Creating a Supportive Business Environment
August 31 2016
Jim Taggart
We are constantly told that in order for the electrical industry to continue to succeed in Canada, we must embrace innovation and take advantage of disruptive technologies.
So what does being innovative mean? In my opinion, it is not just about inventing and introducing new products and services. Canadians have a track record of being great entrepreneurs and developing start-up companies. We are good at coming up with the creative ideas that can be developed into valuable new products and services. However, we are not particularly skilled at growing and taking these start-ups to the next level. Often these start-ups remain stationary and small or get gobbled up by large multi-national corporations.
We need to do a better job at nurturing Canadian start-ups to become strong global leaders. I believe that, for real innovation to occur and be implemented in the electrical industry, we need to create a business environment that supports the following:
1. attracts, retains and builds the intellectual capital and skills
2. secures the necessary capital
3. is willing to take some educated risks concerning investments
4. eliminates unnecessary government regulation
5. has a global perspective on market opportunities
If the above items are important in supporting innovation, how is the industry currently doing?
1. Attracting, retaining and building intellectual capital and skills. With our recent creation and growth of the YPN (Young Professional Network), the EFC Scholarship Program and the EPEC training, we are beginning to get some real traction in this area. — I would give us a solid B grade
2. Ability to secure the necessary capital. Due to recent global economic uncertainty, investment in the necessary machinery and equipment needed to upgrade our Canadian manufacturing has been weak. This lack of investment in advanced manufacturing has had a negative effect on recent Canadian productivity. — I would give us a D-
3. Willingness to take on educated risks in investments. In the past I have highlighted my disappointment with the lack of technical resources being utilized and added directly into our market. Too many member companies are pulling their technical resources out of Canada and are consolidating them into the US. — I would give us a D-
4. Elimination of unnecessary government regulation. Through work with government committees like the Regulatory Cooperation Council, our federal and provincial governments are starting to make real progress in this area. For example, increased communication and MOUs between Canada’s NRCan and the U.S.’s DOE have harmonized and simplified energy efficiency standards and regulation in North America. — I would give us an improving B
5. Have a global perspective on business. I’m pleasantly surprised at the number of EFC member companies (both manufacturers and distributors) that are expanding and selling into foreign markets. It is also refreshing to attend our EFC product section meetings and discover our member’s extensive knowledge of global standards and products. — I would give us a decent B
When you review the information above, you have to conclude that there is much work to be done. Specifically, we need to encourage investment and take some calculated risks in our industry; these investments will improve our productivity and allow us to be more globally competitive.
As your industry association, EFC needs to support your efforts in the above areas. We need to help you become innovation superpowers — creating wealth and more jobs within our industry.
Jim Taggart is President, Electro-Federation Canada.
