Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
February 11, 2022 12:08 PM

US-Canada border closure adding more costs, concerns for suppliers

Steve Toloken
Assistant Managing Editor
Plastics News Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Bridge-protestors_i.jpg
    Greg Layson, Automotive News
    Protestors in Windsor, Ontario, have blocked commercial vehicle access to the Ambassador Bridge connecting Windsor and Detroit since late on Feb. 7.

    A protest that shut down traffic at the U.S.-Canada border crossing in Detroit has forced automakers to halt production on both sides of the border and exacerbated turmoil to an auto industry already stressed by a computer chip shortage.

    General Motors Co., Ford Motor Co., Toyota Motor Corp., Honda Motor Co. and Chrysler owner Stellantis have all shut down assembly plants because parts cannot be shipped across the Ambassador Bridge between Detroit and Windsor, Ontario.

    A protest in support of Canadian truckers calling for an end to a vaccine mandate for drivers crossing into Canada from the U.S. — matching a requirement by the U.S. for truck drivers entering the U.S. from Canada — has shut down commercial traffic on the bridge since Feb. 7.

    Ontario Premier Doug Ford declared a state of emergency in the province in response to protests both in Windsor and the Canadian capitol of Ottawa.

    "To protesters, We've heard you and it's time to go," Ford said.

    The ripple effect has hurt companies all along the supply chain from international Tier 1 auto suppliers to toolmakers.

    Mold maker Cavalier Tool & Manufacturing Inc. in Windsor, said it is "at a standstill all but virtually" with the molds it sends across the border and the manifolds, steel and other components they bring in from the United States.

    "It's just a heck of a wrench into us," said Sales Manager Tim Galbraith.

    There are unattractive workarounds. The company is routing some shipments to Toledo, Ohio, by sending trucks east to the border crossing at Buffalo, N.Y., or, when it does not face six hour backups, across the Blue Water Bridge 65 miles north of Detroit, between Sarnia, Ontario, and Port Huron, Mich., he said.

    The Ambassador Bridge closure has also exacerbated trucking shortages and rising costs the company was dealing with before the demonstrations, he said.

    For example, Galbraith said several weeks before the protests, Cavalier contracted with a trucking firm to pay $20,000 to ship a large tool to a factory in Mexico.

    That went up to $37,000 when Cavalier called to schedule the pickup, before the protests. But with demonstrations erupting before the actual mold collection day, the trucking firm canceled and said it would not risk sending a rig. So the tool sits in Cavalier's Windsor facility.

    "That's the typical things that are happening," he said. "My customer will probably incur financial penalties because they're late delivering their parts. That's out of my control but I just hope they give us the jobs next time."

    The Canadian Association of Moldmakers and Automate Canada said they were sending a joint letter to Canadian Prime Minister Justin Trudeau asking for stronger action to resolve the crisis.

    Jeanine Lassaline-Berglund, president of both organizations, said some member companies are "up in arms" about the business disruptions. She said one company noted it sends C$4.5 million (US$3.5 million) in tooling across the border each month.

    She said the Canadian firms are worried the shutdown will make U.S. customers more reluctant to source in Canada, on top of the struggles with border trade during the two years of the coronavirus pandemic.

    "This has the potential for devastating effect," she said. "In our opinion, we have U.S. customers and the U.S. public at large, if you will, that are watching what is going on here and saying, 'This is just one more reason not to do business in Canada.'"

    That worry is shared by Cavalier.

    "There's definitely some concern that there are companies that are saying, 'Hey, I've got a company in Chicago or Detroit or whatever city that I can place a program with, and I've got a company in Windsor I can place a program with, and all things being equal, the risk mitigation group says let's not take a chance on Canada,'" Galbraith said.

    Industry consultant Laurie Harbour said the bridge shutdown could have significant impact, noting that many mold builders in Canada buy steel and components from the United States.

    "This could delay builds and deliveries to customers which will cause a ripple effect to molders that won't be able to make parts for new vehicle launches," said Harbour, who is president and CEO of Harbour Results in Southfield, Mich.

    One large auto component molder said it's had to adjust shipments.

    Magna International Inc. is "managing" amid "supply chain constraints caused by the blockade," Tracy Fuerst, vice president of corporate communication at Magna, told Plastics News.

    "We've had to be a bit creative by using other ports of entry," to get supplies both into and out of the U.S. and Canada, Fuerst said.

    However, Fuerst later said a "handful" of the supplier's plants in the U.S. and Canada have started to adjust or reduce shifts to match automakers' schedules impacted by the protest. As an example, she pointed to a just-in-time seating facility in the U.S. that is idled Feb. 11 because the assembly plant it supplies is shut down.

    On an earnings call with analysts, Magna CEO Swamy Kotagiri said the company was "starting to see some initial impact" from the blockade as its automaker customers scale back production plans.

    "We're watching it closely, and we hope it gets resolved quickly," he said.

    The auto industry's tight supply chain means any snarls can be aggravated quickly

    "All it takes is one missing part, and it shuts down an assembly line," said John Taylor, professor of global supply chain management at Wayne State University in Detroit. "The whole system is built on minimal disruption so you can ship parts a day or two before they go into the car."

    Plant closures and temporary layoffs will continue if the border remains closed, said John Walsh, president and CEO of the Michigan Manufacturers Association.

    "Automotive suppliers are on the brink of a significant production crisis," Julie Fream, president and CEO of the Original Equipment Suppliers Association, said in an email. "We need both the Canadian and U.S. border authorities, as well as local law enforcement, to fully enforce the laws and regulations to reopen all border crossings including the Ambassador Bridge."

     

    Sarah Kominek of Plastics News, Crain's Detroit Business and Automotive News contributed to this story.

    RECOMMENDED FOR YOU
    Industry sees Biden bioplastics goal as serious signal
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    Biden sets US goal to replace 90% of plastics with biomaterials
    2
    Nova declares force majeure for PE made at Ontario site
    3
    Engineering resin prices close the first quarter with a drop
    4
    Entek picks Terre Haute, Ind., for $1.5B battery separator plant
    5
    Polymer Points Live March 2023: Commodity resin prices rising, but engineering resins see drops
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified