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Findings by Region


Saskatchewan 5

The environment sector in Saskatchewan is composed of approximately 286 companies generating nearly a quarter billion dollars per year in revenues. Over the last two years 66% of the firms have seen an increase in sales and the future holds excellent prospects for more growth. Firms tend to be small in this sector, with 66% having less than 15 full time employees and 18% with greater than 50 employees. Total employment is roughly 3700 people. Technology and equipment manufacturing companies represent a small percentage of the industry but generate nearly 50% of the total environmental revenues. Oil and gas and mining are the largest sectors serviced by the environmental industry, which is reasonable considering they represent 14% of Saskatchewan’s GDP. Agriculture, forestry, transportation and utilities are the next largest sectors serviced. In the environmental sector the primary market is local (provincially), though for some companies their primary markets are outside of the province and outside Canada. Seven market areas account for almost all of Saskatchewan's environment industry activity. The local market accounts for 82% of business, followed by Western Canada, Central Canada, Atlantic Canada, the Northern Territories, the United States and Mexico. The United States and Mexico stand out significantly from the other export markets in terms of rate of return on investment and market potential.


STRENGTHS:

The top areas of expertise are in ecosystem management, audit and site assessments, and environmental remediation. Saskatchewan’s arid environment has resulted in a cluster of world-renowned expertise in the area of water supply, wastewater treatment and groundwater. With 60% of the world experiencing similar arid conditions and environmental challenges this is also a marketable strength within Saskatchewan’s environmental technology. Eighty five percent of environmental technology activity in Saskatchewan comes from small businesses, which tend to be more flexible when seeking out opportunities. This flexibility is seen as a key driver of innovation. In Saskatchewan 35% - 40% of the exporting market is now non-traditional. This includes environmental knowledge, services and technology.

EMERGING OPPORTUNITIES:

Saskatchewan’s size and limited resources have often been considered as barriers to economic growth. However out of these challenges have emerged the talent and ability for industry, government and research institutions to collaborate. There are a number of collaborative projects occurring in Saskatchewan that have an environmental focus. These include:

  • Communities of Tomorrow, a collaboration project between federal, provincial and municipal governments will focus on using Regina as a demonstration site for environmental technology, initially in the water sector. The University of Regina has created an Environment Chair and is host to a new research facility, the national CO2 Sequestration Centre with a demonstration site at Weyburn. The National Research Council Institute for Research in Construction - a $10 million Centre for Sustainable Infrastructure Research is the second partner and the City of Regina is the third partner.
  • The Canadian Light Source (Synchrotron) Project at the University of Saskatchewan, Canada's largest science project will be in operation in 2004. The environmental sector is one of three priorities for the Canadian Light Source.
  • The Forestry Centre in Northern Saskatchewan is a partnership between the Saskatchewan Department of the Environment and the Department of Industry and Resources to support development of the Forestry Industry.
  • An Eco-village being developed in Craik, a rural Saskatchewan community is an excellent example of economic vision and collaboration.
  • Saskatchewan BioProducts, an organization mandated to build the bio-products industry. Environmental technology is seen as a key component to this emerging sector.


IMPEDIMENTS TO OVERCOME:

Three key strategies that Saskatchewan environmental companies see as possible tools to overcome impediments to growth include; developmental financing to meet the needs of SME's; program development to assist with stakeholder education; and more self regulation of the industry by the industry.

  • There needs to be better cooperation and coordination amongst Government departments and agencies to ensure environment industry companies know of and have better access to programs. Greater consistency in orientation (the focus of programs regularly change), and simplified access and processes for these programs (funding caps are too high for Saskatchewan SME’s) must be developed. A tax credit system for environmental technology development would help provide affordable financing so that companies can leverage developmental funding as required.
  • A unified voice is required to enable the Western Canadian environment industry to develop local preference policies that would promote adoption of home grown technology locally. Companies and government in Saskatchewan need to see the advantages of being early adopters of technology and solutions developed locally.
  • The certification or verification of environmental technologies needs to be done internally by the environmental industry to minimize the customer's risk.

5 Saskatchewan Regional Analysis for the Environmental Industry, Prepared For Western Economic Diversification by SEIMA, Saskatchewan Environmental Industry and Managers Association, November, 2003

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