A 360 degree look at Canada

Stuart Harrison and I had the opportunity to get a 360 degree look at Canada’s economy recently.   The 360 Summit was hosted by our national counterpart the Canadian Chamber of Commerce and featured an all-star line-up of speakers in touch with the heartbeat of the economy.   

The day started off with five CEOs sitting on the stage talking about competitiveness and regulation, which was enlightening.
On Competitiveness
“Declining economic competitiveness in Canada should create the same gasp and concern just as if Canada went to an international hockey tournament and didn’t win a medal,” Mark Little, CEO Suncor.   It wasn’t a jab at one of Canada’s national sports, but a way to create a connection to the economy for all Canadians.  It matters that the country is competitive in business and the economy, not 14th place.

“Canada is fairly well positioned, but we continue to need skilled people to drive competitiveness,” Jad Shimaly of Ernst & Young.  “How do we feed that funnel?  We need to continue to foster innovation and generate Canadian owned intellectual property.”

Michael Doughty, CEO, Manulife. “We’re not an insurance company competing against other
insurance companies, we are competing against the companies who have a better, more effective, seamless experience for customers. We can’t fall behind in the digital transformation and skilled workforce and we need infrastructure that is world class in the physical and digital”

On Regulation
“There has to be a willingness of government to work with us.  That’s what’s made the difference,” Heather Chalmers, President & CEO, GE.  “Business must also be thoughtful in their approach of government.”
When it comes to regulatory environment, over the last 10-15 years Canada has dropped from 4th to 22nd on the list of developed countries and ease of doing business.  “Canada needs a comprehensive review of the tax system.   The last time one was completed none of the current federal party leaders
had been born.” Jad Shimaly, Ernst & Young

“Energy projects take about 10 years to get shovels in the ground.  However, the pace of technology means the project submitted originally is modified and the process slows even further,” Mark Little, Suncor. “We’re not looking for cash; we’re looking for a yes.” 

“Regulation existed before the internet and yet there has not been much change to allow for the environment the internet created.” Phillip Jette, Cogeco. “We have done more investment in the US because of the regulatory burden in Canada.” 

“We are not risk averse; we are looking for regulation that supports our growth,” Jette, Cogeco.

The session wrapped up with agreement on the main challenges nationally:

1. Regulatory burden reduction
2. Talent
3. Free interprovincial trade
4. Tax reform
5. Government that supports all stakeholders in the system

The group then heard from VP and Deputy Chief Economist at RBC Dawn Desjardins who left us with a few key points. 

• Despite, all that is going on there is an easing up of economic uncertainty
• Risk of recession in 2020 is lower.  One thing to watch was consumer confidence.  Right now, people have jobs.  If that changes, then we should be concerned.
• The housing market is expected to grind higher in 2020
• Eliminating interprovincial trade barriers in Canada is key and would add about .6% to GDP.  In comparison, international deals such as CETA and CTP-TPP, add about .5%.   

The morning wrapped up with a discussion about Canada in the global economy.  The panel encouraged Canadian businesses to export their services and knowledge as much as products and that businesses need access to markets and help with the cost of risk which is where Export Development Canada can help.

The panel also noted the following:

• Canadian businesses need to diversify their trading partners
• Think Glo-cal (Global and Local at the same time)
• Emerging economies are seeing growth of the middle class
• Canada cannot ignore what’s going on economically in China – a slowdown in China still leads to an economic growth rate higher than the rest of the world.
• Free Trade agreements (Canada has 51) are a way to open the door to a market 
• Different business models will be required for success
• There is great value in the Canada brand.
• Food is a huge part of the export puzzle for Canada

Learn more about the Canada 360 event at chamber.ca