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T Bird Arizona Canada Analysis (00238440)
This consulting project analyzes trade trends between Arizona and Canada, focusing on identifying key industries, companies, and economic opportunities. Key findings highlight strong bi-coastal trade, particularly in aerospace and clean energy sectors, with recommendations for industry-specific cluster development. The project emphasizes the importance of collaboration with Canadian economic development committees to enhance trade relationships.
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T Bird Arizona Canada Analysis (00238440)
- 1. CONSULTING PROJECT: C ONSULTANTS : A RIZONA -C ANADA E DWARD M ATLOUB S UPPLY C HAIN M ATT W ILLIAMSON LANDSCAPE F IKRE G URJA A NALYSIS S AMPAD DAS Y UTAKA OYAMA R OHAN V ERMA 1
- 2. P ROJECT GOALS • Analyze the trade trends between Canada and MAG region • Identify industries and companies crucial to trade between the two regions • Identify economic development opportunities based on these industries and trading trends 2
- 3. P HASES Phase 1:Identify goods traded between Arizona and Canada Phase 2: Identify Canadian Provinces/Metros that do the most trade with the MAG region Phase 3: Identify key companies and Metro specific trends Phase 4: Analysis Results & Final Recommendations by April 30, 2012 3
- 4. K EY FINDINGS • S TRONG BI - COASTAL TRADE PATTERN • A EROSPACE : INTEGRATE , COLLABORATE , CONSOLIDATE • C LEAN - ENERGY: COMPETITIVE ADVANTAGE , OPPORTUNITY TO TRADE WITH C ANADA • I NDUSTRY SPECIFIC CLUSTER DEVELOPMENT IS ESSENTIAL FOR FURTHER DEVELOPMENT 4
- 5. Why Canada? • SignificantTrading Partner: US-Canada bilateral trade 2011 -2 nd largest export market Total trade California 6.0% Texas -4 th largest import market 5.9% $557 Billion Arizona $3bn 0.5% Source: US Census Bureau – Foreign Trade • Cultural & economic fit: • Tourism Other • Investment 87.6% • Trade • Canadian-owned companies employ Source: Industry Canada Trade Data Online 13,156 people in 736 locations in Arizona! 5
- 6. Canadian Provinces Total Population is 34.1million the majority of whom live near the US border 2011 Canada GDP growth at 2.3% Metro populations (2011): ◦ Toronto ~5.6m ◦ Montreal ~3.8m ◦ Vancouver~2.3m ◦ Ottawa ~ 1.2m ◦ Calgary ~1.2m ◦ Edmonton ~1.2m Population: 26.62% GDP Growth: 3.63% Population: 66.67% GDP Growth: 1.75% 6
- 7. Trade between Arizonaand Canada % of Total Exports by Region - 2011 Trade Trends British Others 1,800 Columbia 9% 1,600 1,546 1,566 11% 1,401 1,400 Total Values ($ Millions) Ontario 1,383 1,182 1,202 1,363 Alberta 45% 1,200 12% 1,216 1,055 Quebec 1,000 23% 800 895 % of Total Imports by Region - 2011 600 Alberta Others 400 8% 4% British 200 Columbia 0 12% 2007 2008 2009 2010 2011 Quebec Ontario 14% 62% AZ Exports to Canada AZ Imports from Canada Source: Industry Canada Trade Data Online 7
- 8. AZ Exports toCanada - 2011 Aerospace products and parts Navigational, measuring, medical and control instruments Automobile and light-duty motor vehicles Computer and peripherals Agricultural products British Columbia Alberta Quebec $32M $24M Ontario $73M $159M $41M $43M $24M$24M $27M Source: Industry Canada Trade Data Online 8
- 9. AZ Imports fromCanada-2011 Aerospace products and parts Navigational, measuring, medical and control instruments Automotive Commercial and service industry machinery Wood and wood products British Columbia Alberta $41M Quebec Ontario $52M $26M $41M Source: Industry Canada Trade Data Online $140M 9
- 10. Canadian Metro Landscape Vancouver Calgary/Edmonton Toronto Montreal Digital Media Energy Aerospace Aerospace Utilities Mining Finance Life Sciences SURE Cluster Technology Automotive Technology 10
- 11. Canada - AerospaceLandscape Atlantic Canada 5.6% Western Canada 13.6% Quebec 51.9% Ontario 28.9% Canadian aerospace revenue by region Edmonton Vancouver Avionics Other Space 4.7% 4.6% 3.4% Calgary Montreal Simulation & Training 5.1% Toronto Aircraft Aircraft Engines 49.2% 13.8% Aircraft assembly & engine manufacturing Aircraft MRO- Aircraft parts manufacturing & systems development 19.2% Robotics, navigation systems & MRO Helicopter services , training centers & design Canadian aerospace revenue by subsectors Source: Deloitte – Profile of the Canadian 11 Aerospace industry 2010
- 12. Aerospace: Bilateral Trade $400 mm $120 mm $55 mm • Honeywell leading supplier of Avionics, Propulsion Systems and APUs in Bombardier’s product line. • Booming Asian Aerospace industry strengthens this relationship Increased trade & collaboration 12
- 13. Aerospace Action Plan Goal Utilizeacademic institutions to attract and retain top aerospace firms Academic Competitive Advantage Institute Core Competencies Aerodynamics and Fluid Mechanics, Helicopter Electromagnetics, Control Systems, Combustion Dynamics, Aeronautical Management Technology Opportunities Companies Research Institute Education Industrial Association 13
- 14. Canada – EnergyIndustry Landscape Renewable Energy Source: Calgary Economic Development : “Sustainable and Renewable Energy”. Source: Canadian Centre for Energy Information 14
- 15. Epcor’s $470mm Investmentin AZ • Diversified electricity and water services provider headquartered in Edmonton, Alberta • Wholly-owned by the City of Edmonton for over 100 years • Strategy: – Pursue rate regulated and long term contracted investment opportunities Acquired Chaparral City Water Company Source: EPCOR Utilities Inc.: Investor Presentation-Feb 2012 15
- 16. Capital Power Opportunity •Solar Sales in the valley are rising and investment is increasing • Epcor has a minority interest in Capital Power • Opportunity for Capital Power to expand Energy (Solar) presence in the valley • Solar special use permit anticipated to be filed Q1-2012 Capital Power’s Operations and Western Canada growth focus on four energy sources: Ontario Pacific US Northwest Northeast 49% 36% Mid- Atlantic US US Southwest EXPLORING 14% DEVELOPMENT Plants in operation Plants under construction or development Source: Capital Power Corporation: Investor Meetings-Stuart Lee, SVP Finance & CFO. January, 2012 16
- 17. Renewable Energy ActionPlan • AZ Solar Industry: $2bn, 16K jobs • Growth - 333% v/s 109% US avg. • Additional 2,100 jobs; more than $1 billion invested since 2010 • Aggressively promote renewable energy target of 15% by 2025 • Strengthen associations like AriSEIA – major competitive advantage 17 Source: Phoenix Business Journal
- 18. Summary Western Canada Eastern Canada • Focused on Tourism & • High value trading partner Investment • Top trading industry: • Top trading industry: Aerospace & Equipment Agriculture manufacturing • Opportunity to promote & • Consider: Supplier partner in clean energy database for Aerospace & growth focus research partnership with Institutions Partnership with industry clusters , trade associations & Economic Development Committee's is vital 18
- 19. Important Observations • Establishworking relationships with Economic Development Committee's in major Canadian metros • Ensure that industry clusters in key Canadian cities are aligned to those in AZ • Infrastructure must support these clusters 19
- 20. THANK YOU FORYOUR TIME C ONSULTANTS : E DWARD M ATLOUB Q&A M ATT W ILLIAMSON F IKRE G URJA S AMPAD DAS Y UTAKA OYAMA R OHAN V ERMA 20