Government plans for continued growth and diversification as Saskatchewan leads the nation in manufacturing export growth
With a total value of over $1.78 billion, Saskatchewan led the provinces in manufacturing sales last July with an increase of 56.8 per cent (seasonally adjusted) compared to July 2020, the highest increase among all the provinces. Officials believe these numbers demonstrate Saskatchewan’s progress on its 2020-2030 Growth Plan and its ability to lead Canada’s economic recovery.
The province also saw a 3.7 per cent growth (seasonally adjusted) in manufacturing sales between July and June 2021, the second-highest increase among provinces. Additionally, Saskatchewan was the only province to see its exports increase in 2020, rising to $30.4B, 2.5 per cent higher than the previous year.
Mexico City, Mexico.
“The Saskatchewan government made the important decision to deem the manufacturing sector an essential service during the pandemic,” Trade and Export Development Minister Jeremy Harrison said. “This allowed our manufacturers to continue operating and helped establish Saskatchewan as a leader in Canada’s economic recovery by preventing further disruptions to the supply chain.”
Harrison says the strong manufacturing numbers can also be attributed to the wide range of export markets served by Saskatchewan’s manufacturing sector and this diversity has facilitated the continuation of strong growth during the pandemic.
“Saskatchewan is continuously building on its reputation as one of the most important economic growth engines for Canada,” Harrison said.
In a province that exports 65 per cent of what it produces, manufacturing remains a key economic sector making up over five per cent of Saskatchewan’s Gross Domestic Product.
Although manufacturing exports only made up 18.7 per cent of Saskatchewan’s international exports in 2019, Harrison says the government is prioritizing the growth and diversification of this sector with Saskatchewan’s Growth Plan which set a goal to increase the value of manufacturing exports by 50 per cent by 2030.
“Saskatchewan’s value-added strategy attracts investment, develops infrastructure, and creates new knowledge and opportunities,” Harrison said. “The announcement of four new canola crushing facilities is a good example.”
“These facilities will process the raw commodity of canola seed into the value-added product of canola oil … This all speaks to supporting the diversification of Saskatchewan’s economy and growing Saskatchewan exports and key exporting sectors, such as manufacturing.”
In addition to the goals to crush 75 per cent of Saskatchewan canola within the province and to increase export value, as well as the Saskatchewan Research Council’s development of Canada’s first rare earth elements processing facility, the government plans to grow the number of international markets to which Saskatchewan exports more than $1B to by 2030. Harrison says achieving these goals will maximize the growth of the province’s manufacturing sector and economy which will help build stronger communities, create 100,000 new jobs, and attract skilled workers from around the world.
London, United Kingdom.
To increase exports and strengthen relationships with global partners the Government of Saskatchewan is doubling the number of existing international trade and investment offices it already has in Japan, Singapore, India, and China by expanding into the United Kingdom, United Arab Emirates, Mexico, and Vietnam this year.
Harrison says these investments are creating new opportunities for Saskatchewan businesses to get their products to international markets and the network will “ensure that the world knows what Saskatchewan can offer, both in terms of exports, and investment opportunities.”
“Strengthening Saskatchewan’s global network will help diversify and grow international export markets that will benefit Saskatchewan manufacturers looking to export their products,” Harrison said.
He stated that the new international offices also correspond with the Growth Plan’s goal to increase private capital investment in Saskatchewan to $16 billion annually. Harrison says that the foreign direct investment Saskatchewan already receives from global companies has created huge opportunities for growth in the manufacturing sector and believes these offices will “build on this momentum” while showing why the province
is “one of the best places in the world to do business.”
“Saskatchewan’s trade and export strategies will enable us to continue being a leader in economic growth and export growth for years to come, with the impact of the sector bringing significant value to the economy by way of generating long-term employment opportunities, rural economic revitalization, and furthering the province’s standing as an innovative leader in the sector,” Harrison said.
References
1Speer, Robin. “Saskatchewan Leads Provinces in Manufacturing Sales.” Government of Saskatchewan, News and Media, Sept. 14, 2021. https://www.saskatchewan.ca/government/news-and-media/2021/september/14/saskatchewanleads-provinces-in-manufacturing-sales
2Saskatchewan Trade & Export Partnership. “Sask. Exports Increase in 2020, Only Province to do so.” News Room, Feb. 15, 2021.
3Overview of the Manufacturing Sector in Saskatchewan: 2009-2019. Government of Saskatchewan, pp. ii. https://publications.saskatchewan.ca/api/v1/products/88143/formats/104820/download.
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