Sask. needs to expand into emerging markets: economist

Saskatchewan is better positioned than most provinces to cash in on trade with emerging economies, says David Watt, chief economist with HSBC Bank Canada.

“The headwinds that have been holding up global growth are beginning to fade, and we have a prospect of better growth and better global demand in general,” said Watt. “Saskatchewan is very well-positioned, even better than Alberta and B.C., to take advantage of the opportunities of an improving global growth.”

Watt was taking part in an executive roundtable discussion put on by Canadian Manufacturers & Exporters (CME) — through the Saskatchewan Manufacturing Council — and the Saskatchewan Trade & Export Partnership.

He said emerging markets are going to be key drivers of the global growth in the coming decades and Canada needs to boost trade and exposure to those economies.

“Saskatchewan probably has one of the most diverse country lists that it exports to,” he said. “They have exposure to a number of countries around the world where growth is going to be increasing in the coming years.”

Saskatchewan Manufacturing Council executive director Derek Lothian said there is plenty of opportunities in the province’s manufacturing sector for growth.

“It is amazing how many people on the world stage know about Saskatchewan,” Lothian said. “We have a reputation for quality, for innovation and ingenuity, we have a reputation for paying our bills. That is why people around the world want to do business with us.”

In 2013 Saskatchewan manufacturers had a record $15.2 billion in sales.

“The growth will continue to be diversified from suppliers to natural resource projects right through ag. implements and through the supply chain,” Lothian said.

But there are challenges ahead, including an acute skilled labour shortage.

Lothian said they need to actively grow that workforce from outside and within along with policies at the national level that will encourage companies to make greater investments in more productive equipment.

Innovation is key, whether it is in the agriculture or oil and gas sectors, added Watt.

“(Innovation and greater productivity) will allow Canada and Saskatchewan to take advantage of these global trends because our view is the Canadian dollar is going to stay historically strong,” Watt said. “We need these innovative technologies in order to become more productive.”