Thank you very much, Mr. Chair.
I am pleased to be presenting this afternoon on behalf of Canada's extensive network of colleges, institutes, CEGEPs and polytechnics. Our members serve over 1.5 million learners in 3,000 urban, rural and remote communities throughout Canada.
It's a special honour to be appearing not only alongside my esteemed colleague Mr. Davidson, but also with one of our members, MaryLynn West-Moynes, the president of Georgian College in Barrie, Ontario.
We very much welcome the committee's study on manufacturing and fully recognize the importance of this sector to Canada's economic development and future employment. Colleges and institutes have a close relationship with the manufacturing sector and it can be summed up in two words: skills and innovation.
As you all know, manufacturing has undergone dramatic changes over the past decade. The traditional assembly line is a thing of the past. The people employed by today's successful companies are working with highly sophisticated equipment and software. They're using robotics, 3D printers, computer-aided design, and state-of-the-art testing and quality assurance techniques. In addition to these job-specific abilities, employers seek graduates with strong essential skills in areas such as communications and financial literacy.
The competition for qualified labour is fierce. According to the Canadian manufacturing network, job vacancies are going unfilled because 65% of applicants lack the required skills and 53% lack sufficient work experience.
Colleges and institutes are mandated to respond very directly to these needs, with a special focus on the current and emerging requirements of the employers in their regions. This means they have especially close ties with small and medium-sized businesses, including those in the manufacturing sector where 60% of jobs are in SMEs. The certificates, diplomas, and degree programs offered by our members are all developed in consultation with employers through program advisory committees to ensure that curriculum is aligned with current needs and that graduates are job-ready. The vast majority of programs include work-integrated learning, ranging from work placements and applied research projects to co-ops, internships, and student-run enterprises. Our students get invaluable work experience and on-the-job training as part of their education, and employers get the best job interview possible.
The challenge in training for the manufacturing sector is staying current or, better yet, one step ahead. Colleges and institutes need to provide their students with access to the equipment, software, and facilities they will encounter in the workplace. Employers who want to remain competitive turn to recent graduates for the state-of-the-art knowledge and experience that will allow them to upgrade and innovate within their existing operations.
These industry-driven demands make the government's recent announcement of $2 billion in funding for post-secondary infrastructure especially welcome in our community. This will go some way to meeting the $8 billion in innovation infrastructure and equipment needs identified recently by our members.
Next Wednesday, CICan will release its applied research report for 2014-15 at a Hill Times event called “Sparking Innovation”. You'll be particularly interested to see that in 2014-15 alone, more than 5,500 private sector firms turned to the R and D services offered by colleges and institutes. Unfortunately, many more were turned away due to lack of program funding. SMEs, including microenterprises, make up 86% of these companies and more than half come from the manufacturing sector. Overall, this represents a significant portion of the 24,000 Canadian firms that conduct R and D and claim SR and ED credits.
The research services provided by colleges and institutes are highly focused on industry innovation. They meet the needs of their partners by providing access to facilities and cutting-edge equipment, and, more importantly, access to the time and expertise of professors and students.
Our projects all fall in the category of “applied research”. In manufacturing, examples would include product development and enhancement, prototyping, testing, process improvement, and experimenting with new materials and equipment. There is also support for business innovation such as improving the work environment, expanding to new markets, and developing new strategies for interacting with customers and the firms in their supply chains.
Colleges and institutes are known for their ability to respond quickly to business needs. This is particularly important for small firms whose limited resources require easy access to places where they can de-risk their innovation investments.
The vast majority of projects are completed in less than one year, with about 25% wrapped up in under six months. Faculty understand the business environment because most have worked in industry, and many have been entrepreneurs themselves. Attractive intellectual property policies generally allow partners to retain IP, which speeds project start-up time significantly.
Satisfaction with these services is evidenced by the investments that businesses themselves, including SMEs, bring to these projects. Federal research funding allocated to colleges and institutes is matched dollar for dollar by the private sector.
The involvement of students in almost every project is another defining feature of the innovation services offered by colleges and institutes. Working on an applied research project gives students experience in solving a real-world problem and developing soft skills related to communication, project management, and working in multidisciplinary teams. The chance to work directly with local entrepreneurs also gives students insights into the innovation process and how to run a business.
Our latest data show that more and more colleges and institutes are offering their services through specialized research centres and labs. The number of these facilities has more than doubled in the last five years to 763 in 2014-15, with manufacturing and building technology accounting for the largest portion. There are now 156 in operation across the country. The work they are doing makes for some great stories. For example, the technology access centre at Camosun College in Victoria, B.C., recently worked with Canadian Paralympic athletes on wheelchair seat design to maximize their performance in the 2016 Olympics.
Some of these centres are also exploring creative ways to collaborate with one another. In a couple of weeks, we'll see the formal launch of the technology access centre network, a national consortium of 25 centres that expands the very successful Réseau Trans-tech model in Quebec. Funded by NSERC, the TACCAT network aims to harmonize applied research approaches, share best practices, and foster cross-country collaboration that can benefit industry clients.
Colleges and institutes are very active in broader research networks at the local, provincial, and national levels, many of which are sector-specific. In manufacturing, a good example is the Consortium for Research and Innovation in Aerospace in Quebec, CRIAQ, which brings together a number of universities, CEGEPs, their technology transfer centres, known as CCTTs, and over 55 industry partners to identify and implement pre-competitive projects that meet the aerospace industry's requirements.
Incubators and accelerators are also becoming common features on campuses across the country. Conestoga College has a specialized accelerator called the advanced manufacturing technology catalyst. The AMT catalyst supports early-stage start-ups in Waterloo and Guelph-Wellington, providing business training, mentoring, networking, lab space, and technical support to post-secondary students and graduates. These young entrepreneurs are focused on advanced manufacturing technologies and processes related to hardware devices, medical devices, recycling technology, robotics, food manufacturing, and more. Half of those who graduated from the inaugural class have already started a business.
Mr. Chair, in closing, we know that your committee is just beginning its study of the manufacturing sector and that over the coming months you'll be very closely involved in much broader discussions about research and innovation in Canada. On behalf of colleges and institutes across the country and CICan itself, I want to convey our enthusiastic commitment to working with the government, with this committee, and with individual members of Parliament, as well as our partners in universities, industry, and communities, to leverage the full potential of our institutions to contribute to Canada's innovation agenda.
Thank you very much for the opportunity to speak with you today. I look forward to your discussions.