Calgary Region Economic Partnership. Productivity Assessment Survey 2010
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1 Calgary Region Economic Partnership Productivity Assessment Survey 2010
2 Introduction From early September through mid December 2009, Calgary and Region oil and gas, construction, manufacturing, value-added processing, and support services businesses were invited to share their views regarding business conditions and issues they faced, particularly related to productivity issues. Overall, 102 eligible companies completed the entire on-line survey. Eligible companies were physically located within the geographic footprint of the CRP members communities and were classified (by Statistics Canada) as being in one of the industries listed above. Table of Contents The survey was constructed to allow for differentiation between responses from Calgary companies and those received from companies elsewhere in the Region. The results were remarkably similar. Significant differences, when found, have been noted below. The following highlights summary information from the survey results. Survey Participants... 1 Business Outlook... 2 Investment Intentions... 3 Labour Force... 4 Challenges and Determinants of Future Growth... 6 Business Improvement... 8 LEAN Improvements... 9 Innovation Training About the CRP and this Project... IBC
3 Primary Markets, Calgary #1 Primary Markets, Region #2 15% 38% 24% 23% Local/Regional Local/regional Canada North North America America Global Global 82% 3% 9% 6% Size of Firm, By number of Employees # over 250 0% 10% 20% 30% 40% 50% 60% 70% 80% Region Calgary
4 Performance Expectations, Calgary #4 80% 70% 60% 50% 40% 30% 20% 10% 0% Production Sales Profit Better No Change Worse Performance Expectations, Region #4 80% 70% 60% 50% 40% 30% 20% 10% 0% Production Sales Profit Better No Change Worse
5 Investment Intentions, Calgary #5 80% 70% 60% 50% 40% 30% 20% 10% 0% Machinery & Equipment Information & Communication Tech. Research & Development Production Facilities Increase No Change Decrease Not Applicable Investment Intentions, Region #5 80% 70% 60% 50% 40% 30% 20% 10% 0% Machinery & Equipment Information & Communication Tech. Research & Development Production Facilities Increase No Change Decrease Not Applicable
6 . Planned Workforce Changes, Calgary #6 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Overall Workers Skilled Workers Unskilled Workers Professional Staff Administrative Staff Increase No Change Decrease Planned Workforce Changes, Region #6 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Overall Workers Skilled Workers Unskilled Workers Professional Staff Administrative Staff Increase No Change Decrease
7 Overall Workforce Skill Improvement Needed #7 Lack of credentials/certification Read/translate technical drawings Basic employability skills Interpersonal Trades proficiency Entrepreneurship Innovation/creativity Continuous learning Project management Supervisory/management Problem solving Technical skills Hire more people with disabilities Outsource functions outside Canada Hire more people from the Aboriginal community Hire recent immigrants with foreign training Shift to more part time workers Reallocate work assignments Recruit workers directly from abroad Attract personnel from other companies Outsource functions to other Canadian firms Hire younger people Increase degree of automation Hire more mature workers Increase emphasis on recruitment Alliances with other companies Simplify business processes Implement workplace practices to encourage retention Upgrade skills of current employees Actions Taken to Meet Future Labour Needs, Overall #
8 Challenges Facing Business Operations, Overall #9 Managing mergers and acquisitions Defending market share in the US Accessing market/transportation and logistics Attracting investments Retaining skilled workers Growing market share in other countries Attracting skilled workers Responding to currency fluctuations Accessing capital Growing market share in the US Defending market share in Canada Keeping pace with innovation Improving workforce Responding to customer demand Growing market share in Canada Staying on top of market swings Keeping costs under control
9 Securing new investments/product materials Exchange rates Increasing automation Investing in research and development Expanding production capacity inside Canada Expanding production capacity outside Canada Mergers/acquisitions Reducing lead times Introducing new/improved processes New venture/alliances Investing in new technology Improving customer service Overall market conditions Improving marketing capabilities Entering new markets Access to capital Launching new products/services Developing new market channels Reducing operating costs Improving labour productivity Determinants of Future Business Growth, Overall # Exchange rate fluctuation -when the Canadian $ is weak Availability/cost of energy Tax competitiveness Overcapacity and production closures Aging workforce Competition for investment Technological change Customers closing/relocating Global sourcing by customers Access to workers with the right skills Availability of skilled and experienced personnel Exchange rate fluctuation -when the Canadian $ is strong Regulatory requirements Increasing competition from within Canada Increasing competition from other countries Work with clients to help them reshape and grow Economic conditions in the US Changing patterns of customers demand Bringing new products/services onto the market Managing business growth Introducing new/improved processes Economic conditions in Canada Rising business costs Strategic Challenges Faced, Overall #
10 Lack of information Lack of tools to support strategic decisions Automation Process flexibility Lack of expertise Lack of performance measures Lack of knowledge of effective practices Lack of knowledge on how to improve performance Technological constraints Supplier quality Cost Lack of qualified personnel Operating culture Organizational structure Communication Lack of management/leadership skills Limited resources Availability of financing Lack of time Lack of customer demand Market uncertainty Constraints to Achieving Performance, Overall #
11 New tolls to support decision making Increasing automation Improving supply chain management Outsourcing Better information management Bringing in external expertise Investing in new technology Re-engineering processes Changing operating culture Changing management structures Redeploying resources Upgrading management/leadership skills New management techniques Strengthening teamwork Upgrading employee skills Collaborating with others Developing new products/services Improving customer relations Improving operating efficiency Entering new markets Steps Being Taken to Overcome Constraints to Achieving Measurable Performance, Overall #
12 Benefits to Implementing LEAN Improvements, Overall #14 Purchasing Supply chain efficiencies Warehouse space Worker health and safety Inventory turnover Employee satisfaction Materials management On-line delivery Improved customer service Improved product quality Production lead times Waste reduction Process efficiency Obstacles to Implementing LEAN, Overall #15 Lack of support from customers Lack of support from senior management Lean viewed as flavor of the month Failure to remove ankle draggers who resist change Complexity of operating environment Lack of implementation know-how Employee resistance Backsliding to old ways of doing things
13 Critical Factors Driving Product Innovation, Overall #16 Supportive corporate organization Employee training Availability of qualified personnel Brand management Internal R & D resources Relations with suppliers Manufacturing process Collaboration with other businesses Leadership from senior executives Product design and development New market opportunities Customer expectations Constraints Faced in Bringing New Products to Market, Overall #17 Short product life cycles Parent company policy Regulatory impediments Design problems Process re-engineering and scale-up Product approvals Technology constraints Prototype development Establishing intellectual property Availability of skilled personnel Corporate cultural/organization Inadequate return on investment Lack of internal resources Financing Competition Finding customers/lack of demand Tools & Techniques Used to Enable Innovation, Overall #18 Formal innovation management methodology Product management software Formal product life cycle Outsourcing design/engineering services Collaborate with external researchers Use of common parts/platforms We do not have any technique to enable innovation Collaborate with suppliers to design components/develop materials Cross-functional design teams Collaborate with customes to determine requirements
14 Internally Provided Training Programs, Overall #19 Communication skills Customer service skills Leadership management skills Computer skills Teamwork LEAN/continuous improvement Technical skills Orientation of new employees Health and safety Proportion of Staff Receiving Formal, Company Sponsored Training #20 None Less than 10% 10-25% 25-50% 50-75% Over 75% Region Calgary
15 About the CRP and this Project The Calgary Region Economic Partnership is an operational branch of the Calgary Regional Partnership, and is focussed on the Region s prosperity. Calgary Region Economic Partnership works with member communities to identify strategic opportunities, to attract and support business development and to promote job creation throughout the Region. Calgary Regional Partnership fosters regional solutions through inter-municipal collaboration. We are committed to working together to promote a balance between a healthy environment, enriched communities, sustainable infrastructure and a prosperous economy. For more information and a full list of member communities please visit This Productivity Assessment Survey 2010 has been a project of the Calgary Region Economic Partnership in collaboration with: Calgary Economic Development, SAIT Polytechnic, the Canadian Manufacturers and Exporter s Association, Alberta Employment & Immigration and Alberta Finance & Enterprise. The contribution of all of these partners is gratefully acknowledged. Calgary Region to Edmonton (251 km) N 22 Crossfield 72 Beiseker 21 9 Drumheller Irricana Airdrie to British Columbia Banff Canmore Stony Nation 1 1a Cochrane 1a Balzac Calgary Int'l Airport 9 21 Rockyford Standard Banff National Park Kananaskis Redwood Meadows Bragg Creek 8 Tsuu T'ina Nation Chestermere 1 Strathmore 40 22X 22X to Saskatchewan 24 Siksika Nation 1 Kananaskis Country Turner Valley 7 Okotoks Black Diamond 22 Longview High River to US border (236 km) Nanton
16 For more information please contact: Calgary Region Economic Partnership Phone
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