Manufacturing Projects

1.  Make Manufacturing a Priority in the Region
A coherent and integrated strategy is needed for the southwest region to elevate the awareness of the manufacturing sector to enable manufacturers to respond to the challenges and opportunities of a global marketplace.  This strategic and integrated approach requires all levels of government – when it comes to improving the business environment for manufacturers or attracting and retaining manufacturing investments in the region.  The strategy must respond effectively to the changing needs of manufacturers and should involve manufacturers, all levels of government, the schools, research centers, labor groups, supporting financial and business services, as well as the commitment of the public at large.  A committee will be formed and continue to meet to develop additional action plans and ensure the initial action plans are implemented.

Action Plan

1. The creation of a manufacturing week should be considered to highlight the broad range of manufacturing that exists in the southwest to change the perception that this industry is low-tech and to use it as a tool to reward our local players for the successes they have achieved. PROJECT IMPLEMENTED May 2006.
   
   
2. Engage manufacturers in the region to collaboratively and cooperatively purchase advertising space in major regional newspapers profiling the manufacturing industry.  These monthly profiles highlighting a manufacturing business of the week will highlight products and services produced; employment opportunities available, and trends in the industry.  Currently the Southwest Booster, Prairie Post and other newspapers in the region dedicate many pages annually to profiling the oil and gas industry.  This has worked well to build the profile of the energy sectors importance along with the opportunities that exist.
   
   
3. Implement a regional trade show for manufacturers in the southwest so companies, potential job applicants, and regional residents can become more aware of what the manufacturing industry has to offer (capabilities, skills and capacity, and economic impact).  The showcase will provide a forum that will enable southwest manufacturers to network with other manufacturers and the region at large, developing business relationships and displaying their capabilities.  (See Manufacturing Industry Final Report Appendix A-1 Reports for a detailed action plan)
   
   
4. A complete listing of municipal tax incentives for manufacturers in the region and a comparison to other provincial jurisdictions will be developed and distributed to regional manufacturers and municipal governments in the southwest.  Urban and municipal tax policies should aim at strengthening investment in innovation and new technologies through a decelerated property tax abatement / credit program on expanded facilities.  This local tax incentive would reward risk taking on the part of manufacturers (which are more capital intensive than other businesses) and bring the regions tax system more in line with the provisions and incentives offered in other jurisdictions, including the United States.  Each municipality is encouraged to have its own attractive policy dedicated to business retention, expansion and investment attraction of the manufacturing sector. 
   
   
5. Continue quarterly meetings with the manufacturing cluster / network team to work on behalf of southwest manufacturers to ensure long term competitiveness.  Government decision-making and regulatory approvals need to be less costly and timelier.  Lean management processes should be a priority and adopted to cut red tape and speed up approvals at all levels of government.  There should be greater harmonization of regulatory compliance requirements across provinces, and between Canada and our major trading partners, especially the United States.  Effective enforcement of regulatory policies is essential.
   
   
6. An annual survey referred to as “CONTACT” will be implemented to keep in touch with the needs of the manufacturing sector of the southwest region.  This survey will be customized to collect profile information (company capabilities, challenges, opportunities and trends) on the many businesses and industries that make up the sector.  Survey data will be tabulated, and recommendations made to better address the challenges and opportunities that our regional manufacturers face.  The survey will be conducted in three ways: personal visits / one on one interview, mail out, and telephone.  A task force will be set up to implement and assess the short survey.
   
   Ultimately “CONTACT” will connect with over seventy manufacturers in the region annually to:  assist in overcoming obstacles; assist with growth opportunities; provide better information and understanding to local leaders on the strengths and weaknesses of the areas business climate; express appreciation to existing firms for their important contribution to the local economy; and educate area residents about the contribution that regional manufacturers make to the economic and social well being and the quality of life of the region.
   
   
7. Industry and governments must work together to ensure that a reliable and cost-effective supply of energy is available to fuel economic growth and that the transportation and telecommunications infrastructure is expanded and upgraded to meet growing volumes of business at the speed and capacity required by modern manufacturers doing business around the world.
   

Possible Sources of Leadership:  Private Sector / Industry Champions, Support Institutions, Saskatchewan Regional Economic and Co-operative Development, Saskatchewan Industry and Resources, Cypress Hills and Southwest Regional Economic Development Authorities, Southwest Community Futures Development Corporation, Chambers of Commerce.

2.  Benchmark Manufacturing Competitiveness
Competitive advantage analysis will be conducted and used to write a detailed case study report about the sources of competitive advantage, barriers to regional economic growth, and potential avenues for public intervention.  It is therefore recommended that the region undertake a series of in-depth quantitative and qualitative institutional analysis of all regional clusters in southwest Saskatchewan.  The purpose of this study would be to identify successful examples of cluster development and related policies at the regional level which other policymakers around the province can emulate as well as identify new opportunities for public action.

• Perform in-depth qualitative analysis to develop case studies and cluster maps that analyze each cluster’s special characteristics in terms of structure, growth opportunities, and common issues on which cluster participants could collaborate.

• Examine the operation of existing regional consortium or clusters to assess their effectiveness; identify best practices from which other provincial and national clusters can learn; and recommend new opportunities for promoting inter-firm cooperation.

• Identify examples where public policy has been helpful to furthering clusters / consortia, what modifications were needed and how they came about, drawing from those lessons that might be more broadly applied in making certain public policies contribute to the economic dynamism of the cluster and well being of the communities’ residents.

Action Plan

1. Conducting Competitive Advantage Analysis (CAA) will focus on the assessment, structure and performance of a region, to identify local strengths (competitive advantages and potential for economic development; and provide a strong understanding of local economies by “mapping” the SME population in terms of their industry, location, and their linkages with each other and larger firms. 
   
   A full competitive advantage analysis would include an examination of local infrastructure, markets, labor force, amenities, access to transportation routes etc.  This analysis will also focus on examining local industries / sectors to identify leading and lagging sectors and their prospects for employment growth.  CAA classifies sectors according to their concentration of employment and assesses their growth / decline compared to provincial trends.  CAA will help identify opportunities for growing under-represented sectors that could provide required inputs for existing industries.  It can also provide insights for industry-targeting or niche marketing strategies, workforce development as well as broad community strategic planning. 
   
   Regional competitive advantage changes over time in response to new technologies, tastes and institutions.  Growth prospects also change over time in response to market forces and individual firms within an industry may exhibit employment and sales trends counter to that of the industry as a whole.  Therefore it is recommended to conduct a CAA every five years to select the appropriate industries to target, and design programs to assist specific sectors.   A consultant will be hired to perform the CAA and purchasing benchmark data from other jurisdictions will be entertained for additional comparative analysis.  The analysis will communicate how the region compares, identifying areas of strength and areas for improvement.  (See Manufacturing Industry Final Report Appendix A-2 Reports for detailed action plan)

Possible Sources of Leadership: Private Sector / Industry Champions, Support Institutions, Saskatchewan Regional Economic and Co-operative Development, Saskatchewan Industry and Resources, National Research Council, Saskatchewan Research Council, Cypress Hills and Southwest Regional Economic Development Authorities, Southwest Community Futures Development Corporation.

3.  Improve Business Services to Manufacturers
Manufacturers will need easy access to best practice and technological and management expertise from across the province, Canada as well as from other countries.  Stronger linkages reaching across institutional boundaries are needed among manufacturers, universities, colleges, and research centers.  A more strategic and integrated approach is needed in building local centers of business service excellence based on combining innovation, manufacturing strengths, and effective business support services.

Business development organizations (REDA’s, CFDC’s, Chambers of Commerce, Community Economic Development Officers, local federal and provincial department agencies as well as the private business services sector) will have to enhance their ability and work in partnership with other resources to provide the expertise and services needed by manufacturers to grow.  These business service providers will need to adjust and put together a plan to improve services to meet the current needs of the manufacturing sector.

Action Plan

1. Develop a Manufacturer’s Mentorship Council (MMC) to help manufacturers requiring assistance.  The main members of the council will involve private enterprise willing to provide their expertise and time to the initiative.  Program and resource use such as the National Research Council, and the Saskatchewan Research Council will also be utilized and strengthened in the region.  These technology liaison officers will play an important role in providing specific advice / mentorship and building linkages between manufacturers, post-secondary institutions, and research centers.  Strengthening important linkages with the national and provincial research and granting councils, the Cypress Hills College, and with industry sector organizations and private enterprise (especially those relating to the manufacturing sector), the MMC will be an effective instrument accelerating the coordination and optimization of research priorities and business management opportunities.
   
   The MMC will enable manufacturers to benefit from mentorship and the strategic advice of experts and to consider issues that will be critical to the long-term growth of their enterprise.  The MMC will be composed of ten - fifteen individuals with expertise in various areas of business management, research and development and manufacturing processes with the ability and experience in providing advice on the service areas mentioned above.  (See Manufacturing Industry Final Report Appendix A-3 Reports for detailed Action Plan).
   
   Possible Sources of Leadership:  Senior or semi-retired scientists, engineers who have demonstrated career experience in the conduct of successful research projects, government laboratories, Cypress Hills Regional College, National Research Council, Saskatchewan Research Council, Cypress Hills and Southwest Regional Economic Development Authorities, Southwest Community Futures Development Corporation, Saskatchewan Regional Economic & Co-operative Development, Saskatchewan Industry and Resources, accounting firm, law firm, marketing firm, various private enterprises and business service providers.
   
   
2. Coordinate a “learning seminar series” for manufacturers including luncheon speakers, complete workshops and short courses on the various areas of topics that manufacturers require information and assistance on to grow their business.  A schedule of workshops and learning seminars will be developed for a complete calendar year, updated and distributed in the region on a monthly basis.  This training event calendar will also include seminars that are taking place in other locations outside of the southwest region and province.  Those learning sessions to be created, customized and delivered right in the region will involve booking speakers in advance, advertising and promoting the event to manufacturers in the region.  Some learning sessions may have a registration fee to cover the cost of professional facilitation.  Other sessions will be free and utilize the expertise of federal and provincial government specialists that can speak on particular topics in question. 
   
   Possible Sources of Leadership:  Saskatchewan Regional Economic & Co-operative Development, Saskatchewan Industry and Resources, Western Economic Diversification, Southwest Community Futures Development Corporation, Cypress Hills and Southwest Regional Economic Development Authorities.
   
   
3. Conduct Export Diagnostics / Readiness Assessments for companies looking at exporting.  Also ensure the Southwest Center for Entrepreneurial Development along with its key partners becomes a one stop shop for exporting services.  To achieve this, mature partnerships need to be developed with the Saskatchewan Trade and Export Partnership and International Trade Canada.
   
   Possible Sources of Leadership:  Saskatchewan Regional Economic and Co-operative Development, Saskatchewan Industry and Resources, Saskatchewan Trade and Export Partnership, and International Trade Canada.

4.  Improve Access to Financial Capital
The southwest region needs a strategy aimed at retaining, attracting, and encouraging investments in our capacity to create wealth.  If we want to improve the region’s record of investment in process improvement and product innovation, business expansion, and global product mandates, we need a business environment that is second to none in rewarding successful risk-taking on the part of our manufacturing sector, financial sector and angel capital sector.
 
Financial institutions need to be encouraged to develop a sounder understanding of the changes, processes, and risks involved in modern manufacturing – and to structure their services accordingly, and manufacturers looking for capital need to be aware of the needs of the investor (be investor ready).  However, not all the needs of each manufacturer in the region can be met through institutional financing alone.  Therefore, additional sources of debt and equity capital need to be developed that meet the financial needs of manufacturers on a local basis across southwest Saskatchewan.

The approach taken to improve access to financial capital will involve organizing a systematic effort to assist manufacturers and industry support businesses through the financial life cycle by helping meet their needs for: financial information, expanded angel networks, and financial management.

Action Plan

1. Assemble and disseminate tools / techniques for making manufacturers investor ready, as it is determined that a major part of the problem of finding financing is related to the non-investor readiness of entrepreneurs / small and medium sized enterprises, who do not understand the needs of investors and the reality of risk financing.  These techniques delivered through workshops, seminars or round table dialogue will prepare manufacturers to present their cases for investment to angels and other sources of financing in an appealing and business-like way. (All tools will be accessed from the federal government at http://ccip.ic.gc.ca as well as the provincial government www.ir.gov.sk.ca).
   
   
2. Hold a one-day symposium “Angles on Angels”:  How to Find Money for Your Business.  The symposium will be designed for small business owners and entrepreneurs looking for financing and/or equity investment of up to $1 million.  The event will cover the financing/investment possibilities from “love money” to bank debt, quasi-equity and “going public”.  Legal issues involved with attracting angels into a business venture will also be covered.  Speakers will include a panel of local businesses that had obtained financing in various ways. 
   
   Representatives of the Business Development Bank of Canada, SaskWorks Venture Fund, Working Ventures Fund and the Golden Opportunities Fund will make presentations on their venture capital programs as well as the Saskatchewan Securities Commission.  The event will be advertised through a brochure mail drop to all manufacturers in the southwest and newspaper and radio advertising for eight weeks prior to the event.  Several press releases will be sent out along with other partner / link advertising on various sites and literature.
   
   
3. Organize a “Steps to Growth Capital” seminar.  This seminar / workshop will run on Tuesday and Thursday evenings from 6:00 p.m. to 10:00 p.m. over a four week period.  It will be advertised in the regional newspapers for three weeks and through chambers of commerce, business development organizations, along with other provincial and federal agencies.  Consultants including an accountant, a financial planner and a training course developer will be hired to deliver the seminar.  Topics covered will include: 
   
   • Methods of analysis and terminology used by potential investors in evaluating the financial state of a company.
   • An examination of why and in what circumstances companies with growing sales may need an injection of capital.
   • The introduction of tools that can help to determine how much and what kind of financing a company needs.
   • The “Steps to Growth Capital” workshop materials and course will be accessed from http://growth.ic.gc.ca
     
     
4. Coordinate investor forums for small and medium sized manufacturers to make short presentations to potential investors.  Potential angel investors will need to be identified and have a specific interest in those ventures being presented.  Invitees will be made up of four different types of people:  advisors (accountants, lawyers, consultants); financiers (lenders, venture capitalists, established investors); successful entrepreneurs; and centers of influence (politicians, prominent executives, etc.)  Advisors will be important because they often represent potential investors who don’t want their interest known.  Several presenters will be introduced through these intermediaries.  If advisors become convinced that forums work, they will refer other clients and will even occasionally invest themselves.
   
   Lenders are necessary because most venture financing is part debt and part equity.  Especially for private investors, having the support of a banker early in the process often acts as a catalyst in moving the deal forward.  It is also important bankers attend the forums because their presence can attract other participants that might not have come otherwise.  Centers of influence give the event credibility and can offer all manner of support to future endeavors.  Local politicians will be given a chance to speak briefly to build goodwill for the group.  (See Manufacturing Industry Final Report Appendix A-4 Reports for action plan detail)
   
   
5. Develop an angel investor network within the region, from whom business advice can be sought and to whom investment proposals can be presented.  The primary objective is to assist a target market of small and medium sized manufacturers with growth potential to access venture capital though angel investors.  The network would provide assistance to manufacturers with annual revenues of $250,000 or more that show growth potential, either high growth or constant growth. 
   
   This network would involve the development and maintenance of a solid roster of potential angels.  A data base would include approximately 25 angels in the region – experienced investors with an annual income of more than $100,000 and a net worth of more that $1/2 million.  To keep the network excited, the onus is put on the investment facilitators to ensure that opportunities presented for discussion at any given time are of high quality.  In the event that deals brought to the network are of poor caliber, the angel network will lose trust and participation will falter.
   
   
6. Operate and promote a worldwide Internet database network to link opportunities with investment.  This database will be broken down into two parts: firms looking for financing and risk capital investors not just restricted to the regions territorial boundaries.  Registration is free, and record validation is made by local economic development offices acting as franchisees.
   
   The southwest region has at their service, local economic development agencies or departments.  The practitioners who work there are very familiar with the local economy and have a lot of credibility in the business community.  The needs that local entrepreneurs / small and medium sized enterprises, reveal to these economic development agencies often involve financing.  The offices have the knowledge required to assess investment proposals and provide assistance to entrepreneurs.  It is recommended that economic development offices become a franchisee, promote and utilize the already existing Internet local database network called Capital Connexion http://www.capital-connexion.com (See Manufacturing Industry Final Report Appendix A-5 Reports for detailed action plan).

Possible Sources of Leadership:  Private Sector / Industry Champions, Financial Institutions, Regional Economic Development Authorities, Community Futures Development Corporation, Farm Credit Corporation, Saskatchewan Regional Economic & Co-operative Development, Saskatchewan Industry and Resources, Financial Advisors / Brokers, Legal Advisors, Chartered Accountants, Nekaneet First Nations.

5.  Improve Knowledge Infrastructure to Develop Skilled Labor
The manufacturing sector needs a better alignment of training and skills development to meet the current and future skills needs.  Tools that need to be developed to attract, retain and build human capital fall into the following types of challenges and related actions:  on the job training, alternative training, promotion of college and trades training enrollment; and better communicate a positive image of careers in manufacturing.

Addressing this challenge is complex and cannot be carried out by any single government, secondary and post secondary education institution, or industry in isolation.  It will require a coordinated effort of all three sectors working together to ensure there are enough skilled workers to get the job done.  More on the job training, expanding aboriginal involvement in the workforce, and increasing awareness among young people of opportunities in the trades are just some of the recommendations required.  There is no silver bullet, but there are some practical, concrete actions that could help alleviate the shortages.

Action Plan

1. Develop a Southwest Skills Pipeline Network.  This network will be regional in focus with a mission to ensure that the southwest region and its key industry sectors are able to obtain the skills needed for competitive growth on an ongoing basis.  The objective of the Skills Pipeline Network is to create an advantage in the ability to match skills supply to demand in this region—whether for graduates or existing workforce.  The Southwest Skills Pipeline Network will utilize the skills and support of the Labor Attraction and Retention Committee (LARC) already in place, and led by the Swift Current Chamber of Commerce and Cypress Hills Regional College.  This committee will be responsible for the following:
• Identify skill needs shared in common across industry clusters that need to be addressed.  These may be needs for preparation of future employees as well as retraining of existing workforce.  Note that recruitment of skills will certainly be part of this agenda.
• Evaluate Supply:  Ensure that the match between existing training (at all levels) and regional manufacturing cluster needs using existing courses and curriculum, but also explore new modes of delivery, timing or cost that may respond to workforce or student needs.
• Develop New Training:  Plan new curriculum to meet growing or unsatisfied demand for occupational skills—whether individual cluster or across clusters.
• Create New Certificates or Diploma:  Explore and develop new certificate or diploma programs that might create a regional skills advantage for one or more clusters.
• Ensure responsiveness:  Manage the quality of supply and demand through ongoing skills development activities.
• (See Manufacturing Industry Final Report Appendix A-6 Reports for detailed action plan)
  
  
2. It is important to change outdated perceptions of manufacturing and build interest in the extensive range of career opportunities that manufacturers offer young people today.  At the same time, high schools should be doing more to encourage and prepare students for careers in manufacturing.  Companies must contact guidance councilors to educate them on various career choices opportunities within their company.  High school tours can also be provided to educate the students and promote employment within their company.
   
   
3. Form a Business-Education Partnership.  Many communities in the U.S. have formed business education partnerships to work together on long-term education-to-employment issues such as preparing youth and underemployed groups for the workforce.  A business education partnership could work to invest in the youth and underemployed groups to ensure their readiness for skilled positions in the community.  Activities could include one or more of the following: job shadowing, plant tours, speakers in the school, mentoring, internships, apprenticeships, or summer jobs in industry for teachers.  A partnership might include K-12 school reps., key employers of skilled labor, unions, higher education institutions, chamber reps., etc.  The issues involved are complex, thus the commitment needs to be strong with a long-term perspective for a partnership to succeed.
   
   
4. Saskatchewan’s colleges and technology institutes are recognized as leaders in skills development, technical training, and tailoring programs for local needs.  But, more is needed. Training programs need to be more customized to the changing needs of manufacturing and delivered on a just-in-time basis.  Training Institutes such as the Cypress Hills Regional College and Saskatchewan Institute of Applied Science and Technology should be invited to trade shows and industry meetings to learn about the needs within the industry and the surrounding companies.  Meetings should be collectively set up between training institutes and advisory committees to discuss course planning.
   
   
5. The regions apprenticeship programs need to be strengthened by encouraging the participation of more young people in trades training, improving the delivery of training programs, providing adequate financial assistance for apprentices, and building greater support and collaboration among manufacturers and colleges.  Apprentice programs need to be expanded so that training on modern equipment can be utilized.  Many of the training institutes and technical schools do not have access to training on appropriate equipment because they often do not have the money to purchase modern equipment; therefore arrangements for classes to come in and train/expose the students to the company’s equipment can greatly improve the skills of the graduating students looking for employment.  This will give the student a chance to experience working within a regional company and increases the chances of them coming back for employment after course completion. 
   
   
6. Saskatchewan’s two universities are recognized as leaders in innovative research. But, more should be done to strengthen ties between universities and manufacturers. Stronger partnerships are needed between manufacturers and educational institutions to strengthen in-house training capabilities and provide continuing adult education and skills upgrading programs.  More practical experience for teachers and students is needed in engineering and business programs.  And, curricula should better reflect the advanced technological, management, marketing, and financing requirements of modern manufacturing.  Representatives from the manufacturing sector need to sit on the Regional Advisory Council of the University of Saskatchewan.  This council meets in Swift Current quarterly, with a purpose to improve education and program delivery of the university and to better meet the needs of the southwest region.
   
   
7. Potential employees can also be accessed by contacting immigration, local multi-cultural / aboriginal groups, and open door societies to determine if there are any members who are not utilizing their skills to full potential and would like a chance to do so.  Work with the Federation of Saskatchewan Indian Nations along with federal and provincial Departments of Immigration to target First Nations peoples and immigrants to locate in southwest Saskatchewan.  Companies will have to work through the provincial nominee program so immigration approvals can be fast tracked for skilled personnel recruited for manufacturing jobs.  Communities will have to provide incentives to encourage immigration to small communities, provide a venue for the exchange of cultural values to increase cross cultural understanding, build the foundation for minority group partnerships, and develop programming to welcome and integrate immigrants in the community. 

Possible Sources of Leadership:  Private Sector / Industry Champions, Support Institutions, K-12 School Divisions, Cypress Hills Regional College, Maverick School, Chambers of Commerce, Saskatchewan Career and Employment Services, Human Resources Skills Development Canada, Nekaneet First Nations, First Nation Educator, Friendship Center, Provincial Nominee Program, Cypress Hills Regional College.

6.  Catalyze Innovation Through Business Networks
Throw a party……If you want to stimulate innovation, gather a group of executives from growth oriented companies and buy the drinks and hors d’oeuvres so they can build relationships.  According to authors, Richard Lester and Michael Piore, innovation is a social process.  When you bring a diverse group together to discuss varied topics in a safe environment, ideas will be explored and tested leading to innovation (Harvard University Press, 2004).  Well, we may not be able to throw parties each month, but it is recommended that the region continue to support the development of functioning business networks and strategic alliances within the manufacturing sector; as well as support the education and the awareness on the importance of business networks as a strategy needed to increase productivity and capacity utilization levels, innovation and ultimately grow the manufacturing sector and regional economy as a whole.

Gauging interest in business networks will ultimately require manufacturing industries to look at the global trends that affect their industry.  Are there international competitors in the local market?  If so where are they from?  How is their performance fulfilling needs important to customers, and how fast are they improving?  What are the technological trends in the industry?  What actions will have to be taken to be competitive in ten years?  These are not easy questions to address or answer given the hectic pace of day to day concerns.  Possibly one of the best ways to get networking going is to investigate these questions, put the resources in place to get the answers, and publicize the results as widely and often as possible.  A shared understanding of real competitive concerns is the most basic motivator for modernization and networking efforts.

Action Plan

1. Continue with the Action Southwest Business Networks Coalition ASBNC, to become a service center, a strong factor creating institution for helping firms develop business networks and strategic alliances in the manufacturing sector.  The ASBNC will be responsible for:
   • Institutionalizing ongoing communication among and between firms, and with outside entities as required (such as specialists, designers equipment makers and customers).  Federal, provincial and municipal governments will continue to play a catalytic role in the ASBNC by organizing key firms, nonprofits, and public institutions to create cluster councils / networks at regional and provincial levels.  While the public sector can play a catalytic role, private sector leadership is essential in providing the necessary credibility and direction. 
   • Promote and encourage dialogue and cooperation among manufacturing cluster participants to develop a collective vision of the regional and provincial challenges and opportunities of the manufacturing sector.  These ongoing round table dialogue consultations help increase the presence of characteristics closely associated with cluster dynamism such as self-awareness and associative behavior among firms.
   • Performing the research needed, whether on new technology or international markets, in order to identify threats and opportunities for the network.
   • Utilizing what is learned about competitive barriers to organize the crucial service or services, whether through private consultants or public institutions, that participating forms need.
   • Performing shared front office functions.
   • Actively housing and managing collective investments made by the network in such things as training resources, international market databases, and possibly advanced manufacturing machinery.
     
     
2. Establish flexible business networks between manufacturers in the southwest region.  Flexible manufacturing networks have gained recognition as a new competitive model for small and medium sized manufacturing firms.  Flexible manufacturing networks encompasses many forms of cooperation, they are broken down into factor creating and production networks. 
   
   Factor Creating Networks
   
   The most basic and important type of cooperation between firms happens in factor creating networks – collective efforts to build and sustain an infrastructure of factors tailored to an industry’s needs.  The factors are made available to all participating firms no matter how small.  This activity will be accomplished through the economic development partners of the southwest working in close cooperation with local governments, educational and research institutions.  The factor creating networks will engage in several key activities, they are:
   • Put together training and apprenticeship programs, and operating training centers.
   • Investigate, introduce and even house collective investments in process technology.
   • Sponsor university (and other research institute research).
   • Work to promote quality practices and certification in the industry.
   • Collect up to date, industry specific information on international markets and competitors, performance benchmarks, technological and market trends.
   • Organize trade fairs and other broad industry marketing activities.
   • Facilitate social interaction and information-sharing among members, which may set the stage for greater collaboration.
     
   In factor creating cooperation – firms still compete fiercely, but also recognize the need to participate in continuously upgrading the pool of factors from which they draw.  The factors can be considered pre-competitive in the sense that they benefit all firms without curtailing competition.  Their purpose is to raise the standards of domestic competition so that the industry as a whole is competitive internationally.
   
   Production Networks
   
   Upon this broad solid base of specialized infrastructure, many smaller groups of firms go further, undertaking joint production and marketing work.  Each group takes its own unique, often highly fluid form, and evolves over time in response to market opportunities and demands.  This interdependence is referred to as a production network and means any group working to penetrate markets together.
   
   Production networks will involve smaller groupings of firms that build on a strong factor base and work together over time in the following ways:
   • By transforming existing supplier-customer links into partnerships designed to coordinate scheduling, product development, and process improvement efforts.
   • By combining individual specialties in order to jointly develop new products, complete product lines, or turnkey projects.
   • By penetrating distant new markets through joint marketing efforts.
     
     
   Production networks are invariably built upon an existing base of sophisticated “factor creating” networking.  Small and medium sized manufacturers without effective, broad based factor-creating mechanisms underpinning their efforts will not be successful in joint production and marketing unless they direct a considerable amount of energy toward the basic competitiveness-building work and trust building.  (See Manufacturing Industry Final Report Appendix A-8 at www.actionsouthwest.com for detailed action plan)
   
   
3. Enable business interdependence though business capacity exchange website.  An interactive website will be developed to focus on sharing and exchanging machine and labor capacity between manufacturers within the region.  The introduction of new and improved products and services, the adoption of new technologies and improved business processes, and the upgrading of employee skills – remains a priority with southwest manufacturers, although investments in innovation have fallen as cash flow has declined overall in the industry over the past three years.  The conception of this project was born out of the desire to effectively deal with the cyclical nature of skilled labor demand in the manufacturing industry.  According to Saskatchewan Industry and Resources, Saskatchewan manufacturing companies have historically operated at a 75% machine and labor capacity utilization level and fall behind the Canadian average by 6 percent in the area of innovativeness of the manufacturing sector. 
   
   Generally communities with at least 1,000 people in the labor force have a population that is large enough to attract and sustain a reasonable level of services and amenities that entice people to live in these communities.  These communities have critical mass of labor, population, services and amenities that give them the potential to grow and expand.  However the southwest has many communities that fall well below this required level of workforce, services and amenities to attract people.  This is negatively affecting employee recruitment and retention forcing some companies to move to larger centers to find skilled labor. 
   
   The capacity exchange website will create substantial benefits to both the companies and the employee by creating a consistent demand for labor as well as pulling in the labor supply.  This project is a proactive approach to business retention for rural regions, and it is hoped that the companies will realize the benefits derived from cluster co-operation in the region.  (See Manufacturing Industry Final Report Appendix A-9 at www.actionsouthwest.com for detailed action plan)
   
   
4. Develop a training program and train ten new Business Network Advisors in the region.  A training program that has been developed by Confederation College in Ontario will be customized for Saskatchewan.  The training program will ensure the success of future business network advisors in delivering effective broker services and contribute to the quality of the initiative.  Broker services need to be developed to help manufacturing firms discover what they need and where to find it.  Services include analyzing market and technology trends, encouraging cooperation and collaboration in the areas of marketing, sales, and input purchases, providing applied research, labor training, and business assistance programs.
   
   Business Network Advisors have a critical role working independently to build confidence and trust within a network, ensuring that the needs and concerns of each partner are addressed.  The business network advisor helps corporations assess their sustainability for a network strategy, assess market opportunities, identify strategic alliances, and develop a plan for growth of the business sector in question.  The business network advisors help in navigating through the network information process, from sector growth strategies, through business plan development and then to implementation.  (See Manufacturing Industry Final Report Appendix A-10 at www.actionsouthwest.com for detailed action plan).
   
   
5. Conduct 10 community informational training sessions for manufacturers to learn about strategic alliances and business networks. The purpose of the training session will be to help launch the process of forming alliances among small and medium sized businesses.  Each training session will involve working through a self evaluation guide book to determine company readiness and if business networks are appropriate for their business challenges and opportunities.  The sessions will also involve advice and direction on how to develop a functioning business network.  Toolkits will be made available for companies looking to pursue a business network.
   
   
6. Facilitate a regional manufacturing trade show event to initiate and foster networking and business-to-business relationships.  Invited participants will include local manufacturers, government and provincial purchasing groups, and other manufacturers outside the southwest region depending on the capacity.  The manufacturers showcase would be held in the region where companies from the surrounding area can display their capabilities at no cost.  This show would be used to help companies collaborate with each other on issues and form partnerships for initiatives such as flexible buyer networking so that common buying and shipping can be done collectively.  Talks and training can be provided at this show such as quality management, inventory control, purchasing practices, etc.
   
   
7. Secure program funding to help with the subsidization of private sector consulting to help companies form business networks.  A fund will be established to assist with the further development of business networks.  This fund will allow for businesses to apply for subsidization of the cost of a qualified business network advisor.  Eligible networks will include three or more companies engaged in one or more cooperative activities aimed at new business opportunities, new markets or building or maintaining a competitive edge.  (See Manufacturing Industry Final Report Appendix A-11 Reports for detailed action plan)

Possible Sources of Leadership:  Private Sector / Industry Champions, Support Institutions, Saskatchewan Regional Economic & Co-operative Development, Saskatchewan Industry and Resources, Southwest Centre for Entrepreneurial Development, Cypress Hills Regional College, Chambers of Commerce, Cypress Hills and Southwest Regional Economic Development Authorities, and Southwest Community Futures Development Corporation.

7.  Use Government Procurement to Enable Growth
Manufacturers in the region need to become more aware and active (working interdependently) in engaging procurement by governments and public agencies.

Action Plan

1. Promote and encourage southwest manufacturers to attend the annual Saskatchewan Property Management Corporation “Public Sector Procurement Showcase”.  The Saskatchewan provincial government is opening the door to public sector procurement by hosting a purchasers’ showcase.  The provincial government knows it can be daunting to find necessary time and resources to make contact with each and every public sector agency that might be able to use the products and services southwest manufacturers provide. 
   
   The purchasers’ showcase will make that task much easier by bringing together dozens of public sector agencies all under one roof.  All the manufacturers have to do is walk in the door and introduce them-self.  For Saskatchewan suppliers already doing business with the public sector, the purchasers’ showcase will provide the opportunity to find out if there are other organizations to do business with.  Also at the showcase will be free seminars and guest speakers.  To register, visit: www.spmc.gov.sk.ca/showcase
   
   
2. Work with the provincial “corporate procurement committee”. This committee consists of members from major Saskatchewan corporations, representing crown corporations, the private sector and government departments.  The members of the committee are VP’s of the purchasing division.   The mission of the Corporate Procurement Committee is to promote Saskatchewan economic growth by developing quality, competitive suppliers of goods and services in Saskatchewan.  (See Manufacturing Industry Final Report Appendix A-14 Reports for detailed action plan)

Possible Sources of Leadership:  Private Sector / Industry Champions, Support Institutions, Saskatchewan Industry and Resources, Saskatchewan Corporate Procurement Committee, Saskatchewan Property and Management Corporation, SaskTel, SaskPower, other Crowns.

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