{"id":8007,"date":"2022-02-15T18:43:38","date_gmt":"2022-02-15T18:43:38","guid":{"rendered":"http:\/\/egrowonline.com\/?p=8007"},"modified":"2022-02-15T18:43:38","modified_gmt":"2022-02-15T18:43:38","slug":"automakers-lost-nearly-300m-in-the-ambassador-bridge-shutdown-its-ripple-effect-could-be-costlier","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=8007","title":{"rendered":"Automakers lost nearly $300M in the Ambassador Bridge shutdown. Its ripple effect could be costlier."},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p class=\"article__paragraph article__paragraph--left\" id=\"S53SWYINPVH53ISNCMDABOD554\">WINDSOR, ONTARIO &#8211; For the first time in nearly a week, border officials reported \u201cno delay\u201d Monday as trucks and cars cruised 1.4 miles across the Ambassador Bridge into Canada.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"NOK4L5ALBBAULF4PN4B3M7GE3I\">Reopening the bridge after a seven-day Canadian trucker protest in Windsor was \u201ca win\u201d for Michigan, Gov. Gretchen Whitmer said. But economic experts warn the weeklong trade disruption could reverberate in the short- and long-term.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"4TERFH7XKFA6DJCMAESK3F6IDE\">\u201cThis has underlined the importance of trade between the two countries, but it has also illustrated the fragility of it,\u201d said Patrick Anderson, CEO of the Lansing-based Anderson Economic Group.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"2SEXBJEPFJHAXL2XQGYONLDHCE\"><b>Related:<\/b> <a target=\"_blank\" href=\"https:\/\/www.mlive.com\/public-interest\/2022\/02\/whitmer-says-protests-like-ambassador-bridge-shutdown-will-not-stand-if-economy-is-harmed.html\" rel=\"noopener\">Whitmer says protests like Ambassador Bridge shutdown \u2018will not stand\u2019 if economy is harmed<\/a><\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"72RWHUATBBEB7JZ6J7PJUO75XA\">Carrying $323 million in goods a day\u2014roughly a quarter of the trade between the U.S. and Canada\u2014the Ambassador Bridge is an economic lifeblood to both sides of border.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"AORKQQNQPJHABMAXSLTU57T7ZI\">And the auto industry, which exchanges $12.8 billion in motor vehicles and parts across the Michigan-Canada border annually, felt the immediate pangs of rerouting traffic 70 miles north to the Blue Water Bridge.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"JSUC3BRFR5FW7BJNK7OPMB7LQQ\">Ford, General Motors, Stellantis, Toyota and Honda all cut back on production last week due to supply shortages from the blockade. Some were back up and running Monday, but Toyota plants in Canada, Kentucky, Alabama and West Virginia were still down.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"CBASRAWHJNAYDKIGBXCJ634QIE\">\u201cThe market for vehicles is so strong and the supply is so tight that failure to produce a car pretty much means failure to sell a car,\u201d Anderson said.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"UFG56ZWPHZCU7ATCOIRQVR6Z5M\">Auto industry losses neared $300 million from Monday, Feb. 7 through Tuesday, Feb. 15, the Anderson Economic Group estimates, including $144.9 million in lost wages and $155 million in losses to automakers. This was mostly felt in the Detroit-Windsor region but stretched as far as Huntsville, Alabama.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"HUOZFHYGQBCUNFRHDX3CGOE3OY\">\u201cIt is a real loss for automakers, for their investors and for their workers,\u201d Anderson said.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"FN6YNRUXXJHENHEFKFLTDMCNWA\"><b>Related: <\/b><a target=\"_blank\" href=\"https:\/\/www.mlive.com\/public-interest\/2022\/02\/ambassador-bridge-fully-open-after-seven-day-blockade-choked-key-trade-route.html\" rel=\"noopener\">Ambassador Bridge \u2018fully open\u2019 after seven-day blockade choked key trade route<\/a><\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"CNVIR2KRTBFUFG5SE5653BF77I\">Beyond the immediate blow, the lingering effects of the disruption could erode confidence in cross-border trade, said John Taylor, professor of global supply chain management at Wayne State University. For years, Taylor says it could impact long-term decisions on where companies build plants and who to pick as suppliers.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"IUOOIG2CHBHBVBQYIVOZZCD54A\">\u201cAnything that reduces the confidence in that system and makes us want to use local suppliers, that has a negative impact on the quality of goods, the variety of goods, the price of goods and so on,\u201d he said.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"UCQVDOVGHVFDTME4QG2BIUUECU\">For some, the blockade underscores why Michigan needs a second link between Detroit and Windsor with the Gordie Howe International Bridge set to open in 2024. Last year, <a target=\"_blank\" href=\"https:\/\/www.cbinstitute.ca\/wp-content\/uploads\/2021\/01\/Gordie-Howe-Internation-Bridge-Full-Report.pdf\" rel=\"noopener\">the Cross Border Institute predicted<\/a> interruptions at the Ambassador Bridge could have \u201chuge economic implications\u201d for trucks carrying 30% of U.S.-Canada trade.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"YZTR4YFPDRAEBOVJ4H6K4SAARQ\">\u201cThe long-term impacts go right to the heart of the historic US-Canada trade relationship that has existed for over half a century,\u201d Anderson said. \u201cAnd this kind of disruption will make companies on both sides of the border ask questions about whether they can rely on interrupted trade across the Detroit River.\u201d<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"MYN6KRBGMVEOJHKO3MQCEDRLDI\">This sort of ripple effect doesn\u2019t have a measurable economic impact, Anderson said, but \u201cthat doesn\u2019t mean it isn\u2019t real.\u201d<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"RX3VY2IHGRFUBNHOMWMYO4DNU4\">Taylor says restoring confidence in international trade is multidimensional and requires existing issues like strained supply chains, a shortage of truck drivers and <a target=\"_blank\" href=\"https:\/\/www.gao.gov\/products\/gao-19-470\" rel=\"noopener\">low numbers of border agents<\/a> to also be addressed.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"USJXUOQRYVG3XOIXKQNHZGDKJM\">Canada\u2019s \u201cnational economic crisis\u201d came to an end Windsor Mayor Drew Dilkens said when officials enforced a court order to break up the demonstration over the weekend. Police arrested 46 people and seized 37 vehicles to restore access to the bridge.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"Q2DV7PFVPVDBHEW76UW2OAG5HM\">Although traffic is flowing again, Windsor Police Deputy Chief Jason Bellaire says officials remain on high alert to \u201csee if people are going to be trying to repeat this behavior.\u201d<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"HHSQZWTQ3FH35PPAHKSV47UQME\">Monday night, Canadian Prime Minister Justin Trudeau invoked the Emergencies Act to quell ongoing protests against COVID-19 vaccine mandates and other restrictions.<\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"DV7FXQZEHJCLPPLSR6DDKXOTGA\"><b>More on MLive:<\/b><\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"2ZHMZ6TMXBFXVLW62ECUGMOX3Y\"><a target=\"_blank\" href=\"https:\/\/www.mlive.com\/public-interest\/2022\/02\/canadian-judge-grants-injunction-against-protesters-signaling-end-of-ambassador-bridge-blockade.html\" rel=\"noopener\">Canadian judge grants injunction against protesters, signaling end of Ambassador Bridge blockade<\/a><\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"QGND2LEVBBFKBFZ3FPKB6N6MA4\"><a target=\"_blank\" href=\"https:\/\/www.mlive.com\/public-interest\/2022\/02\/auto-plants-pause-production-as-ambassador-bridge-blockade-continues.html\" rel=\"noopener\">Auto plants pause production as Ambassador Bridge blockade continues<\/a><\/p>\n<p class=\"article__paragraph article__paragraph--left\" id=\"MLUE3G333BAONI6CTTRSHHHXFI\"><a target=\"_blank\" href=\"https:\/\/www.mlive.com\/public-interest\/2022\/02\/canadian-truckers-protesting-vaccine-rule-snarl-traffic-at-michigan-border-crossings.html\" rel=\"noopener\">Canadian truckers protesting vaccine rule snarl traffic at Michigan border crossings<\/a><\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.mlive.com\/public-interest\/2022\/02\/automakers-lost-nearly-300m-in-the-ambassador-bridge-shutdown-its-ripple-effect-could-be-costlier.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WINDSOR, ONTARIO &#8211; For the first time in nearly a week, border officials reported \u201cno delay\u201d Monday as trucks and cars cruised 1.4 miles across the Ambassador Bridge into Canada. Reopening the bridge after a seven-day Canadian trucker protest in Windsor was \u201ca win\u201d for Michigan, Gov. Gretchen Whitmer said. But economic experts warn the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8008,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[45],"tags":[2647,5131,5130,4438,5132,395,1687,265,1268],"class_list":["post-8007","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ripple","tag-300m","tag-ambassador","tag-automakers","tag-bridge","tag-costlier","tag-effect","tag-lost","tag-ripple","tag-shutdown"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/02\/DU56JDBW4RFSPGIEFNH3RGHPUU.JPG","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/8007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8007"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/8007\/revisions"}],"predecessor-version":[{"id":8009,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/8007\/revisions\/8009"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/8008"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8007"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}