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					 Canada’s industry association magazine
Canada’s industry association magazine
                          March/April 2006
                                                                                                                                                                                                                                                                                                          Canada’s industry association magazine

                                                                                                                                                                                                             MARCh/ApRIL 2006


                                                                                                                                                                                                                                                                                                    15                                                                                32




                                                                                                                                                                                                                                          08                                                                                                                  22
                                                                                                                                                                                                                                                                                     03
                                                                                                                                                                                                                                                                           eDItoR’s note                                        In thIs Issue
                                                                                                                                                                                                                                                                                         06                                     08
                                                                                                                                                                                                                                                                                   CMe news                                     We’ve been branded:
                                                                                                                                                                                                                                                                                                                                Jeff Brownlee looks at how the image of
                                                                                                                                                                                                                                                                  36                                                            manufacturing is out of touch with the current reality.
                                                                                                                                                                                                                                               InsIGht on InnoVAtIon
                                                                                                                                                                                                                                                                                                                                15
                                                                                                                                                                                                                                                                                                                                It’s not business as usual:
Seizing the right global opportunity can help you                                                                                                                                                                                                                  28                                                           Jay Myers outlines his vision for
turn risks into timely rewards.                                                                                                                                                                                                                   the huMAn DIMensIon                                                           improving Canadian competitiveness.

                                                                                                                                                                                                                                                                                      44                                        22
                                                                                                                                                                                                                                                                            In peRspeCtIVe                                      Emerson on the record:
                                                                                                                                                                                                                                                                                                                                new tory trade Minister, David emerson
Are you trying to ensure proper credit and delivery in                                                                                                                                                                                                                                                                          outlines his vision for Canadian trade.
unfamiliar countries? Dealing with new foreign contacts?
Managing risk in places where you are not known?
We’re your North American connection for trade finance
                                                                                                                                                                                                                                                                                                                                27
worldwide. With our ongoing investment in technology
                                                                                                                                                                                                             editor                                              pubLisHer                                                      NSERC: Innovating Through Partnerships:
and expertise, coupled with our commitment to superior
                                                                                                                                                                                                             Derek PuDDicombe | editor@cme-mec.ca                JeFF broWnlee | jeff.brownlee@cme-mec.ca                       Learn how you can partner with the natural sciences
quality and service, we’re well-equipped to serve the                                                                                                                                                        Layout and design                                   How to reaCH us
                                                                                                                                                                                                                                                                                                                                and engineering Research Council, Canada’s largest
needs of importers and exporters who do business in Asia,                                                                                                                                                    mantle & overall | info@mantle-overall.ca           email | magazine@cme-mec.ca                                    science and engineering research granting agency.
Latin America and Europe. If your business is on the fast
track to growth, we can provide the support you need                                                                                                                                                         Letters
                                                                                                                                                                                                             email | editor@cme-mec.ca
                                                                                                                                                                                                                                                                 reporter/pHotograpHer
                                                                                                                                                                                                                                                                 Steve coleman | magazine@cme-mec.ca                            32
to take advantage of global opportunities. For more                                                                                                                                                                                                                                                                             NAFTA:
information, visit http://corporate.bmo.com/tradefinance                                                                                                                                                      advertising/assoCiate pubLisHer                     Fax: 613-563-9218                                              the bridge over troubled waters.
or call your Relationship Manager.                                                                                                                                                                           ronDa lanDygo | ronda.landygo@cme-mec.ca            1500-1 nicholaS St., ottaWa, on k1n 7b7



                                                                                                                                                                                                                                                  Canadian ManufaCturers & exporters is run by business, for your business.
                                                                                                                                                                                                             Canada’s largest trade and industry association, CME promotes the continuous improvement of Canadian manufacturing and exporting through engagement of government at all levels. Its mandate is to promote the com-
® “BMO (M-bar roundel symbol)” and Tradevenue are registered trade-marks of Bank of Montreal, and “Nesbitt Burns” is a registered trade-mark of BMO Nesbitt Burns Corporation Limited, used under license.
™ “Innovative Thinking. Integrated Solutions.” is a trade-mark of BMO Nesbitt Burns Corporation Limited, used under license. Member CIPF.                                                                    petitiveness of Canadian manufacturers and enable the success of Canadian goods and services exporters in markets around the world. Representing Canada’s largest business network and with grassroots representation in
                                                                                                                                                                                                             every part of the nation, CME’s membership is drawn from all sectors of Canada’s manufacturing and exporting community and from every province across the country. The association represents Canada’s leading global
                                                                                                                                                                                                             enterprises and more than 85% of CME’s members are small- and medium-sized enterprises. Together, CME’s membership accounts for an estimated 75% of total manufacturing production and 90% of Canada’s exports.
                                                                                                                                                                                                                                            20/20 magazine is published six times a year, by Canadian Manufacturers & Exporters. | www.cme-mec.ca or www.manufacturingourfuture.ca
                                                                                                        eDItoR’s note




welcome to CMe’s new vision
for Canadian manufacturing
By Derek Puddicombe



A
         s you became aware when you         stand that Canadian manufacturing is         investigate why careers in manufactur-
         picked it up, we have made          steeped in tradition, innovation and has     ing must be seen as attractive oppor-
         some significant changes and        a future that is viewed as internationally   tunities for young people and how we
additions to the magazine beginning          top notch and sought after.                  attract these young people to a career
with its name.                                    But you probably already know that      in manufacturing.
     We wanted a name that is visionary      because you are part of the history. You          Over the first few months, you will
and reflected a sense of what is happen-     are part of what makes this country rec-     see that Canada’s visionary manufac-
ing with where manufacturing is headed       ognized and respected around the globe       turing publication will not only offer
in Canada in the years to come.              as a world-class leader in manufacturing.    interesting stories and insight, but it
     After consulting with several leaders        The magazine will, without doubt,       will act as one of Canadian industry’s
of Canadian industry and discussing          provide an insightful and hard-hitting       biggest promoters.
what they are doing to prepare for the       look at manufacturing. We will tackle             It’s in a sense your magazine and an
future, we thought there could be noth-      issues that are at the forefront of not      opportunity to get your message out.
ing more appropriate than 20/20.             only the minds of Canadian business               As part of some of the exciting
     Simply, we offer a vision for Cana-     leaders, but of those on the front lines.    additions to the magazine, you will
dian manufacturing and the capabilities           So what do we think the future for      see a section dedicated to some of the
it has to offer.                             the country’s manufacturing sector is?       smaller stories that didn’t necessarily
     In many respects, like Canadian         Endless possibilities.                       make headlines.
manufacturing, the magazine will begin            Here in 20/20, we will offer an              It could be as simple as your busi-
to take a long and interesting look at the   in-depth look at how government              ness winning an award, an upcoming
future and what it holds for thousands of    policies at all levels affect the hundreds   industry trade show or an executive
Canadian businesses and its employees.       of thousands of people who take a pay        addition to your company. We want to
     Some businesses we will write           cheque home every month.                     know what is happening with your
                   about you will recog-          In the coming months our staff will     company and we want to tell your story.
                     nize and some you       look deep into what matters to you.               You will also see in the coming
                      may not. But after          Jay Myers, CME’s Senior Vice-           months the President’s Page. It’s a page
                       you make 20/20        President and Chief Economist will           that will be put aside strictly for and
                       a required read-      report on the good, the bad and the ugly     written by the president of one of the
                      ing each and every     in Canadian manufacturing – what is          many successful Canadian manufactur-
                      month, you will        working well for our industry leaders        ing companies.
                        without doubt be-    and what is not.                                  It will be an opportunity to talk
                             gin to under-        We will look at the challenges          about your company, what its vision is
                                             industry is up against with the North        and what the future holds for you.
                                             American Free Trade Agreement                     So as you can gather, we are excited.
                                             almost 12 years after it was introduced      We are as excited about our product as
                                             and how Canadian manufacturers               you are of yours. It’s something we are
                                             can build a more integrated market           passionate about and take very seriously.
                                             framework between us and our friends              As always, CME will continue to
                                             south of the border.                         go the extra distance for its members
                                                  As our country’s industrial base        bringing you results. Welcome aboard
                                             continues to thrive and grow, 20/20 will     and happy reading! 20/20


                                                                                                             www.cme-mec.ca            
       CMe eVents



                                 In the NEXT ISSuE oF 20/20
                 The clock is ticking – the pandemic possibility in Canada



                                                                                                                                                                                                                                                                                                                          CMEACRossCANADA
        CME has developed a business guide to minimize risk that an influenza pandemic poses to                                       It’s just a matter of time.
                                                                                                                                      How apropos that chickens are playing chicken with our future.
    the health and safety of employees, the continuity of business operations, and the bottom line.                                   Experts predict that within the next ten or at the latest 20 years


                                                Career of the future for Canadian youth
                                                                                                                                      business will change forever more.



                                                                                                                                      T
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      CME shows why we must make manufacturing a career-of-choice for today’s young people.
                                                                                                                                                   in verit, quat, venim zzriliquisi bla      am, quam, commodolummy nonulputem ver                     vent lor alit nonsed ero core feugait nim quam
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                                                 Leadership today for a better Canada
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                     CME talks to our nation’s top leaders about their vision of prosperous Canada.
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                                                                                                                                                                                                                                                                                                                          National Office                  British Columbia                   New Brunswick                    CME BOARD
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                                                                                                                                                                                              esed min henis nulluptat aliqui tat. Duipis nos et
                                                                                                                                      borero commolo eriureet lummodion ulpute er in                                                                    autpatum elenibh et, sustrud eum dolut landre
                                                                                                                                                                                              inibh eugiat. Ut ate te dolorer sum volobore dolore
                                                                                                                                      utatetuerit nulput ilis augiam no.                                                                                doleniam, commod et luptat. Ut lum numsandig-
                                                                                                                                                                                              elisit ilis aci tatem zzriure iustrud eugiat. Ut ad
                                                                                                                                                                                                                                                        nit in esse mod ting er sit la feuguer stisis non enit
                                                                                                                                      heniscil eumsan ut erat illam incidui tem irilit ad     dolobor il eugue faci tations ctetummolore com-
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                                                                                                                                                                                                                                                                   Canada’s industry magazine                        17
                                                                                                                                                                                                                                                                                                                          1 Nicholas Street, Suite 1500
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     national events
     For more information contact:
                                                 british Columbia
                                                 For more information contact:
                                                                                    ontario contact:
                                                                                    For more information
                                                                                                                         Québec contact:
                                                                                                                         For more information
                                                                                                                                                                                                                                                                                                                          Perrin Beatty
                                                                                                                                                                                                                                                                                                                          President and CEO
                                                                                                                                                                                                                                                                                                                          pbeatty@cme-mec.ca
                                                                                                                                                                                                                                                                                                                                                           Werner Knittel
                                                                                                                                                                                                                                                                                                                                                           Vice President
                                                                                                                                                                                                                                                                                                                                                           werner.knittel@cme-mec.ca
                                                                                                                                                                                                                                                                                                                                                                                              David Plante
                                                                                                                                                                                                                                                                                                                                                                                              Vice President
                                                                                                                                                                                                                                                                                                                                                                                                                               Larry Barrett
                                                                                                                                                                                                                                                                                                                                                                                                                               Emerson Electric Canada Ltd.
                                                                                                                                                                                                                                                                                                                                                                                                                               (905) 201-4668
     CME at 613-238-8888 ext. 225                CME at 604-713-7800                CME at 800-268-9684 ext. 278 or      CME at 800-363-0226.                                                                                                                                                                                                                                                 david.plante@cme-mec.ca          President
                                                                                    email: marie.morden@cme-mec.ca                                                                                                                                                                                                        Jayson Myers                     Alberta and                                                         9999 Highway #48
     Measure UP for Success                      Lean 101                                                                Série Enjeux:                                                                                                                                                                                    Senior Vice President
                                                                                                                                                                                                                                                                                                                                                           Saskatchewan                       Nova Scotia                      Fax: (905) 201-4679
                                                 Victoria, March 27                                                      Jacques St-Laurent, président                                                                                                                                                                    and Chief Economist
     Kitchener-Waterloo, June 12 - 15            Vancouver, March 28                A Workplace Guide to                 Bell Helicopter Textron, May 10                                                                                                                                                                  jayson.myers@cme-mec.ca          10060 Jasper Avenue, Suite 1931    1869 Upper Water Street,
                                                                                                                                                                                                                                                                                                                                                                                              Collins Bank Bldg., 3rd Floor,
                                                                                                                                                                                                                                                                                                                                                                                                                               Markham, ON L3P 3J3
                                                                                                                                                                                                                                                                                                                                                                                                                               lbarrett@emersonelectric.ca
     www.measureupforsuccess.com                                                                                                                                                                                                                                                                                                                           Edmonton, AB T5J 3R8
                                                 BC Board Meeting                   WSIB Claims Management                                                                                                                                                                                                                Jeff Brownlee                    (780) 426-6622 or 1-800-642-3871   Halifax, NS B3J 1S9

     International                               Vancouver, March 31                and Return to Work:                  Drummond to give economic                                                                                                                                                                        Vice President                   (AB & SK) Fax: (780) 426-1509      (902) 422-4477
                                                                                                                                                                                                                                                                                                                                                                                              Fax: (902) 422-9563
                                                                                                                                                                                                                                                                                                                                                                                                                               VICE-CHAIR
                                                                                                                                                                                                                                                                                                                                                                                                                               David T. Fung
                                                                                                                                                                                                                                                                                                                          Communications
     Development Days 2006                       Vancouver, May 26
                                                                                    Markham, March 29                    forecast at Tendance                                                                                                                                                                             jeff.brownlee@cme-mec.ca         Brian McCready                     Michael MacIntyre
                                                                                                                                                                                                                                                                                                                                                                                                                               ACDEG International Inc.
                                                                                                                                                                                                                                                                                                                                                                                                                               (604) 230-0668
     Winnipeg, May 3
     For more information email:
                                                 Standardized Work Workshop (TBC)   Windsor, April 5
                                                                                    Kingston, April 11                   Manufacturières 2006                                                                                                                                                                             Nancy Coulas
                                                                                                                                                                                                                                                                                                                                                           Vice President
                                                                                                                                                                                                                                                                                                                                                           brian.mccready@cme-mec.ca
                                                                                                                                                                                                                                                                                                                                                                                              Vice President
                                                                                                                                                                                                                                                                                                                                                                                              michael.macintyre@cme-mec.ca
                                                                                                                                                                                                                                                                                                                                                                                                                               Chairman & CEO
                                                 Vancouver, April 19                                                                                                                                                                                                                                                      Director, Environmental Policy                                                                       3784 Southridge Avenue
     deborah.turnbull@cme-mec.ca                                                    Toronto, April 20                                                                                                                                                                                                                                                                                                                          Fax: (604) 922-7650
                                                                                                                         A news editor, a leading industry                                                                                                                                                                nancy.coulas@cme-mec.ca
                                                 Project Management Workshop        North Bay, April 25                  economist and the president of one of                                                                                                                                                                                             Manitoba                           Newfoundland                     West Vancouver, BC V7V 3J1
     Investment in Developing Coun-              Vancouver, May 4                   Ottawa, May 2                                                                                                                                                                                                                         Gordon Cherry                    611 Corydon Avenue, Suite 103                                       dtfung@uniserve.com
     tries – Seize Opportunity for Your                                             London, May 4                        the best helicopter manufacturers in
                                                                                                                         the world will headline the one-day,                                                                                                                                                             Policy Manager                   Winnipeg, MB R3L 0P3               and Labrador
                                                                                                                                                                                                                                                                                                                                                                                              1st Floor, Parsons Building,
                                                 alberta contact:
     Company now. Canadian Manufactur-                                              Thunder Bay, May 10                                                                                                                                                                                                                   gordon.cherry@cme-mec.ca         (204) 949-1454                                                      SECOND VICE-CHAIR
                                                                                                                         action-packed Tendances Manufactur-                                                                                                                                                                                                                                  90 O’Leary Avenue,
     ers & Exporters is pleased to present                                          Oshawa, May 16                                                                                                                                                                                                                                                         Fax: (204) 943-3476                                                 Roy Cook
                                                                                                                         ières 2006 hosted by the Manufacturers                                                                                                                                                                                                                               St. John’s, NF A1B 2C7
     International Development Days 2006,                                           Sarnia, May 18
     May 3 -5 in Winnipeg, Manitoba.
                                                 For more information
                                                 CME at 800-642-3871                St. Catharines, May 25               and Exporters of Quebec (MEQ) May                                                                                                                                                                Corporate Office                 Tony van Rosmalen                  (709) 772-3682                   Monarch Industries
                                                                                                                                                                                                                                                                                                                                                                                                                               (204) 786-7921 ext. 292
                                                                                                                         10, in Montreal. René Vézina editor at                                                                                                                                                           6725 Airport Road, Suite 200                                        Fax: (709) 772-3213
     Come and find out how to successfully                                          Kitchener, May 30                                                                                                                                                                                                                                                      Vice President                                                      Executive Vice President
                                                                                                                         Journal les affaires will highlight ma-                                                                                                                                                          Mississauga, ON L4V 1V2
     expand your business into develop-          Alberta Lean Conference                                                                                                                                                                                                                                                                                   tony.vanrosmalen@cme-mec.ca                                         P.O. Box 429
                                                                                    Lean Toolbox                         jor trends in the Canadian manufactur-                                                                                                                                                           (905) 672-3466 or                                                   Bill Stirling
     ing country markets, what’s new in          Telus Convention Centre                                                                                                                                                                                                                                                                                                                                                       Fax: (204) 889-9120
                                                                                    Markham, March 20                    ing industry from a news perspective                                                                                                                                                             1-800-268-9684                                                      Vice President
     Canada’s international development
     and international trade programs and
                                                 October 2 – 6                      Mississauga, March 21                while Chief Toronto Dominion Bank                                                                                                                                                                Fax: (905) 672-3040              Ontario                            bill.stirling@cme-mec.ca         Winnipeg, MB R3C 3E4
                                                                                    Niagara, April 3                     Economist, Don Drummond will give                                                                                                                                                                                                 6725 Airport Road, Suite 200                                        rcook@monarchindustries.com
     how your organization can participate
     and benefit from the many opportu-
     nities available. Find out first hand       saskatchewan
                                                 For more information contact:
                                                                                    Bruce Power Health & Safety Visit
                                                                                    Tiverton, April 6
                                                                                                                         his economic outlook and discuss the
                                                                                                                         “perfect storm” brewing in Canada’s
                                                                                                                         largest business sector. Jacques St-Lau-
                                                                                                                                                                                                                                                                                                                          Jack Radford
                                                                                                                                                                                                                                                                                                                          General Manager
                                                                                                                                                                                                                                                                                                                          jack.radford@cme-mec.ca
                                                                                                                                                                                                                                                                                                                                                           Mississauga, ON L4V 1V2
                                                                                                                                                                                                                                                                                                                                                           (905) 672-3466
                                                                                                                                                                                                                                                                                                                                                           Fax: (905) 672-1764
                                                                                                                                                                                                                                                                                                                                                                                              Atlantic Lean
                                                                                                                                                                                                                                                                                                                                                                                              1st Floor, Parsons Building,     TREASURER
                                                                                                                                                                                                                                                                                                                                                                                                                               Ronald C. Morrison
     where the opportunities are in your                                                                                                                                                                                                                                                                                                                                                      90 O’Leary Avenue,
                                                 CME at 800-642-3871                Grow Your Business                   rent will cap off the day with a keynote                                                                                                                                                                                                                                                              RC Management
     sector. Hear from successful Canadian                                                                                                                                                                                                                                                                                Deborah Turnbull                                                    St. John’s, NF A1B 2C7
                                                                                    North Bay, April 26                  speech on the successes of his company,                                                                                                                                                                                           Ian Howcroft                                                        (905) 464-5887
     companies and organizations how                                                                                                                                                                                                                                                                                      Vice President, International                                       (709) 772-3682
                                                 Hands-On Introduction              email: aida.viveiros@cme-mec.ca      Bell Helicopter Textron.                                                                                                                                                                                                          Vice President                                                      President
     they got there! Participate in private                                                                                                                                                                                                                                                                               Trade and Development                                               Fax: (709) 772-3213
                                                 to Lean Principles 101                                                                                                                                                                                                                                                                                    ian.howcroft@cme-mec.ca                                             1377 Hazelton Blvd.
     one-on-one meetings with senior                                                                                                                                                                                                                                                                                      deborah.turnbull@cme-mec.ca                                                                          Fax: (905) 335-0523
     representatives from International          Yorkton, April 10
                                                 Estevan, April 11                  Manufacturing 20/20                  For more information e-mail:
                                                                                                                         valerie.marcoux@cme-mec.ca                                                                                                                                                                                                        Russ Donnelly                      Sean McCarthy
                                                                                                                                                                                                                                                                                                                                                                                              Vice President,                  Burlington, ON L7P 4V2
     firms, the Canadian private sector,                                                                                                                                                                                                                                                                                  Mario Danis
     the Canadian International Develop-                                            Smart Sessions:                                                                                                                                                                                                                       Director of Finance
                                                                                                                                                                                                                                                                                                                                                           Director, Membership
                                                                                                                                                                                                                                                                                                                                                           and Marketing                      Best Practices and Lean          rcm161@aol.com
     ment Agency (CIDA), International
     Financial Institution (IFIs), non-CIDA      Manitoba contact:
                                                 For more information
                                                                                    For more information email:
                                                                                    marie.morden@cme-mec.ca              newfoundland &
                                                                                                                                                                                                                                                                                                                          mario.danis@cme-mec.ca           russ.donnelly@cme-mec.ca
                                                                                                                                                                                                                                                                                                                                                                                              Management, Atlantic Region
                                                                                                                                                                                                                                                                                                                                                                                              sean.mccarthy@cme-mec.ca         PRESIDENT
                                                                                                                                                                                                                                                                                                                                                                                                                               Perrin Beatty
                                                                                                                         Labrador contact:
     bilateral donors and other agencies to                                         Supply Chain Management                                                                                                                                                                                                               Stella Tan                       Québec                                                              (613) 238-8888, Ext. 228
     discuss your specific areas of expertise    CME at 204-949-1454
                                                                                    Niagara, March 14                                                                                                                                                                                                                     Manager, Member Services         2000, rue Peel, bureau 210         Employers’                       President and CEO
     and opportunities for you and your
     organization. Attend informative            Supply Chain Connections           London, March 16                     For more information                                                                                                                                                                             stella.tan@cme-mec.ca            Montréal, QC H3A 2W5               Advocacy Council                 Canadian Manufacturers
                                                 Conference, March 14               Burlington, March 23                 CME at 709-772-3682 ext. 3227 or                                                                                                                                                                                                  (514) 866-7774 or 1-800-363-0226   625 Wabanaki Drive, Unit 4       & Exporters
     workshops that will provide you with                                           London, March 29                     email: jackie.field@cme-mec.ca                                                                                                                                                                                                                                       Kitchener, ON N2C 2G3            Fax: (613) 563-9218
     the most up-to-date information on                                             Toronto, May 3                                                                                                                                                                                                                        Innovation Insights              Fax: (514) 866-9447
                                                                                                                                                                                                                                                                                                                                                                                              (519) 748-5771 or                1 Nicholas Street, Suite 1500
     how to win work funded with support         Shop Floor Leadership Workshop -                                                                                                                                                                                                                                         Jon Fenwick
                                                 5 Day Workshop, March 20                                                Setting Our Sails                                                                                                                                                                                                                 Daniel Charron                     1-888-663-4929                   Ottawa, ON K1N 7B7
     from CIDA, the IFIs and other inter-                                           Human Resources Skills/Attraction/                                                                                                                                                                                                    Executive Director               President and General Manager
                                                                                                                         Delta Hotel, March 10                                                                                                                                                                                                                                                Fax: (519) 748-1827              pbeatty@cme-mec.ca
     national agencies.                                                             Development / Retention                                                                                                                                                                                                               jon.fenwick@cme-mec.ca           daniel.charron@meq.ca
                                                 Facilitating Lean Teams            Toronto, March 28                                                                                                                                                                                                                                                                                         Sherri Helmka
                                                 Series Level 2, March 23                                                Manufactured Right Here Expo 2006                                                                                                                                                                                                                                                                     IMMEDIATE PAST CHAIR
     For more information, email:                                                   London, April 26                                                                                                                                                                                                                      20/20 magazine                   Jean-Michel Laurin                 Executive Director
                                                                                                                         St. John’s Curling Club, May 5                                                                                                                                                                                                                                                                        Daniel Gagnier
     idd@cme-mec.ca or                                                              Burlington, May 11                                                                                                                                                                                                                    Ronda Landygo                    Vice President, Research           sherri@eacforemployers.org       Alcan Inc.
     visit www.cme-mec.ca                                                           Border Crossing:                                                                                                                                                                                                                      1-877-880-3392                   and Public Affairs                                                  (514) 848-8118
                                                                                    Expediting Goods to the U.S.                                                                                                                                                                                                          ronda.landygo@cme-mec.ca         jean-michel.laurin@meq.ca          Canadian Trade Index             Senior Vice President
                                                                                                                                                                                                                                                                                                                                                                                              www.ctidirectory.com
       thank you! - online partners                                                 Niagara, April 19                                                                                                                                                                                                                                                      José Jacome                                                         1188 Sherbrooke West
                                                                                    Lean Manufacturing/Six Sigma                                                                                                                                                                                                                                           Vice President, Development                                         Fax: (514) 848-1494
                                                                                    London, May 21                                                                                                                                                                                                                                                         and Communications                                                  Corporate and External Affairs
                                                                                                                                                                                                                                                                                                                                                           jose.jacome@meq.ca                                                  Montreal, QC H3A 3G2
                                                                                    Energy Efficiency                                                                                                                                                                                                                                                                                                                          daniel.gagnier@alcan.com
                                                                                    Niagara, May 24




         Canada’s Industry Association Magazine                                                                                                                                                                                                                                                                                                                                                                                        www.cme-mec.ca          
      CMe news                                                                                                                                                                                                                                               CMe news



    Manitoba inducts 10 into hall of fame                                                                                                      Construction to start on
                                                                                                                                               prince rupert container terminal
    M
                  anitoba manufacturers who       - David G. Friesen, CEO, Friesen’s
                  needed one more reason to         Corporation, Altona


                                                                                                                                               O
                  adopt lean manufacturing        - R.C. (Bob) Hamaberg, CMA, FCMA,                                                                      ne of the biggest hurdles to begin   transportation corridor. Once com-
    techniques may have it – a hall of fame.        CEO, Standard Aero. (retired)                                                                        construction of the Prince Rupert    plete, the container terminal will also
          The Manitoba Division of Canadian       - Richard Kroft, Chairman, Conviron.                                                                   container terminal is over.          create significant employment and
    Manufacturers & Exporters inducted 10         - Clyde R. McBain, P.Eng. (Ret),                                                                  The Canadian government has               business opportunities throughout
    business leaders into the new Manufac-          Chairman, Ancast Industries Ltd.                                                           given the go ahead after it approved the       northern British Columbia, Alberta
    turers Hall of Fame on Feb. 16. Along         - Charles N. Loewen, CEO and                                                                 Environmental Review for the conversion        and western Canada.
    with the individuals given a permanent          Board Chair, Loewen                                                                        of the Fairview Terminal into an ultra-              The new container facility is an
    place in the spotlight, one of the            - Gerry V. Price, Chairman & CEO,                                                            modern high capacity container-han-            integral component of the Pacific Gate-
    province’s top-performing companies             The Price Group of Companies.                                                              dling facility.                                way initiative recently announced by the
    received special recognition.                 - Gary T. Steiman, FCA. Chairman &              Vansco Electronics Ltd. (retired)                 The new terminal is expected to al-       federal government to develop a national    to Chicago, Toronto, and Memphis. The
          Loewen Windows received the               CEO, Gemini Fashions of Canada Ltd.         - Edward Shinewald, CEO & President,           leviate congestion at existing west coast      transportation and trade development        new facility will have an annual capacity
    2006 CME Manitoba Export Award as             - Ed VanHumbeck, Chairman,                      Melet Plastics Inc.                          ports and create significant economic          strategy to capitalize on the growth in     of 500,000 TEU’s and be capable of han-
    Manitoba marked Manufacturing Week                                                                                                         opportunities for Canadian importers           Asia Pacific trade.                         dling the large post-panamax container
    from Feb. 12-18.                                                                                                                           and exporters. The project will also                The new $160 million terminal will     ships of tomorrow. Future plans feature
          “These distinguished individuals and                                                                                                 be a catalyst for economic development         be located on shortest land-sea link to     the expansion of the terminal to reach
    Loewen have made and continue to make
    a significant contribution in their respec-   alberta technology company                                                                   and expansion across the northwest             Asia providing direct and efficient links   an annual capacity of 2 million TEU’s.

    tive sectors and to the economy of our
    province through their vision, innovation,
    leadership, and their commitment to ex-
                                                  xsensor is a provincial hit
                                                  T
    cellence”, stated Roy Cook, Chair of CME’s             he Alberta Chambers of               vanced pressure imaging systems for use
    Manitoba Division and Executive Vice-                  Commerce announced that the          in medical, industrial, and point-of-sale
    President, Monarch Industries Limited.                 Calgary-based pressure imaging       environments.
          One of the main reasons for the new     solutions developer is a finalist for the          Medical-XSENSOR pressure imag-
    hall of fame was to recognize people with     Alberta Business Awards of Distinction        ing systems are used by clinicians and
    outstanding records, both in their own        in the category of Small Business Award       rehab specialists to assess and monitor
    communities and on the world stage. Or-       of Distinction.                               pressure distribution, seating adjust-
    ganizers hope to build on the accomplish-           “Alberta has offered our company        ments, cushioning, patient positioning,
    ments of Manitoba’s more than 2,000           the best opportunities for growth and         orthotics, and pressure bandages; to pre-
    manufacturing companies and interest          development in the high-tech field,” said     vent pressure wounds; and as an interac-
    more people in industrial careers.            Aaron Chronik, the companies COO &            tive visual training and research tool.
          Selection committee members were        CFO. “We have unparalleled access to               Industrial-XSENSOR pressure
    looking for community leaders with a          resources here, including some of the best    imaging systems are used by product
    world presence.                               minds in innovation, making it easier for     designers and test engineers throughout
          Four of the lifetime achievers          us to do business in Alberta and inter-       the product design, testing and process
    named this year were previous excellence      nationally. To be a finalist for this award   control cycle to measure pressure
    award winners. Six of the names added         is icing on the cake – yet another bonus      related issues.
    to the hall of fame start-up list received    that comes with operating a business of            Point-of-sale-XSENSOR pressure
    their excellence award this year at the       any size in Alberta.”                         imaging systems are used by mattress
    Winnipeg Convention Centre on Feb. 16.              As a finalist for the award, XSEN-      and office furniture sales representa-
    The full list includes:                       SOR is also eligible for the prestigious      tives as a sales tool to educate customers,
    - Paul M. Soubry, Chairman &                  Premier’s Award of Distinction.               increase closing rates, raise average ticket
       President Ford New Holland Canada                XSENSOR Technology Corporation          prices, and enhance the overall customer
       Ltd. (retired)                             designs, manufactures, and sells ad-          buying experience.


6        Canada’s Industry Association Magazine                                                                                                                                                                                                              www.cme-mec.ca           
            We’ve been branded as...                      Dirty&Dingy                                                          V S Pristine&Pure                                                                            By Jeff Brownlee



“M
                   anufacturing has an im-     finding one with a bold 20/20 cover page.     Canadian Manufacturers & Exporters          20/20 cross-country consultation on the      an image problem and that perception        ties that are required to deliver products
                   age problem,” Dr. Jayson    “People have an antiquated view of the        for more than 15 years as a senior vice     future of Canadian industry conducted        is the root of many challenges, includ-     that meet customer needs – a system that
                   Myers tells a Canadian      industry, what we call 4-D. Canadians         president. Unfortunately, he says, he       in 2004. The negative perception of the      ing the skills gap.” Canadians just don’t   extends from research and development,
Press journalist during a 20-minute            see manufacturing as dirty, depressing,       spends more time defending the indus-       industry was one of the main challenges      understand the manufacturing industry       design and engineering, to production,
phone interview on a snowy January             declining and dangerous. But that’s a         try; explaining what it is not, instead     highlighted by the 3000-plus participants,   of the 21st century.                        logistics, finance, sales and marketing,
afternoon from the confines of his dimly       blurred vision -- it’s not our 20/20 vision   of focusing on the reality of Canadian      according to Myers.                               Manufacturing is not just about        and after-sales service.
lit office. He rifles through the barrage of   and certainly not the case today.”            manufacturing today.                             “Whether we were in Burnaby or          making things and getting product out             It is a system that extends beyond
reports on the manufacturing industry               Myers would know. He has been                  That reality was reinforced during    Baie Comeau, Canadian manufactur-            the door. Today, manufacturing is a busi-   any single enterprise, across supply
covering his paper-ridden desk before          analyzing trends in the industry with         the industry association’s Manufacturing    ers told us that the industry suffers from   ness system encompassing all the activi-    chains and business networks that are




   4D                                                                                                                                        4P
                                                                                                      Dirty                                                                                                                                    Pristine
                                                                                                      Manufacturing is a dingy, dirty,                                                                                                         Modern manufacturing plant
                                                                                                      unhealthy place to work and                                                                                                              floors are often cleaner than
                                                                                                      it pollutes the environment.                                                                                                             hospital operating room floors.
     perspective                                                                                                                             perspective




                                                   Depressing                                                                                                                            Positive
                                                   Manufacturing jobs are boring,                                                                                                         Manufacturing jobs on average
                                                   unrewarding. and a depressing                                                                                                          are one of the highest paid
                                                   way to make a living.                                                                                                                  jobs in the Canadian economy.




Declining                                                                                             Dangerous                          Progressive                                                                                           Prudent
Manufacturing in Canada is                                                                            Manufacturing is a life            Manufacturing makes up 18%                                                                            Manufacturing provides safe,
on the way out.The technology                                                                         threatening, dangerous and risky   of Canada’s economic activity &                                                                       regulated workplaces that are
used is not very interesting.                                                                         business in which to work.         employs 2.2 million Canadians.                                                                        monitored and measured.
     increasingly global in scope and that         the media concerning plant closures by                                                                                                    point is we have to reach out to people in      adopting an open-door policy at its
     incorporate services as well as produc-       John Deere and Bridgestone Tires. “Yes,                                                                                                   a host of ways.”                                Cambridge, Ontario factory and reaching
     tion activities. Manufacturing is really      the industry has its challenges, but it’s                                                                                                       Finding champions to lead the cause       out into the communities and supporting
     about providing solutions to customers        not all doom and gloom. There are so                                                                                                      and collaboration within the industry are       schools. On average, 15,000 people learn
     and providing the right mix of products       many great success stories out there, but                                                                                                 the two key ingredients in the recipe to        the “Toyota Way” each year as a result of
     and services to ensure customer success.      you never read about the good news.”                                                                                                      demystify the image of manufacturing,           plant tours, and the grandfather of lean
     Recent data dissected by one of Canada’s            The apparent disconnect between                                                                                                     adds West.                                      manufacturing puts special emphasis on
     leading public opinion firms, Decima          fact and fiction, truth and reality, is not                                                                                                     “It’s going to take a united effort       co-op placements from local schools.
     Research, supports Myers’ claims.             a new phenomenon of the industry, but                                                                                                     to get the real image of manufacturing                Dan Gagnier, Alcan’s senior vice
          “There are a lot of trends in terms      its roots are likely embedded in the many                                                                                                 out,” she says. “You have to get people to      president, corporate and external affairs
     of attitudes toward the economy and the       great innovation milestones of the past                                                                                                   realize that everything we use is made          singles out CME’s 20/20 exercise and A
     economy’s future that are affecting the       50 years, during a time when manufac-                                                                                                     or manufactured. Where do you think it          Call to Action as the industry roadmap to
     way that Canadians perceive the manu-         turing was remarkably different.                                                                                                          comes from?”                                    demystify the image.
     facturing sector – which collectively               John Engler, president of the US-                                                                                                         That’s exactly why the University               “We need to change attitudes and
     have positioned it in a place that is not     based National Association of Manufac-                                                                                                    of Ontario Institute of Technology, the         look at how this sector can continue to
     very favourable in terms of attracting        turers and former Governor of Michigan,                                                                                                   only school of its kind in Canada’s largest     be a building block to future prosper-
     workers or investment,” says Jeff Walker,     says that the perception of manufactur-             “While the manufacturing industry       running television show in the 60s, My        province, developed a manufacturing             ity. Industry in Canada is very much in
     Decima senior vice president. “In gen-        ing is not any better south of the border.     has evolved, it appears the image is stuck   Three Sons – the story of a Mid-West          engineering program.                            terms of image tied to how people see the
     eral, people view this sector as being a            “It’s almost like manufacturing          in a time warp,” he says.                    Aeronautical Engineer who watches his               “One of the reasons we went to            criticality of manufacturing to their eco-
     sunset sector of the economy, rather than     became too impersonal. That it implied              “It will be the responsibility of the   family grow up – there was a 1993 movie,      manufacturing engineering is an out-            nomic well being,” he says. “As education
     a sunrise sector. Manufacturing is gener-     assembly lines and mass production             entire industry to change the perception     Falling Down, starring Michael Douglas.       come of one of those negative percep-           tries to catch up with new realities and
     ally not thought of as being synonymous       versus the craft,” stresses Engler.            and spread the message,” says Sherril              That movie really reinforced the        tions that – why do people think of it as       boundaries - where are the new jobs and
     with high technology, even when a lot               A search for manufacturing images        West, president of the Society of Manu-      misguided 4-D perceptions of the indus-       dirty, depressing, dangerous and declin-        the high-end knowledge-based careers as
     of the major manufacturing firms are          on Google reveals photos of gears and          facturing Engineers’, (SME) Education        try, says West.                               ing even now, in this modern age when           a consequence of globalization, shifting
     actually R&D leaders. They tend to con-       smokestacks, assembly lines and heavy          Foundation.                                        “An engineer, he (Michael) wan-         you go into any manufacturing facility          markets and emerging economies?”
     nect the idea of R&D and capital invest-      equipment, many of which are in black               “I would take every one of those        dered the streets of San Francisco, with      in North America or Europe you are                    Robert Hattin, president of Hamil-
     ment with other industries.”                  and white, that reinforce the outdated         4-Ds and push back on them,” says West,      black horn-rimmed glasses and a pocket        going to find pretty advanced technol-          ton-based Edson Packaging Machinery
          The sun has certainly not set on the     view of the industry.                          who recently retired as chief technol-       protector. One of the 4-Ds got him and        ogy,” says Dr. Marc Rosen, UOIT Dean of         Ltd. believes that industry has no other
     industry, which accounts for 18 per cent            “The perception has not kept pace        ogy officer from Caterpillar Inc. after a    he wandered the streets of San Francisco      Engineering and Applied Science. Indus-         choice than to take the lead in defining
     of all economic activity in the nation;       with reality,” adds Beatty. “You won’t         30-year career. “Today’s manufacturing       shooting people.”                             try leaders like Ray Tanguay, president,        manufacturing’s image.
     employs 2.2 million Canadians and             find an industry that relies on innova-        facilities are as clean as hospitals. You          In contrast, the hit television show,   Toyota Manufacturing Canada are ready                 “We’ve allowed the manufacturing
     accounts for two-thirds of all private        tion as much as manufacturing. Change          can point to all of the innovation that      Crime Scene Investigation (CSI) and           for the challenge of demystifying the 21st      image to become denoted as ‘blue collar,
     research and development in the country.      and continuous improvement are vital           is going on even in the most traditional     its many spin-offs are responsible for a      century image of manufacturing. He says         sweat shop, union activist, last resort,
          “The 21st century manufacturing          parts of manufacturing. Innovation             machining industries…                        record-breaking number of students en-        the responsibility to promote the laurels       dead end job’,” he says. “Let us send out
     industry is high-tech, high paying, high-     is in its very nature. It’s the industry’s          Today you’ve got engineers work-        rolling in forensic sciences and criminol-    of manufacturing falls into the realm of        the proper message to the public and those
     ly skilled and high value,” says Myers. “It   survival technique.”                           ing on dry machining process, where          ogy because those careers are portrayed       industry itself.                                who make choices on policy. Let’s change
     is the economic engine of the country.”             Unfortunately, that’s not the public’s   a few gallons of vegetable oil are           as “cool.”                                          “A lot of people are talking very         the image from blue shirt to golf shirt.”
          Manufacturing may be the backbone        perception. “When you dig deeper with          replacing a couple hundred gallons of              SME is trying to spread the same        negatively about the industry and have                However, getting the message out
     of the nation’s economic well being, but      people, what they say is that while this       petroleum oil and the vegetable oil is       message about manufacturing focusing          an image that manufacturing is a dirty          is not easy. “It’s comes down to the law
     it has also been portrayed in a negative      sector provides employment for people          recyclable. That kind of innovation is       on an information and education cam-          place. In reality, that’s not the case. It is   of averages,” says Myers. “If we repeat
     fashion in the mainstream media the           today, a lot of the jobs are perceived as      not depressing, it’s exciting.”              paign that begins with a website -- www.      a very strong industry, and of course, at       it enough times, eventually people will
     past few years, and that has fostered a       dead-end jobs, where people work on                 However, media and Hollywood            manufacturingiscool.com -- aimed at           companies like Toyota, we’ve had record         start to listen and believe it. We just
     misguided perception of the industry.         assembly lines or in similar functions         haven’t helped, she admits.                  promoting the importance of manufac-          years around the world,” says Tanguay.          have to continue to drive the message
          “Every time you pick up a paper,         without a whole lot of brainpower in-               “People are influenced what they        turing to students, teachers and parents.     “A lot of people have a tendency to point       home it is a clean, exciting, safe industry
     you see a story about manufacturing           volved,” says Walker.                          see on TV and in the movies,” West                 “That (the 4-D perception of the        the finger at someone else in terms of          and that it matters to Canada and to
     job losses or factories closing their doors         Myers points to the auto industry as     says. “What was the last movie or TV         industry) is not the image of manu-           what they can do. We have to point the          all Canadians. Without manufacturing,
     and moving production elsewhere or off-       a prime example of innovation. Cars are        show that talked about engineering or        facturing that I see on a regular basis       finger at ourselves and start to think          we wouldn’t have the same standard of
     shore,” says Perrin Beatty, CME president     not the same as they were 50 years ago         manufacturing?”                              and that’s not the one I want to tell our     about what I can do.”                           living that we enjoy today – that’s the
     and CEO, in reference to recent articles in   nor is the production process.                      Not many. Aside from the long           young people about,” says West. “The                In the case of Toyota, that means         reality.” 20/20


10        Canada’s Industry Association Magazine                                                                                                                                                                                                                 www.cme-mec.ca            11
                                                                                                                                                                                                    Ontario Drive & Gear
                                                                                                                                                                             "The flexibility in the system was provided by the countless options
                                                                                                                                                                             that allowed us to tailor it to our specific needs as opposed to having to adapt
                                                                                                                                                                             our processes to the system. When this was not possible and we had to
                                                                                                                                                                             adapt to the program, we found that SYSPRO improved our thinking, our
                                                                                                                                                                             processes, and our assumptions.”
                                                                                                                                                                                                                       Michael Eckardt, VP Finance, Ontario Drive & Gear




                                                                                                                                                                                Founded in 1962, Ontario Drive &            sales of just under $6 million. Today ODG
                                                                                                                                                                             Gear Limited, (ODG), now operates a            operates two plants, has 145 employees,
                                                                                                                                                                             105,000 sq. ft. manufacturing facility in      and in 2004, generated sales in excess
                                                                                                                                                                             New Hamburg, Ontario. ODG produces             of $30 million. “SYSPRO allowed us to
                                                                                                                                                                             two amphibious all-terrain vehicles, the       do what we do best – manufacturing
                                                                                                                                                                             ARGO and the Centaur. Both are world           all-terrain vehicles, cutting gears and
                                                                                                                                                                             leaders in their categories, and are           assembling transmissions. We do not




      start saving
                                                                                                                                                                             designed to meet the demands of the off-       have to worry about the performance of
                                                                                                                                                                             road vehicle market.                           the system – the administration tasks are
                                                                                                                                                                                ODG’s industrial division has built a       minimal and we have never had the
                                                                                                                                                                             solid reputation for the design and man-       need for an IT person to manage the sys-
                                                                                                                                                                             ufacture of quality gears and transmis-        tem,” says Eckardt.
                                                                                                                                                                             sions by targeting OEMs in a variety of           “The flexibility in the system was pro-
      on the brand name products and services you use every day by visiting                                                                                                  industries that require high-quality pre-      vided by the countless options that
                                                                                                                                                                             cision power transmission units, includ-       allowed us to tailor it to our specific
                                                                                                                                                                             ing material handling, forestry, infra-        needs as opposed to having to adapt our



www.cmesavings.venngo.net
                                                                                                                                                                             structure maintenance, and agriculture.        processes to the system. When this was
                                                                                                                                                                             Numerous performance awards from               not possible and we had to adapt to the
                                                                                                                                                                             industrial customers are testimonials to       p r o g ra m , w e f o u n d t h a t S Y S P R O
                                                                                                                                                                             ODG’s commitment to customer satis-            improved our thinking, our processes,
                                                                                                                                                                             faction and quality.                           and our assumptions,” adds Eckardt.
                                                                                                                                                                                In 1991, ODG was using four sepa-              Every two years, ODG introduces a
                          check out our online services, featuring valuable discounts, including:                                                                            rate systems for Inventories, Accounting,      new ARGO model with a wide range of
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                                                                                                                                                                             and it had to be easily understood and         environment requires us to be as flexi-
                                                                                                                                                                             maintained by non-IT staff,” remarks           ble as possible. We have high expecta-
                                                                                                                                                                             Michael Eckardt, VP Finance, Ontario           tions that SYSPRO can meet these chal-
                                                                                                                                                                             Drive & Gear. ODG chose SYSPRO.                lenges,” concludes Eckardt.
                                                                                                                                                                                At that time, ODG operated one facil-          For more information please visit
                                                                                                                                                                             ity, had 40 employees and produced                           www.odg.com.
                                              Business as usual is not an option
                                               where we’ve been and where we’re going
                                                                                                          I
                                                                                                             t’s been a year since Canada’s first            facturing environment in Canada, were
                                                                                                             National Manufacturing Summit                   published in a series of reports last year.
                                                                                                             convened in Ottawa to address the                    All 20/20 reports, as well as the
                                                                       Competitive success starts at      seismic shifts reshaping the business              2005 Management Issues Survey, can
                                                                                                          of manufacturing in this country and               be accessed through CME’s website at
                                                                      home. CME has been working          around the world. And, what a year it’s            www.cme-mec.ca.
                                                                                                          been for manufacturers and exporters
                                                                       hard to assist manufacturers       across Canada! (For many companies                 re-branding Manufacturing
                                                                       and exporters in meeting the       caught between the forces of uncertain             One of the most important messages
                                                                                                          market demand, increasing competition,             of CME’s 20/20 initiative is that the
                                                                         challenges they face and in      and a surging Canadian dollar on one               business of manufacturing is changing
                                                                          building a better business      hand and rapidly escalating costs of do-           rapidly, both within Canada and around
                                                                                                          ing business on the other, 2005 was like           the world. Manufacturers can no longer
                                                                         environment for Canadian         a perfect storm.) Their profit margins             view their business simply in terms of
                                                                        industry. Here is a report of     tell the story. Unfortunately, 2006 isn’t          transforming raw materials into compo-
                                                                                                          shaping up much better.                            nents or finished products.
                                                                         the progress we have made              If there was one message that
                                                                            so far, a glimpse at what     emerged from last year’s manufacturing             the importance
                                                                                                          summit, it was that business as usual is           of Manufacturing
                                                                              lies ahead, and a brief     not an option – not for manufacturers,             Another key message is that manufac-
                                                                           overview of the priorities     nor government, nor the communities and            turing remains a critically important
                                                                                                          businesses across Canada that depend               part of the Canadian economy.
                                                                                that CME has set for      on manufacturing.                                       Every dollar in manufacturing out-
                                                                                     the coming year.                                                        put generates more than three dollars
                                                                                                          building the vision                                in total economic activity. A prosperous
                                                                                                          Last year’s summit capped off the first            manufacturing sector is critical to Cana-
                                                                                           by Jay Myers   phase of Manufacturing 20/20 – the                 da’s economic future and to improving
                                                                                                          most extensive consultation ever under-            the standard of living of all Canadians.
                                                                                                          taken exclusively by the private sector in
                                                                                                          the history of Canadian industry.                  Challenges ahead
                                                                                                               The 98 meetings that CME organized as         Manufacturing 20/20 focused attention
                                                                                                          part of its 20/20 initiative involved over 1,000   on the challenges that lie ahead – an age-
                                                                                                          manufacturers and 2,500 community leaders.         ing workforce, the emergence of indus-
                                                                                                               The results of our 20/20 consultation,        trial powerhouses like China and India,
                                                                                                          together with the recommendations                  heightened competition in international
                                                                                                          proposed by manufacturers and com-                 markets, the appreciation of the Cana-
                                                                                                          munity leaders on how to ensure business           dian dollar, escalating business costs,
                                                                                                          success and build a world-class manu-              skills shortages, increasing constraints on


1   Canada’s Industry Association Magazine                                                                                                                                      www.cme-mec.ca            1
                                                     the stakes are too high and the
     the supply of energy, trade and border          business opportunities too rich for
                                                     anyone to take a back seat on
     problems with the United States, an ero-
     sion in the quality of Canadian infra-
     structure, and mounting competition
     with other countries around the world
     for investments and product mandates.           issues of competitiveness.
           Overall manufacturing production
     stalled out in 2005. Current dollar sales       ate even more difficulties for Canadian      the sector has soared by 12 per cent over
     revenue increased by only 3%, but many          manufacturers and exporters – a marked       the past year alone.
     sectors saw lower sales as well as lower        slowdown in the US economy, likely be-
     prices. The year ended with the Cana-           ginning after the summer and continu-        Critical success factors
     dian dollar above $.85US – marking a
     33 per cent increase over a period of
                                                     ing into 2007.
                                                          All this means further pressures on
                                                                                                  Canada’s manufacturing success will
                                                                                                  depend on the ability of the industry to
                                                                                                                                                           It’s not easy
     36 months. And, profits came under ex-          the bottom line, more restructuring, and     restructure in response to the challenges                being the best.
     treme pressure as business costs soared.        unfortunately more production closures       and opportunities that lie ahead.
           Since 2000, manufacturers’ selling        and job losses. Manufacturing employ-             We identified seven factors critical
     prices have risen on average by only 3          ment fell by 96,300 across Canada in         to the success of Canadian manufacturers
     per cent. But, energy costs have jumped         2005. It could decline by another 60,000     in the course of our 20/20 discussions:
     by 58 per cent, the cost of raw materi-         over the year ahead.                         • Leadership. Business strategies,
     als is up by 28 per cent, transportation                                                       public policies and programs, must be
     costs have increased by 19 per cent, and        Competing to win                               coordinated and aligned to strengthen
     hourly wage rates in manufacturing              Current economic challenges only               Canada’s economic growth potential
     have risen by 17 per cent. All of this puts     highlight the need for Canada’s manu-          in the global markets of the future.
     extreme pressure on profit margins for          facturers to move fast to ensure their       • Workforce capabilities. Canada’s
     manufacturers across Canada.                    short-term survival and long-term              workforce must be prepared and
           It doesn’t look like the situation will   competitiveness. They have to cut costs,       mobilized to meet the future require-
     get a lot better this year either. Energy and   boost productivity, and eliminate waste        ments of manufacturing.
     commodity costs are likely to remain high.      – the goal of Lean enterprise.               • Innovation. Canadian manufacturers          Best Trade Finance Bank
     And, with a booming commodity sector                 The name of the game today is cus-        must be recognized as the benchmark         Best Foreign Exchange Bank
     and red-hot housing market, look out            tomization at the lowest cost, the fastest     of the world for innovation, flexibility,
                                                                                                                                                GLOBAL FINANCE MAGAZINE 2006
     for more interest rate increases and an         service, and the best quality. And, rapid      and continuous improvement.
     even stronger Canadian dollar.                  improvements are being made. In spite        •  International business development.
                                                                                                                                                It takes a lot of hard work and commitment from dedicated professionals to deliver our clients the best in
           No one should be surprised if the         of the bad news – the profit pressures,        Canadian businesses must have the
                                                                                                                                                global transaction banking services.
     dollar hits the $.90US mark during the first    the closures, and the job losses – Cana-       capacity to operate on a global scale.
     half of 2006. The dollar will be buoyed by      dian manufacturers are at record overall     • Business and financial services.            Scotiabank is honoured to be named the Best Trade Finance Bank in Canada by Global Finance Magazine
     one other factor this year that will cre-       production levels and productivity within      The changing financial and servicing        and, for the second year in a row, Scotia Capital is pleased to be named Best Foreign Exchange Bank
                                                                                                    requirements of manufacturing must
                                                                                                                                                in Canada. Our approach to integrated solutions ensures that we can meet the evolving needs of our clients
                                                                                                    be met in a cost effective way.
                                                                                                                                                as they do business across the NAFTA region and beyond. With expertise in global transaction banking
                                                                                                  • Infrastructure. The capacity of
                                                                                                                                                services including cash management, payments, trade finance, foreign exchange and investments, we are
                               Here’s the bottom line:                                              Canada’s transportation, telecommu-
                                                                                                    nications, and energy infrastructure        able to provide credible solutions to their financial and strategic objectives.
                               out of an 8-hour production shift it took                            to meet the future requirements of
                               manufacturers last year an average of 7 hours and                    manufacturing and global business           Our professionals across the Scotiabank Group do not take market leadership for granted. We will
                                                                                                    must again become a driver of business      continue to provide innovative ideas and work relentlessly at building and maintaining our client
                               50 minutes to cover operating, depreciation, and                     investment and economic growth.             relationships to deliver great results.
                               financing costs. they had only six minutes left                    • A competitive business environment.
                               after tax to make additional investments in new                      Canada must become the preferred
                               products, new technologies, or new markets.                          location in North America for busi-
                                                                                                    nesses to locate, invest, manufacture,
                                                                                                    export from, employ, and grow.              www.scotiabank.com                                                                                                        www.scotiacapital.com
                                                                                                                                                ™ Trademark of The Bank of Nova Scotia. The Scotia Capital trademark is used in association with the global corporate and investment
                                                                                                                                                banking and capital markets businesses of The Bank of Nova Scotia and its various subsidiaries in the countries where they operate.

16        Canada’s Industry Association Magazine
                                                                                                                                                                                              priorities for 2006
     taking action –                                                                                                                          Our Quebec division is working directly         We have a long way to go in improving the business
     a progress report                               Manufacturing shipments by sector 2005                                                   with the Quebec government in devel-            environment and the competitive potential for Canada’s
     Well, that was the easy bit. When last                                                                                                   oping a manufacturing strategy for the
     year’s summit ended, the work had re-                                                                                                    province. It has launched a new round
                                                                                                                                                                                              manufacturers and exporters. In 2006, CME will focus its
     ally just begun. Our goal now is to make                                                                                                 of community meetings, this time focus-         efforts across the country on five national priority initiatives:
     change happen – to ensure that action is                                                                                                 ing on workplace skills and mobilization
     taken to meet the needs of manufactur-                                                                                                   issues. And, it is developing its network
     ers and exporters across Canada.                                                                                                         of best practice consortia to provide
                                                                                                                                                                                              1. Campaign for Manufacturing. Our objective is to
                                                                                                                                                                                                  re-brand manufacturing and raise awareness about
           A lot of planning has taken place                                                                                                  direct support for manufacturers work-              the importance of manufacturing across Canada.
     over the past year. But, there has also                                                                                                  ing on productivity and continuous                  We plan to do that through a communications
     been considerable success, working with                                                                                                  improvement initiatives.                            strategy aimed at young people, all levels of gov-
     communities and all levels of government,                                                                                                      Manufacturers in Newfoundland                 ernment, and the public in general.
     in responding to the needs of industry.                                                                                                  and Labrador are now in the second year
     Here are some highlights.                                                                                                                of implementing their business retention        2. Workforce Mobilization. Our objective is to enable
           At the federal level, Industry Canada                                                                                              and expansion initiatives that formed               manufacturers to develop organizational cultures
     has taken the lead in incorporating                                                                                                      the backbone of Manufacturing 20/20 in              and workforce capabilities by making workforce re-
     Manufacturing 20/20 into government                                                                                                      that province. CME has also been active             cruiting & retention, skills development, and mobili-
     policy-making. More than one hundred                                                                                                     in Nova Scotia and New Brunswick,                   zation an essential part of their business development
     officials from a variety of federal depart-                                                                                              working with governments, schools, and              strategies and assisting them in managing change.
     ments and agencies are now actively                                                                                                      local communities in the areas of skills
     involved in an interdepartmental work-                                                                                                   development, innovation, trade promo-           3. National Logistics Strategy. Our objective is to make
     ing group whose job it is to make sure        with our recommendations.                    ment formed a Manufacturing Competi-          tion, energy, and infrastructure.                   Canada the logistics hub of North America, integrating
     that government programs are aligned               Other federal departments have          tiveness Council last year that has already         It will be a daunting year ahead for          logistics systems and infrastructure development across
     to meet the needs of manufacturers as         responded positively to our 20/20 recom-     recommended a number of policy                Canada’s manufacturers and exporters.               the country as well as on a North American basis.
     outlined in our reports. A new Office of      mendations. Human Resources and Skills       changes based on CME’s 20/20 analysis.        But, it will also be a year of opportunities.
     Manufacturing Competitiveness has been        Development Canada launched their            CME is working with the Alberta govern-       A new government in Ottawa will provide         4. Competitive Taxation. Our objective is to create a
                                                                                                                                                                                                  distinct tax advantage for businesses to invest, grow,
     established within Industry Canada. Spe-      Workforce Skills Initiative based on         ment to establish a Virtual Centre of         new opportunities to shape federal
                                                                                                                                                                                                  and manufacture in Canada. We will focus particu-
     cific programs are now in place in that       the findings of CME’s 20/20 report on        Excellence for innovation in materials        policies and programs in support of
                                                                                                                                                                                                  larly on achieving a two year write-off for depreciat-
     department to support competitiveness         Workforce Capabilities. The federal gov-     and manufacturing. With the support of        industrial competitiveness. At the same
                                                                                                                                                                                                  ing manufacturing, processing, and IT equipment.
     in the automotive, aerospace, and steel       ernment also announced its Pacific Gate-     the Manitoba government, CME is lead-         time, the economic and financial challenges
                                                                                                                                                                                                  We will also press governments on other bottom-
     industries and to encourage industrial        way Strategy last fall – again building on   ing the province’s Advanced Manufac-          that lie ahead will focus the attention of
                                                                                                                                                                                                  line tax opportunities including the elimination of
     investments in new “transformative”           20/20 recommendations to expand the          turing Initiative which is designed to as-    manufacturers, governments, and commu-
                                                                                                                                                                                                  capital taxes, expansion of the SR&ED credit sys-
     technologies. Industry Canada also initi-     capacity of western Canadian ports and       sist companies improve their workforce        nities alike on what it takes to succeed in
                                                                                                                                                                                                  tem, and harmonization of sales taxes to eliminate
     ated a review of the federal government’s     infrastructure to capitalize on North        management, continuous improvement,           today’s fast-paced global marketplace, as
                                                                                                                                                                                                  taxes on capital and business inputs.
     telecommunications policy last year – an-     America’s booming trade with Asia.           and innovation capabilities. CME              well as on the need for better communi-
     other recommendation from our Manu-
     facturing 20/20 report that should result
                                                   And, as part of the Security and Pros-
                                                   perity Partnership launched by the gov-
                                                                                                is supporting the development and
                                                                                                growth of Lean consortia across western
                                                                                                                                              cation, co-operation, and collaboration
                                                                                                                                              between industry and all stakeholders.
                                                                                                                                                                                              5. Business Opportunities. Our objective here is to con-
                                                                                                                                                                                                  nect manufacturers and exporters with new busi-
     in major regulatory reforms in 2006.          ernments of Canada, the United States,       Canada, helping manufacturers identify              CME will continue to take the lead            ness opportunities in Canada and in international
           At International Trade Canada,          and Mexico, issues of manufacturing          and share best practice, and allowing         in building a more prosperous Canada – in           markets. To that end, CME will play a leading role
     Manufacturing 20/20 was an important          competitiveness, secure and efficient        them to pool resources, in support of         achieving those stretch goals that we identi-       in restructuring government programs for manu-
     driver behind the federal government’s        borders, and regulatory cooperation are      their continuous improvement efforts.         fied in Manufacturing 20/20. But, it is an          facturing and international business and provide
     new strategy for emerging markets as          front and centre – thanks in large part            In Ontario, CME has partnered           effort in which all manufacturers have              bottom-line intelligence for CME members. We
     well as its CAN-TRADE initiative for          to the influence that Manufacturing          with Economic Development Offices,            to be engaged.                                      will focus particularly on key international markets
     export promotion. Other export agencies       20/20 has had on senior decision-makers      colleges, business and financial services,          The stakes are too high and the               for Canadian exports and investment, as well as op-
     like Export Development Canada and            in Ottawa.                                   and research organizations to build           business opportunities too rich for                 portunities within Canada like those offered by the
     the Canadian Commercial Corporation                Much has been achieved at the           community 20/20 strategies in support         anyone to take a back seat on issues of             oil sands and major infrastructure investments.
     are restructuring their services in line      provincial level as well. The BC govern-     of manufacturers across the province.         competitiveness. 20/20


18        Canada’s Industry Association Magazine                                                                                                                                                                                                            www.cme-mec.ca   19
                                                                                      part 1 of 2 By Sol Kimsa
                                                      Just a short 14 months ago the lives of thousands
                                                                                                                                   300,000 fishermen and 170,000 small                In April 2005, Aileen Caroll, then
                                                      of south east Asian residents changed forever.                               business owners.                             minister of international cooperation,
                                                      A wall of water came ashore in Indonesia and                                      In these numbers one finds the true     announced $1 million for reconstruc-
                                                                                                                                   legacy of the waves.                         tion in Aceh. CME’s PEP project, in con-
                                                      several other neighbouring countries, washing away                                Beyond the initial carnage—which        junction with its partners, has launched
                                                      lives and dreams. But what it didn’t take away was                           was immense—lies the elimination of          120 $1,000 micro-credit loans in the
                                                                                                                                   prosperity for a generation of Suma-         province, using $120,000 provided by
                                                      their future and spirit to rebuild. In Kimsa’s first                         trans. Because of this, three issues are     Manulife Canada.
                                                                                                                                   now the focus of most of the $4 billion            In all, 67 per cent of these loans
                                                      of two articles, she looks at how PEP is partnering                          in international aid pledges: creating       were provided to women. Much like
                                                      itself with several Indonesian groups such as the                            employment, controlling inflation and        Canada, Indonesia sees private sector
                                                                                                                                   rebuilding the financial sector.             SMEs as a driving force in its economic
                                                      Indonesian Women’s Business Association and                                                                               development. Indeed, industry accounts
                                                      others to create employment, control inflation                               rebuilding a region                          for 45 per cent of the country’s gross
                                                                                                                                        It’s a big job. That’s where the Pri-   domestic product (GDP) and employed
                                                      and rebuild and restructure its financial sector.                            vate Enterprise Participation fund (PEP)     16 per cent of its pre-tsunami workforce.
                                                                                                                                   comes in. A Canadian International                 Its industries - which include petro-
                                                                                                                                   Development Agency (CIDA) project            leum and natural gas, textiles, apparel,
                                                                                                                                   delivered by Canadian Manufacturers          footwear, mining, cement, chemical               During a time when most

     L
         ast Boxing day marked the one year       Mordani, the owner of the small sewing    people—25 per cent of the province’s   & Exporters (CME), it’s just one of the      fertilizers, plywood, rubber, food and
         anniversary of the massive tsunami       school, Putri Custum near her town’s      population—lost their source of in-    tools deployed in this region to help        tourism - were experiencing a produc-            were left helpless and in
         that slammed into south-east Asia,       central mosque.                           come. This includes 130,000 farmers,   victims get back on their feet and regain    tion growth rate of 10.5 per cent in
     a catastrophe triggered by a 9.0-mag-             Mordani was lucky. She was pulled                                           their productivity.                          2004. Things changed dramatically after
                                                                                                                                                                                                                                 despair, CME has offered
     nitude earthquake deep in the Indian         out of the rushing waters by Samsu-                                                   PEP works with several Indone-          the tsunami. Inflation has risen from 7          the leadership and renewed
     Ocean, creating waves that devastated        war (many Indonesians use only one                                               sian partners such as the Indonesian         per cent year-over-year to 22.8 per cent
     10 countries rimming the massive body        name), the man who owned a basics                                                Women’s Business Association (IWAPI),        as of August 2005.                               hope to thousands in
     of water.                                    store across the street from Mordani’s                                           the State Ministry of Cooperatives and             Rent has increased by 300 per cent         the region.
          One of the hardest hit regions          school in what was once a bustling mar-                                          Small and Medium Enterprises (SMOC-          and transportation costs are up 30 per
     was Banda Aceh, a province on the            ket. Others weren’t so lucky. Rosniah                                            SME) and Kapet Manado-Bitung, a              cent. Inflation in the region has been
     north end of the Indonesian island of        watched helplessly as her daughter and                                           regional economic development board.         about 10 per cent higher than in Jakarta,
     Sumatra. Waves measuring 24 to 30            two grandsons were swallowed by the                                                   It provides Canadian technical          Indonesia’s capital, which was unaf-          cme-mec.ca. This story was produced with
     metres clobbered the province, taking        rushing waters as everyone ran outside                                           assistance to Indonesian SMEs, but           fected by the disaster.                       the support of the Government of Canada
     nearly 127,000 lives, leaving more than      to escape the earthquake.                                                        also delivers an ancillary micro-credit            Getting this economic mess in           through the Canadian International
     93,000 missing and 441,000 displaced,             Rosniah also owns a sewing school,                                          initiative with PT. Manulife Indonesia, a    order is expected to take about 10 years,     Development Agency (CIDA).
     and destroying $5 billion of property        an orthodox Muslim establishment,                                                subsidiary of Manufacturers Life Insur-      but PEP participants are at least starting
     (according to the CIA World Fact Book,       Usaha Jahit Jilbab Kaos, where orphaned                                          ance Co. of Canada.                          to get their businesses back on track.        The second part of Sol Kimsa’s look at
     November 2005).                              girls produce Jilbabs, the long, loose                                                Helping small entrepreneurs re-                                                       Banda Aceh, its economic redevelopment
          What was a gut-wrenching Christ-        overdress worn by Muslim women.                                                  establish their livelihoods is a pressing    Sol Kimsa is the director for Asia and        and the people Canadian investment
     mas season news story for most of the        Both these women’s livelihoods were                                              concern that many agencies are now           Europe international trade and develop-       is helping will appear in the next issue
     world was a terrifying reality for Putri     erased by the disaster. Indeed, 600,000                                          addressing.                                  ment for CME. E-mail her at sol.kimsa@        of 20/20. 20/20


20       Canada’s Industry Association Magazine                                                                                                                                                                                                  www.cme-mec.ca          21
                                                                                                                                      caucus is more representative of small      ness, and grow business.                    to address the federal-provincial fiscal
                                                                                                                                      businesses in communities outside                 The Conservative platform made        imbalance. In opposition, the Conservatives
                                                                                                                                      Toronto, Montreal, and Vancouver.           only passing mention of manufacturing,      had strongly criticized the Liberals’ handling
                                                                                                                                      The Conservative party is also less         and then only in the context of lowering    of these issues and can be expected to
                                                                                                                                      dependent than the Liberals on corpo-       corporate tax rates over a period of        take a very different approach.
                                                                                                                                      rate funding, and new measures that         seven years. In contrast, a number of tax         During the campaign, CME wanted
                                                                                                                                      Mr. Harper is proposing to eliminate        and spending initiatives were promised      some specifics about issues that are top-
                                                                                                                                      corporate donations to political parties    for primary industries like agriculture,    of-mind for manufacturers and export-
                                                                                                                                      will make the government even less          forestry, fisheries, and mining. With       ers. We asked each of the federal parties
                                                                                                                                      sensitive to specific business interests.   respect to international trade, the Con-    what they would do about reducing




     industryperspective
                                                                                                                                                                                  servative platform promises to explore      corporate income tax rates, providing
                                                                                                                                      policy direction                            the possibility of developing new free      quicker write-offs for investments in
                                                                                                                                      Issues critical to Canada’s manufactur-     trade agreements with trading partners      machinery and equipment, expanding
                                                                                                                                      ing and exporting sectors were largely      in Asia and defending Canada’s primary      international market access in multilat-
                                                                                                                                      absent from the election campaign.          producers against unfounded trade           eral trade negotiations, boosting indus-
                                                                                                                                      None of the parties addressed the lon-      challenges. It also commits to strength-    trial productivity, maintaining balanced

     the nitty gritty on the new tory government                                                                                      ger-term structural challenges that are
                                                                                                                                      reshaping the global economy or what
                                                                                                                                      it takes to sustain the competitiveness
                                                                                                                                                                                  ening border security and supporting
                                                                                                                                                                                  the Pacific Gateway Strategy announced
                                                                                                                                                                                  last fall. However, the platform outlines
                                                                                                                                                                                                                              budgets, and lowering Employment
                                                                                                                                                                                                                              Insurance premiums for business.

                                                                                                                                      of Canadian industry and economic           no comprehensive strategy for interna-      Here are the
                                                                                                                                      prosperity for Canadians. There was         tional business.                            Conservatives’ answers:
                                                                                                                                      no sense of urgency expressed in the              Nevertheless, many of the policy      Do you support implementation with-


     C
             anadians have elected another        a street perspective                      will not be anti-business, but this       campaign. Each of the party’s elec-         commitments made by the Conservatives       out further delay of the tax reductions
             minority Parliament, this time a     on business interests                     government will be the least dependent    tion platforms were highly populist in      during the election campaign will have      for business contained in the February
             Conservative minority govern-        The new government will be focused        on large corporations than any govern-    that they spoke about how to distribute     an impact on Canadian manufacturers         2005 budget and the November 2005
     ment under the leadership of Stephen         on Main Street rather than on Bay         ment we have elected federally in Cana-   taxpayers’ money. There was little said     and exporters. Two key areas to watch for   Economic Statement?
     Harper. What can Canada’s manufac-           Street. A recent analysis by Hillwatch.   da”. Only a few MPs have a background     about how to make money – how to            are improvements in Canada-US rela-         Yes. We are planning to implement all of
     turers and exporters expect?                 com puts it best: “The Conservatives      in running large businesses, and the      boost investment, improve competitive-      tions and how the government proposes       these changes. In addition we are cutting


22       Canada’s Industry Association Magazine                                                                                                                                                                                                    www.cme-mec.ca              2
     the small business rate to 11.6 per cent on    all producers, and ensure that the WTO
     April 1, 2006 and to 11.0 per cent in five     agreement is one that works for Canada.
     years. We are also raising the threshold
     under which the small business rate ap-        What specific measures do you
     plies to $400,000 on April 1, 2006.            propose to boost the productivity
                                                    of Canadian industry?
     Will you work to achieve faster write-offs     We believe that productivity improve-
     for investments in machinery used by           ment is a complex but extremely im-
     Canadian industry so Canadian busi-            portant policy goal. Our immediate


                                                                                                 I
     nesses can improve their productivity?         measures are related to implementing            t’s an understatement to say that        sure our trade success by imports and          global commerce right.                        Minister to ensure that this goal is met.
     We are committed to the accelerated CCA        corporate tax cuts to leave more money          international commerce plays an          exports alone. Today, commercial activ-             Getting global commerce right                 Getting global commerce right also
     announced in the Economic and Fiscal           for corporations to purchase productivity       important role in Canada’s success as    ity revolves around global value chains,       means, first and foremost, rededicat-         means looking beyond the U.S.. While
     Update. Beyond this we are planning no         improving capital equipment. These tax       a nation. It supports our prosperity and    where design, production, distribution,        ing ourselves to our number-one trade         the American market is the largest market
     changes to CCA at the moment.                  cuts are also aimed at small and medium      our unparalleled quality of life.           sales and customer support activities are      relationship — namely, with the U.S..         for Canada — and indeed, for the world
                                                    sized businesses, which are the bedrock of         Over the decades, Canadians have      located where they make the most sense              The stakes are high. Our relation-       — it is not the only one. That’s why our
     Do you agree that Canada must be               Canadian industry.                           proved remarkably adept at turning our      for businesses. Success as an economy          ship with the world’s largest market is too   efforts will also be focused on strength-
     prepared to lower its restrictions on                We are committing significant          abundance of natural resources and our      means becoming — and remaining — a             important, our economies too integrated,      ening our commercial presence in Asia,
     agricultural imports in concert with           resources to help increase the number of     many geographic blessings into jobs,        location of choice for a broad range of        to become complacent about our success.       specifically China, South Korea, India and
     others as part of a comprehensive agree-       apprentices in Canada. We will encour-       prosperity, and economic success.           commercial activities.                              Our competitors are pursuing the         Japan. Through trade and investment
     ment to reduce global trade barriers?          age more young Canadians to enter the              For a nation of more than 30 mil-           Two-way investment flows are             American marketplace more aggres-             negotiations, air services agreements,
     We were disappointed with the govern-          skilled trades through a $1,000 Appren-      lion people, this is no mean feat. But      drawing countries closer together, eras-       sively than ever before. Maintaining our      regulatory harmonization, taxation
     ment’s results in Hong Kong. Agricultural      ticeship Incentive Grant for two years       we’ve done it by developing world-class     ing borders and providing opportuni-           economic success and premier position         agreements, and science and technology
     producers have asked for an environ-           for apprentices in approved programs;        transportation, information and tele-       ties for new and emerging markets to           as a gateway to North American mar-           partnerships, Canada is building — and
     ment conducive to operating a successful       and we will offer an Apprenticeship Job      communications networks, along with a       participate in global commerce.                kets depends on good relations with our       strengthening — the foundations for suc-
     business. This means expanding markets.        Creation Tax Credit of 10 per cent of an     highly educated, skilled workforce that           Businesses — and indeed, nations         largest trading partner.                      cess in these growing markets.
     90 per cent of Canadian agriculture is         apprenticeship’s wages for two years to a    can fill the global demand for every-       — that ignore these realities do so at their        High-profile disputes — like                  Generations of Canadians have
     export-oriented. It is in the best interests   maximum of $2,000 per year, as well as a     thing Canada has to offer.                  peril. Competition in the global market-       softwood lumber — present a distorted         made it their business to boost Canada’s
     of Canadian agriculture to pursue the          Tools Tax Deduction for all trades people          Canada’s manufacturing commu-         place is fierce, and countries are sharp-      picture of what is, in fact, the largest      quality of life and build a brighter
     reduction of international tariffs and         - employed or self-employed - for up to      nity has long been at the forefront of      ening their competitive advantages to          trade relationship in the world. Clearly,     economic future. They’ve done so by
     barriers so that our farmers, who are the      $500 spent on tools. In doing this we will   this success, and continues to be: CME’s    capture the world’s attention and secure       resolving this dispute is high on my          reaching far beyond our borders and
     best in the world, can compete all across      increase output and therefore productivity   Manufacturing 20/20 initiative proves       their positions in the global marketplace.     priority list as Minister of International    “selling Canada” to the four corners of
     the world. At the same time, the govern-       because Canada is facing a labour shortage   that Canada’s manufacturers are com-              Canada needs to do the same. We          Trade, as is working closely with our         the globe.
     ment must allow western Canadian grain         in skilled trades.                           mitted to putting themselves ahead of       need to give Canadian businesses the           American counterparts to develop                   As Canada’s Minister of Interna-
     farmers the right to marketing choice. We                                                   the curve, anticipating the challenges of   support they need to help our country          an effective and secure border — one          tional Trade, I will devote my energy to
     will also defend Canada’s agricultural         Will you oppose any federal budget           tomorrow, and securing Canada’s com-        step up our competitive game, reach            that’s open for business, but closed to       ensuring that Canada continues to be
     sectors, including supply management           that adds to Canada’s national debt?         mercial success in the years to come.       out to the markets of the world, and           terrorists — and modernizing NAFTA            able to compete with the best the world
     sectors, when negotiating international        Yes, we are committed in our fiscal plan           Global commerce is changing at a      build a strong commercial foundation           to bring North American competitive-          has to offer.
     trade agreements. A Conservative govern-       to budget a reduction in the national debt   rapid pace for all sectors of the econo-    for the future.                                ness to a new level and strengthen the             I know that Canada’s manufactur-
     ment will seek better market access for        in each year of $3 billion.                  my. If Canada wants to continue doing             As Canada’s Minister of Interna-         world’s largest free-trade area.              ing community shares this goal. I look
     Canadian agricultural and agri-food                                                         business with the world, businesses and     tional Trade, my job is to help make                In short, I’m committed to ensur-        forward to working with you — and
     products in new and emerging markets.          Will you work for reduced Employment         government alike must adapt to the          Canada a location and supplier of              ing that our economies are free to build      with all sectors of Canada’s economy —
     We will pursue strong, rules-based trade       Insurance premiums for business?             constantly evolving business models         choice for global business activity            on what is widely regarded as one of the      to meet the global commerce challenge
     liberalization at the World Trade Organi-      Yes, we are implementing the reductions in   driving global commerce.                    — and a natural location for foreign           most effective trade relationships in the     head-on and keep Canada competitive
     zation, and take a view that is inclusive of   the EI premium rates for 2006. 20/20               For instance, we can no longer mea-   investment. In short, my job is to get         world. I will work closely with the Prime     for generations to come. 20/20


2        Canada’s Industry Association Magazine                                                                                                                                                                                                              www.cme-mec.ca           2
                                                                                                                                                                                             VOLUME 02




                                                                                                                              Universities and colleges as partners

                                                                                                                                                            New ideas and talent

                                                                                                                                                                               Cost sharing


                                              INTHIS    ISSUE
                                                                   An ABC of NSERC                 NSERC:
                                                                                             A strategic partner in
                                                                   Partnership
                                                                   Programs
                                                                   With Industry




                                                                                                    managing risk
                                                           Good
                                                      Vibrations



                                                                                                                Le texte intégral    Investing in R&D can be highly      Canada. “They help us buy
                                                                   Move                                        des articles qui se   rewarding. But as every business    down the risk, especially for
                                                                   Over Steel                            trouvent à la présente
                                                                                                                                     manager knows, it carries signifi-   longer-term fundamental
                                                                                                          section est disponible
                                                                                                             en français dans le     cant risk and expense.              research that might not
                                                                                                           site Web du CRSNG                                             otherwise make sense from a
                                                                                                             à www.crsng.gc.ca.      To balance the cost, more and       strict business perspective.”
                                                           Water                                                                     more companies are partner-
                                                       Vs. Water                                                                     ing with Canadian universities      Mann’s view is echoed by
                                                                                                                                     and the Natural Sciences and        John Wood, Senior Engineering
                                                                                                                                     Engineering Research Council        Advisor, Research, Development
                                                                                                                                     (NSERC), Canada’s largest sci-      and Technology at General Motors
                                                                   Only Sponges                                                      ence and engineering research       of Canada, NSERC’s largest
                                                                   Need Apply
                                                                                                                                     granting agency. Since 1994, the    corporate partner (see table).
                                                                                                                                     number of businesses involved       Wood says the granting agency’s
                                                                                                                                     in NSERC co-funded research         support allows GM to undertake
                                                                                                                                     projects and training initiatives   more collaborative R&D projects
                                               Top 50 Companies
                                                                                                                                     has more than doubled to some       with universities.
                                                     in Research
                                                    Partnerships                                                                     800 companies.
                                                                                                                                                                         “By doing more projects,
                                                       Programs
                                                                                                                                     “NSERC has been an absolutely       we’re better able to balance
                                                                                                                                     outstanding partner,” says          the risks in much the same way
                                                                                                                                     John Mann, Director of En-          that investors strive to balance
26   Canada’s Industry Association Magazine            Natural Sciences and Engineering   Conseil de recherches en sciences          gineering, DaimlerChrysler          their financial portfolios.”
                                                       Research Council of Canada         naturelles et en génie du Canada
Additionally, he says, NSERC’s                research & experimental devel-                 provide NOVA an unparalleled                 in great demand by our company,                                                             NSERC, along with the company’s         “This project has been much more        a Strategic project can be an inter-
matching cash for in-kind contri-             opment) tax credits, means that                opportunity to assess the students           not just in Canada, but globally.”                                                          endorsement. For successful pro-        successful than we ever thought         esting play for a company willing
butions – including the time                  Canada provides the biggest bang               as potential future employees, says                                                                                                      posals, NSERC matches industry          possible. It gives us a distinct edge   to take a longer-term perspective,
spent by company researchers                  for our buck.” NOVA invests up to              Clark.“It really helps to mitigate           Clark, meanwhile, remains puzzled                                                           cash and in-kind contributions of       over our competitors.”                  and have the government share
working with their university                 $1.5 million annually in targeted re-          the risk of bringing in the right            why more Canadian companies                                                                 equipment and personnel. Client                                                 more of the risk. Although the call
counterparts – is critical to ensur-          search at nine Canadian universities.          people and training them.”                   don’t take advantage of NSERC’s                                                             satisfaction surveys reveal that        Rice says senior management             on industry funding and in-kind
ing genuine R&D collaboration.                                                                                                            risk-sharing support.“I really have                                                         more than 95 per cent of industry       was skeptical about the research        support may be reduced, close
“It’s important that NSERC                    The combined leverage of NSERC                 Mann says that working with                  trouble understanding how they                                                              respondents rate their CRD projects     project before it began, such that      industry participation at all stages
recognizes the value of our in-kind           funding and R&D tax benefits is                 NSERC, the universities and                  can pass up such a good deal.”                                                              as worthwhile and successful.           it would not have materialized          of the project is essential. The pro-
                                                                                                                                                                                           university professors; and support                                                 without NSERC. “NSERC gave
support. This is what distinguishes           even greater for small, Canadian-              students raises his comfort                                                                                                              Moreover, almost 90 per cent of                                                 posals are submitted to NSERC by
                                                                                                                                                                                           for companies hiring new researchers,                                              us the confidence to take a little
                                              controlled private corporations.               level when hiring.
                                                                                                                                          An ABC
collaborative R&D from fee-for-                                                                                                                                                            or sending employees for university        CRD relationships continued after                                               professors in an annual competition
service contract research.”                   For these businesses, the after-                                                                                                                                                        the projects ended – proof positive     higher risk, and that gamble is         cycle with a spring deadline.
                                                                                             “You can never underestimate                                                                  training. Here are some key NSERC
                                                                                                                                          of NSERC
                                              tax cost of sponsoring an NSERC-                                                                                                                                                        of their value.                         paying off handsomely.”
Canada is a terrific haven for                                                                the importance of good decisions                                                              initiatives for manufacturers.
                                              funded university-industry
R&D, according to Paul Clark,                 research project can be as little              when you are hiring people. The
                                                                                                                                          Partnership                                                                                                                                                                 One-of-a-Kind
Vice-President of Research and                as 17 cents on the dollar.                     chance to look at someone and try
                                                                                                                                                                                           Collaborative                              Good                                                                            Manufacturing
Technology at NOVA Chemicals,                                                                them out is always a good thing.”
                                                                                                                                          Programs                                                                                    Vibrations
one of the country’s largest in-              Even more important than the
                                                                                                                                                                                           R&D (CRD)                                                                                                                  Gienow Building Products of
dustrial research performers. The
company also conducts research
                                              financial leverage for NOVA, says
                                              Clark, is the exposure to student
                                                                                             Like NOVA, DaimlerChrysler
                                                                                             Canada is getting access to top              With Industry                                    Project Grants
                                                                                                                                                                                                                                      Cooper-Standard Automotive
                                                                                                                                                                                                                                      of Mitchell, Ontario, designs
                                                                                                                                                                                                                                                                                                                      Calgary is a world-leading manu-
                                                                                                                                                                                                                                                                                                                      facturer of custom windows and
in the United States and Europe,              researchers.“By building relation-             graduates. In fact, the company              Given that business needs are                                                               and manufactures body mounts                                                    doors, with over 500 employees in
and Clark says NOVA regularly                 ships through NSERC and having                 created Canada’s first automotive             often very different, NSERC has                  Because they target market-driven          that optimize cabin comfort                                                     nine Canadian branches. Gienow’s
compares government support for               successful partnerships with the               engineering program through an               designed a variety of support                    research, CRD grants are among             in vehicles. Made from butyl                                                    business involves mass customiza-
university-industry partnerships              universities, we’re getting access             NSERC-funded Industrial Research             mechanisms to serve many                         the most popular forms of assis-           rubber, these mounts sit between                                                tion, producing more than 2,000
in the various advanced econo-                to many of the top graduates.                  Chair at the University of Windsor.          types and sizes of companies in                  tance with industry sponsors. The          the vehicle frame and body,
                                                                                                                                                                                           company works with a professor                                                                                             windows a day, no two identical.
mies. Each time, he says, Canada              That’s a real edge for us.”                                                                 virtually every industry sector.                                                            reducing the noise and vibration
comes out “a clear winner.”                                                                  “That chair was a resounding                                                                  or group of professors to frame                                                                                            “With customers demanding
                                                                                                                                                                                                                                      from acceleration and bumpy
                                              The projects, along with the                   success,” observes Mann. “The                The programs are divided into two                the nature of the problem and the                                                                                          ever-shorter delivery times,
                                                                                                                                                                                                                                      road conditions.
“The leveraging with NSERC,                   granting agency’s industrial                   graduates coming out of that pro-            broad categories: grants for collab-             needs of the project. The profes-
together with SR&ED (scientific                scholarships and fellowships,                  gram are just incredible. They are           orative research projects led by                 sor then submits the proposal to           Until recently, the process for         NSERC                                   our challenge is to design and
                                                                                                                                                                                                                                                                                                                      manufacture one-of-a-kind
                                                                                                                                                                                                                                      determining how rigid the de-
                                                                                                                                                                                                                                      vices needed to be and where they       Strategic                               products with the same speed
                                                                                                                                                                                                                                                                                                                      and quality you would expect
 Top 50 Companies in Research Partnerships Programs                                                                                                                                                                                   should be placed – known
                                                                                                                                                                                                                                      as body mount vehicle tuning –
                                                                                                                                                                                                                                                                              Project Grants                          from mass production,” explains
                                                                                                                                                                                                                                                                                                                      Paul Dean, Vice-President of
 Fiscal Year 2004-05 *Based on cash and in-kind contributions through NSERC’s Research Partnerships Programs in 2004-05                                                                                                               was based on trial and error, ac-       Strategic Project Grants fund
                                                                                                                                                                                                                                                                                                                      Information Systems.
                                                                                                                                                                                                                                      cording to Bernie Rice, Manager         research and training that has
   1    General Motors of Canada Ltd.           11 DaimlerChrysler Canada Inc.                 21 DuPont Canada Inc.                       31 Micralyne Inc.                               41 IBEX Technologies Inc.                  of Product Development. But             the potential to generate jobs          To meet the challenge, Gienow
   2    Hydro-Québec                            12 Inco Limited                                22 Ericsson Canada Inc.                     32 Albian Sands Energy Inc.                     42 Bunge Canada                            thanks to a CRD project with the        and create economic benefits             teamed up with the University of
                                                                                                                                                                                                                                      University of Waterloo, Rice says       for Canadians. One of the areas         Calgary in a Strategic project to
   3    Bell Canada                             13 IBM Canada Ltd.                             23 3M Canada Company                        33 Anglo American Exploration (Canada) Ltd.     43 Bowater Canadian Forest Products Inc.                                           targeted is “competitive manufac-
                                                                                                                                                                                                                                      the company now has a new set                                                   find out if complex algorithms
   4    Syncrude Canada Ltd.                    14 Research in Motion Limited                  24 Tembec Inc.                              34 Xerox Research Centre of Canada              44 AstraZeneca (Canada)                    of modeling and simulation tools        turing and value-added products         and computer programs can
   5    Ontario Power Generation Inc.           15 Bioniche Life Sciences Inc.                 25 Medtronic Inc.                           35 Diavik Diamond Mines Inc.                    45 Loblaw Companies Limited                that deliver reliable answers.          and processes” (and within that         speed up design and optimize
                                                                                                                                                                                                                                                                              area, a set of very specific topics or   resource planning.
   6    MDS SCIEX                               16 Husky Energy Inc.                           26 Domtar Inc.                              36 Millar Western Forest Products Ltd.          46 Bayer Inc.                              The first demonstration of the           research avenues listed on NSERC’s
   7    Nuclear Industry Consortium (UNENE)     17 Schering Canada Inc.                        27 Alberta-Pacific Forest Industries Inc.    37 NOVA Chemicals Corporation                   47 Arise Technologies Corporation          modeling tools allowed company          Web site). Generally speaking, this     Dean says the fact that Gienow’s
   8    Alcan International Limited             18     Merck Frosst Canada & Co.               28     CAMECO Corp.                         38     Abitibi-Consolidated Inc.                48     Wyeth-Ayerst Canada Inc.            designers to reduce vehicle vibra-      program supports activities that are    cash and in-kind contribution
                                                                                                                                                                                                                                      tions at the driver’s seat by more      further removed from the market         amounts to less than a third of the
   9    Manitoba Hydro                          19     Imperial Oil Ltd.                       29 Petroleum Research Atlantic Canada       39     Syngenta Crop Protection (Canada) Inc.   49 PMC-Sierra Inc.
                                                                                                                                                                                                                                      than 50 per cent, simply by altering    than those funded under the             NSERC grant made it an attractive
  10 Nortel Networks                            20 QLT Inc.                                    30 Atomic Energy of Canada Ltd.             40 Ad Opt Technologies Inc.                     50 Boeing Company                          the position of off-the-shelf mounts.   CRD program. For this reason,           proposition to senior management.
“Without NSERC support, it’s
difficult to get access to front-
                                                                                                                      tion containment in Dartmouth,
                                                                                                                      Nova Scotia. In a bid to diversify    Industrial                             the benefits of a specific graduate
                                                                                                                                                                                                   research program. Businesses pro-
                                                                                                                                                                                                                                         “Robert came to us with a tremen-
                                                                                                                                                                                                                                         dous amount of infrared analysis
                                                                                                                                                                                                                                                                                Hatzinikolas says the IPS award is
                                                                                                                                                                                                                                                                                a great deal for his company. After
line research and technology
in manufacturing. Now, we’re
                                                                                                                      its product line, the 10-person
                                                                                                                      company developed the idea of
                                                                                                                                                            Scholarships                           vide a minium of $6,000 per year,
                                                                                                                                                                                                   topped up by an annual award of
                                                                                                                                                                                                                                         expertise,” recalls Thermal-Lube
                                                                                                                                                                                                                                         President David Pinchuk.
                                                                                                                                                                                                                                                                                tax, he estimates the cost to Fero
                                                                                                                                                                                                                                                                                for Cara Dawn’s services is less
in a position to get advanced                                                                                         a portable flood control system
                                                                                                                      involving water-filled, flexible
                                                                                                                                                            & Fellowships                          up to $15,000 from NSERC, for two
                                                                                                                                                                                                                                         “Because of his work, we are now
                                                                                                                                                                                                                                                                                than $4,000 per year.
notification of important                                                                                                                                                                           to three years depending on the
mathematical tools that will                                                                                          bags that would be easier and         NSERC offers three different           student’s educational program. Stu-   re-writing the book on lubricant
help solve our problems and give                                                                                      quicker to deploy than sand bags,     training programs, all of which
                                                                                                                                                            provide companies with affordable
                                                                                                                                                                                                   dents spend at least 20 per cent of   analysis. He’s given us a new edge
                                                                                                                                                                                                                                         in the marketplace because we
                                                                                                                                                                                                                                                                                Only Sponges
us a competitive advantage.”                                                                                          the most common barriers used
                                                                                                                      against floods.                        and low-risk ways to work with
                                                                                                                                                                                                   their time working at the company.
                                                                                                                                                                                                                                         can now back up our claims with        Need Apply
                                                                                                                                                            students or recent graduates.                                                credible analytical data.”             Pleora Technologies, Kanata, Ontario,
Industrial                                                                                                            For the next step, POL-E-MAR
                                                                                                                                                            The most inexpensive option is
                                                                                                                                                                                                   Rejuvenating                                                                 is a 25-person company engaged
                                                                                                                                                                                                   Lubricants
                                                                                                                      enlisted the aid of engineer-
Research                               with a constant cross-section.)         tance in a market that’s governed      ing students from Dalhousie           hiring a student with an Indus-                                              Wall-to-Wall                           in the design and manufacture
                                                                                                                                                                                                                                                                                of Gigabit Ethernet connectivity
                                                                                                                                                                                                                                         Connections
                                       The company’s most promising            by strict design and material          University’s Innovation in Design     trial Undergraduate Student
Chairs (IRCs)                          products are fibre-reinforced
                                       polymer (FRP) rods for concrete
                                                                               property rules.“It’s been a long and
                                                                               expensive R&D process, but we
                                                                                                                      Lab, an initiative led by Dr. Peter
                                                                                                                      Gregson and funded through the
                                                                                                                                                            Research Award. The cost can be
                                                                                                                                                            as little as $1,125 for a four-month
                                                                                                                                                                                                   Montreal’s Thermal-Lube is a
                                                                                                                                                                                                   16-person company that devel-
                                                                                                                                                                                                                                         Fero Corporation of Edmonton
                                                                                                                                                                                                                                                                                solutions for high-performance
                                                                                                                                                                                                                                                                                machine vision, broadcast, video,
NSERC’s Industrial Research            reinforcement.                          are now on the verge of becoming                                                                                    ops and manufactures specialty                                               and surveillance applications.
                                                                                                                      NSERC Chairs in Design Engi-          term. NSERC quadruples the                                                   is a 16-person company that de-
Chairs program was conceived                                                   profitable with our FRP rebars.”                                                                                     lubricants for automobiles and
                                                                                                                      neering program. After examining      company contribution.                                                        signs and manufactures masonry
with one overriding objective          As a non-conductive, corrosion-                                                                                                                             many other types of machines,                                                Pleora hires students through the
                                                                                                                      the idea and identifying potential                                                                                 connectors for the construction
– to assist Canadian universities      proof material that is four times                                                                                    For companies requiring very           along with performance-enhanc-        industry. The Fero Angle Sup-          NSERC Industrial Undergraduate
                                                                               Chairs
                                                                                                                      weaknesses of all types of flood
develop expertise in areas of major    lighter than steel, FRP rods could                                                                                   specialized know-how to solve          ing additives and analytical          port Technology system (FAST™)         Student Research Awards program
                                                                                                                      barriers, the students arrived at
                                       someday displace steel rein-                                                                                                                                monitoring equipment. In                                                     to assess them as future employ-
                                                                               in Design
interest to industry. NSERC cur-                                                                                      a design that was successfully        complex problems over a longer                                               provides a low-cost, rapid method
rently sponsors more than 140 of       forcing bars (commonly called                                                                                        period, an NSERC Industrial R&D        Thermal-Lube’s business, a key        of connecting exterior veneers         ees. One software-engineering
                                                                                                                      demonstrated in field tests.
these long-term research programs.
Many involve multiple companies,
                                       rebars) in concrete structures,
                                       including buildings and bridges.        Engineering                            “Having that resource was
                                                                                                                                                            Fellow may be a logical choice.
                                                                                                                                                            This program subsidizes the hiring
                                                                                                                                                                                                   challenge is to squeeze as much
                                                                                                                                                                                                   life as possible out of lubricants.
                                                                                                                                                                                                                                         and claddings to walls made of
                                                                                                                                                                                                                                         poured concrete, brick or block.
                                                                                                                                                                                                                                                                                student from the University of
                                                                                                                                                                                                                                                                                Ottawa, Jason Scott Whitwill,
each attracted by components of a                                              Design engineering is an enabler       critical to us,” remarks POL-E-       of a recent doctoral graduate as                                                                                    made such a strong impression
                                       In pursuing this vast opportunity,                                             MAR General Manager Dave                                                     For that purpose, Thermal-Lube        To boost its integrity in the mar-     during his four-month stint that
chair’s research program or training                                           of innovation, but in Canada there                                           a company employee for up to           developed a Continuous Oil
                                       Pultrall is one of seven companies                                             McKechnie. “My initial concern                                                                                     ketplace, Fero has supported Cara      Pleora offered him a full-time
that the companies consider stra-                                              is an acute shortage of people with                                          two years. A minimum business
                                       and two government organiza-                                                   was that we would get bogged                                                 Analysis and Treatment System,        Dawn Nash, a master’s student in       job upon graduation.
tegic to their interests. The Chair                                            this skill set. To address this gap,                                         commitment of $10,000 per year
                                       tions that have been collaborating                                             down in engineering detail, but                                              based on Fourier Transform In-        civil engineering at the University
programs are among NSERC’s                                                     NSERC is creating 11 Chairs in                                               brings NSERC funding of up to
                                       for more than a decade with                                                    the students looked at the big                                               fra-Red spectroscopy. The system      of Alberta, through an NSERC In-       “Jason was originally brought
largest and most prestigious                                                   Design Engineering, and a further                                            $30,000 annually. (Last year, the
                                       the Université de Sherbrooke’s                                                 picture, including how to design                                             monitors lubricant degradation        dustrial Postgraduate Scholarship.     in to automate our business
initiatives, with the chairholders                                             five specializing in environmental                                            annual salary averaged $54,000.)
                                       Dr. Brahim Benmokrane, holder                                                  to our manufacturing and                                                     and automatically replenishes         Ms. Nash has been working with         processes, but we quickly realized
senior members of Canada’s                                                     design engineering. Besides devel-
                                       of an IRC in innovative FRP                                                    marketing strategies.                 Finally, the Industrial Post-          depleted performance additives.       a $1.5-million materials testing       that he had the interests and skills
science and engineering research                                               oping new curricula and training
                                       composite materials.                                                                                                 graduate Scholarships program can                                            system to analyze how well Fero’s      to join our product R&D effort as
community, recognized for their ac-                                            programs for university students       “I would recommend this design                                               To demonstrate the value of
                                                                                                                                                            be used to invest in the educational                                         technology can transfer the load of    well,” explains Pleora President
complishments as well as for their     “Brahim has been of great techni-       at all levels, the Chairs engage in    group to any small business. They                                            this new form of treatment, the
                                                                                                                                                            development of a current or poten-                                           cladding systems to interior walls.    George Chamberlain.
ability to network with industry.      cal help to us, particularly in         design and development of mar-         are not only technically proficient,                                          company recruited Dr. Robert
                                       expanding our understanding of          ket-ready products, processes and                                            tial employee, or simply to share      Cocciardi as an NSERC Industrial                                             “The best students are the ones
                                                                                                                      but entrepreneurial as well.”                                                                                      “Cara Dawn is a very dedicated
Move                                   how the FRP rods behave in con-
                                       crete,” remarks Pultrall General
                                                                               technologies, the creation of design
                                                                               partnerships, teams and networks,
                                                                                                                                                                                                   R&D Fellow upon his graduation
                                                                                                                                                                                                   from McGill University.
                                                                                                                                                                                                                                         researcher who has access to fa-
                                                                                                                                                                                                                                         cilities that we could never dream
                                                                                                                                                                                                                                                                                like Jason – people who genuinely
                                                                                                                                                                                                                                                                                want to learn about our business.
Over Steel                             Manager Bernard Drouin. “The            and the promotion of state-of-the-
                                                                                                                                                                                                   Dr. Cocciardi designed a series of
                                                                                                                                                                                                                                         of owning,” says Fero President        They’re like sponges because
                                       independence of his research            art practices and processes.                                                                                                                              Dr. Mike Hatzinikolas.                 they absorb as much as you can
Pultrall, Thetford Mines, Québec,                                                                                                                                                                  complex comparative tests that val-
                                       gives us credibility with civil engi-                                                                                                                                                                                                    give them and then use it all to
is a small manufacturer of poly-                                                                                                                                                                   idated the superiority of this sys-   “Her independent evaluation of our
mer products using pultrusion          neering regulators that we could
                                       never have achieved on our own.”        Water                                                                                                               tem over traditional wet chemistry    technology is extremely important
                                                                                                                                                                                                                                                                                make a meaningful contribution
                                                                                                                                                                                                                                                                                to the company.”
techniques. (These are automated,
continuous processes for manu-         Drouin says Dr. Benmokrane’s
                                                                               vs Water                                                                                                            and chromatographic methods
                                                                                                                                                                                                   for lubricant analysis. He was
                                                                                                                                                                                                                                         to our market credibility. I’m rely-
                                                                                                                                                                                                                                         ing on her research as the basis for
facturing composite rods, tubes                                                POL-E-MAR manufactures
                                       work has elevated Pultrall’s FRP        industrial-strength plastic                                                                                         hired permanently by Thermal-         technical information that I can
and other structural components        products to commercial accep-                                                                                                                               Lube after the fellowship ended.      provide to my customers.”
                                                                               fabrics and products for pollu-
                                      The bridge over troubled waters
                                                                                                       By Steve Coleman




                                                                                                                                         Keeping pace
                                                                                            Great Lakes turned out to be a fitting       Canada’s manufacturing industry is
                                                 Agreement was born. So what has hap-       location for Canadian Manufacturers &        going through the same kind of change        turing economy, rather than just manu-
                                                 pened in the 12 years since the agree-     Exporters President/CEO Perrin Beatty        that ushered in both the Industrial          facturing,” says John Engler, President of
                                                 ment came into effect?                     to offer a warning to the manufactur-        Revolution and the Information Age.          the National Association of Manufactur-


     B
            ack in 1989, nay sayers predicted         The trade treaty has produced         ing industry that things have changed.       This time, the battles aren’t just between   ers in the U.S. “Manufacturing is just            By comparison, the Canadian econ-
            Prime Minister Brian Mulroney        significant economic growth in Canada,     Whether or not manufacturers are ready,      cross-town rivals and companies with         the description of making the product        omy has grown 3.6 per cent annually
            had signed away Canada’s future      Mexico and the U.S., but not without       the revolution has already arrived.          plants at opposite ends of the country.      or good. The manufacturing economy is        because of free trade. The open borders
     with the Canada-U.S. Free Trade Agree-      hiccups. The Americans still won’t admit        “The scope and pace of change will      They’ve escalated to the global stage.       how you design it, distribute it, handle     have produced other spinoffs.
     ment. Those on the flip side of the coin    that all of the NAFTA rulings against      only become more intense over the next            On both sides of the Canada-U.S.        the supply chain, the complicated logis-          Trade officials say Canada and the
     said unprecedented prosperity – and         them mean they’ve got the 27 per cent      five-10 years as the business of manu-       border, innovation has replaced volume       tics, the technology platform.”              U.S. have one distinct advantage over
     profits – were coming to Canada.            duty on Canadian softwood lumber           facturing evolves rapidly in response to     as the key to growth. Industry looks at            For Canada, approximately 41 per       emerging markets like China and India.
           The same old arguments – both for     wrong. A dozen years after Mexico          the development of new technologies          business on a global scale and business      cent of our two-way trade stems from         Bilateral trade between Canadians and
     and against – were trotted out before       joined the three-way trade agreement,      and new competitive pressures,” Beatty       has had to start considering things in       the Great Lakes region – that’s $182.3       Americans gives both countries an edge
     Mexico joined to create the world’s larg-   environmentalists still worry the flood-   told the Great Lakes Manufacturing           terms of global supply chains. Competition   billion US, or $500 million each day.        on the competition – when it works.
     est free-trade zone on Jan. 1, 1994. Five   gates will open to a whole new industry    Forum on March 4, 2005. “...It is a game     has grown to include more than just the      In American states like New Jersey, the      There are 30,236,000 border crossings
     years to the day after the tariffs disap-   re-routing Great Lakes water south.        of survival of the fittest with a competi-   usual rivalries between companies located    number of exports crossing the border        between Great Lakes States and Ontario
     peared between goods destined for the            With NAFTA fresh into its tween       tive environment challenging us to be        in different parts of the same country.      north has increased 50.2 per cent since      each year. Daily, trucks travel back and
     U.S., the North American Free Trade         years, Detroit and its location on the     stronger, faster and smarter.”                    “I like to talk about the manufac-      NAFTA came into effect.                      forth across the border 83,000 times.


32             s
         Canada’ Industry Association Magazine                                                                                                                                                                                                        www.cme-mec.ca          33
                                                                                                                                                                                                   safeguarding your business
                                                                                                                                                                                                   against Cheap imports
                                                                                                                                                                                                   Martin G. Masse and Yasir A. Naqvi
            Truckers still deliver almost two-        Toronto. It’s also a place where the agree-    in particular, offer “significant opportu-     Condoleezza Rice said in a recent CBS


                                                                                                                                                                                                   I
     thirds (63 per cent) of Canada-U.S. trade.       ment has had mixed blessings.                  nities.” The same fight for global supply      Radio News interview. “Any trade rela-             f you ask Canadian manufacturers what             The two permitted safeguard-type
     The big rigs funnel two-thirds of those               Trade and foreign investment have         chains includes Chinese companies for          tionship as big as our relationship with           is hurting their bottom line, a com-        processes are market disruption inquiry
     goods across three border-crossing points        boomed in Mexico under NAFTA. Foreign          35 per cent of Canadian businesses that        Canada is going to have those disputes.            mon answer is competition from cheap        and a trade diversion action. The market
     – the Peace Bridge (Fort Erie), the Blue-        direct investment has increased four times,    answered the survey.                           But as I said when I was there in Ottawa,      imports.                                        disruption inquiry is where there has been
     water Bridge (Sarnia) and the Ambassa-           while foreign trade increased threefold.            Fifteen per cent of manufacturers         I would hope that the rhetoric and the                Manufacturers can (and often do) turn    such a rapid increase in imports originat-
     dor Bridge (Windsor).                                 Most of that growth, however, has         say that they are currently selling into the   tone of U.S.-Canada relations would be         to anti-dumping and countervailing actions      ing from China to be an important cause
            And as a part of their job, drivers       been in the north of the country and GDP       Chinese market. Another 19 per cent see        befitting good friends and good neigh-         if the cheap imports are being dumped or        of material injury. In a trade diversion in-
     deal, in one form or another, with               numbers tell the tale. The north of the        the potential.                                 bours, and I look forward to that tone in      subsidized. Proving that imported prod-         quiry, the domestic industry need not even
     44 government agencies on both sides             country has seen a 50 per cent increase in          While China tries to gallop back          U.S.-Canada relations.”                        ucts are being dumped or subsidized is not      demonstrate increased imports or injury;
     of the border.                                   Gross Domestic Product, while Mexico’s         into the traditional role it has held as            First, Canadians will have to im-         always possible, especially where the low       it must instead demonstrate the likelihood
            As the waits increase to get across the   central area has sprouted 27 per cent since    one of the world’s top economies, there        prove their standard of living. Per capita     cost advantage is gained by low labour costs    of a significant diversion of trade into the
     international boundary, both CME and             NAFTA. In the southern regions closest to      are things NAFTA manufacturers can do          incomes in Canada are now 22 per cent          or lax environmental laws. In such cases,       Canadian market.
     U.S.-based National Association of Manu-         Central America, GDP has only risen 18         to keep the position they’ve held for a        lower north of the international border        Canadian safeguard actions can provide                Another important step in determin-
     facturers say the Canadian and American          per cent, Aspe said.                           century or more.                               than they are south of it.                     temporary relief against an increasing tide     ing whether a safeguard action should
     governments need to do more to make                   Since 1994, Canada’s trade in goods                                                           Among the problems Canadians              of imports.                                     be brought is an assessment of whether a
     sure protectionism doesn’t “creep back           with Mexico and the U.S. has nearly            what next?                                     face, with or without NAFTA, are in-                  So what exactly are safeguard ac-        political case for sanctions can be made. The
     into the North American trading system.”         doubled. In 2004, it reached $573.4 billion.   “I’d like to see it branch out,” Engler says   tensifying competition in international        tions? Safeguard is the trade weapon that       CITT does not grant a remedy, but rather
            Bureaucracy’s tendency to grow until           Mexico is now Canada’s fifth largest      of NAFTA. “I’d like to bring the EU in...      markets, a tightening energy supply,           Canadian producers often overlook when          issues a recommendation to the Minister of
     it fills a void have created more complex        export destination. The country is now              “If we can look at parts of NAFTA’s       deteriorating infrastructure and an age-       their industry is being hurt by increased       Finance. It is the Minister of Finance who
     customs rules. Depending on the border           Canada’s third-best source of imports.         figure and improve it, by all means, let’s     ing workforce.                                 imports. Safeguard actions can be brought       ultimately decides whether to impose quotas,
     crossing, they’re enforced differently, too.     Dollars and pesos flow in both direc-          put it on the agenda. If we can look at             In addition to finding new markets        when there is such an increased quantity of     tariffs or other duties on imports. Therefore
            Exporters are also staring at grow-       tions. Trade between Mexico and Canada         NAFTA and say it’s a model for doing           for Canadian goods, Canadian manufac-          imported goods that cause, or threaten to       when considering a safeguard action, it is
     ing piles of paperwork, while several            reached $16.4 billion in merchandise in        something else, then I suggest we look at      turers also have to start introducing new      cause, serious injury to the domestic pro-      important to have a sense of whether the
     key border crossings have limited or no          2004.                                          places like the European Union and say         business strategies and decide, now, what      ducers of any like or directly competitive      government will be politically motivated to
     access to dedicated lanes for commercial                                                        why not a free trade agreement there?”         type of worker they’ll need in the future.     goods. Actions are permitted by interna-        adopt the CITT’s recommendations.
     vehicles and drivers registered in the           the China factor                                    Cleaning up the border disputes                In addition to finding the workforce,     tional trade treaties in order to allow manu-         In the past, safeguard remedies have
     FAST program.                                    Then there’s China. Figures compiled for       between Canada and our neighbours to           industry will also have to keep their skills   facturers to obtain a measure of temporary      been underutilized. Recent evidence of
            All of that government involvement        the CME’s 20/20 state-of-the-industry          the south may be one of the first items on     up to date. Increasing productivity also       relief against increased imports.               revived safeguard activity in Canada
     has a definite impact on the way business        report say 22 per cent of companies have       new Conservative Prime Minister Stephen        includes adopting best practices like lean            How do you know if safeguard ac-         indicates that Canadian manufacturers are
     does business.                                   customers who are relocating production        Harper’s agenda. In a radio interview fol-     manufacturing.                                 tions apply to your situation? In order to      waking up to their potential benefits. In
            “We see the North American Free           facilities to China. They’re also forcing      lowing the election, Harper said he didn’t          Keeping up with the Joneses will also     determine whether your business should          fact, two Canadian manufacturing sectors
     Trade Agreement as vital for strengthening       them to relocate to maintain current sup-      want to link the softwood lumber dispute       mean spending more on market-driven            consider seeking a safeguard remedy, the        – bicycles and barbecues – have recently
     the trilateral trade, business and invest-       ply contracts.                                 to other outstanding issues or energy          innovation, product design, engineering        first question is to ask whether you meet the   received positive recommendations from
     ment relationship,” Beatty and Engler                  Unfair trade practices by Chinese        exports, but didn’t eliminate it completely.   and improved automation.                       test for safeguard relief                       the CITT and are currently awaiting the
     said in a March letter to Prime Minister         companies are another concern for 26 per            “I believe strongly in NAFTA...but             During the latest federal election               A global safeguard complaint made to     government decision on implementation.
     Paul Martin and U.S. President George W.         cent of Canadian companies. They cite          the Americans are questioning the utility      campaign, Harper’s Conservatives against       the Canadian International Trade Tribunal       While a safeguard action might not apply
     Bush. “Whatever the critics may claim, the       dumping and government subsidies as            of NAFTA, or their adherence to it, that is    “unfounded international trade chal-           (CITT) must be supported by domestic            to every situation, it is certainly a remedy
     NAFTA has proven to be a solid success. It       major problems. Lower health, safety, em-      inevitably bound to influence future deci-     lenges”. The Conservatives also promised       producers that represent a major propor-        that should be considered when increased
     has stimulated both trade and investment         ployment and environmental standards           sions that Canadian governments have to        voters they’d consider creating special        tion of production of the goods in Canada.      imports are causing harm to your manufac-
     in North America, resulting in greater           are also tilting the international market in   make,” Harper said during an interview         envoy positions to deal with free trade        The test in global safeguard cases is whether   turing business.
     employment and higher incomes for the            China’s favour.                                with CKNW radio.                               and – specifically – softwood lumber.          there has been an increase in imports suf-
     North American community.”                             Eighteen per cent of Canadian man-            For their part, the Americans say              The Conservative Party’s blue book        ficient to be the principal cause of serious    Mr. Masse and Mr. Naqvi are members of the
            Free trade’s impact has been more         ufacturers say they’re either concerned        they’re willing to negotiate but aren’t        also said the government would take a          injury to the domestic producers. The fac-      International Trade Practice Group at Lang
     noticeable to the Mexican economy, said          or have been victimized by Chinese             about to cry uncle because NAFTA tribu-        leadership role in an Americas-wide free       tors considered in assessing serious injury     Michener LLP. Their practice focuses on
     Pedro Aspe, Mexico’s former secretary of         knock offs.                                    nals have ruled against them a few times.      trade agreement and look at starting free      include whether there has been significant      international trade law, including obtaining
     the treasury told CME members during                   Despite it all, the same survey says          “Yes, we’ve had our differences and       trade negotiations with Japan, India and       price undercutting, price depression or even    anti-dumping, countervailing and safeguard
     an Oct. 31, 2005 speaking engagement in          Canadian companies feel Asia and China         our difficulties,” U.S. Secretary of State     democratic Asia-Pacific countries. 20/20       suppression of price increases.                 remedies for Canadian manufacturers.


        Canada’s Industry Association Magazine
                                                                                                                                                                                                                     InsIGht on InnoVAtIon
By Steve Coleman

                   I
                        t won’t come as a surprise to any      performance reviews, pro-active hiring
                        good business professional that the    procedures and how the multi-national
                        only way to increase profits, next     does its product development with self-

                                                                                                              innovation insights
                   to raising revenues, is to spend less and   directed work teams.
                   play smarter.                                     One thing program organizers


                                                                                                              best practices in action
                         For the last decade, small and mid-   ensure is that the visits aren’t open to
                   size Canadian business leaders looking      direct competitors, said Fenwick. A host
                   to hone their competitive edge have         company gets to vet any names on the
                   invested a day learning how industry        guest list before a visit occurs.              spring 2006 events Calender
                   leaders got there.                                In the last decade, the program          The secret to success lies behind the closed doors of first class manufacturers.
                         Canadian Manufacturers & Ex-          has done a lot to help keep Canadian
                   porters have walked more than 20,000        businesses stay competitive, he says.
                                                                                                              You pass them every day on your way to work. Chances are that beyond those closed
                   participants through the process since      Most managers are so busy running              doors is a best practice in action that solves a similar challenge you are faced with
                   launching the innovation insights pro-      their companies that they don’t have           on your plant floor. “Behind-the-scenes” Innovation Insights events help stimulate


                                                                                                                                                                                                                       C
                   gram with financial backing from the        time to consider the way they’re run-                                                                                                                             anadian Manufacturers
                                                                                                              team members to learn what works, what doesn’t and how to achieve results.
                   National Research Council of Canada         ning the business.                                                                                                                                                & Exporters (CME) will
                   (NRC/IRAP).                                       “Some have saved 60 per cent on          Visit the Innovation Insights website: www.tvp-ii.org                                                              present the Canadian
                         “It involves senior-level manufac-    their productivity,” says Fenwick. “Oth-                                                                                                                Innovation Awards for 2006-2007 at
                   turers,” says Jon Fenwick, the program’s    ers have had a 15 per cent increase in         date       City            Host CoMpany Learn about                                                      a gala dinner on October 3, 2006 in
                   executive director. “It’s geared to the     their throughput time.”                        14 Mar Kingsey Falls, Cascades -             Continuous Improvement • 5S and key performance             Calgary, AB during CME’s Alberta
                   level that other managers can go in, see          Advanced manufacturing technol-                     QC              Kingsey Falls     indicators • Innovation as the key to company success       Lean Conference, October 2 – 6, 2006
                                                                                                                                                           • Developing a value-added production process
                   a great plant and learn how it works.       ogy is just one of the areas where the                                                                                                                  at the Telus Convention Centre.
                   We find the best and the brightest and      five CME staff members delivering the          16 Mar Bromont, QC         Dalsa             Self-directed work teams • PROMIS - Process Manage-              Innovation is the key to success in
                                                                                                                                         Semiconductor     ment Integration System • Kanban - paperless manu-
                   sponsor 100 visits a year.”                 program plan to offer advice. Another                                                       facturing, 100% traceability and on-time delivery           today’s global economy. Just as improv-
                         The idea is to give other Canadian    is a look at how companies can make            22 Mar St-Jean-sur-        Oerlikon          Becoming a supplier or partner in a rapidly                 ing a company’s competitive position
                   companies new insights on how they do       the most out of what they already have                    Richelieu, QC   Contraves Inc.    changing world through an association with a                is driven by constant innovation
                                                                                                                                                           major systems integrator
                   things – 20 visitors at a time. That way,   through “lean manufacturing.”                                                                                                                           and productivity improvements, the
                   the wheel only gets invented once.                The idea touches on the Toyota           12 apr     Mirabel, QC     Bell Helicopter   Winning strategies that motivate management                 competitiveness of Canada as a nation
                                                                                                                                         Textron Canada    and employees • Quality Management
                         Since every company has something     Production System. The automaker is                                                                                                                     hinges on our ability to encourage
                   different to offer, each visit focuses on   famous for continually cutting waste           13 apr     Halifax, NS     Nova Scotia       Environmental Best Practices/Sustainable Development        innovation.
                                                                                                                                         Power Inc.
                   two or three key points where a host        from its operations. The session gives                                                                                                                       The Canadian Innovation Awards
                                                                                                              31 May Halifax, NS         Canada Post       Capable and stables processes though Lean and
                   firm has made significant improvements      other companies an opportunity to                                         Corporation       Six Sigma • Process management and Change                   recognize success in Canada and
                   in its own operations.                      look at how they can reduce waste and                                                       management are critical factors for the measurement         highlight best practices as a means to
                                                                                                                                                           of successful change • Evolution thru Lean for a
                         “I’ve done more sharing than          produce long-term improvements.                                                             Visual Workplace and Standard Work                          encourage innovation and improve the
                   receiving,” says Brian Flewwelling,               Building a solid, and flexible, supply   19 apr     Burlington,     Etratech          Employee participation using Lean Principles                competitiveness of Canadian industry.
                   Director of Materials for NCR. “We’ve       chain is another cornerstone for success-                 ON                                • Reducing costs while enhancing quality and efficiency          The competition is open to all
                   talked about developing the work force      ful manufacturers. Being able to quickly       3 May      Guelph, ON      McNeil            Health, Safety and Environment • Continuous
                                                                                                                                                                                                                       Canadian-based companies and divi-
                   and employee empowerment...We were          fill a large order often decides whether                                  Consumer                                                                      sions within a company who exceed
                                                                                                                                                           Improvement/Supply Chain Management • Innovation
                                                                                                                                         Healthcare
                   ahead of our time for a long time.”         or not a customer goes with your com-                                                                                                                   in: the promotion of health and safety;
                                                                                                              10 May Delta, BC           Arpac Storage     Shifting away from silo based departments to team
                         Executives with other companies       pany or picks a competitor.                                               Systems Corp.     based company • A strong Continuous Improvement             product design and commercialization;
                   come into a session with their eyes wide          Along with a flexible supply chain                                                    culture through clear goals, effective communication        new technologies or products; envi-
                                                                                                                                                           and cross-training • Lean tools - 5S, Value Stream
                   open, Flewwelling said. While the stop      comes sustainable development –                                                             Mapping, one-piece flow, dashboard metrics, and             ronmental technologies; improving
                   includes an overview of what they’ll see    whether its economic, environmental or                                                      set-up reduction • The Arpac Value Cycle                    company productivity (Lean); market
                   and a plant tour, the real brainstorming    social. Being able to provide for future       11 May Collingwood, VOA Canada Inc.          Achieving tangible results through employee involve-        diversification and export sales.
                   happens during the question and an-         generations also has a serious impact on                  ON                                ment • Transition to autonomous manufacturing teams              CME will begin accepting Applica-
                   swer period following the walk-through.     a firm’s long-term fortunes.                   15 Jun     Coquitlam,      Roboweld Inc.     On-site building of manufacturing cells • Real              tions June 12, 2006 (the Application
                                                                                                                         BC                                Case studies of Canadian manufacturers using
                         The question-and-answer periods             But becoming more flexible doesn’t                                                    welding automation • Robotics, automation,                  Brochure can be found on CME’s
                   have produced some of the best mo-          have to mean spending more capital on                                                       latest in welding technology                                website at www.cme-mec.ca.
                   ments since the program began.              expensive technology, says Fenwick. A          21 Jun     Richmond,       Great Little      The number one asset - people. Profit sharing, idea              For more information please
                                                                                                                         BC              Box Company       recognition and other employee-based programs
                         During the five years NCR was         few, simple, production flow changes                                                        encourage employees to have ownership in successful         contact Lori Stone at 613-238-8888
                   involved with the program, the conver-      can often do more to improve produc-                                                        outcomes • Benchmark 99% on-time delivery, surveys,         ext. 225 or lori.stone@cme-mec.ca .
                   sation always seemed to come around to      tivity than a $1 million machine.                                                           customer service



                                                                                                                                                                                                                                          www.cme-mec.ca          
     new MeMBeR pRoFILes                                                                                                                                                                                                                     new MeMBeR pRoFILes



                                                     Lang Michener                                                                                introducing vidabode roughly                                                             a growing population – we need a home
                                                                                                                                                                                                                                           that will see the occupants throughout

                                                                                                                                                  translated… Lifedwelling
                                                     Y
                                                             asir Naqvi and Martin Masse                                                                                                                                                   generations – we need this change to
                                                             are lawyers in the Ottawa office                                                                                                                                              begin NOW.”
                                                             of Lang Michener. Their areas                                                                                                                                                       With Social and First Nation


                                                                                                                                                  “I
                                                     of expertise include international trade,    NAFTA matters. They represent clients                  t’s not a matter of if it’s simply    time and as limitless as the imagination    housing issues being in the immedi-
                                                     competition, procurement, customs and        before CBSA, CITT and the Federal                      a question of when”. That is          – lightweight concrete building.            ate forefront, the Vidabode mandate
                                                     federal regulatory law and advocacy.         Court of Canada.                                       exactly the type of response you’ll        The author of the technology, Mr.      is clear – to provide safe, affordable
                                                          Martin and Yasir are members of the          Contact Mr. Masse at 613-232-7171          get from Vidabode President and CEO          Michael Buriak, has used this process to    family housing that makes those parties
                                                     International Trade Group, helping global    ext. 245 or mmasse@langmichener.ca.             Wanda Arnold when she speaks to you          build in places such as Costa Rica, Ven-    affected part of the solution. “We want
                                                     companies exploit trade and international    Contact Mr. Naqvi at 613-232-7171               about the growing product technology         ezuela, and Malaysia. It is now time to     to see as many people as possible in each
                                                     business opportunities and overcome          ext. 197 or ynaqvi@langmichener.ca.             and applications being used by Vida-         challenge the North American paradigm       community involved in their housing
                                                     regulatory and competitive obstacles.             Lang Michener is a leader in business      bode Group Inc. located in Amherst,          of concrete houses and bring the tech-      solution.” Vidabode will set the stan-
                                                     They have experience in international        law. More than 200 dynamic professionals        NS. Working with a dedicated group           nology home. “We need to introduce          dard for family housing in Canada and
                                                     trade law, anti-dumping, countervail         provide innovative solutions from our offices   of shareholders, directors and a core        the Nation to a safe housing alternative    throughout the world…one Vidabode
                                                     and safeguard proceedings, and WTO/          located in Toronto, Vancouver and Ottawa.       management group, Wanda Arnold               that is energy efficient, fireproof, wind   house at a time.
                                                                                                                                                  and the Vidabode Team are working            resistant and has the longevity to see
                                                                                                                                                  to change the face of housing, both in       well beyond the lifetime of our tradi-      For more information please contact
                                                                                                                                                  Canada and around the world. How?            tional “stick built” houses. Our natural    us at info@dmaya.com or by calling

     paving the way to big tax refunds…                                                                                                           By the application of a concept as old as    resources are being depleted and we are     1-888-661-VIDA ( 8432)


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8        Canada’s Industry Association Magazine                                                                                                                                                                                                                 www.cme-mec.ca               9
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0        Canada’s Industry Association Magazine
       the huMAn DIMensIon                                                                                                                                                                                                             the huMAn DIMensIon



                                                                                                                                              increases at a conservative 3.2 per cent.     later than April 28, 2006. CME will host    Visit imercer.ca/CME-MEC or call
                                                                                                                                                    Employers looking to manage their       a seminar on these issues March 21.         1-800-631-9628 to participate.
                                                                                                                                              payrolls and their human capital invest-      Survey participants enjoy discounted
                                                                                                                                              ments need to address these conditions        results and advanced geographic ana-        Danielle Bushen is a Principal and
                                                                                                                                              to stay competitive. Geographic salary        lytical access.                             leader of Mercer’s Human Capital
                                                                                                                                              differentials have been commonplace in             Participation in the survey enables    business for product solutions, includ-
                                                                                                                                              the United States for many years. Until       companies to compare themselves to their    ing compensation surveys and related
                                                                                                                                              recently, less than one-third of Canadian     competition using Mercer PayMonitor‚.       research. 20/20
                                                                                                                                              employers had established geographical
                                                                                                                                              rates of pay.
                                                                                                                                                    More money will be needed to
                                                                                                                                              attract and retain talent in the west.
                                                                                                                                              Productivity gains and expense savings
                                                                                                                                              are sorely needed in central Canada.
                                                                                                                                                    As a result, Mercer Human Re-

     Mercer Human resource Consulting and CMe

         team Up
                                                                                                                                              source Consulting predicts minimal
                                                                                                                                              wage increases, or even stagnation, in
                                                                                                                                              Ontario and Quebec in 2006, while pay
                                                                                                                                              rates will be subject to aggressive pres-
                                                                                                                                              sure in the west. Geographic differen-
                                                                                                                                              tials, whether by design or necessity, will


     to bring competitive edge to manufacturers
                                                                                                                                              become the new standard for employers
                                                                                                                                              recruiting talent across Canada.
                                                                                                                                                    To effectively respond to these
                                                                                                                                              conditions, employers need accurate
      Payroll Competitiveness: It’s not just a buzzword, but a key to survival for Canada’s manufacturers and exporters                       intelligence about the marketplace.
      By Danielle Bushen                                                                                                                            Canadian Manufacturers & Export-
                                                                                                                                              ers is partnering with Mercer Human
                                                                                                                                                                                                   We’ll leave no stone unturned

     W
                   ith a volatile dollar and a     Ontario/Quebec heartland – are forcing            Inflation rates are further augment-     Resource Consulting to provide a                                    (without turning things upside down.)
                   ‘perfect storm’ engulfing the   employers to consider more market-          ing regional disparities. The national         snapshot of Canadian manufacturing
                   industry, reducing opera-       dependent approaches to setting com-        average inflation rate crept up to about       industry pay rates.
     tional costs is a bottom-line issue for       petitive wage rates and awarding annual     three per cent by the end of 2005 and is             CME’s Compensation Survey Suite
     Canadian companies.                           pay increases.                              expected to stay in the low-to mid-three       provides market pay levels for more
          One area often overlooked, but                Consider the expected pace of          per cent range into 2007. Expect the           than 380 jobs across Canada, based on
     vital to profitability and overall success    economic activity by province in 2006,      Alberta rate to stay at close to four per      data from more than 525 companies.
     for Canadian industry, is payroll             as measured by Gross Domestic Product       cent into 2007. Unemployment levels            Whether a firm employs engineers, plant
     competitiveness.                              (GDP). For Atlantic Canada, Quebec,         in Canada’s booming province are as            workers, supply chain specialists or sales-         In the search to save your business money, our expert advisors will
          Nationally, Canadian salary and          Ontario and Saskatchewan, GDP is            low as 3.3 per cent, half the 6.5 per cent     people, this deep and comprehensive                 be comprehensive without being disruptive. On average, we will
     wage increases have consistently been         projected to be between 1.8-3.0 per         national average.                              database offers valuable insights which             uncover 15 to 25 per cent in savings on purchased goods and services.
     in the 3.2-3.5 per cent range for more        cent. However, in the western provinces           Salary and wage rate increases at the    help companies target their payroll dol-            And because our fee is funded by the cost savings you realize, you
     than a decade. Inflation has run about        of BC, Alberta and Manitoba, GDP            start of 2006 reflect this trend. Nation-      lars where they are most effective.                 have nothing to lose but unnecessary waste. Let’s talk.
     a percentage point lower, meaning the         growth is expected to reach 3.4-3.7 per     ally, the average salary increase was ap-
     average employee has seen marginal            cent, courtesy of a buoyed energy sector,   proximately 3.4 per cent. In Alberta that      participation is vital
     growth in real earnings.                      B.C.’s links to Asia and preparations for   figure jumped to highs ranging from 4.8        To access this comprehensive and reli-              ERA Canada
          An emerging trend of varying             the 2010 Olympics. Newfoundland and         per cent to more than 10 per cent for          able source for accurate and insightful             1 877 859 8146
                                                                                                                                                                                                  www.eracanada.com
     growth and productivity levels across         Labrador will benefit from offshore oil     some employers. Ontario, which gener-          compensation information, participate
     Canada -- including a boom in Alberta         development as well with a projected        ally awards increases at, or slightly above,   in the CME Compensation Survey Suite.
     and a slower pace in the traditional          GDP of 5.2 per cent.                        the national average, posted actual                 Data submissions should arrive no


2        Canada’s Industry Association Magazine                                                                                                                                                                                                            www.cme-mec.ca        
       In peRspeCtIVe




     Looking at the future of Canadian Manufacturing
     enhancing the                                20/20
                                 vision By Perrin Beatty

     A
               s you probably already discov-                            industry in these tumultuous times.            we need your help to make the magazine
               ered, the new magazine has                                      During the redesign process, we re-      a true reflection of the industry. Please
               adopted its name from our                                 viewed almost every issue of the previous      give us your feedback on publication,
     Manufacturing 20/20 initiative. We                                  publication, dating back to the inaugural      email us at magazine@cme-mec.ca.
     wanted a simple, yet powerful name that                             issue of Alliance Magazine in June 1997.            I want to thank those of you who
     was reflective of vision and was represen-                          In that first edition, then President Steve    have supported CME Magazine in the
     tative of the pressing issues today and in                          Van Houten described the purpose of the        past and I look forward to even greater
     the future.                                                         magazine this way: “…We aim to have            support in the future. Together is the
           The new publication is an effort to                           Alliance Magazine become a key strategic       only manner by which we can manu-
     better serve you, our members and to                                tool to help strengthen the competitive-       facture a prosperous Canadian industry
     reflect the 21st century realities. Our aim                         ness of Canadian industry.”                    and achieve the goal established in our
     is to produce a publication that focuses                                  Fast forward to today, 20/20 Maga-       20/20 action plan of becoming the most
     not solely on what CME is doing, but                                zine has adopted the same mantra. We           competitive nation in the Americas. Enjoy
     tackles the issues that are affecting you. As                       have established an editorial calendar         your edition of 20/20 magazine. 20/20
     industry tries to cope with unprecedented                           for the first six issues that addresses
     change, a new reality is emerging where                             everything from the possible effects of
     you find more demanding customers;                                  a pandemic on Canadian industry to
     stiffer competition not from just next                              our nation’s energy situation; the skills
     door but around the globe and a new em-                             shortage in the sector to doing business
     phasis on innovation which is the driving                           with China. Innovation is a major theme
     factor behind growth.                                               of 20/20 magazine and you will find a lot
           20/20 Magazine is not a look into                             of ink dedicated to the latest trends in the
     the past, rather it is a vision for the future                      industry and to some of Canada’s great
     and we hope it will act as a beacon for the                         innovative leaders in upcoming issues.
                                                                               We launch our maiden edition by
                          Canada’s industry assoc
                                                  iation magazine
                                                 iation magazine
                           Canada’s industry assoc
                                                      March/April 2006
                                                                         addressing an issue that was a focal point
                                                                         of our 20/20 consultations – the image of
                                                                         manufacturing. The commentary from
                                                                         industry leaders and other key players in
                                                                         the industry proves that the current image
                                                                         of the industry is out of touch with real-
                                                                         ity. We must address this very challenge
                                                                         immediately and I can tell you CME will
                                                                         be leading the charge. Defining the manu-
                                                                         facturing industry of the 21st century will
                                                                         be one of the key priorities of the national
                                                                         voice of Canadian industry. We must pro-
                                                                         vide a better understanding to Canadians
                                                                         about the reality of manufacturing today
                                                                         – we have no other option.
                                                                               The 20/20 Magazine will undoubt-
                                                                         edly evolve over the next few editions and


        Canada’s Industry Association Magazine
With over 7000 customers exporting to more than 200               Ayant au-delà de 7 000 clients qui exportent vers plus de 200
markets around the world, Export Development Canada (EDC)         marchés partout dans le monde, Exportation et développement
has been helping Canadian companies succeed abroad for over       Canada (EDC) aide les entreprises canadiennes à réussir à l‘étranger
60 years. To learn more about how we can help you grow your       depuis plus de 60 ans. Communiquez avec nous pour savoir
business, contact us.                                             comment nous pouvons vous aider à faire croître votre entreprise.


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