Greater Toronto Area Value Proposition for Advanced Manufacturing Industry. Your ideal destination for international expansion

Transcription

1 Greater Toronto Area Value Proposition for Advanced Manufacturing Industry Your ideal destination for international expansion

2 Advanced Manufacturing Sector: Ontario Lowest in G-7 countries with highly skilled and experienced labour force available from across 44 universities and engineering colleges. A network of incubators, research parks and technology transfer offices throughout the province helps in commercializing the breakthroughs. Manufacturing plant, DURHAM REGION

3 Robotics Industry: First half of 2013 The industry has grown exponentially within the last decade. According to Robotic Industries Association (RIA) there has been a 1.9% growth in units ordered in the first half of 2013 compared to the first half of 2012 from North American robotics companies. 10,854 robots which are valued at a massive $679.3 million Through June, a total of 11,308 robots were shipped to North American customers valued at $715.1 million. High activity growth in Semiconductors, Life Science and Food & Consumer Goods. (All automotive industries.

4 There are 6 main areas of robotics Space Exploration Manufacturing Surgery Personal Service Research Military Defence/Law Enforcement

5 Large and Diverse Manufacturing Sector More than 280,000 manufacturing jobs in the GTA.

6 Key Advanced Manufacturers in the GTA

7 Major Players of GTA in Advanced Manufacturing Bombardier Aerospace: One of the top aircraft manufacturers in the world along with Boeing Builds business to commercial aircrafts Currently in production of the new CSeries commercial aircraft Bombardier aircrafts and transportation are in 39 counties worldwide Celestica: Provides high-end product lifecycle solutions from development to delivery to support Gives customers that agile and low total cost topnotch services Approximately 20 manufacturing and design facilities worldwide

8 Aerospace Sector in the GTA $6.5 billion in aerospace products and services are exported to more than 80 countries from Ontario. The GTA is home to head office and major facilities of top aerospace and defense companies. Ontario is a member of the North American defense industrial base, enabling Ontario businesses access to USA military projects. 19,000 people are employed in the GTA Aerospace sector. Exports represent close to 70% of total revenues, with almost two-thirds being exported to the USA and increasing penetration into Europe and Asia.

9 Automotive Sector in the GTA The GTA is the 2nd largest automotive cluster in North America. Metropolitan Area CMA and MSA Employment 1 Detroit, MI 154,056 2 Greater Toronto Area, ON 49,000 3 Dayton-Spring field, OH 32,414 4 Grand Rapids-Muskegon-Holland, MI 32,284 5 Chicago, IL 28,956 Six major auto assembly plants. Over 500 parts manufacturers. 48% of Ontario s total vehicle production is based in the GTA. Over 2 million vehicles produced in Clevland-Lorain-Elyria,OH 27,464

10 Cost Competitive A cost advantage in every sector when compared to any other G7 economy. SOURCE: Invest in Canada, 2011 Edition City of Burlington, HALTON REGION

11 Manufacturing Costs Ontario is one of the most cost effective locations for advanced manufacturers. Ontario, 92.9 Alabama, 95.5 Texas, 98.2 North Carolina, 99.5 Michigan, (Index Score - US=100) Wind tunnel, OSHAWA

12 Competitive Manufacturing Labour Costs Most competitive wages in North America: a tool & die maker in Michigan, U.S. earns $44,200 while in Ontario the same wage rate is $39,200 per annum. NOTE: Figures are in USD ($1 CAD = $0.95 USD) SOURCE: Labour Market Information and Service Canada, 2009: May 2008 State Occupational Employment and Wages Estimates

13 Case Study: Sumitomo Precision Products Co., Ltd. This investment shows the win-win benefits: good jobs are being created for hardworking Canadian families, and Japan is benefiting from Canada's proven leadership and expertise in our world-class aerospace sector Hon. Edward Fast, Minister of International Trade. Company: Sector: Country of origin: Nature of Business: Type of investment: GTMA involvement: Investment influence: Sumitomo Precision Products Co., Ltd. (SPP) Advanced Manufacturing/Aerospace MRO Japan Design and manufacture aerospace equipments and related products. Incorporate business registration, establish facility focused on final assembly process for landing gear products on regional aircraft by Assembly kit parts will be supplied primarily from its headquarters in Japan. Coordinated meetings with GTMA private-sector partners and set-up site tours across the GTA. Provided data and ongoing communication since July ) Employment of experienced professional and technically skilled staff to improve engineering, production, and marketing capabilities tremendously toward achieving excellence in customer satisfaction in one of the world largest aerospace clusters. 2) Proximity to the aerospace market for enhanced communication, performance and logistics. GTMA-Assisted Investment Country of Origin Type Job Creation Fronius Canada Austria Welding power sources 15 Lisi Automotive France Auto Parts 100 TOS Trade Czech Republic Horizontal boring mill 5

14 Incentives for Advanced Manufacturing SUPPORT PROGRAMS/INCENTIVES CRITERIA HOW MUCH Apprenticeship Training Tax Credit (Ontario) Corporations and unincorporated businesses employing apprentices in certain skilled trades during the first 48 months of an apprenticeship program. It reimburses employers for 35% of eligible expenditures and small businesses 45%. The maximum annual amount of the tax credit is $10,000 per qualifying apprentice, during the first 48 months of an apprenticeship program Export Market Access - A Global Expansion Program - Scientific Research & Experimental Development (SR&ED) Ontario Business Research Institute Tax Credit (OBRITC) - Small to medium sized organizations (SMEs) with accessing and expanding their growth in foreign markets. - Five or more employees, and annual sales of $500,000 or more. Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada that will lead to new, improved, or technologically advanced products or processes. Must incur qualified expenditures in respect of scientific research and experimental development (SR&ED) under an eligible contract with an eligible research institute (ERI) Up to 50% of eligible costs incurred to develop export sales. Non-repayable contributions generally range from a minimum of $5,000 to a maximum of $30,000. Earn an investment tax credit (ITC) of 35% up to the first $3 million of qualified expenditures for SR&ED carried out in Canada, and 20% on any excess amount. 20% refundable tax credit for SR&ED expenditures incurred in Ontario under an eligible contract with an ERI. The maximum amount a corporation can claim is $4 million

15 ADVANCED MANUFACTURING Growth & Business Opportunities in Advanced Manufacturing sector Rapid Growth in Robotics and automation, plastics, packaging and machine tools, materials handling equipment and sawmill and woodworking machinery. Well-established production market for motorvehicle parts and assembly, electronics and appliances, plastic, chemicals and food processing. Parts and components for aerospace and defense industry. The Ontario government made R&D-and its commercialization a priority, with a total investment of almost $3 billion over eight years. Over the next five years, the Ontario government will spend $3.4 billion on upgrades to the transportation infrastructure. Goodrich, OAKVILLE

16 ADVANCED MANUFACTURING Gregory Dudek, director of computer science at McGill University, mentions in an article the fact that the use of robotics is on a high now. He has been involved in robotics for about 25 years and says it is about time robotics take over in many ways. CSA (Canadian Space Agency) have been a great supporter of robotics programs in the early years in building a robotic arm which has been used in many space shuttle missions. Education and Research collaboration - On 2012, a 3-year commitment of $110 million was concluded where funds where distributed to 40 private sector companies and a dozen universities where they are working on advanced robotics and space exploration technologies. - Robotics professor, Andrew Goldenberg from University of Toronto, mentioned that the government is providing whatever funds they to support. Hence, there is not lack of funding. Some success & Future Endeavours in Advanced Manufacturing - MacDonald, Dettwiler and Associates (MDA) firm s subsidiary, MD Robotics developed the original Canadarm (5 versions developed). They were successfully took part in combined 90 space shuttle missions from 1983 to MDA also indulged itself into the medical field by developing the NeuroArm used in neurosurgery. - Medical robotics have greatly increased recently. University of Health Network in Toronto is developing a robot to assist with prostrate surgery. - Future marketability is quite high and shows lots of promise as professor Dudek believes. Lots of room to develop and invest with great amount of potential. - Global demand for robots and robot-related products worth $21 billion (U.S.) in 2010 and expected to grow to $30 billion by 2016, according to BCC Research LLC. Source:

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