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Www.cme-mec.ca Managing Our Future: An “Engine” of Opportunity “Made in Ontario” Advanced Manufacturing R & D Challenge December 11, 2013 Ian Howcroft,

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Presentation on theme: "Www.cme-mec.ca Managing Our Future: An “Engine” of Opportunity “Made in Ontario” Advanced Manufacturing R & D Challenge December 11, 2013 Ian Howcroft,"— Presentation transcript:

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

2 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.

3 www.cme-mec.ca Manufacturing in Canada & Ontario Companies that produce things – 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

4 www.cme-mec.ca 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: – Manufacturing Competitiveness – US Business – International Markets – People and Skills – Energy and Environment.

5 www.cme-mec.ca Programs & Assistance for Manufacturers 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

6 www.cme-mec.ca

7 Manufacturing Output & Sales

8 www.cme-mec.ca The Recovery is Sputtering 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

9 www.cme-mec.ca 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

10 www.cme-mec.ca 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

11 www.cme-mec.ca 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

12 www.cme-mec.ca 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

13 www.cme-mec.ca Manufacturing Matters to Ontario IMAGE: 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

14 www.cme-mec.ca 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 low- cost 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

15 www.cme-mec.ca Challenges and Opportunities 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?

16 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

17 www.cme-mec.ca 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

18 www.cme-mec.ca Leveraging Networks in Canada 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: –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)

19 www.cme-mec.ca For More Information Check out: www.een-canada.ca Or Contact: general.eencanada@cme- mec.ca


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