saskatchewan.ca/invest Business Opportunities for you Scott Summach, Deputy Director Investment Ministry of Trade and Export Development Government of Saskatchewan Food Fuel Fertilizer Area: 651,036 km2 (251,366 mi2) Twice the size of Japan Almost the size of Texas Forest Agriculture covers half covers most of the province — the other half — 34 million 18 million hectares hectares. The Saskatchewan Advantage
• Record-breaking population Saskatchewan Quarterly Population Estimates 1,168,423 1,143,480 1,156,964 growth 1,118,181 1,127,773 • Saskatchewan’s population is at an all-time high • 1,178,657 people as of October 2019. Source: Statistics Canada, Table 17-10-0009-01. The Saskatchewan Advantage
Saskatchewan Capital Investment 25,000
20,000
Average, $14,178 Average, $14,178 15,000
10,000 $ Millions $
5,000
0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* 2019**
Other Mining, oil and gas (including support activities) Utilities and construction Average
*Preliminary, **Forecast Note: Investment by sector/industry does not add to total investment because of missing data in some sectors. Source: Statistics Canada, Table 34-10-0035-01. A Leader in Economic Growth
Tripled Export Growth Total Saskatchewan Exports
The value of exports $35.4B $30.6 reached $30 billion in 2019. $16.4B
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: Industry Canada, Trade Data Online. Strong, Diverse Sectors Industry Share of Real GDP at basic prices, 2018
Manufacturing, Construction, 6.7% 7.2%
Mining and Oil and Gas, 27.1%
Services, 48.3%
Agriculture, 8.4%
Source: Statistics Canada, Tables 36-10-0402-01 & 36-10-0434-01 (Formerly Cansim 379-0030 & 379-0030) Ministry of Trade and Export Development
• 4 Divisions 1. International Engagement 2. Economic Development (Indigenous Economic Development) 3. Strategic Policy and Competitiveness 4. Marketing and Communications Provincial Government Support The Government of Saskatchewan welcomes investment in manufacturing and processing and provides assistance for new and existing investors:
• Assist in identifying potential sites and potential partners to ensure companies meet their corporate objectives;
• Facilitate introductions to federal, provincial, and municipal stakeholders to help expedite the projects; and, Agriculture and Agri-value
• 43% of Canada’s cultivated farmland • 10% of the world’s wheat • Top exporter of lentils and chick peas • Strong agri-value sector – pulse crop and food processing Investment Opportunities
• Market growth areas: – Meat Products – Plant Based Foods – Health & nutritional foods (functional foods) – Ingredient supplier market – Convenience foods – Frozen and refrigerated food – Organic Foods – Non-Food products like Hemp and flax fibre, Pharmaceuticals Energy & Minerals
• Saskatchewan is the second-largest producer of crude oil in Canada (after the province of Alberta), accounting for approximately 17 per cent of total Canadian oil production. • Approximately 65-70% of Saskatchewan’s crude is exported to the United States making the province a larger exporter to the U.S. than the country of Kuwait. • And the province is the third-largest producer of natural gas in Canada (after Alberta and the province of British Columbia). • Largest producer of potash & 2nd largest producer of uranium in the world Opportunities
Processing and converting Saskatchewan’s primary energy resources (oil, gas, coal) into valuable products such as diluent, synthetic crude oil, low sulfur diesel, hydrogen, electricity, and steam
Examples of value-added energy includes upgrading, refining, gasification, GTL, micro LNG, coal to liquids, supply chain
Value-added diversifies our economy through innovation, creates new jobs, produces new products and creates new markets, and develops supply chain opportunities Supply Chain Opportunities
Exploration -- geology, camp/lodging, field services, drilling, transportation, communications, freight
Projects (new mines/expansions) Establish Infrastructure – water, waste disposal, catering, camp accommodation, janitorial, pest control, medical, security, internet/phone, storage shelters Construct Surface -- road/site preparation, concrete, steel & fabrication Construct Underground -- electrical, pumps, piping, valves & fittings, equipment, conveyers, rock tools/drills, cranes, hydraulic motors
Operations – HR, maintenance, logistics, environmental Forestry
• Key wood products include: dimensional lumber, pulp, plywood, oriented strand board, treated posts, and secondary products, such as furniture, cabinets, millwork and flooring
Photo via Logging and Sawmilling Journal Manufacturing
• Saskatchewan’s manufacturing industry represents $17.6 B in shipments with 29,000 employees and $11 B in total exports and the overall sector represents 6.7% of the provincial GDP.
• Manufacturing in the province includes agricultural machinery, transportation and industrial equipment, food an beverage processing, Metal and wood fabrication, structural steel and chemical manufacturing.
• Emerging clusters include aerospace and defense, unmanned aerial vehicles and drones, automotive accessories, renewable energy components for Wind, Hydro and Solar projects. Manufacturing Investment Opportunities
Transportation Automotive & Equipment Farm & Accessories Ag. Processing Machinery Aerospace & Defense Construction Equipment
Mining Equipment MTIE Specialty Vehicles
Oil & Gas Equipment Wind Power Machinery Environmental Bio-Medical Equipment Devices Did you know?
But did you know that Saskatchewan also produces: – Military and specialty vehicles i.e. ambulances, highway trailers, ground transports, recreational vehicles, unmanned vehicles and automotive accessories – Industrial building systems – Satellite and landline communications technology – CATV and wireless telecom products – Military ship communications and components New and Emerging Sectors
• Saskatchewan’s aerospace and defence companies have proven themselves to be world-class suppliers to international space agencies as well as aerospace and defense contractors • From pickup truck lids and front-end steel grilles to specialized military vehicles, our manufacturers are expanding into the specialty automotive and automotive Photo via Draganfly Innovations accessory industry The Saskatchewan Advantage
• In the past few years, the Saskatchewan government has created one of the most competitive business climates in North America: • Lowered the corporate income tax by 5 points • Eliminated the general corporate capital tax • Introduced the largest single-year personal income tax reduction • Competitive tax incentives: – 6% M&P investment tax credit – Saskatchewan Value-Added Agriculture Incentive, Steel and Fertilizer Value-Added Incentives Government Committed to Growth
• Offers programs to encourage the development and commercialization of new technologies --100% of eligible R&D expenses can be used against net income for the purpose of calculating federal tax credits • 10% of qualifying R&D expenditures incurred by corporations with a permanent establishment in Saskatchewan. For Saskatchewan Canadian-controlled private corporations, the credit is refundable on the first $1 million of qualifying annual R&D expenses • Canada-Saskatchewan Job Grant • Saskatchewan Commercial Innovation Incentive • Saskatchewan Trade and Export Partnership (STEP) Government Committed to Growth
• Revamping Government Procurement with creation of Priority Saskatchewan and the introduction of Best Value Procurement. • Emphasizing engagement of Sask-based Aboriginal groups in Government Procurement process based on best practices. • Renewed focus on trade agreements and how we can use them to promote our local suppliers through initiatives like the Saskatchewan Corporate Procurement Committee. Corporate Procurement Committee
• The Ministry of Trade and Export Development chairs the provincial Corporate Procurement Committee (CPC) • The CPC consists of members from major Saskatchewan corporations representing the Crowns, the private sector, and government departments. CPC Members
• Ministry of Highways • SaskPower & Infrastructure • SaskTel • Sask Research Council • SaskEnergy • City of Saskatoon • SaskWater • Crown Investments • SGI Corp. • Sask Gaming Corporation • CAE • Information Services Corp. • SaskBuilds/Priority • Ministry of Central Services Sask CPC Mission Statement
• The Mission of the Corporate Procurement Committee is to promote Saskatchewan economic growth by developing quality, competitive suppliers of goods and services in Saskatchewan. CPC Goals and Objectives
To maximize Saskatchewan content in the acquisition of goods and services in accordance with trade agreements To increase awareness of Saskatchewan supplier capabilities To encourage the export of goods and services by Saskatchewan suppliers CPC Goals and Objectives
To identify opportunities to Saskatchewan suppliers (Renewable energy production and water/waste water production) To maximize Aboriginal content in the acquisition of goods and services To encourage the implementation of Quality Assurance Programs by Saskatchewan suppliers. CPC Action Plan
• Meet as a committee 4 times per year • Share information on suppliers, new products, success stories, and Saskatchewan content statistics • Visit supplier facilities in conjunction with meetings and hold Supplier Open Houses CPC Success Stories
• Grit Industries – pipeline heaters for SaskEnergy • Saskatoon Machine Works – pedestals for SaskTel, SaskPower • Country Leather – manufacture of leather gloves for SaskPower • Crestline Coach – manufacture of specialty vehicle for Casino Regina • SaskPower developed Montrose Metals near Donovan to fabricate cylindrical buried cable warning markers among other line hardware items. SaskTel and SaskEnergy also purchase warning signs and sign posts from Montrose Metals. • Vermette Wood Supply – wood power poles for SaskPower Next CPC Meetings
June 2020 in Moose Jaw September 19-20 , 2020 in TBD November 26, 2020 in Regina March 2021 in Saskatoon
Interested in presenting to CPC or giving us a tour of your facility? Call Scott Summach at 306-221-6184 SaskTenders.ca
• One website where all crown corporation procurement competitions are posted • Create an account for your business and sign up for email notification of procurements • Manuel and Procurement Training modules available Sask Builds
• SaskBuilds leads the delivery of large and complex infrastructure projects for public sector clients, coordinates long-term integrated capital planning for executive government and drives public procurement modernization to support the province’s growth and the quality of life of its people. • Single Desk Procurement for Executive government and all government Ministries Priority Saskatchewan
• A division of SaskBuilds that is responsible for ensuring procurement across ministries and the Crown sector is fair, open, transparent, and based on international best practice. • Priority Saskatchewan is committed to ongoing consultation with industry and stakeholders and continuous procurement improvement. • Currently working on Indigenous and Metis procurement strategy Federal procurement
The federal government’s Industrial and Technolgy Benefit (ITB) policy is designed to bring highly technical and highly skilled work to Canadian companies and educational institutions.
Winners of large defence contracts must spend the contract equivalent in Canada either directly in the form of suppliers to the project or indirectly, through research and investment in high tech areas. Opportunities
• Government of Saskatchewan works to promote Saskatchewan manufacturers, research institutions, and technical institutes to the aerospace and defence sector • We introduce Saskatchewan companies to the prime contractors, arrange visits by contractors to Saskatchewan, and act as a liaison between Saskatchewan industry and the international industry to seek business opportunities. Promoting the Sector
• Exhibit at strategic industry trade shows – DEFSEC (Halifax, September 2020 – Saskatchewan Aerospace and Defence Forum (March 2021) – CANSEC (Ottawa, May 2021) – AI summit (London, June 2021) – Eurosatory (Paris, June 2021) • Organize supplier events with our partners (Innovation, Science and Economic Development, Global Affairs Canada, WED, STEP, and SAC) Manufacturers Guide
• Over 1300 companies are currently listed • free of charge to any manufacturer that manufactures at least 51% of the product in Saskatchewan • Guide is searchable by company name, product and location • Used by purchasers to find suppliers • http://www.economy.gov.sk.ca/mfgguide Contact
• We are here to meet with anyone that is interested in investing in Saskatchewan, please contact:
Scott Summach, Deputy Director Investment, Manufacturing 306-221-6184 [email protected]
International Engagement Ministry of the Trade and Export Development