Tool and mould industry among those laying off amid Windsor having highest unemployment in Canada

Uncertainty in the automotive industry is impacting the tool and mould industry in the Windsor area, according to those in the industry.

Some automakers are holding off production of electric vehicles as the demand for those vehicles has softened. That has delayed payment to mould makers who wait up to two years to get reimbursed for work they have already done to create the moulds for parts for those cars.

The chair of the Canadian Association of Mold Makers (CAMM) tells CBC News mould makers don't get paid until the automakers start production.

"So not only do you have to be a great mould maker, you almost have to be a strong banker or have good banking relationships," said Saylo Lam, who is also president of the mould making company Circle 5 in Lakeshore.

Lam said there are also pressures coming from abroad. North American automakers are turning to countries such as China, which is producing moulds at a lower cost. He says other pressures such as supply chain issues, interest rates and geopolitical conflicts are also leading to the companies seeking ways to be more efficient, including laying off staff.

"I don't have a true number for you, but there's some right sizing and it's happening across our industry and Windsor and in the [Greater Toronto Area]," said Lam.

The production floor at the Circle 5 mold making company. (Saylo Lam)

The layoffs come as Windsor continues to struggle with high unemployment.

In June, Windsor's unemployment rate was the highest among major cities in Canada, according to Statistics Canada.

Windsor unemployment the highest in Canada

In its monthly labour force survey report, the agency said Windsor's unemployment rate came in at 9.1 per cent for June, up from 8.5 per cent in May.

Tashlyn Teskey, senior manager of research and innovation for Workforce Windsor-Essex, says despite this, there are jobs available.

"Right now we have about 1,400 people looking for work, but we saw over 6,000 jobs posted in June alone. So there are opportunities out there for anyone that's really ready and able to work," Teskey told Windsor Morning host Amy Dodge.

But Teskey said newcomers to the area, either from overseas or other parts of Canada, are also making an impact on the labour market.

"Almost on a monthly rate, we have over a thousand people joining our community," said Teskey.

Still looking for work

Pakinam Seddik is a job hunter who's also fairly new to the community.

She's a Canadian citizen who came to Canada in 2002, but returned to Egypt in 2008 with her husband, who found work there. She moved back in 2022.

Seddik is looking for work in the human resources field, but isn't having any luck.

"It's frustrating because when I came I had so many hopes. I'm well educated and I have 20 years of experience in the field of HR and administrative work so when I came I thought Canada would benefit from my experience," said Seddik.

As for mould makers, Lam said he's optimistic the industry climate will turn around. But he says mould makers have to modernize and increase efficiencies to stay afloat.