Developing a Community-Based Response to Economic Restructuring - The Challenge of Global Competition

Abstract

Responding to the demand for quality products at an affordable price, multinationals are organizing production according to an international division of labour. Simple products and parts are manufactured where wages are low while complex components are manufactured by skilled workers utilizing complex production systems where wages are high. To increase competitiveness, successful Canadian producers will help their workers become more productive and increase the quality of their products. Economic globalization is changing the ground rules for communities in Ontario. The communities find that the service sector must restructure. It is a major challenge for EDP to retain the existing industrial base. Communities must apply innovative approaches to keep key industries. EDP must identify opportunities, build on strengths, define and target the market and reassess strategy at regular intervals to ensure its relevance. Developing a skilled workforce is critical to diversifying or realigning a community's economy. It is becoming less important for workers to acquire specific skills than to possess the ability to study and think independently, to learn quickly, to be flexible, and to work well with others. Economic development departments must convince the industry that responsible environmental decision-making is one of the keys to competitive advantage. Commitment to the environment is a key factor in attracting capital. Communities must build more on their internal resources, the skills and determination of their residents. There are no quick fixes to the challenges posed by restructuring. Solutions involve innovative and sometimes risky ventures which take time, energy, and commitment in order to succeed.