Cleantech cleaning up in BC: $2.5B this year
What’s the hot, up and coming industry in BC? Cleantech, according to a KPMG report that says it has the potential to create thousands of new high paying jobs, attract significant new investment and generate billions of dollars in exports.
VANCOUVER: What’s the hot, up and coming industry in BC? Cleantech, according to a KPMG report that says it has the potential to create thousands of new high paying jobs, attract significant new investment and generate billions of dollars in exports.
The Cleantech Report Card for British Columbia conducted by KPMG in partnership with the BC Cleantech CEO Alliance, benchmarks the size and growth of the sector and identifies success factors and challenges to its continuing growth.
The report tallies 202 companies in BC that are focused on research, development or deployment of clean technological innovations. Of these companies, KPMG says more than two-thirds did not exist a decade ago.
In 2011, cleantech is expected to employ 8,400 people in BC, with the average industry salary of $77,000. The global consulting firm with offices across Canada pegs total industry revenues at $2.5 billion.
However, the report concludes BC faces stiff competition from other jurisdictions.
Here are some survey highlights:
• 202 cleantech organizations were identified as operating in BC.
• 68% of the respondent companies were formed in the last 10 years.
• Total revenues by all firms in the BC cleantech industry are forecast to increase by 57% from $1.6 billion in 2008 to $2.5 billion in 2011.
• Total employees for 2010 are estimated to be 7,200 with an average salary of $72,000; 8,400 are expected to be employed this year, an increase of 31% over 2009.
• Estimated annual payroll for 2010 is $520 million, with the federal government receiving tax income of $78 million and the province $28 million.
• Total equity raised by all firms is estimated to be $843 million over the last 24 months
and $4.8 billion since inception.
• The cleantech industry has benefited from support through Scientific Research and Experimental Development (SR&ED) programs, Sustainable Development Technology Canada (SDTC), the federal Industrial Research Assistance Program (IRAP) and Innovative Clean Energy (ICE) Fund support.
When asked about initiatives that would support the growth of the industry, respondents identified 18 support initiatives but the top four areas were: enhanced R&D grant funding, higher SR&ED tax credits, early adoption of clean technologies by government and grants for demonstration projects.
The BC CleanTech CEO Alliance is a group of industry leaders from the province’s clean technology companies to accelerate the industry’s growth.