Mining drives million-dollar manufacturing industry in Saskatoon

petros

The Central Scrutinizer
Nov 21, 2008
109,409
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Low Earth Orbit
Saskatoon has evolved into a major manufacturing centre, with 364 companies employing a workforce of 9,900 people, or 6.7 per cent of the region's total employment.

The largest three sub-groups within the manufacturing centre are machinery manufacturing, fabricated metal product manufacturing and food manufacturing.

"It's a big driver in the economy, contributing approximately $1 billion to Saskatoon's GDP, and $2.8 billion to the provincial GDP," said Tim LeClair, executive director of the Saskatoon Regional Economic Development Authority (SREDA).

Saskatoon has been identified as one of the world's most competitive manufacturing centres, in a recent competitive analysis by KPMG. These advantages include access to a highly-trained workforce, a highly competitive provincial and federal taxation regime with special consideration for manufacturers, a City of Saskatoon incentive policy, proximity to resource sectors in Western Canada and a strong transportation network including rail access to two ocean ports.

The range of products being manufactured in the Saskatoon region is diverse - from mining and oil extraction equipment, to computer and electronic products, to food and beverage processing.

JNE Welding is one of Saskatchewan's largest full service steel fabricators, employing 150 people at two locations in Saskatoon.

Established in 1980, the company serves the mining, environmental, construction, oil sands and power-generating sectors in Canada and the United States. The company's products are diverse, ranging from power poles for SaskPower, to the air traffic control tower at the Saskatoon airport, to specialized tanks, bins, dryers, chutes and pumpboxes for the resource sector.

Jim Nowakowski, president of JNE Welding, says that his company and other long-time local metal fabricators have been integral to the growth of Saskatchewan's resource industry, including potash, uranium and oil production. "We've been part of the innovative team that has helped the industry develop some of its strength and some of its depth. We've grown up with the industry."

Saskatchewan's vibrant economy has attracted out of region competitors who are vying for manufacturing contracts with mining and energy companies. "Some of those companies came and took on work very cheaply. There have been positive and negative experiences for all involved," said Nowakowski.

"There is great value in working with a local manufacturer. Once a capital project is done, we will still be here. Somebody from outside of the region is not going to have the same level of interest in providing the support that we and other local companies will."

Nowakowski is excited about the opportunities that are being created as the resource sector expands across the province. "Is there great opportunity for us because of how we're positioned, because of our reputation in the industry? Absolutely, because of the people and the facilities we have in place. We have great people. I'm incredibly proud of the people who make up our team. It's something that comes together over a period of time, based on the culture that you're building. It's an advantage we enjoy."


JNE Welding completed a major expansion in 2006. "We are seriously considering another expansion within the next 18 months, expanding our new facility once again," said Nowakowski.

There's no place he'd rather do business than in Saskatoon, said Nowakowski. "What we're seeing - as far as Saskatchewan-based work - looks like it's going to be pretty strong for the next five to ten years. I think the majority of the growth is yet to come."

He added, "The world needs what Saskatchewan has. I think we have the expertise required to deliver on those world expectations."

Lionel LaBelle, CEO and president of the Saskatchewan Trade and Export Partnership (STEP), says that Saskatchewan's export market continues to outperform all other provinces in the country.

Saskatchewan manufacturing shipments were up 18.1 per cent in July 2011, over July 2010, the largest increase of any province in Canada. Nationally, manufacturing shipments were up only 6.9 per cent over the same period.

"It's shaping up as a pretty terrific year. We're on track to have $28 billion worth of exports in 2011," said LaBelle.

STEP assists Saskatchewan manufacturers in realizing global marketing opportunities. LaBelle said, "We have a number of strengths in the manufacturing sector. One supports agriculture, the other supports the mining industry. Both of those sectors are quite strong, locally and globally."

Short-line farm equipment was once the primary focus of Saskatoon's manufacturing sector. Now, the sector has a much broader base, including the manufacture of specialized equipment for the mining and energy sectors. "What most people don't realize is that Saskatoon is now the largest steel fabricating city west of Toronto," saidLaBelle.

These innovative products are in demand in around the world. "Some of the unique technologies utilized in Saskatchewan's northern mines have translated into global technologies that we are able to market in other parts of the world. "Cameco's mine in Kazakhstan was almost 100 per cent designed and developed in Saskatoon," said LaBelle.

"On the agricultural side, we sell products in Kazakhstan, Mongolia, Ukraine and Russia. We sell millions of dollars of products in those countries."

The Canadian dollar's strength against the U.S. dollar has been of concern to exporting manufacturers across the country. "The benefit for us is that our products are so unique, the exchange rate hasn't been as much of a deterrent as we thought it would be," said LaBelle. "And our currency spread is actually parallel to European and Asian currency."

Of all Canadian provinces, Saskatchewan is the least dependent on the U.S. market. "The U.S. market is still important to us, representing 61 per cent of our total exports, but we sell more to other countries percentage-wise than any other province," said LaBelle.



Deja freakin' vu! Damn those manufacturing job killing resources!
 

CDNBear

Custom Troll
Sep 24, 2006
43,839
207
63
Ontario
Manufacturing goes where the money is.

Trying to blame oil for its decline in Ontario, is simply ridiculous. It's been on a steady decline, for years. Even when the Canadian dollar was on par or lower than the Greenback.
 

petros

The Central Scrutinizer
Nov 21, 2008
109,409
11,455
113
Low Earth Orbit
It has only just begun.

The article was curteous enough to confirm everything I've been saying in regards to a shift from eastern manufacturing to the west.

My future has never looked brighter....I'm going to start a couple more threads on the success of SK and reources.
 

Durry

House Member
May 18, 2010
4,709
286
83
Canada
My future has never looked brighter....I'm going to start a couple more threads on the success of SK and reources.
Yeah, where were you 15-20 yrs ago when I was paying you all that equalization money?
What woke you up that made you start looking for minerals?
Better go talk to Ont & Quebec..
PS: you gonna pay me back because you chose to get lazy and fat before??
 

Durry

House Member
May 18, 2010
4,709
286
83
Canada
We'll e-mail you a quarter. Be fun watching you peel off your socks to count change....

Just curious, how many loads of kaka do you usually carry around in your pants before you go outside to scrape it of?
You really gotta go more often now that your getting older, it's starting to affect your brain, you know !!! It's starting to show in your posts as well now.
 

lone wolf

Grossly Underrated
Nov 25, 2006
32,493
210
63
In the bush near Sudbury
Just curious, how many loads of kaka do you usually carry around in your pants before you go outside to scrape it of?
You really gotta go more often now that your getting older, it's starting to affect your brain, you know !!! It's starting to show in your posts as well now.
Mine's only starting ... and you're where you are now. You could have had a great future in fertilizer - had you not been so worried about being better than anyone....
 
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TenPenny

Hall of Fame Member
Jun 9, 2004
17,466
138
63
Location, Location
Yeah, where were you 15-20 yrs ago when I was paying you all that equalization money?
What woke you up that made you start looking for minerals?
Better go talk to Ont & Quebec..
PS: you gonna pay me back because you chose to get lazy and fat before??

You sure have an inferiority complex.

Did someone from SK hurt your feelings in Grade 3?
 

CDNBear

Custom Troll
Sep 24, 2006
43,839
207
63
Ontario
Just curious, how many loads of kaka do you usually carry around in your pants before you go outside to scrape it of?
Why would you be in his pants? And why would you be so sticky that you would need to be scraped off?

You really gotta go more often now that your getting older, it's starting to affect your brain, you know !!! It's starting to show in your posts as well now.
I don't know about that. Unlike your posts, his don't come off as childish rants, from a 4yo.
 

taxslave

Hall of Fame Member
Nov 25, 2008
36,362
4,337
113
Vancouver Island
Is Madills still in operation?

In Washington there is still a facility. The plant in Nanaimo has been closed for several years now. Great Northern Equipment is now the dealer. Manufacturing on the island is expensive due to freight costs.
 

damngrumpy

Executive Branch Member
Mar 16, 2005
9,949
21
38
kelowna bc
I think a province that has a chance to diversify and not rely on one sector
is a good thing, as long as they don't go nuts like they have in BC. We are
under the grip of a government that is selling at all costs as it were. I think
having resources sold without job benefit to our citizens is crazy. I am in
favour of mining and exports as long as it is manufactured goods at some
level, No more raw logs, or just raw natural gas etc. This government has
not and I repeat no taken into account the shipping dangers in the region
they are building the ports. They have not taken into consideration the
thoughts of BC Citizens who are not all that happy, but then Christy Crunch
no longer cares about public opinion that is why she is about to make an
exit as Premier. I hope Saskatchewan learns some hard lessons from the
mistakes of BC, Alberta and Ontario from the past before they create their
own. It is good to see manufacturing jobs in that province as well. Building
a secure and sustainable future with varied opportunities is not easy but
when it works it is a good thing.
 

Mowich

Hall of Fame Member
Dec 25, 2005
16,649
998
113
75
Eagle Creek
It has only just begun.

The article was curteous enough to confirm everything I've been saying in regards to a shift from eastern manufacturing to the west.

My future has never looked brighter....I'm going to start a couple more threads on the success of SK and reources.

Rock on Saskatchewan! The people of the province can be justly proud of their accomplishments especially considering that when I left decades ago a cartoon in the Leader Post asked that the last person leaving the province please turn out the lights. How far this little province has come.

So wonderful to hear that Saskatoon and thereby, Sask is doing so well considering how far they had to come to do so. Keep posting on the success of the province, petros...................and I'm really glad your future is brighter.
 

taxslave

Hall of Fame Member
Nov 25, 2008
36,362
4,337
113
Vancouver Island
I think a province that has a chance to diversify and not rely on one sector
is a good thing, as long as they don't go nuts like they have in BC. We are
under the grip of a government that is selling at all costs as it were. I think
having resources sold without job benefit to our citizens is crazy. I am in
favour of mining and exports as long as it is manufactured goods at some
level, No more raw logs, or just raw natural gas etc. This government has
not and I repeat no taken into account the shipping dangers in the region
they are building the ports. They have not taken into consideration the
thoughts of BC Citizens who are not all that happy, but then Christy Crunch
no longer cares about public opinion that is why she is about to make an
exit as Premier. I hope Saskatchewan learns some hard lessons from the
mistakes of BC, Alberta and Ontario from the past before they create their
own. It is good to see manufacturing jobs in that province as well. Building
a secure and sustainable future with varied opportunities is not easy but
when it works it is a good thing.
But they have taken into consideration the thoughts of the voters that want good paying jobs here in BC and these are the ones that count, not the freeloaders and the rich retirees from Ontario that don't want any economic activity.