Transcript Slide 1

www.cme-mec.ca
Managing Our Future:
An “Engine” of Opportunity
“Made in Ontario” Advanced Manufacturing R & D Challenge
December 11, 2013
Ian Howcroft, Vice President, CME Ontario
www.cme-mec.ca
Canadian Manufacturers & Exporters
 Canada’s largest national industry and trade association representing
businesses that employ over three million Canadians.
 Established since 1871.
 Present across Canada and in the US.
 Our membership accounts for an estimated 75% of Canada’s
manufacturing production and 90% of Canadian goods and services
exports.
 More than 85% of our members are small and mid-sized enterprises.
 Members include manufacturers, exporters, their supply chain partners
and key business services providers.
www.cme-mec.ca
Manufacturing in Canada & Ontario
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Companies that produce things
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A $540 billion business across Canada ($650 billion in 2008)
A $270 billion business in Ontario ($300 billion in 2008)
13% of Canada’s GDP (16% in 2005)
10% of workforce = 1.75 million Canadians (2.4 million in 2005) – 800,000 in Ontario
A highly diversified sector
Manufacturing accounts for two-thirds of Canada’s exports
Highly integrated with the US market
75% of business sector R&D
85% of new product commercialization
Canada’s leader in GHG emission reduction (10% reduction since 1990)
The business of manufacturing = A $1.6 trillion business
– Every dollar of output in manufacturing drives $3.50 of total economic activity
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What CME does
• We work to improve the business environment for Canadian
manufacturers and exporters to help our members compete and win in
Canada and around the world.
• We facilitate business and networking opportunities, advocate on your
behalf, communicate economic and policy intelligence, and educate best
practices
• We focus on the critical issues that matter most to our members:
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Manufacturing Competitiveness
US Business
International Markets
People and Skills
Energy and Environment.
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Programs & Assistance for Manufacturers
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Prosperity Now – CME SMART Program
Energy Connections Project
Safety Groups
iCME
CWS
Ontario Manufacturing Strategy & Action Plan
Skills – Open Doors
The Funding Portal
EEN
oCME
www.cme-mec.ca
Jobs Depend on Business Profitability
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Percent
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1985
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1995
After-Tax Profits as a Percent of GDP
2000
Unemployment Rate
2005
2010
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Manufacturing Output & Sales
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Index (Jan 2000 = 100)
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105
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Sales (Current Dollar)
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GDP (Real Value Added)
2010
2011
2012
2013
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The Recovery is Sputtering
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Muddling through the European debt problem
Major impact on global trade and finance
Slowdown in China and export-oriented economies
Reduced demand for commodities and excess capacity
More restrictive rules on bank financing
US politically dysfunctional and nearing fiscal cliff
Unrest in the Middle East
Rapidly mounting consumer & government debt
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Drivers of Change
• Intense competition
– For customers
– For investment & product mandates
– For people, knowledge, & skills
• Currency appreciation
– Canadian dollar 50% higher than in 2002
• Recession & consolidation
– Orders, exports, sales down 30% in 6 months
• Uncertain recovery, volatile markets
• New market opportunities
– In Canada, Europe, Asia, Latin America
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For Manufacturers, Future Success
depends on …
• Finding new customers and/or winning global product mandates
• Differentiating themselves from the competition through:
– Customization = Focusing on customer solutions
– Product innovation, design, engineering
– Customer service
• Unit cost competitiveness – total delivered cost to customer
• Adopting the most productive processes and technologies
• Having access to skilled people and continually upgrading the
capabilities of their workforce
• The investments they make in new markets, product and process
innovation, new technologies, and workforce development
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Key Market Opportunities
• Within Canada
– Over $500 billion in energy, resource, infrastructure projects across
Canada over the next ten years
• Across North America
– New investments and supply chain opportunities in automotive,
energy, health care, equipment and technology sectors
• Around the World
– Resource and infrastructure investments
– EU market opportunities
– New supply chain opportunities – automotive, aerospace, energy,
equipment, technologies
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Policy Leadership Matters
• Competitive taxes – low corporate tax rates, 2-year
depreciation, R&D tax credit, tariff elimination on inputs,
value-added sales taxes
• Lean regulation
• Canada-US Border Action Plan & Regulatory Cooperation
• Open markets – US, EU, Asia – and effective enforcement of
trade rules
• Support for innovation & productivity improvements
• Education & training for an advanced manufacturing workforce
• Available, reliable & competitive infrastructure
www.cme-mec.ca
Manufacturing Matters to Ontario
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Make manufacturing a provincial policy priority
Build a modern manufacturing workforce
Support manufacturing investments
Create a world-class regulatory system
Improve our connections in Canada and to the world
Ensure reliable access to cost-competitive
infrastructure
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New Business Imperatives
• What the recession taught us: Business as usual is not an option
• Need to find new business opportunities in new markets in Canada
and around the world
• In a high cost economy, competitive advantage for Canadian
businesses is based on our ability to differentiate ourselves from lowcost competition by providing a premium solution to customers –
through agility, innovation, design, customization, & service
• New business opportunities are best leveraged by being at the
forefront of product, process, and technology innovation
• Partnerships help to reduce risk, combine strengths, optimize
opportunities for new product and market development
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Challenges and Opportunities
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What high-value business opportunities are out there?
Where are potential customers, suppliers, partners to be found and what are
they looking for?
What is the best way to identify and become engaged in early-stage product
and technology development and commercialization initiatives?
What is the best entry strategy into new markets and what is the easiest way
to execute?
How can limited resources be focused on reliable, high quality leads and
opportunities?
How can new products, processes, technologies be commercialized at least
risk/cost and highest margins?
What support services are available?
What sources of financing are available?
www.cme-mec.ca
The Enterprise Europe Network
• Canadian Manufacturers & Exporters (CME) – Canada’s largest trade
and industry association – is the entry point for Canadian business to
the Enterprise Europe Network
• The EEN is a network of more than 600 organizations in 54 countries –
all with small business clientele – dedicated to identifying qualified
leads and facilitating international technology and business
partnerships
• In Europe, the EEN is a cornerstone of the European Commission’s
support for technology start-ups and small & medium-sized businesses
• Launched in 2008, the EEN has facilitated over 13,000 business and
technology partnerships across 25 major industry sectors
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Network Benefits
• Through our participation in the Enterprise Europe Network, CME
can help small and mid-sized Canadian businesses:
– Identify and connect with qualified international companies looking for technology
and business partnerships with Canadian firms
– Profile their technologies, as well as offers and requests for business
partnerships, across the EEN
– Participate in international technology shows and matchmaking events organized
within the Enterprise Europe Network
– Analyze market opportunities for specific technology and business partnerships
– Access expert advice and financial support for international technology and
business partnerships
www.cme-mec.ca
Leveraging Networks in Canada
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In order to take full advantage of the Enterprise Europe Network, CME s partnering with other
organizations in Canada to connect their clients to EEN opportunities and help provide expert
advice, services, and financial support
CME’s Canadian partners currently include:
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EDC
Canada’s Trade Commissioner Service
Industry Canada
NRC
HSBC
The Funding Portal
The Government of Quebec
Industry & Technology associations
Centres of Excellence
University technology transfer offices
Economic Development Agencies and Regional Innovation Networks
CETA (Canada’s Free Trade Agreement)
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For More Information
Check out:
www.een-canada.ca
Or Contact:
[email protected]