Canadian Finishing & Coatings Manufacturing Magazine September/October 2021 - 18

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output by province by an average profit before tax rate for the
industry of 8.1 percent (Industry Canada data).
To calculate these values, we multiplied the profit before tax
by the federal corporate tax rate of 15 percent and the provincial
tax rates. The GST and PST were estimated by using the federal
GST rate of five percent and the various PST rates. These were
multiplied by the value-add or GDP generated in each province.
In total, there is an estimated $229.6 million of corporate taxes
paid.
Table 5.4 combines the data in Tables 5.2 and 5.3. In total, the
industry contributes $447 million in taxes to the federal and
provincial governments.
Induced Benefits
The direct and indirect economic activity created by the industry
results in induced economic benefits. These benefits are the
result of wages and salaries paid to the employees in the industry
who then spend their money on other goods and services which
further create economic activity. The induced economic activity
creates jobs and wages. Table 5.5 provides the induced number of
jobs and the wages and salaries earned at those jobs.
[NP]The number of jobs was calculated by using a multiplier
for every direct and indirect job created. The multiplier varies
by type of job. In this study, we used the multiplier 1.74 for
manufacturing jobs, (the direct jobs created in the industry as
well as those created by the raw materials suppliers). These
multiplier values come from published academic studies that
estimate the induced economic impact of various job classes on
the economy. Also, we used the national average wage earned of
$33,300 (this is the average wage from Statistics Canada).
Study Conclusion
The total output of the Canadian surface finishing industry is
estimated at $3.5 billion. The industry creates an estimated 47,121
jobs in Canada and the industry's contribution to GDP is $1.3
billion. Ontario, Quebec, and Alberta are the leading provinces
and account for 87 percent of the employment, 86 percent of the
output, and 88 percent of the GDP. The total taxes generated are
estimated at $447 million.
Not only does the Surface Finishing industry create many jobs
within Canada, it also creates relatively good paying jobs. The
average salary and wage within the industry is 26 percent higher
than the average wage and salary within Canada. In addition to the
above numbers, the surface finishing industry's impacts relate
directly to the fact that it touches all aspects of the Canadian
economy. Virtually all manufacturing sectors are touched by the
surface finishing industry; most notably automotive, oil and gas,
agricultural, and aerospace.
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Canadian Finishing & Coatings Manufacturing Magazine September/October 2021

Table of Contents for the Digital Edition of Canadian Finishing & Coatings Manufacturing Magazine September/October 2021