Prosperity gap in Ontario continues to grow

Even though Ontario has one of the most successful economies in the world, the prosperity gap between Ontario and other North American jurisdictions continues to grow and could widen even further in the years ahead, warns the recent annual report from the Institute for Competitiveness and Prosperity.

“Ontario’s economy is one of the world’s most successful when compared to similar regions outside North America. Ontario’s Gross Domestic Product (GDP) per capita ranks third among a peer group of 15 most populous and prosperous international regions. But against a similar set of North American jurisdictions Ontario continues to fall further behind. Two decades ago, Ontario stood close to the median of the 14 most populous U.S. states and Ontario and Quebec. It now stands second to last. This gap represents lost prosperity, which negatively affects Ontarians at all income levels,” the Task Force on Competitiveness, Productivity and Economic Progress says in its sixth annual report entitled, Path to the 2020 Prosperity Agenda.

The Task Force, a group of industry and academic leaders, chaired by Roger Martin, Dean of the Rotman School of Management, was introduced in 2001 in Ontario’s April, 2001 Speech from the Throne. The Institute for Competitiveness and Prosperity serves as the research arm of the Task Force. Both the Institute and the Task Force are supported through Ontario’s Ministry of Economic Development and Trade.

According to the report, Ontario’s GDP per capita is now $6,000, or 12%, behind the median of the 16 jurisdictions, up from the 2005 gap of $5,500 in constant dollars (2006). “Closing this gap is not an unrealistic aspiration. As recently as 20 years ago, we were in the upper half of our peer group,” says Martin.

Lagging productivity continues to be the biggest barrier to closing the gap. The Task Force points out that productivity growth is more than improved efficiency. “More important, we need to create more value that customers want in our products and services. That requires innovation and upgrading...,” says Martin.

The Task Force is proposing a wide range of initiatives to encourage and support innovation. One area of emphasis is on tax changes, the Task Force says. “A priority is to build a smarter tax system to raise motivations for businesses to invest. Canada and Ontario have among the highest tax rates on business investment in the world. The federal government is taking dramatic action to give Canada an environment more conducive to business investment. Its recent economic statement puts in place significant reductions in corporate income tax rates. Ontario needs to follow suit. It also needs to speed up the demise of the capital tax, currently scheduled to end in 2010.”

“In the scheme of things, these are easy changes to make,” says Martin. “But the province needs to take bold action in addressing a major weakness of our tax system and replace our provincial sales tax with a value added tax and then harmonize its collection with the federal GST. Our research and the research of others show that this move would stimulate investment and create jobs better than any other tax reform.”

According to the report, tax changes would help lift Ontario’s anemic business investment in productivity and wage-enhancing machinery, equipment, and software.

The Task Force also urges Ontarians to continue to increase their investment in education. Also, at the post secondary level, the Task Force recommends an examination of the balance between research and student experience in universities. “We’ve built a solid research capability in Ontario’s universities,” says Martin. “But there’s evidence that the day-to-day experience of students may be suffering from crowded classrooms and unavailable professors. We need to understand the trade-off better.”

“We are calling for a shifting of our overall attitude from collective complacency to a shared determination to close the prosperity gap. Let’s take pride in what Ontarians have accomplished; but let’s acknowledge we could do better and put ourselves on a path to achieving our prosperity potential.

“Achieving prosperity is not a problem most Ontarians are thinking about. But we are missing opportunities to realize our full potential and to ensure that we thrive, not just survive, in the globalization of our economy. Nor does the challenge of achieving higher productivity capture the public’s imagination, largely because it is associated with ideas like efficiency, downsizing, and outsourcing. But we must have the sustainable productivity growth that comes from innovation-creating unique products, services, and processes that truly add value to people’s lives. Higher productivity is our main opportunity for realizing our prosperity potential,” the report states.

Jerry Cook
Editor, MPP
jcook@clbmedia.ca

MP&P introduces fully interactive digital edition

Yesterday you should have received a special bulletin announcing the new, fully interactive Digital Edition of MP&P magazine.

Response so far has been overwhelmingly positive, I'm happy to report. The goal was to get a computer desktop, monitor-friendly version of Metalworking Production & Purchasing with plenty of internal links to navigate instantly to the content that appeals to you most.

Hotlinks are also provided to speed you to ALL the websites mentioned in the magazine, BOTH in the editorial (feature stories, news, product announcements) and the advertisements.

Please check out the digital edition for yourself and drop me a note at the address below. Enjoy!

Please email your comments to jcook@clbmedia.ca.

Mazak event offers solutions for improving competitiveness

The tour of Mazak's manufacturing facility was highlighted by the firm's latest investment in production equipment-the massive double-column Mazak Versatech V140 N with a 122 in. x 393 in. table.

A recent three-day event held by Mazak Corp. at its headquarters/campus in Florence, KY attracted approximately 2,500 attendees from across North America.

Mazak’s “Manufacturing Technologies for Global Competitiveness” event gave attendees, including customers, distributors, and press, the opportunity to experience new technologies designed to improve competitiveness in the global marketplace.

The comprehensive three-day program included tours of Mazak’s manufacturing facility, the firm’s Center for Multi-Tasking and Manufacturing Excellence, and Mazak’s North America Parts Center.

In addition, the event featured an extensive seminar program including presentations by Professor David Dornfeld, Mechanical Engineering Department chair at the University of California, Berkeley on lean manufacturing; the Society of Manufacturing Engineers on how to obtain, motivate, and keep the workforce of tomorrow; Renishaw Corp. on how to apply advanced manufacturing principles and process improvements; and Fanuc Robotics on how to maximize the productivity and utilization of a machine-tool investment.

Mazak’s Center for Multi-Tasking and Manufacturing Excellence featured 24 advanced-technology machine tools on display and under power cutting parts. “All multi-tasking is not equal,” says Brian Papke, president of Mazak. “Today, Mazak builds specific multi-tasking equipment choices for small precision components up to large aerospace and heavy equipment parts. We’re constantly refining Mazak multi-tasking technologies to make them more workable, so more industries benefit and grow stronger from “Done-in One” machining that eliminates multiple machines and multiple fixtures and completes complex parts in a single setup.”

The highlight at Mazak’s Center for Multi-Tasking and Manufacturing Excellence was the introduction of several new machines including the new Integrex i-150 designed for small parts (bar stock of 2.5 in. and below). The Integrex i-150 maximizes multi-tasking capabilities (turning, milling, drilling, tapping, boring, and more) out of a small footprint.

Another new machine shown for the first time in North America was the Hyper Quadrex 150MSY, a two-spindle, two-turret CNC turning center with milling spindle and Y-axis stroke on both the upper and lower turret. Another highlight of the tour was the Integrex e-420 H-II which features a multi-function lower turret that can be equipped with additional tools, a steady rest, or other parts support aimed at achieving process and cost savings.

The Center for Multi-Tasking and Manufacturing Excellence also featured a variety of other supplier displaying technology solutions and products including Sandvik, Kennametal, Renishaw, Fanuc Robotics, UGS/Unigraphics and others.

The tour of Mazak’s manufacturing facility was highlighted by the firm’s latest investment in production equipment-the massive double-column Mazak Versatech V140 N with a 122 in. x 393 in. table. According to Mazak, the new machine will provide improved machining productivity on large castings such as beds and columns. With a nutating head that includes B- and C-axis positioning on a 50 hp spindle, the Versatech V140N will increase processing productivity 50%.

Click on cover to view the NEW Digital Edition
November/December 2007 issue

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Automotive Parts Manufacturers Association of Canada - This site is an information resource for Canadian OEM producers of parts, equipment, tools, supplies and services to the automotive industry. www.apma.ca

Canadian Machine Tool Distributors Association - A resource for Canadian machine tool distributors. www.cmtda.com

Canadian Tooling & Machining Association - Information resource for the Canadian tooling & machining industry.
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Canadian Welding Association - Information resource for the Canadian welding industry.
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