Joel Richardson, VP CME New Brunswick, gave this presentation at the Fredericton Chamber of Commerce Distinguished Speaker Series October 26, 2015

1. October 26, 2015, Fredericton, NB
Chamber & Rotary Distinguished Speaker Series
Joel Richardson
Manufacturing
our Future

2. Canada’s largest trade and
industry association.
Over 140 years representing
employers.
1. Advocacy
2. Investment at Home
3. Trade and Business Development

3. #NBProud #NB
#NBExports
#HopeIsRestored
@Fton_Chamber @Rotary
@JoelHRichardson
@cme_mec

4. Our trade story.

5. 1850
• 73,440 square kilometres
• Over 95% forested
• Total population: 200,000
• Exports: Timber, ships, fish
• Workforce: 90% goods-
producing sector, 10%
service industry.
• After Confederation in 1867,
NB workers left declining
ports and timber towns to find
employment in the US.
• Spem reduxit (Hope was
restored)
Today
• 73,440 square kilometres
• Over 80% forested
• Total population: 752,000
• Exports: Timber, fish, energy,
minerals, paper, metal works,
machinery, food, IT,
engineering, etc.
• Workforce: 22% goods-
producing sector, 78%
service industry.
• NB workers leaving to find
employment in Western
Canada.
• Spem reduxit (Hope was
restored)

6. New Brunswick Today
1. Unemployment soaring over 20%+ in some regions with
over 40,000 residents out of work across NB.
2. Homes sold down -6.6% (-8.5% Fredericton, -24.4
North). Home value down -8.2% Fredericton.
3. Home listings at historic highs - up +10% in 2015.
4. Housing construction starts are the lowest in 20 years
below 1995 levels.
5. Manufacturing output is 10% below 2004 levels,
employment is 24% lower and the number of plants is
down by about 30%.

7. New Brunswick Today
6. Overall NB export sales were down -10.4% in 2014.
7. Average age of NB residents is now 44 from 24 in 1973
- pushing increased health care costs.
8. NB youth have a much higher unemployment rate
(17.5%) than youth across Canada (14.3%).
9. Our tourism industry including accommodations and
food & beverage has flat-lined, showing virtually no
growth.
10. Provincial government program expenditures are
rapidly outpacing revenue.

8. 7% Jan 2007
10% Sept 2015
NB Unemployment Rate

9. 10
15
20
25
30
35
40
45
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
The relationship between jobs and exports in New Brunswick
Manufacturing exports, in $millions (left axis) Employment, in 000s (right axis)
Relationship between jobs and
exports in NB
2009
1992

10. Government doesn’t create jobs.
Companies don’t create jobs.
Demand from customers for
products creates jobs.
We need to create
more demand.

12. iPhone day in Vancouver.
iPad day in China.

13. How to create demand:
Connect sellers with buyers.
– Build stronger relationships
– Think and act differently
– Satisfy the buyers 3 “needs” currencies
• Help them feel safe
• Help them feel special
• Help them save time/money

14. Develop an export mindset

15. How do you export a
haircut?

16. Where do you export
a haircut?

17. In the future, even the
smallest business will be
multinational.

18. Free Trade Agreements in Force
• Canada - Korea - January 1, 2015
• Canada - Honduras - October 1, 2014
• Canada - Panama - April 1, 2013
• Canada - Jordan - October 1, 2012
• Canada - Colombia - August 15, 2011
• Canada - Peru - August 1, 2009
• Canada - European Free Trade Association - July 1, 2009
• Canada - Costa Rica - November 1, 2002
• Canada - Chile - July 5, 1997
• Canada - Israel - January 1, 1997
• North American Free Trade Agreement (NAFTA) - January 1, 1994
• Canada - U.S. Free Trade Agreement (CUSFTA) - January 1, 1989
(superseded by NAFTA, which includes Mexico)

19. On-going FTA negotiations
• Canada - Caribbean Community (CARICOM 15)
• Canada - Central America Four (CA4)
• Canada - Dominican Republic
• Canada - India
• Canada - Israel Free Trade Agreement Modernization
• Canada - Japan
• Canada - Morocco
• Canada - Singapore
• Canada - Ukraine
• Negotiations to Modernize the Canada-Costa Rica Free
Trade Agreement

20. Exploratory discussions on-going
• Canada - Turkey Exploratory Trade Discussions
• Exploratory Discussions for a Canada-Thailand
Free Trade Agreement
• Canada-MERCOSUR Exploratory Trade
Discussions (6 South American countries)

21. Negotiated but not yet ratified
• Canada - Trans-Pacific Partnership (TPP)
Negotiations - October 5, 2015
• Canada-European Union Comprehensive
Trade and Economic Agreement (CETA) - August
5, 2014
• Canada - Ukraine - July 14, 2015

22. Return on Investment Results
Helping companies realize increased
export sales will:
Create new direct & indirect jobs
Generate GNB tax and royalty
revenue to help cover health,
education and social services.
Help families.

23. Canada is one of the most welcoming
countries in the world

24. “While New Brunswick has
contributed significantly to the
national life of Canada, it is one of
the smaller provinces and has
always occupied a lesser role in the
national economy.”

25. Our NB brand has diminished
Have-Province
Have-Not-Province
Will-Not-Province

26. We need to
manufacture our
future.

27. Let’s Get Moving and Aim Higher
1. Double manufacturing and exporting
output by 2030.
2. Invest in innovation and new product
development.
3. Develop skills and careers in
manufacturing, technology and trades for
youth, immigrants and our aboriginal
communities.

28. Let’s Get Moving and Aim Higher
4. Approve and begin major capital projects
required to transport our energy,
resources and manufactured goods to
market.
5. Explore alternative energy solutions like
natural gas and renewable technologies.
6. Ensure our business climate is globally
competitive.

29. Our Return on
Investment Goals
Most trade-friendly partner in the world
Canada’s most prosperous province
An unemployment rate of 6%
Preferred location for people to invest,
manufacture, export from, employ and grow

30. Reddita est spes
- Hope Is Restored
Spem reduxit
- Hope was restored

31. What deals are you
closing today so we
can sell more of what
we make right here
in NB?

32. Joel Richardson
Vice-President
Canadian Manufacturers and Exporters (CME)
New Brunswick and PEI
Executive Director
Metal Working Association of NB
joel.richardson@cme-mec.ca
Phone: (506) 259-0358
@JoelHRichardson