Statistics and Industry Profiles

Ocean Technology Facts

Definition

Size of the Industry

The ocean technologies industry consists of few large companies and many small and medium-sized firms

A typical ocean technology firm employs 10-20 persons and generates sales on average of $100 000 to $120 000 per employee

Canadian Company Capabilities Database lists more than 500 ocean technology firms in Canada

Most ocean technology firms are located in the Atlantic provinces, British Columbia, Ontario and Quebec. Alberta hosts a few ocean technology firms related to the oil and gas sector.

The Domestic Market

Who's buying ocean technology goods and services?

• In 2000, the estimated value of domestic expenditures by marine and ocean industries on the ocean technology goods and services was approximately $600 million
• Exports are not reflected in the above estimate and are substantial, representing 95 percent of activity for some firms in the ocean technology sector.
• Most of the goods and services are purchased from the Atlantic provinces, British Columbia, Ontario and Quebec

...ocean technologies are largely services orientated...

...offshore oil and gas expenditures have the greatest impact on ocean technology firms...

• In 2000, offshore oil and gas exploration, development and production accounted for 43 percent of the total domestic demand for ocean technology goods and services in Canada. This percentage translates into a GDP impact of approximately $300 million.
• Offshore oil and gas demands account for most of the expenditures in Newfoundland's ocean technology sector and over half of the expenditures in the ocean technology sectors in Nova Scotia, Ontario and Alberta d

...in particular, offshore oil and gas exploration and development expenditures...

• This is especially the case for Newfoundland where 98  percent of the ocean technology goods and services purchased by the offshore sector were related to exploration and development activities d

...offshore oil and gas operations demand services...

• 97  percent of the total ocean technology purchases by Canada's offshore oil and gas sector are in the ocean technology services sector

...government defence operations demand goods

• Defence operations account for almost half of the total domestic demand for ocean technology goods. Most of the demand for ocean technologies through government defence operations consists of communications and related equipment

The International Market

A Solid International Reputation

• underwater vehicles for marine tourism
• hydrographic services and products
• coastal management technology
• remote sensing and satellite data analysis
• harsh/cold ocean engineering, products and services

International Competition and Opportunities

• Domestic and export competition comes from the United States, France, Germany, Norway, Japan, Sweden, the Netherlands, Denmark and the United Kingdom
• These countries maintain barriers to market entry by foreign owned companies. When market entry is achieved it usually involves a strategic alliance with a firm in the targeted country
• These countries have strong domestic purchasing programs through naval procurement or other applications, allowing export potential to remain strong
• Competing countries often use targeted aid or preferred financing arrangements to secure contracts
• Tier 1 firms from competing countries present a unified approach, combining government participation, private companies and university research
• International competitors have the ability to provide a turn key package for customers
• New market opportunities are emerging internationally with the growing environmental awareness that is fostering regulatory regimes in coastal zones. The European Union, for example, has regulatory directives and is implementing the polluter-pay principle while stiffer regulations have been brought about by the North America Free Trade Agreement
• New markets are also emerging with the obligations imposed on countries that have laid claim to their offshore regions as Exclusive Economic Zones (EEZ's) with the obligation to manage them in accordance with United Nations requirements

Strengths and Emerging Product Markets

• Canadian firms in the ocean technology fields are particularly strong at developing measurement and interpretative systems for data derived from over, on or under the ocean surface and beneath the ocean floor
• Some emerging areas of Canadian technological excellence include electronic navigation, electronic charts, spatial data management software, hydro acoustic data processing for advanced fish stock and biomass assessment, marine environmental monitoring and management systems, and sustainable management decision support
• Ocean technology equipment and expert advice from professionals are frequently used in designing offshore platforms, conducting environmental impact assessments and coastal management practices

A Pillar of Knowledge

Canada is also home to a number of private and publicly funded ocean technology research facilities:

• Fisheries and Oceans Canada laboratories
• National Research Council institutes
• Canadian Centre for Marine Communications
• Institute of Ocean Sciences
• C-CORE
• Groupe Universitaire de recherches océanographiques du Québec

Interpretation of Graphs

Graph 1:

The distribution of ocean technology firms across Canada's provinces:
Newfoundland 6 percent;
PEI 1 percent;
Nova Scotia 13 percent;
New Brunswick 5 percent;
Quebec 16 percent;
Ontario 29 percent;
Manitoba 1 percent;
Saskatchewan 1 percent;
Alberta 6 percent; and,
British Columbia 22 percent.  (return)

Graph 2:

The consumers of ocean technology goods and services:
Aquaculture, primary fishing and fish processing account for 12 percent of the demand for ocean technology goods and services;
Shipbuilding, repair and water transportation account for 13 percent of the demand for ocean technology goods and services;
Offshore oil and gas exploration, development and production account for 43 percent of the demand for ocean technology goods and services;
Defence operations account for 19 percent of the demand for ocean technology goods and services; and,
other government operations account for 13 percent of the demand for ocean technology goods and services.  (return)

Graph 3:

Expenditures on ocean technology goods and services by type of good or service:
Architecture, engineering and other scientific and technical services 49 percent;
miscellaneous business services 28 percent;
computer and related services 15 percent;
other communication and electronic equipment 4 percent; and,
other ocean technology defined goods 4 percent.  (return)

Graph 4:

Expenditures on ocean technologies by province and consumer: Newfoundland aquaculture, primary fishing and fish processing approximately 5 percent of the total driver industry impact, shipbuilding, repair and water transportation approximately 2 percent of the total driver industry impact, offshore oil and gas exploration development and production approximately 81 percent of the total driver industry impact, defence operations approximately 1 percent of the total driver industry impact, other government approximately 11 percent of the total driver industry impact; PEI aquaculture, primary fishing and fish processing approximately 32 percent of the total driver industry impact, shipbuilding, repair and water transportation approximately 13 percent of the total driver industry impact, offshore oil and gas exploration development and production approximately 12 percent of the total driver industry impact, defence operations approximately 5 percent of the total driver industry impact, other government approximately 38 percent of the total driver industry impact; Nova Scotia aquaculture, primary fishing and fish processing approximately 6 percent of the total driver industry impact, shipbuilding, repair and water transportation approximately 2 percent of the total driver industry impact, offshore oil and gas exploration development and production approximately 56 percent of the total driver industry impact, defence operations approximately 26 percent of the total driver industry impact, other government approximately 10 percent of the total driver industry impact; New Brunswick aquaculture, primary fishing and fish processing approximately 20 percent of the total driver industry impact, shipbuilding, repair and water transportation approximately 12 percent of the total driver industry impact, offshore oil and gas exploration development and production approximately 16 percent of the total driver industry impact, defence operations approximately 26 percent of the total driver industry impact, other government approximately 20 percent of the total driver industry impact; Quebec aquaculture, primary fishing and fish processing approximately 17 percent of the total driver industry impact, shipbuilding, repair and water transportation approximately 24 percent of the total driver industry impact, offshore oil and gas exploration development and production approximately 27 percent of the total driver industry impact, defence operations approximately 17 percent of the total driver industry impact, other government approximately 15 percent of the total driver industry impact; Ontario aquaculture, primary fishing and fish processing approximately 12 percent of the total driver industry impact, shipbuilding, repair and water transportation approximately 16 percent of the total driver industry impact, offshore oil and gas exploration development and production approximately 43 percent of the total driver industry impact, defence operations approximately 14 percent of the total driver industry impact, other government approximately 15 percent of the total driver industry impact; Manitoba aquaculture, primary fishing and fish processing approximately 24 percent of the total driver industry impact, shipbuilding, repair and water transportation approximately 28 percent of the total driver industry impact, offshore oil and gas exploration development and production approximately 15 percent of the total driver industry impact, defence operations approximately 10 percent of the total driver industry impact, other government approximately 23 percent of the total driver industry impact; Saskatchewan aquaculture, primary fishing and fish processing approximately 25 percent of the total driver industry impact, shipbuilding, repair and water transportation approximately 31 percent of the total driver industry impact, offshore oil and gas exploration development and production approximately 20  percent of the total driver industry impact, defence operations approximately 12 percent of the total driver industry impact, other government approximately 12 percent of the total driver industry impact; Alberta aquaculture, primary fishing and fish processing approximately 9 percent of the total driver industry impact, shipbuilding, repair and water transportation approximately 20 percent of the total driver industry impact, offshore oil and gas exploration development and production approximately 52  percent of the total driver industry impact, defence operations approximately 11 percent of the total driver industry impact, other government approximately 8 percent of the total driver industry impact; British Columbia aquaculture, primary fishing and fish processing approximately 17 percent of the total driver industry impact, shipbuilding, repair and water transportation approximately 28 percent of the total driver industry impact, offshore oil and gas exploration development and production approximately 10 percent of the total driver industry impact, defence operations approximately 36 percent of the total driver industry impact, other government approximately 9 percent of the total driver industry impact; and, Canada aquaculture, primary fishing and fish processing approximately 12 percent of the total driver industry impact, shipbuilding, repair and water transportation approximately 13 percent of the total driver industry impact, offshore oil and gas exploration development and production approximately 43  percent of the total driver industry impact, defence operations approximately 19 percent of the total driver industry impact, other government approximately 13 percent of the total driver industry impact.  (return)

Graph 5:

Distribution of expenditures from offshore oil and gas exploration and development versus offshore oil and gas production by province: Newfoundland offshore oil and gas exploration and development 98 percent vs. offshore oil and gas production 2 percent; PEI offshore oil and gas exploration and development 41 percent vs. offshore oil and gas production 59 percent; Nova Scotia offshore oil and gas exploration and development 59 percent vs. offshore oil and gas production 41 percent; New Brunswick offshore oil and gas exploration and development 70 percent vs. offshore oil and gas production 30 percent; Quebec offshore oil and gas exploration and development 71 percent vs. offshore oil and gas production 29 percent; Ontario offshore oil and gas exploration and development 74 percent vs. offshore oil and gas production 26 percent; Manitoba offshore oil and gas exploration and development 88 percent vs. offshore oil and gas production 12 percent; Saskatchewan offshore oil and gas exploration and development 86 percent vs. offshore oil and gas production 14 percent; Alberta offshore oil and gas exploration and development 98 percent vs. offshore oil and gas production 2 percent; British Columbia offshore oil and gas exploration and development 98 percent vs. offshore oil and gas production 2 percent; and Canada offshore oil and gas exploration and development 74 percent vs. offshore oil and gas production 26 percent.  (return)