Saskatchewan Manufacturing Strategy: Policy Recommendation to Spur Manufacturing Investment, Innovation and Job Creation
Saskatchewan, February 23, 2023
Saskatchewan Manufacturing Strategy: Policy Recommendation to Spur Manufacturing Investment, Innovation and Job Creation was launched by Canadian Manufacturers & Exporters (CME).
SUMMARY OF RECOMMENDATIONS
- Growing Saskatchewan’s Manufacturing Market Share
- Adopt a comprehensive approach to supporting Saskatchewan’s strategic and emerging manufacturing sectors – building off efforts to support agri-food processing, to help achieve the government goal of doubling manufacturing export value by 2030.
- Include chemicals, fabricated metals, wood products, composites, mineral value chains, machinery and electronic equipment.
- Collaborate with industry to launch a “Saskatchewan Made” campaign to promote local manufacturing and supply chains.
- Reform provincial and crown corporation procurement policies to grow the provincial manufacturing industry while meeting competitive trade obligations.
- Adjust criteria to encompass “service after sale”, and include provincial industrial technical benefits (ITBs) (similar to other provinces and the federal government), to support competitive local procurement and drive provincial innovation, investment and job creation.
- Invest in strategic air and land transportation and logistics infrastructure.
- Encouraging Investment
- CME recommends introducing a “Saskatchewan Made” matching investment tax credit system to assist companies with plant expansion, upgrades, technology adoption, onshoring, re-tooling, improving environmental performance, and exporting.
- Reform the Manufacturing and Processing Exporter Tax Incentive
- Gives companies a tax credit based on the number of employees they hire above their 2014 employee number (provided they generate 25% of revenues from outside the province).
- Need to improve uptake without disadvantaging companies that already benefit from the program, by, for example, providing more flexibility for companies to choose the base year.
- Expand select programs available to agri-food to all manufacturing sectors
- The Saskatchewan Value-added Agriculture Incentive (SVAI) program offers a 15% non-refundable tax credit for value-added agriculture facilities that make significant capital expenditures up to $400M in value.
- The Saskatchewan Lean Improvements in Manufacturing (SLIM) program provides funding assistance to agri-businesses for adoption of best practices, new technologies, and state-of-the-art processes that improve productivity and efficiency.
- Provides 50% cost-shared funding to a maximum of $500,000 per proponent ($200k company minimum).
- Before proceeding with investments in facility modifications and equipment, a Lean Gap Analysis is required. SLIM will support 50% of Lean Gap Analysis costs to a maximum of $20,000 per project.
- Leverage provincial crown corporations such as SaskTel, SaskPower and SaskEnergy as catalysts to grow the provincial manufacturing industry.
- Work with manufacturers to update the Saskatchewan Commercial Innovation Incentive (SCII) tax exemption patent box to better enable companies to take advantage of the benefits.
- A Manufacturing Labour Force Strategy
- Support CME members in expanding efforts to attract underrepresented groups to manufacturing through training and grant programs.
- Support manufacturers in encouraging Saskatchewan’s education system to connect youth to manufacturing careers.
- Work with Saskatchewan’s manufacturers to strengthen immigration programs to meet the labour market needs of industry.
ABOUT CANADIAN MANUFACTURERS & EXPORTERS
Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and, compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports.
FOR MORE INFORMATION
Divisional Vice President
Canadian Manufacturers and Exporters