Happy New Years continue from FedDev!  That agency is providing $18.9 million to the Canadian Manufacturers & Exporters to deliver SMART Prosperty Now. Information provided on the website states:
“CME SMART Prosperity Now, administered by Canadian Manufacturers & Exporters (CME) and funded by Federal Economic Development Agency for Southern Ontario (FedDev) is about fostering the long term growth for small to medium size businesses. Ontario manufacturers must promote growth by transitioning to a more sustainable business model through enhancing productivity, integrating new and innovative technologies to products and/or processes that include alternative energy and clean technology considerations for future prosperity and global export opportunities.”

There has definitely been no Cone of Silence as the Federal Government issued a press release on January 10.  The Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) , announced the funding  in Brampton, Ont.

Earlier SMART rounds were very popular with Ontario manufacturers.  Previously, SMART provided up to 50% and $50,000 for project costs which included capital items.  Normally, government programs do not contribute towards equipment purchases.  SMART did. In this round maximum funding has been increased to $75,000 although SMART will provide a maximum of just 33% for Productivity Enhancement projects.  Applicants should be able to identify quantifiable objectives such as increasing throughput, decreasing labour costs, reducing waste etc. Successful applicants in previous rounds were able to demonstrate short-term payback, generally less than one year.

Funding is also available for Productivity Assessment projects to a maximum of $5,000 using the old 50% funding trick. That’s the first time this year. We encourage firms to utilize these tools as well.

SMART’s website indicates that data entry screens will not be available until February.  It’s not clear if this is because they are revamping the application process or CME is not set up to handle applications yet.  We recommend using the time available to prepare the necessary information for the application.  Use the time wisely to Get SMART! 

The Ontario government announced the creation of the Southwestern Ontario Development Fund (SODF) which will provide $80 million over 4 years.  News releases stated that the program will mirror the Eastern Ontario Development Fund (EODF) which the government claims has generated 11,000 jobs since its inception.

Details on the new program have not been released but the current model in Eastern Ontario, “…will provide 15% of eligible project expenses for implementation of new technologies, new equipment or skills training for employees for projects valued at $500,000 or more.”  The translation is that for a project of $500,000 in total costs (the minimum) EODF will provide $75,000.  This may seem like incremental funding but the monies can be used to leverage additional investment from other government programs and private sector sources. (More about leveraging in a later newsletter)

Private sector firms looking for EODF support must have:
• A minimum of 10 employees
• At least 3 years of financial statements
• At least 50% of the total project costs from internal sources or private sector investment i.e. minimum $250,000 for the smallest project
• A project that will create 10 net jobs in 5 years

“Economic development offices, business associations, and regional or sector organizations” can apply to EODF and receive up to 50% of eligible project costs on projects of $100,000 or more.

The hurdles are fairly high for most private sector firms.  However, EODF is a grant program.  There have been examples of government programs in the past where potential applicants were led to believe that they were applying for grants only to find out that the funds were fully repayable.  We look forward to seeing the details.

For assistance with EODF, SODF when it is rolled out, or other government programs call 519-419-0070 or check out our website at www.mteams.ca

At M-TEAMS, we get you money! 

DTAPP is open!

The National Research Council’s Industrial Research Assistance Program (IRAP) announced a new pilot program titled the Digital Technology Adoption Pilot Program (DTAPP).  The program will run to March 31, 2014 and is intended “…to help SMEs adopt digital technologies into their operations to improve productivity.”

IRAP will create DTAPP teams which will provide direct advisory services, funding (up to $100,000) and linkages to other expertise with the aim of improving the success of adopting a digital technology and consequently increasing client firms’ productivity.  The DTAPP team will develop an adoption plan which includes:

a. Analysis of firms’ current situations including baseline productivity measures, employment, and FYE financial information
b. Identifying changes needed in the firm. This may include implementing organizational changes, process changes, training employees, or adaptation of the scale or features of the digital technology to best meet requirements.
c. Reporting the outcomes of the technology adoption including lessons learnt and changes in productivity.

DTAPP services can include:

•     Supporting benchmarking and other diagnostic services.
•     Cost benefit analysis of various process and technology solutions
•      Access to expertise, facilities and workshops related to technology adoption, provided via colleges and other organisations.
•      Supporting feasibility and simulation studies
•      Identifying and sourcing appropriate technologies and supporting the adaptation of the technology to your operation’s needs.
•      Identifying and supporting training resources.
•      Providing independent review, quality assurance and feedback on the work performed by consultants

As always, when dealing with IRAP, contact your local Industrial Technology Advisor (ITA) first and see if he or she believes your situation warrants support.  Readers are referred to our website and encouraged to read “Tips for Successful IRAP Applications”.  If your firm decides to hire a consultant to contact IRAP on your behalf make sure that the consultant has registered as a Lobbyist .  M-TEAMS has registered and will be glad to assist your firm with its next IRAP or other government program applications.  For more information call 519-419-0070 or check out our website at www.mteams.ca

Tap into DTAPP! 

"Give us the tools and we shall do the job.”  So said Winston Churchill in the darkest days of World War II.  At that time Churchill was appealing to the Americans to provide Britain with weapons to hold off the Nazis.  Sadly, Britain with some exceptions entered the war with outdated weapons and insufficient equipment.  Many Britons undoubtedly lost their lives due to the priorities of its pre-War governments.  Similarly Canada has a long history of sending its citizen soldiers in harms way without the equipment they needed. 

In WWI our troops were equipped with the Ross rifle which did not withstand the rigours of trench warfare.  The Royal Canadian Navy barely survived between the wars and entered WWII with only 11 ships.  More recently, replacements for the aging Sea King helicopters were cancelled and our troops were sent to Afghanistan with Iltis jeeps and without appropriate uniforms.  In all instances our service people responded magnificently but at greater cost than was necessary.

Fortunately, Canadians recognize that our forces need the best equipment available and recent government decisions seem to be reflecting that recognition.  The F-35 contract is proceeding.  Our pilots will be able to fly with the best from our NATO allies.  The recent award of two shipbuilding contracts to the best yards in Canada is a model for non-politicized procurement.  We are also pleased that programs such as the Canadian Innovation Commercialization Program (CICP) and Defence Industrial Research Program (DIRP) are available.

CICP was the subject of an earlier newsletter and is on M-TEAMS’ Blog for reference.  It applies to procurements from all government departments.  However, DIRP is a specific program targeting the Department of National Defence.  Under DIRP DND will providing matching funds up to $500,000 for the development of leading edge technologies.  According to the DIRP website “ The primary objective of the DIRP is to support the strategic research interests of the Canadian Forces and to introduce new and innovative technologies into the Department of National Defence.”  This can only benefit our forces and the men and women who serve in them.

This Remembrance Day as we reflect on the human toll of more than 100 years of Canada’s wars and military commitments it’s good to know that there is a peacetime commitment to provide those who serve with the best that is available.  We should give them the best tools to do their jobs.  Lest we Forget. 

Titled “Innovation Canada: A Call to Action”, the Government’s Expert Panel chaired by Tom Jenkins released its report recommending sweeping changes to Canada’s R&D support programs.  Recommendations include:

1. Creating an Industrial Research and Innovation Council (IRIC), with a clear business innovation mandate
2. Simplifying the Scientific Research and Experimental Development (SR&ED) program by basing the tax credit for small and medium-sized enterprises (SMEs) on labour-related costs
3. Making business innovation one of the core objectives of government procurement, with the supporting initiatives to achieve this objective
4. Transforming the institutes of the National Research Council (NRC) into a constellation of large-scale, sectoral collaborative R&D centres involving business, the university sector and the provinces
5. Help high-growth innovative firms access the risk capital they need through the establishment of new funds where gaps exist
6. Establish a clear federal voice for innovation, and engage in a dialogue with the provinces to improve coordination and impact

Much as been written already about the report and this newsletter will offer only a few brief comments for now.

Simplifying the SR&ED program is a good idea.  However, eliminating materials will hurt our manufacturing base.  Manufacturing experiments can be extremely costly in materials consumed.  Hasn’t the manufacturing sector suffered enough?
Expanding the pilot Canadian Innovation Commercialization Program (CICP) is a good idea.  It’s a program that could benefit both Canadian innovators and taxpayers.
Transforming NRC makes sense.  The institutes have struggled (or maybe not struggled) to be relevant to industry.
Focusing on high-growth firms runs the risk of the Government trying to pick winners; something at which they are notoriously unsuccessful.

Hopefully, the Government will neither shelve this report nor legislate its contents verbatim.  If you are concerned obtain a copy of the report, read it, and address concerns to your MP and/or business/industrial association.  It’s too important to let this one slide. 

I am beginning to wonder if there are more service providers than there are producers these days.  Some of this is logical as companies are running leaner and cannot retain in-house expertise.  Some of my colleagues have years or decades of hard-won expertise in their fields.  Others have not made such convincing cases.  All of us, whether providing products or services, should be able to identify and state our Value Propositions.

According to Wikipedia, “A value proposition is a promise of value to be delivered and a belief from the customer of value that will be experienced.” Furthermore, “Developing a value proposition is based on a review and analysis of the benefits, costs and value that an organization can deliver to its customers…”  To put it simply the product or service that you are providing has to be worth more to your customer than the money that they are paying you; AND they have to understand that.  Otherwise, they will not buy from you.

Generally, sellers know their prices.  Most can articulate benefits.  How many can establish the value?  The seller should be able to say, “If you buy this from me you will reduce costs by $X or increase sales by $Y.”  The buyer should be able to calculate the payback.

At M-TEAMS our Value Proposition is that we help our clients obtain funds for specific projects; funds that they would be unable to obtain otherwise or without much greater costs to themselves.  We attempt to ensure that the benefits outweigh the costs by a factor of 10:1 on an ongoing basis. i.e. For every $1 that our customers pay us we target getting them at least $10.  That’s a payback of 1.2 months!

We're M-TEAMS.  We get you money!