)
$377
$137
$99
$53
$15
$14
$11
$706
Table 5.1: GDP Direct and Indirect GDP Impact by Province
Surface
Finishing
GDP
Ontario
Quebec
Alberta
British
Columbia
Manitoba
Saskatchewan
Atlantic
Total
$504
$17
$226
$59
$14
$28
$18
$966
Supplier
GDP
$239
$47
$22
$22
$7
$4
$7
$348
www.cfcm.ca
Total
$743
$165
$248
$80
$21
$33
$25
$1,314
17
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Canadian Finishing & Coatings Manufacturing Magazine September/October 2021

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