Media Release - January 12, 2007

Media Release
Strategic action required to address critical talent shortage, say economic development officials

Revised January 17, 2007

OTTAWA, ON, January 12, 2007– Results from OCRI's annual Technology Industry Survey continue to illustrate an increased number of employees within Ottawa’s knowledge-based industries. At the same time, results highlight a need for strategic action to address a range of challenges and opportunities to build and strengthen the talent pipeline.

Data from the survey shows that the region has seen a 4.4 per cent increase in the number of employees working for knowledge-based companies within the Ottawa-Gatineau region in the past 12 months. The survey identified that 3,340 employees had been added to the high tech sector, bringing the total number of employees within knowledge-based companies to 79,466.

Growth in the number of technology companies has slowed over the past year, with the total number of companies operating within knowledge-based industries having decreased by 0.4 per cent to 1,803 during the past 12 months. Though new start-up creation is evident, the overall reduction is reflective of the large number of mergers and acquisitions within the local market.

"M & A activity in 2006 was at a level not seen since the tech boom, indicating the dynamic nature of our knowledge-based companies as they compete for customers, talent and capital in the global economy,” stated Jeffrey Dale, President and CEO, OCRI. “We’ve also seen our existing tech employment base become absorbed into mature companies—a direct result of local consolidation, where employees of companies like Potentia and Databeacon have merged into local multinationals, Tundra Semiconductor and Cognos.”

Strong M & A activity does however highlight underlying challenges relating to an overarching global trend of a critical talent shortage. With the growing need to act globally, the competitiveness of Ottawa’s knowledge-based industries will be increasingly dependent on the region’s talent base.

“Our survey figures are illustrating what we’ve been discussing for some time now—that if we do not address the technology labour force trends and plan for the future, then the ongoing supply of critical talent will be at risk,” continued Dale. “Our tech companies are at a turning point as economic prospects improve, yet changing market dynamics and global competition require new thinking in terms of labour force development. An ongoing talent strategy must be developed to ensure that Ottawa has the talent pool essential to the growth and competitiveness of our knowledge-based industries today, and tomorrow.”

“We need to stop riding the employment rollercoaster and engage industry, education and government to commit to a collaborative approach,” added Gary Davis, executive director, Ottawa Talent Initiative. “Employers need the avenue to convey the skill sets they require to those that can modify the training, certification and educational programs to be consistent with industry and employee needs. This industry-based intelligence is the key to retraining those already in the workforce, and those looking for future opportunities.”

Every year OCRI conducts the survey of local Ottawa technology businesses, primarily to develop an online database to assist companies and governmental bodies looking for information about companies, products and service providers. The survey data, reported directly from the companies, enables economic planning officials to identify trends within the region and calculate the total number of companies and employees. With the technology sector continuously diversifying, the survey was adjusted this year to allow the tracking of the ‘primary sector for operation’ alongside the ‘other participating sectors’ for companies. Over 90 per cent of the companies operating in knowledge-based industries located in the Ottawa region respond to the survey.

Visit http://www.ocri.ca/economicstatistics/htsurvey.asp for graphs of the above data.

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Background information:
Knowledge-based industries are defined as those which are intensive in their inputs of technology and human capital. Locally, this has been defined as those that classify as primarily operating within the following sectors tracked by OCRI: Telecommunications, Software, Contact/Customer Centre, Defence and Security, Wireless, Life Sciences, Semiconductor, Environment, eBusiness, Photonics and Technology Services that support these industries. It should be noted that industry definitions and classifications vary widely by country and therefore do not allow for comparative quantitative evaluation.

About OCRI:
OCRI (Ottawa Centre for Research and Innovation), the city's economic development corporation, is leading the way for Ottawa. OCRI is the rallying point to bring business, education and research together to create the winning economic conditions that allow Ottawa's technology companies to thrive locally and compete globally. At OCRI we promote sustainable economic development to maintain our high quality of life. For more information on OCRI visit our website at www.ocri.ca and for more information on the Ottawa Region please visit www.ottawaregion.com.