new brunswick - manufacturing our future

October 26, 2015, Fredericton, NB

Chamber & Rotary Distinguished Speaker Series

Joel Richardson

Manufacturing our Future

Canada’s largest trade and industry association.

Over 140 years representing employers.

1. Advocacy

2. Investment at Home

3. Trade and Business Development

#NBProud #NB #NBExports

#HopeIsRestored@Fton_Chamber @Rotary

@JoelHRichardson@cme_mec

Our trade story.

1850• 73,440 square kilometres

• Over 95% forested

• Total population: 200,000

• Exports: Timber, ships, fish

• Workforce: 90% goods-

producing sector, 10%

service industry.

• After Confederation in 1867,

NB workers left declining

ports and timber towns to find

employment in the US.

• Spem reduxit (Hope was

restored)

Today• 73,440 square kilometres

• Over 80% forested

• Total population: 752,000

• Exports: Timber, fish, energy,

minerals, paper, metal works,

machinery, food, IT,

engineering, etc.

• Workforce: 22% goods-

producing sector, 78%

service industry.

• NB workers leaving to find

employment in Western

Canada.

• Spem reduxit (Hope was

restored)

New Brunswick Today1. Unemployment soaring over 20%+ in some regions with

over 40,000 residents out of work across NB.

2. Homes sold down -6.6% (-8.5% Fredericton, -24.4 North). Home value down -8.2% Fredericton.

3. Home listings at historic highs - up +10% in 2015.

4. Housing construction starts are the lowest in 20 years below 1995 levels.

5. Manufacturing output is 10% below 2004 levels, employment is 24% lower and the number of plants is down by about 30%.

New Brunswick Today6. Overall NB export sales were down -10.4% in 2014. 7. Average age of NB residents is now 44 from 24 in 1973

- pushing increased health care costs.8. NB youth have a much higher unemployment rate

(17.5%) than youth across Canada (14.3%).9. Our tourism industry including accommodations and

food & beverage has flat-lined, showing virtually no growth.

10. Provincial government program expenditures are rapidly outpacing revenue.

7% Jan 2007

10% Sept 2015

NB Unemployment Rate

10

15

20

25

30

35

40

45

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

The relationship between jobs and exports in New Brunswick

Manufacturing exports, in $millions (left axis) Employment, in 000s (right axis)

Relationship between jobs and

exports in NB

2009

1992

Government doesn’t create jobs. Companies don’t create jobs.

Demand from customers for products creates jobs.

We need to create

more demand.

iPhone day in Vancouver.

iPad day in China.

How to create demand:

Connect sellers with buyers.

– Build stronger relationships

– Think and act differently

– Satisfy the buyers 3 “needs” currencies

• Help them feel safe

• Help them feel special

• Help them save time/money

Develop an export mindset

How do you export a haircut?

Where do you export a haircut?

In the future, even the smallest business will be

multinational.

Free Trade Agreements in Force

• Canada - Korea - January 1, 2015• Canada - Honduras - October 1, 2014• Canada - Panama - April 1, 2013• Canada - Jordan - October 1, 2012• Canada - Colombia - August 15, 2011• Canada - Peru - August 1, 2009• Canada - European Free Trade Association - July 1, 2009• Canada - Costa Rica - November 1, 2002• Canada - Chile - July 5, 1997• Canada - Israel - January 1, 1997• North American Free Trade Agreement (NAFTA) - January 1, 1994• Canada - U.S. Free Trade Agreement (CUSFTA) - January 1, 1989

(superseded by NAFTA, which includes Mexico)

On-going FTA negotiations

• Canada - Caribbean Community (CARICOM 15)• Canada - Central America Four (CA4)• Canada - Dominican Republic• Canada - India• Canada - Israel Free Trade Agreement Modernization• Canada - Japan• Canada - Morocco• Canada - Singapore• Canada - Ukraine• Negotiations to Modernize the Canada-Costa Rica Free

Trade Agreement

Exploratory discussions on-going

• Canada - Turkey Exploratory Trade Discussions

• Exploratory Discussions for a Canada-ThailandFree Trade Agreement

• Canada-MERCOSUR Exploratory Trade Discussions (6 South American countries)

Negotiated but not yet ratified

• Canada - Trans-Pacific Partnership (TPP) Negotiations - October 5, 2015

• Canada-European Union Comprehensive Trade and Economic Agreement (CETA) - August

5, 2014

• Canada - Ukraine - July 14, 2015

Return on Investment Results

Helping companies realize increased export sales will:

Create new direct & indirect jobs

Generate GNB tax and royalty revenue to help cover health, education and social services.

Help families.

Canada is one of the most welcoming countries in the world

“While New Brunswick has contributed significantly to the

national life of Canada, it is one of the smaller provinces and has

always occupied a lesser role in the national economy.”

Our NB brand has diminished

Have-Province

Have-Not-Province

Will-Not-Province

We need to manufacture our

future.

Let’s Get Moving and Aim Higher

1. Double manufacturing and exporting output by 2030.

2. Invest in innovation and new product development.

3. Develop skills and careers in manufacturing, technology and trades for youth, immigrants and our aboriginal communities.

Let’s Get Moving and Aim Higher

4. Approve and begin major capital projects required to transport our energy, resources and manufactured goods to market.

5. Explore alternative energy solutions like natural gas and renewable technologies.

6. Ensure our business climate is globally competitive.

Our Return on Investment Goals

Most trade-friendly partner in the world

Canada’s most prosperous province

An unemployment rate of 6%

Preferred location for people to invest, manufacture, export from, employ and grow

Reddita est spes- Hope Is Restored

Spem reduxit- Hope was restored

What deals are you closing today so we

can sell more of what we make right here

in NB?

Joel RichardsonVice-President

Canadian Manufacturers and Exporters (CME) New Brunswick and PEI

Executive Director Metal Working Association of NB

joel.richardson@cme-mec.caPhone: (506) 259-0358

@JoelHRichardson