British Columbia's CLEAN TRANSPORTATION SECTOR

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British Columbia's CLEAN TRANSPORTATION SECTOR September 20 MARKET REPORT 12 British Columbia’s CLEAN TRANSPORTATION SECTOR Industry Insights on Job Creation and Investment Promotion in BC’s Clean Economy globe advisors, a subsidiary of the vancouver-based This report is one of a series of three market globe group, was established in 2005 in response to an reports prepared by GLOBE Advisors that increasing demand for project-based consulting services examine the “core” sectors of British Columbia’s in the environmental business sector. globe’s vast clean economy. To download reports on the networks and extensive experience in the areas of project clean energy supply and storage and the management, consulting, partnership development, green building and energy efficiency sectors, and market research makes them well positioned to please go to www.globeadvisors.ca. undertake a number of endeavors to further the business of the environment. To explore how GLOBE Advisors can assist your organization with its strategic objectives, please contact: Paul shorthouse Director, Research & Planning [email protected] globe advisors World Trade Centre Suite 578 – 999 Canada Place Vancouver, British Columbia Canada V6C 3E1 Phone: +1 (604) 695.5001 Toll Free: +1 (800) 274.6097 (North america) globeadvisors.ca i BC Clean Transportation Market Sector Report Preface In March of this year, GLOBE Advisors, with industry leaders from successful BC in collaboration with the Washington, companies, as well as academic institutions, dC-based Centre for Climate government agencies, and non-governmental Strategies, published a report on the organizations. The interviews were designed West Coast clean economy that was to identify current trends, economic commissioned by the Pacific Coast development opportunities and challenges, Collaborative (PCC) — a formal working and employment demand and supply issues. group that involves the province of British Columbia and the US states of In addition, GLOBE Advisors was involved California, Oregon, Washington, in organizing a one-day “Green Workforce Development Symposium” alongside the and Alaska. City of Vancouver, the Vancouver Economic That report confirmed that opportunities Commission, and six public post-secondary abound for the members of the PCC to act institutions in March 2012 that was designed jointly and co-operatively to maximize the to explore current and potential future benefits of their shared clean economies and employment opportunities and challenges in to minimize the overlap of efforts in order BC’s clean economy. to address shared priorities and challenges. GLOBE Advisors estimated that through a This market report looks specifically at collective approach to investment attraction British Columbia’s Clean Transportation and job creation in five clean economy market and presents a range of opportunities for opportunity areas or “sectors”, the region creating new jobs, attracting investment, could generate up to an additional $143 and expanding positive synergies. The billion in gross domestic product (GDP) and job opportunities presented in this report an estimated 1.03 million net new full-time were quantified using updated and proven equivalent jobs by 2020. methodologies that allow for the identification of industries and occupations that are part of In keeping with that analysis and other this sector in BC. earlier work, GLOBE Advisors undertook new research over the last six months to examine This report is not an advocacy document. three of these interrelated and potentially The pages that follow provide a current high-growth sectors in British Columbia’s snapshot of the Clean Transportation sector clean economy — specifically clean energy in British Columbia, a sector that is a driving supply and storage, green buildings and force behind what will ultimately be this energy efficiency, and clean transportation. province’s single most powerful competitive From this research, GLOBE Advisors has advantage — a cleaner and more sustainable published three market reports — one on economy. each of these three key sectors. Secondary research and employment estimates for this study were backed up by extensive consultation and outreach activities, including more than 90 in-depth interviews ii GLOBE Advisors ACknowledgments GLOBE Advisors would like to thank the following companies, government agencies, and industry organizations. These organizations provided important resources, insights, and/or data in support of this study. Automotive Fuel Cell Cooperation (AFCC) Lignol Energy Ballard Power Systems Modo – the Car Co-op BC Ferries National Research Council of Canada BC Transit Port of Prince Rupert Big Green Island Transportation Province of British Columbia Canadian National (CN) Railway Schneider Electric Car2Go Southern Railway of British Columbia City of Vancouver TransLink Coast Mountain Bus Company (CMBC) Vancouver Electric Vehicle Association Corvus Energy (VEVA) Delta-Q Technologies Victoria Transport Policy Institute (VTPI) FortisBC Webtech Wireless IMW Industries Westport Innovations iii BC Clean Transportation Market Sector Report Contents Highlights 01 Executive Summary 03 1. Introduction: A Background on the Clean Economy 10 2. Clean Transportation: Jobs and GDP 15 3. Sector Profile 18 4. Current Trends 42 5. Labour Demand and Supply 46 6. Barriers and Enablers for Sector Growth 60 7. Conclusions 65 Appendix A: Technical Note 67 Appendix B: Public Policy, Programs, and Financial Drivers 70 Endnotes 78 01 GLOBE Advisors HIghlights For the purposes of this report, the Heavy-duty and transportation mechanics, 1. Clean Transportation sector is divided 6. skilled track maintenance managers, into five key market opportunity and experienced mechanical, electrical, segments – namely rail transportation; and power engineers and technicians are public transportation (excluding rail); some of the most challenging positions biofuels; vehicles and technology; and to staff in this sector. These positions are other areas such as non-motorized especially difficult to staff in northern and transportation, car share programs, and more remote locations in the province. improvements to transportation systems through applications such as intelligent While the sector currently is supported by transportation system (ITS) technology. 7. a solid education and training framework, there is a need for more engineering In 2011, the Clean Transportation sector programs related to clean transportation 2. in British Columbia was estimated to enabling technologies such as power have generated some $1.9 billion in electronics and converters, chargers, gross domestic product ($1.3 billion and motors. There is also a greater direct and $600 million indirect) need for graduates to develop “soft” and 23,290 full-time equivalent jobs skills as part of their formal training (16,730 direct and 6,560 indirect). programs to allow them to prosper in small, team-based work environments. Higher demand for public transit services, 3. greater vehicle fuel efficiency and fuel Barriers including current market switching opportunities, improvements 8. uncertainties related to the roll-out of to systems and infrastructure, and the clean transportation vehicles; the low cost deployment of various clean transportation of energy and fuels in BC; the high costs vehicle technologies are key factors and real and perceived risks involved with enabling growth in this sector. new technology adoption; the lack of clean transportation-related infrastructure; Significant employment opportunities limited funding for the expansion of public 4. exist for public transportation-related transit services; and the lack of qualified / services; rail and goods movement-related skilled labour are some of the key factors services; clean transportation vehicles, limiting the growth of this sector. technology, and infrastructure; research and development in biofuels; and other Accelerating growth in this sector will clean transportation-related services, 9. require government leadership through including transportation logistics and supportive public policies and regulation; information technology (IT) services. the development of innovative financing models and cost-effective solutions Workforce challenges faced by companies for public transit service expansion; 5. in this sector include rising attrition rates improved awareness for the benefits for public transportation and railway of clean transportation options; and service companies, as well as the limited better access to skilled labour. available resources for recruitment, retention, and training, particularly Collaboration with key players in this for smaller companies involved in the 10. sector will be required in order to design, development, assembly, and develop comprehensive labour market manufacturing of clean transportation strategies that will ensure that the current vehicles and related technologies. and future supply of skilled workers in this sector aligns with demand. 02 BC Clean Transportation Market Sector Report 03 GLOBE Advisors ExecutivE Summary The Clean Transportation sector includes While companies in the Rail Transportation land-based clean transportation vehicles, segment are responsible for the highest GDP public mass transit, rail and low-carbon contributions in this sector (i.e., 56% of all marine transport, non-motorized transport, GDP), the Public Transportation segment and improvements to transportation systems is more labour intensive and as a result, is through new processes and technologies responsible for
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