The Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario

Mississauga, Ontario

May 8, 2014

Check against delivery

Good morning.

It's a pleasure to speak to you all today as you discuss ways to drive manufacturing competitiveness here in Canada.

I don't have to tell you that manufacturing is critically linked to our nation's economy and long-term prosperity.

This is nowhere more apparent than here in Ontario, where more than 30,000 manufacturing establishments brought in $270 billion in sales last year.

As I'm sure the business owners in the audience can attest—Ontario is a great place to do business.

In southern Ontario in particular, we have a highly educated and diverse population; an excellent network of universities and colleges; abusiness-friendly environment; and close proximity and access to the United States and international markets.

We have key economic clusters in areas such as food and beverage processing, auto manufacturing, information and communications technologies, and life sciences.

We have world-leading companies. In fact, here in Mississauga where we are gathered, there are 63 Fortune 500 firms.

We also have innovative manufacturers.

Some of the world's fastest road bikes are made in Canada at Toronto-based Cervélo.

And it was Canadian filmmakers and entrepreneurs who created the IMAX motion picture projection system, which has revolutionized the cinema experience.

I could go on about the real advantages we have here, but we also need to be realistic. The manufacturing sector, as compared to others, has been experiencing slow growth here in Canada. The sector, as you know, is also faced with global competition like never before.

Technology changes, improves and then becomes obsolete overnight.

In addition, the consumer landscape changes just as quickly, making products that were once in high demand, no longer needed.

The new world of manufacturing is high-tech, high-skilled, innovative and highly responsive to consumers. Robotics, 3D printing and customization are much more than buzzwords—they are the new reality.

Engineers, programmers and designers are the new faces of Canadian manufacturers. 

These are indicators of the changes within manufacturing towards more innovative and efficient ways of doing things, and to recovering jobs that will very likely be higher paying and higher quality.

While some manufacturers have already made the necessary adjustments, many more need to seize the opportunities for change.

Our regional prosperity will rely on southern Ontario business' capacity to innovate more than ever; to invest in R&D and productivity-enhancing machinery and equipment; to build collaborative partnerships; and to extend our reach to international markets.

I've said it before, but it bears repeating. Manufacturing is a real creator of wealth and opportunities, both in southern Ontario and across the country.

That is why the Government of Canada—and my Agency, the Federal Economic Development Agency for Southern Ontario, or FedDev Ontario as we're commonly known—continues to invest in manufacturers so they may become more productive, innovative and competitive, leading to long-term economic prosperity.

So, how are we doing this?

Since our creation in 2009, FedDev Ontario has supported more than 1,400 projects related to manufacturing. This is through direct investments in businesses across the region, from Windsor to the GTA to Cornwall. It is also through partner organizations, such as post-secondary institutions, the Ontario Chamber of Commerce, the Yves Landry Foundation, as well as the Canadian Manufacturers & Exporters or the CME.

Through a FedDev Ontario investment of more than $38 million, the CME has helped more than 700 small- and medium-sizedmanufacturing businesses in southern Ontario to become more productive and better equipped to compete in world markets.

I know that you'll be hearing from Jayson Myers next. I am so glad he's here to  bring his association's expertise to the discussion today. And I want to commend the CME for the work it is doing to support manufacturers in Canada.

As I mentioned earlier, improved productivity and an increase in exports are very important for today's manufacturers. Fiera Foods Company, a local food manufacturing success story, recognized this early on in its development. The company was founded in 1987 by two hard-working immigrants who ran an ambitious five-person operation. It is now one of the largest baked goods manufacturers in North America. It runs 24 hours a day and 365 days a year to keep up with both domestic and international demand.

Fiera Foods undertook a multimillion dollar improvement project to increase production capacity, which FedDev Ontario has supported. Its two fully automated production lines can now make more than 100,000 bagels an hour. New technology gives them the ability to make 850 varieties of baked goods, with minimal reconfiguration, often without stopping production. Bread making has come a long way!

Fiera Foods' success also helps to support the Canadian farmers who supply the raw goods that the company uses.

As you can see, if our manufacturers are more competitive, it  benefits their associated supply chains and opens up more economic opportunities.

This is why, ladies and gentlemen, we have targeted some of FedDev Ontario's new programming to further helping the manufacturing sector.

We have launched the Advanced Manufacturing Fund—or AMF as we call it.

The Fund supports product, process and technological innovation.

It supports the development of manufacturing clusters or supply chains.

And it supports collaboration between the private sector, research institutions and post-secondary institutions.

The real benefits it will bring are enormous.

We are encouraging manufacturing firms and those who work with them to come forward with large-scale, transformative projects that are innovative, market relevant and generate economic spillover benefits.

Through this Fund, a total of $200 million is available over the next five years across all of Ontario to help manufacturers.

In addition, FedDev Ontario is delivering four Southern Ontario Prosperity Initiatives. They represent more than half a billion dollars in available funding that can support projects by organizations in various sectors, including manufacturing.

The first initiative, Investing in Business Innovation, will be of interest to early-stage companies and entrepreneurs. It can help them overcome the typical hurdles they face at this stage of a business, particularly with respect to raising adequate capital to perhaps commercialize the next break-through product.

The second initiative, Investing in Business Growth and Productivity is designed to help businesses with exactly what its name indicates: growing and becoming more productive. This is through activities such as adopting new technologies and processes, expanding markets and integrating into global value chains. More of our businesses need to invest in machinery and equipment to improve productivity, and scale up their operations to effectively compete in the global market, as Fiera Foods did.

Investing in Commercialization Partnerships is the third initiative. Canada is extremely well positioned with our research strength at our colleges and universities. However, we need to get better at moving that knowledge out into the marketplace.

This program supports business-led partnerships with a focus on developing globally-competitive products and services, or innovation platforms. These are structures or services that partners can use to test, refine or develop applications to help bring products from lab to market. All of this can help business get a solution to a problem they are facing or to help commercialize an invention.

The fourth Southern Ontario Prosperity Initiative is called Investing in Regional Diversification. Southern Ontario still has a lot of small communities with one or two main employers, which is difficult when an economic downturn hits. This initiative is geared at helping to diversify a community's economy.

I encourage you to visit www.FedDevOntario.gc.ca for the specific details of these funding initiatives, which are all open for application.

Beyond these region-specific programs, the Government of Canada as a whole has put in place the right macro-economic conditions for Canadian businesses to succeed. In fact, since 2006, our Government has lowered taxes, made Canada the first tariff-free zone for manufacturers in the G-20, eliminated unnecessary regulatory burdens and improved conditions for business investment.  We are also on course to balancing the budget. 

We have transformed the National Research Council of Canada, or the NRC, into a research technology organization. It provides Canadian businesses with access to strategic R&D, technical services and specialized scientific infrastructure. The NRC also delivers the Concierge Service—a single access point where any small- and medium-sized enterprise (SME) looking to innovate and grow can find professional and timely advice and financial assistance

We have tax incentives that benefit manufacturers, such as the Scientific Research and Experimental Development Program and the Accelerated Capital Cost Allowance on Manufacturing and Processing Equipment.

I should also point out our Government's efforts in developing trade relations with foreign markets that have the highest potential for Canadian exporters. In less than seven years, Canada has concluded free trade agreements with nine countries and is negotiating with 30 more. I know you'll be hearing about the agreement with the European Union shortly from John Whitehead, its chief negotiator.

In addition, national procurement strategies, such as the Defence Procurement Strategy, are providing an incentive for bidders to work with Canadian businesses to help create jobs and opportunities here in Canada. In fact, I was just at the Made in Canada event last month, a forum for Ontario's high-technology companies to connect with prime defence contractors and explore future business opportunities.

Finally, we recognize that a skilled, mobile and productive labour force is essential for our country's competitiveness. Our Government is reforming Canada's skills training system to ensure that federal funding supports programming that responds to the needs of employers and helps Canadians develop in-demand skills to fill available jobs.

The measures I have outlined today demonstrate our Government's commitment to creating economic opportunities for manufacturers.

We are a country that is known for making things that make our lives better.

In fact, one of our most famous achievements, the Canadarm, has led to Canada's international reputation for robotics innovation.

I am confident we will continue to create things in ways we can't even yet imagine.

And I will repeat what I said earlier: for our manufacturers to continue to succeed, we all need to work together to find ways to keep being innovative and productive.

I want to reiterate that our Government stands as a partner in helping the manufacturing sector to succeed, but we all have a part to play in ensuring it remains an important part of southern Ontario's long-term prosperity.

It's not just about delivering dollars. It's about helping to create the linkages between the necessary partners to help drive the next new invention.

And with that I will now join all of you as a participant and take part in the Manufacturing Agility session this morning and the plenary session this afternoon. As I said, the topics you will be discussing today are important to our region and our country. I look forward to listening to and speaking with you throughout the day.

Thank you and merci.

src:news.gc.ca