ntario's provincial government is investing C$25 million in a program designed to help small and mid-sized manufacturers create jobs and compete more effectively in the global economy. The program, called SMART, is a joint venture with the Canadian Manufacturers and Exporters (CME), about 80 percent of whose members are considered small or mid-sized. CME's members account for about 75 percent of Canada's manufacturing production and 90 percent of the country's exports. The association represents more than 10,000 companies.
      The SMART program (www.cme-smart.ca) provides up to 50 percent of eligible program costs to a maximum of $50,000 per project in three areas that can help recipients compete – lean manufacturing and process improvements, information and communications technology and energy efficiency. But the program, launched October 2nd, is no silver bullet for solving the bigger issues facing Ontario's industrial base.
      "It's a small contribution we're making to smaller manufacturers in the province that are investing in productivity-enhancing processes, energy and technology projects," says Jayson Myers, CME's president. "The Ontario government recognizes that companies know best where they need to make some of those investments, and this will see that they get some support. This program is more important now with credit market conditions getting tighter."
      Ontario is the heartland of Canadian manufacturing, adds Myers. At $300 billion, the sector in the province accounts for about 50 percent of Canada's total manufacturing base.
      "Although it's facing some hard times right now, the manufacturing sector is certainly well-developed and diversified with everything from aerospace and pharmaceuticals to some pretty innovative small manufacturers," says Myers. "What is important, looking to the future of manufacturing in Ontario, is to realize that it's the support and infrastructure and supply and services networks, and, frankly, the business leadership in the sector, which will make the biggest difference, rather than governments, which can help by making the investment environment better."       The future will largely include more of the same where the federal government is concerned, now that the October 14th election is over. Prime Minister Stephen Harper will remain in power with a slightly larger number of seats in Parliament, but still not enough to pass legislation without support from non-Conservative members.
      "It's another minority government with increased representation from Ontario from the Conservative caucus, so that will have an influence on the government," says Myers. "But frankly, on the federal level, whether it's a majority or minority government doesn't make that much difference for manufacturers. The significance of the economic challenges that are out there now and that lie ahead – and the urgency of dealing with them – are the real issue. I think we'll see the parties working together much more than before on economic policy. That's good for business and for Ontario."
      Where, specifically, should those parties focus their attention?
      "They should make sure that we have economic policies, and particularly tax policies, and investments in infrastructure that support the business investments that need to be made, including in more productive technologies and skills training and innovation," says Myers. "That gets lost in election campaigns, because everyone's talking about redistributing wealth rather than what needs to be done to create it. But that's what the commodity boom and bust lesson is here: If you're not sustaining investment in manufacturing and value-adding businesses, there's not much left over when commodity prices and asset values evaporate.
      "It will be an extremely difficult year ahead," adds Myers. "The next quarter may be okay because order books are doing well and lower commodity and energy prices will help boost cash flow. But the real issue for Ontario manufacturers is what's going to happen in the United States, because over 50 percent of what is manufactured in Ontario is exported to that market."
      Myers says he doesn't expect the federal or provincial governments to prop up the dollar or the U.S. economy.
      "But clearly they can be making strategic policy changes that make it easier for manufacturers – and any industry – to make the investments they have to make in order to compete and survive in tough times and to grow their businesses," he says.
      A CME survey of 621 CEOs of manufacturing and exporting companies conducted at the end of September found that 70 percent think Canada does not provide them with a level playing field internationally. Eighty-two percent say the next government should place a high priority on improving the efficiency and quality of service at the Canada-U.S. border. Three-fourths of the industrial leaders said reducing the regulatory impediments to shipping across the border is a high priority, and two-thirds want to see improved and expanded border infrastructure.