Good morning.
It's a pleasure to speak to you all today as you discuss the future of advanced manufacturing in Ontario and Canada.
I am proud to say that Canada has one of the best job creation records in the G7, we are among the leaders in economic growth, and we have one of the most welcoming destinations for investment in the world.
In this year's Focus on Tax report, KPMG concluded that Canada's taxes are the most business-friendly in the world. The same report found Canada's total tax costs are 46% lower than the United States.
In fact, last year, Canada leapt from sixth place to second place in Bloomberg's ranking of the most attractive destinations in the world for business.
We have a strong job growth record compared to other countries, with employment in Canada increasing by more than 1.1 million since 2006.
Ladies and gentlemen, from lowering taxes, to cutting red tape, to signing free trade agreements, our Government has been setting the right macro-economic conditions to ensure Canadian businesses succeed.
But we cannot be complacent, which is why our priorities continue to be creating jobs, growth and long-term prosperity.
That is why my Agency, the Federal Economic Development Agency for Southern Ontario, or FedDev Ontario as we're commonly known was created ─ to help build on the strengths of this region. And I must say, in just five years, I'm proud of the results we are seeing in southern Ontario.
FedDev Ontario has invested nearly $1.2 billion to support businesses, organizations and communities here in southern Ontario. This has resulted in partnerships with more than 5,300 organizations and more than $1.5 billion in additional leveraged investments from almost exclusively non-government sources.
As you know, manufacturing remains critical to our nation's economy and long-term prosperity.
This is nowhere more apparent than here in Ontario. Last year, more than 30,000 manufacturing establishments generated revenues of $270 billion.
In fact, this past spring, Ontario's manufacturing sales rose to their highest point since 2008. And manufacturing sales for the province in the first half of this year increased by five percent over the same period in 2013. Across Canada, manufacturing sales increased in 2013 for a fourth year in a row.
As I'm sure the business owners in the audience can attest—Ontario continues to be a great place to do business. Here in southern Ontario in particular, we have a highly educated and diverse population; an excellent network of universities and colleges; a business-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 are home to world-leading companies. In fact, right 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.
We have real advantages here, and at the same time we also need to be realistic. Your sector, as you well know, is faced with global competition like never before.
We all know that technology is changing faster than ever before and processes, equipment and skills can become obsolete overnight.
And if technology is changing quickly, the consumer landscape – what consumers know and demand is changing even faster. A product in high demand one month can seem outdated the next.
Yet this has been the case for some time. Saying that technology moves quickly is, by now, obvious. But it wasn't very long ago that when we said the word manufacturer, we pictured conveyor belts and manual labour. Today's Canadian manufacturer has changed that image. Now, when we say manufacturing, we have to picture establishments that are high-tech, high-skilled, innovative and responsive to consumers. Robotics, 3D printing and customization are the new reality.
Engineers, programmers and designers have become the new faces of Canadian manufacturers.
These are indicators of the changes within manufacturing. As the industry moves towards more innovative and efficient ways of doing things, the creation of new jobs that will very likely be higher paying and higher quality is becoming a reality.
While some manufacturers have already made the necessary adjustments to adapt to this changing landscape, many more need to seize the opportunities for change.
Our 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.
It bears repeating that 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 FedDev Ontario 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. 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 FedDev Ontario's investment of more than $38 million, the CME has helped more than 700 small- and medium-sized manufacturing businesses in southern Ontario to become more productive and better equipped to compete in world markets.
And as our manufacturers become more competitive, this benefits their associated supply chains and opens up even more economic opportunities.
This is why we have targeted some of FedDev Ontario's new programming to help the manufacturing sector further.
Last December, I launched the Advanced Manufacturing Fund—or AMF.
The AMF is intended to accelerate the commercialization of innovations that are first-in-Canada and to encourage the adoption of new technologies.
And it supports collaboration between the private sector, research institutions and post-secondary institutions.
AMF will bring real benefits to the sector and to the economy as a whole.
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 the AMF, a total of $200 million over five years is available across 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 over five years that can support projects across various sectors, including manufacturing.
The first initiative, Investing in Business Innovation, will be of interest to early-stage companies and entrepreneurs. It helps 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.
Investing in Commercialization Partnerships is the third initiative. Canada is extremely well positioned with our research strength at our colleges, universities, and research institutions. However, we need to get better at moving that knowledge out into the marketplace.
This initiative supports business-led partnerships with a focus on developing globally-competitive products and services by supporting collaborations among a cross-section of companies and the region's public research institutions. These projects are expected to strengthen existing or emerging technology clusters or to develop innovation platforms that allow private sector companies to test, refine and develop applications and to bring products from lab to market.
The fourth Southern Ontario Prosperity Initiative is called Investing in Regional Diversification. Southern Ontario remains home to many small communities with one or two main employers, which creates a unique challenge when an economic downturn hits. This initiative is geared at helping to diversify a community's economy.
I encourage you to visit FedDevOntario.gc.ca for the specific details of these funding initiatives and to see what programming applies to your business.
Beyond this programming suite designed specifically for southern Ontario, the federal government continues to offer 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.
We have ensured fair and transparent government procurement. 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.
And we have also opened the door to new markets with millions of new customers with free trade agreements as I mentioned earlier.
Ladies and gentlemen – Canada is now in a position where the landscape for business growth in our country has never been as fertile. And I am proud to be from a country that is known for making things that make our lives better.
For our manufacturers to continue to succeed, we all need to work together to find ways to keep being innovative and productive. And by together, I mean industry, government and research sitting at the same table.
More than ever, collaboration is required as technologies converge. For instance, additive manufacturing or 3D-printing, is just such a technology combining knowledge and expertise on lasers and new materials that include resins, polymers and thermoplastics. This technology convergence calls for experts in separate field of expertise to develop networks; and it calls for firms to work with their supply chain on technology adoption.
FedDev Ontario stands as a partner in helping the manufacturing sector to succeed That said, we all have a part to play in ensuring you remain an important part of southern Ontario's long-term prosperity.
It is fitting that my remarks here today are followed by a government panel session called, "The Power of Partnerships". This will be an important discussion on the need for Canadian researchers, companies and government organizations to partner-up.
This is what the power of partnerships is about: consolidating our strengths to support Canadian industries globally. Developing and consolidating networks across industry is of critical importance and is why this event matters so much: it brings expertise from engineering, material science, metallurgy and IT together, for the long term competitiveness of our manufacturing sectors.
We look forward to seeing advanced manufacturers continue to play a major role in bringing even more prosperity to Canada.
Thank you and merci.
