ontario canada: emerging strong 2013
TRANSCRIPT
-
7/29/2019 Ontario Canada: Emerging Strong 2013
1/49
2013
-
7/29/2019 Ontario Canada: Emerging Strong 2013
2/49
occ.on.ca | @OntarioCoC legermarketing.com | @legerwebmowatcentre.ca | @mowatcentre
Emerging Stronger 2013
2013 Ontario Chamber o Commerce, Mowat Centre or Policy Innovation, Leger Marketing
PDF ISBN: 978-1-927350-36-2
Print ISBN: 978-1-927350-35-5
2013
-
7/29/2019 Ontario Canada: Emerging Strong 2013
3/49
contentsWhat the Party Leaders are Saying about Emerging Stronger
Letter to Ontarians
Working Together
The Ontario Business Confdence Index
Regional Sentiment
Fostering a culture o innovation and smart risk-taking in order to become a
productivity leader
Building a st century workorce through workplace training, utilizingnewcomers skills, and apprenticeship reorm
Restoring scal balance by improving the way government works
Taking advantage o new opportunities in the global economy
Identiying, championing and strategically investing in our competitiveadvantages in the global economy
Conclusion Summary o Recommendations
Acknowledgements
-
7/29/2019 Ontario Canada: Emerging Strong 2013
4/49
OCC
|Mowat|Leger
What the PaRtY leadeRs aResaYing about EmErging StrongEr
Ee Se rwrk r r r r prpry. i
rz p or , w r p
k ppr y r
p wr r y. lkAdvaae
oa, rpr J Prpry c, Ee Ser w w , w k r r.
- Premier of Ontario, Dalton McGuinty
Ee Sek pr y k
w r. i r ky q,
xpr w w k or p
c r . i k w or Pc
k Ee Se.
- Leader of the Progressive Conservative Party of Ontario, Tim Hudak
Pp r y. W w r r
pr -py j or k
r w f p. a Ee Sery ,r r py y p or
wrkr qp. W r rr
y w w rr ry , w w
r. by pp, or pr r r.
- Leader of the New Democratic Party of Ontario, Andrea Horwath
-
7/29/2019 Ontario Canada: Emerging Strong 2013
5/49
EmergingStronger2013
It has been one year since the Ontario Chambero Commerce, the Mowat Centre, and LegerMarketing released Emerging Stronger 2012:
A Transormative Agenda or Ontario.
Emerging Stronger 2012 set out an economic
agenda or the province that could bestbe pursued i the ederal and provincialgovernments work together, with the privatesector, academia, and labour, to achieve success.
A amiliar rerain among concerned Ontariansis that the province aces a clutch moment.Ontarios nances are altering under the weighto accumulated decits. Our provincial debt is
approaching $ billion. Interest payments onthat debt now represent the third largest area oprovincial spending ater health and education,crowding out investments in other programs.Many sectors that were once Ontariosstrengths are now struggling. More than ever,Ontarios businesses ace sti competitionor investment, markets, and talent.The Ontario Chamber o Commerce, theMowat Centre, and Leger Marketing areprooundly condent that Ontario has allthe assets it needs to secure its position asthe worlds best place to do business, invest,work, and live. But we need to act collectively,strategically, and with purpose. Herein lies
the objective o Emerging Stronger 2013.
letteR to ontaRiansWe have been on an incredible journey sinceEmerging Stronger 2012 was released. The OCChas criss-crossed the province engaging its local chambers and their , members,and building our research agendas aroundit. And the OCC has taken action, including
hosting eight regional economic summitsacross the province, where hundreds oOntarians identied key economic priorities.
Emerging Stronger 2013 surveys the progressthat business, government, and civil societyhave made over the past year. It identiesthe challenges we still ace, and sets out thetangible steps we must take to ensure that
Ontario emerges stronger rom this periodo economic transition. We are pleased toreport that much progress has been made.However, there is much more to be done.
This is the beginning o a new era orOntario. The province must embrace atransormative agenda that will challengeOntarians to meet our huge potential.
We hope that you will join us in movingthis agenda orward so that Ontariocan emerge stronger, more productive,and more globally connected.
-Ontario Chamber of Commerce & Mowat Centre
-
7/29/2019 Ontario Canada: Emerging Strong 2013
6/49
OCC
|Mowat|Leger
WoRKing togetheRIn , the Ontario Chamber o Commerce (OCC) and the MowatCentre partnered with Leger Marketing to develop Emerging Stronger 2012:
A Transormative Agenda or Ontario. Emerging Stronger 2012 identied vepriority areas where Ontarios business, government, and civic leadersshould ocus their eorts in transorming the provinces economy:
. Fostering a culture o innovation and smart risk-takingin order to become a productivity leader
. Building a st century workorce through workplace training,utilizing newcomers skills, and apprenticeship reorm
. Restoring scal balance by improving the way government works
. Taking advantage o new opportunities in the global economy
. Identiying, championing, and strategically investing in ourcompetitive advantages in the global economy
Since Emerging Strongerwas released in January , its message hasbeen met with widespread enthusiasm and support. It has reached everycorner o the province and has been supported by the Ontario ChamberNetwork o over , businesses and local chambers.
Over the course o , the OCC, the Mowat Centre, and LegerMarketing have taken steps to urther this agenda.
The OCC, under the umbrella o its multi-stakeholder Ontario EconomicSummit (OES) initiative, hosted eight Regional Economic LeadershipSeries (RELS) roundtables across the province. Using the ve prioritiesidentied in Emerging Stronger 2012 as a lens, the roundtables elicitedeconomic priorities rom each region (see Regional Perspectives, page ).
-
7/29/2019 Ontario Canada: Emerging Strong 2013
7/49
EmergingStronger2013
Together, the priorities identied in the RELS inormed the content
o the annual meeting o the Ontario Economic Summit (OES) heldin Niagara-on-the-Lake in November . The OES convened o Ontarios top business and civic leaders to carve out an agenda tomake the province more competitive. The top priorities identiedthrough the RELS and the OES can be ound in this report.
The OCC has also released a research paper, A Federal Agendaor Ontario, which outlines a ederal economic strategy orOntario. Meanwhile, several OCC taskorces are delving
urther into key parts o the Emerging Strongervision.
The Mowat Centre has developed a new slate o research projects to urtherthe Emerging Strongeragenda by identiying new opportunities to grow theOntario economy and connect the province to the rest o the world. Theseprojects eplore the uture o Ontarios manuacturing sector, the economicpotential o Ontarios rich diaspora networks, the structure o corporatetaation, and greater cross-border integration in the Great Lakes Region.
In late , Leger Marketing completed the Ontario Business ConfdenceIndex, a survey o , businesses and organizations rom across theprovince. The results o that survey inorm this report. As the largestCanadian-owned polling, research, and strategic marketing rm, LegerMarketing is lending their considerable epertise in public opinion pollingto conduct quarterly surveys throughout on behal o the OCC.
With cooperation in mind, the OCC and the Mowat Centreoer a ollow up to Emerging Stronger 2012. Emerging Stronger 2013begins with our annual Ontario Business Confdence Index. Then,or each o the ve priority areas set out in last years report, weassess the progress made, we outline the challenges we ace, andnally, we lay out a policy roadmap or the net several years.
t wr w w . W ...gr r py , r
py rp.
gd nx, Pesde ryal Bak
f Caada, Cha f he oa
Jbs ad Pspey Cucl,
Speech he oa Ecc
Su, nvebe 2012
-
7/29/2019 Ontario Canada: Emerging Strong 2013
8/49
OCC
|Mowat|Leger
FinancialServices8
7%
74%
BusinessServices7
5%
69%
Hospitality&Leisure7
5%
55%
Average7
2%
60%
Energy&Utilities7
0%
54%
Engineering,Construction,
&Inrastructure
69%
59%
Manuacturing
&Auto
70%
58%
Retail
67%
49%
HealthCare6
6%
67%
ICT
66%
61%
Government
65%
32%
Not-or-Proft
64%
48%
Chart 1Businesses are confdent in their own outlooks and are likely to expand.
Condence in organization* Plans to epan d**
* How condent are you in your organization's economic outlook as o right now?**Based on the way the Ontario economy is operating right now, whould you say thatin the net ver years, your organization will epand, decrease, or remain the same?
Chart 4Productivity concerns are prevalent across theeconomy, with business services, manuacturers,plus not-or-proft leaders citing the most concern.
Hospitality & Leisure 16%
Health Care 14%Financial Services 14%
Retail 12%Energy & Utilities 11%
Average 10%ICT 9%
Engineering, Construction,& Inrastructure
8%
Business Services 7%
Government 7%
Manuacturing 7%
Not-or-Prot 7%
Sel identiy sector as productivity leader
Condent inown organization*
72%
Economy is heading
in the right direction**41%
Chart 2But, businesses aremore confdent in theirown organization thanthe economy overall.* How condent are you in your organizations economic outlook as o right now?**In a global economic contet, do you believe the Ontario economy is going in theright or the wrong direction?
Chart 3Only 10 percent o business leaders say their sectorsare global leaders in terms o productivity.
More alarmingly, 35 percent say their sectors are alling behind.
Global productivity leader
Staying with the pack
Falling behind
Dont know/not sure
When it comes to your sector, would you say that compared to other regions in theworld, Ontario business is leading in productivity?
Chart 6Even though smallbusinesses are lessconfdent in theeconomy, they are aslikely to expand theiroperations.
Sm
all
59%
27%
10%
Medium
57%
28%
15%
La
rge
63%
21%
12%
Based on the way the Ontarioeconomy is operating now,would you say that in the netve years, your organization willepand, decrease, or remain thesame?
Chart 5Small business isgenerally less confdentin the economy.
Small
36%
22%
43%
Medium
34%
23%
43%
Large
26%
21%
53%
How condent are you in theOntario economy right now?Small = employees
When it comes to your sector, would you say that compared toother regions in the world, Ontario business is leading inproductivity?
Based on a survey conducted by Leger Marketing in November-December . , responses.
Not condent
Neutral
Condent EpandRemain the same
Decrease
-
7/29/2019 Ontario Canada: Emerging Strong 2013
9/49
EmergingStronger2013
Percentage o respondents who say Ontario economy is heading in the right direction. Average = .
Northwest
Northeast
Gta
Gha
east
soUthwest
CeNtraL
. Create stronger linkages between
colleges, universities, and businesses
to oster innovation.
. Reach out and create partnerships
with diverse community groups to
attract skilled labour to the area.
. Integrate business in school
curriculum in order to promote
a culture o entrepreneurship.
. Create stronger linkages between
colleges, universities, community
groups, and business to take ull
advantage o the skills base.
. Close the skills gap by ing the disconnect between
the education system and industry reality (supply and
demand) and reorming the apprenticeship system.
. Fi Sudburys image problem to attract skill to the area.
. Create bridges between employers and secondary school institutions to make students aware
o the skills and jobs in demand; develop a curriculum that osters proessional development,entrepreneurial training, epectations o business, work ethics, and proessionalism.
. Ensure all municipal leaders speak with one voice in order to realize the
broad benets o coming together as one powerul economic region.
. Add value to agriculture by embracing agricultural businesses and
recognizing it as one o Ontarios competitive advantages.
. Fi the immigration system by identiying the barriers to attracting
immigrants and oreign students to work and study in Ontario.
. Build a st century workorce by
leveraging eisting human capital
(youth, people with disabilities,
and Aboriginal peoples).
. Create a transportation system that
addresses the needs o the GTHA.
. Position health sciences as a wealth creator by eporting
our innovation and unique delivery models and
eploiting new platorms or commercialization.
. Epand innovation and research partnerships in advanced
manuacturing in order to push the innovation envelope, to address
productivity, drive more investments in research and development.
. Develop Aboriginal peoples
skills through training and
education to capitalize on
Ontarios untapped potential.
. Support emerging youth
leaders in order to promote a
culture o entrepreneurship.
Regional perspectives as dened through the Ontario Economic Summits Regional Economic Leadership Series, using Emerging Strongeras a ramework.
For updates on the progress these communities are making on their shared priorities, visit occ-oes.ca.
Regional PeRsPectives
46%
41%
42%
36%
38%
48%
44%
-
7/29/2019 Ontario Canada: Emerging Strong 2013
10/49
EmergingStronger2013
8
OCC
|Mowat|Leger
7
In 2012, we noted that Ontarios innovationgap is a major barrier to increasingproductivity and prosperity. This notion hasbecome almost clich. The province, theederal government, and numerous privatesector organizations have undertakenextensive assessments o the innovation andproductivity problem.
However, progress has been slow: only 10
percent o Ontario businesses eel theirsector is a leader in productivity. Although weare ar rom a comprehensive set o solutions,we are happy to report signifcant andmeaningul progress.
1. Fostering
a culture oFinnovation
& smart risk-
taking in order
to become a
productivity
leader
-
7/29/2019 Ontario Canada: Emerging Strong 2013
11/49
OCC
|Mowat|Leger
PROGRESS
Ontario continues to attract oreign investment. According to the Financial Times,Ontario attracted more oreign capital investment in than any other state orprovince in North America ecept Alberta. Ontario ranks rst among all majorjurisdictions in North America in oreign direct investment (FDI) per capita.
Ontarios marginal eective ta rate (METR) on new business investment is. percentnearly hal the average American METR o percent and lowerthan the average METR o percent among Organization or Economic
Cooperation and Development (OECD) countries (Ministry o Finance, ).
Venture capital supports have been enhanced. The ederal government has setaside an additional $ million and $ million respectively or the BusinessDevelopment Bank o Canada and the creation o large-scale venture capitalunds. This will encourage more private-sector R&D across the country.
In December , the Government o Ontarios Jobs and Prosperity Council (JPC)released its nal report,Advantage Ontario. It outlines a series o recommendations
or improving the provinces long-term productivity and competitiveness. Theserecommendations, particularly those around procurement, entrepreneurship,and business supports make a welcome contribution to the policy discussion.
Access to capital or smaller rms is set to grow. The Government oOntario has recently announced its intention to rela the rules restrictingcrowdundingthe practice o pooling investor unds or a charitable orcommercial enterprise, usually via the internet. This move will providestartups and small businesses with a new means o accessing capital.
Canadian businesses are starting to invest in productivity. A poll by the BusinessDevelopment Bank o Canada ound that percent o businesses plan to invest inthe coming year, mostly in new machinery and equipment. Surveyed businesses citeboosting productivity and developing new markets as their top reasons or investing.
The Canada Not-or-proft Corporations Act, which came into eect inOctober , has simplied and dramatically reduced processing timesor incorporation applications at the ederal level. Ontarios Not-or-ProftCorporations Act, will do the same at the provincial level starting in .
PULse CheCKWhat do you think about the
direction Ontario is taking whenit comes to ostering a culture oinnovation and smart risk-takingto become a productivity leader?
Dont Know9.8%
Right Direction33.4%
No Change40.3%
Wrong Direction16.4%
-
7/29/2019 Ontario Canada: Emerging Strong 2013
12/49
EmergingStronger2013
CHALLENGES
The Ontario Business Confdence Index shows that, relative to their international peers:
percent view their sector as a leader in innovation
percent eel their sector is a leader in productivity
percent see their sector as a leader in re-investment
percent identiy their sector as a leader in research & development
percent believe their sector is leading when it comes to taking risks
According to some observers, businesses are simply not being creativeenough with the capital and labour they have (Financial Post, July , ).
A recent Deloitte study ound that Canadian business leaders [are] less tolerant o risk than their U.S. peers. Canadian businesses need toembrace the risk-taking culture o their international competitors.
Our labour productivity growth continues to lag behind that o our U.S.counterparts. Over the last years, U.S. labour productivity growth
has outpaced that o Canada by an average o . percent a year.
According to the JPC, American manuacturers spent $, per employee onnon-residential ed assets in , compared to approimately $, in Ontario.Our own survey o Ontario manuacturers reveals that percent o leaders eeltheir sector lags behind their international competitors on re-investment.
Both the ederal and provincial governments have or are undertaking reviews otheir business supports and innovation programming in order to streamline and
deliver a greater return on investment. However, businesses are stil l conrontedby a hodge-podge o direct and indirect programs, because these eorts areuncoordinated (Commission on the Reorm o Ontarios Public Services).
srp prqr rqy ppy r p.b r,, r
r rprrr, rk-k, rwr rprrp rr p.
gd nx, Cha, Jbs & PspeyCucl, Speech oa
Ecc Su, nvebe 2012
-
7/29/2019 Ontario Canada: Emerging Strong 2013
13/49
OCC
|Mowat|Leger
NExT STEPS
Dic nd indic upp r&D uld b cdind pincilnd dl ll to meet the needs o businesses at all stages o development,including startups. The application process or supports should be simplied andthe opportunity cost o seeking assistance minimized. Companies should beallowed to leverage ederal unding to receive provincial assistance and vice versa.
Gnmn nd b cdin i ciii nd uc c lgcl inmn in oni. The province aces increasingly sti
competition or investment rom world-class companies, which are major innovationdrivers. Ontarios ministries, along with their ederal counterparts, need a transparent,coordinated, and systematic process or attracting major investments to the province.
F npnuip in clm. I we accept that cultureaccounts or at least part o the eplanation or the entrepreneurship gapwith the U.S., then we must address it via the education system. This includesbuilding entrepreneurship into high school and university curricula, not justour MBA programs. See the Ryerson University case study on page .
Mk cmmciliin p unii mnd. Ontario universities are worldleaders in R&D. The problem is that ar too little o their work gets commercialized.Previous support programs have not meaningully closed the commercializationgap. Government must make commercialization part o universities mandates.
Lg public c pcumn pu innin. As noted by the JPC,many jurisdictions use public sector procurement to drive the developmento innovative products, particularly in growing rms. Ontario should ollow suit
and implement a strategic procurement policy. This way, companies sellingto the public sector could use the public sector buyer as a reerence client todrive eport sales and gain access to nancing. Sectors such as lie sciences,manuacturing, and energy would benet rom revamped procurement.
ebli cdunding gim in oni. Crowdunding or nancial gain iscurrently not permitted under Ontario law. With the advent o theJOBS Act in the U.S.and the establishment o an American crowdunding regime, Ontario must update itslegislation and regulations in order to provide its startups and SMEs with comparable
nw ror r pp k ry -r
p prpry.
re ma, Chaa, task Fce
Cpeveess, Pducvy
ad Ecc Pess
-
7/29/2019 Ontario Canada: Emerging Strong 2013
14/49
EmergingStronger2013
levels o access to seed and venture capital. While Ontario has signalled its intention toloosen the rules restricting crowdunding, it must ollow through on that commitment.
oni buin nd in in l pducii.Perhapsmost worrying is the Ontario-U.S. Inormation and CommunicationsTechnology (ITC) investment gap, which currently stands at percent.
opn up public d. The provincial government and municipalities sit on a treasuretrove o data that could be repurposed by entrepreneurs and technology rms tocreate valuable sotware applications and other innovations or commercial purposes.
As o January , the Ontario governments open data portal holds just data sets.
all cllg pl bigg l in diing innin. Collegesare key players in the commercialization process. They must be giventhe reedom to allocate their eisting unds and resources, specicallyaculty, in a manner that responds to local innovation imperatives.
Imp npnc in gulin. Ontario is one o the ewjurisdictions in the world that does not publish the rationale or, and the
cost-benet analyses o regulations. The only requirement is to publishthe content o regulations. Public servants need incentives to consultinternal and eternal stakeholders and get it right the rst time.
add cumuli gul budn n buin. Thegovernment should introduce an ongoing process or monitoring theweb o rules that builds upon the burden reduction eercise led by Openor Business rom to . The cumulative regulatory burden onbusiness should be reduced to improve Ontarios business climate.
oni uld puu implid x m. Ontario must ensurethat its ta system makes it the most attractive destination or businessinvestment and development in the OECD. Corporate taation reorms mustimprove both the eciency and eectiveness o corporate taation.
oni uld cninu pu cmmn scuii rgul. Canadais the worlds only major industrialized country without a single securitiesregulator. A single securities regulator would increase access to capital andwould also solidiy Torontos position as a major global nancial centre.
W w r j,rr w j.
Jh ty, Cha f Cvc Ac,
oa Ecc Su, 2012
-
7/29/2019 Ontario Canada: Emerging Strong 2013
15/49
OCC
|Mowat|Leger
13
University o TorontosBanting and Best Centre
or Innovation andEntrepreneurship
CoMMerCIaLIzING researCh
The problem: Too many proessors and students have to leave the innovation
ecosystem (the environment in which the discovery was made) to commercialize
their inventions, thereby losing access to students, academics, and laboratories.
A solution: Using surplus space, the University o Toronto created the Banting
and Best Centre or Innovation and Entrepreneurship to develop early-stage
enterprises and spin-of companies to commercialize academic discoveries.
Tenants pay market rents but benet rom in-house cross-pollination in marketingand business know-how while maintaining access to nearby labs and students.
The results to date: Companies inside the thriving Banting and Best Centre or
Innovation and Entrepreneurship have created 79 jobs (all private sector) and
have raised a total o $22.8 million in private and public sector investments.
CasestU
Dy
-
7/29/2019 Ontario Canada: Emerging Strong 2013
16/49
EmergingStronger2013
Ryerson Universitys
Entrepreneurial Zone
CreatING a CULtUre oF eNtrePreNeUrshIP
The problem: Too many students are leaving university without business acumenand the knowledge to start a business and/or commercialize their innovative ideas.Ontario rms consistently cite a lack o business and real-world skills as asignicant impediment to growth.
A solution: Ryerson University uses an entrepreneurial zone model in elds inwhich it is already an established educational leader. Within the net two years,
Ryerson plans to add entrepreneurial zones in elds such as: Aerospace, Design,Health, and Social Entrepreneurship. The aim is to have percent o all Ryersonstudents involved in the development o a company, product, or service by thetime they graduate.
The results to date: Since Ryersons highly successul Digital Media Zone opened inApril , cutting-edge startups have been incubated and accelerated and jobs have been created through startups and market-driven research. We canepect similar results rom uture entrepreneurial zones.
CasestU
Dy
-
7/29/2019 Ontario Canada: Emerging Strong 2013
17/49
EmergingStronger2013
16
OCC
|Mowat|Leger
15
2. building a
21st century
workForcethrough
workplace
training, utilizing
newcomers skills,
& apprenticeship
reForm
Ontario sufers rom a paradoxicalchallenge. Rates o unemployment andunderemployment are high. At the sametime, Ontario aces massive labour and skillsshortages in key sectors. The ConerenceBoard o Canada predicts that i unaddressed,Ontarios skills gap could reach 560,000 by2030 (Conerence Board o Canada, 2007).
The mismatch between supply and demandcontinues to be a signicant barrier toOntarios economic transormation.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
18/49
OCC
|Mowat|Leger
PROGRESS
Reorming Canadas Employment Insurance (EI) system was identied as a priorityin last years Emerging Strongeragenda. The Mowat Centre has been a leading voicein the campaign to remove barriers to labour market retraining or underemployedCanadians. As recommended by the Mowat Centre EI Task Force, the ederalgovernment has eliminated the so-called Best Weeks pilot project, whichcaused premiums on Ontario workers and businesses to be unnecessarily high whileproviding Ontarians with lower EI benets than workers elsewhere in Canada.
Ontarios Epert Roundtable on Immigration identied a path orwardor the provinces immigration system, emphasizing the need orOntario to use the system to plug skills gaps in its labour orce.
The ederal government is moving ahead with an Epression o Interest (EOI)model and is in the process o allocating provincial quotas or skilled labour. An EOImodel is designed to better connect immigrants with employment opportunitiesand plug labour market gaps. Ontario, along with other provinces, has epressedsupport or the ederal governments EOI concept and has asked the ederal
government to work with the province in the design o the new approach.
The ederal government has also epanded the Canadian Eperience Class (CEC)program, which acilitates the transition rom temporary to permanent residenceor those with high-skilled eperience in Canada, including international studentsand temporary oreign workers. Admissions under the CEC have increasedrom about , people in to more than , in . In , the ederalgovernment will accept up to , permanent residents through the program.
The province has renewed the Second Career retraining programsmandate or -, to the tune o $ million. This will serve ,workers. Second Career has beneted , workers to date.
PULse CheCKWhat do you think about the
direction Ontario is takingwhen it comes to building
a st century workorcethrough workplace training,utilizing newcomers skills,
and apprenticeship reorm?
Dont Know7.8%
Right Direction41.4%No Change37.1%
Wrong Direction13.8%
-
7/29/2019 Ontario Canada: Emerging Strong 2013
19/49
EmergingStronger2013
CHALLENGES
Our Ontario Business Confdence Index results on page show that percento Ontario business leaders believe the province is heading in the rightdirection in terms o building a st century workorce through workplacetraining, utilizing newcomers skills, and apprenticeship reorm.
The ederal government has implemented changes to the EI program that will addresssome o its distortionary labour market incentives, but structural inequities continue.Overall, the program remains a barrier to building a st century workorce in Ontario.
The single largest pool o unding or worker training in Canada is linkedto the EI program. Because Ontario has a comparatively low percentageo EI-eligible workers, the province is signicantly short-changed onederal training dollars, to the tune o almost $ million a year.
The number o economic immigrants to the provincethose selected on the basiso their skills or employment prospectshas declined severely over the last decade,rom , in to , in . Ontario employers are very concerned.
As the nal report by the Commission on the Reorm o Ontarios Public Services(also known as the Drummond Commission) noted, employment and trainingprograms are not strategically organized nor consistently evaluated against labour-market success actors, clear targets or perormance measures linked to outcomes.The return on tapayer investment in training is not adequately transparent.
More than hal o on-reserve First Nations between the ages o - havenot nished high school, compared with only percent o Canadas overall
population in that age group. The employment rate or Aboriginal peoples is .percent, well below the employment rate or the non-Aboriginal population.
Aboriginal youth are Canadas astest-growing demographic, growing percent between and . An estimated , Aboriginalyouth will reach working age between and .
About . million people in Ontario, or . percent o the population, live with adisability. The unemployment rate among people with disabilities with post-secondaryeducation is to percentage points higher than the national average. Evidencesuggests that employer misperceptions are a major reason or this discrepancy.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
20/49
OCC
|Mowat|Leger
NExT STEPS
t dl gnmn uld implmn cmmndin M Cn eI tk Fc, including reorms to eliminate the regionaldiscrepancies in coverage and to delink training unding rom EI and insteadund training through general revenue. This would make available signicantnew unds in Ontario or training workers who are currently not on EI,whether they are under-employed, looking to enhance their skills, concernedabout the uture o their sector, or have been out o the labour market.
Implmn cmmndin oni exp rundbl nImmigin. To ll its skills gaps and increase its human capital, at a minimumOntario needs to boost its level o immigration to , people per year (theequivalent o percent o its population), a signicant increase rom the ,immigrants Ontario received in . Sity-ve to seventy percent o these immigrantsshould be economic class immigrants, an increase o - percent rom current levels.The ocus o immigration policy should be on building the provinces human capital.
Buin nd k b dng xiing ppunii,uc
Pincil Nmin Pgm, in glbl ln. Theyshould also develop eplicit strategies, such as Kitchener-Waterloos ImmigrationPartnership Council, aimed at integrating immigrants and reugees into the workplaceand taking better advantage o credentials and eperience gained internationally.
oni nd dl gnmn uld cllb in dign ndimplmnin n expin In eoI immigin mdl. An EOImodel would allow employers to select rom a pool o pre-screened immigrationapplications. This is a promising opportunity to enhance the feibility, responsiveness,
and speed o economic immigration to Canada, with the potential to ocuson top talent and human capital. By collaborating in the design o the EOI, theOntario government will have greater infuence on the selection o immigrants.
oni uniii nd cllg uld xpnd cuimn iniiiimd inninl udn. Furthermore, post-secondary institutionsshould promote the Canadian Eperience Class program to all oreign studentswithout a job oer to transition to permanent resident status. This may requiremore on-campus settlement and integration services or international students.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
21/49
EmergingStronger2013
oni buin mu cpili n unppd pnil oni abiginl ppulin. The Aboriginal population is the astestgrowing in Canada. Businesses can engage aboriginal students through workplacements and co-op programs. See Imperial Oil Case Study on page .
t dl gnmn mu cl unding gp n abiginlducin. It is generally accepted that ederal unding or Aboriginal educationalls signicantly short o parity with provincial education spending on a per-studentbasis. Creating a leading-edge workorce requires the ull participation o Aboriginalpeoples in the labour market. Full participation is contingent on providing opportunity
through adequately unded, outcomes-ocused, and culturally appropriate education.
oni nd inn i mplmn nd ining ic. Ontarioshould invite competition and greater employer participation into employmentand training services. Private sector and not-or-prot participation in trainingsupports should be commissioned on a payment by results basis.
empl nd cgni pnil ppl i dibilii.The OCC and its members will work together to leverage the strong
potential o this group and actively combat negative perceptions.
oni ppnicip m nd bcm m fxibl.Ontarios skills gap can be narrowed by reorming the provincesoutdated journeyperson to apprenticeship ratios. By bringing the ratioacross all trades as close to : as soon as easible, Ontario will join themajority o Canadian provinces that have already taken this step.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
22/49
OCC
|Mowat|Leger
The SEED program wascreated by Imperial Oiland Si Nations o theGrand River Territory
taPPING INto the PoteNtIaL oF oNtarIos
aBorIGINaL PeoPLesThe problem: Employers ace increasing skills shortages in key sectors. Yet OntariosAboriginal employment rate is ar below that o the non-Aboriginal population.
A solution: Imperial Oil has shown an eagerness to tap into the potential o OntariosAboriginal peoples while closing the Aboriginal education attainment gap in theprocess. In , the Science Education and Employment Development (SEED)program was created by Imperial Oil and Si Nations o the Grand River Territory. Theagreement supports technology education and employment initiatives ocused onproviding people with skills required or careers with Imperial, the petroleum industry,and other manuacturing industries.
The results: Since , SEED has invested over $ million in education and skillstraining related initiatives, including:
the Native Diploma Access Program which allows mature students to earn eighthigh school credits towards their grade diplomawith a ocus on math and
science. Since , students have completed more than high school credits; the Bridging Our World Through Science Program, which brings students rom
grades and to Brock University or a two-day Aboriginal Outreach program.Participants learn about career options in the science elds. Post-camp surveysshow that more than hal o the students indicated this program increased theirinterest in pursuing post-secondary education.
CasestU
Dy
-
7/29/2019 Ontario Canada: Emerging Strong 2013
23/49
EmergingStronger2013
Bombardier andCentennial College
have a Memorandum o
Understanding to trainemployees andupgrade skills
BrIDGING the sKILLs GaP
The problem: Ontarios aerospace sector aces a current and growing shortall oskilled employees. As Ontarios biggest aerospace employer, Bombardier has ,employees and depends on skills upgrading in order to stay at the cutting edge olean, ecient production processes. The average employee age at BombardiersDownsview Aerospace Facility is , and Bombardier will have to replace hundredso workers in the coming years.
A solution: Direct partnerships between employers and post-secondary
institutions designed to integrate the classroom into the workplace and allowstudents to upgrade their skills in real time.
Results to date: Bombardier and Centennial College have a Memorandum oUnderstanding whereby Centennial College will train Bombardier employees in to -week programs over the net two years. A ull training curriculum has beenjointly developed. Bombardier has invested approimately $ million in an on-site Learning Centre at its Downsview acility, where the company manuacturesbusiness and commercial aircrat.
CasestU
Dy
-
7/29/2019 Ontario Canada: Emerging Strong 2013
24/49
Last year we identied sound scalstrategiesbalanced budgets, reasonabletaxation, and efcient public servicesasbeing critical to Ontarios uture prosperity.
Some progress has been made towardsreducing the provinces decit. But the needor scal and public sector reorms remains.We must continue to identiy new ways odelivering better services at less cost and seeka airer deal or Ontarians rom the ederalgovernment.
EmergingStronger2013
24
OCC
|Mowat|Leger
23
3. restoring
Fiscal balance
by improving
the way
government
works
-
7/29/2019 Ontario Canada: Emerging Strong 2013
25/49
OCC
|Mowat|Leger
PROGRESS
The Ontario Budget committed Ontario to an annual average growth inprogram spending o percent between and a signicantreduction in real-term ependiture.
Getting the provincial health care budget under control is critical to eliminating thedecit. The Ontario government is moving toward a patient-centred undingmodel in the health care system. Under this approach, hospitals and other healthacilities will be unded based on the types and volume o services and treatmentsthey deliver. This will encourage eciency in the health system.
The government has also indicated it will shit routine health procedures currentlyconducted in hospitals to non-or-prot, community-based clinics where they canbe perormed aster, at lower cost, while maintaining quality.
The ee schedule or physicians has been adjusted to refect changes in medicaltechnologies, as recommended in the Mowat Centres Shiting Gears series. Theseadjustments are epected to save tapayers $ million a year.
PULse CheCKWhat do you think about the
direction Ontario is takingwhen it comes to restoringscal balance by improvingthe way government works?
Dont Know6.6%
Right Direction26.4%
No Change32.6%
Wrong Direction34.4%
-
7/29/2019 Ontario Canada: Emerging Strong 2013
26/49
EmergingStronger2013
CHALLENGES
Ontarios decit is $. billion and its provincial debt is approaching $ billion, which isover $, per man, woman and child.
Ontarios debt to GDP ratio will hit percent in -; its debt to GDP ratio has morethan tripled since .
In April , Ontarios credit rating was downgraded by Moodys in response to arising debt burden and slow economic growth outlook. A percent increase in thecost o borrowing will crowd out another $ million in annual program spending.
The ederal transer system continues to disadvantage Canadas mostpopulous province. In spite o Ontarios scal woes, Ontarians payroughly $. billion more into the ederation than they get back.
Ontarios per capita program spending is already the lowest o any province,at $, in -, which is percent below the provincial average.
The reality is that little progress has been made this year on introducing greaterparity in ederal scal transers. The ederal government announced in December that the Equalization program will not be re-adjusted in response to Ontariosconcerns. In act, the technical changes to the program announced by theederal government are likely to cost Ontario about $ million per year.
Inrastructure is critical to Ontarios competitiveness. According to a OCCsurvey o its membership, ater decit and red tape reduction, the numberone public policy priority or business is inrastructure renewal. However, all o
Ontarios inrastructure budget will be absorbed by amortization costs by .
-
7/29/2019 Ontario Canada: Emerging Strong 2013
27/49
OCC
|Mowat|Leger
NExT STEPS
t pi nd np c uld pl bigg l in dliingpublic ic. While Ontario routinely partners with the private sector on capitalprojects, there is ample opportunity to seek new partnerships or service delivery,particularly in those areas where private and not-or-prot epertise already eists(e.g. health care, skills training, insurance, and inormation technology support).Alternative service delivery should always be considered when it can achievecost-savings without compromising the quality o the service in question.
t pi nd public c mu d i p lp oni g bck cl blnc. For businesses, this means accepting a delay in scheduledbusiness and corporate ta rate reductions and the end o certain businesssupport programs. For the broader public sector, this means recognizingthat compensation restraint is needed to control rising labour costs.
smlin public c pcumn.The Ontario government shouldconduct a lean assessment o its procurement processes, identiying elementsthan can be streamlined or eliminated to increase eciency and make it easier
or SMEs to participate. Both suppliers and government would benet romaster turnaround times and less resource-intensive procedures. This typeo review has been successully undertaken by the UKs Cabinet Oce.
Cl $. billin gp. Because o the unprincipled nature o Canadianederal scal arrangements and unding agreements, Ontarians and Ontariobusinesses are oten short-changed. The ederal government needs to reormEqualization and create a national standard or EI access, and the unding gapsin inrastructure, training, housing, and regional economic development unds.
tckl undgund cnm inc nu.The underground economymakes it hard or legitimate businesses to compete. Ontario needs tougher penaltiesor noncompliance and a stronger ocus on high-risk industries. The DrummondCommission estimates that these and other compliance measures could yield over$ million per year or the province. The Drummond Commission also notes thatmany nes valued at $ billion under the Provincial Oences Act (POA) remainuncollected. The province should take more aggressive action to collect this money.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
28/49
EmergingStronger2013
Dlp n mngmn mk. The Ontario Ministry oFinance put the value o provincial public assets at $ billion in . Public
discussion on how government should best manage its assets oten centreson the choice between public ownership and privatization. A new assetmanagement ramework should be developed that includes the ull range ooptions available or the management o public assets and looks to protectthe public interest while increasing revenues. The Mowat Centre will bereleasing a report outlining opportunities on this ront in spring .
engg onin in dicuin n p u inucu.Thegovernment simply does not have the resources to und large inrastructure projectsthrough general revenues. While engaging the private sector in partnerships canll unding gaps, major projects require additional sources o revenue. The BigMove, Ontarios transportation plan or the Greater Toronto and Hamilton Region,is an opportunity to engage all stakeholders in a dialogue on revenue tools.
Unl pi cpil public gd. Ontario and Canada have made enormousinvestments in our inrastructure throughout our history. These projects, includingthe St. Lawrence Seaway, railways, public transit, and our highway system, all created
the oundation or the prosperity and quality o lie we enjoy today. There will notbe the same volume o public unds available in the coming decade to reinvest inthe modernization o our inrastructure. However, new and established vehiclesrom bonds and Ps to leasing and concession agreementsliberate privateunds or public purposes. These must be used more requently and rigorously.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
29/49
OCC
|Mowat|Leger
INNovatIoN throUGh sPeCIaLIzatIoN
The problem: Health care costs are consuming an increasing percentage o theprovincial budget, crowding out spending in other areas.
A solution: Kensington Health is a group o not-or-prots and charities that deliversa variety o health services in Toronto. Kensington Health delivers publically undedhealth services outside o the hospital setting.
The results to date: By ocusing on a routine procedure, Kensingtons Eye Institute has
developed a specialization that has lowered cost per procedure and increased patientvolume. The Eye Institute perormed nearly , cataract surgeries in and, in while adding glaucoma surgeries, cornea transplants, and non-urgentvitreoretinal services.
By ocusing on a select ew procedures, they [Kensington Eye Institute] canserve more patients more quickly with ecellent patient outcomes.
Ontario Health Minister Deb Matthews,
Kensington Eye Institute 2011-12 Year In Review
CasestU
Dy
By ocusing on a routine
procedure, KensingtonsEye Institute hasdeveloped a specializationthat has lowered cost perprocedure and increased
patient volume
-
7/29/2019 Ontario Canada: Emerging Strong 2013
30/49
EmergingStronger2013
FoCUsING oN oUtCoMes, Not ProCess
The problem: The recent economic downturn has let governments across the globecash strapped. Yet citizens epectations with regard to services have not diminished.Governments need to nd new service delivery and back oce models that improveservice and lower overall cost.
A solution: Perormance-based contracting is emerging as a powerul solution orgovernments seeking to manage costs while enhancing service quality. In ,British Columbia selected MAxIMUS Canada to administer the provincial medical
and drug benets programs (Health Insurance BC) including the people, process,and technologies. BCs decision to use a private operator was spurred by servicechallenges and a lack o capital to invest in new technologies.
The results to date: Since , MAxIMUS has met all new service levelrequirements (or business, technology, and privacy) or Health Insurance BC. Foreample, all calls rom citizens and providers are answered within specied timerames whereas prior to handover to MAxIMUS, more than percent o callsencountered a busy signal. Furthermore, the contract requires MAxIMUS to makesignicant capital investments to replace aging technology supporting the twoprograms, investments that the province retains ownership o at the conclusion o thecontract.
CasestUDy
The opportunities
or private sectorinvolvement in Ontarioservice delivery are
numerous and etendwell beyond health
insurance
-
7/29/2019 Ontario Canada: Emerging Strong 2013
31/49
EmergingStronger2013
32
OCC
|Mowat|Leger
31
4. taking
advantage
oF new
opportunities
in the global
economy
Ontarios economic prospects have alwaysbeen tied to trade. Markets in the U.S., andparticularly Great Lakes states, remain vitallyimportant to the Ontario economy. But moremust be done to diversiy the provincesexport markets. Aside rom North America,our Ontario Business Confdence Indexrespondents identied China and India as themost important export markets.
Ontario is the destination o choice or
almost hal o new immigrants to Canada. Theprovince must leverage the links to trade andinvestment opportunities that its immigrantcommunities ofer.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
32/49
OCC
|Mowat|Leger
PROGRESS
Canada has continued to move orward with trade liberalization. Since , Canadahas concluded new ree trade agreements with nine countries: Colombia, Jordan,Panama, Peru, the European Free Trade Association (Iceland, Liechtenstein, Norwayand Switzerland), and Honduras. Canada is working towards a ree trade agreementwith the European Union and is seeking membership in the Trans-Pacic Partnership.
Progress has also been made in Canada-U.S. economic relations. The RegulatoryCooperation Council is working to harmonize cross-border regulation,which is good news or southern Ontarios Great Lakes trade corridor.
The construction o the Detroit River International Crossing (DRIC) hasbeen approved and it appears the major obstacles to its construction havebeen cleared. The DRIC will help Ontario accommodate the epecteddoubling o Canada-U.S. trade fows over the net years.
The Mowat Centre has begun a research project that will develop policyrecommendations or tapping into the huge economic potential o Ontarios
diversity. The province has etensive diaspora networks that connect it to worldmarkets and, most importantly, emerging economies like China and India.
The Ontario government is acting on a JPC recommendation and establishingnew Global Eporter Forums. The Global Eporter Forums should help Ontariobusinesses epand into international markets. The orums are designed toincrease eport activity among Ontario businesses by building awarenesso opportunities in emerging markets. The rst Global Eporter Forum willhighlight the Asia Pacic region, including markets in China and India.
PULse CheCKWhat do you think about the
direction Ontario is takingwhen it comes to taking
advantage o new opportunitiesin the global economy?
Dont Know12%
Right Direction33.3%
No Change41.5%
Wrong Direction13.2%
-
7/29/2019 Ontario Canada: Emerging Strong 2013
33/49
EmergingStronger2013
CHALLENGES
Ontario businesses view China and the Great Lakes states as themost critical markets in the net - years. Fity-one percent oOntario Business Confdence Index respondents identiy Great Lakesstates as the most important while percent chose China.
In spite o the importance Ontario businesses attribute to trade diversication,Ontarios eports are ar rom diverse. Close to percent o Ontarioseports are destined or the U.S. Less than percent are bound or India(. percent) and China (. percent). Compare that to Michigan, whose
eports to China now make up . percent o their total eports.
Ontario has robust networks o immigrants with ties to emerging economies.Between and , . percent o all landed immigrants to Ontario camerom India, with a urther . percent arriving rom China. The province has yet totake advantage o the unique trade opportunities that these networks provide.
Ontario businesses are simply not suciently engaged in trade. According to
the JPC, only percent o Ontario SMEs are engaged in eport activities. Theaverage value o Ontario SMEs eports ranks below that o o U.S. states.
Ontarios transportation network is a major part o the provinces inrastructureand a signicant enabler o trade and economic investment. However,the transportation network is badly in need o upgrading. Congestionin the Greater Toronto and Hamilton Area alone costs an estimated$ billion a year. Renewing Ontarios transportation network is critical iOntario is to improve its competitiveness in the decades to come.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
34/49
The oCC Glbl GFund can serve as a modelor collaboration betweenthe government and anot-or-prot organization.The Fund has helped over businesses access eportmarkets and collectively
these companies havereported eport sales inecess o $ million.
oni smll Buinenpi Cn shouldbe twinned with their U.S.counterparts in key citiesin the Great Lakes Region.
We need to nd new wayso lowering the inormationand search costs or OntarioSMEs wishing to eport tothe U.S. Both the Ontarioand U.S. ederal governmentsoer assistance to SMEsthrough a network o localsmall business centres.
Cross-border partnershipsbetween these centresshould help boost theproportion o Ontario SMEsinvolved in eport activities.
OCC
|Mowat|Leger
NExT STEPS
oni nd dlp n xp g g cud n sMe.Fewer than in SMEs eport. Programs that connect SMEs to new marketsshould be epanded when value or money can be demonstrated.
C nind cc pin buin king xp inc.SMEs ace high search costs associated with obtaining inormation and access toeport programs, nancing, and intermediaries abroad. Government and serviceproviders across the spectrum will benet rom a one-window approach that poolsresources and supports, enhancing the nancial viability o eporting or SMEs.
oni mu dii i d nd lg i dip cnncin mging mk. The Mowat Centres ongoing research on diaspora networkswill identiy specic policy tools that the province can use to leverage its immigrantcommunities ties to global markets. The Ontario Chamber Network is wellpositioned to play a leading role in connecting businesses both here and abroad.
rm inpincil d bi. Ontarios ability to trade with its provincialcousins is hindered by comple regulatory obstacles. Provinces should continueprogress on eliminating inter-provincial trade barriers as a means o diversiying theirtrade partners.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
35/49
EmergingStronger2013
Ontarios agri-ood
industry contributes $billion to the Ontario
economy and employsroughly , people
oNtarIos aGrI-FooD INDUstry: reaDyto resPoND to GrowING GLoBaL FooD
DeMaNDThe potential: Few Ontarians realize the undamental role that the agri-oodindustry plays in the provinces economy. Ontarios agri-ood industry contributes$ billion to the Ontario economy and employs , people (Ministry oAgriculture, Food, and Rural Aairs, ), roughly percent o total Ontarioemployment. Ontarios agri-ood eports are worth $ billion a year.
A plan: Strategic reorms to the regulatory regime governing the agri-ood sector
will help the sector thrive and capitalize on the growing global need or qualityood. Reorms to environmental, Workplace Saety and Insurance Board, andlabour regulations should be initial priorities. An eport diversication strategy isalso needed; nearly percent o Ontarios agri-ood eports are bound or theU.S., while less than percent are destined or Asian markets (ecluding Japan).
The potential results: A booming agri-ood sector, aided by an epected doublingo global ood demand over the net years, could generate incredibleeconomic benets or the province. Doubled arm output would generate an
additional $. billion in annual eports.
Case
stUDy
-
7/29/2019 Ontario Canada: Emerging Strong 2013
36/49
EmergingStronger2013
38
OCC
|Mowat|Leger
37
Ontario is undergoing an economic transition.While businesses are slowly recovering from
the economic downturn, many old industriescontinue to struggle.Our future prosperity depends on our abilityto identify and leverage the provincescompetitive advantages in the provision ofgoods and services to global markets.These advantagesincluding fresh water,healthy food, and natural resourcesarefound in abundance in Ontario. It is crucial
that we make the right investments andimplement the right regulatory frameworksthat will allow us to meet the needs of agrowing global market.
5. identiFying,
championing, &
strategically
investing in our
competitive
advantages in theglobal economy
-
7/29/2019 Ontario Canada: Emerging Strong 2013
37/49
OCC
|Mowat|Leger
PROGRESS
Ontarios manuacturing sector is beginning to recover rom the eects o theeconomic downturn. Between and there was a net gain o , jobs.According to our Ontario Business Confdence Index, a majority ( percent) oleaders in the sector epect to epand their operations over the net ve years.
The Mowat Centre is spearheading the launch o the Council o the GreatLakes Region (CGLR) in April . This member-based organizationwill acilitate greater collaboration across borders and sectors within theGreat Lakes Region. It should help ensure that lawmakers and business
on the U.S. side o the border better appreciate how important Ontarioseconomic uture is to American communities in the Great Lakes Region.
Ontarios Ring o Fire represents an unparalleled economic opportunity.Over $ billion worth o new capital investments in the mining sectorwere announced in , including a new chromite smelter in Sudbury.Proposed Ring o Fire mine developments are epected to create morethan , permanent jobs and develop key processing and transportationinrastructure. The new transportation inrastructure required to serve themine will provide year round access to otherwise isolated communities.
Many o the sectors most important to the global economy, includingnancial services, health care, lie sciences, ood processing, assetmanagement, energy, mining and natural resources, and ICT, are growingin Ontario and leading rms are becoming globally important.
Ontario accounts or around hal o Canadas ICT employment (approimately
, jobs). The province-backed Communitech hub in Waterloohas supported the creation o companies and hundreds o jobssince . Our Ontario Business Confdence Index o business leaders inthe ICT sector shows that percent epect to epand their operationsover the net ve years. See page or a breakdown by sector.
PULse CheCKWhat do you think aboutthe direction Ontario istaking when it comes toidentiying, championing
and strategically investing inour competitive advantages
in the global economy?
Dont Know11.9
Right Direction30.2%
No Change42.2%
Wrong Direction15.6%
-
7/29/2019 Ontario Canada: Emerging Strong 2013
38/49
EmergingStronger2013
CHALLENGES
The Great Lakes Region needs stronger strategic direction that includesenhanced collaboration between governments in both Canada and the U.S.,as well as between sectors and industries. This will help promote regionaleconomic growth and improve the management o shared resources.
Ontario has lost , manuacturing jobs in the last ve years. The manuacturingsector remains undamentally important to the Canadian economy. It accounts or percent o the national GDP, $. billion in weekly average salaries, and percent oCanadas eports. Nearly hal o Canadas manuacturing industry is located in Ontario.
Key parts o the provinces manuacturing sector is struggling to adaptto new economic realities. Ontarios businesses are not spendingenough on the physical capital that drives productivity.
Ontario is still years away rom realizing the ull economic benets o the Ringo Fire. Insucient inrastructure remains a key barrier to its development.The area around the Ring o Fire is remote and lacks key components oresource development such as airports, rail access, and all-weather roads.
Sustainable development o Ontarios natural resources requires meaninguldialogue, engagement, and consensus on the distribution o the benets betweenits non-Aboriginal and Aboriginal population. There is much work to be done.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
39/49
OCC
|Mowat|Leger
NExT STEPS
The ederal government and the province need to dlp cn bjci nd plici ili Cnd mnucuing c. Aederal-provincial strategy must refect the needs o industry and should aim tomaintain and promote Ontarios global competitiveness in manuacturing.
Dpl buin upp gicll. Business supports with high returnson investment should be maintained or epanded. As a rst step, the Ontariogovernment must measure the return on investments o its myriad o businesssupport programs. As recommended by the JPC, business supports should
be centralized and delivered by a single ministry. We urge an additionalstepcoordinate ederal-provincial business supports to create a trueone-window access point or businesses seeking government supports.
FdD oni uld b md pmnn nd b dqul undd.The ederal governments regional economic development und orsouthern Ontario, FedDev Ontario, should be given long-term unding.
Mk dlpmn ring Fi pii. Governments must worktogether to address inrastructure, transportation, processing, electricity pricingand availability, and Aboriginal education and labour market access. Leadershipby senior ocials at all levels o government is vital to acilitating timely progressin the development o the Ring o Fire. Costs need to be shared between ederal,provincial, and municipal governments and their private sector partners. All types opartnerships (e.g. public-private partnerships) and nancing (e.g. bond issuances)must be pursued i we are to ully realize the benets o the Ring o Fire.
abiginl, gnmn nd indu ld mu ccl dilgund im build cnuci pnip to ensure that all benetrom the sustainable development o Ontarios natural resources, includingthe Ring o Fire. Government, not businesses, must lead the negotiationswith First Nations to establish a ramework or partnerships.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
40/49
EmergingStronger2013
ebli cdind ppc ng cnlg inmn.Canadas current approach is ragmented and piecemeal. Canada needs a
national energy policy that encourages long-term unding or R&D, inrastructureinvestments, and a stable policy ramework or energy development. Theprovincial and ederal governments should set long-term targets to ensureeective R&D. The Ontario Ministry o Energy should take a broad view oenergy to encourage more cost eective, integrated energy solutions.
t pi c mu cllb in d ull lg onicmpii dng. The OCC will work to bring together industryleaders with epertise in strategic sectors, and SMEs who are looking
to capitalize on new business opportunities. The OCC will leverage itsnetwork o local Chambers to play a leadership role in building thecapacity o SMEs in sectors such as ICT, energy, and environment.
Lg oni innin dng. Ontario has a vibrant innovationecosystem, nurtured in part by its innovation hubs like Communitech andMaRS. Ontarios lie science sector in particular, contributes to Ontariosinnovation advantage. A PwC study ound that together, Ontario andQuebecs lie sciences sectors employ nearly , people in over, companies. In order to spur growth in that and other innovativesectors, Ontario needs to increase access to venture capital and rewardinnovative companies through its public sector procurement system.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
41/49
OCC
|Mowat|Leger
INvestING IN oNtarIos CoMPetItIveaDvaNtaGes (the 3 M)
Music
The potential: Ontarios music cluster is ripe or growth. Over percent o theeconomic activity o the sound recording industry in Canada takes place inOntario. Total revenues or the Ontario sound recording industry totaled $million in . Live music urther adds hundreds o millions o dollars in economicactivity.
A plan: Ontario has not yet ully capitalized on the strategic advantage it enjoys in
the global music industry. Targeted provincial support is needed.
The potential results: According to an independent analysis, strategic provincialsupports or Ontarios sound recording industry could generate , new jobs andalmost $ million in new economic output. The province could urther leveragemusic to attract tourists rom around the world.
Our sound recordingindustry could
generate, new jobs
Mining
The potential: The Ring o Fire is one o the most promisingmining opportunities in a generation. It oers signicanteconomic development opportunities or communitiesacross Ontario, and or Aboriginal communities inparticular.
A plan: The area around the Ring o Fire, Ontarios once-in-a-generation mining opportunity, is remote, and lacksthe key inrastructure. Massive investment is needed in
electricity transmission, broadband, and all-weather roads.Addressing crumbling on-reserve inrastructure is anecessity as well.
The potential results: The Ring o Fire has an epectedvalue o about $ billion in minerals and its developmentwill create thousands o jobs in Northern Ontario.
The Ring o Fire has an epectedvalue o about $ billion
CasestUDy
-
7/29/2019 Ontario Canada: Emerging Strong 2013
42/49
EmergingStronger2013
Manufacturing
The potential: Although Ontario has lost , manuacturing jobs over the last years, its manuacturing sector is on the rebound. In , the sector created ,
new jobs. The sector is vital to the Canadian economy: manuacturing is responsibleor three-quarters o all private sector research and provides percent o the tarevenues paid by businesses to all levels o government in Canada.
A plan: Canadian manuacturers have identied ve priority action items or publicpolicy: ensuring eective government programs and taation; increasing the sizeand skills o the labour pool; strengthening economic integration with the U.S.;supporting market diversication; and easing the regulatory burden. Theconstruction o the Detroit River International Crossing is also a priority. None othese priority items recognize jurisdictional divides. Governments o all levels willneed to coordinate their eorts to revitalize the manuacturing industry.
The potential results: A manuacturing sector ring on all cylinders is vital toOntarios economy. The sectors value is broadthe manuacturing sectorgenerates $. in economic spin-os or every $. in manuacturing output. Avibrant manuacturing sector has the potential to drive innovation andproductivity growth, and boost trade.
Manuacturing is
responsible or three-quarters o all privatesector research in
Canada
-
7/29/2019 Ontario Canada: Emerging Strong 2013
43/49
OCC
|Mowat|Leger
conclusionIn , we set out a transormative agenda or Ontario designed to ensure theprovinces continued prosperity. The agenda outlined ve priorities or Ontario:ostering a culture o innovation; assembling a st century workorce; putting publicnances on a scally sustainable path; diversiying eport markets; and identiying andleveraging new and eisting competitive advantages.
Considerable progress has been made over the past months. Business investment ison the rise. Manuacturing jobs are returning to Ontario. Business, government, and
civic leaders are increasingly singing rom the same song book. The nal report o theprovinces JPC is representative o this coalescence o ideas: it outlinescomplementary objectives to those ound in Emerging Stronger 2012.
But there is still much more to do. The global economic downturn continues to have aproound eect on the province. Unemployment levels remain high, Ontario has lostthousands o manuacturing jobs, and the provinces debt burden is growing.
For Ontario to prosper we must continue to take tangible steps towards advancing theEmerging Strongeragenda.
Ontarians should never lose sight o the act that in spite o our challenges we remainthe envy o the worldand or good reason. Ontario has the highest level o post-secondary credential attainment in the OECD. Its ta environment is dramaticallyimproved. Its manuacturing sector is rebounding. Its Ring o Fire is touted as the mostpromising mining opportunity or Canada in a generation.
More importantly, Ontarios streets are sae, its air and water are clean, and its standardo living is among the highest in the world.
It is vital that all Ontarians understand the tremendous advantages we possess and theshared role we must all play in transorming the provinces economy.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
44/49
EmergingStronger2013
This report has laid out Ontarios advantages, its weaknesses, and the steps thatOntarians must take collectively to ensure uture sustained prosperity.
Over the net year, the OCC, its network o local chambers and their ,members, the Mowat Centre, and Leger Marketing will take action to support thesenet steps. We invite government, business, civic leaders, and all Ontarians to join us.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
45/49
OCC
|Mowat|Leger
summaRY o RecommendationsFing culu innin ndm ikking ind bcm pducii ld
. Direct and indirect supports or R&D should be coordinated at the provincialand ederal levels.
. Governments need to better coordinate their activities and resources to attractlarge-scale investments in Ontario.
. Foster entrepreneurship in the classroom.
. Make commercialization part o university mandates.
. Leverage public sector procurement to spur innovation.. Establish a crowdunding regime in Ontario.
. Ontario businesses need to invest in the levers o productivity.
. Open up public data.
. Allow colleges to play a bigger role in driving innovation.
. Improve transparency in regulation.
. Address the cumulative regulatory burden on businesses.. Ontario should pursue a simplied ta system.
. Ontario should continue to push or a common Securities Regulator.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
46/49
EmergingStronger2013
Building
cnu kc
ug kplcining, uiliingncm kill,nd ppnicipm
. The ederal government should implement the recommendations o theMowat Centre EI Task Force.
. Implement the recommendations o Ontarios Epert Roundtable onImmigration.
. Businesses need to take better advantage o eisting opportunities, such as theProvincial Nominee Program, to win the global war or talent.
. Ontario and the ederal government should collaborate in the design andimplementation o an Epression o Interest (EOI) immigration model.
. Ontarios universities and colleges should epand recruitment initiatives aimedat international students.
. Ontario businesses must capitalize on the untapped potential o OntariosAboriginal population.
. The ederal government must close the unding gap or on-reserve Aboriginaleducation.
. Ontario needs to reinvent its employment and training services.
. Employers need to recognize the potential o people with disabilities.
. Ontarios apprenticeship system needs to become more feible.
ring clblnc bimping gnmn k
. The private and not-or-prot sectors should play a bigger role in deliveringpublic services.
. The private and public sectors must do their part to help Ontario get back toscal balance.
. Streamline public sector procurement.
. Close the $. billion gap.
. Tackle the underground economy to increase revenue.
. Develop an asset management ramework.
. Engage Ontarians in a discussion on how we pay or our inrastructure.
. Unleash private capital or public good.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
47/49
OCC
|Mowat|Leger
tking dng n ppunii in glbl cnm
. Ontario needs to develop an eport growth strategy ocused on SMEs.
. Create a one-window access point or businesses seeking eport assistance.
. Ontario must diversiy its trade and leverage its diaspora connections toemerging markets.
. Remove inter-provincial trade barriers.
Idniing,cmpining, ndgicll iningin u cmpiidng in glbl cnm.
. Develop a coherent set o objectives and policies to revitalize Canadasmanuacturing sector.
. Deploy business supports strategically.
. FedDev Ontario should be made permanent and be adequately unded.
. Make the development o the Ring o Fire a priority.
. Aboriginal, government and industry leaders must accelerate dialogue and aimto build constructive partnerships.
. Establish a coordinated approach to energy technology investments.
. The private sector must collaborate in order to ully leverage Ontarioscompetitive advantages.
. Leverage Ontarios innovation advantage.
-
7/29/2019 Ontario Canada: Emerging Strong 2013
48/49
EmergingStronger2013
acKnoWledgementsSincere thanks to business, government and civic leaders, local chambers andtheir , members, and participants o the Ontario Economic Summit who lenttheir voice to the shaping o this economic vision or Ontario, Emerging Stronger2013.
occ.on.ca | @OntarioCoClegermarketing.com | @legerweb
mowatcentre.ca | @mowatcentre
PHOTO ACKNOWLEDGEMENTS
Page 7, 8, 14 Ryerson University
Page 22 Bombardier
Page 31, 32 Greater Toronto Airport Authority
Page 37, 38 NASA
Page 43 FALLS recording session - Studio A Revolution Recording
Photo Credit Joe Dunphy /Music Canada
Page 43 HLS Hard-Line Solutions Inc.
Page 44 Alcohol Countermeasure Systems Corp.
WE HOPE THAT
-
7/29/2019 Ontario Canada: Emerging Strong 2013
49/49
WE HOPE THAT
YOU WILL JOINUS IN MOVING
THIS AGENDA FORWARD
SO THAT ONTARIOCAN EMERGE STRONGER,MORE PRODUCTIVE,
AND MORE GLOBALLYCONNECTED.