FRANCAIS

February 04, 2005

Winnipeg, MB – A new initiative by the Manitoba division of the Canadian Manufacturers & Exporters (CME) will strengthen the province’s manufacturing sector as a lean, skilled and competitive machine. The Advanced Manufacturing Initiative (AMI) will receive $1.84 million, consisting of matching federal and provincial shares, under the Canada-Manitoba Economic Partnership Agreement (EPA).

The Honourable Diane McGifford, Minister of Advanced Education and Training, on behalf of the Honourable Greg Selinger, Minister of Finance; the Honourable Raymond Simard, Member of Parliament for St. Boniface, on behalf of the Honourable Stephen Owen, Minister of Western Economic Diversification and Minister of State (Sport); and the Honourable Jim Rondeau, Minister of Industry, Economic Development and Mines, made the announcement today.

“The province is pleased to be working in partnership with manufacturers and educators to design a new Advanced Manufacturing Initiative to assist companies and train Manitoba workers to implement lean manufacturing principles,” said McGifford.

“The long-term sustainability of Manitoba’s manufacturing industry requires a continuous need for improvement and innovation,” said Simard. “Western Economic Diversification Canada expects this initiative will help companies more easily incorporate new technologies, processes, materials and advancements, while developing more efficient and consumer-oriented business styles – important factors for increasing productivity.”

The Advanced Manufacturing Initiative will consist of the delivery of Lean Programs, such as consortia, best practice tours, creating awareness for lean thinking and diagnostic tools, and human resources programs, such as lean manufacturing certificate programs, training delivery and communications. Lean thinking focuses on the reduction and removal of waste from manufacturing processes, but it also results in improvements in productivity, customer satisfaction, employee morale and overall enterprise success. Industry will contribute the balance of the $4 million in funding required for this initiative.

“One of the most important aspects of the Advanced Manufacturing Initiative is skills development,” said Owen. “Closing the productivity gap and ensuring our global competitiveness means identifying our human resources needs and investing in our labour force. The Government of Canada is pleased to support this project.”

“Manitoba’s manufacturing industry makes up a large part of our province’s economic base,” added Rondeau. “I am pleased to partner with our federal colleagues to make this project a reality.”

CME’s Manitoba division will coordinate this leading-edge venture which will enhance competitiveness and innovation through the implementation of lean thinking; enable provincial manufacturers to share best practices through the development of consortia and training programs; close the skills gap that exists in the industry today and drive a reality campaign about the 21^st century image of manufacturing.

“The reality is that Manitoba manufacturing accounts for 12 percent of all business activity in the province, as well as 12 percent of the entire workforce,” added CME Manitoba Division Chair, Roy Cook. “In Manitoba, manufacturing matters and through this initiative, we will ensure that the industry is the engine driving the economy today and tomorrow.”

In December 2003, the governments of Canada and Manitoba entered into a
four-year, $50 million Canada-Manitoba Economic Partnership Agreement (EPA). The two strategic priorities of the agreement are "building our economy" and “sustainable communities."

Together, and in partnership with community stakeholders, Canada and Manitoba are working to strengthen and diversify Manitoba's economy, build on existing economic strengths, enhance the skills of Manitoba's workforce and promote regional development. For more information on this and other projects funded under EPA, visit: http://www.epa.gov.mb.ca.

Federal funding for this initiative was provided for in the March 2004 budget.

- 30 -

BACKGROUNDER

CANADIAN MANUFACTURERS AND EXPORTERS – MANITOBA DIVISION

Advanced Manufacturing Initiative

Manufacturing firms in Manitoba face significant challenges today and for many, these challenges are threatening their survival.

The approximate 30 percent increase in the value of the Canadian dollar – relative to the US dollar – over the past two years, coupled with the rapid acceleration of offshore competitors’ penetration of North American markets, have seriously eroded the ability of the province’s manufacturers to compete profitably and retain their market positions.

Keeping Manitoba manufacturers competitive and profitable is the objective of the
$4-million Advanced Manufacturing Initiative (AMI). Through this three-year initiative, CME, in partnership with both the federal and provincial governments, will work co-operatively to ensure manufacturers achieve significant gains in productivity and effectiveness and as a result, sustain and enhance their global competitiveness.

The governments of Canada and Manitoba will earmark $1.84 million for their share of the total program with industry responsible for the remainder of the financing.

The AMI is focused in two areas – “Lean Thinking” and “Human Resource Development.”

Lean Thinking encompasses the body of knowledge surrounding manufacturing management theories, skills and techniques that has been developed over the past several decades by manufacturers throughout the world. The Toyota Production Management System is one of the cornerstones of Lean Thinking, but many other streams of knowledge have been incorporated such as Six Sigma, and World Class Manufacturing principles.

Human Resource Development, within the context of the AMI, focuses on enhancing the theoretical and practical manufacturing knowledge of the members of Manitoba’s manufacturing community. The Manitoba Productivity Report, a study commissioned by the provincial government, highlighted manufacturers’ concerns over the growing skills shortage and also emphasized the importance of human resource development and management in our province. The manufacturers surveyed noted the importance of leadership (and thus the need to attract and develop leaders), the need for leading-edge human resource management practices, skills shortages in skilled trades and supervision, a requirement for productivity improvement skills, and the need to develop awareness and enhance the attractiveness of careers in manufacturing amongst our province’s population. These priorities will be the focus of the AMI’s Human Resource Development program.

The AMI will address these specific areas, through the development of training programs on Lean Manufacturing principles and practices, leadership development, human resource management practices, skills training and other critical areas identified by manufacturers – in many cases, these programs will build on programs that are already being delivered within the province by various organizations, including CME-MB. The AMI will assist organizations to arm their people with knowledge and skills and will help their leaders develop their potential. The quality of our workforce is and will continue to be one of Manitoba’s greatest competitive advantages.

To achieve this result, CME-MB will act as the overall coordinator of the AMI and will commit resources from its existing operations in Manitoba, including administrative support, facilities, communications systems and most importantly management. CME-MB will be guided by an Advisory Council, made up of representatives from manufacturing firms, federal and provincial governments and educational institutions that will provide guidance and feedback on AMI activities and monitor progress on the success of various AMI initiatives.

AMI will also work closely with educational institutions in developing curricula, research projects and other programs that will advance manufacturing within our province.

This initiative is intended to help Manitoba’s manufacturers close the productivity gap that currently exists between most of the province’s firms and many of their competitors in other countries. More importantly, the AMI will assist Manitoba’s manufacturers to become world class and sustain and enhance the performance of the province’s manufacturing sector.

- 30 -