Ontario and the oil sands industry

Partners in growth

Oil Sands

Ontario: a solid partner in Alberta’s oil sands supply chain
The oil sands project is massive, with 5, 10 and 15-year planning horizons.

Savvy Alberta companies are building long-term, sustainable supply chain relationships with leading Ontario manufacturers.

Why Ontario?
Ontario manufacturers have the expertise, capacity and commitment to help Alberta companies maximize the oil sands opportunities.

We offer a unique value package of globally competitive costs combined with internationally recognized capabilities and capacity in advanced manufacturing technology and innovation.

And then there’s the "Canadian Comfort" factor. With a reliable transportation system in place, no international borders to cross and no exchange rates to worry about, supply chain management becomes a lot easier—fewer delays, less paperwork, less uncertainty.

The bottom line? If you’re looking for top-ranked manufacturers to help you meet your short-, medium- and long-term oils sands needs, look to Ontario.

Ontario–Alberta Partners in growth

"The oil sands development is one of the biggest projects in Canadian history and it offers tremendous opportunities to our national business community. One of those opportunities is to extend our strategic thinking—and our supply chains—along an east-west axis. Suncor was a pioneer in the oil sands and we have major refinery operations in Sarnia. Ontario companies have the capacity and the capabilities—in steel fabrication, process automation, R&D and much, much more—that can help oil sands companies meet their growth targets efficiently, effectively and in ways that will generate both immediate returns and long-term benefits."

Ontario’s manufacturing sector: broad and sophisticated

Ontario’s manufacturing sector includes thousands of companies large and small that have thrived by meeting the tough specifications and just-in-time delivery schedules demanded by OEMs and Tier One suppliers in the automotive, aerospace, petrochemical, mining and construction industries.

This capacity and expertise can be quickly adapted to meet the short, medium and long-term needs of companies involved in the Alberta oil sands.

Key areas that have already been identified include:

• fabricated metal products
• tanks, pressure vessels and heat exchangers
• industrial machinery and equipment
• engineering and construction
• structural steel
• pre-fabricated housing.

Manufacturing that meets the highest standards for quality and process productivity

Ontario companies recognize the need for quality standards in supply chain relationships. More than 7,500 Ontario companies have obtained ISO 9000 or ISO 14001 certification. Many firms have additional certifications or can readily meet the requirements.

We also have cutting-edge manufacturing technologies—automation, robotics and advanced materials—that can be adapted to help Alberta firms dramatically increase productivity.

The "Canadian Comfort" factor

East-west manufacturing alliances offer long-term Canadian partners a high level of supply chain security.

• We share reliable transportation networks —road, rail and air. An Ontario supplier can catch an early flight from Toronto and arrive in Edmonton in time for a full day of meetings.
• There are no international borders to interrupt the supply chain, which means less paperwork and less uncertainty.
• We share the same currency so there is no need to factor exchange rate fluctuations into long-term supply agreements.
• We share a language, business culture and legal system which significantly reduces the risk of complications and misunderstandings.

Introducing Ontario's workers: smart, skilled and dependable

Behind the success of Ontario's companies lies an exceptional workforce.

It’s highly educated with an on-the-job average tenure of 9.5 years. Taken together, those factors translate into high levels of productivity

And Ontario's workforce is growing. Our network of universities and colleges produces more than 29,000 graduates per year in mathematics, engineering and science. And our supply of workers in the skilled trades is growing as well. By 2007–08, we will be registering 26,000 new apprentices per year.

In short, we have the kind of expanding labour pool that ensures a solid, sustainable future for Ontario firms and their partners.

Fast Fact
Ontario’s manufacturing sector employs 1 million workers, the second highest level in North America after California.

"The oil sands projects have created a lot of fabricating and machine shop work in Alberta. We have a shortage of the skills and skilled trades like welding that are needed to get the jobs done. This is an area of expertise that is fundamental to the Ontario manufacturing sector. It makes a lot of sense for us to farm-out the work to other Canadian manufacturers. We speak the same language and, with the Internet, communication and knowledge transfers are easy. This is a great opportunity for all of us."

Partners in research and innovation: driving development

Innovation has made the oil sands possible, and innovation will shape its future.

Improvements in oil sands mining and extraction techniques have cut production costs dramatically during the past 25 years. Ontario researchers have expertise that can complement the oil sands R&D now underway in Alberta. Some examples?

• University of Toronto, McMaster and Queens all have major research centres focused on creating the next generation of advanced materials, manufacturing processes, products and technologies.
• University of Waterloo is a recognized world-leader in engineering, information technology and software development— increasingly important fields in the high-tech environment of oil sands development.
• Laurentian and Lakehead universities both have expertise in major resource projects—from adapting new technologies for rugged working conditions to planning environmental stewardship programs and managing multi-stakeholder relations.

Thinking of expanding outside Alberta?

Ontario offers a welcoming environment for growing businesses.

• We have a central location in North America’s manufacturing heartland with easy access to raw materials and industrial suppliers.
• We have direct connections to extensive east-west transportation and distribution networks: road, rail, marine and air.
• We have a large and highly competitive financial services sector that understands the needs of growing companies.
• We offer exceptional levels of public support for business innovation through tax incentives, research partnerships and programs such as Ontario’s Advanced Manufacturing Investment Strategy (AMIS).

"Many Ontario firms offer oil sands companies two critical qualities that can help move projects forward quickly. One is that Ontario firms are often quite used to establishing joint ventures or partnerships to tackle big projects so they have the mind-set and infrastructure in place to get everything up-and-running smoothly. Secondly, both Alberta and Ontario businesses embrace a corporate culture they share with their trading partners in the United States: there’s a sense of urgency and a drive to get things done that would be welcomed by oil sands companies that are dealing with incredible time pressures."

"The clear message we’re hearing from Alberta firms is that they’re looking for Canadian sources—Canadian manufacturing expertise and resources— to help them meet short-, medium- and long-term project needs. What we have is an opportunity to build national partnerships. Ontario firms, for example have capacity and expertise in automation and robotics that can lead to productivity upgrades. If we can get this Canadian partnership to work, if we do it right, it will put us at the forefront internationally and create a package that can be exported to developing countries. The potential is huge."

Fast Fact

Almost 7 million people make up Ontario’s labor force and more than half of them (57%) have completed at least one post-secondary degree or diploma.

For more information about manufacturing in Ontario, please contact:

Toll free: 1-800-819-8701
Tel: 416-313-3400
Fax: 416-360-1817
e-mail: info@2ontario.com
www.investandtradeontario.com

Ontario Investment and Trade Centre
250 Yonge Street, 35th Floor
Toronto, Ontario, M5B 2L7
CANADA