Building Ontario’s Manufacturing Base

Gary Goodyear, minister of state for the Federal Economic Development Agency for Southern Ontario

To be competitive, today’s manufacturers must create perfect parts in the shortest time possible. They must also be savvy business owners, knowledgeable about accounting, human resources, and the art of negotiation. CIM—Canadian Industrial Machinery recently asked Gary Goodyear, minister of state for the Federal Economic Development Agency for Southern Ontario (Fed- Dev Ontario), to discuss his government portfolio and the role manufacturing plays in Ontario. Here is what he had to say.

CIM: What do you see as challenges to opening a manufacturing shop in Ontario?

Goodyear: Ontario’s manufacturers are among the best in the world and have been so for a very long time. I think the biggest hurdle facing new businesses in Ontario, and in all of Canada, is raising adequate capital.

Another hurdle they face is gaining access to the investment community. Once a manufacturer opens its doors, it needs support to take it to the next level.

Business owners often struggle to expand their facilities and adopt new technologies and processes to improve productivity. Canada’s investment in machinery and equipment when viewed as a share of GDP is low compared to our peers, and because it can be such a key driver of productivity, it’s an area we want to focus on.

CIM: Where are the successes in the province?

Goodyear: Thankfully, the successes are almost too numerous to count. One sector that we can always point to is our deep and innovative aerospace and defense industry. This sector not only is a major contributor to the province’s economy, it helps drive new, advanced technologies to its marketplace and creates high tech, value-added products.

CIM: How does the aerospace/defense sector affect Ontarians?

Goodyear: There are more than 200 aerospace firms employing 17,000 highly skilled workers directly, and thousands more indirectly. It also generates more than $5 billion in sales per year. When we want to talk about manufacturing success stories, this is always a good place to start.

CIM: What can government do to help duplicate these successes?

Goodyear: Government can act as a facilitator, a link between the business owner and investors. We also support businesses through grants such as FedDev Ontario. Since its creation in 2009, FedDev Ontario has invested more than $1.1 billion in southern Ontario to support businesses, manufacturers, organizations, and communities in the region.

A large part of our work is helping to grow the region’s innovation capacity.

This has resulted in partnerships with more than 5,300 organizations. It has also resulted in spurring additional investments of more than $1.5 billion from almost exclusively nongovernment sources.

CIM: Describe the Advanced Manufacturing Fund’s role.

Goodyear: Manufacturing is a major economic sector for Ontario and for Canada. We all know that, and we know that we can do more to make it more competitive and productive so that it can once again be an important economic driver for prosperity.

The Advanced Manufacturing Fund (AMF) makes $200 million available over the next five years for Ontariobased projects that focus on innovation.

Firms in manufacturing sectors are constantly pursuing opportunities to develop new products and technologies that open and expand markets, increase efficiency, and improve our quality of life, and this fund is designed to help them innovate.

CIM: How can the government affect our ability to compete globally?

Goodyear: Taxes. By keeping taxes low we have created the best environment for business investment among our peers in the G-7. Creating jobs and opportunities remains our government’s top priority, and lower taxes create jobs for Canadians.

We also are not immune to external economic developments, especially those arising in the U.S. The federal government’s Economic Action Plan 2014 was designed to support our economy and guide it through an uncertain world market.

I am confident that this province has the knowledge base to be leaders in innovation. Our goal is to make sure our communities and businesses can continue to innovate and find opportunities and to help the economy grow.

All actions taken by the government are designed to position Ontario as an attractive place to open a business or invest in a business. Since 2006 our government has lowered taxes, reduced regulatory red tape, and improved conditions for business investment.

One of the boons for Ontario’s manufacturing base is the economic and trade agreement we have reached with the European Union. This is the biggest trade compact Canada has ever made. It will provide Canada’s manufacturers with market access to more than 500 million consumers.

www.feddevontario.gc.ca