Greater Sudbury Northern Life Reporter Bill Bradley
Greater Sudbury’s mining supply and service cluster will fare better than most in the economic downturn.
Participants at the annual general meeting of the Sudbury Area Mining Supply and Service Association (SAMSSA) Wednesday at the Howard Johnson Hotel were concerned, but not depressed, by recent economic slowdowns in their sector.
Dave Robinson, economics professor at Laurentian University, said mining is still doing well compared to the disastrous situation with the automotive sector in southern Ontario.
“Our mining cluster is going to have an easier time than just about any other industrial sector in Canada,” said Robinson.
He said mining projects are very long-term.
“A lot of the companies here today are supplying for newly developing projects. They take eight to 10 years to get going. When the prime minister says this is going to be a long recession, he is thinking in terms of a year and a half. People cannot shut down those development projects for a year and a half and still be on track. The big mining companies are looking at the long-term. There is more security than people realize.”
The recession is actually an opportunity for many to find work, said Robinson.
“The (mining) industry has been screaming for skilled manpower. They will be able to pick up the skills from the auto sector areas. They will also look more attractive to graduates from universities and colleges,” he said.
“This is the rest the mining sector needs to push the technology and the skill level up.”
Robinson said governments will notice the strength of the mining sector and the viability of the local mining cluster and be supportive. “They will need champions to brag about,” he noted.
In the meantime, how are the companies surviving?
“There are always peaks and valleys in any business. The sun will shine for us, too, once again,” said Don Rastall, chief executive officer of Rastall Mine Supply Nut and Bolt and Tool Corp.
“The key for survival is to put money aside when times are good for when times are bad,” he said.
Robert Lipic, president of Mining Technologies International in Lively, said being innovative in technical terms is key to beating the economic blues.
“In all your products, never compromise quality. Control your costs, but be innovative,” said Lipic.
Jeff Fuller, president of SAMSSA, said innovation to his company meant thinking outside the box.
“My company has been making rubber products for mining companies. Not all the mining news is bad. There are opportunities with gold mining and uranium. We also are looking at potash companies and areas outside of mining, such as water treatment plants, for our products. There are good opportunities out there,” he said.
Dave Rector, whose industrial service company, Rector Machine Works Ltd., has been in business for 75 years in Sault Ste. Marie, said diversification is the key. He drove on snowy roads to be part of the SAMSSA meeting.
“When steel dropped in the 1980s, we diversified into forestry. Now I am here to look into getting into the export market with the help of SAMSSA. At times, our workforce has dropped from 40 employees to three, including myself. But we expect to be a family business for another 75 years,” said Rector.
For more information go to www.samssa.ca.
