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Drummond Report underlines need for cost control, prosperous manufacturing sector

Published by Derek Lothian on February 15, 2012

The stern warning issued today by economist Don Drummond over the state of Ontario's finances highlights mounting concerns with government spending and reiterates the importance of a healthy, diversified manufacturing sector, according to Canadian Manufacturers & Exporters (CME).

The 543-page "Drummond Report" examines a litany of cost-control measures - particularly in healthcare and education, which account for roughly 70 per cent of the provincial budget - in a strategy to eliminate a projected $30 billion deficit by 2017. It also underscores the vital role that industry plays in shaping the standard of living for all Ontarians.

"Every one dollar invested in manufacturing generates more than $3 in total economic activity," explains Ian Howcroft, vice president, CME Ontario. "That's a positive return that creates jobs, fosters economic growth and generates tax revenue that funds other critical portfolios, such as infrastructure, social programs and innovation."

Although controlled public spending is central to driving down the debt, Howcroft notes that government may want to take a page out of business' playbook to meet fiscal targets.

"At the end of the day, cutbacks and cutbacks alone are not going to solve the overall problem," he says. "Embracing concepts like LEAN and process improvement must be done in tandem to increase efficiencies and get the most out of every dollar. It's time to be creative with our solutions, and protect the next generation of prosperity in Ontario."

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