COLLABORATING FOR GROWTHOpportunities for Ontario

Ontario’s Panel on Economic Growth & Prosperity

TIFF MACKLEMChair, Ontario’s Panel on Economic Growth & Prosperity

JAMISON STEEVEExecutive Director

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Ontario’s Panel on Economic Growth & Prosperity

TIFF MACKLEM (CHAIR)Joseph L. Rotman School of Management

JOHN ARMSTRONGKPMG

KILIAN BERZThe Boston Consulting Group

STEPHEN K. CARLISLEGeneral Motors of Canada Limited

MARVIN DEVRIESTrojan Technologies Inc.

SAMUEL L. DUBOCBusiness Development Bank of Canada

ROBERT HARDTSiemens Canada

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STUART KEDWELLRBC Global Asset Management Inc.ALAN N. MACGIBBONOsler, Hoskin Harcourt LLPMARCIA MOFFATBlackRock Asset ManagementTIM PENNER

JOANNA ROTENBERGBMO Financial GroupANDREA STAIRSeBay CanadaDANIEL TREFLERRotman School of ManagementANNETTE VERSCHURENNRStor Inc.

Agenda

Ontario’s economic stance has not improved

Four industries with high growth potential• Finance and Insurance • Life Sciences • Metal Ore Mining • Motor Vehicle and Parts Manufacturing

Collaborating for Ontario’s future

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The Panel measures four components of prosperity #ICPAR15@Institute_ICP

Despite comparing to new peers… #ICPAR15@Institute_ICP

…Ontario’s prosperity gap persists #ICPAR15@Institute_ICP

Ontario’s prosperity gap #ICPAR15@Institute_ICP

Closing the prosperity gap #ICPAR15@Institute_ICP

Four industries with high potential #ICPAR15@Institute_ICP

Finance and

Insurance

Life Sciences

Metal Ore Mining

Motor Vehicle and Parts

Manufacturing

Four highly productive industries in Ontario #ICPAR15@Institute_ICP

Ontario’s Economy | Four Industries | Collaborating for the Future

• Highly developed and specialized financial industry in Toronto.

• Sound financial system.• Rise in IT expenditure is

supporting innovative capacity• Labour force is well educated and

supported by a rich education system.

• Shortage of technical expertise.• Regulatory frameworks may

stifle innovation.• Lack of access to capital is

suppressing the growth of startups.

• Diversification toward international markets will help boost industry performance.

• Position Ontario as a fintechhub.

• Ontario can strive to be a leading, innovative regulator.

• Poor economic conditions • Insurance firms will need to

adapt to regulatory changes.• Financial innovation can be a

risk to the economy.

Ontario’s Economy | Four Industries | Collaborating for the Future

• Talent is at the heart of the industry.

• Government commitment to public-private partnerships.

• Strong generic drug manufacturing companies.

• Positive spillover effects between the medical devices and pharmaceutical industry.

• Canada has been unable to attract and retain R&D expenditure by global pharmaceutical companies.

• Capital needs restrict the Life Sciences industry.

• Opportunities in the medical equipment and supply manufacturing industry.

• Develop clinical trials strength.• Patent cliff is an opportunity.

Pharmaceutical companies have the potential to be disrupted by new technology.

Ontario’s Economy | Four Industries | Collaborating for the Future

• Mining safety standards in Ontario are rated among the safest in the world.

• Innovation and creativity enhance productivity.

• Productivity has been in decline.• Lack of large domestic

companies.

• Ring of Fire is teeming with opportunity.

• Innovative capacity within sustainable mining and explorations.

• The Ring of Fire has been fraught with challenges.

• Industry is susceptible to commodity price fluctuations.

Ontario’s Economy | Four Industries | Collaborating for the Future

• Part of the Great Lakes Region’s automotive cluster.

• Collaborations with world-class postsecondary research institutions.

• Highly skilled labour.• Competitive tax environment and

reliable infrastructure.

• High all-in labour costs.• Electricity costs in the province

remain a concern.• Weak and uncoordinated

investment attraction strategy.• Competitors have better access

to emerging markets.

• Ontario could become a leader in electric vehicles.

• Highly educated workforce has an advantage in producing high-tech vehicles.

• Demand for cold weather testing facilities

• North American demand is stagnating.

• Production capacity in Mexico and BRIC countries is expanding.

• Competitor regions offer aggressive investment incentives.

Lessons for Ontario

• There are many strengths among Ontario’s industries• The province’s capital investment strategy needs

improvement• Ontario has many opportunities for collaborate for

growth• A ‘skills gap’ may threaten the province’s competitive

advantage

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Recommendations

Focus on workforce development to enhance talent• Encourage high-quality experiential learning to

develop soft skills.• Encourage employers training to develop and attract

hard skills.• Improve access to childcare and settlement services

to increase workforce utilization.

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Recommendations

Increase access to capital to invest in Ontario’s industry strengths• Consider tax incentives to attract venture capital.• Explore alternative financing options to increase

access to capital.

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Panelists

REBECCA YU @RebeccaYu

Head, JLABS @ Toronto

ILIANA ORIS VALIENTE @IlianaOV

Co-Founder, Rubix by Deloitte

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Questions? Feedback? Contact us!

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