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The Saskatchewan Advantage

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The Saskatchewan Advantage 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
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