The New - 20/20 Magazine
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Canadian ManufaCturers & exporters’ <strong>Magazine</strong><br />
$9.95<br />
PM40587052 september/october <strong>20</strong>10 • volume 5 issue 4 • www.<strong>20</strong><strong>20</strong>magazine.ca<br />
<strong>The</strong><br />
<strong>New</strong><br />
AmericA<br />
Trade, invesTmenT<br />
And the pursuit of prosperity
insert fsC<br />
logo here<br />
CAnAdIAn mAnUFACTUrerS & exPOrTerS’ mAgAzIne<br />
september/october <strong>20</strong>10 • volume 5 issue 4<br />
PUblISher<br />
JEFF BROWNLEE jeff.brownlee@cme-mec.ca<br />
mAnAgIng edITOr<br />
maRiE mORdEN editor@cme-mec.ca<br />
<strong>20</strong><br />
ASSOCIATe PUblISher<br />
CreATIVe dIreCTOr/AdVerTISIng<br />
RONda LaNdygO ronda.landygo@cme-mec.ca<br />
lAyOUT And deSIgn<br />
CaRLOs CastRO <strong>20</strong><strong>20</strong>.material@cme-mec.ca<br />
26<br />
2<br />
inDustry insigHt<br />
8<br />
cme across canaDa<br />
10<br />
cme events<br />
12<br />
cme news<br />
42<br />
us watcH<br />
rePOrTerS/PhOTOgrAPherS<br />
aLExaNdRa BatEs, EK HORNBECK, d’aRCy<br />
JENisH, sEaN mCKiBBON<br />
hOw TO reACh US<br />
EmaiL magazine@cme-mec.ca<br />
PHONE 613-238-8888<br />
Fax 613-563-9218<br />
1500-1 Nicholas St., Ottawa, ON K1N 7B7<br />
leTTerS<br />
EmaiL editor@cme-mec.ca<br />
Canadian Manufacturers & Exporters Manufacturiers at exportateurs du Canada are trade marks of:<br />
Alliance of Manufacturers & Exporters Canada<br />
Publication Mail Agreement #40587052<br />
28<br />
In this issue<br />
30<br />
<strong>20</strong><br />
Understanding the new America<br />
to survive in a today’s economy it is critical you understand and<br />
adapt to your customers’ changing needs. <strong>20</strong>/<strong>20</strong> learns how<br />
canada’s largest customer was affected by the Great Recession<br />
to help you grow and thrive in the us.<br />
26<br />
Trade, investment and the pursuit of prosperity<br />
canadian ambassador gary Doer and us ambassador<br />
David Jacobson share their insights on the challenges and<br />
opportunities our two nations face in the pursuit of prosperity.<br />
28<br />
Canada-US: Friends and business partners<br />
canada and the us share the largest economic partnership in<br />
the world. Did you know in <strong>20</strong>09 our bilateral trade was $593<br />
billion? <strong>20</strong>/<strong>20</strong> maps the trade and history of our relationship.<br />
30<br />
Is President Obama good for Canada?<br />
our success is influenced by our neighbo(u)rs south of the<br />
border. eK Hornbeck speaks with leading manufacturers to<br />
discover if president obama’s committment of change has<br />
provided industry with an advantage here at home.<br />
<strong>The</strong> CME Difference: Advocacy | Intelligence | Business Opportunities | Best Practices | Networking<br />
Leadership makes the difference<br />
Canadian Manufacturers & Exporters (CME) is Canada’s largest industry and trade association. We represent businesses in all sectors of manufacturing and exporting activity across Canada. Our mandate is to<br />
promote the competitiveness of Canadian manufacturers and the success of Canada’s goods and services exporters in markets around the world. We focus on the issues that are most critical to our members<br />
- manufacturing competitiveness, US business opportunities, international markets, people and skills, energy and environment. <strong>The</strong>ir challenges are our priorities. CME represents Canada’s leading global<br />
enterprises and more than 85 per cent of our members are small- and medium-sized enterprises. Together, CME’s membership accounts for an estimated 75 per cent of total manufacturing production and 90<br />
per cent of Canada’s exports. <strong>20</strong>/<strong>20</strong> is published six times a year, by Canadian Manufacturers & Exporters.<br />
www.cme-mec.ca or www.manufacturingourfuture.ca
Industry InsIght<br />
This edition is dedicated to the<br />
Canada-US neighbourhood. It is filled<br />
with voices from business leaders and<br />
esteemed policy makers including<br />
Canada’s Ambassador Gary Doer and<br />
US Ambassador David Jacobson.<br />
For the last two years, as CME’s<br />
representative based in Washington,<br />
I have enjoyed a unique view of the<br />
neighbourhood. CME is the only<br />
Canadian business association with<br />
a full-time representative in the<br />
US and it has not gone unnoticed.<br />
Having an office in Washington<br />
gives CME member companies the<br />
benefit of regular insight into US<br />
decision making and congressional<br />
developments. It provides CME with<br />
access to US perspectives, as well<br />
as opportunities to partner with US<br />
business allies and coalitions. But most<br />
importantly, it provides CME with an<br />
informed voice in Canada and the US.<br />
I share this need-to-know<br />
information in CME’s US Watch, a<br />
monthly compilation of US legislative<br />
and regulatory action on issues<br />
ranging from border and import<br />
compliance, energy/climate change<br />
proposals, implementation of Buy<br />
American provisions and US reform<br />
of export controls. To read the<br />
latest issue, visit www.cme-mec.ca.<br />
In addition, the monthly column I<br />
write for <strong>20</strong>/<strong>20</strong> is designed to provide<br />
2 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
Connecting both sides of<br />
the border<br />
By BIrgIT MATThIESEN<br />
readers with a broader – in between<br />
the lines — perspective of trends here<br />
in the US, which has the potential<br />
for longer-term consequences for<br />
our members.<br />
Having worked at the Canadian<br />
Embassy in DC for more than <strong>20</strong> years<br />
and now in my role at CME, I have<br />
had a view of the Canada-US bilateral<br />
relationship over a long period of time,<br />
a view that has changed significantly.<br />
My responsibility to CME member<br />
companies is to make certain that they<br />
will not be taken by surprise by US<br />
actions or decisions. <strong>The</strong> news might<br />
not be good, but CME members will<br />
not be taken off guard. That’s a large<br />
task, as our members’ interests are<br />
as varied as the communities across<br />
Canada in which they are located.<br />
I have had the opportunity to<br />
share this insight at many CME<br />
events across Canada. During those<br />
sessions, I have learned to spend<br />
only 15 minutes explaining the<br />
“what” before we engage in more<br />
intriguing questions asked by the<br />
participants about the “how” and<br />
“why” of happenings south of the<br />
border. Questions are always the most<br />
interesting part of the sessions. CME<br />
members are sophisticated and well<br />
informed. Most do not need someone<br />
to tell them what Congress is doing<br />
they only need to turn on the nightly<br />
news. Instead, I have found that<br />
Canadian audiences appreciate a more<br />
nuanced conversation about the forces<br />
shaping our relationship with the US.<br />
My responsibility to CME member companies is to make<br />
certain that they will not be taken by surprise by US<br />
actions or decisions.<br />
It is those conversations and the<br />
many years I have lived and worked in<br />
the US which has led me to conclude<br />
one thing – our neighbourhood needs<br />
a fresh coat of paint.<br />
We seem to have lost the ability to<br />
talk to each other. Canada looks south<br />
of the border and sees a neighbour<br />
they no longer seem to recognize.<br />
For its part, the US is a nation very<br />
distracted; looking to engage capitols<br />
as far flung as the globe is wide.<br />
That is the reason for this edition.<br />
We hope to re-engage the conversation<br />
about the importance of bilateral<br />
business interests and what both<br />
countries stand to gain. Sixteen years
after the NAFTA, it has become<br />
In the meantime, CME will<br />
obvious to many of us that we need continue to make the case here<br />
“the next big idea” from our capitols in the US on behalf of Canadian<br />
so that Canada is viewed here in the manufacturers. From appearing before<br />
US as truly distinct from everybody a manufacturing caucus in Congress<br />
else. Canada needs to find a way to to allying with US business leaders on<br />
get out from under the relentless and joint regulatory and legislative causes,<br />
harmful noise battering Americans CME’s goal is to keep the focus on the<br />
do almost every day, lately about all world’s most integrated and dynamic<br />
things “foreign.”<br />
economic relationship.<br />
1101-380_Globalisation Mag_<strong>20</strong>_<strong>20</strong>:Globalisation 8/9/10 4:09 PM Page 1<br />
BECAUSE<br />
ENTREPRENEURS WANT<br />
TO CONQUER THE WORLD.<br />
<strong>The</strong> Business Development Bank of Canada<br />
understands your reality. It provides the<br />
necessary support so your business can<br />
grow at the pace of your aspirations – come<br />
rain or shine.<br />
Industry InsIght<br />
CME will continue to turn the<br />
conversation from the “what” and the<br />
“why” and provide the catalyst for<br />
the “when.” This is the beginning of<br />
that dialogue.<br />
Birgit Matthiesen is CME’s special<br />
advisor to the President &CEO, US<br />
Government Relations, Washington DC.<br />
birgit.matthiesen@cme-mec.ca<br />
CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 3
cme BusIness OPPOrtunItIes<br />
Manufactured by<br />
business for business<br />
at cme, we are proud that<br />
leadership makes the difference.<br />
over the past 12 months,<br />
your cme team has been working<br />
on your behalf to develop new and<br />
innovative ways to provide solutions<br />
to the problems you face in your daily<br />
business operations.<br />
the great recession reinforced both<br />
the value and power of association for<br />
4 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
solutions to sa<br />
manufacturers and exporters across<br />
canada — together we are stronger.<br />
you have told us that reducing costs;<br />
finding new business opportunities;<br />
sharing of best practices and key<br />
knowledge; providing information on<br />
issues; and new education and training<br />
top the must-have list.<br />
we listened. our new member<br />
supplier program connects you, our<br />
members, with the best products and<br />
services available at the best prices.<br />
“i encourage all cme members to<br />
utilize the current services and enjoy the<br />
cme advantage,” says cme president<br />
& ceo Jayson myers. “Helping you<br />
succeed is not only our mission, it’s my<br />
personal commitment to every cme<br />
member. if i can provide a solution<br />
that lets you keep more money in your<br />
<strong>The</strong> beST PrOdUCTS, beST SerVICeS And beST PrICeS FOr CME memberS
and<br />
make sure our orders are<br />
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“We have to manage products in over 1,000 stores…<br />
and<br />
Microsoft Dynamics ® ERP helps us work more efficiently and<br />
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Microsoft Dynamics ® ERP fits your company and business processes, not the other<br />
way around. It gives your people easier access to real-time actionable information<br />
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To learn more about the efficiencies Microsoft Dynamics ® ERP can create for your<br />
business, go to microsoft.ca/dynamics/manufacturing<br />
cme BusIness OPPOrtunItIes<br />
ve you time anD money<br />
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value proposition you can’t refuse.”<br />
start saving today,<br />
cme members receive:<br />
• up to 60 per cent off home and<br />
auto insurance for you and<br />
your employees;<br />
• discounts of up to 25 per cent<br />
off forklifts;<br />
• customized erp solutions; and,<br />
• innovation readiness tools.<br />
• moving forward, we are continuing<br />
to expand our offerings to meet your<br />
ongoing business needs.<br />
“cme understands issues better<br />
than anyone else and we’re dedicated<br />
to offering our members tangible<br />
solutions,” says Jeff brownlee, vice<br />
president of public affairs, cme.<br />
“our focus is to helping canada’s<br />
manufacturers and exporters excel and<br />
grow in global markets.”<br />
cme facilitates access to business<br />
services like its new member<br />
supplier program and new business<br />
opportunities. the association<br />
advocates on behalf of manufacturers<br />
and exporters to improve public<br />
policies and regulations affecting<br />
member businesses. cme intelligence<br />
includes key policy papers, research<br />
documents, leading-edge economic<br />
data publications like <strong>20</strong>/<strong>20</strong>.<br />
keep the most popular items in stock<br />
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be able to act on data<br />
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CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 5
Value through association...<br />
CME MEMbErs rECEivE 10% DisCOUNT ON PrOfiTNEss’ (www.PrOfiTNEssaDvisOrs.COM)<br />
iNNOvaTiON ENErgizEr PrOgraM PlUs a frEE “iNNOvaTiON rEaDiNEss” CONsUlTaTiON<br />
<strong>The</strong> case for innovation:<br />
• Thomas Friedman states in his book, <strong>The</strong> world is Flat,<br />
that “our ability to innovate will be the key determinant of<br />
success in the 21st century economy.”<br />
• <strong>The</strong> most recent conference Board of canada report<br />
ranked canada 14th of 17 industrialized nations on<br />
innovation…an embarrassing “D”<br />
“We can’t solve problems using the same thinking that<br />
we used to create them, ” Albert einstein<br />
contact: Don chapman at 416-880-7245 or pagl@profitnessadvisors.com<br />
www.profitnessadvisors.com<br />
cme BusIness OPPOrtunItIes<br />
solutions to save you time anD money<br />
Manufactured by<br />
business for business<br />
cme best practices focuses on<br />
peer learning opportunities while cme<br />
networking includes value-added<br />
events across the country.<br />
“there is no other association in<br />
canada that has our expertise and our<br />
ability to deliver bottom-line results<br />
at the grassroots. at the same time,<br />
we have the ability to affect positive<br />
change with governments at all levels,”<br />
says myers. “but like the companies<br />
we represent, our business mantra is<br />
one of continuous improvement. we<br />
are continually evolving our programs<br />
and services to ensure we meet the<br />
needs of the companies, the canadian<br />
manufacturers and exporters, that make<br />
our industries the most innovative and<br />
productive sectors of our economy.”<br />
profit by assocation. save your money<br />
and learn how our partners can help<br />
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manufacturingb2b.ca today.<br />
if there is a product or service you<br />
would like to see in our program, tell us.<br />
email:<br />
national.communications@cme-mec.ca.<br />
<strong>The</strong> beST PrOdUCTS, beST SerVICeS And beST PrICeS FOr CME memberS<br />
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solutions to your challenges, our innovation energizer<br />
program will teach your team to:<br />
• Appreciate and leverage different creative problemsolving<br />
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Stay ahead of your competition, contact us today!<br />
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CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 7
CMEACROSSCANADA<br />
National Office<br />
1 Nicholas Street, Suite 1500<br />
Ottawa, ON K1N 7B7<br />
613-238-8888<br />
fax: 613-563-9218<br />
Jayson Myers<br />
President & CEO<br />
jayson.myers@cme-mec.ca<br />
Jean-Michel Laurin<br />
Vice President,<br />
global Business Policy<br />
jean-michel.laurin@cme-mec.ca<br />
Jeff Brownlee<br />
Vice President, Public Affairs &<br />
Partnerships<br />
jeff.brownlee@cme-mec.ca<br />
Nancy Coulas<br />
Director, Environmental Policy<br />
nancy.coulas@cme-mec.ca<br />
Corporate Office<br />
6725 Airport road, Suite <strong>20</strong>0<br />
Mississauga, ON L4V 1V2<br />
905-672-3466 or 1-800-268-9684<br />
fax: 905-672-3040<br />
Jeff Sholdice<br />
Vice President, finance & Operations<br />
jeff.sholdice@cme-mec.ca<br />
Membership Services<br />
membership.services@cme-mec.ca<br />
joincme@cme-mec.ca<br />
Innovation Insights<br />
Diane de Jong<br />
Executive Director<br />
diane.dejong@cme-mec.ca<br />
<strong>20</strong>/<strong>20</strong> & CME Online<br />
Ronda Landygo<br />
Associate Publisher<br />
Creative Director/Advertising<br />
1-877-880-3392<br />
ronda.landygo@cme-mec.ca<br />
Marie Morden<br />
Managing Editor and<br />
Communications Coordinator<br />
613-238-8888<br />
marie.morden@cme-mec.ca<br />
Dan Beauregard<br />
E-media Specialist<br />
613-238-8888<br />
dan.beauregard@cme-mec.ca<br />
Member Supplier<br />
Opportunities<br />
Ronda Landygo<br />
1-877-880-3392<br />
ronda.landygo@cme-mec.ca<br />
www.manufacturingb2b.ca<br />
British Columbia<br />
688 west hastings Street, Suite 540<br />
Vancouver, BC V6B 1P1<br />
604-713-7800 fax: 604-713-7801<br />
Craig Williams<br />
Vice President<br />
craig.williams@cme-mec.ca<br />
Alberta<br />
10060 Jasper Avenue, Suite 1931<br />
Edmonton, AB T5J 3r8<br />
780-426-6622 or 1-800-642-3871<br />
(AB & SK)<br />
fax: 780-426-1509<br />
Brian McCready<br />
Vice President<br />
brian.mccready@cme-mec.ca<br />
Saskatchewan<br />
#34, 1736 Quebec Avenue<br />
Saskatoon, Sk S7K 1V9<br />
306-384-5425 fax: 306-384-5427<br />
Brian McCready<br />
Vice President<br />
brian.mccready@cme-mec.ca<br />
Manitoba<br />
110 Lowson Cres.<br />
winnipeg, MB r3P 2h8<br />
<strong>20</strong>4-949-1454 fax: <strong>20</strong>4-943-3476<br />
Ron Koslowsky<br />
Vice President<br />
ron.koslowsky@cme-mec.ca<br />
Ontario<br />
6725 Airport road, Suite <strong>20</strong>0<br />
Mississauga, ON L4V 1V2<br />
905-672-3466 fax: 905-672-1764<br />
Ian Howcroft<br />
Vice President<br />
ian.howcroft@cme-mec.ca<br />
Québec<br />
<strong>20</strong>00, rue Peel, bureau 210<br />
Montréal, QC h3A 2w5<br />
514-866-7774 or 1-800-363-0226<br />
fax: 514-866-9447<br />
Simon Prévost<br />
President<br />
simon.prevost@meq.ca<br />
José Jacome<br />
general Manager<br />
jose.jacome@meq.ca<br />
<strong>New</strong> Brunswick<br />
P.O. Box 7129<br />
567 Coverdale road, Unit 12<br />
riverview, NB E1B 4T8<br />
506-861-9071 fax: 506-857-3059<br />
David Plante<br />
Vice President<br />
david.plante@cme-mec.ca<br />
Nova Scotia<br />
1869 Upper water Street<br />
Collins’ Bank Building, 3rd flr, Ste. 305<br />
halifax, NS B3J 1S9<br />
902-422-4477 fax: 902-422-9563<br />
Ann Janega<br />
Vice President<br />
ann.janega@cme-mec.ca<br />
<strong>New</strong>foundland<br />
and Labrador<br />
1st floor, Parsons Building<br />
90 O’Leary Avenue<br />
St. John’s, Nf A1B 2C7<br />
709-772-3682 fax: 709-772-3213<br />
Bill Stirling<br />
Vice President<br />
bill.stirling@cme-mec.ca<br />
Atlantic LEAN<br />
1st floor, Parsons Building<br />
90 O’Leary Avenue<br />
St. John’s, Nf A1B 2C7<br />
709-772-3682 fax: 709-772-3213<br />
David Haire<br />
Vice President, Best Practices<br />
and LEAN Management<br />
david.haire@cme-mec.ca<br />
Employers’<br />
Advocacy Council<br />
625 wabanaki Drive, Unit 4<br />
Kitchener, ON N2C 2g3<br />
519-748-5771 or 1-888-663-4929<br />
fax: 519-748-1827<br />
Fred Spiro<br />
Executive Director<br />
fred@eacforemployers.org
we Are CAnAdIAn mAnUFACTUrerS & exPOrTerS<br />
NATIONAL BOArD Of<br />
DIrECTOrS<br />
OffICErS<br />
Chair<br />
Roy Cook<br />
Chief Operating Officer<br />
Monarch Industries Limited<br />
rcook@monarchindustries.com<br />
Vice-Chair<br />
Raymond Leduc<br />
Director<br />
Bromont Manufacturing<br />
IBM Canada Ltd.<br />
raymondl@ca.ibm.com<br />
Second Vice-Chair<br />
Robert Hattin<br />
President<br />
hattin holdings Inc.<br />
Treasurer<br />
Ronald C. Morrison<br />
President<br />
rC Management<br />
rcm161@aol.com<br />
President & CEO<br />
Jayson Myers<br />
President & CEO<br />
Canadian Manufacturers & Exporters<br />
jayson.myers@cme-mec.ca<br />
Immediate Past Chair<br />
David T. Fung<br />
Chairman and CEO<br />
ACDEg International Inc.<br />
dtfung@uniserve.com<br />
DIrECTOrS<br />
AT LArgE<br />
Larry Barrett<br />
LCB Management<br />
lbarrett@emersonelectric.ca<br />
Robert G. Blackburn<br />
Senior Vice President,<br />
government & Development<br />
Institutions<br />
SNC-Lavalin International<br />
robert.blackburn@snclavalin.com<br />
Trevor Cornell<br />
Chief Operating Officer<br />
Industrial Technology Centre<br />
tcornell@itc.mb.ca<br />
Rocco Delvecchio<br />
V.P. government Affairs<br />
Siemens Canada Limited<br />
rocco.delvecchio@siemens.com<br />
R.J. Falconi<br />
Executive Vice President, general<br />
Counsel & Corporate Secretary<br />
CSA group<br />
rj.falconi@csagroup.com<br />
Diane Girard<br />
President<br />
global Links Network<br />
rdgirard@ican.net<br />
George Haynal<br />
Vice President, government Affairs<br />
Bombardier Inc.<br />
george.haynal@bomardier.com<br />
H. Roland Hosein<br />
Vice-President Environment,<br />
health & Safety<br />
gE Canada Inc.<br />
roland.hosein@corporate.ge.com<br />
Ben Hume<br />
Chairman & CEO<br />
Alco Ventures Inc.<br />
bhume@alcoventures.com<br />
Alberto Iperti<br />
Managing Director Canada<br />
Tenaris global Services<br />
aiperti@tenaris.com<br />
Lorne D. Janes<br />
President<br />
Continental Marble of Canada<br />
Division of <strong>The</strong> Continental group<br />
lorne@continentalmarble.ca<br />
J. Edward Macdonald<br />
Director of Marketing,<br />
Specialty Products<br />
Stanfield’s Limited<br />
emacdonald@stanfields.com<br />
Luc Martin<br />
Canadian Manufacturing Industry<br />
Leader<br />
Deloitte & Touche LLP<br />
lmartin@deloitte.ca<br />
Germain Morin<br />
Vice-President, Operations<br />
wyeth Pharmaceuticals<br />
moringe@wyeth.com<br />
Robert G. H. Patzelt<br />
Vice President, risk Management<br />
& general Counsel<br />
Scotia Investments Ltd.<br />
rpatzelt@scotiainvestments.ca<br />
Érik Ryan<br />
Sr. Vice-président, communications et<br />
relations externes<br />
rio Tinto Alcan<br />
erik.ryan@alcan.com<br />
Blake C. Smith<br />
Director - Environment,<br />
Energy & Vechicle Safety<br />
ford Motor Company of Canada Ltd.<br />
bsmith29@ford.ca<br />
Paul Smith<br />
Managing Director,<br />
National Client group<br />
rBC Capital Markets<br />
paul.smith@rbc.com<br />
Mel Svendsen<br />
President and CEO<br />
Standen’s Limited<br />
mel.svendsen@standens.com<br />
Caroline Tompkins<br />
President<br />
forum for International Trade Training<br />
caroline@fitt.ca<br />
Effie J. Triantafilopoulos<br />
effiet@rogers.com<br />
Jean-François Vinet<br />
Vice President International<br />
AECOM Tecsult Inc.<br />
jean-francois.vinet@aecom.com<br />
PrOVINCIAL ChAIrS<br />
Alberta<br />
Timothy (Tim) McGillicuddy<br />
Vice President, Taxation<br />
TELUS Corporation<br />
tim.mcgillicuddy@telus.com<br />
British Columbia<br />
Paul Boileau<br />
Director of Operations<br />
Soprema Incorporated<br />
pboileau@soprema.ca<br />
Manitoba<br />
Reynold Martens<br />
Executive Vice President<br />
geo. h. young & Co. Ltd.<br />
reynold@ghy.com<br />
<strong>New</strong> Brunswick<br />
John Bourque<br />
Bourque Industrial Ltd.<br />
bourque@bourqueindustrial.com<br />
<strong>New</strong>foundland and Labrador<br />
Howard D. Nash<br />
President<br />
Northstar Network Ltd.<br />
rhoward.nash@nnl.ca<br />
Nova Scotia<br />
Dorothy Rice<br />
Vice-President, finance<br />
Ultra Electronics Maritimes Systems<br />
dorothy.rice@ultra-uems.com<br />
Ontario<br />
Robert Hattin<br />
President<br />
hattin holdings Inc.<br />
Québec<br />
Hubert Bolduc<br />
Vice-président, communications<br />
et affaires publiques<br />
Cascades Inc.<br />
hubert_bolduc@cascades.com<br />
CMEACROSSCANADA
cme eVents subscribe to cme event rss FeeDs at www.cme-mec.ca<br />
British Columbia<br />
manufacturing executive council<br />
(mec) information seminar<br />
Delta, september 22<br />
<strong>20</strong>10 power smart excellence<br />
awards & Forum<br />
vancouver, october 25–october 27<br />
manufacturing safety conference<br />
Delta, october 25–october 26<br />
email: zena.caul@cme-mec.ca<br />
Alberta<br />
lean product &<br />
process Design workshop<br />
calgary, october 13<br />
alberta board of Directors meeting<br />
calgary, october 28<br />
alberta export awards<br />
calgary, november 26<br />
email: joanita.fernandes@<br />
cme-mec.ca<br />
Saskatchewan<br />
nscme consortium meeting<br />
saskatoon, september 9<br />
saskatoon, october 14<br />
information technology<br />
special interest group<br />
saskatoon, september 14<br />
scme consortium meeting<br />
saskatoon, september 16<br />
saskatoon, october 21<br />
safety special interest group meeting<br />
saskatoon, september 22<br />
Hr special interest meeting<br />
saskatoon, september 28<br />
step <strong>20</strong>10 trade conference<br />
saskatoon, september 28–29<br />
email: lynne.marr@cme-mec.ca<br />
Thank you!<br />
Cme online partners:<br />
iN ThE NExT issUE<br />
10 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
Manitoba<br />
executive gemba walks<br />
winnipeg, september 22<br />
lean problem solving<br />
executive program<br />
winnipeg, september 22–24<br />
centrallia <strong>20</strong>10: global business to<br />
business Forum<br />
winnipeg, october <strong>20</strong>–22<br />
email: helen.mitchell@cme-mec.ca<br />
Ontario<br />
minding what matters<br />
business takes action<br />
toronto, september 28<br />
visit: www.businesstakesaction.ca<br />
6th annual golf invitational<br />
milton, september <strong>20</strong><br />
global business exchange<br />
toronto, september 30<br />
think summit:<br />
sustainable manufacturing in <strong>20</strong>10<br />
toronto, november 2<br />
email: elena.loza@cme-mec.ca<br />
small business summit:<br />
strategies for the new economy<br />
toronto, october 26<br />
annual Queen’s park reception<br />
toronto, november 30<br />
email: terry.adamo@cme-mec.ca<br />
eac/cme business summit on<br />
workplace safety and insurance<br />
mississauga, november 4<br />
part i — Workplace Safety &<br />
Insurance Act 101<br />
bowmanville, september 28<br />
Kitchener, october 19<br />
brantford, october 28<br />
part ii — wsib return to work &<br />
claims cost management<br />
burlington, september 23<br />
mississauga, september 30<br />
barrie, october 5<br />
thunder bay, october 6<br />
guelph, october 13<br />
bowmanville, october 14<br />
london, october 26<br />
wsib appeals<br />
Don mills, september 28<br />
mississauga, october <strong>20</strong><br />
ministry of labour inspector<br />
has arrived: are you ready?<br />
Kitchener, october 7<br />
ergonomics: Job rotation<br />
mississauga, october 5<br />
wsib’s experience<br />
rating programs: new experimental<br />
experience rating (neer)<br />
sault ste. marie, october 7<br />
new csa z462-08 electrical<br />
standards Have arrived: what you<br />
need to Know<br />
mississauga, october 14<br />
wsib’s experience<br />
rating programs: council amendment<br />
Draft (caD-7) for construction<br />
sault ste. marie, october 7<br />
email: info@eACforemployers.org<br />
wsib Health & safety certification<br />
visit: www.iapa.ca/products/<br />
certification_training.asp<br />
Québec<br />
export experts - maisons alouette<br />
sainte-anne-de-la-rochell<br />
9 septembre<br />
email: katlyne.gaspard@meq.ca<br />
Visit www.cme-mec.ca for our complete events listing<br />
OUr CArbOn FOOTPrInT In new ShOeS<br />
industry has to lead the way in reducing greenhouse gas emissions,<br />
but at what cost?<br />
striving to meet existing targets set by governments around the globe<br />
will hinder our economy. there has to be a balance in securing the<br />
environment without dramatic pain for industry.<br />
what is our energy future and how will the demand for greener supplies<br />
define our path forward?<br />
Economic indicators<br />
key dates<br />
september<br />
10 labour Force survey, august<br />
<strong>20</strong>10<br />
15 monthly survey of manufacturing,<br />
July <strong>20</strong>10<br />
21 consumer price index, august<br />
<strong>20</strong>10<br />
22 leading indicators, august <strong>20</strong>10<br />
23 employment insurance, July <strong>20</strong>10<br />
24 payroll employment, earnings<br />
and hours, July <strong>20</strong>10<br />
29 industrial product and raw materials<br />
price indexes, august <strong>20</strong>10<br />
october<br />
8 labour Force survey, september<br />
<strong>20</strong>10<br />
15 monthly survey of manufacturing,<br />
august <strong>20</strong>10<br />
21 employment insurance, august<br />
<strong>20</strong>10<br />
21 leading indicators, september<br />
<strong>20</strong>10<br />
22 consumer price index,<br />
september <strong>20</strong>10<br />
28 payroll employment, earnings<br />
and hours, august <strong>20</strong>10<br />
29 industrial product and raw materials<br />
price indexes, september<br />
<strong>20</strong>10<br />
Bank of Canada<br />
Interest rate<br />
announcements<br />
september 8, october 19,<br />
December 7<br />
Our carbon footprint<br />
in new shoes<br />
Industry has to lead the way in reducing greenhouse<br />
gas emissions, but at what cost? Striving to meet<br />
existing targets set by governments around the globe<br />
will hinder recovery. <strong>The</strong>re has to be a balance in<br />
securing the environment without dramatic pain for<br />
industry. What is our energy future and how will the<br />
demand for greener supplies define our path forward?<br />
N<br />
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nonsera eperchillest fugiatem libearu<br />
ntiandu ndaestias vellanis molupta<br />
digent occulparia si blabor archil<br />
ma quodicaeres molorep eruntisque<br />
eosa iusam autet et utation sequatem<br />
apiendipsunt moluptiame laccuptatur?<br />
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aut magnit, ullitem. Ut autectu restiuntiis<br />
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non net vellecati tet et del molupta<br />
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solorendi cor si optur? Ilis destrum<br />
iunde volorpo rectorest fugiamus<br />
esent vendi quatemo ditatur? Qui<br />
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aut quae. Et lant, consequost volesci<br />
inciae perspid et dolest et eaquaturio<br />
voluptae si sum resed qui ditio blat.<br />
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ficidelis doluptur, site nulparum ereicip<br />
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minveru ptatin nos quam, que si ad<br />
moluptati quis volum que opturia ex-<br />
…Since the financial meltdown and the onset of<br />
the global recession, Canadian manufacturers<br />
and exporters have seen a volatile currency<br />
eat export profits combined with a seeminglyovernight<br />
evaporation of approximately 30 per<br />
cent of demand. Add in protectionist measures<br />
like Buy American and it’s time to reset,<br />
rethink and revamp the world’s largest bilateral<br />
relationship…<br />
pedita venderum is solupta turepelit,<br />
cumquas vit, offic tem et volorum<br />
quo illorem porias sim ex earum, ea<br />
consedi tatur, am quia que mint.<br />
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poreperi reptatur sitaturem quibus aut<br />
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faccus es que la aut am, ommodi<br />
quam, voluptam eos suntis expernam<br />
voleceptam nonsequunt officaborit<br />
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inctatur?<br />
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ulliciliqui re plitatem dite volorume<br />
doluptatur sam, acea nossitis arit dolupta<br />
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conetur ibuscid que nonsequam<br />
veratiam ut labo. Genis exerferchit qui<br />
cus essuntio militatet pro quunt aut<br />
am, omnim ut de sequam desto omnis<br />
vendelignam, quam lam quia nobis<br />
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ium harcid quam num ressum que exeriberum sunt.<br />
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doluptas ex et et aut omnit vide rem eaquati vel eos et<br />
next_issue_novdec.indd 2-3 10-08-24 7:39 PM
Date Province Host comPany Learn about<br />
EvEnts schEdulE Fall <strong>20</strong>10<br />
Aug 31 MB Acrylon Plastics Lean Best Practices, Quality Management, Continuous Improvement<br />
Sep 1 NL Dynamic Air Shelters Quality Management, Continuous Improvement<br />
Sep 14 QC BainUltra Inc. Environmental Sustainability<br />
Sep 16 BC Ledalite<br />
Sep 16 QC B3CG Innovation/Technology<br />
Sept 16 ON<br />
Niagara on the Lake Wine<br />
Industry<br />
Environmental Sustainability, Innovation/Technology, Lean Best<br />
Practices, Continuous Improvement<br />
Environmental Sustainability, Production & Operational<br />
Innovation and Technologies<br />
Sep 21 NS Precision Biologic Innovation/Technology, Corporate Culture<br />
Sep 22 QC Cuisines Laurier Corporate Culture<br />
Sep 28 MB Canada Post Corporation<br />
Process Management/Strategic Planning, Lean Best Practices, Logistics/<br />
Supply Chain<br />
Sep 28 QC Mabe Process Management/Strategic Planing, Lean Best Practices<br />
Sep 29 ON Art Gallery of Ontario<br />
Innovation Technology, Environmental Sustainability, Process<br />
Management/Strategic Planning<br />
Oct 6 MB MicroPilot Inc. Innovation/Technology, Company Culture<br />
Oct 14 ON Oakville Stamping & Bending Innovation/Technology, Global Markets<br />
Oct 19 SK Hitachi<br />
Oct <strong>20</strong> BC ASI Plastics<br />
LearninG session: Green value stream mapping;<br />
Environmental Sustainability, Waste elimination<br />
Process Management/Strategic Planning, Lean Best Practices,<br />
Continuous Improvement<br />
Oct <strong>20</strong> ON Diageo Lean Best Practices, Quality Management<br />
Oct 21 AB TENET Medical Engineering<br />
Process Management/Strategic Planning, Innovation/Technology, Lean<br />
Best Practices, Company Culture<br />
Oct 26 MB Loewen Lean Best Practices, Company Culture<br />
Oct 26 SK Dumur Industries<br />
Oct 26 ON Honeywell Aerospace<br />
Oct 27 BC Hemlock Printers<br />
Oct 28 ON JAY•LOR Fabricating Inc.<br />
Innovation Insights is delivered in collaboration<br />
with Canadian Manufacturers & Exporters and the<br />
National Research Council - Industrial Research<br />
Assistance Program.<br />
Innovation Insights events offer manufacturing practitioners and plant floor experts the<br />
opportunity to discuss challenges, share ideas and see processes in action, right on the plant<br />
floor — where innovative implementation develops and innovative thinking flourishes.<br />
Process Management/Strategic Planning, Innovation/Technology, Lean<br />
Best Practices, Quality Management<br />
Process Management/Strategic Planning, Lean Best Practices,<br />
Continuous Improvement.<br />
Environmental Sustainability, Innovation/Technology, Lean Best<br />
Practices, Continuous Improvement<br />
LearninG session: introduction to Green manufacturing;<br />
Lean Best Practices, Continuous Improvement<br />
www.tvp-ii.org
cme neWs subscribe to cme news rss FeeDs at www.cme-mec.ca<br />
Cyclone helicopters replace workhorse Sea King<br />
CME Nova Scotia members<br />
quickly booked up the July<br />
visit of the Maritime Helicopter<br />
Project hosted by Shearwater,<br />
12 Wing, a division of Canada<br />
Forces Base Halifax. Joining<br />
CME President & CEO Jay<br />
Myers, members had a great<br />
introduction to the history<br />
of naval aviation in Canada,<br />
as well as a sneak peek of the<br />
major defence project that will<br />
replace Canada’s workhorse<br />
Sea King helicopter fleet.<br />
<strong>The</strong> Maritime Helicopter<br />
project is a complex program<br />
that involves the delivery of<br />
28 state-of-the-art, combatcapable<br />
CH-148 Cyclone<br />
helicopters, associated logistical<br />
and in-service support, spare<br />
12 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
parts, as well as modifications<br />
to the Halifax-class ships and<br />
construction of a new training<br />
facility equipped with a full<br />
training suite of flight, mission<br />
and maintenance simulators.<br />
<strong>The</strong> Innovation Insights tour<br />
took in several of the new<br />
facilities purpose-built for the<br />
Cyclone helicopters. Members<br />
had a chance to view the Sea<br />
King training facilities and<br />
to meet pilots and other key<br />
military personnel. Colonel<br />
Sam Michaud, 12 Wing’s commanding<br />
officer, addressed the<br />
group and joined his colleagues<br />
in describing the capabilities<br />
of the new aircraft, as well<br />
as the stellar record of the<br />
Sea King fleet.<br />
<strong>The</strong> Department of Defence<br />
expects to take delivery of six<br />
interim Cyclone helicopters<br />
with a preliminary version of<br />
the mission software starting in<br />
November <strong>20</strong>10.<br />
<strong>The</strong> Sea King will continue<br />
CME NL takes the lead on climate change and<br />
energy efficiency<br />
CME NL believes the province<br />
is generally on the right track<br />
when it comes to climate<br />
change and energy efficiency.<br />
In its Climate Change and<br />
Energy Efficiency submission<br />
to the government, CME NL<br />
encouraged the province to<br />
move ahead not by regulation,<br />
but by the implementation of<br />
a strategy that focuses on the<br />
following:<br />
• Introduces meaningful<br />
programs to support SMEs and<br />
individuals to conserve energy<br />
and adapt to climate change.<br />
Programs to offset upfront<br />
investments and information<br />
campaigns to support reduced<br />
energy consumption and<br />
increased purchasing of local<br />
products and services should be<br />
the main thrust of the province’s<br />
efforts at those groups.<br />
• Where possible, the government<br />
should work through<br />
existing industry organizations<br />
to more effectively reach SMEs<br />
across the province.<br />
• Development of the Lower<br />
Churchill should be a priority,<br />
as it has many environmental<br />
and economic benefits and<br />
is directly tied to elimination<br />
CME NS Office Administrator Jacqui Squires and Dorothy Rice, Ultra<br />
Electronics Maritime System’s VP finance & administration and chair of<br />
CME NS Board of Directors take a closer look at the helicopter fleet.<br />
of the Holyrood thermal<br />
generating station - one of<br />
the province’s largest single<br />
emitters.<br />
• We need a better understanding<br />
of the transportation<br />
sector so that priorities can be<br />
developed to target reductions.<br />
• Regulation and/or carbon<br />
taxes should be consistent<br />
with other jurisdictions and<br />
should safeguard the international<br />
competitiveness of NLs<br />
economy.<br />
• Outside of a handful of<br />
large emitters in NL, manufacturing<br />
contributes one per cent<br />
to fly Canadian Forces missions<br />
in its maritime helicopter<br />
role until the fully compliant<br />
Cyclone helicopters are ready to<br />
be deployed.<br />
For more information,<br />
visit: www.cme-mec.ca/ns<br />
of the province’s greenhouse<br />
gas (GHG) emissions. We need<br />
a different suite of tools and<br />
incentives for SMEs than for the<br />
few large contributors.<br />
CME NL would like to thank<br />
member Mark Ploughman of<br />
Lotek Wireless for his efforts on<br />
this file. <strong>The</strong> submission will<br />
serve CME NL members well as<br />
the province moves ahead and<br />
develops its strategy to address<br />
GHG reductions and climate<br />
change adaptation.<br />
To read the full submission,<br />
visit: www.cme-mec.ca/nl
subscribe to cme news rss FeeDs at www.cme-mec.ca cme neWs<br />
CME NS advocacy averts<br />
18 per cent electricity increase<br />
A combination of factors including<br />
the high cost of capturing mercury<br />
emissions, as well as the province’s<br />
dependence on fossil fuels, had Nova<br />
Scotian members holding their collective<br />
breath this summer.<br />
Under the collaborative “Demand Side<br />
Management” regime, Nova Scotians<br />
were told to expect as much as an 18 per<br />
cent increase in electricity rates as soon<br />
as January <strong>20</strong>11.<br />
<strong>The</strong> CME Nova Scotia Energy<br />
Committee took immediate action.<br />
Under the leadership of Robert<br />
Patzelt, VP risk management for CME<br />
member company Scotia Investments<br />
Limited, a comprehensive research and<br />
communication effort ensued.<br />
CME is proud to be among the leaders<br />
who approached the key players to see<br />
what options could prevent this rate<br />
shock in energy costs: one of the biggest<br />
manufacturing components.<br />
CME collaborated with the<br />
government, affordable energy and<br />
poverty advocates, the utility and<br />
consumer groups who were also facing<br />
double digit electricity hikes.<br />
One particular window of opportunity<br />
was identified by CME and others –<br />
the terms and time frame related to<br />
capturing mercury emissions.<br />
<strong>The</strong> government has listened and<br />
acted on the limited opportunity. <strong>The</strong><br />
result: CME’s intervention has bought<br />
Nova Scotian members and others,<br />
including the utility, Nova Scotia<br />
Power Inc., some needed time to meet<br />
environmental goals.<br />
This action is expected to deliver a<br />
dramatic improvement in next year’s<br />
predicted rate hike. Meaning millions of<br />
dollars for our CME members.<br />
“It’s important to note that we are<br />
not sacrificing our commitment to<br />
environmental goals,” said CME NS Vice<br />
President Ann Janega. “Apart from the<br />
timing change, the government is still<br />
keeping our feet to the fire in terms of<br />
overall emission goals. Likewise, NSPI is<br />
expected to make up for emissions and<br />
show improvements too.”<br />
Our thanks to Robert Patzelt and the<br />
CME members who helped to deliver<br />
this significant policy, environmental and<br />
economic win for CME.<br />
Leadership makes the difference. Join us.<br />
CME is dedicated to helping Canada’s<br />
manufacturers and exporters excel and<br />
grow in domestic and global markets.<br />
CME delivers solutions where they count<br />
— on the bottom line<br />
www.joincme-mec.ca<br />
Lease us your rooftop:<br />
Get paid to go green!<br />
Tioga Energy is looking to lease<br />
industrial rooftops (40,000 square feet<br />
minimum) in Ontario on a long-term<br />
basis for the purpose of developing<br />
solar electricity. We offer a straightforward<br />
landlord/tenant relationship and<br />
there is no expense to participate.<br />
A tenant you can trust<br />
Tioga Energy is one of the largest and<br />
most experienced independent solar<br />
energy providers in North America.<br />
We are one of the few in the solar<br />
rooftop lease business who have successfully<br />
designed, financed and built<br />
solar rooftop systems and will ensure<br />
your roof warranties remain intact.<br />
For information, contact<br />
James Rosenthal at 416-516-8611<br />
jrosenthal@tiogaenergy.com<br />
or visit<br />
www.tiogaenergy.ca.<br />
CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 13
cme @ WOrk<br />
14 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
cme intelligence: birgit matthiesen,<br />
cme’s us representative, works<br />
closely with cme members, industry<br />
associations and government officials<br />
in both canada and the us to<br />
strengthen the competitiveness of the<br />
north american economy.<br />
widely-recognized as the “go-to”<br />
person in washington, matthiesen<br />
ensures cme keeps us industry and<br />
government leaders informed about<br />
our members’ critical interests south of<br />
the border.<br />
on a recent visit to washington cme<br />
president & ceo Jayson myers<br />
and matthiesen met with the newly<br />
appointed Deputy assistant secretary<br />
for manufacturing, peter m. perez.
cme best practices: cme nova<br />
scotia members quickly booked<br />
up the July visit of the maritime<br />
Helicopter project hosted by<br />
shearwater, 12 wing, a division of<br />
canada Forces base Halifax. cme<br />
president & ceo Jay myers and<br />
participanting members received an<br />
introduction to the history of naval<br />
aviation in canada and a preview of<br />
the major defence project that will<br />
replace canada’s workhorse<br />
sea King helicopter fleet.<br />
the sea King will continue to fly<br />
canadian Forces missions in its<br />
maritime helicopter role until the fully<br />
compliant cyclone helicopters are<br />
ready to be deployed.<br />
cme @ WOrk<br />
CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 15
16 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
CME EConoMiC<br />
PUlsE<br />
by Jayson myers<br />
<strong>The</strong> Canadian dollar value of<br />
Canada’s exports to the US<br />
more than tripled between<br />
the Canada-US Free Trade<br />
Agreement coming into force<br />
and the beginning of the<br />
previous decade.<br />
Exports in May <strong>20</strong>10 were up<br />
32 per cent from a year ago.<br />
Of all goods exported across<br />
the border by truck, 87 per<br />
cent crossed at one of the<br />
top 10 US ports of entry<br />
listed here.
cme InteLLIgence<br />
Cme President & CeO Jayson<br />
myers, recognized as Canada’s<br />
most accurate forecaster,<br />
provides strategic intelligence<br />
on the recent manufacturing and<br />
exporting trends that impact you<br />
<strong>New</strong> Brunswick manufacturers<br />
are those that export the<br />
greatest proportion of<br />
their sales to the US, with<br />
55.8 per cent of sales going<br />
south last year.<br />
Last year, 36.5 per cent of<br />
Canadian manufacturers’<br />
sales were exported to the<br />
US, down from 49.8 per<br />
cent 10 years ago due to<br />
market diversification.<br />
read the complete CME<br />
Economic Pulse today, visit:<br />
www.cme-mec.ca<br />
CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 17
Facing the Carbon Challenge<br />
By Anthony D’Agostino<br />
Director, Emissions Markets,<br />
Royal Bank of Canada<br />
Climate change and greenhouse gas<br />
(GHG) emissions aren’t just environmental<br />
issues – they’re also business issues.<br />
That’s how they need to be considered if<br />
the manufacturing sector is to effectively<br />
reduce its emissions.<br />
<strong>The</strong> sector’s contribution to GHG<br />
emissions in Canada is about 15%,<br />
according to a <strong>20</strong>09 CME paper.<br />
Thanks to improvements in energy<br />
efficiency, replacement of industrial<br />
processes, fuel switching and other<br />
measures, the CME notes that<br />
emissions in manufacturing have<br />
been falling since the 1990s (Climate<br />
Change Policy in <strong>20</strong>09, CME <strong>20</strong>09).<br />
Industry leaders realize that getting a<br />
handle on emissions is simply smart<br />
business. Carbon is – or will be – a risk<br />
for any manufacturer. Customers<br />
(whether end consumers or other<br />
businesses), shareholders, financial<br />
markets and ultimately regulators will<br />
all demand action – concrete steps to<br />
quantify, disclose and control your<br />
carbon footprint. <strong>The</strong> key question:<br />
are you prepared?<br />
Mix of reduction approaches<br />
Start with the current regulatory<br />
landscape. Much of the world is<br />
watching to see what the U.S. will do<br />
when it comes to regulating carbon<br />
emissions. <strong>The</strong>se proceedings will<br />
heavily influence legislation in other<br />
jurisdictions, including Canada.<br />
advErTorIal<br />
<strong>The</strong> latest talk in the U.S. Senate<br />
involves a utilities-only carbon bill.<br />
That narrows the group of emitters<br />
affected, including some carbonintensive<br />
industries. That’s how the<br />
political winds are blowing now – but<br />
the utilities plan, if enacted, may be<br />
just a start.<br />
In Canada, we already see a mix of<br />
approaches.<br />
Currently, there is no national regulation<br />
on GHG emissions reduction; however,<br />
the federal government has taken action<br />
to promote energy efficiency and<br />
technological developments in the field,<br />
outlined a domestic GHG offset system<br />
and established GHG reporting systems.<br />
<strong>The</strong> federal commitment remains to<br />
reduce Canada’s GHG emissions by<br />
17% from <strong>20</strong>05 to <strong>20</strong><strong>20</strong>, which is<br />
aligned with the U.S. target (and<br />
subject to adjustment to remain<br />
consistent with the U.S. target).<br />
on the provincial front, B.C. has a<br />
carbon tax. alberta’s Specified Gas<br />
Emitters regulation requires facilities<br />
emitting over 100,000 tonnes/year to<br />
reduce their carbon emissions intensity.<br />
and the Western Climate Initiative –<br />
involving six U.S. states plus B.C.,<br />
Manitoba, ontario and Quebec –<br />
proposes launching a regional cap-<br />
and-trade system on Jan. 1, <strong>20</strong>12.<br />
Markets manage cap-and-trade<br />
Carbon is usually priced in metric<br />
tonnes, with prices varying depending<br />
on the program. For example,<br />
allowances from the Chicago Climate<br />
Exchange program trade at US$0.10/<br />
metric tonne, whereas EU emission<br />
allowances (EUas) trade at €14.50/<br />
metric tonne. Many programs and<br />
jurisdictions fall between these price<br />
levels. <strong>The</strong> wide ranges are due to<br />
different perceptions of value and<br />
whether there is a compliance need.<br />
When companies see a price on<br />
carbon, they can make informed<br />
decisions about how to abate it.<br />
That’s why market mechanisms like<br />
cap-and-trade can be so effective.<br />
With cap-and-trade, for instance,<br />
governments set caps on carbon<br />
emissions, and it’s up to the<br />
emitters to find ways to stay within<br />
their cap. often, the government<br />
allocates or auctions an amount of<br />
carbon credits that equals the cap.<br />
If you fall below the cap, you can<br />
sell excess credits; above, you can<br />
buy credits from an emitter that<br />
doesn’t need all its credits.<br />
<strong>The</strong> worldwide value of carbon<br />
trading was US$136 billion last<br />
year, more than double what it<br />
was two years ago. as an example<br />
of this growth, rBC has traded<br />
over 225 million tonnes of carbon<br />
instruments globally, helping<br />
companies hedge their exposure<br />
to the carbon market through<br />
instruments like forwards, futures<br />
and options.<br />
Europe currently has the world’s<br />
biggest carbon market. <strong>The</strong>ir<br />
cap-and-trade plan covers sectors<br />
that include oil and gas; pulp and<br />
paper; public power and heat<br />
(industrial/district heating);<br />
cement, lime and gas; metals;<br />
and “other” – a wide swath of<br />
manufacturing companies that<br />
have to be part of the program.<br />
North american lawmakers are<br />
examining the European model<br />
closely, and we can learn from its<br />
successes. Supply and demand tells<br />
us that as caps get tighter and the<br />
supply of carbon credits (allowances<br />
and offsets) goes down, the price<br />
of carbon goes up – meaning an<br />
increased incentive for factories<br />
to reduce their emissions.
Voluntary push<br />
No doubt, carbon regulations are<br />
coming. Some companies will act<br />
only when compelled. But there are<br />
plenty of incentives to be proactive<br />
even without regulations.<br />
Many manufacturers are eager to<br />
put a carbon-neutral stamp on their<br />
operations and products, whether<br />
because of social responsibility,<br />
market expectations or the<br />
opportunity to ultimately save costs.<br />
In Europe, again, the public assumes<br />
a certain level of “green” in the<br />
business sector. That’s driving<br />
consumer choices and business<br />
Keep monitoring<br />
at the very least, this is the time<br />
for manufacturers to learn as<br />
much as possible about carbon<br />
and its implications – regulatory,<br />
environmental, financial and<br />
otherwise. So number one, stay<br />
current with the discussions<br />
around regulations.<br />
Number two, track how much carbon<br />
dioxide your company is emitting –<br />
anything produced by a particular<br />
activity at a particular point in time,<br />
using tools from smokestack<br />
monitoring to computer accounting<br />
programs. With the right software,<br />
you can track the carbon footprint of,<br />
say, a tire, from Malaysia where the<br />
latex was tapped, to the plant where<br />
the tire was made, to the destinations<br />
where it arrived by ship or train.<br />
Number three, keep an eye on what<br />
your competitors are doing too. and<br />
number four, keep your ears open to<br />
what customers are expecting.<br />
actions on emissions. This mindset<br />
seems to be gaining momentum in<br />
North america.<br />
Managing carbon starts with getting<br />
an objective, comprehensive method<br />
of quantifying your carbon footprint.<br />
Usually this is measured in three<br />
different scopes:<br />
n direct emissions that you control,<br />
i.e. arising from your operations.<br />
n Indirect emissions from consuming<br />
purchased energy, e.g. electricity,<br />
steam, fuel.<br />
n other indirect emissions, i.e.<br />
incurred by suppliers and<br />
transportation-related activities.<br />
I know one company that has decided<br />
to take positions in the carbon offsets<br />
market, not because of compliance or<br />
any commitment to reduce emissions,<br />
but simply to educate themselves – to<br />
see how the carbon markets and the<br />
registries work and to track a specific<br />
carbon credit. In short, they want to be<br />
ready for the day when they might have<br />
to be active in the emissions market.<br />
Carbon regulations on your sector may<br />
have a direct impact on your company.<br />
But manufacturers need to prepare for<br />
other types of impacts.<br />
Perhaps when carbon legislation<br />
is enacted, it won’t apply to your<br />
manufacturing segment. But your cost<br />
of energy may rise, and that certainly<br />
will affect you and may change how<br />
you run your plant. regulations may<br />
be in limbo, but in the meantime your<br />
competitors may be mounting an<br />
aggressive green campaign that may<br />
affect you too.<br />
<strong>The</strong> first two categories are the<br />
most straightforward, looking at the<br />
emissions factor from your operations<br />
and energy consumption. <strong>The</strong> third<br />
category is more complex, and is partly<br />
based on suppliers doing their own<br />
environmental accounting.<br />
It’s encouraging to see initiatives<br />
like the Carbon disclosure Project<br />
(www.cdproject.net), where<br />
organizations measure and report<br />
their GHG emissions. More and more<br />
are doing so, and a higher percentage<br />
of Canadian manufacturers and other<br />
firms now see opportunities around<br />
carbon reduction rather than risks.<br />
Many manufacturers have<br />
demonstrated that it’s possible to<br />
achieve greater efficiency and increase<br />
production, all while reducing their<br />
carbon footprint. <strong>The</strong>se experiences<br />
should motivate others as the need to<br />
control carbon becomes one of the<br />
biggest environmental and business<br />
issues facing manufacturers.<br />
For more tips and tools on greening<br />
your business, visit our advice centre<br />
at rbc.com/business-advice.<br />
<strong>The</strong> strategies, advice and technical content in this publication are<br />
provided for the general guidance and benefit of our clients only. This<br />
publication is not intended to provide specific financial, investment,<br />
tax, legal, accounting or other advice for you, and should not be relied<br />
upon in that regard. Readers should consult their own professional<br />
advisor when planning to implement a strategy to ensure that<br />
individual circumstances have been considered properly and it is<br />
based on the latest available information.<br />
® Registered trademarks of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada.
<strong>20</strong> | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
<strong>The</strong><br />
<strong>New</strong><br />
America<br />
by eK HornbecK<br />
“Many thinking people<br />
believe America has<br />
seen its best days.”<br />
-James Allen, a resident of Boston,<br />
writing in his diary on July 26, 1775
with all bad us economic<br />
news reported in the<br />
media, some canadians<br />
may wonder if James allen’s gloomy<br />
take on america’s future seems<br />
more appropriate in <strong>20</strong>10 than<br />
it did in 1775.<br />
the global Great Recession has (at<br />
least so far) hit the us far harder than<br />
it has hit canada. the us is still our<br />
most important customer, however,<br />
so this is no time for canadian<br />
self-congratulation.<br />
rather, canadian manufacturers and<br />
exporters need to understand what<br />
effects the Great Recession has had on<br />
our neighbours, so that canada and the<br />
us can continue to work together to<br />
maintain north america’s high standard<br />
of living.<br />
For this issue of <strong>20</strong>/<strong>20</strong>, we contacted<br />
three in-the-know americans to get<br />
their insights into what canadians need<br />
to know about the Great Recession’s<br />
effects on the us. Here’s what<br />
they shared:<br />
effect #1 — many americans now<br />
have a greater appreciation of the<br />
canada-us supply chain’s importance.<br />
one sign of the severity of the Great<br />
Recession in the us came in the form<br />
of protectionist Buy American rhetoric in<br />
washington. this rhetoric was followed<br />
up with protectionist measures being<br />
incorporated into economic stimulus<br />
measures such as the <strong>20</strong>09 American<br />
Recovery and Reinvestment Act (arra).<br />
but this stimulus has become bogged<br />
down in red tape, because the Buy<br />
American rules are very confusing, and<br />
what qualifies as truly “american” is not<br />
readily clear.<br />
Dawn Kristof champney is president<br />
of the water and wastewater equipment<br />
manufacturers association (wwema),<br />
a us-based trade association that has<br />
been actively highlighting how Buy<br />
American procurement policies are<br />
hurting the us recovery.<br />
“this Buy American controversy<br />
has already caused problems for us<br />
companies who need to get critical<br />
components for their products from<br />
places such as canada,” she said.<br />
Here’s one example, as explained<br />
by champney: a wwema member<br />
firm relies on unique canadian knowhow<br />
for the production of a special<br />
component for one of its water<br />
filtration systems. arra contains rules<br />
regarding procurement that include<br />
what champney calls a “vague and<br />
subjective definition of a ‘us-produced<br />
manufactured good.’” such rules put<br />
us firms like this wwema member,<br />
which rely on global supply chains and<br />
foreign-made parts, at a disadvantage.<br />
“the fact that wwema members<br />
are export-oriented,” champney said,<br />
“only adds to their concern about<br />
Buy American, since many us trade<br />
partners have threatened retaliatory<br />
measures in response to arra.”<br />
How surprising that a Buy American<br />
policy has had the result of giving many<br />
americans a far more concrete sense of<br />
the economic ties linking canada and<br />
“This Buy American controversy has<br />
already caused problems for US<br />
companies who need to get critical<br />
components for their products from<br />
places such as Canada.”<br />
the us than they had before. and that<br />
can only help efforts by cme, by the<br />
government of canada and by us firms<br />
hurt by Buy American to ensure the us<br />
government respects its commitment<br />
(through naFta, etc.) to maintain<br />
open markets.<br />
effect #2 — the Great Recession<br />
is increasing the us’ appetite for<br />
discussions about how to reduce drags<br />
on north american productivity.<br />
“over many decades, canada and<br />
the us have invested in what is a very<br />
close continental relationship, and<br />
it’s important during this difficult time<br />
CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 21
TRADE, INVESTIMENT AND THE PURSUIT OF PROSPERITY<br />
to stand by that investment and find<br />
ways to work more efficiently together,”<br />
said christopher sands of the Hudson<br />
institute, a washington think-tank.<br />
sands is an expert on canada-us<br />
economic and political ties.<br />
“For instance, as we have increased<br />
connections between our economies,<br />
our governance structure for regulating<br />
and inspecting trade flows has not<br />
kept up. in some areas, we need more<br />
due diligence; in other areas, we have<br />
duplicative crash testing of cars, of<br />
drugs, etc., and there is a cost to<br />
all of this.”<br />
sands believes that canadian firms,<br />
with all the contacts they maintain with<br />
american colleagues, are in a strong<br />
“Throughout my career, America has seen so<br />
much economic growth that it was easy to take it<br />
as a given. We prospered from the productivity of<br />
the information age. But, we started to forget the<br />
fundamentals and lost sight of the core competencies<br />
of a successful modern economy. Many bought into<br />
the idea that America could go from a technologybased,<br />
export-oriented powerhouse to a services-led,<br />
consumption-based economy — and somehow still<br />
expect to prosper.<br />
“That idea was flat wrong. And what did we get in<br />
the bargain? We’ve seen a great vanishing of wealth.<br />
Our competitive edge has slipped away, and this has<br />
hit the middle class hard…”<br />
22 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
“If there is a silver lining to the global<br />
recession, it’s that manufacturers in the US<br />
and Canada can use this as an opportunity<br />
to work together even more closely.”<br />
position to initiate discussions on<br />
ways to reduce compliance costs. “in<br />
good times,” he notes, “these costs<br />
are not seen as a big deal. but right<br />
now, these costs represent a drag on<br />
north american productivity, and this<br />
is a good time to look at how common<br />
standards can reduce costs. common<br />
standards will help strengthen our<br />
shared global export success.”<br />
effect #3 — Discussions on how<br />
to increase canada-us regional<br />
cooperation on manufacturing are<br />
assuming greater importance.<br />
“i am a passionate optimist,” said<br />
emily stover Derocco, president of the<br />
manufacturing institute in washington,<br />
Dc, and senior vice president of the<br />
national association of manufacturers.<br />
“if there is a silver lining to the global<br />
recession, it’s that manufacturers in<br />
the us and canada can use this as an<br />
opportunity to work together even more<br />
closely. we have the relationships in the<br />
[ continued on page 24 ]<br />
“We must make a serious commitment to<br />
manufacturing and exports. This is a national<br />
imperative. We all know that the American<br />
consumer cannot lead our recovery. This economy<br />
must be driven by business investment and exports.<br />
“We should set a national goal to create high<br />
value added jobs and have manufacturing jobs<br />
be no less than <strong>20</strong> per cent of total employment,<br />
about twice what it is today. And we should<br />
commit ourselves to compete and win with<br />
American exports…”<br />
Jeffrey R. Immelt,<br />
Chairman and CEO of GE,<br />
speaking to the Detroit Economic<br />
Club on June 26, <strong>20</strong>09
in January <strong>20</strong>10, us president<br />
obama’s announcement of a national<br />
export initiative — a plan to double<br />
us exports over five years — offered a<br />
reminder of the importance of trade in<br />
creating economic prosperity. there is<br />
no better example of this than the<br />
unique economic partnership shared by<br />
canada and the us. in <strong>20</strong>09, the<br />
us was the destination for roughly<br />
75 per cent of canada’s exports and<br />
canada was the largest foreign market<br />
for 34 of 50 us states.<br />
our economic partnership extends<br />
well beyond trade activity to economic<br />
integration. the best illustrations of this<br />
are canadian and us manufacturers<br />
who depend on integrated supply chains<br />
and just-in-time delivery networks that<br />
criss-cross the border between us. this<br />
high degree of integration is fundamental<br />
to north america’s competitiveness in<br />
the global marketplace, particularly in<br />
the face of increasing pressure from<br />
competitors in emerging economies who<br />
are very successfully participating in<br />
global value chains.<br />
economic integration also means that<br />
issues facing manufacturers will have<br />
similar impacts on both sides of the<br />
border. the recent global recession is<br />
an example. the value of canada – us<br />
two-way trade declined 24.6 per cent<br />
from <strong>20</strong>08 levels. other challenges<br />
facing canadian and us firms relate to<br />
the question of how to move people<br />
learn more about centreport canada at<br />
www.centreportcanada.ca<br />
and learn more about doing business in manitoba at<br />
www.investinmanitoba.ca<br />
Centreport Canada<br />
A new era in Canada-US partnership<br />
and goods across our common border<br />
efficiently, while ensuring the integrity<br />
of border security systems. since the<br />
international terrorism tragedy in <strong>20</strong>01,<br />
border crossings now require additional<br />
information, documentation and more<br />
extensive inspections. the result is<br />
increased cost and complexity for crossborder<br />
trade and for production relying<br />
on imported content.<br />
clearly, the ability of north american<br />
firms to manage their supply chains<br />
efficiently is critical to success in<br />
competing globally. recognizing this,<br />
manitoba has responded by creating<br />
centreport canada, a new <strong>20</strong>,000-acre<br />
inland port anchored by one of canada’s<br />
top cargo-handling airports.<br />
First Foreign Trade zone<br />
centreport is managed by centreport<br />
canada inc., a private-sector-led<br />
corporation, and it enjoys the support<br />
of manitoba’s business, labour<br />
and academic communities, the<br />
transportation industry and the three<br />
levels of government. centreport is<br />
canada’s first Foreign trade zone (Ftz),<br />
offering single-window access to Ftz<br />
benefits, including tax and duty relief.<br />
centreport’s footprint includes<br />
winnipeg’s James armstrong richardson<br />
international airport. it links with three<br />
class-one railways — canadian national<br />
railway, canadian pacific railway<br />
and burlington northern santa Fe<br />
railway. it provides quick access both<br />
to the transcanada Highway and to<br />
provincial Highway 75, the main route<br />
to the canada – us border crossing at<br />
emerson, manitoba. emerson is one<br />
of canada’s busiest border crossings,<br />
processing about $14 billion in trade<br />
traffic annually.<br />
centreport’s transportation<br />
assets are being enhanced through<br />
some $500 million in infrastructure<br />
improvements, including:<br />
• construction of centreport canada<br />
way, a $212.5 million interstatequality<br />
expressway linking to<br />
winnipeg’s perimeter Highway<br />
• upgrading of the trans-canada<br />
Highway east and Highway 75<br />
south; the latter leads to the<br />
emerson border crossing and is<br />
part of the mid-continent trade and<br />
transportation corridor that links<br />
canada to the us and mexico<br />
these transportation assets and<br />
a strategic central location allow<br />
companies located at centreport to<br />
manage their global supply chains<br />
using major transportation corridors to<br />
access markets in the naFta trading<br />
area, europe and asia. manufacturers<br />
have shown an early interest in<br />
centreport based on its geographic<br />
location, transportation links, Ftz<br />
benefits for manufacturing inputs and<br />
manitoba tax incentives.
TRADE, INVESTIMENT AND THE PURSUIT OF PROSPERITY<br />
north american manufacturing sector to<br />
make this work.<br />
“because of the last few years,<br />
american firms have a greater<br />
appreciation of the need to increase<br />
exports of higher-quality and higherperformance<br />
goods, and to continue<br />
market diversification — as do<br />
canadian firms,” she said. “also, as<br />
in canada, us manufacturers have<br />
realized we need to prioritize innovation,<br />
to move from mind to market much<br />
more quickly. in this respect, canada<br />
and the us have much to share.<br />
“another area ripe for more<br />
cooperation concerns our talent<br />
pipeline. both canada and the us<br />
face challenges due to the aging of our<br />
workforces, the infusion of technology,<br />
and the need for higher skill levels.<br />
we need shared strategies. through<br />
connections like the great lakes<br />
“I’ve had people explain to me the Darwinian<br />
nature of markets. <strong>The</strong>y tell me that America<br />
has seen a natural evolution from farming to<br />
manufacturing to services. After all, they say, this<br />
has happened in other mature economies. But there is<br />
nothing predestined or inevitable about the industrial<br />
decline of the US, if we as a people are prepared to<br />
reverse it.<br />
“We would do much better to observe the example<br />
of China. <strong>The</strong>y’ve been growing fast because they<br />
24 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
“Both Canada and the US face challenges due<br />
to the aging of our workforces, the infusion of<br />
technology, and the need for higher skill levels.<br />
We need shared strategies.”<br />
manufacturing council, we can discuss<br />
a shared manufacturing agenda and<br />
work on talent development together,”<br />
Derocco said.<br />
(cme president & ceo Jayson myers<br />
is vice-chair of the council, which brings<br />
together representatives of the eight us<br />
states and two canadian provinces that<br />
make up the great lakes region.)<br />
“while washington, Dc and<br />
ottawa, as national capitals, set<br />
national policies that have impact<br />
on manufacturers’ structural costs,<br />
there are many issues, like talent<br />
development, that we can work<br />
on together at a regional level,”<br />
Derocco said.<br />
“many thinking people believe<br />
america has seen its best days” —<br />
people have repeated James allen’s<br />
words many times, in many different<br />
ways, throughout american history.<br />
but no matter what the challenge,<br />
our neighbours have repeatedly proven<br />
that they are among the world’s most<br />
resourceful, inventive and imaginative<br />
people. the Great Recession has been<br />
tough on the americans, yes, but it’s far,<br />
far too early to start writing a eulogy for<br />
the us as an economic power.<br />
invest in technology and they make things. <strong>The</strong>y<br />
have no intention of letting up in manufacturing in<br />
order to evolve into a service economy. <strong>The</strong>y know<br />
where the money is and they aim to get there first.<br />
“America has to get back in that game. As I said<br />
earlier, it starts with a strong core of innovation. But<br />
we also need a financial system that is built around<br />
helping industrial companies to succeed.”<br />
Jeffrey R. Immelt,<br />
Chairman and CEO of GE<br />
speaking to the Detroit Economic Club on June 26, <strong>20</strong>09
Revitalizing Canada’s manufacturing industry<br />
requires investments in talent, R&D by luc martin, deloitte Canada’s<br />
national manufacturing leader<br />
according to a recent report<br />
from Deloitte, <strong>20</strong>10 Global<br />
Manufacturing Competitiveness<br />
Index, talent-driven innovation is the<br />
number one driver of competitiveness in<br />
manufacturing worldwide.<br />
based on a survey of more than<br />
400 global chief executive officers<br />
and senior manufacturing executives<br />
and on interviews with key decision<br />
makers in the sector, this report<br />
provides the distinctive perspective<br />
of manufacturing leaders on their<br />
investment environments.<br />
Canada middle of the<br />
road and holding<br />
leading the world in manufacturing<br />
competitiveness are emerging<br />
economies such as china, india and the<br />
republic of Korea. canada is ranked<br />
13th overall among the 26 countries<br />
reviewed, an average performance.<br />
in five years, the manufacturing<br />
leaders who participated in the study<br />
expect the top countries to maintain<br />
their position, while they see brazil<br />
edging out the us for 4th place, and<br />
mexico overtaking Japan for 6th . they<br />
do not expect canada’s position to<br />
improve over that period.<br />
this suggests that both current<br />
and future investments in canada’s<br />
manufacturing industry are at risk<br />
as investors turn to more dynamic<br />
markets, particularly since canadian<br />
manufacturers are often subsidiaries of<br />
foreign investors.<br />
Talent and innovation the<br />
keys to competitiveness<br />
the report shows that while traditional<br />
elements of the competitiveness<br />
mix such as labour, materials, energy,<br />
infrastructure and tax systems continue<br />
to play a role, they now rank below<br />
talent-driven innovation.<br />
according to the report, the top countries<br />
benefit from their steady supply<br />
of highly skilled workers, scientists,<br />
researchers, engineers and teachers<br />
who continuously support innovation<br />
and improve efficiency.<br />
For example, current index leader<br />
china is not only perceived as having<br />
the highly-skilled workforce, its government<br />
is seen as committed to investing<br />
in science, technology and manufacturing<br />
physical infrastructure to accelerate<br />
the technological value-add of chinese<br />
production and innovation.<br />
second place india scores high points<br />
for its rich talent pool as well as its<br />
strength in research and development,<br />
engineering, software and technology<br />
integration. india is also seen as rapidly<br />
expanding its capabilities in engineering<br />
design and development and embedded<br />
software development which form<br />
an integral part of many modern-day<br />
manufactured products.<br />
significantly, china, india and other<br />
emerging countries still enjoy labour<br />
cost advantages, an area in which it is<br />
difficult for canada to compete.<br />
Canada’s competitive challenge<br />
in commenting on the new report,<br />
Jayson myers, president & ceo of the<br />
canadian manufacturers & exporters<br />
said, “manufacturing plays a vital role<br />
in every country’s economy, providing<br />
high-value jobs and spurring innovation<br />
and growth. the findings of this new<br />
Deloitte report challenge canadian<br />
Full report:<br />
www.deloitte.com/ca/manufacturing-competitiveness<br />
businesses and governments to put in<br />
place incentives that will stimulate the<br />
country’s manufacturing industry in this<br />
rapidly changing environment.”<br />
the steady performance of the<br />
canadian economy overall means we<br />
have an opportunity to address our<br />
manufacturing competitiveness and<br />
jobs at home. three proactive steps we<br />
can take as a country are:<br />
9 Focus on highly-skilled talent.<br />
there may be a temptation to move<br />
away from the skills initiatives<br />
adopted during the downturn, but<br />
this would be a mistake. canadian<br />
businesses must review the way<br />
they encourage learning, and<br />
governments must prioritize a<br />
highly-skilled workforce.<br />
9 review the way invention is<br />
promoted to commercialization.<br />
major investments in r&D must<br />
be complemented with funding for<br />
the next level to provide support<br />
along the full innovation spectrum,<br />
including commercialization.<br />
“manufacturing plays a vital role in every country’s economy, providing<br />
high-value jobs and spurring innovation and growth. the findings of this<br />
new Deloitte report challenge canadian businesses and governments<br />
to put in place incentives that will stimulate the country’s manufacturing<br />
industry in this rapidly changing environment.”<br />
9 improve our tax systems. Deloitte<br />
has been recommending that<br />
canada introduce scientific<br />
research and experimental<br />
development (sr&eD) tax credit<br />
refundability for all businesses to<br />
compete with other countries’ tax<br />
incentive regimes. this move would<br />
give appropriate recognition to the<br />
risks involved in r&D investment.
as a former premier of a province<br />
with a strong manufacturing<br />
base, i came to this job of<br />
canadian ambassador to the us with<br />
a great deal of respect for the role that<br />
manufacturing plays in our economy<br />
and the excellent work done by groups<br />
such as canadian manufacturers &<br />
exporters (cme). supply chains and<br />
business links are the foundation of<br />
our common prosperity and we must<br />
continue to foster them. we have to get<br />
back to fundamentals and do what has<br />
always worked well for us. that’s why i<br />
am working closely alongside partners<br />
on both sides of the canada-us border<br />
to strengthen and enhance this uniquely<br />
profitable partnership.<br />
the government of canada is a strong<br />
advocate for a robust and integrated<br />
north american economy that is built<br />
on mutually supporting strengths. the<br />
canadian and american economies are<br />
truly inseparable, a fact borne out by<br />
the million dollars worth of trade that<br />
crosses our border each minute. this<br />
is best illustrated by the example of<br />
steel. steel that is refined in canada is<br />
bought by caterpillar in illinois. in illinois,<br />
that steel is used to make industrial<br />
machinery that is later shipped to<br />
canada to extract oil, minerals and gas<br />
that is then exported back to the us.<br />
this is the kind of cooperative business<br />
cycle that is being quietly replayed<br />
hundreds of times today and every day<br />
across north america. it represents<br />
an advanced, efficient and forward-<br />
26 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
Strengthening economic<br />
bonds that bind us<br />
looking manufacturing vision for both<br />
our countries. it exemplifies the fact that<br />
canada and the us truly “make things<br />
together” – with manufacturing being<br />
an extricable part of the north american<br />
success story.<br />
the success of the canada-us<br />
relationship is not without its occasional<br />
challenges. when i first arrived as<br />
ambassador, one of the priority issues<br />
was the Buy American dispute. over<br />
the course of several intense months,<br />
the government of canada, alongside<br />
our provincial and municipal partners,<br />
successfully negotiated an agreement<br />
with the us to grant canadian<br />
companies access to government<br />
procurement contracts under the us<br />
stimulus package. this agreement<br />
has set the stage for future dialogue<br />
with the aim of bringing about longterm<br />
certainty to canadian and us<br />
companies engaged in cross-border<br />
economic activity. our overarching goal<br />
is to ensure a secure and open trading<br />
relationship which is founded upon longterm<br />
interests, reciprocity and merit.<br />
our objective of protecting and<br />
enhancing cross-border trade has been<br />
buoyed by our many allies in canada,<br />
of which cme is certainly one, and by<br />
strong and active constituencies within<br />
By gAry DOEr<br />
CANADIAN AMBASSADOr TO ThE US<br />
the us. there are many in us politics<br />
and industry who understand what is<br />
at stake: eight million us jobs depend<br />
on trade with canada; the benefits<br />
of building things together accrue to<br />
both countries. back in <strong>20</strong>09, our two<br />
countries came together to rescue the<br />
north american auto industry – the<br />
largest manufacturing sector for both<br />
of us. as a result of our bold actions,<br />
the auto industry stabilized and workers<br />
are now benefiting from increased<br />
Our objective of protecting and enhancing cross-border<br />
trade has been buoyed by our many allies in Canada,<br />
of which CME is certainly one, and by strong and active<br />
constituencies within the US.<br />
production and new capital investments<br />
in facilities on both sides of the border.<br />
we bring to canadian and us<br />
audiences not only a message of current<br />
successes but of future opportunities.<br />
we share with them the vision offered<br />
by the proposed energy projects and<br />
Detroit river international crossing,<br />
which promise to strengthen our<br />
economic bonds and generate jobs<br />
for many decades to come. we also<br />
tell the story of innovation and the<br />
abundant opportunities for clean energy,<br />
and increased clean hydro-electric<br />
production which would result in new<br />
technologies and an array of high-quality<br />
manufactured inputs. For the future of<br />
our relationship, there are great ideas<br />
and great potential; we are committed to<br />
moving the agenda forward.
Making a great<br />
relationship even better<br />
By DAVID JACOBSON,<br />
US AMBASSADOr TO CANADA<br />
the us and canada enjoy<br />
a unique economic<br />
partnership. our two nations<br />
share the world’s largest and most<br />
comprehensive trading relationship with<br />
more than $1.3 billion of two-way trade<br />
crossing the border every day.<br />
trade is a critical part of our prosperity;<br />
it supports millions of jobs in each<br />
country and helps to maintain the way of<br />
life and improve the standards of living<br />
for millions of americans and canadians.<br />
a relationship this important cannot<br />
be taken for granted. it must be<br />
examined and renewed continually.<br />
From time to time the relationship will<br />
face challenges, but working together to<br />
resolve these challenges will only serve<br />
to strengthen the relationship in the end.<br />
the recent global economic crisis<br />
presented challenges for all of us.<br />
During difficult times it is natural to look<br />
inward. such was the case with Buy<br />
American provisions for us stimulus<br />
spending. However, it is a testament to<br />
the strength of our relationship, that our<br />
two countries came together to create<br />
an agreement that creates more open<br />
cross-border government procurement<br />
with expanded market access<br />
opportunities for suppliers of goods and<br />
services on both sides of the border<br />
now and in the future.<br />
a strong relationship is also built on<br />
forward thinking and innovation. two<br />
areas that i find very exciting are finding<br />
ways to bring more companies into the<br />
trading world and expanding the north<br />
american economy through innovation.<br />
on march 11, <strong>20</strong>10, president obama<br />
announced the national export initiative<br />
(nei). the nei is a plan to better assist<br />
american businesses that want to sell<br />
their goods and services abroad. the<br />
nei is important to canada because<br />
as the us exports more, it also imports<br />
more. not only does this grow the<br />
amount of total trade between our two<br />
countries but, as new businesses enter<br />
the trade arena, they also join cross<br />
border supply chains which provide a<br />
range of new opportunities for canadian<br />
buyers and sellers. the nei will grow<br />
the north american economy, which<br />
will mean canadians and americans<br />
will benefit.<br />
as neighbours, we are each other’s<br />
logical first markets for first time<br />
exporters, many of which are small<br />
and medium-sized businesses. we<br />
want these businesses on both sides<br />
of the border to flourish. leaders<br />
in both of our countries have been<br />
concerned about manufacturing jobs<br />
disappearing overseas.<br />
president obama has said that he<br />
expects our commitment to clean<br />
energy to create more than 800,000<br />
jobs by <strong>20</strong>12. that’s not just creating<br />
work in the short term, that’s going<br />
to help lay the foundation for lasting<br />
economic growth.<br />
one of the most important aspects<br />
of keeping our economies strong and<br />
competitive in a changing world is<br />
innovation.<br />
both the us and canada have been<br />
world leaders in innovation and we don’t<br />
want to lose ground by not investing in<br />
the creation of new knowledge and not<br />
protecting the knowledge that we are<br />
already creating.<br />
Joint programs focused on<br />
reinvigorating the auto sector and<br />
developing green, sustainable energy<br />
are both important contributors to new<br />
knowledge.<br />
meanwhile, in order to protect our<br />
knowledge products and to keep our<br />
best minds from relocating elsewhere it<br />
Both the US and Canada have been world leaders in<br />
innovation and we don’t want to lose ground by not<br />
investing in the creation of new knowledge and not<br />
protecting the knowledge that we are already creating.<br />
is important to have a strong intellectual<br />
property (ip) regime.<br />
this includes not only strong laws for<br />
the protection of copyright and other<br />
forms of ip, but also the resources to<br />
enforce these laws.<br />
i am very encouraged by the steps<br />
that canada and the us have taken<br />
together during difficult economic times<br />
and am excited by the opportunities<br />
that are now before us to make a great<br />
economic relationship even better.<br />
CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 27
Friends, neighbo(u)rs and business partners:<br />
<strong>The</strong> pursuit of prosperity<br />
“I know some aspects of<br />
trade invariably cause political<br />
concerns, but nobody should<br />
think for a minute that trade<br />
between Canada and the<br />
United States is anything but a<br />
benefit between the two of us.”<br />
Stephen Harper<br />
did you know:<br />
• more than half of alberta’s oil and<br />
gas production is exported to the us,<br />
supplying markets from california to<br />
new york.<br />
• in <strong>20</strong>09, bilateral alberta-us merchandise<br />
trade totalled $76.2 billion.<br />
28 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
“We are happy to be your<br />
neighbour. We want to<br />
remain your friend. We<br />
are determined to be your<br />
partner and we are intent<br />
on working closely with you<br />
in a spirit of co-operation.”<br />
Ronald Reagan<br />
did you know:<br />
• 931,900 jobs in california depend on<br />
trade with canada.<br />
• in <strong>20</strong>09, bilateral california-canada<br />
merchandise trade totalled<br />
$28.3 billion.<br />
“<strong>The</strong> word ‘protection’<br />
itself must be taboo, but<br />
we can ring the changes<br />
on National Policy, paying<br />
the US in their own coin.”<br />
Sir John A. Macdonald<br />
did you know:<br />
• the Detroit–windsor gateway is<br />
the largest trade corridor in north<br />
america. its ambassador bridge<br />
accounts for as much trade as the us<br />
does with Japan in a year.<br />
• in <strong>20</strong>09, bilateral ontario-us<br />
merchandise trade totalled<br />
$285.7 billion.<br />
“Your country, my country<br />
— each is a better and<br />
stronger and more<br />
influential nation because<br />
each can rely upon every<br />
resource of the other in<br />
days of crisis. Beyond this,<br />
each can work and grow and prosper<br />
with the other through years of<br />
quiet peace.”<br />
Dwight Eisenhower<br />
did you know:<br />
• 625,000 jobs in texas depend on<br />
trade with canada.<br />
• in <strong>20</strong>09, bilateral texas-canada<br />
merchandise trade totalled $21.1<br />
billion.
did you know:<br />
• Quebec’s aerospace industry is home to<br />
260 companies, including 17 world-class<br />
contractors and equipment outfitters,<br />
and 70 per cent of aerospace r&D.<br />
• in <strong>20</strong>09, bilateral Quebec-us<br />
merchandise trade totalled $66.4 billion.<br />
“I think that Canada is one of<br />
the most impressive countries<br />
in the world, the way it has<br />
managed a diverse population,<br />
a migrant economy. Obviously<br />
there is enormous kinship<br />
between the United States<br />
and Canada, and the ties that<br />
bind our two countries together are things<br />
that are very important to us.”<br />
Barack Obama<br />
did you know:<br />
• canada was illinois’ main trading partner,<br />
purchasing almost 30 per cent of the<br />
state’s foreign-bound goods.<br />
• in <strong>20</strong>09, bilateral illinois-canada<br />
merchandise trade totalled $38.8 billion.<br />
“Living next to the United<br />
States is in some ways like<br />
sleeping with an elephant.<br />
No matter how friendly<br />
and even-tempered is the<br />
beast, one is affected by<br />
every twitch and grunt.”<br />
“In a world darkened by<br />
ethnic conflicts that tear<br />
nations apart, Canada<br />
stands as a model of how<br />
people of different cultures<br />
can live and work together<br />
in peace, prosperity and<br />
mutual respect.”<br />
Bill Clinton<br />
did you know:<br />
• 68,800 jobs in arkansas depend on<br />
trade with canada.<br />
• in <strong>20</strong>09, bilateral arkansas-canada<br />
merchandise trade totalled<br />
$1.8 billion.<br />
Pierre Trudeau “Geography has made<br />
us neighbours. History<br />
has made us friends.<br />
Economics has made us<br />
partners. And necessity<br />
has made us allies. Those<br />
whom nature hath so<br />
joined together, let no<br />
man put asunder. What unites us is far<br />
greater than what divides us.”<br />
John F. Kennedy<br />
did you know:<br />
• 190,900 jobs in massachusetts depend<br />
on trade with canada.<br />
• in <strong>20</strong>09, bilateral massachusettscanada<br />
merchandise trade totalled<br />
$8.8 billion.<br />
“I have never heard a<br />
Canadian refer to an<br />
American as a ‘foreigner.’<br />
He is just an ‘American.’<br />
And, in the same way,<br />
in the United States,<br />
Canadians are not<br />
‘foreigners,’ they are ‘Canadians.’ That<br />
simple little distinction illustrates to me<br />
better than anything else the relationship<br />
between our two countries.”<br />
Franklin Roosevelt<br />
did you know:<br />
• 517,000 jobs in new york depend on<br />
trade with canada.<br />
• in <strong>20</strong>09, bilateral new york-canada<br />
merchandise trade totalled $29 billion.<br />
CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 29
mr. president, you get<br />
generally high marks for your<br />
performance to date. if you<br />
want to go to the head of the class,<br />
take a cue from the cme members<br />
<strong>20</strong>/<strong>20</strong> consulted, and get to work on the<br />
canada-us trade file.<br />
<strong>20</strong>/<strong>20</strong> started with veso sobot,<br />
director of corporate affairs at ipex<br />
management inc., a canada-based<br />
exporter of thermoplastic pipes,<br />
with 15 plants across canada and<br />
two in the us. on one hand, sobot<br />
complimented obama for working well<br />
with prime minister stephen Harper<br />
on the canada-us trade file. “the<br />
us congress’ Buy American policy<br />
represents protectionism at its most<br />
blatant,” sobot said. “i think president<br />
obama recognizes this. He understands<br />
how protectionism will hurt the us’<br />
30 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
President Obama:<br />
Advantage Canada?<br />
by eK HornbecK<br />
He has been on the job for less than two years — so is it too<br />
early to ask if President Barack obama has been good for<br />
Canada, and good for Canada’s manufacturers and exporters?<br />
effort to export its way out of the<br />
recession. and i am impressed with<br />
how our prime minister has gone about<br />
working with president obama to try to<br />
correct this clear us protectionism.”<br />
on the other hand, sobot cautioned<br />
that canada needs deeds, rather than<br />
more words, from obama when it<br />
comes to trade. “president obama says<br />
he wants to double the us’ exports to<br />
canada. but if canada were to impose<br />
on the us the same restrictions that<br />
congress has imposed on canada,<br />
he couldn’t achieve this goal. He’s<br />
really got to look at this issue from a<br />
reciprocal trade perspective. as for the<br />
question of whether the president been<br />
good for canada — we will know the<br />
answer to that question after the next<br />
round of canada-us trade talks.”<br />
to get a western canadian<br />
perspective on president obama, we<br />
turned to craig mcintosh, president<br />
and ceo of custom plastic parts maker<br />
“Any strategy to restore the US [economy] will involve<br />
Canada, and a ‘North American’ approach – we are<br />
stronger together.”<br />
acrylon plastics inc. (head office in<br />
winnipeg, mb). He shared the following:<br />
“in terms of benefiting canada,<br />
the fact that president obama has<br />
continued the stimulus effort in the us<br />
and kept the us economy pumping<br />
when it might otherwise stall — that’s<br />
been very important. we’ve seen how
the stimulus has benefited our us<br />
customers, and these benefits have<br />
trickled down to our company.”<br />
president obama has also been good<br />
for canada-us ties, mcintosh said. “at<br />
a philosophical level, president bush<br />
came across at times like he was trying<br />
to build a ‘Fortress america,’ with high<br />
security at the border, etc. compared<br />
to the bush years, obama’s more open<br />
attitude [toward the world] appears to<br />
be making a difference at the border,<br />
here in manitoba. i’m seeing fewer<br />
trucks turned back, for example.”<br />
next, we spoke with lorne Janes,<br />
the president of paradise, nl-based<br />
continental marble of canada ltd., a<br />
supplier of cast marble, granite, flooring<br />
and home furnishings. continental<br />
marble has exported to the us for<br />
about 25 years.<br />
“the question of whether president<br />
obama has been good for canadian<br />
manufacturing/exporting is a bit selfishsounding<br />
to me,” Janes said. “instead,<br />
we in the canadian business community,<br />
as we think of how president obama<br />
can help canada, at the same time<br />
[need to consider] how can we help him<br />
with the us business community. we,<br />
as canadians, need to remember that<br />
nothing in life is one sided, that there<br />
is always a balance sheet. we must<br />
remember this,” Janes said.<br />
“any strategy to restore the us<br />
[economy] will involve canada, and<br />
a ‘north american’ approach – we<br />
are stronger together. i think we have<br />
a better chance of success with<br />
president obama, on issues like the<br />
reduction of tariffs, refinements to trade<br />
regulations, getting things across the<br />
border and Buy American, than we<br />
would with some of his white House<br />
predecessors,” Janes said.<br />
we also spoke with John Hayward,<br />
president of Hayward gordon ltd.,<br />
which engineers, designs, manufactures<br />
and distributes equipment serving the<br />
wastewater sector. Hayward gordon<br />
ltd’s head office is located in Halton<br />
Hills, on.<br />
“During president obama’s visit<br />
to canada, we heard a lot about<br />
the importance of the canada-us<br />
relationship and his desire to see the<br />
trade relationship grow,” Hayward<br />
said. “this is a genuine sentiment, i<br />
think, on the us side. but there’s a<br />
“We need to see actions on Buy American, particularly<br />
from the president, that live up to the spirit of this<br />
talk of the importance of mutually beneficial trade<br />
between our two countries.”<br />
major disconnect, in that Buy American<br />
provisions keep cropping up in us<br />
stimulus plans.<br />
“i understand the us’ frustration<br />
with trade partners who manipulate<br />
currencies, or put up broad barriers to<br />
us exports. canada is not, however,<br />
one of those partners. i hope that the<br />
us can address this inconsistency<br />
between what is said in public about<br />
trade with canada, and what actions<br />
take place in congress. we need to see<br />
actions on Buy American, particularly<br />
from the president, that live up to the<br />
spirit of this talk of the importance of<br />
mutually beneficial trade between our<br />
two countries.”<br />
“Canadians are very<br />
interested in what President<br />
Obama has said so far about<br />
trade. In his State of the<br />
Union address, President<br />
Obama committed to doubling<br />
US foreign trade in five years.<br />
However, his preoccupation<br />
with the BP oil spill, with<br />
health care, etc. means that<br />
he has not expended much<br />
energy on trade relations,<br />
including Canada-US trade.<br />
Also, many of President<br />
Obama’s Congressional<br />
allies question the value of<br />
free trade agreements to<br />
the US. This combination of<br />
political distractions and tepid<br />
support for free trade among<br />
Democrats, means President<br />
Obama has found little<br />
traction on trade issues.”<br />
Alan S. Alexandroff, co-director,<br />
G-<strong>20</strong> Research Group, at the<br />
University of Toronto’s<br />
Munk School of Global Affairs<br />
CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 31
valuing canadian business<br />
the canadian business<br />
community is one of the<br />
largest us trading partners.<br />
our relationship is built on a history of<br />
friendship and cooperation between<br />
our two countries that is a model for<br />
the world.<br />
as leader of cbp, i pledge to support<br />
and enhance our partnership with the<br />
goal of strengthening continental trade<br />
and transit security and streamlining<br />
the flow of people and goods between<br />
our nations.<br />
i invite canadian manufacturers<br />
& exporters and <strong>20</strong>/<strong>20</strong> magazine to<br />
examine and comment on the following<br />
32 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
propositions central to our commitment<br />
to strengthen canadian-us trade:<br />
• For canada and the us, trade is<br />
key to national economic prosperity and<br />
to our countries’ competitiveness in a<br />
global economy.<br />
• Facilitating the secure flow of lawful<br />
goods and cargo and passengers and<br />
people across our borders is central<br />
to effective trade policy and efficient<br />
customs practice.<br />
• enhanced security and the<br />
expedited flow of lawful commerce<br />
and travel are achieved through<br />
risk management aligned with<br />
traffic segmentation.<br />
by alan D. bersin,<br />
commissioner oF us customs<br />
anD borDer protection<br />
At US Customs and Border Protection, we have made understanding<br />
the needs of business a top priority<br />
• bilateral cooperation in the areas of<br />
joint threat assessments and targeting,<br />
harmonized trusted traveller and<br />
shipper programs, and coordinated<br />
border management operations and<br />
infrastructure are key to the binational<br />
public-private partnerships we<br />
need for north american prosperity<br />
and competitiveness.<br />
the mission of cbp is to keep<br />
dangerous people and dangerous<br />
things away from our physical borders<br />
and to foster lawful international trade<br />
and travel.<br />
security and trade – two concepts<br />
often viewed in opposition to each<br />
[ continued on page 34 ]
Dr. Battery<br />
<strong>The</strong> power behind Dr. Battery’s global commerce<br />
When Joshua Huen found himself in the<br />
nondescript waiting area of an international<br />
airport in <strong>20</strong>06, he never would have imagined<br />
he would discover a brilliant business idea all<br />
around him.<br />
<strong>The</strong>re, among the airport’s bustling pathways,<br />
was a growing mass of travelers accompanied<br />
by an array of digital gadgets. “<strong>The</strong>re were<br />
laptops and MP3 players, digital camcorders,<br />
still-shot cameras and cell phones, but there<br />
were so few power outlets available for them to<br />
be plugged into,” recalls Huen.<br />
And so was born the powerful foundation<br />
behind Dr. Battery, Canada’s largest aftermarket<br />
battery reseller.<br />
Since <strong>20</strong>06, Huen — who was already a<br />
successful businessman — has sold half a<br />
million batteries and power supplies for various<br />
digital and electronic devices to households and<br />
businesses in more than 25 countries, with a<br />
focus in North America. <strong>The</strong> entrepreneur used<br />
e-commerce to spread the word about<br />
Dr. Battery and to make contact with<br />
prospective clients throughout the country.<br />
Though the original concept behind Dr. Battery<br />
was solid, as volume grew it became apparent<br />
that the supply chain was getting increasingly<br />
complicated. <strong>The</strong> batteries were assembled by<br />
suppliers in China and shipped to Hong Kong<br />
for transport to Canada. Once here, they were<br />
then distributed to customers via the Richmond,<br />
British Columbia warehouse. Each package<br />
crossing Canada’s borders took approximately<br />
three to four hours to process.<br />
“<strong>The</strong> whole process was time consuming and<br />
inefficient,” said Fan Chun, Chief Financial<br />
Officer for Dr. Battery. “It was very frustrating.”<br />
Huen and Chun sought the support of a third<br />
party to assist primarily with e-commerce but<br />
also the facilitation of cross-border shipping.<br />
“Right away, UPS showed itself to be an<br />
innovative and committed partner,” said Chun.<br />
“It customized its services to our needs and<br />
lessened the time it takes to get our packages<br />
across the border. Now we can track every<br />
package every step of the way, which is a huge<br />
benefit to us and our customers.”<br />
To help Dr. Battery get its products across the<br />
border more smoothly, UPS Trade Direct ® was<br />
implemented, which consolidates multiple<br />
parcels into one large shipment, leaving only<br />
one set of paperwork to process and helping the<br />
company save on customs brokerage fees.<br />
In addition, UPS Worldwide Express Saver<br />
service ensures Dr. Battery receives its products<br />
within three days from Asia. Finally, UPS<br />
Quantum View ® allowed Dr. Battery to track its<br />
packages as they made the journey from Hong<br />
Kong and allowed Dr. Battery’s customers to<br />
track their individual orders from their origin at<br />
the Richmond warehouse.<br />
To seamlessly integrate UPS’s services into<br />
Dr. Battery’s everyday operations, UPS<br />
networked the company’s data system with its<br />
own database. Today, Dr. Battery’s customers<br />
can place an online order through its website,<br />
an address label is generated within 30 seconds<br />
and the shipping process can begin. “When a<br />
shipment leaves Hong Kong on a Tuesday, we<br />
receive it on Tuesday our time,” says Chung. “It<br />
used to take more than four days.”<br />
<strong>The</strong> result for Dr. Battery was triple-digit<br />
growth. Today the company ships 400 to 450<br />
packages a day, and UPS has become a critical<br />
business partner. “Today, when we take on a<br />
new sector of the market, or a new venture, we<br />
involve UPS in the decision-making process,<br />
because our operations are married together,”<br />
says Chun. “Partnering with UPS has been one<br />
of the pivotal success factors of our company.”<br />
For more information about the products and services above, please visit UPS.com ® .<br />
For more information on Dr. Battery, please visit www.drbattery.com.<br />
©<strong>20</strong>10 United Parcel Service of America, Inc. UPS, the UPS brandmark and the colour brown are trademarks of United Parcel Service of America, Inc.<br />
All rights reserved<br />
“In the battery<br />
market, pricing<br />
and speed of<br />
delivery are the<br />
most important<br />
factors. With<br />
UPS, there is no<br />
question we get<br />
the competitive<br />
advantage.”<br />
Fan Chun,<br />
Chief Financial Officer,<br />
Dr. Battery<br />
UPS.com ®<br />
1-800-Pick-UPS ®
other — in fact are two dimensions of a<br />
single phenomenon.<br />
we must be safe to prosper; we must<br />
prosper to stay safe.<br />
to promote trade and increase<br />
security simultaneously, we manage<br />
risk. as business people, you manage<br />
risk every day.<br />
For cbp, effective risk management<br />
means we must make choices about<br />
whom and what receives inspection<br />
attention (and resources) at our ports<br />
of entry. this, in turn, involves traffic<br />
segmentation – distinguishing among<br />
people and companies with whom we<br />
have established a relationship of trust<br />
and confidence from those about whom<br />
we have adverse information or about<br />
which we have too little information to<br />
make an informed judgement.<br />
by expediting the lawful traffic<br />
of passengers and cargo, we can<br />
concentrate our limited resources on<br />
those people and cargo about which<br />
we know little, or about which we have<br />
reason for concern.<br />
to do this, we must build partnerships<br />
across the board, not only with foreign<br />
governments via mutual recognition<br />
agreements, but with the private sector.<br />
with $2 trillion us worth of annual<br />
imports and 57,000 containers and<br />
a million passengers entering our<br />
country each day, we need to segment<br />
according to risk and we need to<br />
engage our private sector partners to<br />
build supply-chain security.<br />
to accomplish that, we offer a grand<br />
bargain. in exchange for substantially<br />
more information that you give us and<br />
which we safeguard, we significantly<br />
expedite the flow of your lawful and<br />
trusted cargo and people. the sooner<br />
we receive the information and the<br />
further away from our physical borders<br />
that we receive it, the faster your cargo<br />
will be released once it reaches our<br />
34 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
ports and the earlier in the process you<br />
will know that and be able to take it<br />
into account.<br />
together, and straightforwardly,<br />
we satisfy our mutual interest and<br />
shared need for reliable security and<br />
expedited trade.<br />
cbp’s customs-trade partnership<br />
against terrorism (c-tpat) is working<br />
and we are determined to make it<br />
work better and be perceived as such<br />
so that we can expand membership<br />
dramatically. membership grew by more<br />
than 10 per cent between <strong>20</strong>08 and<br />
<strong>20</strong>09 to 9,885 trade partners today.<br />
the c-tpat members entering the<br />
us from canada are more than four<br />
times less likely to be subject to cbp<br />
examination than non-members.<br />
these trade partners also receive<br />
“front of line” cbp inspections. the<br />
preliminary findings of our second<br />
c-tpat member survey – due for<br />
release later this year – show that<br />
overall c-tpat has had a very positive<br />
impact on the businesses participating<br />
in the program in the field of workforce<br />
security, decreased cargo release<br />
times and increased predictability in<br />
moving goods.<br />
cbp is working hard to improve<br />
service. we recently established the<br />
commercial targeting and analysis<br />
center to enhance coordinated reviews<br />
and inspections to better protect<br />
consumers from unsafe imports.<br />
we implemented a new phase of the<br />
automated commercial environment to<br />
allow importers to file entry summaries<br />
electronically. we’re modernizing<br />
our ports of entry, including the<br />
infrastructure, much of which was built<br />
40 years ago with no concept of the<br />
kind of technology and personnel we<br />
now need or current flows of goods<br />
and people.<br />
cbp also is coordinating more closely<br />
and systematically with our partner<br />
agencies within the us government<br />
and with our colleagues at the canada<br />
border services agency.<br />
we’re expanding our direct and<br />
open dialogue with canadian and us<br />
For Canada and the US, trade is key to national<br />
economic prosperity and to our countries’<br />
competitiveness in a global economy.<br />
business stakeholders in the private<br />
sector to inform you of our latest<br />
developments and to hear how our<br />
programs affect your bottom line.<br />
tell us if we’re not being productive<br />
in our policies or practices and propose<br />
constructive changes. we’ll do the<br />
same, candidly and respectfully.<br />
French poet paul valéry has written:<br />
“the challenge of our times is that the<br />
future is not what it used to be.”<br />
we cannot rewind to a pre-9/11<br />
world or close our eyes to the new<br />
security and competitive challenges that<br />
confront us.<br />
canada and the us can only move<br />
ahead, facing these realities together,<br />
increasingly from a north american<br />
perspective and through a series of<br />
public-private partnerships.<br />
we welcome and earnestly solicit your<br />
participation in the reciprocal bargain<br />
that awaits us for the benefit of all.<br />
Alan D. Bersin has served as Commissioner of<br />
the US Customs and Border Protection since<br />
March <strong>20</strong>10. He oversees the operations of CBP’s<br />
57,000-employee work force and manages an<br />
operating budget of more than $11 billion US.
Accessing private capital<br />
and sound advice often key<br />
to successful succession<br />
as the baby boom generation<br />
reaches retirement age,<br />
thousands of entrepreneurial<br />
owners of successful companies face<br />
the challenge of succession. How<br />
do they exit their business smoothly,<br />
maintaining value, rewarding loyal<br />
employees and move onto retirement<br />
with a nice cheque?<br />
“it’s a real dilemma for many<br />
business owners,” explains Keith<br />
turner, president and ceo of meridian<br />
canada. “especially for those who<br />
have built their successful companies<br />
largely on their own cash flows and<br />
bank financing, they are more often<br />
than not completely unaware of creative<br />
financing and structuring options<br />
that can empower key management to<br />
buy them out at a fair value.”<br />
these business owners don’t have<br />
sophisticated corporate finance advice<br />
in-house and they have no idea where<br />
to start. most don’t really know what<br />
their business is worth.<br />
“it’s ironic that Fortune 500 companies<br />
who have a ‘capital event’ on the<br />
horizon will hire an investment banking<br />
firm even though the ceo has access<br />
to corporate finance and mergers and<br />
acquisition expertise in-house,” adds<br />
randy lennon, co-founder of meridian<br />
with turner and a 35-year entrepreneur<br />
himself. “try calling goldman sachs<br />
for help if your company is doing $<strong>20</strong><br />
million in revenues. they’re just not<br />
interested in deals that small. we are.”<br />
meridian canada (meridian merchant<br />
capital canada ltd. is the official name)<br />
has identified a major void in the market<br />
for corporate finance, mergers and acquisitions,<br />
and succession advice and<br />
access to capital for smaller companies<br />
$5 million to $250 million in revenues.<br />
since its formation in calgary in late<br />
<strong>20</strong>05, the company has opened offices<br />
in vancouver, edmonton and toronto,<br />
and closed more than 30 transactions.<br />
“we’re expanding because the need<br />
is there,” added turner.<br />
as a “european style” merchant<br />
banking firm, turner and lennon are<br />
proud of their “old school” approach.<br />
the european merchant banks grew to<br />
prominence during 17th and 18th centuries<br />
as the european colonies in the<br />
americas and asia flourished. During<br />
this time adventurer traders travelled<br />
the world in order to bring exotic goods<br />
back to europe. behind the traders<br />
were merchant bankers who ensured<br />
the commercial success of the adventurers;<br />
by financing their expeditions,<br />
and then negotiating and implementing<br />
trade transactions on their return.<br />
today meridian canada carries on<br />
that tradition as experienced financiers<br />
and entrepreneurs themselves.<br />
“it’s a sad fact that generally bankers<br />
and capital sources don’t understand<br />
entrepreneurs and entrepreneurs<br />
don’t understand bankers and<br />
capital sources. we bridge that gap<br />
of understanding because our people<br />
have experience on both sides of the<br />
equation. we’re proudly re-inventing the<br />
relationship between entrepreneurs and<br />
capital sources because we understand<br />
the disconnect and in most cases, know<br />
how to fix it,” states turner.<br />
“often, banks are not in a position<br />
to fully support the financing needs of<br />
growing, successful companies. that’s<br />
where our network of more than 340<br />
private capital sources come into play.”<br />
and that’s where an entrepreneur<br />
who’s thinking about his successful<br />
succession can call upon the experience,<br />
advice and access to capital that<br />
meridian canada provides.<br />
visit the meridian canada web site<br />
at www.meridiancanada.com or call<br />
randy lennon at 403-538-2131.<br />
Vancouver • Calgary • Edmonton • Toronto<br />
www.meridiancanada.com
TRADE, INVESTIMENT AND THE PURSUIT OF PROSPERITY<br />
An idea whose time has come<br />
if free trade defined canada-us<br />
relations in the past two decades,<br />
what will this decade be<br />
remembered for?<br />
greater regulatory alignment between<br />
canada and the us is certainly an idea<br />
whose time has come.<br />
if Canada-US Free Trade Agreement<br />
(cuFta) and naFta did wonders to<br />
grow trade between canada and the<br />
us, growing cross-border business<br />
now and in the future depends on north<br />
american manufacturers making more<br />
things together. making more things will<br />
require finding new customers in global<br />
markets and ensuring that we can<br />
compete in these markets.<br />
governments in north america have<br />
a critical role to play by ensuring that<br />
our continental trade policies sustain a<br />
competitive manufacturing sector.<br />
regulatory differences between<br />
canada and the us, and border<br />
regulations add to the cost of doing<br />
business in both countries. companies<br />
operating in both markets have to<br />
comply with two sets of regulations,<br />
and face additional compliance costs<br />
related to cross-border transactions.<br />
and lingering economic insecurity<br />
south of the border coupled with a<br />
36 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
growing mistrust for imported goods is<br />
leading to more legislation impacting<br />
foreign businesses selling goods into<br />
the us. americans are now demanding<br />
that imported products be inspected,<br />
tested and deemed safe before they<br />
are allowed into the us. this adds to<br />
the cost of cross-border business,<br />
and we can expect the burden to get<br />
worse for importers. while new us<br />
import regulations are usually aimed at<br />
overseas trading partners, all shipments<br />
entering the us must comply with the<br />
rules. in the end, canadian companies<br />
get sideswiped and end up paying the<br />
bulk of the price.<br />
this issue is not isolated to a few<br />
cases — 69 per cent of canadian<br />
manufacturers surveyed by statistics<br />
canada last year, reported that<br />
regulatory differences between canada<br />
and the us constitute a challenge to<br />
their business, and one out of four<br />
small and medium-sized manufacturers<br />
said they stopped exporting to the<br />
by Jean micHel laurin,<br />
vice presiDent, global business, cme<br />
“[We must create an effective] continental system composed of national policies and<br />
regulations that are equal in value and of similar effect, so we foster fair competition and<br />
maintain free trade in the integrated North American market.”<br />
Jim Prentice, Canada’s environment minister,<br />
explaining why Canada is aligning its climate change policy with the US.<br />
us because of border issues and<br />
regulatory differences.<br />
the government of canada has<br />
shown some openness to this<br />
issue by leading consultations<br />
on north american regulatory<br />
cooperation. meanwhile, president<br />
obama made the commitment to<br />
double us exports within the<br />
next five years.<br />
<strong>The</strong> idea of a “continental system of national<br />
policies that are equal in value and of similar<br />
effect” is an idea whose time has come.<br />
if we are serious about growing trade<br />
between our two countries by building<br />
on cuFta and naFta’s success and<br />
taking our relationship to the next level,<br />
now is the time for canada to take<br />
the lead in proposing an ambitious<br />
and innovative regulatory cooperation<br />
agenda that will facilitate cross-border<br />
business. the idea of a “continental<br />
system of national policies that are<br />
equal in value and of similar effect” is<br />
an idea whose time has come if we<br />
are serious about growing business<br />
between the two countries and<br />
competing in global markets.
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<strong>The</strong> Evolution of<br />
Manufacturing Competitiveness<br />
after enjoying decades<br />
of leadership in global<br />
manufacturing, north america<br />
is facing growing competition in<br />
the international economic arena.<br />
Developing nations are leveraging<br />
large labour pools and increasingly<br />
sophisticated production strategies<br />
to change the ground rules for global<br />
manufacturing competitiveness.<br />
From 1996 to <strong>20</strong>08, the number of<br />
developing countries with Fortune<br />
global 500 facilities increased by 525<br />
per cent, underscoring the scope and<br />
magnitude of this trend. emerging<br />
industrial centers like brazil, russia,<br />
india, china and others, pose a direct<br />
threat to north american job markets.<br />
to mitigate these threats and bolster<br />
domestic manufacturing bases, we<br />
must change the conversation about<br />
manufacturing to reflect that the<br />
paradigm has shifted from a “goodsonly”<br />
production model to encompass<br />
research, design and service provision.<br />
as a sector, manufacturing has<br />
evolved, but our understanding of it<br />
has not. in today’s global landscape,<br />
manufacturers are inventors, innovators,<br />
global supply chain managers and<br />
service providers. meanwhile, the<br />
source of our competition has evolved<br />
as well. where labour costs were once<br />
the main driver of north america’s<br />
eroding competitiveness, the availability<br />
and quality of talent is now the most<br />
38 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
by JacK mcDougle,<br />
senior vice presiDent, tHe council on competitiveness<br />
As a sector, manufacturing has evolved, but our understanding of it has not.<br />
In today’s global landscape, manufacturers are inventors, innovators, global<br />
supply chain managers and service providers<br />
important ingredient for a competitive<br />
business environment.<br />
Findings from the newly-released<br />
<strong>20</strong>10 Annual Global Manufacturing<br />
Competitiveness Index, commissioned<br />
by the council on competitiveness and<br />
Deloitte, indicate that decision makers<br />
are recognizing this critical shift. the<br />
index, which polled more than 400<br />
chief executive officers and senior<br />
manufacturing executives worldwide,<br />
identified talent driven innovation<br />
as the central factor accelerating<br />
economic competitiveness.<br />
the index also delivered sobering<br />
news regarding how executives<br />
expect manufacturers in the western<br />
hemisphere to fare in the next five<br />
years. respondents targeted china,<br />
india and the republic of Korea as the<br />
most fertile ground for manufacturing<br />
investment, now and in the five-year<br />
outlook. sustained commitments to<br />
science, technology and innovation,<br />
coupled with strong national support<br />
for the manufacturing sector, have<br />
positioned these nations to dominate<br />
high-value manufacturing in the near<br />
and medium terms.<br />
to continue to be manufacturing<br />
leaders in this fundamentally new global<br />
environment, north america must<br />
develop a comprehensive strategy<br />
that addresses these challenges.<br />
the council on competitiveness is<br />
launching a new multi-year project<br />
to create a holistic manufacturing<br />
strategy that will be delivered to<br />
us private sector leaders, the<br />
administration, congress, governors<br />
and other key stakeholders at a national<br />
manufacturing summit in late <strong>20</strong>11.<br />
the initiative will focus on<br />
strengthening four pillars to support<br />
a vibrant manufacturing sector in<br />
the us, and its findings can provide<br />
a manufacturing blueprint for the<br />
entire region.<br />
Talent<br />
Despite unacceptably high<br />
unemployment in north america, many<br />
manufacturers are not finding the<br />
middle-skilled workers with technical<br />
training that they need. not only does<br />
this harm the domestic economy, but<br />
it contributes to the migration of entire<br />
industries away from the region.<br />
the largest number of jobs for the next<br />
10-15 years will be in critical middleskilled<br />
areas – these jobs pay relatively<br />
well, but talent is in short supply. we<br />
must focus state and federal workforce<br />
training dollars, community college<br />
curriculums and union membership<br />
programs to meet these needs.<br />
Technology<br />
north america owes much of its<br />
economic success to its leadership in<br />
the technology sector. we are still the<br />
uncontested leaders in computational<br />
[ continued on page 40 ]
Canadian Wind Energy Association<br />
Annual Conference and Exhibition<br />
November 1–3, <strong>20</strong>10<br />
Montreal, Quebec<br />
CanWEA’s Annual Conference and Exhibition will bring<br />
together over 2,500 delegates and 250 exhibiting<br />
companies from around the world to discuss the<br />
latest developments and emerging opportunities in<br />
Canada’s fast growing wind energy industry.<br />
<strong>The</strong> event will provide an exclusive opportunity<br />
to network with industry leaders and generate<br />
new business.<br />
Join us at Canada’s largest renewable energy<br />
conference to explore new manufacturing<br />
opportunities and to find out how your company<br />
can get involved in the wind industry.<br />
www.canwea<strong>20</strong>10.ca<br />
REGISTER<br />
Learn more about the emerging<br />
opportunities in the Canadian<br />
wind energy industry<br />
EXHIBIT<br />
Promote your products and<br />
services and network with global<br />
industry professionals<br />
SPONSOR<br />
Enhance your corporate visibility<br />
and position your company as a<br />
leader in this rapidly growing industry
As a sector, manufacturing has evolved, but our<br />
understanding of it has not. In today’s global<br />
landscape, manufacturers are inventors, innovators,<br />
global supply chain managers and service providers.<br />
modelling that reduces cost, complexity<br />
and time to market. However, that<br />
capability continues to be underutilized<br />
by the region’s manufacturers. the<br />
power of high-performance computing<br />
must be expanded to small and<br />
medium-sized firms through better<br />
training, increased public-private<br />
partnerships and greater deployment.<br />
the productivity, adaptability, quality<br />
and innovative capacity of small, lowertier<br />
producers are critical elements for a<br />
thriving manufacturing sector.<br />
Investment<br />
High taxes and burdensome<br />
regulations continue to raise business<br />
costs, making the us a less attractive<br />
Conceived as a business organization<br />
for the 21st century, the<br />
Global Business Dialogue was<br />
launched in the spring of <strong>20</strong>00. It is a<br />
membership organization that exists<br />
to serve its members and others in the<br />
global business community.<br />
At the heart of that community are<br />
the men and women around the world<br />
who produce the goods and services<br />
the world needs to thrive and grow. For<br />
GBD, the global business community<br />
also includes the associations, law<br />
firms, scholars, and citizens who are<br />
involved with the global economy.<br />
It includes the companies that make it<br />
up and the politicians and officials who<br />
40 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
place for global manufacturing<br />
investment, as well as making it harder<br />
to retain our economic engines and<br />
innovation building blocks. For example,<br />
the president of the us semiconductor<br />
industry’s trade association reports<br />
that the most important factors driving<br />
semiconductor production overseas are<br />
not direct labour or materials, but more<br />
favourable tax policies and government<br />
incentives in other countries.<br />
Infrastructure<br />
in the new manufacturing landscape,<br />
a smart and sustainable supply chain<br />
is as central to competitiveness as any<br />
other ingredient of success. However,<br />
that success cannot be achieved<br />
AND ALREADY WORKING FOR YOU<br />
craft and administer the rules, laws and<br />
regulations that guide it.<br />
GBD and Canada.<br />
We don’t take positions. Our job is<br />
to use our events and publications to<br />
highlight issues of importance to our<br />
members and others. Many of those<br />
issues are important to Canada, and a<br />
good deal of GBD’s work has benefitted<br />
from the help of Canadian officials<br />
and our cooperation with Canadian<br />
Manufacturers & Exporters on border<br />
issues, on Buy American initiatives, on<br />
the WTO, and on our new series on raw<br />
materials and trade.<br />
without cutting-edge physical and<br />
virtual infrastructures. investments are<br />
needed to update the national power<br />
grid and expand broadband access.<br />
we must create and fund 21st century<br />
infrastructure to support supply chain<br />
excellence and ensure that affordable<br />
strategic resources are available to<br />
north american manufacturers.<br />
north america is at a point where<br />
unemployment and stagnation are<br />
consuming our economic identity. a<br />
comprehensive transformation of our<br />
manufacturing sector has the potential<br />
to accelerate a robust economic<br />
recovery, accelerate the continent into<br />
a new era of prosperity and continue to<br />
escalate our standard of living.<br />
GBD and You.<br />
If you are involved in global commerce<br />
— whether importer, exporter or<br />
investor; if you do things across borders<br />
— whether the 49 th parallel or the<br />
world’s great oceans, consider joining<br />
the Global Business Dialogue. It’s the<br />
best bargain in trade policy, with a low<br />
basic membership fee, a strong series<br />
of events that are free to members, and<br />
help for you on specific issues when<br />
you need it.<br />
To learn more, call us at <strong>20</strong>2-463-5074,<br />
email us an at comments@gbdinc.org,<br />
or check out GBD’s main website,<br />
www.gbdinc.org.<br />
We want to work with you.
Knowledge at Work<br />
<strong>The</strong> Centre for Workplace skills<br />
identifies and shares effective practices<br />
in workplace training to bring about new<br />
approaches and solutions to critical<br />
workforce skills issues.<br />
We can help your business<br />
at no cost<br />
Access insight on innovative<br />
workplace practices<br />
Connect to workplace learning<br />
professionals through our network<br />
of experts<br />
Take part in business related<br />
workshops and events to improve<br />
learning where you work<br />
Capitalize on the latest research in<br />
the field of skills development<br />
Visit us at workplaceskills.ca to make our knowledge work for you<br />
This project is funded by the Government<br />
of canada’s Sector council Program<br />
CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 41
us Watch<br />
Clearing away the cobwebs:<br />
<strong>The</strong> sun will come out tomorrow<br />
that ageless production of Annie<br />
toured us cities earlier this year.<br />
the play opens in an orphanage,<br />
it is December of 1933 and america<br />
is deep in the midst of the great<br />
Depression. soon 11-year old annie<br />
takes to the stage to sing that tomorrow<br />
will be better than today and that “just<br />
thinkin’ about tomorrow clears away<br />
the cobwebs.”<br />
well, maybe that’s the view from the<br />
stage but hardly the sentiment among<br />
the ticket holders in the balcony.<br />
this is, after all, hurricane season and<br />
the storm clouds brewing in the gulf<br />
coast are sure to quickly make their way<br />
northeast to the nation’s capitol. it’s the<br />
politically turbulent season as well and<br />
the clouds above are filling ominously<br />
with dark and dire predictions from<br />
the pundits. the sandbags are filled<br />
and ready. the white House is in full<br />
damage control mode, stuffing those<br />
bags with any “good” economic news<br />
as quickly as the white House press<br />
machine can churn them out. it’s a race<br />
against the electoral clock.<br />
42 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
business is angry. the taxpayer is<br />
angry. the political parties are angry.<br />
talk about a of discontent.<br />
this summer, ivan seldenberg,<br />
verizon’s chief executive and the<br />
current chairman of the us business<br />
roundtable addressed the venerable<br />
economic club of washington. He<br />
chose this occasion to criticize the<br />
obama administration for its aggressive<br />
legislative and regulatory agenda<br />
that he views as anti-business. in his<br />
remarks, mr. seldenberg reported that<br />
the “one message we heard loud and<br />
clear from our members is that the current<br />
us tax system is a major impediment<br />
to international competitiveness.”<br />
commenting on the absence of us<br />
trade policy agenda, he furthered that<br />
“we need to make sure that the us isn’t<br />
by birgit mattHiesen<br />
a fly-over zone when it comes to international<br />
trade and investment.” and, on<br />
the executive branch’s aggressive rulemaking,<br />
he pointed to the government’s<br />
“reaching into virtually every sector of<br />
economic life” with onerous, and costly,<br />
“one-size-fits-all” regulations.<br />
the Washington Post’s business<br />
columnist, steve pearlstein, later wrote<br />
that mr. seldenberg’s “glaring omission”<br />
was the absence of an acknowledgement<br />
in his speech that the us business<br />
community played any role in the economic<br />
downturn over recent months,<br />
“One message we heard loud and clear<br />
from our members is that the current<br />
US tax system is a major impediment to<br />
international competitiveness.”<br />
concluding his column by saying that<br />
“blaming it all on barack obama – that<br />
took real chutzpah. leadership it was<br />
not.” the Wall Street Journal, on the<br />
other hand, wrote on the same day that<br />
the business roundtable had come
“to this tardy rebellion” after months of<br />
“cheery access” from the oval office<br />
and concluded their coverage by noting<br />
that “now that it thinks about it, the<br />
business roundtable is hard-pressed to<br />
name much the white House has done<br />
for growth…and can join that nonexclusive<br />
club of economic actors – health<br />
insurers, drug companies, medicare<br />
doctors, utilities — that purchased a<br />
share of the obama agenda and are<br />
now feeling buyer’s remorse.”<br />
this stark difference in how big<br />
business is perceived here in the us<br />
is sure to play out as we approach the<br />
november elections, but “main street<br />
america” certainly has their own take.<br />
american families are angry, anxious<br />
and now just plain annoyed.<br />
american-based companies have<br />
yet to resume vigorous job creation<br />
and regional unemployment rates<br />
seem to be climbing. us retailers<br />
remain concerned that earlier upticks in<br />
consumer spending were the result of<br />
temporary federal assistance spending<br />
and not an indicator of a healthier retail<br />
us Watch<br />
This stormy economic environment is<br />
reason number one why President Obama’s<br />
approval ratings are now just slightly higher<br />
than that of the 535 Members of Congress.<br />
sales market. consumers here have<br />
not stopped spending; they are simply<br />
choosing more deliberately. according<br />
to one major retailer, customers<br />
continue to buy the basics, say clothing<br />
detergent, but opt out of the “extras”<br />
such as fabric softener.<br />
meanwhile, americans are growing<br />
so frustrated with their governments –<br />
both nationally and locally – that this is<br />
turning out to be the year that “anybody<br />
else” could win a seat in november over<br />
an incumbent. this stormy economic<br />
environment is reason number one why<br />
president obama’s approval ratings are<br />
now just slightly higher than that of the<br />
535 members of congress, both at all<br />
time lows.<br />
as the Post’s columnist Dana milbank<br />
put it recently, “it would not be accurate<br />
to say that Democrats are worried<br />
about losing control of the House in<br />
november. it would be accurate to<br />
say that Democrats are in a screaming<br />
panic about losing control of the<br />
House in november.” screaming panic?<br />
enough said.<br />
the silly season of politics will end<br />
and the dark clouds of the summer will<br />
dissipate. a more somber season will<br />
follow as will rational public discourse,<br />
thoughtful policy making and sound<br />
economic planning.<br />
could the sun come out tomorrow?<br />
you can bet your bottom dollar.<br />
or, perhaps more accurately in<br />
today’s world, you can hedge it.<br />
Birgit Matthiesen is CME’s special advisor<br />
to the president & CEO on US government<br />
relations. birgit.matthiesen@cme-mec.ca<br />
CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 43
cme Best PractIces<br />
Manitoba best practices in action<br />
guardian employees were<br />
sending emails with ideas about<br />
lean manufacturing,<br />
5s systems and continuous<br />
improvement as soon they returned<br />
from innovation insights’ best practices<br />
mission to manitoba.<br />
“i didn’t even have to go and ask<br />
them,” said conor mccambridge,<br />
operations support manager at the<br />
alberta-based tubular management<br />
firm guardian, a Division of shawcor<br />
ltd. mccambridge, who had been on a<br />
similar mission of firms in ontario said he<br />
knew it would be good for some of his<br />
staff to attend the mission<br />
may 30 – June 1.<br />
“they fired off some emails as soon<br />
as they got back about how impressed<br />
they were with what they saw and kind<br />
of excited about getting something<br />
like that going in our facility. so that<br />
was encouraging.”<br />
the two-day event, delivered through<br />
a partnership between canadian<br />
manufacturers & exporters and the<br />
national research council - industrial<br />
research assistance program, sent<br />
the guardian staff and other canadian<br />
manufacturers on a visit of four<br />
winnipeg, mb-based firms leading<br />
the way in the adoption of lean<br />
manufacturing, continuous improvement<br />
and other manufacturing best practices.<br />
“it was an extremely well-done<br />
mission, very informative,” said<br />
laurie Fraser, support and quality<br />
services manager at agricultural<br />
tool manufacturer seed Hawk inc.<br />
“sometimes you go on visits organized<br />
by other groups that are not well done<br />
and you feel your time would have been<br />
44 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
better spent back in the office, but not in<br />
this case. it was very good.”<br />
Fraser said she and other seed<br />
Hawk staff came back from the visits<br />
of winpak ltd.; westeel, division of<br />
vicwest operating limited partnership;<br />
standardaero and the Duha group with<br />
“brilliant ideas.”<br />
while all four firms operate in<br />
completely different industries from seed<br />
Hawk, Fraser said those firms’ efforts at<br />
streamlining their work inspired several<br />
ideas that seed Hawk could tweak and<br />
adopt in its own business.<br />
but the host firms say the mission was<br />
just as valuable for them as it was for<br />
the participants.<br />
“outside eyes are sometimes your<br />
best resource,” explained rod smith,<br />
operations manager at Duha.<br />
Duha has woven the concepts of<br />
continuous improvement, free-flowing<br />
communications between staff and<br />
management and lean manufacturing<br />
into the fabric of its day-to-day<br />
operations. using a system of daily<br />
huddles for it’s working groups the<br />
company collects and implements<br />
on average 22 improvements to its<br />
operations from employees. but<br />
outsiders can look at things from a<br />
completely fresh perspective.<br />
“Duha routinely hosts tours of its<br />
facility and operates a continuous<br />
improvement training program for its<br />
own employees and those of other<br />
firms,” said smith.<br />
nrc-irap supports small and medium-sized enterprises in canada grow stronger,<br />
grow faster, grow bigger through innovation and technology. smes can contact nrcirap<br />
by calling 1-877-994-4727; they will be put in contact with an advisor.<br />
by sean mcKibbon<br />
“once a 16-year-old high school<br />
student after only two days on the job<br />
said at the daily huddle he should wear<br />
roller blades while working,” recalled<br />
smith. “His co-workers quickly put the<br />
idea in the ‘don’t do’ category over<br />
safety concerns, but Duha keeps ‘don’t<br />
do’ ideas for 30 days and reviews them.”<br />
it turned out there was a reason the teen<br />
put the idea forward.<br />
“From the host’s perspective these visits are an<br />
opportunity to get LEAN disciples to come through<br />
and identify waste that we may not see because we<br />
live here every day.”<br />
“He walked us through his job. He was<br />
walking 400 feet back and forth pulling<br />
these large 18 by 18 inch sheets across<br />
the shop. we looked at the process and<br />
said ‘wow, the process is broken. this<br />
kid is right,’” smith said.<br />
rethinking the task, Duha built new<br />
racks to hold the sheets for a total cost<br />
of $3,000. the student worker’s travel<br />
in the shop was reduced by 98 per cent<br />
and efficiency went up 78 per cent.<br />
“there are always things that these<br />
sort of groups will identify that we<br />
just might not see,” said ed martin,<br />
standardaero’s corporate director of<br />
operation excellence.<br />
“i asked them to be ruthless on<br />
their feedback for us. From the<br />
INNOVATION RES<br />
www.irap-pari.nrc-cnrc.gc.ca
host’s perspective these visits are an<br />
opportunity to get lean disciples to<br />
come through and identify waste that we<br />
may not see because we live here every<br />
day,” explained martin.<br />
standardaero, performs maintenance,<br />
repair and overhaul of aircraft engines<br />
and airframes for a variety of clients<br />
including commercial air carriers and<br />
military clients. its winnipeg facility has<br />
about 1,300 employees and deals with<br />
nine different types of aircraft engines,<br />
each with thousands of parts that need<br />
to be tracked.<br />
standardaero’s adoption of lean<br />
manufacturing principles and taking<br />
a cellular approach to its operations<br />
has meant huge rewards in efficiency.<br />
the firm’s most recent redesign of its<br />
facility in <strong>20</strong>06 resulted in a 60 per cent<br />
reduction in cost of poor quality, a <strong>20</strong> per<br />
cent labour cost reduction and a 40 per<br />
cent reduction in inventory, said martin.<br />
However the process of improving<br />
the efficiency is never over, and<br />
businesspeople should never feel they<br />
have mastered the art of continuous<br />
improvement, he said.<br />
“if you do get to that point of<br />
thinking that way, i think you are in<br />
trouble,” he said.<br />
For westeel, a manufacturer of<br />
grain bins using lean manufacturing<br />
OURCE CENTRE<br />
www.tvp-ii.org<br />
principles to identify bottlenecks<br />
in their production meant massive<br />
improvements in efficiency.<br />
one bottleneck was in a mill that<br />
made two different types of wall sheet<br />
for grain bins. the equipment in question<br />
could only put out between three and<br />
four coils of wall sheet per shift, said<br />
Don ozero, operations manager at<br />
westeel. the problem was it took eight<br />
hours to change dies. by investing in a<br />
single-minute exchange of die system<br />
westeel was able to shrink the change<br />
over time to five-10 minutes.<br />
labour costs were halved, production<br />
more than doubled and westeel was<br />
able to reduce its inventory as it could<br />
more quickly respond to customer<br />
orders, said ozero.<br />
like martin, ozero said lean is a<br />
journey, not a destination.<br />
learning how to apply lean principles<br />
to winpak’s operations took a few years,<br />
noted David bornn, winpak’s manager<br />
of operational excellence.<br />
winpak produces plastic packaging<br />
materials, primarily for the food industry.<br />
it employs 600 people in winnipeg in a<br />
facility of less than 500,000 square feet.<br />
“we’re not an assembly type operation<br />
we’re continuous process so trying to<br />
figure out how it leant itself to our type<br />
of operation took a little while. over<br />
the last three to four years we’ve come<br />
to understand more of what it means<br />
and now we are using it as a problem<br />
solving technique and driving out waste<br />
cme Best PractIces<br />
and improving value for our customers,”<br />
bornn said.<br />
“implementing huddle systems<br />
and soliciting employee suggestions<br />
has engaged employees in problem<br />
solving,” bornn added. “suggestions<br />
have skyrocketed and the company<br />
discovered that an older system of<br />
“You can read books, but it’s only when they really<br />
see it that the penny drops and they say, ‘Oh OK now<br />
I see what it means.”<br />
prizes for the ‘best’ suggestions actually<br />
impeded improvements.”<br />
under the old prize system<br />
employees would hold back ideas if they<br />
thought a co-worker had a better idea<br />
that would beat them to the prize.<br />
“we’d rather see a thousand little<br />
ideas implemented than one or two big<br />
ones,” said bornn.<br />
“it’s really about education,” said<br />
ian marshall, cme manitoba’s lean<br />
champion. “visits like this give people<br />
an opportunity to see what other people<br />
are doing. they are all in different types<br />
of manufacturing, but the common<br />
ingredient is that they have to deliver<br />
a product to a customer and they<br />
have employees.”<br />
the events typically include a series of<br />
visits at different host firms interspersed<br />
with presentations, hands-on plant visit,<br />
feedback and networking.<br />
“you can read books, but it’s only<br />
when they really see it that the penny<br />
drops and they say, ‘oh oK now i see<br />
what it means,’ and then they have<br />
the confidence to go back and drive<br />
the change in their own organization,”<br />
said marshall.<br />
innovation insights is designed to help sme’s achieve business excellence. results are achieved<br />
utilizing the program’s proven format of interactive learning that includes a behind-the-scenes visit.<br />
visit innovation insights’ host companies who are at the forefront of best practice implementation.<br />
CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 45
Preparing companies at home<br />
to compete in the US<br />
it would be difficult, by any economic<br />
yardstick, to underestimate the<br />
importance of the us market to<br />
canada’s manufacturing sector.<br />
yet despite our proximity, the<br />
linguistic and cultural similarities<br />
between our two nations and any<br />
number of political arrangements like<br />
naFta, which are aimed at facilitating<br />
cross-border commerce, canadian<br />
manufacturers are finding it increasingly<br />
difficult to penetrate the american<br />
market, or to retain their foothold south<br />
of the border.<br />
the hurdles include a canadian<br />
dollar which has been trading for<br />
months at or close to par with its<br />
american counterpart, rising energy<br />
and commodity prices and tough<br />
new competitions from low-cost,<br />
manufacturing centres in asia, south<br />
america and elsewhere. only the fittest<br />
will flourish under such conditions and<br />
that is why cme’s smart program has<br />
been timely and beneficial.<br />
the ontario government launched<br />
phase i of the smart program with a<br />
$25-million contribution, announced<br />
canadian manufacturers & exporters<br />
46 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
as the administer the program. it was<br />
open to ontario-based manufacturers<br />
with 10 to 500 employees per plant<br />
and they were eligible for grants of<br />
up to $50,000 for investments that<br />
improved productivity.<br />
“it was called smart for a good<br />
reason – to encourage investments in<br />
greater productivity by manufacturers,”<br />
notes ontario’s minister of economic<br />
Development and trade sandra<br />
pupatello. “smart came about<br />
at a time when we in ontario were<br />
considered by many observers to be<br />
right on the edge of recession. there<br />
were all sorts of pressure on companies,<br />
including ontario companies, to<br />
increase their productivity.”<br />
the private sector response has been<br />
overwhelmingly positive. according<br />
to the most recent data available,<br />
427 ontario manufacturers have<br />
received grants.<br />
by D’arcy JenisH<br />
“as a direct result of this partnership<br />
with the ontario government,” says<br />
cme ontario vice president ian<br />
Howcroft, “many manufacturers are<br />
now equipped with the tools they need<br />
to get smart about the way they do<br />
business, get fit so they can survive in<br />
today’s tough times, and get ready for<br />
growth and innovation.”<br />
“I think people in other economic sectors would be<br />
very surprised if they toured the high-tech facilities of<br />
Ontario’s manufacturers. Advanced manufacturing is<br />
changing, improving. It is not static.”<br />
programs like smart serve a<br />
purpose, says minister pupatello,<br />
because manufacturing has become so<br />
complex and reliant on sophisticated<br />
technology. “people need to realize that<br />
manufacturing has changed a lot,” she<br />
says. “we should really be talking about<br />
advanced manufacturing because<br />
i think people in other economic<br />
sectors would be very surprised if<br />
they toured the high-tech facilities of<br />
ontario’s manufacturers. advanced<br />
manufacturing is changing, improving. it<br />
is not static.”
SMART cutting-edge<br />
innovations<br />
two years ago, southmedic inc.<br />
of barrie, on moved a scalpel<br />
manufacturing line from virginiabased<br />
to its canadian base.<br />
but as research and Development<br />
project manager Julius Hajgato explains,<br />
southmedic first had to redesign<br />
the production process before it could<br />
begin manufacturing the surgical<br />
devices in barrie.<br />
“we knew it was inefficient just by<br />
walking around their plant,” recalls<br />
Hajgato. “we had an idea how to make<br />
it more efficient.”<br />
but it took considerable internal<br />
study and process engineering to<br />
boost output while controlling costs<br />
and maintaining the quality of the<br />
product. improvements of the equipment,<br />
processes and efficiency had to<br />
be addressed.<br />
Fortunately, cme’s smart program<br />
had just been launched and was<br />
backed by $25 million in ontario<br />
government funding. “we were one of<br />
the first recipients of smart money,”<br />
says Hajgato. “they were just starting<br />
when i applied.”<br />
southmedic received the $50,000<br />
maximum available to individual<br />
companies under the program.<br />
the company has been manufacturing<br />
and selling scalpels from their barrie<br />
plant to surgeons located in more than<br />
60 countries.<br />
the product line has also allowed<br />
southmedic to create canadian<br />
jobs and add to its payroll of about<br />
110 employees.<br />
“we’re still in the expansion phase,”<br />
Hajgato adds. “we’re picking up<br />
new customers.”<br />
“In this day and age you need to diversify.<br />
Southmedic is constantly looking at diversifying. We<br />
want to remain in control of our own destiny.”<br />
the company has also applied its<br />
innovative capabilities to coming up<br />
with new and improved blades. its<br />
biggest breakthrough to date has been<br />
the development of a safety guard that<br />
covers the blade of the scalpel when<br />
it is not in use, a leading-edge design<br />
that reduces the number of cuts and<br />
nicks that occur in operating rooms as<br />
the devices are passed from nurses to<br />
surgeons or vice-versa.<br />
the safety guard is a unique development<br />
and the company has<br />
applied for a patent on the product,<br />
which has been designed to fit any<br />
scalpel, including those produced by<br />
other manufacturers.<br />
“we think it is going to revolutionize<br />
the world of surgical instruments,”<br />
he says.<br />
that move and improved production<br />
process of the scalpel line is part of<br />
southmedic’s strategy of remaining<br />
competitive through diversification.<br />
the company was founded in 1983<br />
by lee mcDonald, a critical care nurse<br />
who continues to serve as president<br />
and chief executive officer. southmedic<br />
now has three divisions, one to<br />
design, develop and manufacture<br />
proprietary products such as the<br />
scalpel guard, a second that produces<br />
medical devices under contract for<br />
other companies and a third that<br />
distributes products used by the<br />
medical profession.<br />
“in this day and age you need to<br />
diversify,” says Hajgato. “southmedic<br />
is constantly looking at diversifying.<br />
we want to remain in control of our<br />
own destiny.”<br />
CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 47
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Industry resOurce guIde<br />
50 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
Zurich Financial Services Group is an insurance-based financial services provider headquartered in Zurich, Switzerland.<br />
It employs 60,000 people serving customers in more than 170 countries. In Canada, Zurich is a leading commercial property<br />
insurance provider serving large and mid-size customers, along with groups and associations in niche markets. With<br />
more than 50 years of experience delivering solutions to manufacturing customers, Zurich has the customized<br />
coverages, innovative solutions and risk expertise you need. For more information, visit www.zurichcanada.com<br />
<strong>The</strong> US Tax Group is a provider of services to Canadian-based companies which are in or looking to expand<br />
to the US. We will work with you or your existing tax advisor to structure your US tax affairs and manage your<br />
US filings. Stanley Abraham, our president, is a former “Big Four” partner with more than 25 years of US and<br />
cross-border tax experience. More information can be found at: www.ustaxgroup.ca<br />
As an Aboriginal Human Resource Development Agreement (AHRDA) agreement holder, (CAHRD) Centre for Aboriginal Human<br />
Resource Development Inc. “assists Aboriginal people prepare for, acquire and maintain successful employment.” Annually, CAHRD<br />
places over 1,500 individuals into qualivty education, training and/or permanent employment through successful business/industry<br />
and government partnerships. Over the last 30 years, CAHRD has greatly expanded its direct services but has maintained its focus<br />
– helping Aboriginal people to become employed. More information can be found at: www.cahrd.org<br />
Employers’ Advocacy Council (EAC) formed a strategic alliance with CME to address the increasing challenges<br />
and issues in the areas of workers’ compensation and occupational health and safety. <strong>The</strong> EAC was established<br />
in 1985 as a not-for-profit organization funded by employers for employers. It is recognized as a leading source<br />
of information on workplace safety and insurance and OH&S. Now CME members can tap into EAC’s extensive<br />
education program and Safety Group. Visit www.eacforemployers.org<br />
BDC is a financial institution wholly dedicated to the success of entrepreneurs. We actively support the<br />
development and growth of Canadian small and medium-sized businesses through our complementary<br />
financing, investment and consulting services.<br />
For additional information, visit our website at www.bdc.ca and subscribe to our newsletters,<br />
Profits and eProfits. You can also contact BDC by phone at 1 888 INFO-BDC.<br />
Custom House — Delivering Results in International Markets<br />
Custom House, a Western Union Company, is a foreign exchange and international<br />
payments company with a worldwide network of trading offices and strategic banking relationships. Whether you’re a business wanting to manage<br />
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<strong>The</strong> Innovation Insights program helps Canadian SMEs improve their productivity and competitiveness by showcasing<br />
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is a national program in partnership with CME and NRC-IRAP. Visit www.tvp-ii.org for event listings.<br />
Industry resOurce guIde<br />
<strong>The</strong> Joint Economic Development Initiative (JEDI) is an innovative, award-winning, regional industrial development<br />
agency working to promote healthy industrial development for its municipal members, the City of Wetaskiwin, County of<br />
Wetaskiwin, and Town of Millet. JEDI provides information, facilitates the development process, and supports new and<br />
existing industry by being a one-stop shop for industrial development. To learn more about JEDI call 1-780-361-6231,<br />
visit our website www.jedialberta.com or follow us on twitter at www.twitter.com/JEDIAlberta.<br />
Business Takes Action (BTA) is a Canadian Manufacturers & Exporters initiative aimed at promoting the benefits of<br />
hiring qualified persons with disabilities to meet skill shortages. Funded by the Ministry of Community and Social<br />
Services, through the Employment Innovations Fund, BTA is mandated to ensure that organizations are equipped<br />
with up-to-date information on policy, legislation and tools to achieve excellence in accessibility and accommodation.<br />
For more information on this program please contact business.takesaction@cme-mec.ca<br />
r+d creative produces powerful HD video and multimedia content for web and live event. We take an innovative<br />
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<strong>The</strong> Capital Hill Group is Canada’s largest privately held government relations and public affairs firm. For over<br />
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CANADIAN MANUfACTUrErS & ExPOrTErS’ MAgAzINE | 51
TRADE, INVESTIMENT AND THE PURSUIT OF PROSPERITY<br />
<strong>The</strong> Canadian way:<br />
helping to redefine the <strong>New</strong> America<br />
Building a dome over our national<br />
igloo, legalizing staplers, creating a<br />
five-dollar coin called the Woody and<br />
congratulating Canada on joining<br />
North America.<br />
Those are just a few of the satirical<br />
ploys witty Canadian icon Rick Mercer<br />
engaged many of our neighbours south<br />
of the border during his Talking to<br />
Americans segment of his popular television<br />
show This Hour Has 22 Minutes.<br />
A charismatic <strong>New</strong>foundlander<br />
traipsing across the continental US and<br />
exploiting Americans’ seemingly ubiquitous<br />
ignorance about Canadians had all<br />
the makings of a television hit.<br />
Due to the sheer economic importance<br />
of the relationship to Canada; we have<br />
been forced to understand the unique<br />
characteristics of the world superpower<br />
to our south. In many ways, we have<br />
been the submissive partner in the relationship<br />
and while we understand — or<br />
think we do — the US, it’s not been a<br />
prerequisite for Americans to wear the<br />
proverbial shoe on the other foot.<br />
That’s not to say that we are not alike,<br />
nor that we cannot be friends. It’s simply<br />
that being Canadian means that you inherently<br />
learn about the culture; the geography,<br />
the social aspects and to some<br />
degree, the politics of the US. It’s part of<br />
the Canadian psyche and an element of<br />
being Canadian.<br />
However, the events of 9/11 forever<br />
changed America. <strong>The</strong> tragedy in <strong>New</strong><br />
York City was the first blow to the<br />
American psyche and pride on American<br />
soil in generations.<br />
52 | www.<strong>20</strong><strong>20</strong>MAgAzINE.CA<br />
September 11, <strong>20</strong>01, demonstrated<br />
that America was vulnerable. As the nation<br />
and its people healed; we were there<br />
to help. That’s the Canadian way.<br />
And the onus was on us to better<br />
understand in essence, the <strong>New</strong> America<br />
that was unfolding before our eyes. And<br />
the manner in which the US viewed its<br />
major trading partner took on a new<br />
form. While we will continue to look at<br />
America through an economic lens, the<br />
US focused on Canada through a new,<br />
security lens.<br />
We worked with our neighbour to<br />
ensure that we found some common<br />
ground in terms of security. It was in<br />
both our nations’ best interests.<br />
As the US was still healing from 9/11,<br />
the financial meltdown south of the border<br />
and the subsequent Great Recession<br />
only exacerbated the American fall<br />
from world superpower. Once again,<br />
America demonstrated to the world that<br />
it was vulnerable.<br />
<strong>The</strong> impact that this crisis had on our<br />
home and native land only reinforced to<br />
Canadians that we still share a unique,<br />
extremely intertwined relationship. We<br />
may have survived the first economic<br />
hit better than our friends, but the<br />
effects are still lingering and as we move<br />
forward, trying to escape a double-dip,<br />
by JeFF brownlee<br />
we undoubtedly will be impacted.<br />
As Canadians, the events the past<br />
nine years should reinforce the fact that<br />
while we live in an era of globalization<br />
with new customers and new competition<br />
from every corner of the world;<br />
the Canada-US relationship cannot be<br />
overlooked nor taken for granted.<br />
We need each other.<br />
Our histories have been intertwined,<br />
our economies are interdependent and<br />
our cultures are interconnected. Yes, this<br />
bilateral relationship continues to evolve<br />
and yes, we are now in a defining era of<br />
new Canada-US relations, but we collectively<br />
have to find our way in the new<br />
world order.<br />
<strong>The</strong> onus will be on Canada to try and best<br />
understand the needs of our largest trading partner,<br />
our friend, our neighbour and our customer as well<br />
as offer solutions that will restore her to greatness.<br />
As America continues to define or redefine<br />
herself into the <strong>New</strong> America, she<br />
will need Canada. It is our job to help<br />
and assist her in that endeavour.<br />
<strong>The</strong> onus will be on Canada to try<br />
and best understand the needs of our<br />
largest trading partner, our friend, our<br />
neighbour and our customer as well<br />
as offer solutions that will restore her<br />
to greatness.<br />
We will be there.<br />
As a friend, that’s our duty.<br />
As a neighbour, that’s our helping hand.<br />
As a business partner, that’s in<br />
our best interest.
›<br />
Take advantage of export deals in markets you never thought<br />
possible. We can help.<br />
At Export Development Canada (EDC) our wide range of financial services, in combination<br />
with our partnerships and global reach, means we can provide Canadian businesses like yours<br />
with the tools to export success. With over 8,000 customers exporting to almost <strong>20</strong>0 markets<br />
around the world, we have been helping Canadian companies succeed abroad for over<br />
65 years. If you’d like to learn more about how EDC can help you grow your business in<br />
markets you never thought possible, contact us. ›www.edcinfo.ca or 1-866-857-6033<br />
Realize a World of Opportunity
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