B.C. equipped for cleantech manufacturing
Sector offers many economic benefits, write Ian Waddell and Kenneth McFarlane.
The COVID-19 crisis has, in B.C. and around the world, spawned a welter of proposals and documents concerning the nature of the economy in the post-pandemic period.
So far, we have the recommendations of the B.C. Emerging Economy Task Force and the Innovation Commissioner. These were released a few weeks ago. The Economic Recovery Task Force, consisting mainly of senior government officials, has begun work. Several private endeavours with experience and expertise soon will be reporting on their ideas.
Governments are concerned that recovery comes as quick as possible. Private contributors everywhere are more inclined to see this unprecedented period as an opportunity to rethink the very fundamentals of the world economy.
Unfortunately, the two B.C. government reports basically adopt a complacent approach. Most of the recommendations reflect the aspirations of the past decade. They’re long on generalities and short on specifics.
We can do better.
A sustainable economy is the goal. Unfortunately, in B.C., this generally means the pursuit of high-tech digital efforts. There are better alternatives. Cleantech manufacturing is one of these. Yes, manufacturing in B.C.
Manufacturing provides more desirable economic spinoffs — including good jobs — than other sectors of an economy. It involves the creation of equipment, appliances, components, parts and supplies for both domestic and international markets.
This sort of cleantech manufacturing has been operating for decades in Europe, particularly Germany and Scandinavia. A few examples are solar and wind power components, engine and machinery parts, cutting tools, wear-parts, medical instruments, musical instrument retrofits, household goods, and infrastructure repair components.
Three main factors have allowed businesses to make manufacturing much cleaner and more advanced.
First is the perfection of automation, 3D printing, AI, access to “big data” and computational precision as tools for design and production processes.
Second, universities are graduating more STEM-trained (science, technology, engineering, mathematics) people than at any other time in history.
Finally, the refinement of factors concerning the creation of advanced materials has allowed for previously unachievable innovation. This collection of factors takes us into the realm of Advanced Cleantech Manufacturing.
The “right” type of manufacturer will look carefully at balancing the three factors above, such that it can remain competitive in a tight world market, but also retain as many local employees and suppliers as possible.
How can such desirable companies be attracted to set up operations in B.C.?
The traditional neo-liberal approach of providing free land, free money and tax writeoffs has proven to be unsuccessful. One alternative is to create a Crown corporation to kickstart an Advanced Cleantech Manufacturing sector in the province. But this Crown would have to be more refined than other B.C. Crowns. Examples for review exist around the world.
A more likely fit might be to encourage private entrepreneurs to set up in B.C. They would primarily be concerned about having efficient co-operation from government around factors such as infrastructure, utilities, planning and regulations. If their concepts and business plans are exemplary, then the necessary debt and equity investments will become available, as has been demonstrated elsewhere.
Necessary intellectual properties can be accessed from anywhere in the world but hopefully, to maximize local economic returns, our universities will meet the challenge of developing the required technologies right here in B.C.
B.C. has no shortage of the three key factors noted above. It has the necessary ingredients for an Advanced Cleantech Manufacturing sector. What’s missing is a government commitment to encourage private business people to take reasonable risk, safe in the knowledge there will be facilitation to help ensure success.
If B.C. businesses were to pivot to this sort of economic sector, there would be no shortage of examples of what the road map should be. They simply need to observe the hundreds of amazing examples that exist around the world.