The National Buyer/Seller Forum in Edmonton concluded last week, with more than 900 delegates from across Canada and beyond on hand to learn about opportunities in the Alberta's oil sands. Of those, more than 300 from Alberta, 200 were from Ontario, 100 from Quebec.
Clearly, Alberta is where the action is. The province has $160 billion worth of oil sands developments and infrastructure to build over the next 10 years and it needs help meeting the demands of these massive projects.
In his keynote address, Canadian Manufacturers & Exporters president Jayson Myers noted investment will generate more than $1 trillion in new business opportunities. Putting it in perspective, he said it would take Canadian manufacturers and exporters over 86 years of exporting to China to realize the same business value.
For those of you who couldn't attend the event, here a few things you need to know.
- Yes, there's plenty of opportunity for you to apply your well-honed manufacturing expertise in Alberta, but you likely won't be doing volume business. Expect to do more customized, high-value work. Lots of one-offs.
- Alberta suppliers are expected to meet much of the demand for major equipment and services, but there will likely be opportunities providing pressure vessels and structural steel products, maintenance services, environmental services, maintenance of major equipment, pumps and compressors.
- There's lots of room on the MRO side. Imperial Oil Ltd. alone is looking at up to $600 million a year on maintaining, repairing and overhauling at its oil sands developments.
- There's about $18 billion worth of Alberta infrastructure projects planned over the next three years involving highways, wastewater management, schools, hospitals and community developments.
- You'll be competing against players from a global supply base. Buyers are looking for efficient manufacturers with proven track records delivering high quality products, on time and at a globally competitive price.
- Alberta's oil sands developments are responsible for a hefty share of Canada's industrial greenhouse gas emissions and are subject to much reporting, disclosure and compliance, which will lead to costly per-tonne penalties for exceeding targeted CO2 levels. This opens the door to environmental technologies that aid in the monitoring of emissions and improving energy efficiencies.
- There's no quick way in. You have to work on establishing a relationship and trust with your potential customers. An effective way into the market is to partner or collaborate with Alberta companies already established in the energy sector. And be prepared to commit to the sector long term.
There were some great presentations and keynotes at the conference. Some of the slides offer valuable background and statistical information. They weren't available at press time but they are to be posted at http://www.nationalbuyersellerforum.ca. To get an idea what the oil sands developers are looking for from potential suppliers, visit http://www.shell.ca/home/content/ca-en/about_shell/how_we_work/dir_how_we_work.html. For information regarding specific projects, check out the iCOSMO site at www.icosmo.ca.
Joe Terrett
joe.terrett@plant.rogers.com
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