TRANSCRIPT
Amy (00:05.736)
Before we get started, here’s something to think about. What if I told you that the country powering American manufacturing isn’t China? It’s Canada? Or that a single automotive part component, if you will, can cross the US Canada border border as many as eight times before it even ends up in the vehicle you drive.
Today we’re going to uncover why Canada is America’s most overlooked manufacturing partner, why the USMCA may be one of the most important agreements for US manufacturers, and why this relationship will affect millions of American jobs. So stick around because one of the biggest surprises in this conversation may completely change how you think about North American manufacturing.
Before we dive in, if you enjoy conversations with leaders shaping the future of manufacturing, be sure to subscribe, turn on notifications, and give this video a like if you like to never miss an episode of Manufacturing Talk Radio. So let’s get started. Welcome back to Manufacturing Talk Radio. And today we’re talking about something most Americans don’t realize. Our closest, most important manufacturing partner isn’t across an ocean.
It’s right next door. Canada is quietly powering American manufacturing in ways most people actually never hear about. So joining me is Peter Oaken, the editor-in-chief of Manufacturing Talk Radio Podcast News, who’s been following the latest NAM Insights on the US MCA and Northern American manufacturing. Peter, thank you so much for being here.
Peter Okun (01:48.202)
It’s my pleasure. Happy to be here.
Amy (01:50.867)
So let’s start with the big headline. So NAM recently highlighted that Canada and Mexico are now the United States’ number one and number two trading partners. Most people still assume China holds that position. So what’s actually happening here?
Peter Okun (02:08.117)
So yeah, Amy, excuse me, this surprises almost everyone. For decades people assumed China was our dominant trade partner because of consumer goods, but when you look at manufacturing, the story is completely different.
So, according to the National Association of Manufacturers, Canada and Mexico purchase more than one-third of all US manufacturing goods exports. Nearly $600 billion a year. That’s not really a small shift. That’s a structural reality. And here’s the part that hits me emotionally. This isn’t just trade, it’s a partnership. It’s a co-production. it’s neighbors building things together. Canada isn’t sending us finished goods.
They’re sending us the lifeblood of our factories. 72% of imports from Canada are industrial inputs: metals, minerals, chemicals, auto parts, and even energy. So these aren’t products sitting on shelves. These are materials that keep American assembly lines moving. And most people don’t realize it, but Canada is literally inside the American manufacturing process.
Amy (03:23.656)
So you had mentioned co production. Can you explain what that actually looks like and how are we how is the US and Canada building things together? I I’d like a can you better get into that with us?
Peter Okun (03:26.443)
Mm-hmm.
Peter Okun (03:37.898)
Absolutely. So the best example is the auto industry, which is particularly a
shared heartbeat between our countries. Canada’s auto sector exports 92% of its vehicles to the US and those vehicles aren’t built in one place. A single park can cross the U.S.-Canada border five to eight times before final assembly. So imagine this a transmission might start in Ohio, get precision machined in Ontario, return to Michigan for assembly, receive components from Mexico, then head back to Windsor
For final integration, and finally end up in a vehicle sold in Texas. That’s not three separate supply chains, that’s one North American production assembly and ecosystem. And the Detroit Windsor Corridor, it’s the busiest commercial crossing in North America with over 2.2 million truck crossings a year, mostly carrying auto parts. It’s not just logistics, it’s trust. It’s decades of shared engineering standards, shared workforce experience.
experience and expertise and shared economic destiny.
Amy (04:50.184)
So Nam had also talked about how the US MCA is powering manufacturing growth. What are you seeing in terms of impact there?
Peter Okun (04:55.906)
Mm-hmm.
Peter Okun (04:59.788)
So the USMCA has been quite a powerhouse, and I mean that sincerely. It didn’t come with fireworks, but it delivered stability, predictability, and a rules based environment manufacturers desperately needed. So NAM reports that sixteen out of twenty one US manufacturing subsectors straw str saw stronger export growth to Canada and Mexico than anywhere else in the world.
And that’s extraordinary. So manufacturers aren’t just exporting, they’re investing. U.S. companies now hold 116.3 billion in manufacturing assets in Canada and over 3 billion in Mexico alone. And here’s the big picture. USMCA helped fuel over 1.2 trillion in new U.S. manufacturing investments in 2025. Manufacturers love certainty and
And USMCA gave them a foundation to plan 10, 15, and even 20 years out, and they’re building on it.
Amy (06:08.552)
Gosh. Okay, so let’s talk about Canada specifically. So I really enjoyed my last trip to Canada and I just want to say loved it. but let’s talk about them specifically. What does Canada bring to the US manufacturing ecosystem that people are not seeing?
Peter Okun (06:13.795)
Mm-hmm.
Peter Okun (06:27.8)
Sure. So yes, great country. Love visiting there as well. So Canada brings three things America relies on every single day. And most people never see them.
One is critical inputs. So Canada supplies the US with metals, minerals, energy, chemicals, lumber, and auto parts, the foundational materials of manufacturing. Again, 72% of Canadian imports are industrial inputs used directly in US factories. Number two is high-quality manufacturing capacity. So Canada produces 100, I’m sorry, they produce 1.29 million vehicles.
vehicles a year and it’s the 11th largest vehicle producer globally. But here’s the kicker. Canada consumes only 9.4% of what it makes. The rest, guess where it comes? To us. So they’re building for the North American market, not just their own.
Number three is workforce and innovation. Canada’s auto sector alone supports over 603,000 jobs with deep expertise in robotics, automation, advanced materials, and clean tech. They’re not just a supplier, they’re an innovative partner.
Amy (07:47.432)
So most people don’t think of Canada though as a manufacturing powerhouse at all. I know I certainly didn’t until I read this report from you, but why is that?
Peter Okun (07:58.252)
I think Canada suffers from being familiar. There are neighbors, so people assume the relationship is simple or small. But Canada is one of the world’s most advanced manufacturing economies. They’re leaders in aerospace, Bombardiere, Pratt and Whitney, Canada, and dozens of suppliers work hand in hand with US firms. They’re leaders in automotive, clean tech, advanced materials, and energy, like I said before.
The truth is, Canada is the US most overlooked strategic advantage. They give us reliability, proximity, shared standards, and a workforce trained almost identically to ours. You can’t get that from overseas.
Amy (08:44.776)
So I mean that makes a lot of sense. And you have said you said something earlier in the conversation that that sparked something with me, which you said that before this before that this relationship was more emotional than people realize. And and I wanted to know what you meant by that.
Peter Okun (08:59.938)
Mm. Sure. So you said before that
You know, this relationship is more emotional. and I’ve said that as well. And we talk about trade like it’s cold numbers, charts, tariffs, but the US-Canada manufacturing relationship is deeply human. It’s families who live livelihoods, depend on cross-border supply chains. It’s towns in Michigan, Ohio, Ontario, and Quebec that rise and fall together. It’s truck drivers crossing the Ambassador Bridge at 4 AM, carrying parts that keep our
factories alive, it’s engineers who’ve collaborated across borders for decades. It’s not just economics, it’s shared prosperity, it’s shared identity, it’s shared resilience. North American wins when North America works together.
Amy (09:53.961)
So okay, so you mentioned a ton of different industries throughout here, but what industries would benefit most from the US Can Canada partnership?
Peter Okun (09:58.478)
Mm-hmm.
Peter Okun (10:03.744)
So several
major industries benefit enormously. One is automotive, so the most integrated supply chain in the world. The other is energy. Canada is the largest foreign supplier of energy in the U.S. The third is aerospace, deep collaboration between US and Canadian manufacturers. Agriculture and food processing, massive two-way trade in ingredients and packaged goods. There’s metals and mining. Canada supplies critical
Minerals essential for EVs, batteries, defense, and semiconductors. And then there’s forestry and construction materials. Canada, Canadian lumber and building materials support US housing and infrastructure. If you’re in marketing, Canada touches your world somewhere, often in ways you never see or knew.
Amy (10:58.566)
we mean manufacturing. That’s you.
Peter Okun (11:01.046)
Yes. That too.
Amy (11:05.424)
So how does Canada strengthen the US supply chain resilience?
Peter Okun (11:10.114)
So Canada gives the US something priceless, and that’s reliability. So shared standards, predictable regulations, shorter lead times, lower transportation costs, fewer geopolitical risks, deep cultural alignment.
So when global supply chains were disrupted during pandemics, port shutdowns and geopolitical tensions, North America held strong. Canada’s proximity means we can build better, faster, safer, and more competitively. It’s resilience you simply can’t get from overseas.
Amy (11:48.808)
So as the US C A goes through its review, what should manufacturers be watching for?
Peter Okun (11:54.39)
So three things matter the most.
One is enforcement, and the USMCA only works if all three countries follow the rules consistently. Manufacturers need predictability. Two is critical minerals strategy. EVs, batteries, aerospace, and defense all depend on Canadian minerals. Securing access is essential for US competitiveness. And three is regulatory alignment. The more the US and Canada align standards, the faster and
cheaper production becomes. It reduces friction, delays, and compliance costs. Manufacturers should stay engaged. This review shapes the next decade of North American competitiveness.
Amy (12:41.128)
Okay, so here’s my final question to you, Peter. If you had to sum up why Canada matters so much to US manufacturing, what would you say?
Peter Okun (12:44.045)
Okay.
Peter Okun (12:51.598)
So I’d say this. Canada isn’t just a trade partner. They’re part of how America builds things. They’ve woven into our supply chains, our factories, our jobs, our communities. They help us innovate, complete, and grow. And together, the US, Canada, and Mexico make up 30% of global GDP, nearly six times China’s share. So North America wins when North America works together. And Canada is
a huge part of that story.
Amy (13:24.498)
So Peter, this conversation has been incredibly eye opening for me because I hadn’t even thought about any of these things this way prior to this to speaking with you and and I’m like glad you were here to share it. You’ve really taken most of what most people think is like dry trade flows, supply chains and agreements, and you’ve shown really the human heartbeat of what that means for North America.
Peter Okun (13:37.678)
Pleasure.
Peter Okun (13:43.907)
Mm-hmm.
Amy (13:49.107)
think what really stands out is how deeply Canada is woven into a manu American manufacturing. So not just as a distant supplier, or as a competitor, but really I think you’re really impactful in the way that you you really showcase Canada as being a partner. and you help us understand that when an American factory hits its production goals
Peter Okun (14:03.694)
Mm-hmm.
Amy (14:11.868)
And a worker collects in at six AM and the line runs smoothly and a new car rolls off the line in Michigan or Tennessee. That, you know, it’s really it’s not just, you know, the guys that in are in Michigan and in Tennessee. It’s really all of North America that’s part of that supply chain, which is really very interesting. So thank you for breaking it down for us with such clarity and respect for the people who make things work in our country.
Peter Okun (14:25.101)
Right.
Peter Okun (14:37.048)
Well, Amy, thank you. And I just want to end with this because it’s something I feel deeply. We talk a lot about manufacturing as numbers, output, GDT GDP, and exports, but behind every statistic is a person, a worker, a family, a community. And when you look at the US-Canada relationship through that lens, you see something incredibly special. You see two nations that don’t just trade, they build together. You see supply chains that aren’t transactional.
they’re generational. You see trust that’s been earned over decades of shared work, shared standards, and shared values. And you see something that’s
Really rare in global manufacturing, a partnership where both sides generally want to see each other succeed. And Canada helps keep our factories running. We help keep theirs running. Our workers depend on their workers and their workers depend on ours. Our innovations fuel their industries and theirs fuel ours. It’s not competition, it’s collaboration. It’s not foreign, it’s familiar, it’s not distant, it’s next door. And as the USMCA goes through.
I hope people remember that this isn’t just about trade rules. It’s about protecting one of the strongest, most resilient manufacturing partnerships in the world. North America wins when North America works together. And Canada is and always has been a huge part of America’s manufacturing strength. So, Amy, thanks for having me. This conversation matters, and I’m grateful we got to shine a light on this.
Amy (16:13.896)
Thank you. Don’t forget, if you like this conversation, don’t forget to subscribe and like. And we’ll see you next time.
Peter Okun (16:22.508)
Take care.
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