If you’re a Canadian business owner, you likely watched as the Canadian government unveiled its federal budget on April 19, 2021. While much of the media focused on national childcare, COVID relief, and other social programs, our attention was focused on economic recovery and growth for CDNSMEs in manufacturing and product design.
As Dave Watters, Founder of Global Advantage ConsultingGroup pointed out during his post-budget breakdown, Budget 2021 is largely internally-oriented and doesn’t focus on global interests. At $77.6B, it is the largest budget in Canadian history, with 96% invested in social spending and only 4% in economic growth.
4% is a relatively small allocation. However, if used strategically, we can not only help Canadian SMEs bounce back from the economic impact caused by the COVID-19 pandemic, but we will also strengthen their global competitiveness for long-term economic sustainability.
Now is the time for Canada to assert itself in the rapidly evolving global marketplace. This will be accomplished by becoming more self-sufficient in manufacturing, whether in vaccine production, robotics/automation, or electric vehicles and creating vertically integrated domestic supply chains.
The results will insulate our economy against materials shortages caused by outside elements.
When manufacturing is closer to product design it enables better innovation. Designing our own products and securing a strong domestic supply chain is critical to our recovery and growth.
Leveraging digital transformation metrics can identify an SME’s potential to successfully become manufacturing self-sufficient:
The key to increasing R&D and innovation in Canada is the adoption of process technology and the acceleration of products to market - closing the commercialization gap from applied research to export ready products.
Collaboration also builds collective industry support where all stakeholders can share the risks and rewards.
A “Made in Canada” approach to investing in and promoting domestic products and services by the public sector would help increase Canada’s current GDP of 10% ($174B) that manufacturing currently represents, and create sustainable jobs in high-tech fields. By working across all levels of government, we could promote national strategic products and services to establish a minimum level of Canadian-made items that support Canada’s healthcare and green house emission objectives.
Canada’s future economic stability lies in the ability for more companies to digitize and produce export-ready goods and services. This will also help insulate businesses in the event the major global supply chain and market disruptions in the future.
Budget 2021 provided Canadian SMEs with a level of direction for recovery, but concrete action from all the entire public/private manufacturing ecosystem required to fully realize the potential that digital transformation can bring to Canada’s economic recovery.
We also need to recognize that there is no time for complacency. Incorporating a tangible industrial plan sooner rather than later will increase our economic positioning and prevent Canada from falling behind in the global marketplace.
Federal Budget Click here
Dave Watters, Founder of Global Advantage Consulting Group Click here
To learn more about the CSPC Federal Budget 2021 Symposium, visit the CSPC Event Page Click here
To listen to the CSPC 2021 Budget Symposium: Session II Commentary & Critical Analysis,ft. Irene Sterian, view the Event Recording Click Here