Mr. Chairman, committee members, good morning. I am pleased to be here with you to study the service sector in Canada. To this end, I will be speaking to you about the engineering field. Thank you for providing this opportunity to express our point of view.
The Réseau des ingénieurs du Québec is a non-profit organization representing 56,000 Quebec engineers. The mission of our organization is to serve the common interests of all engineers in all sectors of activity. To this end, we publicly promote their interests. We provide engineers and engineering students with career-related services as well as commercial benefits.
As part of its mission, the Réseau des ingénieurs du Québec has taken a keen interest in the effects of globalization on the organization of the labour market, particularly on knowledge-based jobs such as engineering. In recent years, we have carried out two specific studies: one on the phenomenon of job offshoring and the second on the situation in the manufacturing sector, with the underlying theme of the impact on the work of engineers.
To gain a good understanding of engineering in Quebec, it is essential to grasp the place of engineering in our society. First of all, more than 30% of engineers work in the industrial sector of manufacturing and production, 20% work in the consulting sector and another 20% work in the public and para-public sector. The work of one engineer generates almost 80 direct jobs. The work of one engineer in the industrial sector generates almost 100 indirect jobs. A large number of jobs in the services sector are attributable to the industrial sector, which remains the true engine of an economy that is balanced, diversified and creates value.
Globalization is an inescapable reality and we must make the best of it. We have to focus on the opportunities it provides. That was confirmed by our study on the impact of offshoring on Quebec engineers conducted in November 2006. Knowledge-based jobs such as those in engineering are no longer immune to international competition and the phenomenon of offshoring. These changes have repercussions for the organization of work, employment, the economy and the social fabric. We can tell you that globalization is transforming the work of engineers. Today, the latter work in a network that includes suppliers and partners located throughout the world. This requires many changes in order to accommodate different time zones and a variety of cultures.
There are a number of factors contributing to the type of changes faced by our industries. We see that you had the opportunity to discuss this before preparing the report Manufacturing: Moving Forward – Rising to the Challenge. In Quebec, we can count on engineering expertise that enjoys exceptional renown. On the international stage, the reputation, competence and effectiveness of Quebec engineers are well known. In terms of economic development and the services sector, it is in our interest to further promote this calling card in discussions with foreign countries.
As regards the opening of markets for our companies, the Réseau des ingénieurs du Québec recommends that Canada concentrate on negotiating free trade agreements with countries where market conditions—particularly in terms of protection of intellectual property, labour standards, social and environmental considerations—are comparable to those prevailing in Canada. The Réseau des ingénieurs du Québec believes that Canada must make it a priority and actively pursue negotiations for a free trade agreement with the European Union. In the past, our businesses could compete with others playing by the same rules. This applies even more so to the services sector.
Commercial trade in Canada must first and foremost be promoted in order to increase trade and to open markets for companies, for services and industries. We believe that there are still too many interprovincial barriers. The study we conducted last October attempts to provide our industrial sector with the tools to face the challenges of globalization. The first conclusion of our study is the need to implement a strong and coherent industrial policy.
This industrial policy must be founded on innovation, investment and productivity. It must be based on solid developmental projects, such as high-speed trains, aluminum processing or the electric car. The first aim of this policy must be to develop sustainable development technologies for industry and services. The time has come for Quebec and Canada to focus on developing its exportable know-how in the area of developing environmental technologies.
To be competitive and to capitalize on the know-how of our Canadian engineers, we must take action and focus on the development of brain power, the main raw material of leading edge, high value added sectors. We must also increase the productivity of our plants and development of our infrastructures, increase investment in research and development and provide for modernization of production.
The Réseau des ingénieurs du Québec recommends that government focus on the research and development diagnostic. Not only would this allow us to identify improvements most conducive to productivity gains, but it would also focus on the development of innovative and durable goods and services. We also urge the various levels of government to rethink innovation programs and include measuring the return on investment in terms of employment and know-how.
In innovation, the involvement of an engineer with expertise in various areas is essential. University and on-going training of engineers and the workforce in general remains a cornerstone of the success of our companies and a priority for the Réseau des ingénieurs du Québec. We need to remember that training our future engineering graduates is an important lever of economic development.
The good news for future graduates is that there is full employment for engineers in Quebec. The unemployment rate for engineers is hovering at 3% compared to 7% for the general population.