Are Investissement Québec and its billions of dollars responsible for the growth of the most important modern economic factor, namely business productivity?
Its CEO, Guy LeBlanc, believes so, in part, although he is unable to make a direct connection. What is clear, however, is that the crown corporation has injected billions into business innovation over the past four years, on the one hand, and that productivity has indeed increased in Quebec, on the other. go.
As has often been said, our biggest challenge is no longer job creation, but productivity growth, a guarantee of our standard of living and a solution to the labor shortage. Productivity requires innovation, investment and a shift towards higher added value sectors.
However, the most recent figures from Statistics Canada, taken up by Investissement Québec on Wednesday, show a significant increase in the productivity of companies in Quebec for four years.
Thus, the output of Quebec businesses per hour worked jumped 3.3% per year between 2016 and 2020, on average, compared to 2.7% in Ontario. And if we subtract the abnormal pandemic year 2020, average annual productivity has jumped by 2% in Quebec, against 0.8% in Ontario and 1.1% in British Columbia.
In short, Quebec finally seems to have taken the much-desired turn, after years of underperformance in this area.
In 2016, Investissement Québec (IQ) launched the Innovative Manufacturers program, precisely with the aim of increasing the productivity of manufacturers of goods. In 4 years, the investor arm of the government has participated in the realization of 1,153 projects totaling 8 billion dollars, in which it has injected 2.4 billion in financing.
And for the Quebec manufacturing sector alone, targeted by the program, productivity is on average 1.9% per year in Quebec, against a decline of 0.4% in Ontario and 1.1% in British Columbia.
“I wish I could say we are 50% responsible, but in reality it might be 10%. We don’t know, but there is an impact, ”said Mr. LeBlanc, during a virtual interview.
In any case, for this Innovative Manufacturers program, launched before its arrival, IQ has just been awarded by the International Economic Development Council at the conference in Tennessee.
Last year, Investissement Québec extended this program to other sectors of activity, in a way, by launching the Productivity innovation program. And for the past year, the organization has participated in the financing of 2.7 billion dollars of new projects, thanks to an injection of 421 million from its own funds and 530 million from the Economic Development Fund (FDE) of the Government of Quebec. .
Some of the participating companies include Premier tech, Canam Ponts, Emblème cranberge, Métal 7 and Quali-T-Groupe, for example.
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Canam plant, in Quebec
These $ 951 million in public injections are equivalent to 40% of the 4-year objective set by IQ ($ 2.4 billion). And Guy LeBlanc says he will find the funds if demand exceeds the target, recalling that IQ can dispose of the profits of about $ 1 billion made last year as it pleases.
There is money, but also support and promotion in all regions of Quebec, in particular with our 18 Productivity innovation labs.
Guy LeBlanc, CEO of Investissement Québec
Innovation and improvement of processes make it possible in particular to reduce the need for skilled labor. The Quebec government will also announce measures to reduce the labor shortage in its mini-budget of November 25. In this regard, IQ was consulted on the role it could play, says LeBlanc.
The electric batteries sector
In addition, the electric battery sector occupies Guy LeBlanc every day. The boss of IQ ensures that there will be investment announcements in 2022 and that at the end of the day, we must now consider total investments of around 8 to 10 billion over a few years.
“There will be announcements to be made at the cathode and cell manufacturers within 6 to 12 months,” he says.
Quebec competes with the United States and countries in Europe, but it would be the greenest and least expensive in North America. He is also fighting against Asia, a leader in the field.
Quebec has the advantage of having resources (lithium, iron, phosphate, nickel, etc.), affordable labor and cheap energy. The industrial site of the city of Bécancour, with its port, is a site considered exceptional. Companies in the sector are currently reserving lots for it, and purchase transactions are being negotiated, he said.
“There are even more options than the last time we spoke [en juin]. This is very positive, but at the same time, there is work to be done at the level of sites, permits, and the production chain. Manufacturers want to have their customers and suppliers nearby, ”explains Guy LeBlanc.