Canadian Renewable Energy Industry Research Paper

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Introduction

Canada is endowed with huge natural resources and frequent resources of water, solar, wind and other forms of renewable energy resources. All of these can be exploited for the generation of energy. The profile of the renewable energy resource industry in Canada is likely to witness a big boost in the coming years. It opens up a window of opportunity for big businesses to invest in emerging technologies and help their commercialization on a very big scale.

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The expanding industry has immense promises for the Canadians who will have cheaper sources of energy available in near future. All of these resources can be used as renewable sources of energy. Solar energy is a very affluent source of renewable energy. It is the most pragmatic option in Canada owing to the sleek skies of the country. It can be harnessed to generate energy in the shape of electric power, air or raising the temperature of the water. “Energy conservation and efficiency together with low-impact renewable energy resources such as wind, solar, biomass, hydro and earth energy promise to help produce a world that is clean, safe, secure, productive, and efficient for everyone everywhere” (Peter J. Catania, Naomi Balaban, 110).

Canada s’ photovoltaic industry embraces 50 companies, most of which are designers or implanters of residential systems. It is surmised that the Canadian PV industry has produced more than C$100 million. It facilitates employment to hundreds of families according to statistics collected four years before. Most of the companies with such systems install or design the systems in specific geographical areas with small teams.

There are also many genres of specialists on the panels of the industry, employing approximately 625 persons in 2004. The prospects of industry expansion have always remained bright, enticing Canadian to gear their enhanced attention towards producing energy with the help of photovoltaic instruments. “At the end of 2004, the estimated capacity for PV electricity production was 14 MW in Canada, compared to 1.86 MW in 1995. In Canada, average annual market growth for PV technologies was 24 per cent over the past 11 years”(IC). As the demand has increased the costs of the relevant technology is dropping, making it easy for the Canadian population to buy cheaper source of energy.

The demand for energy is surging. Rather than relying on coal and oil the Canadian companies are looking at the skies to exploit the potentialities of the sun rays. The rising profile of solar energy can be estimated from the fact that the Ontario government is receiving a large number of applications initiatives. Some of the largest projects are being given final shape to install. Solar energy is making most of the volume of renewable energy resources projects to quench the thirst for energy. Consequently, it is likely to produce more energy too. However, there is a need for more backing from the federal government of the provinces in their drive to produce solar energy.

Government subsidies do work to launch projects and when they stand on the ground, it has the option to withdraw support. The industry can flourish well if the government crafts policies as Germany has done in this regard. In Germany, the government has come up with several measures which are taken as incentives by the industry to have encouraging effects.

The solar panels in Canada can work more tremendously in fulfilling the demands of energy if the Canadian government leaves no loopholes in her policies to make them commensurate with the standard norms being practised in those parts of the world where the industry has made frantic strides. “Canada should meet our commitments on renewable energy made at the international on renewable energy conference in 2004 in Bonn and adopt a truly national renewable energy strategy.

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The objectives of a National Renewable Energy Strategy should be to: Recognize the environmental, economic and social value of renewable energy in meeting Canadian and international goals of reducing environmental impacts (especially climate change), promoting economic development and improving world energy security” (CREA, Why a National Renewable Energy Strategy?). While the experts are thinking of plans to accumulate the power in the electrical grids, there is broad consensus that the future of solar power in the country is very bright.

As the mercantile interest in solar energy rises, solar farms will get the status of a common phenomenon in the outskirts of the country as fields are awash with photovoltaic cells to make emission-free energy. There is no doubt about the fact there solar energy industry is gaining ground in Canada. There is a need for more government interests backed by public pressure to make this industry a big success story. To make this happen, persistent efforts on part of the people and government are required.

Canadian Furniture Industry

The Canadian furniture industry is composed of domestic furniture including inflatable pads, office furniture, cabinets, blinds and shades. All these items have descending share in the industry. Six years back, the Canadian furniture industry exported items worth more than thirteen billion dollars. Most of this industry is located in central parts of the country with Ontario capturing a major chunk of exports.

It also employs approximately half of the workforce of this industry. Quebec also greatly contributes to the industry. America is the market for Canadian furniture products. “Canadians are more involved with choosing the furniture and furnishing product materials when it comes to recent trends, style, design, and elegance. Canadians follow the recent trend of intelligent furniture that provides entertainment units that are smart, user- friendly and aesthetically pleasing” (U.S. Commercial Service, Canadian furniture). The annual growth rate for this industry has been more than ten per cent in the last decade. Canada s’ ranking as an exporter of furniture is number two.

The furniture industry of Canada manufactures items of diverse nature. Most of the industry is operated by families and small firms. Despite all this Canadian furniture industry has encountered problems competing with its rivals in the international markets. “Canada contributes only 2 per cent of the world furniture market, in comparison to 28 per cent in the U.S., 15 per cent in Japan, and 10 per cent in Germany. 95 per cent of Canadian exports are destined for the U.S., which was 15 per cent of their total imports. On the contrary, Canada imported $816 million of furniture, 60 per cent of which are of U.S origin” (Alexandra R. McKirdy, The Canadian Renewable Energy Guide. Solar).

The labour costs in Canada are higher which plagues the potential of the industry in international markets and compels companies to relocate to the regions of the world where labour costs are cheaper. Canada imports the American hardwood logs and re-exports them to other countries as Canadian furniture. The furniture industry of the country has acquired much stability during the last ten years. “The number of furniture manufacturing plants decreased by 32 per cent between 1990 and 1999, from 2,571 to 1,748.

However, total employment and average establishment size grew, 56 per cent and 69 per cent, respectively. Production is composed of household furniture (including mattresses), office and institutional furniture, kitchen cabinets, countertops and other manufactured products. Exports have been an engine for growth as Canadian furniture exports increased by 383 per cent between 1992 and 2001, including substantial export growth to the United States” (Lashonda, The Canadian furniture industry presents opportunities for U.S. hardwoods).

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The fledging housing industry has provided the impetus for employment in the furniture enterprises and more requirements for furniture. NAFTA has given the right incentives for the industry and Canadians send their goods to the neighbouring countries. These goods have the advantage of gaining duty-free access and thus the exporters are encouraged to dispatch more goods to these destinations. As the housing industry in Canada has seen an upsurge, the consequent expansion in the appliances industry is also being witnessed. With increased housing units being made, industry forecasts for this year indicate a big year for major products.

Microwave oven sales have been increasing over the last five years steadily. Appliance sales in the country are regarded as a plausible benchmark of consumer trust in the economy. “As of 2004, the major furniture employer remains the household and institutional furniture and kitchen cabinet manufacturing segment with 62,521 employees or 61% of total employment in the furniture industry. This segment is followed by the office furniture segment with 33,610 employees or 33%. The other furniture segment (which includes mattresses) accounts for only 6,298 employees or 6% of the total” (Global Wood Network, Employment And Wages In The Canadian Furniture Industry).

Canadian Appliance Industry

The Canadian appliance industry is comprised of a number of appliances. “The household appliances market reflects the sale of six product sectors: refrigeration appliances (including fridges, freezers and fridge freezers), cooking appliances (including cookers, microwaves, ovens, cooker hoods, food processors and toasters), washing appliances (including washing machines, clothes dryers and washer-dryers), heaters (which include space heaters and water heaters), vacuum cleaners, and dishwashers” (PR, Household Appliances in Canada).

The overall sale expansion at the start of the new century has been more than four per cent. As demands for the products grow the appliances are becoming affordable for Canadians. There is a considerable degree of product saturation. The average number of hours consumed to purchase an appliance has declined as compared to the past. Considerable transformation of home appliances is expected as new technologies are coming to the fore coupled with design changes.

“New and European-influenced designs, the continued popularity of stainless steel and the emerging capability for internet connectivity, for example, will have an obvious impact on the appearance and operation of our household appliances. Less obvious, but no less important, are the ongoing improvements related to energy efficiency and environmental sensitivity”(CAMA, “Canada’s Appliance Industry Poised for Change). Appliances are being made more and more energy conservation-friendly and thus energy use of these instruments has fallen significantly.

The industry prospects for this year are also very bright. “The Canadian Appliance Manufacturers Association (CAMA), an Electro-Federation Canada (EFC) council, today announced the latest market research for the Canadian Appliance industry in its published report, Major Appliance Industry Trends & Forecast. In 2008, CAMA calls for an increase of 3.7% for the five core white goods products. Shipments to the retail channel are expected to reach 4.532 million for the five core products; however, the builder channel is expected to remain flat at 652,000 for 2008. Laundry products are expected to lead the way in growth for 2008, with a forecasted growth of 4.6% for washers and 5.4% for dryers” (Swati Patel, Major Appliance Industry Trends & Forecast Report Now Available!).

The association is also seeing a very rosy scenario in the years to come. Three per cent growth is being hoped in the next two years with possible growth in the retail channel. The builder channel is expected to witness negative growth as housing construction goes to lull in the coming years. The previous year remained very positive too for the industry. The industry has been giving very good results to the Canadians in terms of employment and affordable products and Canadians were awash with these items in their homes. They provide comforts of life to the people and encourage another sector of the economy to grow.

All three industries of the Canadian economy are witnessing expansion and have shown great results in recent years. The revenues from these industries have been increasing and trade potential is being rightly harnessed. There is a need for more government support and incentive for these industries to outperform their rivals in international markets. Energy is the fundamental need of every industry and the advent of solar panels will give a boost to the rest of the industries.

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The government of Canada must encourage those provinces that are already making an ambience where this industry will flourish and more applicants for the installation of solar panels will come forward. Coordinated efforts of all institutions will work and the productivity of these efforts will be seen whenever executed in true letter and spirit. The profile of these three industries will accomplish much for the Canadians in terms of employment and other benefits. Canada has exploited the NAFTA framework to its advantage and consequently, her exports in the region have always been very high. Exports have remained quite well and the overall growth rate has also been quite satisfactory. Canadian share of exports in the world is remarkably well due to the contribution of these industries.

There is a need to rationalize labour costs and make them in line with the standards being practised in the region otherwise these industries will suffer and the growth may be reversed to the level of stagnancy and recession. The government is conscious of the gravity of this situation and has taken various measures to maintain the momentum of industries to meet future targets so that coffers of testate remain full and she keeps on devising various welfare plans for the people. relevant researching bodies also have a great role to play as they continue to guide various segments of these industries to move in a joint manner to overcome the obstacles which have always hindered the onward progress and barred them to realize their true potential.

References

Peter J. Catania, Naomi Balaban, Energy 2000: The Beginning of a New Millenium : ENERGEX : Proceedings of the 8th International Energy Forum. International Energy Foundation. CRC Press, 2000.

IC, “Solar Energy”. 2008. Web.

Lashonda McLeod,” The Canadian furniture industry presents opportunities for U.S. hardwoods”. AgExporter. FindArticles. Web.

Swati Patel, “Major Appliance Industry Trends & Forecast Report Now Available”. 2008. Web.

CAMA, “Canada’s Appliance Industry Poised for Change”. 2008. Web.

Alexandra R. McKirdy, The Canadian Renewable Energy Guide.Solar Energy Society of Canada. General Store Publishing House, 1999.

CREA, “Why a National Renewable Energy Strategy?” 2008. Web.

Global Wood Network, “Employment And Wages In The Canadian Furniture Industry”. 2008. Web.

U.S. Commercial Service, Canadian furniture. 2008. Web.

PR, “Household Appliances in Canada”. 2008. Web.

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