Title: Saskatchewan: Manufacturing Success
1Saskatchewan Manufacturing Success
- Saskatchewan Industry and Resources
- Purchasers Showcase
- March 21, 2007
2Primary Sectors
- Oil and Gas - Saskatchewan is 2nd largest oil
producer and 3rd largest gas producer in Canada. - Mining World Leader in Uranium and Potash.
- Forestry Half of Saskatchewan covered by
forests. - Agriculture Nearly half of Canadas arable
land. - Saskatchewan depends on trade. Our exports of
goods and services are equal to more than 60 of
our Gross Domestic Product (GDP)
3Agriculture Agri-Value
- The largest portion of activity occurs in
- meat
- flour and baking
- dairy products
- 47 of Canadas agricultural land base
- 1/6 of Canadas agricultural revenue
- Highly volatile contributor to GDP (7.1 of GDP)
- The largest food companies include
- 1,000 Maple Leaf Foods
- 500 999 Dawn Foods
- 250 499 Lilydale
- 100 249 Robin Hood, World Wide Pork, XL
Foods, Saputo, Harvest Meats, Centennial
Foods, and Ready Bake
4Agri-Value
- Food Beverage Processing
- 2-billion industry
- 265 processors
- more than 6,500 employees (2004)
- Majority of companies are small
- employing less than 20 people
- serve the local provincial (or prairie regional)
market - 11 companies with more than 100 employees
5Industry Growth Opportunities
6Investment Opportunities
- Food and Beverage Market growth areas
- Meat Products
- Health nutritional foods (functional foods)
- Ingredient supplier market
- Convenience foods
- Frozen and refrigerated food
- Organic Foods
7Energy
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9Investment Opportunities
- Value-added opportunities
- Ethanol
- Polygeneration
- Bio-Mass
- Petrochemicals
- CO2 Sequestration
- Hydrogen
- Nuclear Energy
- Goods and Services
10Minerals and Mining
11Current Conditions
- Mining
- Sales exceeding production
- Production increasing
- Prices increasing
- Revenues increasing
12- Potash Production
- Ten mines two solution / gt 200 years of reserves
- PCS IMC Kalium (Mosaic) in Top Five Canadian
Mines - 2004 all-time prod. Record _at_ 14.4 mt
- Industry in expansion 22 mt capacity forecast
for 2008
13Value-Added Opportunities
- Health Side
- Medical devices
- Dyes
Fuel Side Opportunities
14Saskatchewan Kimberlites
- Kimberlite Size
- Saskatchewan bodies vary from 3 to 250 ha
15Forestry
- Recovering from softwood lumber tariffs
- Issues continue with the rising Canadian dollar
and the over-supply of pulp and paper - Strategy
- Full, sustainable utilization of the resource
- Use resource allocations to maximize value-added
operations - Areas with greatest potential
- Use leverage of natural resources and residual
products to attract reliant value-added
processing.
16Investment Opportunities
- Primary Forestry
- West side
- Small diameter black spruce
- lumber, pulp, OSB
- Wood Residues
- energy, manufactured products (MDF)
- Remanufacturing
- finger-jointing
- Value-Added Wood Products
- hardwood furniture components
- Pre-Manufactured Housing
17Manufacturing Current Conditions
- Manufacturing
- Sales and employment are steadily increasing
- Exports on the rise
18Manufacturing Growth
19Industry Cluster
Communications Technologies
Plastics Rubber Products
Fabricated Metal Products
Electronics Instrumentation
Cabinetry Wood Products
Textiles
20Manufacturing Sectors
- Key Sectors (2006 shipments)
- Food (21.5)
- Wood and Paper (6.8)
- Chemical (8.6)
- Printing and Related (1.1)
21Manufacturing Sectors
- Key Sectors (2006 shipments)
- Fabricated Metal Products (5.6)
- Machinery Manufacturing (7.7)
- Transportation (3.1)
22Manufacturing Sectors
- Key Sectors (2006 shipments)
- Electrical Equipment and Appliances (2.0)
- Plastics and Rubber (0.8)
23Strong Industrial Base
- This base is made up of companies that
- produce steel, wood, plastics composites,
- profile steel, plastics, fiberglass, wood,
textile and other materials, - router, mill and machine steel, plastics,
fiberglass, wood and other materials, - injection-mold parts, roto-mold parts, vacuum
form and cast products, - assemble, join and weld the various components
into subcomponents and final products - assemble electronics, instrumentation,
communications technology and wiring, - coat and finish the final products.
24Investment Opportunities
25Advanced Technology
- Information and communications technologies
- Life Sciences
- Environmental Services
- Innovation and Infrastructure Services
26Investment Opportunities
- New crop varieties and crop variety
identification systems - Crop and animal product processing and
fractionation - New food and industrial products from biological
feedstock - Bio-fuels, bio-oils and renewable energy
- Bio-chemicals and bio-composites
- Bio-pharmaceuticals and therapeutics
- Genomics
- Animal health products, animal vaccines and food
safety products - Microbial bio-controls
- Microbial bio-fertilizers and plant nutrient
systems - Information technology systems and hardware
27Investment Opportunities
- Vibrant and growing / world-class abilities in
- Life sciences / agricultural biotechnology /
molecular farming - Information communications technologies,
- Controls and electronics
- Bioproducts
- Biofuels / biodiesel
- nutraceuticals,
- biocomposites, etc.
- Micro-electro-mechanical systems (MEMS)
nanotechnology - Genomics proteomics
MEMS/Nanotechnology
28International Desk
- Conduct team Saskatchewan trade missions to
targeted regions - Increased pubic identification with
Saskatchewans and the Government of
Saskatchewans relationship with trade and the
international market - Increased participation in the development and
attendance in trade missions. - Increased investment activities by Saskatchewan
companies.
29Where Manufacturing Fits
Saskatchewan GDP- 2005
30Where Manufacturing Fits
Saskatchewan Employment - 2005
31Jobs in Manufacturing
Employment by Key Sub Sectors - 2005
32Jobs in Manufacturing
33Manufacturing in Saskatchewan
- Employs over 30,000 employees
- 10.4 billion in shipments in 2006
- Employ state of the art manufacturing
technologies and equipment - Embrace lean manufacturing practices to be more
competitive
34The Saskatchewan Edge
- Tax structure 10 lowest corporate income tax
in Western Canada for Manufacturers and
processors (MP) - 5 provincial tax credit on equipment purchased
for MP - 100 of eligible RD expenses can be used against
net income for the purpose of calculating federal
tax credits - 15 provincial income tax credit for RD
35Lower Costs, Great Location
- A recent KPMG study comparing business costs in
121 cities across Europe, Japan and North America
finds Sask cities very cost competitive for
manufacturing - A days drive to 250,000 farm businesses in
Canada and US Midwest
36Government Committed to Growth
- Programs to encourage the development of new
technologies - Programs to help companies become more efficient
- Training programs JobStart/FutureSkills
- SIIT Manufacturing Project
37What are the Opportunities?
- Jobs well paying, skilled jobs in a dynamic
industry - Training
- Business opportunities joint ventures, start ups
38What do we do?
- The Manufacturing Team of Saskatchewan Industry
and Resources is dedicated to the growth and
promotion of Saskatchewans Manufacturing Sector. - To do this, we focus on several areas
39I. Lean Initiatives
- Since 1999 SIR has introduced manufacturing
companies to Lean Thinking. - We work with individual companies as well as
national organizations like the Canadian
Manufacturers and Exporters (CME) that have
developed consortium building and lean enterprise
expertise.
40Lean Thinking
- What is Lean Thinking?
- Simply put, Lean Thinking is a focus on
eliminating waste so that all processes in the
total system, process, or production line add
value from the Customer perspective.
41Lean Thinking is About
- Creating a positive and safe work environment
- Empowering all staff to make improvements to
their processes and workplace - Encouragement from the leaders of the company
42Why Become Lean?
- In todays global marketplace with a high
Canadian dollar and trade border issues,
companies must become more competitive. - The application of Lean Thinking will reduce
waste, improve productivity, and give companies
that competitive edge needed to survive.
43The 5 Principles of Lean Thinking
- Define value from the customer perspective
- Identify the value stream
- Make the process flow
- Pull from the customer
- Head toward perfection
447 Forms of Waste
- Overproduction
- Waiting (time)
- Transporting
- Inappropriate processing
- Unnecessary inventory
- Unnecessary motions
- defects
45Success in Lean
- There are many Lean resources available.
- Lean Training is not a one time course, but must
be a corporate long term commitment. - In our experience companies have a greater chance
of success by working together.
46Lean Consortiums
- The Manufacturing Team works with Saskatchewan
companies to form consortiums of manufacturers
47Results
- Some results from our Consortiums
- Reduce Inventory by 56
- Decrease bank debt by 50
- Deliver product in 10 days rather that 2 months
- Engineering time reduced to 2 hours from 2 weeks
- Space requirements reduced by 35
- Space requirement reduced by 200
- Productivity increased by an average of 55
48II.Corporate Procurement Committee
- The Manufacturing Team chairs the provincial
Corporate Procurement Committee (CPC) - The CPC consists of members from major
Saskatchewan corporations representing the
Crowns, the private sector, and government
departments.
49CPC Mission Statement
- The Mission of the Corporate Procurement
Committee is to promote Saskatchewan economic
growth by developing quality, competitive
suppliers of goods and services in Saskatchewan.
50CPC Goals and Objectives
- To maximize Saskatchewan content in the
acquisition of goods and services - To increase awareness of Saskatchewan supplier
capabilities - To encourage the export of goods and services by
Saskatchewan suppliers
51CPC Goals and Objectives
- To identify opportunities to Saskatchewan
suppliers - To maximize Aboriginal content in the acquisition
of goods and services - To encourage the implementation of Quality
Assurance Programs by Saskatchewan suppliers.
52CPC Action Plan
- Meet as a committee five times per year
- Share information on suppliers, new products,
success stories, and Saskatchewan content
statistics - Visit supplier facilities in conjunction with
meetings
53CPC Action Plan
- Prove information to SIR to maintain databases
i.e. Manufacturers Guide - Share information on policies and programs
- Promote the selective use of offset counter trade
agreements to support Saskatchewan suppliers.
54CPC Success Stories
- Hitachi Canadian Industries manufacture of wind
towers for SaskPower - Del-Air manufacture of pedestals for SaskTel
and SaskPower - Country Leather manufacture of leather gloves
for SaskPower - Crestline Coach manufacture of specialty
vehicle for Casino Regina - SaskPower developed Montrose Metals near Donovan
to fabricate cylindrical buried cable warning
markers among other line hardware items. SaskTel
and SaskEnergy also purchase warning signs and
sign posts from Montrose Metals.
55CPC Success Stories
- The major crowns combined requirements to have
Daily Diaries manufactured in Saskatchewan.
Mercury Graphics, Saskatoon continue to print the
diaries on an annual basis. The major crowns
along with the support from IPSCO combined to
have plastic window scrapers manufactured in
Saskatchewan. The plastic scrapers are still
available from Ellenn Plastics Manufacturing
Ltd., Saskatoon. The committee participation
has allowed the opportunity for continual
exchange of valuable information between the
participating members.
56CPC Meetings for 2007
- April 18-19 Lloydminster
- June 5-6 Weyburn
- September 18-19 La Ronge
- November 28 Regina
- Interested in presenting to CPC? Call us.
57III. Federal procurement
- The federal governments Industrial and Regional
Benefit (IRB) policy is designed to bring highly
technical and highly skilled work to Canadian
companies and educational institutions. - Winners of large defence contracts must spend the
contract equivalent in Canada either directly in
the form of suppliers to the project or
indirectly, through research and investment in
high tech areas.
58Role of Government
- The Government of Saskatchewan, through the
department of Industry and Resources, assists
Saskatchewan companies in finding IRB
opportunities in aerospace and defence.
59Attracting Investment (COND)
- In October 2007, Saskatchewan will host the
Western Aerospace Alliance Conference.
www.waa-sask2007.com - With NATO Flying Training in Canada (NFTC) in
Moose Jaw, the presence of major aerospace
companies such as Bombardier, CAE, BAE Systems,
and Frontec provides a positive influence and
nucleus for the growth of the aerospace sector in
Saskatchewan.
60Saskatchewan aerospace and defence capabilities
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64Whos visited our Manufacturers?
- Boeing
- Agusta Westland
- Rockwell Collins
- BAE Systems
- Northrop Grumman
- Rheinmetall
- General Dynamics Land Systems (Canada)
- L3
- Rolls Royce
- Alenia North America
65Defence Spending
- Projected defence spending is 20 billion over
the next 5 years! - Tremendous opportunity for Saskatchewan companies
and educational institutions to explore this
market.
66Trade Shows and Conferences
- CANSEC Defence Industries trade show Ottawa
April 11-12, 2007 - Atlantic Canada Aerospace, Security and Defence
exhibition Sept 2007 - Western Aerospace Alliance, Saskatoon, October
24-26, 2007
67IV. Manufacturers Guide
- Over 1300 companies are currently listed
- free of charge to any manufacturer that
manufactures at least 51 of the product in
Saskatchewan - Follow the link at www.ir.gov.sk.ca
- Guide is searchable by company name, product and
location
68V. Labour market development
- Canadian Manufacturers and Exporters
- - Management Issues Survey (2006)
- 46 of manufacturers reported difficulties in
finding people - 23 indicated difficulties in attracting entry
level workers and 20 noting difficulty in
retaining employees these numbers were 43 and
38 respectively in Saskatchewan. - Other areas of difficulty in recruiting included
plant managers, general managers, IT
professional/technicians, equipment operators,
engineers, sales and marketing, welders,
electricians and machinists.
69What Industry in Saying
70What Industry is Saying
- Canadian Manufacturers and Exporters
- - Management Issues Survey (2006)
- 13 - No problem attracting or retaining skilled
workers - 23 - Significant increases in Labour Costs
- 19 - Experiencing shortages but not a constraint
on growth - 26 - Specific skill shortages constraining
growth - 13 - General labour shortages constraining
growth - 2 - Shortages require firm to close/forgo
product lines
71What Industry is Saying
- Statistics Canadas Business Conditions Survey
October 2006 - Of the 300 manufacturers surveyed in
Saskatchewan - 44 saw employment increasing in the next three
months - 15 indicated that a Skilled Labour Shortage was
a source of production difficulties and - 10 indicated that Unskilled Labour Shortages was
a source of production difficulties. - Note results from 300 manufacturers are weighted
by a manufactures shipment or employment,
therefore, larger manufacturers have a larger
impact on results.
72V. Labour market development
- Saskatchewan Industry and Resources is working
with employers and training institutes to find
solutions to the skilled labour shortage - The SIIT Welding project is one example. We also
work with education/industry councils and the
K-12 school system to find innovative options.
73Conclusion
- The Manufacturing Team would like to work with
you to grow and expand our manufacturing sector.
Please contact us for further information on
Lean, the CPC, federal procurement or anything
else related to manufacturing.
74Questions
75Manufacturing Team
- Scott Summach, Manager
- Manufacturing Team
- (306) 933-7207
- ssummach_at_ir.gov.sk.ca
- Colleen Mackenzie
- Business Development Mgr, Manufacturing Aerospace
Defence - (306) 933-7209
- cmackenzie_at_ir.gov.sk.ca
- Monique Lischynski
- Business Development Mgr
- Manufacturing
- (306) 933-7484
- mlischynski_at_ir.gov.sk.ca