Manufacturing & Exporting“Business Development Opportunities for ITE’s”

Presentation to SITE BCBy Craig Williams, P. Eng Vice-President BC Division

Canadian Manufacturers & Exporters (CME)January 10, 2008

• Canadian, born in Vancouver• P. Eng, Mechanical Engineer

(UBC ‘74)• Varied career !!??

• R&D, design, consulting engineering, project mgt, construction, sales, general management, advanced manufacturing, small hi-tech electronics

• 70% away from Vancouver• 100% export oriented

• Expatriate … for ~11 years: • Turkey, USA, Australia,

Netherlands• Associations & Community

Involvement: • APEBC, VIATEC, CME, Premier’s

IAC, CCCA, hobbies, children’s events, charities

• Recruited many ITE’s

My Career … over 30+ years

• ‘74 … R&D/plant engineer … Vancouver & Port Alberni

• ‘79 … consulting engineer & construction management … Vancouver & Turkey

• ‘84 … VP, equipment/construction firm … USA & Vancouver

• ‘88 … VP, global engineering firm … Australia & Vancouver

• ‘93 … President, global machine component manufacturing firm … Holland, Finland, Sweden, Belgium, France

• ‘97 … CEO, aquaculture technology firm … Nanaimo

• ‘00 … CEO, heavy industrial equipment manufacturing firm … Victoria, Salmon Arm … with operations in USA, Europe, Australia, NZ, Chile

• ‘04 … President, remote automated environmental monitoring technologies … Victoria

• ‘08 … VP, Canadian Manufacturers & Exporters, BC Division

Canadian Manufacturers & Exporters

• CME is a results-oriented, member-driven organization, established in 1872 with a presence in every province.

• Delivers programs to members via:– Facilitation & networking– Advocacy with Government– Communications about important issues

impacting the sector– Education for manager and employees … eg.

Lean, benchmarking best practises

Manufacturing in CanadaManufacturing in CanadaShort Term ChallengesShort Term Challenges

Long Term OpportunitiesLong Term Opportunities

Jayson MyersPresidentCanadian Manufacturers & Exporters

November 26th, 2008

Is Manufacturing & Exporting Is Manufacturing & Exporting important to Canada?important to Canada?

• Single largest business sector in Canada … brings together manufacturers and exporters from every industrial sector; small, medium and large

• Manufacturing directly accounts for 20% of Canada’s GDP – 12% in BC.

• Every $1 of manufacturing output generates more than $3.00 in total economic activity – largest economic multiplier

• $600 billion in annual manufacturing sales across Canada, more than $40 billion in BC

• Canadian manufacturers:– Employ 2 million Canadians with wage levels 25% above

national average – 200,000 in BC– Account for 67% of Canada’s goods & services exports– Account for 75% of private sector R&D

Jobs Depend on Manufacturing!Jobs Depend on Manufacturing!83%

47%

46%

31%

29%

29%

26%

24%

19%

19%

18%

15%

15%

11%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

FORESTRY

CROP & ANIMAL PRODUCTION

FORESTRY & AGRICULTURAL SERVICES

UTILITIES

PROFESSIONAL & TECHNICAL SERVICES

MINING, OIL & GAS

ENVIRONMENTAL SERVICES

WHOLESALE TRADE

CONSTRUCTION & ENGINEERING

TRANSPORTATION & WAREHOUSING

INFORMATION & CULTURAL INDUSTRIES

OTHER BUSINESS SERVICES

ARTS, ENTERTAINMENT, RECREATION

FINANCIAL SERVICES & REAL ESTATE

PERCENT OF EMPLOYMENT ATTRIBUTABLE TO MANUFACTURING

The Perfect Storm!• Canadian $ volatility

– Over 50% increase since January 2002 … and back down to almost $0.85 recently!!

• Volatile energy & commodity costs– Oil at $145+/barrel, now in the $40/barrel range!!

• Skills Shortages– Less of a concern now, but will be a significant issue in the long term

• Stronger International Competition– Low cost competition … downward pressure on prices – Need to escape the commoditization trap

• Recession in key US markets and overseas– Housing, automotive, consumer, equipment … many plant closures– Significant market uncertainty

• Currency & credit market problems– Tighter credit conditions – in the US & Canada, and for export– Volatile currencies

The BC Economy … courtesy of

Jock FinlaysonBusiness Council of BCDecember 2008

Canadian Economy – Growth Expectations Downshift (private sector consensus)

Source: Department of Finance.

0%

1%

2%

3%

4%

5%

2008 2009 2010 2008 2009 2010

2008 Budget Nov 2008

Nominal GDPReal GDP

10

BC Economic Forecast(annual % change unless noted; as of Dec 1/08)

Source: Statistics Canada and Business Council of British Columbia.

actual forecast

2007 2008 2009 2010

Real GDP 3.1 1.2 0.4 2.6

Nominal GDP 5.5 3.5 0.6 5.5

Employment 3.2 2.2 -0.7 1.3

Retail sales 7.0 2.1 0.7 5.0

Housing starts(units)

39,200 35,800 24,000 26,000

11

Responding to the challenge … Responding to the challenge … how can you assist/benefit?how can you assist/benefit?

• Global markets = Global competition … find your niche!• Competitors, partners, suppliers & customers from around

the world• Global access to knowledge & new technologies• Accelerating pace of technological change … innovation,

R&D, product development• New market development … in Canada and overseas• Competitiveness/productivity … reduce waste and create

customer value through Lean manufacturing• Achieving results through people … skills upgrading,

teamwork, ideas

Specific Lessons learned from CME’s EMAP program

• English communications … speaking and writing

• Resumes – Keep it short and concise … with a powerful covering letter!– Know the employer’s business/markets/products … review corporate website, etc– Custom design your resume to match job requirements with your skills/experience … what

benefits do you bring to an employer?

• Interviews– How to present yourself … attire/appearance, punctual, well prepared, relaxed– Attitude … respectful, non-argumentative, non-sexist, non-hierarchal, non-discriminatory,

sense of humour – Understand what the employer is looking for … and position your skills/experience – Listen carefully … “Two ears, one mouth”– How to answer questions … “describe situation, action taken, results achieved”– Trusted references & education– Involvement in outside activities … community, clubs, hobbies

• Customs and cultural norms of the workplace– Canadian workplace basics, organizational structure and roles/responsibilities– Interpersonal communications, working in teams– no gift-giving

• Computer/software skills

Craig’s Lessons Learned … for ITE’s

• Round out your technical education with “soft skills” … continuous ongoing education

– marketing, sales, public speaking (Toastmasters), law, writing, etc.

• Review business, trade, local papers• Look for good volunteer/intern opportunities … work, profession or

community• Participate in networking activities … get out of your “comfort zone”

• Demonstrate good problem solving/decision making skills• Be prepared to accept entry level jobs … to prove yourself• Don’t worry about wages initially … if you’re good, you’ll be taken care of• Be prepared to work outside of metro Vancouver … to establish

your credentials

• Be flexible and keep your options open: “if at first you don’t succeed … try, try again!”

• Balance your work and personal life• Have fun!

Questions??Contact Jacqueline deRaadt

(CME’s EMAP program representative) for more detailed information