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To learn more about Knowledge Edge, log on to the Tooling U website and request a demo of the subscription-based service.

Released by industry association Sous-Traitance Industrielle Québec (STIQ), the Baromètre industriel québécois study found 56 per cent of small- and medium-sized manufacturers in the province experienced revenue growth of at least five per cent last year.

Those numbers matched the study’s 2011 results, according to STIQ.

The study found 36 per cent of SMEs increased their respective number of employees by five per cent in 2012.

2012 was a very active year for many Québec-based prime contractors, especially in industries with highly-structured supply chains, such as aeronautics, transportation, mining and electrical energy.

The study shows manufacturers were able to capitalize on this dynamism and increase their sales volumes with prime contractors.

In 2012, 44 per cent of SMEs attributed more than 25 per cent of their sales to prime contractors, compared with 36 per cent in 2011.

Meanwhile, 49 per cent of respondents saw at least a five per cent rise in sales attributable to prime contractors, against 44 per cent in 2011.

Despite the solid numbers, SMEs in Québec could have sustained even higher growth in 2012 by investing more in research and development and acquiring advanced equipment, according to STIQ.

Only 55 per cent of firms invested more than two per cent of their revenues in R&D, while 68 per cent spent more than two per cent on equipment purchases.

In its export forecast for the province, Export Development Canada (EDC) said huge increases in B.C.’s global exports in 2013 and 2014 will push it to the top of the pile.

Delivering the forecast in back-to-back speeches in Victoria, B.C., and Vancouver, EDC chief economist Peter Hall predicted the province’s exports will grow by 11 per cent this year, followed by another 12 per cent in 2014.

“British Columbia’s exports are on track for a vibrant expansion, sharing top spot among the provinces with Nova Scotia,” Hall said. “B.C. is enjoying an exceptional recovery in forestry and very strong gains in ores and metals. Following recent ups-and-downs, B.C. is in an international sales sweet spot this year and next.”

The forestry sector accounts for approximately 32 per cent of the province’s international sales, the largest share of B.C.s total.

Hall predicted that provincial exports of forestry products will grow by 25 per cent in 2013 and another 17 per cent in 2014, this after only two per cent growth in 2012.

“Forestry exports are set to experience impressive growth, with demand and prices for lumber driven upwards by rising U.S. housing starts that are expected to expand by 34 per cent in 2013 and 24 per cent in 2014. Those are big numbers,” Hall said.

“The recovery of China’s construction sector will also add momentum. Looking forward, though, supply constraints will start to emerge after 2014, suggesting potential for significant investment in lumber capacity.”

The energy sector is also an important contributor to the province’s export picture, accounting for 27 per cent of total international sales.

EDC’s forecast predicts a four per cent decline this year, ahead of 10 per cent growth in 2014.

The forecast also noted that the recovery in the United States will mean solid growth for the province’s machinery and equipment producers and agri-food sales through 2014.

Nationally, Canadian merchandise exports are forecast to rise nine per cent in 2013 and five per cent in 2014, while economic growth (GDP) is expected to rise 2.2 per cent this year and 1.9 next year.

EDC is forecasting global growth of 3.5 per cent in 2013 and 4.2 per cent in 2014.

TORONTO — There are almost 300,000 unfilled private sector jobs out there and manufacturing is among the sectors with the highest number of vacancies, according to data compiled by the Canadian Federation of Independent Business (CFIB).

The Toronto-based CFIB, which represents small and medium-sized businesses, reports the percentage of unfilled jobs remained steady at 2.5% in the first quarter of the year, representing approximately 295,000 full- and part-time positions.

“As the economy has improved and unemployment has come down, companies, particularly smaller companies, have struggled to fill open jobs,” says Ted Mallett, CFIB’s chief economist and vice-president. “While unfilled jobs may seem harmless, they represent missed opportunity for business and the economy.”

The highest vacancy rate occurs in businesses with fewer than 19 employees, while those with 500 or more employees had the lowest (1.6%).

The highest numbers of actual jobs available are in manufacturing, hospitality, retail, and construction with 30,000 to 40,000 job openings across the country.

The construction industry has the highest vacancy rate (3.6%), although that rate is dropping.

Declines are noted in oil and gas (2.4%), information arts and recreation (2.2%), retail (2%) and hospitality (2.6%). There have been modest increases in agriculture (2.9%), transportation (2.5%) and social services (2.2%).

Saskatchewan has the highest vacancy rate (3.9%), followed by Alberta (3.7%) and Newfoundland and Labrador (2.9%). BC and Quebec fall within the national average (2.5%), while while Manitoba (2.3%), Ontario (2.1%) Nova Scotia and New Brunswick (1.9%) and PEI (1.5%) fall short.

The CFIB noted the federal government’s planned changes to the Temporary Foreign Worker (TFW) program could make it even harder for smaller firms to find needed staff.

“Smaller businesses structurally have higher vacancy rates,” says Mallett. “The TFW program has been one way for these businesses to fill openings that they could not fill otherwise. Ironically, it was problems at larger firms that prompted changes to the program, yet it is smaller companies with legitimate challenges that will bear the brunt of the impacts.”

First quarter findings are based on 2,909 responses, collected from a stratified random sample of CFIB members, to a controlled-access web survey.

Click here to read Help Wanted: Private sector job vacancies in Canada Q1 2013.

In Edmonton to deliver a provincial export forecast, Export Development Canada (EDC) chief economist Peter Hall predicted Alberta’s exports will surge by nine per cent in 2013 and another six per cent in 2014.

“Alberta’s export story over the next two years will be determined by both the capacity to ship crude oil and pricing of natural gas. Conditions will be helped by a dollar that’s eased back from parity,” Hall said in his forecast to Canadian Manufacturing and Exporters (CME) members.

The energy sector dominates Alberta’s exports, accounting for approximately 73 per cent of the province’s total international sales

Hall predicted that provincial exports of energy products alone will grow by nine per cent this year, followed by another seven per cent in 2014.

Those numbers will come, he said, after the energy sector experienced growth of only two per cent in 2012.

“While global crude prices have stabilized, Alberta’s crude has been sharply discounted because of tight transportation capacity constraints,” Hall said.

According to Hall, the price gap between West Texas Intermediate and Western Canadian Select crude earlier in 2013 averaged around $20 per barrel, which adds up to about $16-billion in annual losses.

While a combination of increased rail capacity and Canadian pipeline repurposing has boosted shipments and arrowed the price gap, Hall said capacity constraint still pose a threat to the sector.

In other areas, the continued economic recovery in the United States is expected to help the machinery/equipment and forestry sectors, with industrial activity in the U.S. spurring equipment sales and a resurgent U.S. housing market boosting lumber exports.

EDC’s forecast noted that other export categories will perform well this year, but 2014 will be more of a mixed outcome.

Fertilizer prices are predicted to slip a notch, even though Alberta is expected ship more this year.

Metals and minerals will be up considerably in 2013, but chemicals will grow at a slower rate.

Nationally, Canadian merchandise exports are forecast to rise nine per cent in 2013 and five per cent in 2014, while economic growth (GDP) is expected to rise 2.2 per cent this year and 1.9 next year.

EDC is forecasting global growth of 3.5 per cent in 2013 and 4.2 per cent in 2014.

The agency says the decline largely reflects lower sales in the petroleum and coal product and in the chemical manufacturing industries.

Excluding these industries, Canadian manufacturing sales rose 0.3 per cent.

Overall, sales declined in 10 of 21 industries, representing approximately one-third of Canadian manufacturing.

Sales of non-durable goods declined 0.8 per cent to $24.4-billion and were partially offset by a 0.2 per cent increase in sales of durable goods.

Sales fell in six provinces in March with most of the decreases reported by manufacturers in New Brunswick and Saskatchewan.

Sales jumped 30.7 per cent in Newfoundland and Labrador and there was very little change in the sales in other provinces.

Expanded drilling is unlocking enormous reserves of crude oil and natural gas, offering the potential of moving the country closer to its decades-long quest for energy independence. Yet as the industry looks to profit from foreign markets, there is the spectre of higher prices at home and increased manufacturing costs for products from plastics to fertilizers.

Companies such as Exxon Mobil and Sempra Energy are seeking federal permits for more than 20 export projects that could handle as much as 29 billion cubic feet of natural gas a day.

If approved, the resulting export boom could lead to further increases in hydraulic fracturing, a drilling technique also known as fracking. It has allowed companies to gain access to huge stores of natural gas underneath states from Colorado to New York, but it also has raised widespread concerns about alleged groundwater contamination and even earthquakes.

The drilling boom has helped boost US natural gas production by one-third since 2005, with production reaching an all-time high of 25.3 trillion cubic feet last year, according to the US Energy Information Administration.

In recent months, however, production has begun to level off as the glut of natural gas keeps US prices down. In response, producers have begun pushing to export the fuel to Europe and Asia, where prices are far higher.

Approval of all the projects currently under review by the Energy Department could result in the export of more than 40% of current US production of liquefied natural gas, or LNG, which is gas that’s been converted to liquid form to make it easier to store or transport.

US officials also must consider competition from countries such as Canada and Australia, where new LNG export terminals also are being proposed. The facilities cost billions of dollars and take years to complete.

The prospect of a major expansion of US gas exports has tantalized business groups and lawmakers from both main political parties, and they’re urging the Obama administration to move faster to approve the projects as a way to create thousands of jobs and spur economic growth. Increased exports also would help offset the nation’s enormous trade deficit.

But consumer groups and some manufacturers that use natural gas oppose expanded exports, saying they could drive up domestic prices and make manufacturing more expensive. Many environmental groups also oppose LNG exports because of fears that increased drilling could lead to environmental damage.

“Exporting natural gas will have serious implications for public health, the environment and climate change,” said Michael Brune, executive director of the Sierra Club environmental group. “Building these terminals means lots of new fracking, and more fracking means more risks for Americans.”

Bill Cooper, president of the Center for Liquefied Natural Gas, an industry group, called natural gas a safe, clean-burning alternative to coal and oil. “LNG exports will create jobs, increase government revenue and benefit consumers.”

The administration has not said whether it will approve the projects. The issue is among the main challenges for Ernest Moniz, President Barack Obama’s nominee to be energy secretary.

Federal law requires the Energy Department to determine that projects are in the public interest before granting export permits to countries that do not have free-trade agreements with the US.

A recent study commissioned by the department concluded that exporting natural gas would benefit the US economy even if it leads to higher domestic prices for the fuel, as is likely.

US-based Dow Chemical Co. and other manufacturers have criticized that study, saying it relied on 2-year-old data that doesn’t account for increased demand for natural gas by manufacturers, trucking fleets and power plants.

Dow, which uses natural gas to power its plants and make products from plastics to pharmaceuticals, has argued against unfettered exports and said that could lead to price spikes that could harm the US economy.

But John Felmy, chief economist for the American Petroleum Institute, the largest lobbying group for the oil and gas industry, said restricting trade to control prices “is bad for the economy” and could result in lower domestic investment and production, hampering jobs and economic growth.

Kevin Book, an analyst for ClearView Energy Partners, a research and consulting firm, predicted that the administration will approve some new exports, but nowhere near the 20 projects that are pending before the Energy Department.

Only one US license has been granted so far, to Texas-based Cheniere Energy Inc. Proposals are pending from energy giants such as Exxon Mobil and Conoco Phillips.

The agency is taking public input on the idea until May 27, and any changes likely could take a year before taking effect, The Detroit News reported.

Explosives, radioactive material, flammable liquids and corrosive material currently are banned from the bridge connecting Detroit and Windsor, Ontario. They’re also banned from the Detroit-Windsor Tunnel. A ferry service currently operates on the Detroit River for trucks carrying hazardous materials.

The state’s review of the issue came after a request from the Detroit International Bridge Company, which owns the Ambassador Bridge. A public meeting was held on the request on March 22, and MDOT said 10 Canadian officials were among those on hand.

“There’s not enough detail or consultation that has to be in a report of this magnitude,” said Mario Sonego, chief engineer for Windsor.

Plans are in the works to build a new Canadian-financed bridge across the river at Detroit, and that bridge is expected to be open to trucks carrying hazardous material. Gregg Ward, who has owned the Detroit-Windsor Truck Ferry since 1990, opposes ending the ban at the Ambassador Bridge.

“It goes counter to the reasoning about why we need a new bridge, which is redundancy,” he said. “We can’t rely on one bridge. Now, when something happens there are huge backups on the bridge.”

In a study released December 27, 2012, MDOT supported the idea of transporting flammable gas/liquids, flammable solids and reactants, oxidants and peroxides, poisonous materials and infectious substances, corrosive materials and other dangerous products across the Ambassador Bridge.

“This issue has been out there for quite a while and it’s definitely not a done deal at this point,” said MDOT spokesman Jeff Cranson.

MDOT didn’t recommend lifting the ban on explosives and radioactive material on the bridge.

Hazardous materials are allowed across the Blue Water Bridge between Port Huron and Sarnia, Ontario, and are restricted to designated lanes. Following MDOT’s review, there are no plans to consider allowing trucks hauling hazardous materials in the Detroit-Windsor Tunnel.

The ENGAGE program brings together forums of 10 or 12 senior executives and company owners who will network and collaborate on ways to break through barriers that impede business growth and profitability.

“Many companies have told us they are not only competing for new business and customers around the world, but also competing at home to attract and develop talented leadership with the expertise necessary to grow and become more competitive,” said Al Diggins, EMC’s president and general manager based in Owen Sound, Ont.

EMC is targeting continuous six and seven figure sustainable improvements for participating companies.

Each Engage Forum will be facilitated by an experienced senior executive, who has successfully led manufacturing businesses through turnarounds, transformations and acquisitions, said Dave Jarrett, senior field advisor and lead facilitator of the ENGAGE program.

The sessions will begin with a group in Whitby, Ont. on June 4 with the intent that a network of forums and leaders will spread across the country.

To register for the free inaugural session e-mail Dave Jarrett.

A Continuous Improvement Exchange event will follow, which requires separate registration.

EMC is a not-for-profit organization that helps Canadian manufacturers become more competitive through hands-on industry events.

In Montreal to deliver his provincial export forecast, EDC chief economist Peter Hall said the province’s exports are projected to surge by eight per cent in 2013 and a further six per cent in 2014 on the back of continued recovery in the United States.

“The U.S. buys two-thirds of all Quebec exports, and with (its) recovery gaining momentum through 2013, we’re looking at a solid export increase after a few years of low export growth,” Hall said in a statement.

“Quebec’s export sales are heading north, with help from our southern neighbours.”

The projections were part of EDC’s Global Export Forecast.

Hall’s forecast for the U.S. economy is based on the opinion that there is significant private sector momentum in that nation despite the fiscal drag.

The housing market has finally returned to balance as the excesses of the last cycle have been soaked up over the past few years and now prices have firmed and housing starts are soaring.

“U.S. consumers are also spending, particularly on larger goods, and businesses, who are now running out of productive capacity, are beginning to spend the mountain of cash that has built up,” Hall said.

The industrial goods sector, which includes ores, minerals and metals exports, accounts for approximately 38 per cent of the province’s exports.

EDC’s forecast for this sector calls for export growth of seven and two per cent in 2013 and 2014, respectively.

“Despite regulatory headwinds in the form of changes to the Quebec mining regime, the metals and mining industry remains a key contributor to Quebec’s overall export performance,” Hall said. “Exports are poised to rebound following a disappointing 2012 that was caused, in part, by sluggish prices.

He said both prices and demand will be up this year.

The transportation sector is another important contributor to Quebec’s export picture, contributing approximately 12 per cent of the province’s total.

EDC’s forecast predicts the sector will grow by 13 per cent this year and 16 per cent in 2014.

“Aerospace exports will be the main driver in Quebec’s transportation story,” Hall said.

“The ongoing global recovery and rapid growth in air travel in emerging markets is particularly well suited to Bombardier’s product mix. The environment for business jets is also beginning to stabilize, as are commercial aircraft orders.”

Quebec’s exports to emerging markets accounted for 13 per cent of the province’s total in 2012, up from nine per cent in 2008.

China is the province’s second largest export destination after the U.S., accounting for four per cent of Quebec’s exports.

Industrial goods make up a large share of exports to emerging markets.

According to a new report from OfficeMax Grand&Toy, 50 per cent of Canadian enterprise organization heads said their sustainability-related initiatives have added to profits, compared to 31 per cent globally.

The report, Driving Sustainability in Canada and the Role of Supply Chain & Procurement, also found 76 per cent of Canadian decision-makers said sustainability is necessary for competitiveness, and another 87 per cent said their organizations had placed sustainability on their respective agendas permanently.

That compares to global averages of 67 per cent and 70 per cent, respectively.

“Canadian enterprise organizations are showing a strong commitment to sustainability initiatives,” OfficeMax Grand&Toy general manager of marketing Jeff Hayward said in a statement.

“They are using fully-developed operational capabilities to drive profit from these actions.”

But when it comes to the top organizations, or harvesters, Canada starts to fall behind.

Chief executives from harvesters—firms profiting from sustainability-related actions and decisions—are far more likely to commit strongly to sustainability (85 per cent compared to 61 per cent in Canada), according to the report.

“What we’re seeing in Canada is a sustainability approach that emphasizes business efficiencies or cost reductions,” senior researcher and report co-author Warren Shiau said.

“The advantage to this is that enterprise Canadian organizations are among the global leaders in driving profitability from sustainability,” Shiau continued. “In the long term however, these organizations may face challenges as they try to extend sustainability adoption into other areas of the business where positive impact is harder to measure.”

The new Conference Board of Canada report says that while Canadian commercial activities with India pale in comparison with the scale of trade and investment with the nation’s more traditional, advanced economy partners, India represents a high ceiling market in a number of sectors.

“Few Canadian companies have taken full advantage of the rapidly growing Indian economy,” Danielle Goldfarb, associate director of the Conference Board’s Global Commerce Centre, said in a statement.

“Canada’s demonstrated strengths in other markets could be adapted and applied to India’s needs.”

Some of the sectors that offer both high growth potential and relative openness to Canadian businesses and fall into what the Conference Board calls the “sweet spot” include:

• autos

• machinery

• transport

• energy

• communications

As the world’s second most populous country and a rapidly growing middle class, India offers tremendous opportunities.

India’s economy grew rapidly between 2003 and 2007, averaging an impressive nine per cent real annual growth in that time, according to the think-tank.

It has experienced a slow-down since then, but for an economy that is still expanding only a meager 0.5 per cent of Canada’s goods exports go to India.

Two-way trade between the nations totals less than $5-billion annually, mostly in goods.

However, as Canada’s trade with the United States stagnates, Canada’s trade with fast-growing markets is starting to take off.

Canada and India are negotiating a trade deal, ambitiously slated for completion in 2013.

The region, home to approximately 800 small- and medium-sized manufacturers, is getting a boost from the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), with as much as $1.57-million dolled out to both Niagara College and the Niagara Economic Development Corporation (NEDC) in a bid to boost support and resources available to the sector.

According to FedDev Ontario, Niagara College is receiving as much as $990,000 through the agency’s Prosperity Initiative to establish the Industry Innovation Centre at Niagara—also known as IIC@N.

The IIC@N will provide small regional manufacturers with access to facilities, equipment, resources and technical expertise to help with everything from product development, market expansion and technology adoption.

The federal agency is also providing as much as $580,000 to NEDC to establish an initiative aimed at revitalizing the overall manufacturing base in the Niagara region.

According to FedDev Ontario, the NEDC funding is intended to support small- and medium-sized manufacturing enterprises in Niagara through activities like business mentoring, referral services and strategic partnering to help improve productivity and market opportunities.

Both contributions are non-repayable.

“By supporting the Niagara-region manufacturing sector, our government is not only helping to create more modern, efficient and market-ready manufacturers while creating jobs in Niagara, but we are also strengthening Canada’s position in the manufacturing sector in the global marketplace,” Minister of State for FedDev Ontario Gary Goodyear said in a statement.

Together, the two projects are aimed at creating an environment that encourages the growth and revitalization of the Niagara Region by helping businesses to identify areas for expansion, as well as providing the tools and referrals necessary to take action.

“Niagara has more than 800 small- and medium-sized manufacturers who are working hard to be competitive, yet do not have in-house research and innovation capacity,” Niagara College associate vice-president of research Marc Nantel.

Hilliard, Ohio-based ADS already has a distribution yard in Red Deer, Alberta, a manufacturing plant in Saint Germain, Quebec, and three facilities in Ontario: a plant in Heidelberg and two distribution yards—one in Chatham and one in Morrisburg (which opened in January 2013). The company produces corrugated polyethylene pipe products for the storm drainage market and polypropylene pipes for use in sanitary sewers.

The newest yard, is located in Petitcodiac, New Brunswick (just outside of Moncton). Although the facility is currently open for customer pick-ups, full delivery service won’t start for a few more days.

The facility is located on a few acres which were formerly home to a 3PL company.

“That was one of the reasons I liked the site, I knew it could handle a lot of trucks going in and out of there,” says Jason Moore, general manager of Canada and distribution yards for ADS.

“Our storage is outdoor storage. There will be an office building. We’ll have two indoor facilities we’ll be able to keep trucks and sensitive inventory in. We’ve got a broad range of products and some store better inside.”

ADS chose the Moncton area due to its central location in the Maritimes. Although the company was already selling into the region, Moore says it made sense to have a physical presence there.

“It allows us to get closer to markets where we don’t have a physical manufacturing plant and allows us to do next day deliveries because of the proximity to the market. We’ll deliver the pipe to a distribution yard and the distribution yard is staffed with our employees and our trucks will go out daily into the marketplace and distribute our products.”

While Moore prides himself on being able to deliver products to customers when they need them, moving inventory closer to the buyer makes everybody happier.

“In emergencies we would be able to get it there in a day or two, but it’s just not as convenient for the customer, not as consistent. There is an assuredness the customers have when they know the inventory is in their market. It’s psychological, just knowing it’s there. When we have these big projects, granted all the pipe for that project may not come directly from that yard, but what the yards are great for is the customer can start these huge projects or finish them. If they need five-foot of pipe, just to finish a job or start it, instead of bringing it from Quebec, boom, the product is right there.”

Moore says ADS’s big Canadian push began about three years ago, and it’s a strategy the company intends to continue.

“We made a move to put even more focus on it and to grow the business, not only from a sales perspective, but also develop the infrastructure. One of the things we’ve done is put this new distribution yard in the Moncton area.”

He added that there will likely be more facilities developed in Canada, but at this point he’s not prepared to say where they will be located.

“We’ll continue to evaluate what the market needs are as we go into future growth. Right now we have sales reps and engineers across the country from Vancouver all the way to the Maritimes. Our coverage is solid. We have multiple strategies to grow the various markets. I would say they’re all under review to grow, but as they grow, we’re going to need more facilities to support the growth.”

He added that because of the country’s vast distances and sparse population, Canada has presented distribution challenges ADS hasn’t faced before.

“Just sheer size of the country. And the distance from some of these metropolitan areas to the next. If you even think about western Ontario through Alberta, it’s a massive piece of land you have to cover by truck. So that distribution alone is different. The dynamic of it, if you look at a map, you say the States is big too, but there are more larger cities with large populations to help fill in those gaps.”

The online feedback form, developed by the Canadian Federation of Independent Business (CFIB) and the Ministry of Economic Development, Trade and Employment, is now in operation at www.ontariocanada.com/registry/contact_us.do.

“This online tool will give small business a dedicated hot line to speak directly to government about specific red tape examples that are making it difficult for them to run their business,” said CFIB’s Ontario director Plamen Petkov.

Government ministries will have 15 business days to respond to business owners in writing.

The feedback form is one of five measures developed jointly by CFIB and the ministry. Other measures include:

• Reducing the amount of paperwork imposed on small businesses. Ontario’s workers’ compensation board has nearly completed this process.

• Streamlining the government procurement process to give small businesses a fair chance to compete for government contracts.

• Improving the current system of measuring and publicly reporting the regulatory burden; and

• Regularly reviewing specific requirements that are imposed by government.

The Toronto and Ottawa-based CFIB represents small and medium-sized businesses across Canada.

CME commended the government for mirroring the federal decision to extend the accelerated depreciation for manufacturing and processing equipment through 2015—a move that the industry association says will result in $265-million in savings for Ontario companies—as well as the formulation of a new $295-million youth employment and mentorship fund, which it says could help encourage more youth to explore opportunities in in-demand manufacturing-related careers.

“We are pleased to see the government formally recognize the importance of manufacturing to the province’s economy,” CME Ontario vice-president Ian Howcroft said in a statement.

“The success of this entire budget starts with manufacturing, and we will continue to need strong leadership in the coming months from all stakeholders and all parties to implement policies that spur investment and keep us moving forward.”

While CME also noted its support for the government’s commitment to reduce the deficit, other moves in the budget received a less favourable response.

In particular, the elimination of a threshold exemption for large employers on employee health taxes is expected to drive down competitiveness.

“Overall, this budget is a good signal that the province wants to work closer with industry,” Howcroft said.

“The rest of Canada and the rest of the world won’t wait for us. We need to work together to ensure Ontario is ready to lead—in job creation, in investment attraction, in export development—and that growth must start with a vibrant, innovative manufacturing sector.”

The headline PMI score—a composite indicator designed to provide a snapshot of the health of the country’s manufacturing sector—registered a 50.1, an improvement from the industry’s contraction in March.

In March the index registered a 49.3.

“Canada’s manufacturing sector kept its head above water in April, registering some improvement over the surprising series low recorded last month,” RBC senior vice-president and chief economist Craig Wright said in a statement about the results.

“While the overall gains made in April were tepid, we expect manufacturing output to pick-up, augmenting export activity and supporting Canada’s growth prospects.”

According to RBC, manufacturing output levels in April were largely the same as March, despite the volume of new orders having increased, albeit only marginally.

Employment was also little-changed, seeing only a slight rise in staff numbers since March.

Incoming new work for Canadian manufacturers increased in April, with firms generally linking this to greater demand

Overall, the rise in total new work also reflected larger volumes of new export orders, which rose at the strongest rate in six months during April.

Despite higher new order requirements, production levels were largely the same as one month previously.

The quantity of inputs bought by manufacturers was also broadly the same as in the previous survey period, according to the financial firm, rising only fractionally over March.

Suppliers’ delivery times continued to lengthen in April, with approximately seven per cent of panellists reporting a deterioration in vendor performance.

In the first welcome economic news in several weeks, Statistics Canada reported the country’s output expanded by 0.3 per cent in February.

What’s more, it revised upward an earlier calculation for January by one notch, also to 0.3 per cent.

“We can cheer not only the February result, but as well an upward revision to January and what now looks like a reasonably good first quarter,” said CIBC chief economist Avery Shenfeld.

Economist Jimmy Jean of Desjardins Capital Markets noted that the growth numbers were not “soft,” or the result of rounding.

The actual growth figures for January and February were 0.33 and 0.34 per cent, respectively.

“An unquestionably solid report, which changes the picture somewhat with respect to the first quarter,” he said.

Analysts now are pencilling in annualized growth rates of up to 2.5 per cent for the first three months of the year, a pace that would make it the strongest in more than a year.

That’s about where the Bank of Canada had been before a spate of under-performing indicators suggested the country’s economy remained mired in the same stall that characterized the second half of 2012, when growth averaged 0.7 per cent.

The central bank recently revised it’s first-quarter estimate to 1.5 per cent.

But Shenfeld said the results suggest some of the recent weakness, particularly in the resource sector, was due to temporary production difficulties.

That sector rebounded strongly to 2.2 per cent growth in February, led by mining, quarrying and oil and gas extraction.

It was fifth consecutive month of growth for the industries.

As well, manufacturing rose 0.8 per cent in February, building on a 0.6 per cent gain the previous month.

And the return of the NHL from an owner-imposed lockout also appears to have played a minor role.

Arts and entertainment soared 3.3 per cent, on the back of a four per cent increase in January.

Still, it’s no time “to break out the champagne,” said TD economist Leslie Preston.

“U.S. growth is looking a bit soft in the second quarter and we expect Canada still has a long road back to the kind of growth that would see the Bank of Canada step off the sidelines, especially with inflation remaining benign.”

Shenfeld cautioned that the advance follows a very weak end of 2012.

The fast start might push gross domestic product up about one tenth or two tenths from previous calls of about 1.5 per cent for the year.

That is still below the two per cent pace that the Bank of Canada considers the economy’s cruising speed.

Other winners in February included durable goods production, which grew 0.7 per cent, as well transportation equipment, non-metallic mineral products and computer and electronic products.

Non-durable goods production increased one per cent.

Construction, utilities and the agriculture and forestry sectors also grew, while the output of service industries rose 0.1 per cent, mostly because of growth in arts and entertainment, the public sector and the finance and insurance sectors.

However, accommodation and food services, administrative and professional services and wholesale trade declined.

The Fraser Institute report, The Compliance and Administrative Costs of Taxation in Canada, found that the dollar cost of complying with business taxes is lower for small- and medium-sized businesses, but as a share of revenues, it is actually higher than for larger businesses.

“At this time of the year as Canadians file their income tax returns, they clearly see in black and white how much they pay in income and payroll taxes, but the additional costs of complying with the tax code are usually overlooked,” Fraser Institute executive vice-president Jason Clemens said in a statement.

“By adding up taxpayers’ personal time and effort to file their returns and all expenses associated with accounting and professional fees and appeals, we find a high cost of up to $25-billion, or 1.4 per cent of GDP, for tax compliance in 2011.”

The report includes a foreword by Anthony Ariganello, president and CEO of the Certified General Accountants Association of Canada, warning about the economic costs of overly burdensome tax codes.

“Canada’s tax system can act as a barrier to business, investment, competitiveness, and economic growth,” Ariganello wrote in the report.

“Tax simplification would provide countless economic benefits-including lower costs for both tax compliance and administration-which translates into more money in the pockets of Canadians and a likely boost to the Canadian economy.”

The report also estimates the government cost of tax administration—collecting taxes, maintaining records and managing appeals at the federal, provincial and municipal levels—to be $6.6-billion in 2011.

To access the full report, log on to the Fraser Institute website.

According to Canadian Manufacturers and Exporters (CME), while manufacturers across Canada continue to rely primarily on Canadian talent to meet changing labour demands, temporary foreign workers remain a vital part of the industry’s national employment and economic growth strategies.

The trade and industry organization says half of all manufacturers in Canada are currently experiencing labour or skills shortages, and those numbers are projected to “rise dramatically in every occupational segment” over the next five years.

More than one in three companies say these challenges are already constraining business growth, according to CME.

“The federal TFW program is used by manufacturers most times because they have no other option, often operating in regions where Canadians won’t move and there are no local workers with the necessary skill requirements,” CME president and CEO Jayson Myers said in a statement.

“Let’s be clear: Canadian industry wants to hire Canadians first—not only to be socially responsible, but because hiring foreign workers is much more expensive and a much more complicated process.”

With the federal government now proposing changes to the temporary foreign workers system, Myers maintains it is important that reforms establish mechanisms to allow for maximized speed and flexibility in connecting companies with the workers they need, while providing pathways to citizenship for current temporary foreign workers, as well as to ensure transparency in the new framework.

“TFWs are used because current government programs to supply labour are inadequate, including both the education and immigration systems,” Myers said.

“Any transition from the model we have now must be done to improve Canada’s global competitiveness, and avoid penalizing the companies that are following the rules, creating jobs and driving our economy.”