Securing Tomorrow’s ProsperityUniversity of Calgary – Faculty of Engineering

Planning Workshop

May 10, 2005

Rick Sloan

Assistant Deputy MinisterIndustry and Regional Development Division

Alberta Economic Development

Securing Tomorrow’s ProsperityUniversity of Calgary – Faculty of Engineering

Planning Workshop

May 10, 2005

Rick Sloan

Assistant Deputy MinisterIndustry and Regional Development Division

Alberta Economic Development

Securing Tomorrow’s Prosperity Securing Tomorrow’s Prosperity

• Outlines a strategy for keeping Alberta’s economic base strong, competitive, sustainable and driven by knowledge and innovation.

• It is the economic pillar of government's strategic plan for the next 20 years."

• Outlines a strategy for keeping Alberta’s economic base strong, competitive, sustainable and driven by knowledge and innovation.

• It is the economic pillar of government's strategic plan for the next 20 years."

Changing Economic ConditionsChanging Economic Conditions

• World trade is moving from commodities to value added manufacturing and services.

• Alberta’s energy development is shifting from conventional to non-conventional resources.

• Global economics are shifting from industrial models to knowledge-based models

• World trade is moving from commodities to value added manufacturing and services.

• Alberta’s energy development is shifting from conventional to non-conventional resources.

• Global economics are shifting from industrial models to knowledge-based models

Time to Act is NowTime to Act is Now

• Global competition is intensifying. Other jurisdictions are not standing still.

• Alberta’s economy is strong

• Debt free

• Long-term economic strategy.

• Global competition is intensifying. Other jurisdictions are not standing still.

• Alberta’s economy is strong

• Debt free

• Long-term economic strategy.

Economy Has Performed WellEconomy Has Performed Well

0 50 100 150 200

Capital Intensity

UnemploymentRate

ManufacturingOutput Growth

EmploymentGrowth

GDP per capitagrowth

GDP per capita

Although Alberta’s economy has performed relatively well …Although Alberta’s economy has performed relatively well …

Better than AverageBelow Average

Jurisdiction Average =100

Goal: A Value-Added EconomyGoal: A Value-Added Economy

Progressively adding more value through resource upgrading, reprocessing, manufacturing or adding knowledge to adopt and commercialize new products, services and technologies.

Progressively adding more value through resource upgrading, reprocessing, manufacturing or adding knowledge to adopt and commercialize new products, services and technologies.

STP 4 Strategic DirectionsSTP 4 Strategic Directions

1. Enhance current competitive advantages

2. Improve and strengthen innovation

3. Grow and strengthen Alberta small and medium-sized companies (SMEs)

4. Focus on priority sectors

1. Enhance current competitive advantages

2. Improve and strengthen innovation

3. Grow and strengthen Alberta small and medium-sized companies (SMEs)

4. Focus on priority sectors

Enhance Competitive AdvantagesEnhance Competitive Advantages

Knowledge Ready Workforce

• Improve ability to educate, develop, attract and retain high knowledge workers and researchers

• Focus education/labour training on value-added needs

• Support recommendations in the Prepared for Growth Strategy.

Knowledge Ready Workforce

• Improve ability to educate, develop, attract and retain high knowledge workers and researchers

• Focus education/labour training on value-added needs

• Support recommendations in the Prepared for Growth Strategy.

Enhance Competitive AdvantagesEnhance Competitive Advantages

Competitive Business Climate

• Align tax strategies to support value added

• Minimize red-tape

• Attract investment

• Improve access to equity capital

Competitive Business Climate

• Align tax strategies to support value added

• Minimize red-tape

• Attract investment

• Improve access to equity capital

Enhance Competitive AdvantagesEnhance Competitive Advantages

Investment in Infrastructure

• Ensure that institutional facilities support objectives of strategy.

• Integrate transportation system

• Improve connectivity by supporting SuperNet

Investment in Infrastructure

• Ensure that institutional facilities support objectives of strategy.

• Integrate transportation system

• Improve connectivity by supporting SuperNet

Strategy 1: InitiativesStrategy 1: Initiatives

Enhance Current Competitive Advantages• Central Alberta Economic Partnership

Labour Force Strategy• Industry/Gov’t Hydrocarbon Upgrading

Taskforce• ACR Technology Roadmap• AB Budget (April 2005) $9.2 billion in Capital

Projects ($2.7 billion for health, schools and post secondary facilities)

Enhance Current Competitive Advantages• Central Alberta Economic Partnership

Labour Force Strategy• Industry/Gov’t Hydrocarbon Upgrading

Taskforce• ACR Technology Roadmap• AB Budget (April 2005) $9.2 billion in Capital

Projects ($2.7 billion for health, schools and post secondary facilities)

Improve/Strengthen InnovationImprove/Strengthen Innovation

• Develop a province-wide culture of innovation

• Increase the rate and amount of technology adoption, diffusion, and technology commercialization

• Focus and coordinate Alberta’s research investments

• Increase business investment in R&D

• Develop a province-wide culture of innovation

• Increase the rate and amount of technology adoption, diffusion, and technology commercialization

• Focus and coordinate Alberta’s research investments

• Increase business investment in R&D

ProfitProfit

ReinvestmentReinvestment

Discovery Discovery ResearchResearch

Applied Applied ResearchResearch

Technology Technology Adoption & Adoption &

CommercializationCommercialization

New & Improved New & Improved Products/Processes/ Products/Processes/

ServicesServices

Marketing Products, Marketing Products, Processes/ServicesProcesses/Services

Business Innovation ModelBusiness Innovation Model

Strategy 2: InitiativesStrategy 2: Initiatives

Improve/Strengthen Innovation

• Innovative Energy Technologies Program

• EnergyINet

• IBM Centre for Advanced Studies

• Carbon Dioxide Management Innovation Program

Improve/Strengthen Innovation

• Innovative Energy Technologies Program

• EnergyINet

• IBM Centre for Advanced Studies

• Carbon Dioxide Management Innovation Program

Grow & Strengthen SMEsGrow & Strengthen SMEs

• Management capacity

• Mentoring

• Networks and supply chains

• Market and export intelligence and development

• Management capacity

• Mentoring

• Networks and supply chains

• Market and export intelligence and development

Strategy 3: InitiativesStrategy 3: Initiatives

Grow & Strengthen SMEs• Canadian Manufacturers and Exporters

(CME) Lean Consortia• Agrivalue Processing Business

Incubator• NAIT/SAIT Microsoft Business

Solutions Centre• Bio-Technology Business Development

Centre (proposed)

Grow & Strengthen SMEs• Canadian Manufacturers and Exporters

(CME) Lean Consortia• Agrivalue Processing Business

Incubator• NAIT/SAIT Microsoft Business

Solutions Centre• Bio-Technology Business Development

Centre (proposed)

Focus on Priority SectorsFocus on Priority Sectors

• Energy Technologies and Services• Value-added Energy Products• Agri-food• Building/Wood products• Tourism• Information and Communication Technology • Health and Bio industries• Environmental Technologies and Services

• Energy Technologies and Services• Value-added Energy Products• Agri-food• Building/Wood products• Tourism• Information and Communication Technology • Health and Bio industries• Environmental Technologies and Services

Focus on Priority SectorsFocus on Priority Sectors

13.7

159.8

4.3

5

100.3 2

Energy Technology and servicesValue-added energy productsAgri-foodBuilding products and value-added woodTourismICTHealth and Bio industriesEnvironmental technologies

13.7

159.8

4.3

5

100.3 2

Energy Technology and servicesValue-added energy productsAgri-foodBuilding products and value-added woodTourismICTHealth and Bio industriesEnvironmental technologies

19

20

206.39.5

30

0.9 4.5 19

20

206.39.5

30

0.9 4.5

10-12 Future years’ Revenue (Sales $110 billion)10-12 Future years’ Revenue (Sales $110 billion)

2002 Revenue (Sales $60 Billion)2002 Revenue (Sales $60 Billion)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

$ m

illi

on

s

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

$ m

illi

on

s

Value of Alberta Manufacturing Shipments

Value of Alberta Manufacturing Shipments

Food & Beverage

Chemical & Chemical ProductsRefined Petroleum & Coal Products

Computer & Electronic Products

Fabricated Metal Products

Machinery

AEC Sector StrategyAEC Sector Strategy

Vision

Develop, diversify and organize the sector to successfully compete globally, create wealth and sustain their key position in the Alberta economy…

Strategies

– Raise Sector Profile– Encourage Better Practices– Address Skilled Labour Shortages– Facilitate Alliances, Supply Chain Development &

Business

Vision

Develop, diversify and organize the sector to successfully compete globally, create wealth and sustain their key position in the Alberta economy…

Strategies

– Raise Sector Profile– Encourage Better Practices– Address Skilled Labour Shortages– Facilitate Alliances, Supply Chain Development &

Business

AEC Sector Team InitiativesAEC Sector Team Initiatives

• COAA’s Alberta Construction Workforce Supply Demand Forecast

• Provincial Nominee Program (PNP)

• Alberta Economic Development Authority’s Report Mega Project Excellence: Preparing for Alberta’s Legacy

• COAA’s Alberta Construction Workforce Supply Demand Forecast

• Provincial Nominee Program (PNP)

• Alberta Economic Development Authority’s Report Mega Project Excellence: Preparing for Alberta’s Legacy

Post-Secondary Supportfor STP

Post-Secondary Supportfor STP

• Hewlett Packard Grid Research Centre, U of C

• 15,000 new post secondary spaces to be added in next 3 years

• $250 million added to endowment funds for medical, and science and engineering research

• Hewlett Packard Grid Research Centre, U of C

• 15,000 new post secondary spaces to be added in next 3 years

• $250 million added to endowment funds for medical, and science and engineering research

Lean Manufacturing ProgramLean Manufacturing Program

• Competitive Assessment, Improvement Recommendation & Implementation Assistance

• Workshops, Training Sessions and Lean Conference

• Increased productivity & profitability

• Program Expansion

• Competitive Assessment, Improvement Recommendation & Implementation Assistance

• Workshops, Training Sessions and Lean Conference

• Increased productivity & profitability

• Program Expansion

Securing Tomorrow’s ProsperitySecuring Tomorrow’s Prosperity

QuestionsQuestions