There are three primary ways to generate new wealth in an economy: grow it, extract it or manufacture it.
For decades, Saskatchewan has been synonymous with the first two: an agricultural frontier, rich with both fertile ground and an abundance of natural resources from potash to diamonds to uranium.
However, softened commodity prices and a return to a more normal farm season meant that 2014 may go down as the year when manufacturing finally pushed its way to prominence and onto the provincial map as a core driver of economic prosperity, job creation and investment.
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That’s not to say 2014 was without challenge. Softened commodity prices also brought diminished demand for many industrial goods, particularly fabricated metal and machinery.
Pair that with ongoing uncertainty in Eastern Europe and continued protectionist rhetoric in the United States, and it would be easy to spot reason for apprehension.
However, as famed American author Norman Vincent Peale once said: “In every difficult situation, there is potential value.” And to realize that value, one must simply turn to the numbers for inspiration.
When the final Statistics Canada data for the year is released in February, Saskatchewan manufacturing sales are expected to total $16.5 billion.
It will be the third consecutive record year for output in the province, growing by more than 50 percent since the depth of the recession.
In fact, assuming the trends hold true in November and December, sales will have soared by more than 130 percent since 2000, compared to 10 percent nationally, while productivity will have increased by more than 125 percent.
Saskatchewan manufacturers will also sustain more jobs than the forestry, mining, and oil and gas sectors combined.
We quietly innovate, which is what manufacturers in Saskatchewan have always done. We build ambulances and pressure vessels, we help land spacecraft on speeding comets, we feed the world with the latest advancements in technology and we provide the customized solutions to attract some of the largest capital projects in the nation.
The industry is easily overlooked because of how entrenched it is into the fabric of the province. Frontier, Annaheim, St. Brieux, Englefeld, Langbank: take a tour through any one of these communities and you’ll quickly see the real impact of manufacturing: thriving schools, bustling grocery stores and banks and new recreational facilities.
Go for a drive in north Saskatoon or northeast Regina and marvel at the investments being made in our own backyard: every dollar in manufacturing sales generates up to $3.50 in total economic activity.
Yes, we are, and will be for quite some time yet, a province built around farming and resource development. But Saskatchewan is also a province of manufacturers — some of the best in the world.
Derek Lothian is executive director of the Saskatchewan Manufacturing Council and vice-president of Canadian Manufacturers and Exporters.
