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Canadian Manufacturers & Exporters releases its second Manufacturing Supply Chains In Alberta’s Oil Sands report

Published by Brad Fougere on October 30, 2014

For Immediate Release

October 30, 2014

Canadian Manufacturers & Exporters releases its second Manufacturing Supply Chains In Alberta’s Oil Sands report outlining the positive impacts and opportunities from oil sands development for Canada’s manufacturers.

OTTAWA – Canadian manufacturers continue to capitalize on the significant opportunities supplying the development of Alberta’s Oil Sands, however much more work is needed to ensure Canada fully capitalized on this enormous economic opportunity in the coming years.

Manufacturing firms across Canada saw $6 billion in sales through the development and operation of oil sands in 2010, up 27 per cent from 2009 figures. However, with only 43 per cent of the opportunities filled by Canadian companies in 2010, tremendous growth potential exists for firms across the country. 

“Oil Sands development is largely seen as an Alberta activity,” said Canadian Manufacturers & Exporters Director of Policy and Economics Mike Holden, “however, manufacturers from every province across the country are actively engaged in procurement supply chains today. If Canadian businesses were to pick up 25 per cent of the manufacturing business currently held buy foreign companies, we could create between $59 billion to $117 billion in additional domestic sales.”

The report cites three major recommendations to increase domestic supply sales.

First, communications improvements related to procurement must be improved. To ensure timely production, the report recommends development of a working group to address bottlenecks. As well, the creation of publications outlining guides to supplying projects by owners and invested firms, establishment of a procurement office as a resource for interested suppliers and development of qualifications standards for manufacturing companies are cited as priorities. 

Second, an Ontario-based Oil Sands Manufacturing Innovation Center is recommended to serve eastern firms wishing to conduct testing and development of new products and technologies to sell into supply chains.

Lastly, the report says infrastructure development is vital. Building the transportation capacity to move crude oil and bitumen to market is the key to future oil sands development and to increased opportunities for manufacturers to become involved in increased supply chain opportunities.

“These are complex issues that require all stakeholders to work together to ensure the barriers to growth can be removed,” said CME Vice President of Policy Mathew Wilson. “The challenge is to secure the long-run competitiveness of the oil sands industry while working to ensure that

Canadian manufacturers are in the best position to benefit from the economic activities its development drives.”

 

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