This episode of 'Making it in Ontario' unpacks a new data bulletin by the Trillium Network for Advanced Manufacturing that examines claims that the canola industry contributes $43 billion worth of GDP to Canada's economy, more than the automotive, steel, and aluminum sectors combined. Hosts Michelle Samson and Brendan Sweeney discuss the flawed methodology that generated that total, how the Trillium Network generated a more accurate number, and the importance of responsible advocacy.
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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 is produced by Storied Places Media.
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: Alright, Brendan,
we are going to talk today about
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a recent data bulletin that the
Trillium Network for Advanced
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Manufacturing produced about canola.
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Brendan Sweeney: Yeah.
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About the economic contributions
of canola to Canada's economy.
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Michelle Samson: This would seem
like an odd choice for the Trillium
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Network for Advanced Manufacturing.
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Brendan Sweeney: It was an odd choice.
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It was really to chime in on a
narrative that's going around.
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It was advanced by a number of folks,
mostly in the prairies, including
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Saskatchewan Premier Scott Moe.
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And that narrative goes something like
this: The canola industry apparently
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contributes more to Canada's economy
than the automotive, steel, and aluminum
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and aluminum industries combined.
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And these comments are in the context
of ongoing trade disputes with China.
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Canada puts tariffs on Chinese EVs.
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China puts counter tariffs
on Canadian canola.
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And now we've got a dispute on our hands.
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Michelle Samson: Yeah.
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So I mean, data is Trillium's thing.
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It is your thing.
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So what did you make of those numbers?
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Brendan Sweeney: Scott Moe is dead wrong.
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The report that came up with those numbers
is flawed, really flawed, the idea that
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that canola, which is not unimportant,
but the idea that canola contributes more
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to Canada's economy than auto, steel,
and aluminum combined is laughable.
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Laughable.
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I mean, the idea, and we proved this
out in this data bulletin, the idea
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that canola contributes more than
automotive alone is itself laughable.
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So auto, steel, and aluminum?
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No.
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That dog won't hunt.
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Michelle Samson: Yeah.
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So how did this get on your radar?
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Brendan Sweeney: So after a couple
weeks at the cottage, I kind of
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popped my head back up to speak with
a journalist, Lorraine Sommerfeld,
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who wrote something for driving.ca,
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and that's out.
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And that was the genesis of this, so I
credit Lorraine for that because she kind
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of told me some of the numbers in our
discussion, you know, something like,
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okay, $13 billion worth of canola exports.
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$43 billion worth of GDP.
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What?
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That didn't make sense.
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If it was the other way around, maybe
it would've just been high, but it
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would've, but to turn an export based
industry, canola, that exports, you
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know, $12 or $13 billion worth of goods
every year into $43 or $44, whatever
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they said, billion dollars worth of GDP?
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That's just not right.
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So, we started digging into the data and
yeah, the canola numbers were a bit off.
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Michelle Samson: It sounds like
they were more than just a bit off.
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Brendan Sweeney: Yeah, they were way off.
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Way off.
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Like the most off I've ever
seen for these kind of numbers.
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Michelle Samson: How does
one get to be so off?
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Brendan Sweeney: Well, you use
a really wacky methodology.
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Michelle Samson: Hmm.
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Brendan Sweeney: Instead
of just going to the data.
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Instead of just saying, okay, you
know, StatsCan, tell me how many
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people this industry employs.
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StatsCan, tell me how much GDP
it contributes to the economy.
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Or even going to some of the
companies on the processing side and
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seeing how many people they employ.
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'Cause they report that out
to the government every year.
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We did that too.
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So you use a wacky, untested methodology
rather than just using the actual numbers.
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And then that just leads to errors
compounding on top of errors, compounding
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on top of errors, compounding on top
of errors, and so on and so forth.
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And you get a really, really
high number, like $44 billion.
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Michelle Samson: So if we wanna
take a generous take on this,
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Brendan Sweeney: Mm-hmm.
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Michelle Samson: You know, like
maybe dig a little bit more into,
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like, how they might have ended
up choosing this methodology and
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ending up with these numbers.
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Brendan Sweeney: So, one, I mean,
I have to kind of step back and
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say maybe they're not as familiar
with the StatsCan data as we are.
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Michelle Samson: Hmm.
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Brendan Sweeney: Maybe they're not as
familiar with, I mean, the report was
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written by a UK-based consulting company,
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Michelle Samson: Hmm.
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Brendan Sweeney: GlobalData Plc, and
maybe they're not familiar with Canada
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to the degree that we are, and StatsCan,
and systems of where you can find data.
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Where companies have to report
things to the federal government,
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and then in those reports you can
find out certain things about them,
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like how many people they employ.
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So maybe they just don't
have access to that.
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Maybe they did have access to that, and
those numbers seemed a little light to
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them for what they were being paid to do.
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Michelle Samson: Hmm.
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Brendan Sweeney: And so they wanted
to come up with better, quote
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unquote, better numbers, right?
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They wanted to really show the
higher end, the theoretical
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top end of these contributions.
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And, I guess it, like, it's so, you
know, when you do these things, is
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there a little expectation that you
exaggerate or that you, again, that you
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might use the real high end of things?
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Yeah.
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Do you exaggerate on your CV?
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Sure, a little bit.
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It's expected, you're expected to do that.
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But do you include a career on
there that you've been working at
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for 20 years that didn't exist?
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No.
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No, you don't do that.
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I don't know much about dating
profiles, but I imagine you have to
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use a photo of you that's of you when
you're younger, because photos of
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you when you're older don't exist.
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Michelle Samson: Can't argue on that.
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Brendan Sweeney: Do you use a photo
of you that's like two years younger?
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Maybe.
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Do you use a photo of you
that's 22 years younger?
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Probably not, right?
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So anyway, these numbers
is just a huge overreach.
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Threw up all these red flags.
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And when we dug in, we just started with,
okay, let's find the direct contribution.
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And we found for automotive, it's
like well over 100,000 direct jobs,
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and that's in vehicle assembly
and parts manufacturing, and $18,
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$19 billion worth of GDP directly.
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Before we put multipliers onto it.
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When we did that for canola, it was
about, you know, we took the two
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main value adding sides of canola.
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Not the indirect, not the
supply chain benefits, but the
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two main value adding sides.
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So we're doing an apples
to apples kind of thing.
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The crop production I think was about $4.5
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billion dollars.
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Okay.
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That's a lot.
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And the processing, 14 plants
in Canada, including one in
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Hamilton, including one in Windsor.
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So 14 processing facilities in Canada,
about like 1,500 employees, and maybe
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$500 million contributions to to GDP.
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So combined, you're looking at like $5
billion, and, you know, 22,000 employees.
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Michelle Samson: Big difference.
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Brendan Sweeney: Well, I mean, there is
a difference between those activities
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and the total economic impact.
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But going from $5 billion to $43
billion in GDP, and going from 22,000
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employees to 200,000 employees?
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That's just not, that's not real.
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Michelle Samson: Putting my economic
development hat on, you know, it's always
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nice when you have larger numbers to
report or you can say that your economy or
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this particular sector is really strong.
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But that being used in a marketing
context, while still not right and
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not good if it's so inflated, this
gets really dangerous when it's in
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an advocacy point of view, right?
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Brendan Sweeney: Yeah, and I mean
it's, well, when it's disingenuous.
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I think that, you know, if I am Premier
Moe, I'm having a conversation with a
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number of people right now, including
my staff, any economist that I have on
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staff, and including the people who put
this report in front of me, who put these
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numbers in front of me, and saying like,
Guys, you're making me look dumb here.
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And at a time when we're
trying to come together as one
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country, this is not helping.
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But I mean, Scott Moe didn't help himself
by comparing the canola, I mean he kind
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of started it, right, comparing the canola
thing to automotive, steel, and aluminum.
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And, you know, I think back to some
of the conversations we had with David
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Adams of Global Automakers of Canada
where he talked about what industry
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associations do, and sometimes what
they do with Trillium, and that's,
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you know, do some of this research.
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One of the reasons is that, you know,
a lot of industry associations, they'll
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get someone like us to do the work
because they just don't have the capacity
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to do it or the expertise to do it.
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Michelle Samson: Yeah.
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Brendan Sweeney: And similarly, they
increasingly rely on us, just as
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governments rely on them for this kind
of work because a lot of governments
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don't necessarily have the resources
or the capabilities to do that.
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Or even if they do, I mean, we
know that the federal government
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has certain capabilities.
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They want to make sure
things kind of line up.
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They want to do the report, then have
an independent third party do the
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report and just make sure that they're
within within a certain tolerance range.
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Michelle Samson: Right.
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Brendan Sweeney: And I think in
this case, you know, in early
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conversations with stakeholders,
there were a lot of comments to us
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kind of like, Yeah, I looked at that.
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I don't know how they came
up with those numbers.
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So thank you for adding
a corrective to this,
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Michelle Samson: Hmm.
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Brendan Sweeney: because we didn't
think it was right, but it wasn't
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really our space to call them out on it.
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It was not.
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So anyway, this is where I think we need
to, whether it's today, whether it's
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tomorrow, whether it's down the road,
engage in conversations about, okay,
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well what does advocacy look like and
what does responsible advocacy look like?
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Michelle Samson: Hmm.
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Brendan Sweeney: Because what I think,
you know, I think why we are here is
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because of irresponsible advocacy.
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I think I'd call it lavish exaggeration
that went unchecked at every stage.
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And we have at the Trillium Network
not only been there to do that kind
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of research, that economic impact
research, but also help stakeholders,
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help governments make sense of
something somebody else wrote,
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and they'll engage us to do that.
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But this one, this particular
data bulletin, just for the
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record, nobody paid for it.
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Nobody commissioned it.
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Michelle Samson: Mmm.
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Brendan Sweeney: I mean, we just
wrote it because that's what we do.
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Michelle Samson: Yeah.
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Brendan Sweeney: And last week it started
making the rounds on a couple media
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outlets, links in the show notes, and, you
know, haven't had much of a response from
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the folks, the canola stakeholders yet.
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A couple kind of prepackaged comments
that frankly were a bit trite, and just
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repeated what they did, where what we were
saying was what they did was inaccurate.
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Michelle Samson: Yeah, so we're
recording this a few days early, but,
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you know, if there are any updates
between the time of recording and
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when this is published, we'll include
that in the show notes as well.
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Brendan Sweeney: Hmm.
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And also I'd just like to say, response
to our episode last week with Norman
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Wickboldt of PowerCo, it was just great.
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00:12:06,090 --> 00:12:10,544
And, hey, maybe credit to us for
being the first with a full length
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00:12:10,544 --> 00:12:13,424
podcast with PowerCo Canada so far.
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00:12:13,484 --> 00:12:15,174
So, that's awesome.
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00:12:15,174 --> 00:12:19,427
And a reminder that if you wanna
meet some of the folks from PowerCo,
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they're sponsoring the St.Thomas
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00:12:22,657 --> 00:12:24,927
Octoberfest in downtown St.
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00:12:24,927 --> 00:12:26,337
Thomas in about a week's time.
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Links in the show notes.
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Michelle Samson: See you there with, uh...
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Brendan Sweeney: Lederhosen?
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00:12:30,935 --> 00:12:31,445
Michelle Samson: Yes.
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00:12:31,535 --> 00:12:32,395
Lederhosen!
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00:12:32,455 --> 00:12:32,695
Brendan Sweeney: Lederhosen.
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00:12:33,572 --> 00:12:34,562
Which one though?
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00:12:34,562 --> 00:12:38,249
Which lederhosen do I wear
for a September Octoberfest?
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00:12:38,715 --> 00:12:39,515
Tough decision.
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00:12:39,580 --> 00:12:41,200
Michelle Samson: You'll have
to just head over to St.
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Thomas to find out what
Brendan is wearing.
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00:12:49,327 --> 00:12:52,837
New episodes of Making it in
Ontario are published weekly.
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00:12:53,265 --> 00:12:57,675
Follow us now on Apple Podcasts or
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00:12:58,243 --> 00:13:01,423
Making it in Ontario is an
initiative of the Trillium Network
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00:13:01,423 --> 00:13:02,863
for Advanced Manufacturing.
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00:13:03,344 --> 00:13:05,714
It is produced by Storied Places Media.