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NGen: Canada’s Advanced Manufacturing Supercluster
Episode 220th September 2024 • Making it in Ontario • Trillium Network for Advanced Manufacturing
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In this episode, we have a big picture discussion with Jayson Myers, the CEO of NGen (Next Generation Manufacturing Canada) and an award-winning economist, about the evolution of manufacturing in Ontario and Canada, how smaller manufacturers are finding huge opportunities as they refine their value proposition, why Ontario's unique asset mix is so powerful, and how NGen is facilitating connections within the advanced manufacturing ecosystem. 

  • 00:17 Reflecting on Episode One's Reception
  • 01:33 Trillium’s Upcoming Events and Conferences
  • 04:33 Introducing Today's Guest: Jayson Myers
  • 10:44 The Evolution of Manufacturing in Ontario and Canada
  • 16:22 Small Manufacturers Value Proposition
  • 23:14 Ontario Manufacturing’s Diverse Assets
  • 30:41 How NGen's Working to Improve Manufacturing Competitiveness
  • 35:56 Jay’s Favourite NGen Projects and NGen’s ROI

Highlighted Reports and Events

  • September 27, 2024 - Vaughan B2B: Industrial Tour vaughanbusiness.ca/B2BTour
  • October 3, 2024 - LEDC’s Manufacturing Matters Conference ledc.com/event/manufacturing-matters-2024
  • October 23, 2024 - Emerging Technologies in Automation in Windsor, ON emergingtechnologies.ca
  • October 24, 2024 - Downsview Aerospace Innovation and Research Hub’s DAIR To Innovate dairhub.com/dair-to-innovate-2024-register
  • October 25, 2024 - Ontario West Municipal Conference in Chatham, Ontario reg.eventmobi.com/OWMC
  • November 6-7, 2024 - Ontario Craft Brewers Conference in Hamilton, Ontario https://ontariocraftbrewers.com/conference/

Find Out More about Trillium

About the Making it in Ontario Podcast

Making it in Ontario is your window into what's next in manufacturing. Ontario’s economy depends on manufacturing, but the latest research reveals concerning trends that could undermine the sector’s strength—if we don’t address them. Join us as we talk to CEOs and other leaders at the forefront of the sector about productivity, strategy, talent markets and career opportunities, and the role of manufacturing in a prosperous and sustainable future.

This podcast is an initiative of the Trillium Network for Advanced Manufacturing. It’s hosted by Michelle Samson and produced by Storied Places Media.

Transcripts

Michelle Samson:

Welcome to Making it in Ontario, your window into what's next in

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Ontario's manufacturing sector from the

data driven researchers at the Trillium

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Network for Advanced Manufacturing.

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I'm Michelle Samson.

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Brendan Sweeney: And I'm Brendan Sweeney

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Michelle Samson: So Brendan, why

don't we start by talking about

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the reception of episode one.

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Brendan Sweeney: The reception's

been great so far, and it really is

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encouraging to know that, uh, one,

I guess people missed having the

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podcast, and that, uh, there are so

many people who are interested in a

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podcast about manufacturing in Ontario.

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So reception's been great.

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Um, people from within the ecosystem,

people we know, people we don't know,

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couple people have reached out saying,

"Hey, maybe I could come on the podcast".

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And what's been really encouraging as

evidenced by the number of people who

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have added me on LinkedIn in the past

few days, the record number of people,

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people are really keen on this podcast.

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So, uh, that's great.

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And we're really just getting started.

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Michelle Samson: Wow, that's incredible.

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So yeah, so we're we're aiming, short

of potentially a few disruptions, but

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we're aiming for a weekly schedule

for this podcast so if you are very

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keen, tune in on Fridays, but even

better, um, subscribe on Apple or

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Spotify to make sure that these get just

automatically downloaded to your list.

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We're also going to take a moment during

these introductions to just kind of update

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you all on what's going on with Trillium.

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So Brendan, why don't you tell

us about this busy fall season?

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Brendan Sweeney: So summer's winding down.

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I mean, the fall season is ramping

up and, and like most falls, um, that

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means there are going to be a number

of events that we're going to be

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participating in, sponsoring, speaking

at, and, here's some of the events

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that I think people might be interested

or that we're really excited about.

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September 27th in Vaughan, Ontario.

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Michelle, you're familiar

with Vaughan, Ontario and its

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Economic Development Office.

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We are, uh, sponsoring, speaking at uh, a

B2B event, uh, that's gonna feature about

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20, 22 different companies from Vaughan,

and gonna involve some plant tours.

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Uh, and there's gonna be about, I think I

counted, about 14 manufacturers involved,

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including a couple, uh, a couple big ones.

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And I'm gonna try some new material out.

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At the breakfast, and you might, it

might turn into a podcast episode about

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diversity in Ontario manufacturing.

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It's not quite what you think, so

you'll hear more about that later.

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October 3rd, London, Ontario, uh,

LEDC's Manufacturing Matters Conference.

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That conference tends to sell out.

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I think the booths are sold out

for that and I think we'll hear

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from, uh, from some pretty senior

leaders at Stellantis at that one.

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So that's October 3rd, London, Ontario,

downtown, Manufacturing Matters.

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October 23rd, Emerging

Technologies in Automation.

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And this one's in Windsor, uh, if you are

interested in automation and manufacturing

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and emerging technologies, this is it.

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If you're interested in receptions,

this one might be for you because

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we're sponsoring the reception.

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October 24th, you're going to see

things start to get busy now, Downsview

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Aerospace Innovation and Research Hub.

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Downsview, Ontario.

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If you "DAIR to Innovate",

that's where we're going to be.

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And so this is one of my favorite

aerospace focused, uh, conferences

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of the year put on by our good

friends and partners at DAIR.

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October 25th, Ontario West Municipal

Conference in Chatham, Ontario.

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Be a lot of economic developers there,

this is uh, kind of a general one,

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but there will be some manufacturing

focus, and uh, we'll be talking about

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kind of what the electrified future,

what the battery plants mean for uh,

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southwestern Ontario specifically.

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And then November 6th and 7th in

Hamilton, Ontario, in my hometown,

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Ontario Craft Brewers Conference.

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Michelle Samson: Nice.

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Brendan Sweeney: So this is a cool

one, um, and uh, lots of free samples.

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Well, not free, you gotta register.

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Uh, and so that, that's what we've got

coming up in the next couple months.

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And if you want to see

us, that's where we'll be.

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Michelle Samson: Wow.

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So that's a very busy few months

ahead, and that's a pretty broad

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window of time, several months.

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Let's narrow this back down to

what's going to be happening

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in the next 30 minutes.

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Who are we talking to

in this episode today?

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Brendan Sweeney: Uh, we're talking to

our friend and colleague, uh, Jayson

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Myers, the CEO of NGen, of Canada's

Advanced Manufacturing Supercluster.

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Michelle Samson: Amazing.

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Why do we feel like Jay is a

great guest for this podcast.

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Brendan Sweeney: Well, I mean, there

are few people in Canada who understand

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manufacturing like Jay does, he's an

economist, as you'll learn, he's an award

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winning economist, he used to be the head

of the CME of the Canadian Manufacturers

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and Exporters, and now he's, he's the CEO

of NGen, we do a lot of work together, um,

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and, you know, you'll find throughout the

episode that, uh, that Jay and I have some

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things in common and you know, there's

lots of good stuff throughout the episode.

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I really like the part of

the conversation, uh, towards

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the end of the episode.

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So listen to the end where we talk a bit

about just how diverse the manufacturing

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sector and its activities are in Ontario,

you know, Toronto being one of only

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two major metropolitan areas in North

America where there is full scale vehicle

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assembly, full scale aircraft assembly.

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If you don't know already,

you gotta listen, you'll find

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out what the other one is.

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But at the same time, Toronto is the only

major metropolitan area in North America

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that has full scale vehicle assembly,

aircraft assembly, and biomanufacturing.

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So Toronto's really unique in that regard.

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That's kind of what I

mean about diversity.

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And so Jay has some really great

ideas of, okay, what does that mean?

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How do we take all these different

capabilities, this diversity, and leverage

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it to the benefit of people in Ontario.

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Michelle Samson: Yeah, that discussion

about the unique and very powerful asset

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mix in Ontario um, really stuck with me.

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And yeah, how NGen is bringing all those

assets and manufacturers together and

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all the great work that they're doing.

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So some other work that they're doing,

along with Trillium, is uh, working

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on a report about productivity.

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What's the latest status on that, Brendan?

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Brendan Sweeney: Soon, and hopefully, uh,

hopefully in the next week or two, uh, and

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this is, I think, a really important time.

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We're talking about productivity.

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There are challenges

related to productivity.

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Those challenges are tied up

with, uh, prosperity, and it's

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a complex thing, productivity.

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And so we've got a report coming out

that I think will help people understand

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a bit better about productivity and

manufacturing and why it's important.

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Um, so we have this report coming out,

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The second part of this

podcast will accompany it.

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And that's a conversation

with Jay about productivity.

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And, as part of that, I think Jay's got

some really interesting comments about,

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uh, what universities could be doing

a bit better to support manufacturing

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in Ontario and improve productivity.

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So this is a two part episode, part

one right now, part two alongside the

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release of the productivity report.

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Michelle Samson: Part two is also going

to have some, um, some thoughts about

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what economic developers can do and,

you know, how they should be thinking

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about productivity in how they approach

supporting their local manufacturers

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and in their investment attraction.

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Brendan Sweeney: Economic

developers, listen up, cause

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Jay's got some stuff to tell you.

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Michelle Samson: That's part two.

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But for right now, we're doing

part one and, we're diving in.

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Brendan Sweeney: So Jay, before we really

get into the nitty gritty, over the

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past few years, um, we've learned that

we have a, a few things in common we

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both played junior lacrosse growing up.

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Jayson Myers: A long time ago.

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Brendan Sweeney: And you

played for Elora, Fergus?

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Jayson Myers: Elora Mohawks.

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Brendan Sweeney: Right on.

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Both have spent time in different

eras working, uh, on Longwood Road

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South in Hamilton, that's where

the NGen offices are, correct?

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Jayson Myers: Yeah.

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uh, McMaster Innovation Park, which

is a great location and, and, as

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you know, Brendan really, uh, really

growing strong there right now.

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Brendan Sweeney: And I spent time

working there about 25 years ago, uh,

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making fridges at Camco, the Canadian

Appliance Manufacturing Company.

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And we would be making

some Westinghouse products.

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And that was really, uh, my

entree to the manufacturing

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sector, or at least formally.

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Jayson Myers: Well, that's

another, uh, another connection.

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My dad used to work with Beattie Brothers,

headed up the farm lines division there,

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but of course, Beattie Brothers was

bought out by CAMCO and they moved their

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appliance division down to Hamilton.

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Brendan Sweeney: Deep

manufacturing connections here.

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And then, um, I'm an award

winning economic geographer.

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You're an award winning economist.

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So we're, we're almost, you know, we've

got some kind of connection there.

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And I've always been curious

which awards have you won or

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which are your favorite awards?

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Jayson Myers: Well, I got the,

I was awarded the most accurate

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economic forecaster in Canada.

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Many people have asked me how I did that,

what my mathematical calculations were,

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statistics and everything else, and, uh,

I have to say it was, um, a lot of it was

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just because I was speaking with a lot

of business people and, had a feeling.

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And basically that feeling proved out,

and, uh, and a lot of the other economic

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data makers and analytical, um, approach,

uh, uh, wasn't quite as accurate as

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just, uh, a good feeling and, uh,

about what was going on in the economy.

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And, uh, and frankly, that came from

a lot of discussions among business

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leaders, which I think that's the

other thing we have in common.

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We're both in really good touch with

manufacturers and with, with tech

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companies right across the province

and right across the country here.

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And it, uh, gives you better insight than

just taking a look at datasets the way

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that usual economists approach things.

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Brendan Sweeney: I mean, really

that, that is the purpose of

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this podcast, is to speak with

those leaders from manufacturing

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companies, from the ecosystem.

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And, you know, really dig in and

understand, uh, what is going on in

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manufacturing, uh, where we've come

from, where we are, where we're going.

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And so, I mean, Jay, uh, over the past,

you know, whether it's the past 25

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years, the past 10 years, the past five

years, what are your thoughts on how

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manufacturing in Ontario and manufacturing

Canada, um, has changed, has evolved?

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How'd we get here?

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What are we doing now?

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Where are we going?

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Jayson Myers: Those are big questions,

and of course it's changed a lot

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and part of it is technology.

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In many ways, manufacturing

hasn't changed very much.

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Back in the 1990s, we were looking at

the challenge of how could companies

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adopt leading edge technologies

at that time, like computers.

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How could we speed up the adoption

of software systems like CAD

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and like computer automated

manufacturing, like CNC machining.

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Today, a lot of that's just standard

tools, uh, that manufacturers are using.

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And, uh, so today as well, now we're

talking about how to speed up the

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adoption of digital technologies,

of artificial intelligence, of new

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materials and, uh, new production

systems, of automation, robotics.

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It's not so different from the discussions

that were going on in the:

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So, the technologies have changed, they

don't think the challenges have changed,

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they don't think the, the principles

of good manufacturing management have

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changed, focus on value and, and, uh, do

as much as possible to improve process.

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And to lower costs, that's, we'll get into

a productivity discussion a little bit

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later on, but that's what it's all about.

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And it just translates into good

principles, lean principles in

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terms of manufacturing management.

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So that hasn't changed either.

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But I think the marketplace

has changed dramatically.

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Uh, of course the Canada-zUS free trade

deal started things off in:

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NAFTA, bringing Mexico in, uh, in 2001,

China becomes a, a member of the WTO and

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that really shakes up the competitive

landscape for manufacturing in Canada.

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We couldn't rely on tariff barriers

at the beginning, uh, but at the same

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time it was opening up this large

market in the United States and across

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North America for Canadian companies.

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So we've seen, um, we've seen

manufacturing grow enormously, um,

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particularly in the 1990s, here as,

uh, as Canada became a really preferred

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place to manufacture in North America.

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After Mexico joins, oh, we got

a new competitor there and then

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with China, uh, in particular,

low cost manufacturing there, a

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lot of the the low cost, low value

manufacturing in Canada moved offshore.

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And, uh, in the early part of

the:

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manufacturing here in, uh, in Canada.

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We lost a lot of the electronics, uh,

industry, the IT industry, uh, here.

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We lost, uh, quite a bit of the aerospace

and automotive industry because there

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were, other places to manufacture,

but what, what was common in all of

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that is that we were losing the lower

margin part of, uh, of manufacturing

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and, and we were growing the higher

margin part, of the industry here.

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I, I think that's continued

over the last 10 years, over

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the last decade, uh, as well.

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And if there is a, a really,

really positive story about

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manufacturing and coming back to

this issue about productivity.

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It's that not only have we seen

manufacturing grow and manufacturing

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employment stabilize here in Canada, but

we've seen productivity in manufacturing

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really take off uh, since the year 2010.

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Our, our rate of manufacturing

productivity uh, is growing at over over

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twice the rate, uh, the manufacturing

productivity is in the United States.

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So we're doing something right

here and that's only going

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to continue as companies, you

know, adopt new digital systems.

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It is going to provide enormous benefits

in terms of process improvement, of

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quality improvement, uh, improving

throughput, uh, lowering costs, all of

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that's extremely important in terms of

the adoption of new digital technologies.

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But now AI, whether that is data

analytics or um, decoupling, predictive

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capabilities, or autonomy, and that's

enabling not only the development

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of new processes, but new business

models, of smart products, we're

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really into an era right now of mass

customization rather than mass production.

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And that's where we have to be

because that's where Canadian

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companies specialize.

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It's, you know, there aren't very

many companies in this country

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that rely on mass production.

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Uh, but there are a lot of companies

that really rely on working with their

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customers to specialize the products

and services that they provide.

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And, you know, companies make a

lot of money, uh, by doing that.

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So that's, that's really the

specialization in, um, uh, in Canada.

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Opening up the markets to particularly

in North America, but now also in

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Europe, uh, providing, uh, much more

of a, I guess, of a customer base to

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grow business, which is important.

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We would never be able to see the

growth we've seen in manufacturing

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and the investment in new technology,

the development of new products

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or, or manufacturing solutions here

based in Canada if we were only

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selling into the domestic market.

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We need that large access to North

American, companies, to North

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American customers, and to European

and Asian customers as, as well.

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But, of course, our major focus

has, has always been and will remain

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for some time in the United States.

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Brendan Sweeney: Within those

kind of small companies, are you

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seeing any patterns of companies

serving particular industries, uh,

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companies that are making a specific

product or finding a specific niche?

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Is there anything, you know, really

specific, really exciting that you're

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seeing as, as part of all this?

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Jayson Myers: I think today, and, and,

you know, the pandemic had a, had a

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major impact on this as well, that, um.

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We've moved away from small

companies acting simply as

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suppliers to larger companies.

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Uh, here, and there's, don't get me

wrong, uh, there's a lot of business that

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is based on that type of supply chain

relationship, and particularly in the

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large sectors in Ontario, and in food

processing, and the automotive sector,

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and the aerospace sector in particular.

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But what we're seeing today, uh, and

largely as a result of new opportunities,

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uh, largely as a result of the competitive

pressures that companies are under,

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uh, but also the ability to use new

technology, is the capability of,

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for smaller companies to really step

back and say, "well, where's our core

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competitive value proposition here?

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What can we do that is really going

to add value to, uh, to, customers?"

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And, uh, you know, in terms of the

product development, in terms of better

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ways of, uh, providing service, and it,

we're seeing more and more companies,

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smaller companies, uh, you know, look

at other, other customers in other

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markets, developing new products,

doing, you know, developing new ways

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of, doing business, which I think is

incredibly, uh, huge opportunities

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there and it's incredibly valuable for

the manufacturing sector as a whole.

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I said, I referred back to the pandemic,

the The ability of companies to pivot

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from, from manufacturing product lines

that they were manufacturing to begin to

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manufacture PPE or other products to fight

the pandemic, is a really good example

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of how flexible many manufacturers in in

the country and in Ontario have become.

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So using that flexibility or agility

to look at how could they provide

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value for other customers, and open

up new opportunities in the market

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is particularly important and will

be even more important going forward.

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I think there are two aspects of this.

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One is the development

of new companies as well.

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Uh, new technologies and, and the,

the device, the new devices, the new

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technology companies and the startups.

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We've got a pretty strong startup

base here, uh, where we're

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generating new companies, new

ways of producing new products.

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Uh, and our ability to grow those,

companies and enable them to, uh, to

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grow into bigger companies, uh, is

really changing the landscape as well.

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You know, whether that's in robotics

or new materials and, uh, or companies

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using additive manufacturing, uh,

companies that are, are producing new

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types of IT and digital technologies,

AI companies, Ontario is a real growth

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bed for those types of companies.

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And I think that's where, uh, You know,

in many cases where the future growth

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is, uh, is going to come from as well.

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You know, there, there aren't very

many locations in the world that

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have the concentration of R&D, and

technology, and startups, and existing

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manufacturing operations and such a

variety of manufacturing operations,

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uh, that we have here in Ontario.

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And it's amazingly rich province

for the manufacturing assets.

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Everything from, you know, raw

materials through to AI, through

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to leading edge digital companies,

leading edge technology companies.

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And, and, uh, of course, a really

strong uh, manufacturing sector, uh,

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of customers and of companies that

are producing products for the world.

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And of course, uh, the skills base

here too, universities and the colleges

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that we can count on here in Ontario.

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There aren't very many locations, if any,

in the world that have the concentration

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of these assets, that Ontario has.

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So, what we're trying to do at NGen,

Next Generation Manufacturing Canada,

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is to see how we can leverage this, how

we can connect all of these research and

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technology and manufacturing and skills

capabilities in the province, in the

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country, to do something that is really

amazing, to develop new solutions for

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manufacturing, new products, and to help

grow those companies from a domestic base.

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That's in my mind going to be the,

the key value adding focus for the

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:

Canadian economy, for the Ontario

economy for some time to come.

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We're not, this isn't the

post-manufacturing world, this is a

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:

manufacturing world that is growing

as a result of using all of these

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:

great technologies that in many

cases are being developed right here.

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:

So that's where I think the, uh, the

future is going and we've got a, we've

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:

got a great opportunity whether it's

in electric vehicles or just, you know,

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:

the adoption of new technologies and new

processes, uh, in fairly standard types

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:

of manufacturing operations to develop

products, to develop new ways of doing

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:

things that are really going to, you

know, in many cases, blow the lid off

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:

of, uh, competitors around the world.

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:

I had an opportunity a couple

of years ago in Germany to visit

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:

Siemens Model Company in Amberg.

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This is a totally automated

manufacturing facility and show off

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:

Siemens automation capabilities.

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:

We were taken around by the manager

there who made a comment that well,

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:

you know, "what does Canada do in

the field of advanced manufacturing,

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:

it's not really on the map, is it?"

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:

And he said this in the

middle of the factory floor.

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We're surrounded by ATS automation

equipment That's manufactured about

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:

20 kilometers away from where I live

near Cambridge, Ontario It's running

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:

on Memex operating system out of

Burlington, and it's operating on a

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:

Canadian interoperability standard.

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:

So, yeah, I would say people around

the world need to know that Canada

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:

can deliver in advanced manufacturing.

352

:

And frankly, more Canadians

and more manufacturers need

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:

to understand that as well.

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:

I, think one of the biggest problems that

we face is that this issue about who knew.

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:

Many manufacturers look around

the world for companies that could

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:

provide technology, and, you know,

maybe the capability is right

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:

down the street here in Ontario.

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:

We need to do a better job of kind of

connecting the dots, making sure that,

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:

that manufacturers, making sure that,

that Ontarians and Canadians are, are

360

:

more aware of the fabulous capabilities

we have right across the country

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:

and particularly in this province.

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:

When it comes to advanced manufacturing.

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Brendan Sweeney: Yeah.

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:

And I, I don't know if it's selling

ourselves short or if it's just

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:

not really recognizing exactly

how much we have on the ground.

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:

And we, you know, we ran at Trillium a

couple of years ago, we ran some metrics

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:

to figure out, okay, well in the 10

provinces and 50 states, who has the

368

:

most diverse manufacturing sectors and

conversely who has the most concentrated?

369

:

And Ontario was right up there at the

top with Quebec and with Pennsylvania.

370

:

Now the populous areas of Pennsylvania

are really split into two.

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:

One is on the seaboard,

one is in the Midwest.

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:

Um, but Ontario, incredibly diverse.

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:

And there are, uh, two major urban

centers, major metropolitan regions

374

:

in North America that have aircraft

manufacturing and vehicle manufacturing,

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:

Toronto and Dallas-Fort Worth.

376

:

Those are the only two.

377

:

Um, there's only one major metropolitan

area that has aircraft manufacturing,

378

:

vehicle manufacturing, and a major

biopharmaceutical manufacturing

379

:

presence and that's, that's Toronto.

380

:

And if you want to, you know, extend it

out to the GTHA, you add in a steel mill

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:

there, you add an integrated steelmaking.

382

:

That level of diversity and, you

know, if you kind of think of those

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:

as, as four of the, uh, jewels in

a manufacturing sector's crown,

384

:

Toronto-Hamilton, that's the only

area in North America that has that.

385

:

And yeah, I think to your

point about, well, the question

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:

is, how do we leverage that?

387

:

How do we, how do we use

that to our advantage?

388

:

Uh, and I guess some, that's some of

the work that you're doing, uh, at

389

:

NGen and that we're doing at Trillium.

390

:

Jayson Myers: Yeah, exactly.

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:

And I think the, you know, part of it

is just raising awareness about what

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:

all these varied capabilities are.

393

:

I would throw in food processing

as well because that's another

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:

major industry in this region too.

395

:

But, you know, it goes beyond

just the variety of manufacturing.

396

:

It's also the variety of technology

that we're developing here, uh, as

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:

well, whether that's in materials, uh,

or in robotics or automation or AI and

398

:

other IT applications, uh, this area

is, uh, and especially Ottawa, Toronto,

399

:

Waterloo area is a real hotbed for a

variety of these digital technologies.

400

:

And new technologies are quantum computing

technologies or quantum applications

401

:

may be the next realm of, of technology

and we're leaders in it, in this area,

402

:

But it's also the diversity of the

workforce, uh, here and the, the

403

:

fabulous, you know, education, the

training capabilities that are on

404

:

offer here through our educational

institutions and, uh, and the diversity

405

:

that we see, which is really amazing

when it, uh, um, both in terms of, uh,

406

:

manufacturing workforce, but of course

that diversity is, is really essential

407

:

when it comes to, uh, technology and,

and not only management of technology,

408

:

but also programming of AI, for example.

409

:

So, you know, we've got all

of these strengths in this

410

:

province, and particularly in

the GTHA, as you point out.

411

:

But it's, uh, it's so

integrated, uh, here as well.

412

:

The other point I think that's really

crucial to understand is that advanced

413

:

manufacturing capabilities today are not

built one company at a time, or one sector

414

:

at a time, or one technology at a time.

415

:

You're really looking at, um, at growing

your business, you've got to be looking

416

:

beyond the singular siloed approach.

417

:

New technologies only work with

other technologies and it's an

418

:

integrated solution that the

companies have to have to adopt here.

419

:

And often if manufacturers are looking

at adopting one technology at a time,

420

:

they, they get into real problems,

uh, because it has to be integrated

421

:

with existing systems or with other

technologies that are going to give

422

:

them the capability of actually

operating a whole full scale solution.

423

:

And of course, that has to be tied

in with skills training and skills

424

:

development and education at the same

time, and better management practices

425

:

and strategic thinking as well.

426

:

That's what NGen's focused on.

427

:

It's how do we integrate technologies

to develop really unique advanced

428

:

manufacturing solutions that can

then be commercialized across a

429

:

number of manufacturing applications.

430

:

We've got a project with ArcelorMittal

Dofasco where we're digitizing

431

:

hot ladle steel production.

432

:

So bringing in a variety of tech

companies, uh, whether that's

433

:

automation or or IOT, AI companies,

um, material science working with

434

:

DeFasco to develop this solution.

435

:

But at the end of the day,

that solution is a solution to

436

:

handle hot hazardous liquids.

437

:

And that can be commercialized

in chemical industry, in the

438

:

pharmaceutical industry, or even in

the, in the food processing industry

439

:

Brendan Sweeney: The soup industry.

440

:

Jayson Myers: The soup

industry, the stew industry.

441

:

So, you know, that, but I think that's

the type of approach, which really has

442

:

worked very well in terms of, uh, the

ability to scale up these manufacturing

443

:

solutions and provide Canadian or

Ontario solutions for the world.

444

:

That's the new way.

445

:

It's open innovation.

446

:

It's partnerships.

447

:

It's collaboration, uh, focusing

on unreal transformation that,

448

:

that, uh, makes the difference.

449

:

But all of this too, is in a backdrop

of tremendous competition of customers

450

:

that are requiring, you know, much

more stringent customer demands,

451

:

regulatory demands, customers looking

for really personalized or customized

452

:

solutions for what they want, uh,

here in a world of, of smart products,

453

:

uh, as well as, better processes.

454

:

So, you know, that's the, that's the

type of competitive environment we're

455

:

working in and, you know, we're not alone.

456

:

It's not, uh, only Ontario manufacturing

is Canadian, North American.

457

:

The competitive pressures from

China, from other Asian countries,

458

:

from Mexico, from Europe, are really

much more intense than ever before.

459

:

So as an economist, you will know

that, if you're only producing a

460

:

standard product, uh, or any product,

competitors are going to enter that market

461

:

until your profit is driven to zero.

462

:

And that's what any company has to avoid.

463

:

That's where business strategy begins.

464

:

And so, today, uh, companies have to

look at their unique value proposition,

465

:

how they can really improve the

processes to deliver that unique value

466

:

proposition, uh, and how best to use

technology in order to do that, and then

467

:

think about differentiating themselves

from, uh, from their competitors.

468

:

Companies that are taking on competition

head on are probably going to go out

469

:

of business fairly quickly, need to

find a niche in the market, we're

470

:

talking about technology, but also

about workforce capabilities, uh,

471

:

that's all necessary to do it, but it

starts with strategy, and it starts

472

:

with really good innovation management.

473

:

I really can't stress that enough,

and the fact that we have those

474

:

capabilities here and we can draw

on all of these assets really puts

475

:

Ontario manufacturing in a, really,

really good position going forward.

476

:

Brendan Sweeney: So how does NGen,

how are you at NGen working to

477

:

help improve the competitiveness

of manufacturing in Canada?

478

:

Jayson Myers: Sure.

479

:

So NGen, Next Generation Manufacturing

Canada, we're all about creating

480

:

world leading advanced manufacturing

capabilities in Canada and

481

:

making sure people know about it.

482

:

But that is a combination of things.

483

:

First of all, we raise money from

a variety of different sources, a

484

:

lot from the federal government, but

we, what we're doing is investing

485

:

in transformative manufacturing

solutions, and these solutions are put

486

:

together by integrating technology.

487

:

So all of the projects that we

invest in are collaborative projects.

488

:

They need to be developing

unique solutions that can

489

:

be applied by manufacturers.

490

:

They need to be close

to commercialization.

491

:

So we're not focusing necessarily

on R&D, although that may be a large

492

:

part of getting product out onto the

marketplace and into use by manufacturers.

493

:

What we're really focusing on is how

useful is this solution and how well

494

:

can it be commercialized and how how

quickly can we scale up some of the

495

:

technology companies working together,

uh, to provide this solution at scale.

496

:

So, that's our technology leadership

program side, but we're also, um,

497

:

partnering, investing with, uh, with

ecosystem partners, um, with business

498

:

services, with financial services,

with, uh, technology companies, with

499

:

universities, colleges, and with local

economic development agencies, with

500

:

governments as well, do a few things.

501

:

One is to raise awareness about

all these great capabilities we

502

:

have in Canada and to promote that.

503

:

Uh, so we, NGen is managing Canada's, uh,

presence at the Hanover Fair, uh, March

504

:

the 30th to April the 4th , uh, 2025.

505

:

Canada's going to be

partner country at the fair.

506

:

This is a real generational opportunity

to highlight all of the strengths that

507

:

Canada has in advanced manufacturing.

508

:

Uh, so we're, we're looking at

everything from R&D through to

509

:

unique solutions for industry.

510

:

Whether that's in energy or digital

systems or digital tools or automation,

511

:

robotics, really showcasing the

leading edge capabilities that we have.

512

:

So if anybody is interested in that,

take a look at our website we have

513

:

a lot of information about what

Hanover is all about and you can

514

:

register an expression of interest

if you'd like to participate in that.

515

:

But it is all about making, making the

case for Canadian advanced manufacturing,

516

:

and it doesn't, maybe it starts with,

uh, showcasing Canadian capabilities

517

:

at Hanover, but it doesn't end there.

518

:

This is a, this is a promotional

opportunity that we want to make sure

519

:

that we're building more awareness

right across Canada and across Ontario,

520

:

of course, about all of the great

things we have to offer in this sector.

521

:

But we also support the development

of networking together, the

522

:

connections across manufacturing

technology clusters across Canada.

523

:

How do we break down all of these

silos of, you know, we've got great

524

:

innovation centers, great clusters

of economic and technology activity.

525

:

And usually everybody's

doing their own thing.

526

:

Nobody is working together.

527

:

There's a huge amount of opportunity

to bring together, for instance, the,

528

:

um, Canadian Robotics Council with

the Ontario Wood Council, and look at

529

:

opportunities to grow the application of,

of robotics in that particular sector.

530

:

But that's only an example.

531

:

We've got, we've got right now

about 24 different clusters that

532

:

we're supporting across the country.

533

:

Uh, we're helping to invest

in, uh, Aboriginal workplaces,

534

:

Indigenous education with respect

to advanced manufacturing.

535

:

For instance, we're working on a project

with the Martin Family Initiative to

536

:

develop a manufacturing entrepreneurship

course for elementary school indigenous

537

:

students and, uh, and financial literacy

programs for Indigenous students.

538

:

And, uh, you know, it starts in

grade six where, where students are

539

:

asked to design and source materials

, manufacture, distribute, and sell pizzas.

540

:

It's the best attended course

in the school, uh, here, but it

541

:

tells a lot about manufacturing.

542

:

Uh, so, neat things like that.

543

:

I think there are an awful lot of

opportunities and, and frankly, NGen,

544

:

uh, can help to support education,

workforce development, many areas

545

:

where government cannot because of

varied jurisdictions, and because of

546

:

our focus on advanced manufacturing.

547

:

So, that's what we're, uh,

what we're looking at doing,

548

:

building up the ecosystem.

549

:

Uh, it's not just putting money

into, into industry and into

550

:

projects, it's also helping partners.

551

:

Uh, and a very large part of that is,

is identification of strategic issues,

552

:

of strategic opportunities for Canadian

companies going forward and, uh, a better

553

:

understanding of the business environment

and I think that's where, you know, the

554

:

work that we've, uh, we've done together

with Trillium is so important as well.

555

:

Brendan Sweeney: So, we're over time,

but I'm going to put you on the spot.

556

:

What's your favorite NGen

project that you've ever done?

557

:

I know they're all your favorite,

558

:

Jayson Myers: Yeah, we've got a lot of

really good ones . I'm kind of partial,

559

:

uh, because in some cases I may need

this in the future: the companies are

560

:

working together to 3D print brain tissue.

561

:

They're, I think that's a pretty, uh,

562

:

Brendan Sweeney: Yeah, I

could use some right now.

563

:

Jayson Myers: Yeah, exactly.

564

:

It's a, it's a pretty important one.

565

:

Uh, I think the biggest one's

probably ,where we've had major

566

:

impact, is in biomanufacturing and

some of the development in stem cell

567

:

therapeutic products, for instance.

568

:

But we've had 210 projects,

and it's pretty difficult

569

:

to put your finger on one.

570

:

For every dollar we've invested

so far in our technology projects,

571

:

we've realized 42 times that amount

in terms of sales, uh, both from IP

572

:

licensing as well as product sales.

573

:

We've, uh, created 66 new companies, we've

created 4,000 new jobs, over 7.2 billion

574

:

in sales and, you know, for our public

sector funders, it's nice to go back

575

:

and say, look, for every dollar of your,

of taxpayer money that we've invested,

576

:

we've returned five times that amount

back to government in terms of taxes.

577

:

So, you know, this, the strategy of

integrating technologies together and,

578

:

and making sure that they're developing

a solution that can be actually used

579

:

by manufacturers is incredibly, uh,

important and I think delivering the

580

:

types of impacts that we want to deliver.

581

:

Brendan Sweeney: I mean, it's kind

of awesome, too, that you can sit in

582

:

your office and look out the window

across the street in what used to be

583

:

the fridge warehouse for CAMCO and see

that there are new biomanufacturing

584

:

facilities being built on site.

585

:

And, uh, I think if you told the good

folks at McMaster 20 years ago, 15

586

:

years ago, um, that that was going

to be, you know, part of the vision

587

:

for this thing, they'd be astonished.

588

:

They'd say, "is that even possible?"

589

:

And I think we've proven

that it is possible.

590

:

Jayson Myers: Yeah, absolutely.

591

:

Michelle Samson: That was

Jay Myers, the CEO of NGen.

592

:

If you like this episode,

you're going to love part two.

593

:

Subscribe on Apple Podcasts or follow us

on Spotify to make sure you don't miss it.

594

:

Making it in Ontario is an

initiative of the Trillium Network

595

:

for Advanced Manufacturing.

596

:

It is produced by Storied Places Media.

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