Canada: NSPS Shows Early Signs of Economic Growth

Only a few months after the Government of Canada announced the results of the National Shipbuilding Procurement Strategy (NSPS), early signs of economic growth are showing, with both shipyards actively engaged in recruitment strategies and seeking companies interested in being a part of their supplier chains.

Thousands of skilled workers are expected to be hired by the two selected shipyards to build Canada’s large vessels, and by their suppliers.

“Our Government is committed to supporting industries that promote employment and economic growth across the country,” said the Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women. “Our association with both shipyards is already paying off as we see early signs of economic growth, and we look forward to seeing the whole picture as work moves forward.”

Irving Shipbuilding Inc., which was chosen to build the combat vessels, and Vancouver Shipyards Co. Ltd., selected to build the non-combat vessels for the Royal Canadian Navy and the Canadian Coast Guard, are pleased with the increased interest in their shipyards from skilled workers and potential suppliers.

The two selected shipyards are also actively recruiting and are getting ready to act as a catalyst of economic growth by establishing online supplier registries that will allow suppliers to enter relevant information on their organizations. Given the nature of the long-term strategic sourcing arrangement with the Government of Canada, the shipyards selected to build large vessels were asked to make commitments to improve their competitiveness and to contribute to the health of the Canadian marine industry over the long term. Through this initiative known as the value proposition, the shipyards will invest 0.5 per cent of the value of the upcoming contracts into priority areas such as human resources development, technology, and industrial development. This will be a contractual commitment of the shipyards in any resulting contract, to be paid for by the shipyards entirely at their own expense.

Significant opportunities are also expected for small- and medium-sized enterprises to provide their goods and services to the selected shipyards and other suppliers involved in building the ships. The Industrial and Regional Benefits (IRB) Policy will apply in much the same way as it applies to any major defence or security procurement. The Policy encourages the shipyards to support companies, including small- and medium-sized enterprises, through direct and indirect business activities related to the NSPS series of contracts. The shipyards will be required to undertake IRB business activities in Canada totaling 100 per cent of the value of the respective contracts.

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Shipbuilding Tribune Staff, February 26, 2012; Image: gc