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Canwest News Service
A majority of companies in the small but enterprising clean-tech sector in Western Canada expect to be generating revenue by next year, according to a report to be released today.
A survey conducted for the report said more than half of the clean-tech firms in four western provinces including British Columbia have fewer than 10 employees and sales of less than $500,000 a year.
But 70 per cent of survey respondents expect to have a majority of their products and services on the market — as opposed to a research lab — by 2010, compared with 41 per cent in 2009.
Moreover, they're deriving 62 per cent of their revenue from outside of Canada.
The survey was conducted by international accounting and consulting firm Deloitte on behalf of Sustainable Development Technology Canada.
"Given the current economic weakness, and relatively slow growth seen in many more mature technology sectors, clean tech in Western Canada is likely to be one of the leading bright spots for economic growth and jobs," said the report titled Cleantech, Positioned for Growth.
"Their growth plans are impressive, with more than 50 per cent of companies planning on 2010 sales of more than $2 million — to fuel that growth, they will need to staff up, as many plan to double their [staff levels]." About one-third of the companies responding to the survey project their 2010 sales will exceed $10 million.
The report said about 90 per cent of companies in the survey were aware of opportunities to obtain funding from federal and provincial government programs including SDTC, and that 60 to 80 per cent either receive money or expect to soon.
However, the report also noted that "although government support is an important assist for an emerging industry, government provided only 15 per cent of 2008 financing with 21 per cent coming from private equity or venture capital, and an amazing 49 per cent internally generated from cash flow or founder's equity." The report notes the conventional view that Canada's western economy is dominated by resource sectors including energy and mining and "indeed, the majority of cleantech developers are focused on serving the oilsands, conventional oil and gas, mining and related energy services markets." But it notes that clean tech developers are also targeting a variety of other endmarkets, from utilities and renewable energy to consumer business and the public sector.
"With 62 per cent of their revenues coming from outside of Canada, it is clear that the cleantech companies surveyed are anything but regional players: They are providing solutions for global problems."
ssimpson@vancouversun.com
