2020-21 Departmental Results Report

It is my pleasure to present the 2020-21 Departmental Results Report for the Atlantic Canada Opportunities Agency (ACOA).

In a year marked with uncertainty and rapidly shifting priorities resulting from the global COVID-19 pandemic, the Government of Canada remained committed in its continued efforts to meet the evolving needs of Canadians and the Canadian economy.

In Atlantic Canada, those efforts included a number of remarkable contributions from ACOA.

The Agency’s delivery of emergency relief measures under Canada’s COVID-19 Economic Response Plan helped businesses and communities cope with the economic impact of the pandemic. The Agency spent more than $206 million through the Regional Relief and Recovery Fund, as well as over $31 million through the Canadian Seafood Stabilization Fund, to support vulnerable sectors of the economy during a time of unprecedented uncertainty. Furthermore, the Agency launched the Regional Air Transportation Initiative, which is helping regional air services rebound from the challenges caused by the pandemic as Canada moves further into recovery.

In addition, ACOA administered the Black Entrepreneurship Program’s Ecosystem Fund to allow not-for-profit Black-led organizations in Atlantic Canada to develop or expand services for Black entrepreneurs, and continued to deliver its regular suite of programming to foster innovation, trade and growth. For example, through the:

• Regional Economic Growth through Innovation program, ACOA continued to help businesses innovate, scale up and improve their productivity, in particular by adopting digital technology to become more agile, resilient and competitive;
• Women Entrepreneurship Strategy, ACOA spent nearly $3 million to help women business owners grow their companies and help non-profit, third-party organizations provide them support;
• Accelerated Growth Service, ACOA spent $20.9 million to support 75 client-led growth projects;
• Atlantic Trade and Investment Growth Strategy, ACOA and the four Atlantic provincial governments backed 24 projects spending more than $8 million to support export growth in 10 strategic sectors; and
• Canadian Experiences Fund, ACOA spent over $2.5 million in support of 40 projects to address the needs of the tourism sector in Atlantic Canada.

The Agency spent more than $171 million to 772 projects designed to help Atlantic communities grow and become more economically diverse. Moreover, in support of the path to reconciliation, ACOA spent $16.7 million in 114 projects that advanced indigenous economic priorities. 

Through all these initiatives and more, we continued to deliver on our commitment to foster a dynamic and growing economy that creates jobs, opportunities and a better quality of life for all Canadians, including those from diverse backgrounds, such as women, Indigenous peoples, racialized Canadians, persons with disabilities and LGBTQ+ groups.

I invite you to read this report to learn more about how ACOA is working to foster a dynamic, growing and inclusive economy that creates jobs, opportunities and a better quality of life for all people of Atlantic Canada.

Results at a glance

The COVID-19 global pandemic created challenges in 2020-21 unlike any in the Atlantic Canada Opportunities Agency’s (ACOA) 33 years of working with entrepreneurs and business leaders to strengthen and diversify Atlantic Canada’s economy. The Agency has been at the forefront of the Government of Canada’s (GC) COVID-19 economic response in Atlantic Canada, rolling out emergency relief programs on an unprecedented scale while supporting the GC’s commitment to create over one million jobs to restore employment to pre-pandemic levels. In 2020-21, ACOA nearly doubled its grants and contributions budget to roll out programs and projects to keep Atlantic Canada strong. This is estimated to have helped create or maintain over 16,500 jobs^{Footnote 2} with expenditures of $496.2 million in 2,797 projects. This includes more than $260 million in COVID-related support in more than 800 projects across all Agency programs. The Agency worked with Atlantic Canadian businesses, communities, stakeholders, federal departments and the four provincial governments to monitor and analyze regional impacts, develop responsive policy and program solutions and protect the economy.

In 2020-21, regional development agencies (RDAs), including ACOA, launched and delivered the Regional Relief and Recovery Fund (RRRF) to provide additional support to businesses and communities to cope with and recover from the pandemic. Since the launch of the RRRF in April 2020, the six RDAs and nearly 270 Community Futures Organizations delivered over $1.7 billion to close to 23,700 businesses and organizations, helping to preserve over 188,000 jobs across the country. In addition to the RRRF, ACOA delivered the Department of Fisheries and Oceans’ Canadian Seafood Stabilization Fund (CSSF) in Atlantic Canada, with a regional allocation of $42.7 million in 2020-21^{Footnote 3}, and launched the Regional Air Transportation Initiative (RATI) with a regional allocation of $10 million in 2020-21 of $41.2 million over two years^{Footnote 4} and the Black Entrepreneurship Program’s Ecosystem Fund’s $270,000 regional allocation in 2020-21 of $2.6 million over four years. This is in addition to regular offerings, including the Regional Economic Growth through Innovation Program along with its Women Entrepreneurship Strategy’s Ecosystem Fund, the Canada Coal Transition Initiative, and the Canadian Experiences Fund. ACOA focused on priorities that are critical for sustainably growing Atlantic Canada’s economy, such as advanced manufacturing, clean growth, life sciences, food, tourism, skills, indigenous economic development, oceans, innovation ecosystems and immigration. Investments embraced inclusivity and reached out to all groups of Atlantic Canadians in the economy across all regions. ACOA programs were delivered with an inclusive lens to ensure under-represented groups were supported, including official language minority communities. Activities included the following:

Businesses – To mitigate COVID-19 disruptions, ACOA helped firms adapt and respond to emerging challenges by addressing safety requirements, increasing e-commerce capacities, building on strengths in key sectors, and by pivoting quickly to find new market opportunities that minimize long-term disruptions to exports. As an exception, the Agency also provided liquidity financing required to respond to pressures created by the pandemic. The Agency spent $243.1 million for 1,618 projects that support the development of products and services, the adoption and adaptation of advanced technology, and the acquisition of skills and market knowledge. It supported company-oriented growth plans under the Accelerated Growth Service, worked with federal and provincial partners to deliver on the Atlantic Trade and Investment Growth Strategy, and helped hard-hit tourism operators. With ACOA’s support:

• Labrador Fishermen’s Union Shrimp Company Limited, a Newfoundland and Labrador Indigenous-owned company, implemented health and safety measures, acquired new fish processing equipment to automate operations, and enhanced its cold storage.
• Prince Edward Island’s regional tourism associations were able to adapt to the unprecedented downturn in global tourism due to COVID-19, quickly identifying operators in need and delivering support to help them safely welcome tourists when travel demand resumes.

Technologies – ACOA spent $78.3 million for 388 projects to support the development and commercialization of innovative technologies, including advanced and clean technologies. During the COVID-19 pandemic, this helped local companies and organizations develop digital technology to protect or improve productivity, resiliency and global competitiveness. The Agency fostered partnerships and collaborations between the private sector, and research and business support organizations. It also supported business accelerators and incubators in the region to address gaps in support of start-ups. As a result of ACOA’s support for technology:

• New Brunswick-based TechImpact’s Digital Boost Program leveraged strong partnerships to accelerate businesses’ digital transformation in the wake of COVID-19.
• Nova Scotia’s Nexus Robotics furthered its smart robotic agriculture weeding technology with field trials, additional research and development, manufacturing design work, and commercialization activities to bring this technology to market.

Communities – ACOA fostered inclusive growth by spending $171.4 million in 772 projects to develop and diversify communities. The Agency helped attract and retain global talent, supported strategic investment to help communities adapt to changing economic circumstances, and engaged with governments, businesses and community stakeholders to foster economic growth in Indigenous communities. During the COVID-19 pandemic, investments by ACOA and the Community Business Development Corporations (CBDCs) helped alleviate the impacts of the pandemic, especially in rural and remote communities with small and highly interwoven economies often relying on a single industry (e.g., main street businesses relying on a major local employer affected by COVID-19). It also spent $15.7 million to help businesses owned or led by women entrepreneurs grow. With ACOA’s support:

• The Nova Scotia Native Women’s Association provided technical support to female Indigenous entrepreneurs to allow them to access the market through online sales and e-commerce, replacing their traditional venues for sales such as Pow Wows and Mawio’mi, which could not take place due to the pandemic.
• The Pan-Atlantic Women in Business initiative launched a program aimed at improving access to consultants to allow women-owned businesses to navigate COVID-19 disruptions.

For more information on ACOA’s plans, priorities and results achieved, see the “Results: what we achieved” section of this report.

Results: what we achieved

Core responsibility: economic development in Atlantic Canada

Description

Support Atlantic Canada’s economic growth, wealth creation and economic prosperity through inclusive clean growth and by building on competitive regional strengths. Help small and medium-sized enterprises (SMEs) grow through direct financial assistance and indirectly through business support organizations. SMEs become more innovative by adopting new technologies and processes and pursuing new avenues for expansion and market diversification in order to compete and succeed in a global market.

Results

In 2020-21, the Agency swiftly helped businesses and business support organizations find new ways to operate in a disrupted and digital environment as a result of COVID-19 restrictions. COVID-19 relief measures nearly doubled ACOA’s grants and contributions budget, going from $275 million to $514 million, which allowed it to support and guide many companies to adapt to stay open, notably by automating processes and digitizing operations. Many SMEs were able to maintain or increase revenues and reach new markets while keeping employees on the payroll by taking their business online, developing new products and services, and implementing new digital marketing tactics, tools and resources. For example, ACOA directly helped over 550 businesses preserve an estimated 6,200 jobs in Atlantic Canada with the RRRF. Combined with support delivered by the Atlantic Association of CBDCs, the RRRF helped over 2,650 businesses and organizations preserve over 12,000 jobs.

The Agency excelled at delivering temporary and regular programs in a timely and efficient way, building in flexibility to meet the changing needs of businesses as they dealt with the effects of the pandemic. It did so collaboratively with several federal departments, including other regional development agencies and the ISED portfolio, provincial governments and stakeholders in the design and delivery of programs. To better understand their needs, the Agency also actively engaged Atlantic businesses, community stakeholders and support organizations such as the Canadian Federation of Independent Business, chambers of commerce, the New Brunswick Business Council, the Atlantic Provinces Economic Council, downtown development associations, CBDCs and other business associations.

In 2020-21, the Agency invested in 2,797 projects for a total of $496.2 million in spending. This includes delivery of ongoing programs such as the Regional Economic Growth through Innovation (REGI) Program in Atlantic Canada to help companies across a range of sectors expand their capacity, hire more people and acquire new, specialized technology to improve their productivity. ACOA also delivered temporary relief programs such as the Atlantic portion of the Government of Canada’s more than $1.7 billion RRRF which represented 535 projects worth $206.2 million of Agency spending in Atlantic Canada. In addition, ACOA delivered the Atlantic component of the CSSF which amounted to $31.7 million spent by the Agency in 126 projects in the region. ACOA also launched the RATI and the Black Entrepreneurship Program’s Ecosystem Fund.

Project investments targeted strategic sectors such as manufacturing and processing, seafood and aquaculture, tourism and cultural industries, information and communications technology, and oceans. Efforts promoted advanced manufacturing, digital transformation, the start-up ecosystem and exports as drivers of competitiveness. Activities also focused on indigenous economic development and supported a skilled workforce through immigration. During the COVID-19 pandemic, the Agency had to rethink its program supports to respond to the unprecedented challenges faced by regional businesses. Under these exceptional circumstances, ACOA provided liquidity supports, paused repayments, and supported new sectors and territories in both urban and rural areas. For example, ACOA worked closely with health organizations to source essential medical and personal protective equipment for health care and industrial use during the early days of the pandemic. ACOA acted as a catalyst for economic development and a convener of partners to take joint action. It played a pathfinding role to improve access to federal investments for Atlantic businesses and communities.

The Agency’s work was in line with the Minister’s mandate letter commitments to deliver regional economic programming that is responsive to the unique opportunities and challenges in Atlantic Canada, including acting as a trusted resource for businesses and communities. Efforts introduced sector-specific measures for hard-hit industries including tourism and advanced the Atlantic Loop initiative in support of the Atlantic Growth Strategy’s objectives. This contributed to the GC’s overall goal of creating over one million jobs, restoring employment to levels prior to the pandemic by leveraging ACOA’s unique expertise.

Businesses are innovative and growing in Atlantic Canada

In 2020-21, ACOA supported businesses at various development stages to accelerate their growth, assist them in scaling up, and enhance their productivity and competitiveness in both domestic and global markets. Firms supported by ACOA programs reported revenue growth, slightly higher than the set target of 8%, at an average rate of 8.2% in 2019-20.^{Footnote 5} The Agency, in collaboration with federal and provincial partners, targeted strategic support for 15 high-growth potential firms under the Accelerated Growth Service during the year, for a total of 111 Atlantic Canadian firms enrolled and 195 projects since 2017. These efforts helped support the region’s 590 high-growth firms in 2018.^{Footnote 6}

Positioning companies to leverage opportunities in the global ocean sector was key, and ACOA worked with partners to maximize the economic benefit of the blue economy while ensuring long-term sustainability. ACOA contributed to the development of the new Blue Economy Strategy and the Ocean Supercluster by supporting ocean-related sectors and SMEs operating in them, coastal regions and Indigenous communities.

COVID-19 created significant challenges for global supply chains and export markets. Over the course of 2020-21, ACOA spent $8.8 million in trade and investment initiatives to help businesses address these challenges and grow new and existing markets. This included supporting tools for export readiness, adapting to virtual trade shows to foster trade relationships, and attracting foreign direct investment to high quality development sites across the region. Some of these initiatives were supported through the Atlantic Trade and Investment Growth Agreement, under which the Agency and the four Atlantic Provinces spent nearly $1.9 million for 17 projects to support export growth in 10 strategic sectors. These collaborative initiatives addressed the needs of sectors greatly impacted by COVID-19, supported SMEs’ pivot to e-commerce, virtual presence and access to new markets such as the European Union. For example, the agreement supported a project to increase the global e-commerce and online marketing capacity of Atlantic Canada companies across multiple sectors with interests in the European, Asian (Japan, South Korea and Southeast Asia) and Mexican markets. Atlantic Canada’s exports fell by 16.6% from $28.7 billion in 2019 to $23.9 billion in 2020, a greater drop than the national average of 11.5%, driven by a global decline in demand for Atlantic Canadian goods such as seafood. In spite of the decline, export levels for Atlantic Canada in 2020 remained on track with the Agency’s target of $24 billion, which considered the impacts of the pandemic.^{Footnote 7}

Pandemic restrictions had a devastating impact on Canada’s tourism industry - on jobs, businesses and communities – with full recovery expected to take three to five years. Recognizing the disproportionate effect the pandemic had on the sector, tourism operators were provided much needed liquidity assistance through the RRRF, 25 percent of which was earmarked for the tourism sector. ACOA also worked with the four provincial governments in Atlantic Canada to support the tourism sector through the $4.5 million Atlantic Canada Tourism Recovery Initiative. In addition, the Agency spent $2.5 million to support 40 projects to address the needs of the tourism sector in Atlantic Canada through the Canadian Experiences Fund.

ACOA ensured that Atlantic Canada had a strong voice and that advocacy activities were strategically aimed at helping the region recover from the COVID-19 pandemic and take advantage of new and emerging opportunities. Advocacy and engagement supported pathfinding that matched regional economic development opportunities with federal funding. For example, ACOA identified and developed a personal protective equipment supplier database and ensured that information detailing federal COVID-related support programs was disseminated to Atlantic Canadian stakeholders aligned with the joint federal priorities of supporting the economy through the pandemic and supporting the effort to combat COVID-19.

ACOA positioned and promoted regional industry by leveraging major Canadian Coast Guard and defence procurement opportunities through the application of Canada’s Industrial Technological Benefits (ITB) policy. The Agency worked with international aerospace and defence firms to facilitate engagement with regional industry and research institutes through capability requests, “industry days” and other tools adapted to meet the current environment. ACOA facilitated 406 meetings between regional stakeholders and prime contractors, helping secure approximately $305.2 million in ITB commitments in the region.

ACOA fostered the adoption of advanced manufacturing technology and business activities between Atlantic Canada and international markets. For instance:

• New Brunswick’s Sparta Manufacturing is a leader in the design of construction, demolition, and waste recycling systems. The company implemented skills improvement for its national and international market expansions and its lean operations, positioning it for increased sales, profitability and sustainability in the green economy.
• The Scale-Up Hub Atlanta initiative helped high-potential Atlantic Canadian Information Technology companies navigate a complex yet lucrative market. It will enhance collaboration between Georgia’s innovation cluster and Atlantic Canada’s ecosystem.

Businesses invest in the development and commercialization of innovative technologies in Atlantic Canada

ACOA supported firms at all levels, from start-ups to established firms, to accelerate their growth and scale-up, and to enhance their productivity and competitiveness in both domestic and global markets. During the COVID-19 pandemic, this helped local companies and organizations adopt and develop digital technology to protect or improve productivity, resiliency and global competitiveness. The Agency assisted the creation and growth of inclusive regional business ecosystems that support firm needs and foster an entrepreneurial environment, particularly in key sectors such as food and oceans. Efforts from the Agency contributed to private-sector investment in research and technologies in the region, and the value of business expenditures in research and development (R&D) by firms receiving ACOA funding reached an average of $90.3 million^{Footnote 8} in 2018, surpassing the Agency’s target of $84 million.

The Agency built linkages with innovation ecosystems by working with other public, private and institutional partners and by supporting start-ups. It addressed gaps in support of start-ups by approving $14 million for 31 projects with Atlantic Canada’s business accelerators and incubators, providing targeted support to foster an entrepreneurial culture, developing a robust financing chain, and ensuring the early-stage companies’ pathways to globalization. It engaged with clients, other federal departments and agencies, organizations, academia and associations outside the GC to improve awareness of national funding sources and enhance industrial sector growth and innovation through R&D activities. A recent evaluation of business innovation programming found that “the programming offers unique features, including flexible, non-dilutive funding options and non-financial supports focused on promoting the growth of SMEs in the region.”^{Footnote 9}

The Agency also worked through the Atlantic Canada Energy Office on issues that affect the competitiveness of the region’s oil and gas industry and to support clean technology and energy. The Agency partnered with the oil and gas sector and the Government of Newfoundland and Labrador to raise awareness on steps needed to continue reducing greenhouse gas emissions. On clean energy, the Agency participated in the Atlantic Loop initiative and the Clean Power Roadmap for Atlantic Canada, a partnership of Atlantic provincial governments and Quebec, along with federal departments to outline a vision for clean energy collaboration over the coming decades. The Agency supported the commercialization and scale-up of clean technology companies with a focus on building commercial capacity in clean energy, air, water and decarbonization. In 2020-21, ACOA spent $32.9 million in 183 projects to accelerate the adoption of clean technologies. In 2019, clean technology exports from Atlantic Canada totalled $481 million.

With these activities, ACOA supported the development of new technologies and a strong innovation ecosystem:

• Newfoundland and Labrador’s Avalon Holographics advancing its company’s proprietary organic light-emitting diode display technology, known as the HoloPanel display, allowing it to meet client demands and expand to new markets. By replicating the experience of looking at real objects, Avalon's displays produce incredibly lifelike and comfortable, accessory-free experiences.
• The University of Prince Edward Island’s Canadian Centre for Climate Change and Adaptation attracted an expert team of researchers with its talent recruitment initiative, strengthening the capacity for research and development collaboration in its School of Sustainable Design Engineering and Climate Research Lab.
• Develop Nova Scotia, Nova Scotia Business Inc., and several private companies were able to support the development of a new multi-sensor seabed platform to test marine instrumentation. The platform will allow multiple organizations to test marine sensors and devices at the same time and reduce the costs and investment needed to bring new technologies to market.

Communities are economically diversified in Atlantic Canada

In 2020-21, ACOA supported the economic diversification of communities and promoted the inclusion of groups such as women, newcomers, Indigenous people, younger and older workers, and persons with disabilities in the Atlantic economy. ACOA has largely met its targets for economic diversification as demonstrated through the percentage of professional, science and technology-related jobs in the region, which represented 33.7% of all jobs in Atlantic Canada’s economy in 2020, above the Agency’s target of 31%.^{Footnote 10} The Agency’s efforts helped increase inclusiveness among SMEs. Between 2012 and 2016, women-owned ACOA commercial clients not only registered a higher than average labour productivity growth rate than men-owned ACOA commercial clients, but also outperformed women-owned businesses from a comparable group of Atlantic Canadian firms.^{Footnote 11}

Every dollar invested by ACOA in community projects leveraged $0.58 dollar in 2020-21.^{Footnote 12} Although this is below ACOA’s target, ACOA responded to increased demand for emergency support in communities. These community organizations often had little ability to share costs due to COVID-19 impacts and were sometimes ineligible for other emergency programs. Investments helped alleviate the impacts of the pandemic, especially in rural and remote communities with small and highly interwoven economies often relying on a single industry (e.g., main street businesses relying on a major local employer).

ACOA continued to help bridge the labour and skills divide and increase the region’s capacity to attract global talent and international students, retain newcomers through enhanced settlement support, and ensure immigrant entrepreneurs led successful businesses and were integrated into the economy, including in rural areas. A recent evaluation found that “the program delivery model, with local presence as well as convening and pathfinding roles, allows the Agency to be responsive to the diverse and changing economic needs across the region. ACOA has developed or strengthened collaborations to better address immigration, skills and labour, and funding.”^{Footnote 13} The Agency played a leadership role in building strategic partnerships with key federal departments such as Immigration, Refugees and Citizenship Canada and the Atlantic Provinces through the promotion of the Atlantic Immigration Pilot.

As part of ACOA’s commitment to reconciliation, the Agency continued to support the Federal Framework for Aboriginal Economic Development with Indigenous stakeholders such as the Ulnooweg Development Group, Indigenous leadership and businesses, the Atlantic provincial governments, and Indigenous Services Canada. In 2020-21, the Agency spent $16.7 million in 114 indigenous projects. ACOA also collaborated with ISED to develop an Indigenous industrial and skills analysis, which led to the identification of over 480 Atlantic Canadian Indigenous firms and 98 Indigenous-related academic activities (e.g., research, partnerships with post-secondary educational institutions).

In support of national programs, ACOA provided $94.2 million to the network of CBDCs and their associations for the Community Futures Program, with $81.6 million above regular funding levels in 2020-21 due to COVID-19^{Footnote 14}, to distribute to main street businesses and retailers in small, rural and remote communities throughout Atlantic Canada. A recent national, horizontal evaluation of the Community Future Program found that the programming contributed to “strengthening business practices, economic growth, job creation and diversification of rural economies.”^{Footnote 15}

ACOA spending of over $462,000 for nine projects supported official language minority community partners through the Agency’s Economic Development Initiative.

ACOA helped communities diversify, supported women entrepreneurs, and enabled partners to attract and retain skilled global talent in Atlantic Canada:

• The Epekwitk Assembly of Councils developed and implemented a plan for Indigenous economic development for Prince Edward Island’s Mi’kmaq community.
• New Brunswick’s FutureNB, Avenir NB (for francophones) and Future Wabanaki (for Indigenous peoples) programs fostered meaningful, inclusive experiential learning opportunities with employers.

Gender-based analysis plus

All ACOA programs were delivered with an inclusive lens to support groups that are under-represented in Atlantic Canada’s economy and among its entrepreneurs, including immigrants, Indigenous people and women. Targeted programming such as the Black Entrepreneurship Program’s Ecosystem Fund marks a continued focus on important members of the business community. COVID-19 impacted some groups and regions more heavily than others. The pandemic brought forward systemic biases in the economy and its workforce. ACOA went beyond its traditional client base with the RRRF to support SMEs where women, immigrants, youth, Indigenous peoples, and other under-represented groups were present. This broadened ACOA’s activities to new areas, new sectors such as retail, and new types of supports such as liquidity.

ACOA continued to integrate gender-based analysis plus (GBA+) into its analyses for new initiatives, program evaluations, data and reporting mechanisms – including agreements with Statistics Canada for disaggregated data – and awareness building across the Agency to highlight the economic benefits of inclusivity.

Experimentation

ACOA implemented the Digital Accelerator Pilot to help growth-oriented SMEs enhance digital adoption by implementing quick impact projects to bring them along digital transformation journeys. It offered support to hire expertise for digital assessment and strategy development and to implement small digital projects, generating quick return on investments and serving as building blocks for further investments along the digital adoption continuum.

2030 Agenda for Sustainable Development

ACOA contributes to the GC’s efforts to create good jobs and power economic opportunities through clean growth, clean energy and a low-carbon government. The Agency supports clean growth by investing in the transition to the green economy by supporting initiatives such as greenhouse gas mitigation, clean technology product development and adoption, as well as the green transformation and adaptation of SMEs. Together, these activities advance the Sustainable Development Goals 7 (Affordable and Clean Energy), 8 (Decent Work and Economic Growth), 9 (Industry, Innovation and Infrastructure) and 12 (Responsible Consumption and Production).

Results achieved