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Market Research

Environmental Market in Canada

The Canadian environmental market is a unique matrix made up of the many end-users of products and services combined with the varied provincial and federal legal frameworks and guidelines, differing by jurisdiction. The market is driven largely by Canada's resource-based industries including pulp and paper, mining, and energy producers, although the largest end-user group is composed of local governments. New legislation such as the revised Canadian Environment Protection Act (CEPA), passed September 14, 1999 is expected to have an impact on the market although to what extent remains to be seen. Growth is occurring in selected areas within the market and includes a demand for products and services related to air pollution control, monitoring and assessment; water treatment; hazardous waste remediation; livestock pollution, and health and hygiene issues.

Statistics Canada, the lead Canadian government department responsible for all forms of data collection, is continually reassessing the value of the total environmental market. Statscan valued the Canadian environmental market for 1997 (the most recent available) at $8.3 billion. Assuming real growth of three percent in the 1997 - 2000 period, the total market environmental market for goods and services in Canada for 2000 will be $8.6 billion.

The U.S. Commercial Service in Canada: Aside from providing market reports (IMIs &ISAs), the United States Commercial Service (USCS) can further help U.S. firms in meeting their Canadian export objectives via selected services and trade events. The USCS Gold Key Service is one example of how U.S. companies can locate a Canadian representative or partner in any of the five regions we service. The USCS in Canada offers other selected programs such as our Dealmaker events which include GLOBE 2000, Canada's leading environmental trade show and conference. For more information on the Canadian environmental market, please contact: Richard Vinson, Commercial Specialist (Halifax), tel: 902-429-2482, fax: 902-429-7690, e-mail: richard.vinson@mail.doc.gov. Also, please see our CSCanada contact list at the end of this report.

Market & Growth

By any measure, the focus of almost 70 percent of all environmental business in Canada occurs in the provinces of Ontario and Quebec, the locations of most of Canada's industrial base. Using 1997 Statistics Canada data (also considered relevant for 1998-2000), Ontario alone accounts for one-half of the total consumption in Canada of all environmental goods and services, while Quebec accounts for just over 20 percent. The provinces of Alberta and British Columbia are each at about 10 percent of total consumption, while the Atlantic provinces of Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland account for 5 percent. The balance of the environmental business goes to Manitoba, Saskatchewan, and Yukon and the Northwest Territories.

Real growth in Canada's environmental market is expected to be maintained at between three and five percent in the 1998 - 2000 period. Beyond 2000, the market will level off somewhat with annual real growth of less than three percent. However, with such a wide range of environmental goods and services to track, these figures are best estimates only. Products and services related to specific sector components such as hazardous waste remediation and air pollution control are expected to show real growth of at least five percent. Also influencing market growth will be the revised Canadian Environmental Protection Act(CEPA). Bill C-32, passed on September 14, 1999 remains subject to interpretation and has yet to be fully tested in commercial settings. Some of the key topics within the act which are expected to affect the market include:

- a new federal environmental registry;
- Environmental Protection Alternative Measures;
- Pollution Prevention Planning requirements for industry;
- environmental quality guidelines and codes of practice;
- dealing with 'virtual elimination' of toxic substances;
- environmental protection compliance orders;
- new terms of reference for biotechnology products;

The complete CEPA is available at http://canada.justice.gc.ca/Loireg/index_en.html. As well as CEPA, the following topics are forecast to be among the principal market drivers over the next five years.

Market Opportunities

Health and the Environment - Based on concerns expressed by Environment Canada, and evidenced by industrial and institutional hiring of new staff in 1999, this topic has moved up the list of issues which are important to the Canadian market. New funding and initiatives are expected in 2000 which will address the working and living environments of Canadians, especially children.

Water Treatment Infrastructure - Canada still has municipalities which are discharging raw sewage into waterways. Some of these situations are being addressed while others remain without a plan to resolve. With most municipal units in Canada under pressure to look after all types of aging and needed infrastructure, there is a clear need for not only the treatment facilities but also for creative financing to get on with the job. Private-public-partnerships have been one method of addressing this need.

Air Pollution Control - Building on the theme of prevention rather than solely on end-of-pipe treatments, markets exist in Canada for the supply of system solutions to various types of air pollution issues. Canadian end-users are especially interested in solutions which improve plant performance and directly affect the bottom line. Combined with the need for upgraded and integrated monitoring and analysis equipment, this component of the overall environmental market in Canada is expected to be one of the strongest performers over the next five years. (For more information on Canada's APC market, see: USCS Industry Sector Analysis - ISA "Canada - Air Pollution Control Equipment" Filed 10/99, available at STATS USA: http://www.stat-usa.gov/ )

Hazardous Waste Treatment - New funding was directed in 1999 to the remediation of Canada's worst environmental site, the Sydney Tar Ponds. This, combined with a notable commitment expressed by the federal government in October, 1999 to address the clean up of other toxic waste sites across Canada (which could number as many as 10,000), suggests that dealing with hazardous waste is about to enter a new phase.

Solid Waste Management - Canada's goal to reduce total solid waste by 50 percent by the year 2000 is proving out to be something of a moving target. While numerous examples of creative solutions and initiatives exist across the country towards meeting this goal, many municipal units have yet to implement the necessary programs. For example, Nova Scotia remains the only provincial jurisdiction to totally ban all organics from landfills (effective November 1, 1999). Working towards solid waste reduction, the demand will continue for proven composting systems and for the related support equipment required to make them work. Dealing with waste in Canada's larger cities such as Toronto, will also continue to take center stage.

Livestock Pollution - Alberta, Manitoba, Ontario and Quebec have all reported pollution problems related to wastes associated with livestock, notably hogs. The market exists for economical solutions to dealing with odor and runoff, not only for the larger 'factory' farms but also for smaller operations. The problem has led to the creation of a Hog Environmental Management Strategy for Canada which includes both government and industry representatives.


In 1997, the three largest end-user groups in Canada of environmental goods and services were local governments (19.7 percent); mining, energy and related products (11 percent); and forestry and forest products (10.4 percent). This breakdown is forecast to hold through 2000 and beyond. Local government is listed as the top client as a result of the spending by municipalities on waste management and water treatment facilities. Canadian industrial buyers of environmental goods and services are showing a clear preference for directing capital funds to improvements in production systems. These improvements must not only have pollution prevention and remediation as an objective. Buyers are also looking for on-site improvements which add to the company's bottom line, quite often through combined advantages such as reductions in power consumption and production efficiencies. Benefits directed to employee health via environmental process upgrading is another plus factor for a buyer's consideration.

Canadian Environmental Companies

Government of Canada sources estimate that the Canadian environmental industry is comprised of more than 5,000 small and medium-sized enterprises, generating more than $8 billion in annual sales. More than 800 firms are actively exporting, and 58 percent of export sales are to the United States. However, exports account for only 8 percent of total sales of Canadian environmental goods and services. About two-thirds of Canadian companies active in this sector are involved with consulting, environmental and energy engineering, scientific and technical services. The remaining companies are manufacturers of specialty products such as membranes for water treatment, heat exchangers, fuel cell technology, and custom contracting. The workforce associated with this sector is estimated at just over 200,000, spread across mostly smaller companies employing fewer than 100 people. About two-thirds of these firms are providing environmental services.

Many of Canada's environmental firms have developed expertise in providing environmental solutions to key sectors such as mining, oil and gas and pulp and paper. While waste management spending has leveled off, improvements in water treatment facilities are expected to continue as Canadian municipalities of all sizes make needed improvements to both potable and wastewater facilities.

The leading national organization for this sector is the Canadian Environmental Industries Association (CEIA). The association is very active in promoting Canadian exports and development within the environmental sector. The web site is recommended as a direct link to the member provincial associations and to the principal environmental internet sites in Canada.

Canadian Environmental Industries Association
350 Sparks Street
Ottawa, Ontario K1R 7S8
Tel: (613) 236-6222
Fax: (613) 236-6850
E-mail: info@ceia-acie.ca
Web site: http://www.ceia-acie.ca/

Canada and the International Environmental Market

Internationally, the Canadian environmental industry receives support from trade development agencies such as the Export Development Corporation and the Canadian Commercial Corporation. Canadian environmental firms are known to have well-established cooperative relationships with developing countries, and often take advantage of the assistance programs of the Canadian International Development Agency. There is strong support for international initiatives both from the Government of Canada and from a well-organized network of industry associations, led by the CEIA.

Implications for U.S. Companies

Staying close to the Canadian environmental market and the regulatory swings of the provincial and federal jurisdictions, will, in most cases, require some type of local presence. For off-the-shelf products, a traditional distribution system built around a national or regional network of dealers may be feasible for consumables or for items common to the industries within this sector. For larger systems and customized fabrications, a more intimate knowledge of the market is essential and is best acquired via some type of local representation.
U.S. environmental firms have used a variety of vehicles and business relationships in Canada to gain market entrance and share. Some of those strategies include:

- Building formal relationships with local manufacturers, where the Canadian firm provides value-added content, married with U.S. technology;

- Alliances with national or regional engineering and consulting firms, notably in a joint venture;

- Sub-contracting to the prime on a single project basis, often using Canadian technicians and trades staff;

- Forming consortia as a prime or sub-contractor, addressing the requirements of a specific project;

- Outright purchase of a Canadian company with a built-in network of contacts and information.

Finding suitable partners and representatives can be a daunting task for a new-to-market company, given that this sector includes so many small firms, organized primarily on a regional basis. One option for finding suitable representatives is to attend one of Canada's more notable environmental trade shows. Although most are small compared to U.S. standards, the seminar programs and exhibitors will usually prove to be an excellent source of information on the market, especially if the event is selected based on its particular strengths. Where trade shows may not address the area of interest, Canada is noted for numerous environmental associations and government organizations, most of which meet on a regular basis, offering ample opportunity for market insights and news of upcoming projects.

Environmental Trade Events for 2000

The following shows represent the principal environmental trade events in Canada for 2000. The GLOBE Foundation show and conference in Vancouver is clearly the most significant, attracting an international collection of exhibitors and participants. Globe 2000 is also notable for the significant USCS Dealmaker promotion being organized by our Vancouver office (see below). Since Ontario represents at least one-half of the Canadian environmental market, Envirotech should also be considered as a potential venue. Not included in this list is Americana, a Montreal event which occurs every other year. Americana is noted for its special focus on the Quebec market as well as on Central and South America. For more information on Americana, March 28-30, 2001 visit the show web site: www.americana.org. (All event web sites are highly recommended as sources of additional information.) Further, USCS staff in those cities where the shows are located can provide additional insights and advice on the merits of either exhibiting or attending the individual events.

GLOBE 2000
March 22-24, 2000 - Vancouver World Trade & Convention Centre

USCS at GLOBE 2000: As part of our year 2000 event program in Canada, the USCS has organized a complete Dealmaker trade mission and virtual show for GLOBE 2000. U.S. companies have the option of selecting four different tracks, all of which take advantage of our GLOBE program, see our CSCanada event web site: http://www.missionminder.com/ or contact event manager: Cheryl Schell, email: cheryl.schell@mail.doc.gov.

In addition to the trade show, the Globe 2000 conference program will feature tracks on energy and climate change; corporate strategies related to sustainable business practices; and global markets, notably Asia. The GLOBE 2000 web site provides considerable information, including the conference program. 400 booths
The Globe Foundation of Canada
504-999 Canada Place
Vancouver, British Columbia
V6C 3E1
Tel: (604) 775-1994
Fax: (604) 666-8123
Web site: www.globe.ca

Envirotech Canada 2000
June 5-7, 2000 - Toronto Convention Centre

Envirotech addresses the many environmental needs of the Ontario market but also has national level participation. This event profiles innovations in ground water remediation, occupational health & safety, industrial waste water treatment, instrumentation and control sampling, monitoring equipment, and site and soil remediation. 183 booths
SOUTHEX Exhibitions
1 Concorde Gate, Suite 800
Toronto, Ontario M3C 3N6
Tel: (416) 385-2030
Fax: (416) 385-1855
Web site: http://www.southex.com/

22nd Canadian Waste Management Conference & Trade Show
September 25-28, 2000 - Halifax World Trade & Convention Centre

A combined conference and trade show, the 2000 edition will feature several tracks, the most prominent being hazardous waste. This is a direct result of the remediation efforts directed to the Sydney Tar Ponds, also in located in Nova Scotia. Other tracks include oil & gas, composting, climate change and international environmental opportunities. 100 booths
The Nova Scotia Environmental Industries Association
P.O. Box 563
Dartmouth, Nova Scotia B2Y 3Y8
Tel: (902) 425-2154
Fax: (902) 425-2154
Web site: http://www.cwmc.ns.ca/

Calgary Environmental Trade Show & Conference
October 24-25, 2000 - Calgary Alberta Convention Center

Since Calgary is the home for many of the head offices of Canada's oil and gas companies, this regional show tends to feature technologies, products and services of principal interest to that sector. 99 booths
SOUTHEX Exhibitions
300,999 - 8th Street, SW
Calgary, Alberta T2R 1N7
Tel: (403) 244-6540
Fax: (403) 209-5517
Web site: http://petroleumshow.com/

Canadian Solid Waste Expo
November 29-30, 2000- The International Centre, Toronto,

With the Federation of Canadian Municipalities as one of the sponsors, this show clearly has a theme directed to the waste management requirements of towns and cities in Canada. Features products and services for collection, hauling, recycling and the disposal industries. 200 booths
Exposition Management Inc.
620 Wilson Avenue, Suite 210
Toronto, Ontario M3K 1Z3
Tel: (800) 787-9328
Fax: (877) 226-5355
Web site: www.exposition.com

Selected Environmental Web Sites

The following all provide additional insights into a wide variety of environmental activity in Canada.

Environment Canada

Strategis (Federal Govt. - go to "Business Information by Sector" - "Environment)

Canadian Environmental Protection Act (found under "Laws of Canada")

The National Round Table on the Environment and the Economy

Canadian Council of Ministers of the Environment

Canadian Environmental Industry Association

The U.S. Commercial Service - Your Business Partner In Canada

The U.S. Commercial Service provides U.S. firms with a wide range of cost-effective and highly efficient business development services in Canada, including market research, agent/distributor searches and corporate matchmaking. With professionally staffed offices in each of Canada's five regional markets, the Commercial Service assists U.S. firms in promoting their products and services and helps them realize their full export potential in Canada. Please call today and find out how the U.S. Commercial Service, your business partner in Canada, can help you join the largest trading relationship in the world.

For further information or assistance, please contact the appropriate regional office listed below, or visit the U.S. Commercial Service in Canada on the world wide web at: http://www.ita.doc.gov/cscanada

Region I - The Atlantic Provinces

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E-mail: Halifax.office.box@mail.doc.gov

Region II - The Province of Quebec

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Montreal, Quebec H5B 1G1
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Fax: (514) 398-0711
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Region III - The Province of Ontario

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Fax: (613) 238-5999
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Region IV - The Prairie Provinces and the Northwest Territories

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Region V - The Province of British Columbia and the Yukon Territory

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