Forty years ago the Province of
Ontario was considered a
world leader in water and
wastewater technology. In the
1950s and 1960s, the Ontario Water
Resources Commission (OWRC),
under the able stewardship of Chief
Engineer Dr. Albert Berry, achieved
international recognition as an innovator
and a class leader in water technology.
The OWRC practiced what Dr.
Berry preached and grew to become
one of the leading environmental agencies
in the world.
In those days OWRC invested significantly
in research and development.
Proposals were solicited from
both the private and public sectors and
it was common for consulting firms to
team with universities and compete for
the R&D money. Successful scientists
were invited to present their research at
the annual Ministry of Environment
(MOE) R&D conference. The OWRC
was disestablished in 1972 and its
functions were rolled into the new
MOE.
Unfortunately today’s politicians
fail to understand the importance of
innovation and the resulting benefit to
our standard of living. MOE abandoned
R&D support and now water
treatment tragedies such as Walkerton
and Kashechewan make headline
news.
Many of our international competitors
have an advantage as their countries
recognize the strategic importance
of R&D. For example, the
STOWA program in the Netherlands
finances water research projects by
collecting a small surcharge levied on
commercial and residential water bills.
Public and private parties are invited
to submit unsolicited proposals for
financing and Canadian companies
lacking domestic R&D support turn to
STOWA. It is likely that they would have received support from MOE in
the good old days.
Canadian consulting engineering
companies are successful internationally.
World Bank reports consistently
show that Canadian engineering firms
win their share of international projects.
Our international competitive
edge may be attributed to an under-valued
Canadian dollar and our neutral
geopolitical reputation. Will we win
our share of future international sanitation
assignments in China where only
15% of the population receives wastewater
treatment? What about Mexico
where only 30% of the population
receives treatment? Do we have the
water technologies to address major
water shortages forecasted in the US
southwest?
Winning this water business will
require Canadian firms to be more
competitive. We need to offer technology
that is made in Canada and that is
the best in class. It is widely accepted
that this competitive edge is the outcome
of strategic investment in
research and development.
Very few Canadian consulting
engineering firms have purchased US
companies. Why have many large
American firms acquired some of
Canada’s oldest, most respected engineering
practices? The Canadian consulting
engineering industry is price
driven, the opposite of the US quality
based selection process. This difference
creates higher value in US companies
and Canadian engineering
firms become acquisition candidates.
We need people like Dr. Berry to lead
the drive to quality based selection in
Canada.
Water industry consolidation continues
unabated. Made in Canada is
becoming rare. Water industry ownership
is becoming global as large conglomerates
gobble up the independents.
General Electric and Siemens,
two of the largest companies in the
world, have become major water
industry investors and Home Depot
has recently entered the water business.
What does this mean? Canadian
water companies will continue to be
acquired by large international firms
unless Canada re-establishes its commitment
to innovation. It is not too late
for Canada to make a renewed commitment
to water technology through
research and development.
Canada is blessed with an abundance
of fresh water. Although we may
not deserve our green reputation, we
can use our reputation to advantage by
unabashedly branding “made in
Canada”. However, more than anything
else, we require a new commitment
to water research in Canada. Is
MOE up to the challenge?
