Ontario’s productivity performance has been abysmal for the past 10 years. Yet most forecasts have it returning to roughly its longer term historical average. Budget projections count on it.
Yet why should we believe that?
When considering a southern Ontario location to supply a portion of the North American market, the global company has also to take into account border infrastructure bottlenecks, border security delays and possible prolonged disruptions, as well as a wildly fluctuating Canada-U.S. dollar exchange rate.
Throw in the fact that Ontario has: a transportation infrastructure crisis mired in political gridlock; hopelessly mismanaged its electricity sector; high housing costs compared to parts of the U.S.; and politically powerful public and private sector unions.