Jim Ciccateri Ministry of Jobs, Tourism & Skills Training and Responsible for Labour

1. LNG-Buy BC Program October 14, 2014 Presented to: Manufacturing Professionals’ Network Camosun College Technology Access Centre • Jim Ciccateri • Ministry of Jobs, Tourism & Skills Training and Responsible for Labour

2. Where it is all happening Where it’s all happening

3. The Program • Announced by Premier Clarke during UBCM September 2013, the Program aims to: • Generate broad awareness of LNG opportunities • Promote ways for B.C. businesses to take advantage of LNG opportunities • Connect LNG project proponents with B.C. businesses • Ensure both B.C. businesses and proponents access the on-line registry • Engage industry associations, economic development agencies and chambers of commerce • Coordinate with organizations doing similar procurement work Outreach to proponents /industry/ communities to advocate and raise awareness Workshops to help B.C. businesses become suppliers to LNG projects LNG conference/trade show to showcase B.C. capabilities and drive business-to-business connections On-line registry to help connect LNG project proponents with B.C. businesses and market internationally to highlight B.C. goods and services

4. Gordon Wilson was appointed Advocate for LNG-Buy BC in October 2013 to: Research best practices for for supporting local business participation in LNG/major projects Outreach to proponents/ industry/ communities to understand their needs Advocate Outreach Provide information to businesses wanting to engage in LNG development Build awareness of LNG-Buy BC program and online tool. (How it works and what companies need to do to benefit) Drive proponent and contractor utilization of the on-line tool Promote the annual LNG Conference & Trade Show

5. 18 workshops delivered in 7 communities across the province • Delivered Contractor-Supplier Boot Camp & How to Respond to an RFP workshops in: Prince Rupert, Terrace, Kitimat, Prince George, Kamloops, Kelowna and Vancouver • Provided information to B.C. businesses on supplying major project proponents: • Understanding supplier requirements demanded by major corporations and contractors • Learning how to respond to Request for Proposals • >600 businesses participated! • Click to add caption Supplier Workshops

6. Global attendance included LNG project proponents and major LNG industry suppliers • LNG-Buy BC delivered: • Trade show with exhibits by 100 B.C. businesses; including more than a dozen aboriginal-owned businesses • 3 panel presentations by LNG proponents; BC supplier company success stories ; Presentation on Australia’s buy-local program • >100 B2B meetings between B.C. companies and LNG proponents/potential partners • 4 supplier workshops on how local companies engage with large corporations • Networking opportunities with LNG proponents and contractors • Next LNG-in-BC Conference planned for October 2015 LNG Conference & Trade Show

7. On-line Tool • Launching this fall • Pre-registration open now @ www.lngbuybc.ca • The Tool will: • Help make the connections your business needs • Generate exposure for your company • Promote your business capabilities • Help you find suppliers and business partners • Inform you of commercial opportunities • Keep you informed of major project activity • Key Features include: • Keyword searches on capabilities and expertise • Searches tailored to where you do business • One-step expression of interest in a business or opportunity • Opportunity tracking and change notification

8. LNG proponents and their prime contractors are global organizations with vast supply chains of proven suppliers. The normal drive for these companies is to rationalize their supply base, not expand it. Same message heard from original equipment manufacturers and global prime contractors in other sectors (aerospace, shipbuilding & energy). Even with a clear obligation to utilize local companies, their position is to only use local companies that are both qualified and competitive. They do not believe it is their job to develop B.C. companies. Global Supply Chains

9. Inlet Express is a B.C. company based out of Prince Rupert with offices in Cow Bay • Support local businesses and outlying communities with reliable water transport services • Vessels and services have been operational since 2007 • Initially rejected as a supplier - demonstrated a “can do” attitude and capability • Now is engaged as a qualified supplier with multiple LNG proponents Local Success

10. B.C. company located in Victoria • Global supplier of innovative environmental monitoring systems and technology tailored to industry needs • Leveraging current products to meet new market needs • Exploring strategic partnerships in order to bring a complete solutions for LNG Local Success

11. Action Health & Safety Services • B.C. company with HQ in Dawson Creek • Specializing in Oil and Gas Health and Safety Services since 1992; serving Northeast British Columbia and Northwest Alberta • Medical/First Aid Services /Safety & Security • Paramedic / Medic / Emergency Medical Responder • Occupational First Aid Level II • Rapid growth in business responding to proponent’s emphasis on safety Local Success

12. Local Success • In 1996 a small group of independent fluid hauling Owner Operators joined together and formed Energetic Services in Fort St. John. • Working together with high standards and integrity, they stand out against the competition. • Innovators in the industry • Eagle Eye Monitoring

13. Future Actions Under Consideration Under Construction Connecting B.C. businesses with LNG projects B.C. needs a mechanism for helping small and medium-sized companies enter and compete in global supply chains. The on-line tool can provide the starting point / minimum requirement for proponent access to further government support to meet procurement needs. Our immediate next step may be to focus on helping companies pre-qualify. Beyond pre-qualification, we are exploring how to provide B.C. companies with a full suite of supplier development support. • Click to add caption

14. Awareness and assessment should be our first priorities; they set the foundation and direction for all improvement efforts. Proven training methods and materials already exists which can be leveraged in B.C. Best practices can and should be drawn from a number of industrial sectors. Eventual integration of training into post-secondary institutions can help build an effective learning & support network across the province. An effective supplier development program includes: Awareness Assessment Training & Expert Support Mentoring Auditing A program that addresses the full spectrum of supplier development needs will allow B.C. businesses to access the support they need, when they need it. • Click to add caption Best Practices of Supplier Development

15. Supplier Development Initiative • An opportunity for LNG-Buy BC to deliver a broad-based supplier development initiative • Supporting provincial goals in key sectors (LNG, shipbuilding, aerospace, power generation & distribution) • Coordinating the efforts across government will create greater efficiency and efficacy in government’s efforts for B.C. businesses • Provide support measures in a manner that B.C. businesses are better able to respond to and benefit from

16. Supplier Development Programs PRESENTATION OVERVIEW • Several other provinces have supplier development programs in place • Opportunities exist to partner with these programs and leverage their efforts. The Government of Nova Scotia and the Competitive Edge program in Manitoba are interested in working with B.C. • Western Economic Diversification is also interested in partnering with B.C. Recommendations to Industry Canada from the Aerospace Industry: To enable the creation of a world class supply chain in aerospace in Canada we need to ... create a National Framework for Supply Chain Development. A National Aerospace Framework for Supply Chain Development would contain the following elements: Create a path for small and medium sized firms to differentiate and grow through Supplier Development Programs geared to the global aerospace industry; Create a stable funding mechanism for Supplier Development Programs in Aerospace across Canada; Maximize collaboration between the small and medium sized firms and the OEMs, Tier 1 Systems Integrators and Tier 2 Equipment Providers; Develop a National certification framework that recognizes efforts made by SMEs that participate in Supplier Development Programs.

17. Benefits from Supplier Development Program Helps ensures B.C. businesses have an opportunity to participate in delivering goods and services to LNG and other major projects Provides support to companies in qualifying and competing in LNG supply chains Creates a coordinated, sustained approach to strengthening B.C. businesses; improving accessibility by businesses and better utilizing government resources Addresses the root cause of economic challenges, not the symptoms Provides a pathway for companies toward improved competitiveness Establishes a strong foundation that supports government’s investment in research, technology and skills training Provides long-term integration of productivity skills and knowledge into post-secondary educational programs Facilitates greater flow of federal industrial regional benefits to British Columbia

18. LNG-Buy BC Action Plan Under Construction • Promoting operational excellence • Assessing the operational performance of companies • Training companies in key areas • Training experts to support the supplier development program • Providing expert support to companies implementing systems and undertaking transformative change • Integrating Lean thinking into post-secondary educational curricula • FY 2014/15 • Continue to generate awareness • Indentify partners and establish goals & commitments for supplier development • Develop/adopt an assessment scheme • Identify pilot locations/companies • FY2015/16 • Conduct supplier assessments • Deliver pre-qualification support • Establish suite of training and support • Report early results at LNG Conference

19. Questions & Comments Questions & Comments Jim Ciccateri Director, Strategic Initiatives Tourism & Small Business Division Ministry of Jobs, Tourism & Skills Training p: 250.387.3600 | m: 250.216.5248 Ingrid Strauss Regional Manager | Vancouver Island / Coast Region Economic Development Division Ministry of Jobs, Tourism & Skills Training p: 250.952.6275 |  m: 250.202.6473 Do the right job and do the job right.