High hydro rates are forcing Ontario’s manufacturing sector into a dark corner, according to a new report.

The Fraser Institute says Ontario lost more than 116,000 manufacturing jobs between 2008 and 2015. The report says that 64 per cent of that decline can be attributed to higher electricity prices.

John Bamford, owner of Stainless Outfitters, makes steel pieces for boats, range hoods, and even the signature hockey sticks on the side of the Barrie Molson Centre.

He says the high cost of hydro is hurting his bottom line.

“It affects what we can do for our employees at the year end. We don’t have the extra money that we could use for bonuses,” says Bamford.

The Barrie Chamber of Commerce says businesses are being forced to make tough decisions about their future.

“Companies are looking at the costs they have to endure, and they're trying to strategize how to overcome that,” says Patricia Dent, a spokesperson for the chamber.

The effect has trickled down to small businesses as well.

“Our hydro bills are out of control. We did a retrofit three years ago, they've had some impact but not the impact we that were hoping,” says Don Kellett, owner of Donaleigh’s Pub.

Businesses say the province is making it increasingly difficult to turn a profit.

Not only are businesses grappling with the high costs of hydro, but they'll also have to new find ways to offset the costs of a rising minimum wage here in Ontario.