Speech From the Throne a Once-in-a-generation Economic Opportunity for Canada

An Open Letter to Prime Minister Justin Trudeau

OTTAWA, ON, Sept. 16, 2020 /CNW/ -

Dear Prime Minister,

COVID-19 has highlighted how vital Canada's manufacturing sector is to our social and economic well-being.  While our manufacturers have risen to the challenge and responded to the urgent call for critical goods to protect and support Canadians, the crisis has exposed the need for measures to strengthen the sector going forward.

Manufacturing represents 30 per cent of all economic activity in Canada. The country's more than 90,000 manufacturers generate 10 per cent of our GDP, nearly two-thirds of merchandise exports, as well as almost two-million jobs, and another three million through Canada's integrated supply chain. As the Government develops its economic recovery plans, we encourage you to consider this a once-in-a-generation-opportunity to revitalize a critical pillar of our economy. Not only do we have an opportunity to create the conditions to ensure Canada is prepared for the next crisis, but the manufacturing sector can play a significant role in helping to build a cleaner, greener future for Canada, something we know is a priority for your Government and for all Canadians.

It starts with a clear commitment from the Federal Government to work with industry on a modern, national industrial strategy focused on strengthening Canada's business competitiveness. At a minimum, the strategy must address three priorities.

First, we must do more to increase the labour pool in Canada. The manufacturing sector still suffers from serious labour shortages, which COVID-19 has exacerbated.  We have also seen how the pandemic has negatively impacted women, many of whom have had to leave the workforce to care for children and other family members. Many have not returned to work because of the lack of child care or other supports. Canada's recovery plans must include measures to support women, who are among the hardest hit by the pandemic, in returning to the work, particularly in the manufacturing sector.

Second, we must harness technology, and become a leader in its creation and adoption in the manufacturing sector. This will improve productivity and environmental performance. We require policies to accelerate the advent of Industry 4.0, to encourage green investment, and to help trade-exposed large emitters and enhance the role of the manufacturing sector in achieving Canada's environmental objectives.

Third, we must capitalize on Canada's natural resources. They can help feed and fuel the world, support economic and social development, and contribute to achieving Canada's climate change objectives.  And we must leverage our domestic health care procurement system ? similar to how the U.S. uses military and defense spending to drive industrial and consumer innovation ? to increase the development and manufacture of new health care technologies for use at home and around the world.

These are just three key elements of a modernized industrial strategy. Additional details are outlined in "Manufacturing our Future," CME's strategy for relaunching Canada's manufacturing industry.

Done right, and in partnership with industry, this strategy would position the manufacturing sector to drive not just Canada's recovery from COVID-19, but also our long-term prosperity. And it would contribute to our shared objective of a cleaner, greener future for Canada.

Recognizing that planning takes time, there are other steps the Government could take in the short-term that would help accelerate our recovery.  Many of these are laid out in our submission to the Government's pre-budget consultations for the 2021 Budget. But there is no need to wait until the Budget given the economic headwinds facing Canada. For instance, Government could capitalize today on increased demand for local manufactured goods and the need for more resilient supply chains by committing to a "Made in Canada" strategy to promote domestic products. That announcement would be welcomed by manufacturers and the Canadians they employ right across the country and would have an almost immediate positive impact on our economy.

These are unprecedented times and there are no easy solutions. But every challenge presents opportunities. In the coming weeks we will be looking for a clear commitment from Government to address the growing need for an industrial strategy in this country. Canadians, and the Federal Government, can be assured that the manufacturing sector stands ready to play our part in its development and in driving our economic recovery and long-term prosperity.

Yours sincerely,

(signed)

Dennis A. Darby, P.Eng., ICD.D
President & CEO, Canadian Manufacturers & Exporters

ABOUT CME

Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada's exports.

SOURCE Canadian Manufacturers & Exporters