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Contents
Advanced Manufacturing: The Business Case for Ontario
Smart, Skilled and Ready to Work
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If you're an advanced manufacturer, here's the abridged version of what you need to know about Ontario - and why it's the place you want to be.
We're Canada's largest province (our equivalent of a U.S. state):
We're home to Canada's corporate and banking headquarters, and we have:
"Husky develops and manufactures the injection molding industry's most comprehensive range of equipment, including machines, molds, hot runners and robots. We are recognized as a leading innovator, thanks to our commitment to R&D. Innovation has been crucial to our success since the early 1950s, when we developed our .rst breakthrough technology. The main portion of our global R&D is conducted at our facilities in Bolton, Ontario. The province gives us access to highly skilled engineers and some of the most attractive R&D incentives anywhere."
Robert Schad
President and CEO
HUSKY INJECTION MOLDING SYSTEMS
And advanced manufacturing is BIG business in Ontario. We've been building machinery and systems for more than 150 years.
Our advanced manufacturing industry
1 Ottawa
2 Greater Toronto Area (GTA)
3 Hamilton
4 Canada's Technology Triangle (Kitchener, Waterloo Cambridge)
5 Windsor Essex County
Our industry is fuelled by
That's why Ontario is home to so many flourishing advanced technology manufacturers. We have subsidiaries of foreign-based multinationals like ABB, Northrop Grumman, RNA Automated Systems and Valenite, as well as internationally recognized Ontario-based corporations like Automation Tooling Systems (ATS), Husky Injection Molding Systems and Meikle Automation.
And it's why Ontario is the place to be if you're looking to locate or expand your business, conduct cutting-edge R&D or invest in one of the world's great advanced manufacturing industries.
Employee health care benefits cost Ontario manufacturers about half as much as their U.S. counterparts - 6.8% versus 13.2% of wages. In Ontario, services such as doctor's fees, tests and hospital stays are paid through the public health system.
In 1998, German-based RNA Automated Systems - the world's largest company
specializing in the manufacture of vibratory feeding systems for automated assembly - was hoping to establish a strong foothold in the North American market.
After carefully evaluating locations in the U.S. and Canada, RNA chose the Greater Toronto Area (GTA) as the site for its North American manufacturing and service facility. "The GTA offered everything we needed," says RNA Automated
Systems General Manager, Rick DeJong, "including a hard-working, creative workforce with the right skill set, competitive business costs, an excellent transportation infrastructure - and the world's largest process machinery market
right next door." RNA opened its North American facility in September 2000, and within a year it moved to a larger plant. That was just before the worldwide economic downturn of 2002-2003, but RNA continued to maintain its sales and
attract a growing list of clients, including ATS, Philips Lighting, GN Packaging and Timken U.S. Corporation. By spring 2004, business was booming - and RNA was gearing up for another expansion.
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"To be a leading global supplier of analytical instruments and technology solutions requires us to attract and retain experienced employees. We're fortunate to have access to a pool of highly skilled and educated workers in Ontario. We're able to recruit them locally - and from around the world - and keep them because of the career growth we're able to provide."
Andy Boorn
President
MDS SCIEX
Advanced manufacturing demands highly skilled workers, and ours are among the best in the world.
What's more, we produce a steady pipeline of industry-ready workers, thanks to a well-established education infrastructure that includes:
Ontario's advanced manufacturing industry is booming and that's creating a big demand for highly skilled workers. The Ford Centre for Excellence in Manufacturing at St. Clair College in Windsor is responding with a teaching facility that's unique to North America. The $30 million, 100,000 sq. ft. facility has shop-floor labs filled with state-of-the-art equipment, including CNC machines, Axis machines, rapid prototyping, wire EDM, high-end CAD/CAM software and an industrial automation line. It can accommodate 1,300 full-time, part-time and apprenticeship students. Incorporating the best practices from industry, the Centre has been designed to move the students from classroom to industrial setting seamlessly, training them in everything from automotive product design to tool and die making to robotics. "This world-class facility is making a tremendous difference in the quality and level of training we can provide to students interested in careers in advanced manufacturing," says Michael Vourakes, Vice President Academic, St. Clair College.
New government programs will increase the number of apprentices in high-demand areas to 26,000 annually by 2007-2008.
The Ontario Government's new Apprenticeship Training Tax Credit refunds 25% of wages or salaries of eligible apprentices for the first 36 months of the training program to a maximum value of Cdn $15,000.
ATS Automation Tooling Systems Inc. is the world's leading industrial automated manufacturing and test systems company with
a well-earned reputation for innovation in the design and production of specialized factory-based automation systems. Less
well known - but crucial to its success - is how the Cambridge, Ontario-based company is leading the way when it comes to
recruiting and retaining highly skilled workers with its ATS Apprenticeship Program. The four-year, 8,000-hour company-designed
skilled trades training program is delivered in partnership with the Ontario government and nearby Conestoga College. It combines
work at ATS and classroom study at the College. "Developing our own talent has worked very well for us," says ATS President and
CEO Ron Jutras, who notes that, thanks to the program, ATS has its pick of top automation apprentices who have been trained in
skills unique to the company and who help to fuel the company's growth. ATS employs 4,000 workers in 26 locations around the
world, and had revenues of close to $510 million in 2003. The company's clients include many of the world's foremost manufacturers
in areas as diverse as automotive, telecommunications, computers and health care.
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Research and testing are crucial to the successful development and production of advanced manufacturing technologies and products. And here again, Ontario delivers.
We've got leading minds, world-class research facilities and a government that has made research and development a priority - and that makes Ontario THE place to be for R&D.
"Nearly every industry is demanding high-performance materials to help improve productivity and efficiency, and the Centre for Manufacturing of Advanced Ceramics and Nanomaterials (CMACN) aims to capitalize on this growing field. CMACN is the first centre of its kind in Canada to focus on research, development and training in the expanding field of advanced materials manufacturing. Our goals are three-fold. One, to help industry with its need to get R&D into production in a timely and commercially viable way. Two, to produce a new generation of technologists, engineers and scientists with unparalleled skills in developing advanced ceramics and nanomaterials. And three, to position Ontario as a leader in this emerging industry."
Dr. Vladimir Krstic
Director
CENTRE FOR MANUFACTURING OF ADVANCED CERAMICS AND NANOMATERIALS
Our R&D infrastructure includes:
Ontario also offers some of the most generous R&D incentives in the world.
We're actively commercializing our ground-breaking science. We have incubators, research parks and technology transfer offices throughout the province. And the Ontario government has committed $48 million over four years to help public research institutions and researchers attract pre-seed and seed investment.
| Ontario | United States | |
|---|---|---|
| Wages and salaries | X | X |
| Capital equipment | X | |
| Materials | X | X |
| Overhead | X | |
| Contract expenses | X | 65% to 75% |
"Mining Technologies International Inc. (MTI) is a manufacturer and supplier of quality mining equipment and consumable products. From our three Ontario-based manufacturing facilities we're able to service underground and surface mining operations around the globe. Our location in Northern Ontario has played a large part in our continued market expansion and growth by giving us access to a highly skilled and innovative workforce, leading-edge research facilities, competitive business costs and excellent infrastructure to get our equipment to market."
Robert Lipic
President
MINING TECHNOLOGIES INTERNATIONAL
| R&D Expenditures | R&D Expenditures at eligible Ontario research institutes1 | Non-R&D Expenditures | |
|---|---|---|---|
| Gross expenditures | $100.00 | $100.00 | $100.00 |
| Ontario - 20% OBRI Tax Credit2 | (20.00) | ||
| Federal investment tax credit - 20% | (20.00) | (16.00) | |
| Tax deduction3
| (27.30) | (21.84) | (34.12) |
| Ontario exemption of federal investment tax credit
| (2.40) | (1.92) | |
| After-tax cost of $100 expenditure | $50.30 | $40.24 | $65.88 |
Provincial and federal tax credits can cut the after-tax cost of a $100 R&D expenditure to $40.24.
When auto parts maker Meritor Suspension Systems Company (MSSC) wanted to improve its production process, it turned to Materials and
Manufacturing Ontario (MMO) for help. Through MMO-funded collaboration, MSSC worked with McMaster University researchers to develop
an improved process that added high-quality features to its main product line and signficantly reduced production costs. A division
of Ontario Centres of Excellence Inc., MMO promotes partnerships between industry and academic researchers and their goal is to
commercialize innovative technology. And it's been highly successful. Since its start in 1987, close to 600 companies and 2,400
researchers have participated in MMO projects that have resulted in hundreds of new technology licences and dozens of new companies.
"We have some of the best researchers in the world here in Ontario," says Bob Civak, MMO's Director of Commercialization and Development.
"Our goal is to move their research from the lab to the marketplace quickly - and ensure that Ontario industry stays at the leading edge."
Ontario's combined provincial and federal corporate income tax rate is four percentage points below the average of the U.S. Great Lakes states - and we're phasing out capital tax.
It's full speed ahead for Windsor-based Dieffenbacher North America, a leader in the manufacture of hydraulic press systems and complete plants for the wood, plastics, metal and rubber industries. Established in 1983 - the first international subsidiary of a German-based firm founded in 1847 - Dieffenbacher North America enjoyed steady growth throughout the 80s and 90s. In 1998, the company completed construction of a 50,000 sq. ft. manufacturing plant and two years later added a 4,200 sq. ft. parts warehouse. Further expansion is planned. "Windsor has proved to be the right spot for us," says General Sales Manager Manfred Bruemmer. "It's situated in the industrial heartland, close to the U.S. border, with an excellent transportation infrastructure. It also offers us a skilled workforce and competitive business costs."
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With just-in-time delivery the standard, location is critical - and Ontario's is ideal. In fact, for advanced manufacturers eager to enter the U.S. market, Ontario is the perfect springboard.
Among the advantages:
Our transportation infrastructure is extensive, sophisticated and integrated with the U.S.
"From modest beginnings in 1957, we've grown to become a premier supplier of innovative and cost-effective welding and metal fabricating solutions for a who's who of clients in the automotive, mass transit and aerospace industries. Windsor, Ontario has proved to be the ideal location for us, offering a skilled and loyal workforce, competitive business costs and a central location that allows us convenient and quick access to our customers. Add to that a wonderful quality of life and it's easy to see why we've never looked back."
Michael J. Beneteau
CEO
CENTERLINE (WINDSOR) LIMITED
The Windsor-Detroit border crossing is the busiest trade gateway in North America. Every day, 9,000 trucks - a quarter of all Canada–U.S. truck traffic - and $300+ million worth of just-in-time deliveries pass through it.
What's more
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Ontario is committed to staying at the leading edge in advanced manufacturing - and we've taken all the necessary steps to help companies maximize their potential.
In addition to offering smart, skilled workers and an innovative environment, you'll find we're cost competitive when it comes to:
What's more, we make it possible for companies to get up and running quickly because all the necessary infrastructure is in place and we work hard to fast track approvals.
The bottom line? Ontario is uniquely equipped to meet the needs of the fast-paced advanced manufacturing industry. We have the people. The technology. The vision. The location.
That's why we're a hub for advanced manufacturing - and the place you want to be.
"Founded in 1959 Valiant has remained headquartered in Windsor, Ontario. By seizing opportunities to innovate, Valiant has become a leading supplier of technology and tooling to the automotive, aerospace, construction and forestry industries. Ontario offers a highly educated and skilled workforce, a location in the centre of the automotive industry, competitive business costs and a transportation infrastructure that enables us to serve our customers efficiently. Ontario truly has become a hub for advanced manufacturers like us."
Gino Longo
Vice President Business Development
VALIANT MACHINE TOOL INC.
International firms establishing or expanding operations in Ontario can transfer key overseas personnel - and spouses can apply for their own work permits. This cannot be done in many countries.
When Massachusetts-based Thermo Electron Corporation, which is the world leader in analytical instruments, was looking to expand its
laboratory automation capabilities, it found what it needed in Toronto-based CRS Robotics. CRS is a world leader in designing and
manufacturing ultra-high-performance software and mover robotics, and in 2002 it became part of the Thermo family. Now known as the
Laboratory Automation and Integration part of Thermo, its advanced technologies enable life science companies to bring life-saving
drugs to market more quickly and cost-effectively - and with greater certainty. Its customers include some of the largest pharmaceutical,
biotechnological and proteomics companies in the world. "In today's competitive drug-discovery marketplace, technology that allows for
high through-put and ease of use is crucial to bringing drugs to market faster and more cost-effectively," explains Thermo Electron CEO
Marijn Dekkers. "Our customers rely on the integrated systems that CRS has brought to Thermo's portfolio of laboratory automation
products," he adds, noting that the business remains located in Toronto, where it has access to highly educated researchers and
workers, competitive business costs and a central location.
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Looking for a place to locate or expand your advanced manufacturing business? Let us help you with
The 2003 World Investment Report ranks Canada as a front-runner for foreign direct investment.
Special thanks to the following organizations for providing photos:
ATS Automation Tooling Systems Inc.
Centre for Manufacturing of Advanced Ceramics and Nanomaterials
Centerline (Windsor) Limited
Dieffenbacher North America
Ford Centre for Excellence in Manufacturing
Husky Injection Molding Systems
MDS Sciex
Mining Technologies International
NASA
Ontario Centres of Excellence Inc. – MMO
RNA Automated Systems
Thermo Electron Corporation
Valiant Machine Tool Inc.
For more information about investment opportunities in Ontario, please call us at:
1-800-819-8701 (North America)
00-800-46-68-27-46 (U.K. and Europe)
E-mail: info@2ontario.com
Website: www.2ontario.com
Ontario Investment and Trade Centre
250 Yonge Street, 35th Floor
Toronto, Ontario, CANADA
M5B 2L7
Phone: (416) 313-3400
Fax: (416) 360-1817
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