saskatchewan.ca/investBusiness Opportunities for you

Scott Summach, Deputy Director InvestmentMinistry of Trade and Export Development

Government of Saskatchewan

FertilizerFuelFood

Area: 651,036 km2 (251,366 mi2)

Twice the size of Japan

Almost the size of Texas

Agriculture covers most of the other half —

18 million hectares.

Forest covers halfthe province —

34 million hectares

The Saskatchewan Advantage

• Record-breaking population growth

• Saskatchewan’s population is at an all-time high

• 1,178,657 people as of October 2019.

1,118,181 1,127,773 1,143,480 1,156,964 1,168,423

Saskatchewan Quarterly Population Estimates

Source: Statistics Canada, Table 17-10-0009-01.

The Saskatchewan Advantage

Average, $14,178 Average, $14,178

0

5,000

10,000

15,000

20,000

25,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* 2019**

$ M

illio

ns

Saskatchewan Capital Investment

Other Mining, oil and gas (including support activities) Utilities and construction Average

*Preliminary, **ForecastNote: Investment by sector/industry does not add to total investment because of missing data in some sectors.Source: Statistics Canada, Table 34-10-0035-01.

A Leader in Economic Growth

Tripled Export Growth

The value of exports

reached $30 billion in

2019.$16.4B

$35.4B $30.6

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Saskatchewan Exports

Source: Industry Canada, Trade Data Online.

Strong, Diverse Sectors

Agriculture, 8.4%

Mining and Oil and Gas, 27.1%

Manufacturing, 6.7%

Construction, 7.2%

Services, 48.3%

Industry Share of Real GDP at basic prices, 2018

Source: Statistics Canada, Tables 36-10-0402-01 & 36-10-0434-01 (Formerly Cansim 379-0030 & 379-0030)

Ministry of Trade and Export Development

• 4 Divisions

1. International Engagement

2. Economic Development (Indigenous Economic Development)

3. Strategic Policy and Competitiveness

4. Marketing and Communications

Provincial Government Support The Government of Saskatchewan welcomes investment inmanufacturing and processing and provides assistance fornew and existing investors:

• Assist in identifying potential sites and potential partners to ensure companies meet their corporate objectives;

• Facilitate introductions to federal, provincial, and municipal stakeholders to help expedite the projects; and,

Agriculture and Agri-value

• 43% of Canada’s cultivated farmland

• 10% of the world’s wheat

• Top exporter of lentils and chick peas

• Strong agri-value sector – pulse crop and food processing

Investment Opportunities

• Market growth areas:– Meat Products

– Plant Based Foods

– Health & nutritional foods (functional foods)

– Ingredient supplier market

– Convenience foods

– Frozen and refrigerated food

– Organic Foods

– Non-Food products like Hemp and flax fibre, Pharmaceuticals

Energy & Minerals

• Saskatchewan is the second-largest producer of crude oil in Canada (after the province of Alberta), accounting for approximately 17 per cent of total Canadian oil production.

• Approximately 65-70% of Saskatchewan’s crude is exported to the United States making the province a larger exporter to the U.S. than the country of Kuwait.

• And the province is the third-largest producer of natural gas in Canada (after Alberta and the province of British Columbia).

• Largest producer of potash & 2nd largest producer of uranium in the world

Processing and converting Saskatchewan’s primary energy resources (oil, gas, coal) into valuable products such as diluent, synthetic crude oil, low sulfur diesel, hydrogen, electricity, and steam

Examples of value-added energy includes upgrading, refining, gasification, GTL, micro LNG, coal to liquids, supply chain

Value-added diversifies our economy through innovation, creates new jobs, produces new products and creates new markets, and develops supply chain opportunities

Opportunities

Exploration -- geology, camp/lodging, field services, drilling, transportation, communications, freight

Projects (new mines/expansions)

Establish Infrastructure – water, waste disposal, catering, camp accommodation, janitorial, pest control, medical, security, internet/phone, storage shelters

Construct Surface -- road/site preparation, concrete, steel & fabrication

Construct Underground -- electrical, pumps, piping, valves & fittings, equipment, conveyers, rock tools/drills, cranes, hydraulic motors

Operations – HR, maintenance, logistics, environmental

Supply Chain Opportunities

Forestry

• Key wood products include: dimensional lumber, pulp, plywood, oriented strand board, treated posts, and secondary products, such as furniture, cabinets, millwork and flooring

Photo via Logging and Sawmilling Journal

Manufacturing

• Saskatchewan’s manufacturing industry represents $17.6 B in shipments

with 29,000 employees and $11 B in total exports and the overall sector

represents 6.7% of the provincial GDP.

• Manufacturing in the province includes agricultural machinery, transportation

and industrial equipment, food an beverage processing, Metal and wood

fabrication, structural steel and chemical manufacturing.

• Emerging clusters include aerospace and defense, unmanned aerial vehicles

and drones, automotive accessories, renewable energy components for

Wind, Hydro and Solar projects.

Manufacturing Investment Opportunities

MTIE

Farm &Ag. Processing

Machinery

ConstructionEquipment

TransportationEquipmentAutomotive &

Accessories

MiningEquipment

Oil & Gas Equipment

EnvironmentalEquipment

Bio-MedicalDevices

Wind PowerMachinery

SpecialtyVehicles

Aerospace & Defense

Did you know? But did you know that Saskatchewan also

produces:

– Military and specialty vehicles i.e. ambulances, highway trailers, ground transports, recreational vehicles, unmanned vehicles and automotive accessories

– Industrial building systems

– Satellite and landline communications technology

– CATV and wireless telecom products

– Military ship communications and components

New and Emerging Sectors

Photo via Draganfly Innovations

• Saskatchewan’s aerospace and defence companies have proven themselves to be world-class suppliers to international space agencies as well as aerospace and defense contractors

• From pickup truck lids and front-end steel grilles to specialized military vehicles, our manufacturers are expanding into the specialty automotive and automotive accessory industry

The Saskatchewan Advantage• In the past few years, the Saskatchewan

government has created one of the most competitive business climates in North America:

• Lowered the corporate income tax by 5 points

• Eliminated the general corporate capital tax

• Introduced the largest single-year personal income tax reduction

• Competitive tax incentives:

– 6% M&P investment tax credit

– Saskatchewan Value-Added Agriculture Incentive, Steel and Fertilizer Value-Added Incentives

Government Committed to Growth• Offers programs to encourage the development and commercialization

of new technologies --100% of eligible R&D expenses can be used against net income for the purpose of calculating federal tax credits

• 10% of qualifying R&D expenditures incurred by corporations with a permanent establishment in Saskatchewan. For Saskatchewan Canadian-controlled private corporations, the credit is refundable on the first $1 million of qualifying annual R&D expenses

• Canada-Saskatchewan Job Grant

• Saskatchewan Commercial Innovation Incentive

• Saskatchewan Trade and Export Partnership (STEP)

Government Committed to Growth• Revamping Government Procurement with creation of Priority

Saskatchewan and the introduction of Best Value Procurement.

• Emphasizing engagement of Sask-based Aboriginal groups in Government Procurement process based on best practices.

• Renewed focus on trade agreements and how we can use them to promote our local suppliers through initiatives like the Saskatchewan Corporate Procurement Committee.

Corporate Procurement Committee

• The Ministry of Trade and Export Development chairs the provincial Corporate Procurement Committee (CPC)

• The CPC consists of members from major Saskatchewan corporations representing the Crowns, the private sector, and government departments.

CPC Members

• SaskPower

• SaskTel

• SaskEnergy

• SaskWater

• SGI

• Sask Gaming Corporation

• Information Services Corp.

• Ministry of Central Services

• Ministry of Highways & Infrastructure

• Sask Research Council

• City of Saskatoon

• Crown Investments Corp.

• CAE

• SaskBuilds/Priority Sask

• The Mission of the Corporate Procurement Committee is to promote Saskatchewan economic growth by developing quality, competitive suppliers of goods and services in Saskatchewan.

CPC Mission Statement

CPC Goals and Objectives

To maximize Saskatchewan content in the acquisition of goods and services in accordance with trade agreements

To increase awareness of Saskatchewan supplier capabilities

To encourage the export of goods and services by Saskatchewan suppliers

CPC Goals and Objectives

To identify opportunities to Saskatchewan suppliers (Renewable energy production and water/waste water production)

To maximize Aboriginal content in the acquisition of goods and services

To encourage the implementation of Quality Assurance Programs by Saskatchewan suppliers.

CPC Action Plan

• Meet as a committee 4 times per year

• Share information on suppliers, new products, success stories, and Saskatchewan content statistics

• Visit supplier facilities in conjunction with meetings and hold Supplier Open Houses

CPC Success Stories

• Grit Industries – pipeline heaters for SaskEnergy

• Saskatoon Machine Works – pedestals for SaskTel, SaskPower

• Country Leather – manufacture of leather gloves for SaskPower

• Crestline Coach – manufacture of specialty vehicle for Casino Regina

• SaskPower developed Montrose Metals near Donovan to fabricate cylindrical buried cable warning markers among other line hardware items. SaskTel and SaskEnergy also purchase warning signs and sign posts from Montrose Metals.

• Vermette Wood Supply – wood power poles for SaskPower

Next CPC Meetings

June 2020 in Moose Jaw

September 19-20 , 2020 in TBD

November 26, 2020 in Regina

March 2021 in Saskatoon

Interested in presenting to CPC or giving us a tour of your facility? Call Scott Summach at 306-221-6184

SaskTenders.ca

• One website where all crown corporation procurement competitions are posted

• Create an account for your business and sign up for email notification of procurements

• Manuel and Procurement Training modules available

Sask Builds

• SaskBuilds leads the delivery of large and complex infrastructure projects for public sector clients, coordinates long-term integrated capital planning for executive government and drives public procurement modernization to support the province’s growth and the quality of life of its people.

• Single Desk Procurement for Executive government and all government Ministries

Priority Saskatchewan

• A division of SaskBuilds that is responsible for ensuring procurement across ministries and the Crown sector is fair, open, transparent, and based on international best practice.

• Priority Saskatchewan is committed to ongoing consultation with industry and stakeholders and continuous procurement improvement.

• Currently working on Indigenous and Metis procurement strategy

Federal procurement

The federal government’s Industrial and Technolgy Benefit (ITB) policy is designed to bring highly technical and highly skilled work to Canadian companies and educational institutions.

Winners of large defence contracts must spend the contract equivalent in Canada either directly in the form of suppliers to the project or indirectly, through research and investment in high tech areas.

Opportunities

• Government of Saskatchewan works to promote Saskatchewan manufacturers, research institutions, and technical institutes to the aerospace and defence sector

• We introduce Saskatchewan companies to the prime contractors, arrange visits by contractors to Saskatchewan, and act as a liaison between Saskatchewan industry and the international industry to seek business opportunities.

Promoting the Sector

• Exhibit at strategic industry trade shows – DEFSEC (Halifax, September 2020

– Saskatchewan Aerospace and Defence Forum (March 2021)

– CANSEC (Ottawa, May 2021)

– AI summit (London, June 2021)

– Eurosatory (Paris, June 2021)

• Organize supplier events with our partners (Innovation, Science and Economic Development, Global Affairs Canada, WED, STEP, and SAC)

Manufacturers Guide

• Over 1300 companies are currently listed

• free of charge to any manufacturer that manufactures at least 51% of the product in Saskatchewan

• Guide is searchable by company name, product and location

• Used by purchasers to find suppliers

• http://www.economy.gov.sk.ca/mfgguide

Contact

• We are here to meet with anyone that is interested in investing in Saskatchewan, please contact:

Scott Summach, Deputy Director Investment, Manufacturing

306-221-6184

scott.summach@gov.sk.ca

International Engagement

Ministry of the Trade and Export Development