Productivity Assessment Survey 2010

For more information please contact:

Calgary Region Economic Partnership

Phone 403.851.2509

info@calgaryregion.ca

www.calgaryregion.ca

Calgary Region Economic Partnership

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.

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.

Introduction

Table of Contents

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

About the CRP and this Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IBC

About the CRP and this Project

Chestermere

CalgaryInt'l Airport

Cochrane

Bragg Creek

Redwood Meadows

Tsuu T'ina Nation

Turner Valley

Longview

Black Diamond

Okotoks

High River

Nanton

Kananaskis

to British Columbia

to Edmonton (251 km)

to US border (236 km)

to Saskatchewan

Stony Nation

BanffNational Park

KananaskisCountry

CanmoreBanff

Airdrie

Balzac

Irricana

Rockyford

Drumheller

BeisekerCrossfield

Strathmore

Siksika Nation

Standard9

8

7

1

1

1

24

22

40

40

22

22X22X

9

1a

1a

72

21

21

23

N

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 www.calgaryregion.ca

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.

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

38%

15%

23%

24%

82%9%

6%

3%Local/regional

Canada

North America

Global

Local/Regional

Canada

North America

Global

0% 10% 20% 30% 40% 50% 60% 70% 80%

Region

Calgary

over 250

101-250

51-100

21-50

11-20

6-10

1-5

Size of Firm, By number of Employees #3

Primary Markets, Calgary #1 Primary Markets, Region #2

0%

10%

20%

30%

40%

50%

60%

70%

80%

Worse

No Change

Better

Production ProfitSales

0%

10%

20%

30%

40%

50%

60%

70%

80%

Worse

No Change

Better

Production ProfitSales

Performance Expectations, Calgary #4

Performance Expectations, Region #4

0%

10%

20%

30%

40%

50%

60%

70%

80%

Not Applicable

Decrease

No Change

Increase

Machinery &Equipment

Information & Communication Tech.

Research & Development

Production Facilities

0%

10%

20%

30%

40%

50%

60%

70%

80%

Not Applicable

Decrease

No Change

Increase

Machinery &Equipment

Information & Communication Tech.

Research & Development

Production Facilities

Investment Intentions, Calgary #5

Investment Intentions, Region #5

.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Decrease

No Change

Increase

OverallWorkers

Skilled Workers

Unskilled Workers

Administrative Staff

Professional Staff

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Decrease

No Change

Increase

OverallWorkers

Skilled Workers

Unskilled Workers

Administrative Staff

Professional Staff

Planned Workforce Changes, Calgary #6

Planned Workforce Changes, Region #6

Lack of credentials/certification

Other

Read/translate technical drawings

Basic employability skills

Interpersonal

Trades proficiency

Entrepreneurship

Innovation/creativity

Continuous learning

Project management

Supervisory/management

Problem solving

Technical skills

0 6 12 18 24 30 36 42 48 54Number of Responses

Overall Workforce Skill Improvement Needed #7

Hire more people with disabilities

Outsource functions outside Canada

Hire more people from the Aboriginal community

Other

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

0 8 16 24 32 40 48 56 64 72 80

Number of Responses

Actions Taken to Meet Future Labour Needs, Overall #8

Managing mergers and acquisitions

Defending market share in the US

Other

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

0 6 12 18 24 30 36 42 48 54 60 66 72

Number of Responses

Challenges Facing Business Operations, Overall #9

Securing new investments/product materials

Exchange rates

Increasing automation

Other

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

0 3 6 9 12 15 18 21 24 27 30 33 36

Number of Responses

Determinants of Future Business Growth, Overall #10

Exchange rate fluctuation -when the Canadian $ is weak

Other

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

0 3 6 9 12 15 18 21 24 27 30 33Number of Responses

Strategic Challenges Faced, Overall #11

Other

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

0 5 10 15 20 25 30 35 40 45 50 55 60

Number of Responses

Constraints to Achieving Performance, Overall #12

Other

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

0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45

Number of Responses

Steps Being Taken to Overcome Constraints to

Achieving Measurable Performance, Overall #13

Purchasing

Other

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

0 5 10 15 20 25 30 35 40 45 50

Number of Responses

Benefits to Implementing LEAN Improvements, Overall #14

Lack of support from customers

Lack of support from senior management

Lean viewed as flavor of the month

Other

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

0 3 6 9 12 15 18 21 24 27 30 33 36Number of Responses

Obstacles to Implementing LEAN, Overall #15

Other

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

0 7 14 21 28 35 42 49 56 63Number of Responses

Critical Factors Driving Product Innovation, Overall #16

Short product life cycles

Parent company policy

Other

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

0 3 6 9 12 15 18 21 24 27 30Number of Responses

Constraints Faced in Bringing New Products to Market, Overall #17

Other

Formal innovation managementmethodology

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 toenable innovation

Collaborate with suppliers to design components/develop materials

Cross-functional design teams

Collaborate with customes todetermine requirements

0 5 10 15 20 25 30 35 40 45 50 55

Number of Responses

Tools & Techniques Used to Enable Innovation, Overall #18

0

10

20

30

40

50Region

Calgary

None Over 75%Less than 10% 10-25% 25-50% 50-75%

Proportion of Staff Receiving Formal, Company

Sponsored Training #20

Other

Communication skills

Customer service skills

Leadership management skills

Computer skills

Teamwork

LEAN/continuous improvement

Technical skills

Orientation of new employees

Health and safety

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70Number of Responses

Internally Provided Training Programs, Overall #19

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.

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.

Introduction

Table of Contents

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

About the CRP and this Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IBC

About the CRP and this Project

Chestermere

CalgaryInt'l Airport

Cochrane

Bragg Creek

Redwood Meadows

Tsuu T'ina Nation

Turner Valley

Longview

Black Diamond

Okotoks

High River

Nanton

Kananaskis

to British Columbia

to Edmonton (251 km)

to US border (236 km)

to Saskatchewan

Stony Nation

BanffNational Park

KananaskisCountry

CanmoreBanff

Airdrie

Balzac

Irricana

Rockyford

Drumheller

BeisekerCrossfield

Strathmore

Siksika Nation

Standard9

8

7

1

1

1

24

22

40

40

22

22X22X

9

1a

1a

72

21

21

23

N

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 www.calgaryregion.ca

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.

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

Productivity Assessment Survey 2010

For more information please contact:

Calgary Region Economic Partnership

Phone 403.851.2509

info@calgaryregion.ca

www.calgaryregion.ca

Calgary Region Economic Partnership