Written for policy makers, investors, procurers, and company managers, the Report first offers frameworks and analysis with which to understand a complex industry. It provides key industry growth figures for the first time across an industry dominated by privately-held enterprises, enabling important benchmarking exercises. It goes on to detail the commercialization investments which have been required by the highest growth companies within the clean technology sector.
The Report is based on extensive quantitative and qualitative research undertaken with 450 companies in the fall of 2009 and the winter of 2010; 168 companies participated in primary research, with another 15 companies participating in qualitative case studies.
The Strengths- The Canadian clean technology industry grew at a compound annual growth rate of 47% during the worst recession in recent history. Highest growth companies achieved growth of 170% during the recession. Planned compound annual growth rate for 2010 to 2012 is 117%. Highest growth rates for 2010 to 2012 are expected in the following sectors: Power Generation, Energy Efficiency, Energy Infrastructure, and Industrial Process Efficiency.
- The industry will shift from being primarily a domestic market, with 58% of sales domestically in 2009 to being primarily an export market in 2010 (52% of sales).
- 96% of companies intend to compete in global markets with 40% intending to do so through re-investment of profits only. The remaining 60% plan on some form of financing.
- High-growth companies have three times more Vice Presidents from commercialization disciplines like Marketing and Communications and Channel Management than do slower- growth companies. When choosing between investing in building more technical product features and investing in product commercialization, high-growth companies invest two to three times more on commercialization than do slow-growth companies.
- 96% of clean technology companies in Canada require between $1M and $30M in capital making them efficient sources of job creation.
The Challenges
- Canada ranks third after US and Europe as an early adopter market for clean technology overall.
- Said another way, Canadian clean technology buyers prefer to buy clean technology from large systems integrators rather than from Canadian technology companies.
- For a country that is one of the largest exporters of electrical power in the world, there is a very small number of Energy Infrastructure (i.e., smart grid) companies.
- 86% of Canadian clean technology companies have not yet broken through the $5M revenue mark.
- High-growing companies are taking 10 years to get to the $10M revenue mark. Slow-growing companies often get sold before they can become globally-recognized companies. High-growth companies aim for $100M in revenues within 10 years.
The Report is an initiative of the Russell Mitchell Group, in collaboration with the title sponsor Sustainable Development Technology Canada (SDTC) and the Ontario Centre for Environmental Technology Advancement (OCETA). This Report was conducted in very close collaboration with each of its sponsors, partners, and supporters.
