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CTV News
2 days ago
- Business
- CTV News
How Canada can better attract tech talent as calls to build domestic industry grow
People check their phones as AMECA, an AI robot, looks on at the All In artificial intelligence conference, on Sept. 28, 2023 in Montreal. THE CANADIAN PRESS/Ryan Remiorz With a fresh wave of patriotic calls for Canada to scale its domestic tech sector, industry players say there are opportunities to better attract and retain homegrown talent and knock down barriers that are preventing companies from growing. Sheldon McCormick, CEO of Kitchener, Ont.-based tech hub Communitech, said he is seeing 'growing momentum' behind the idea that Canada needs to 'build, buy and own more of its own innovation' across areas like artificial intelligence and health tech. Executing on this, he said, would require protecting data and intellectual property as well as attracting the talent needed to 'anchor economic value here at home.' The challenges in attracting and retaining talent highlighted by those in the tech space span compensation, government support and the cost of living. Benjamin Bergen, president of the Council of Canadian Innovators, said there was a spike in U.S. tech talent coming north during Donald Trump's first term as U.S. president, but that doesn't appear to be materializing currently. 'I think part of the challenge is just some of the new realities around the economy. I think there has obviously not been the same amount of tremendous hiring that you've seen in past periods,' Bergen said. 'Donald Trump being in the White House is not a strategy for our tech sector. It can be slightly beneficial, but it's not any big mover in terms of being able to attract meaningful talent.' MaRS Discovery District CEO Grace Lee Reynolds is seeing a slightly different trend in her tech universe though. 'Anecdotally, it certainly feels like a lot more people are talking about it. You hear anecdotal stories of someone about to make that type of change,' she said regarding tech talent moving to Canada from the U.S. 'It'll be interesting then to be able to see that over a longer period of time. I think this is really critical.' Bergen said that realigning Canada's economic interests would allow the country to build and develop more successful tech firms that could, in turn, attract more talent. Specifically, he said government procurements could be a critical aspect. 'One of the reasons why Silicon Valley is Silicon Valley is because of all the procurement that the U.S. government initially did and continues to do with companies in the region,' Bergen said. Comparatively, Canada procures its own domestic solutions less, making it harder for companies to grow since they don't receive the same level of purchase orders from the government, he said. Elaine Kunda, the founder and general partner at Disruption Ventures, said government procurements may not be an all-encompassing solution. 'If you feel like it's not a growing economy with investors that are buying into the sector, government procurement is not going to solve our tech sector challenges. It's actually making it more government-dependent,' she said. Instead, she thinks the industry would significantly benefit from business tax credits that incentivize people to take more risks. Compared with Canadian tech firms, U.S. companies have a 'much easier' ability to raise capital and find purchasers for their product, Bergen said. Lee Reynolds also sees access to capital as a barrier to growth, calling it one of the classic challenges that Canada has. 'Capital, especially at that early stage, to be able to grow and scale your business. There's not quite enough here.' Given the current moment, Lee Reynolds said it's important to keep talent in the country as people see opportunities in Canada 'from a values perspective. 'Call it then working with government, or call it working as an ecosystem together, to unlock more early-stage capital funding for ventures to grow,' she said. As Canadian tech firms work toward scaling their businesses, Lucy Hargreaves, the CEO of tech-focused think tank Build Canada, says the challenge becomes attracting top talent from around the globe and preventing homegrown workers from leaving Canada. 'The first thing is to make sure that the people we have don't leave. It's great to bring in new talent to the country, but we have incredible talent in Canada,' she said. 'We graduate extremely highly talented and capable people from our universities every year, including programs that are world-renowned in the tech space at universities like Waterloo. So I think the first thing is, how do we get those people to stay?' Compensation is a significant issue for tech workers who might consider moving to or remaining in Canada, according to Hargreaves. 'Salaries are definitely a big part. If you look at salaries in the tech space and other industries right now, in Canada, they're not generally competitive. There may be some exceptions, but generally speaking, not competitive with salaries in U.S. dollars that are being offered in Silicon Valley,' she said. A 2023 study conducted by The Dais, a think tank at Toronto Metropolitan University, found U.S. tech workers earned an average salary of $122,604, while Canadian workers in the industry earned an average of $83,698. When adjusting for the exchange rate and cost of living, the study found U.S. tech workers earned about 46 per cent more in salary. 'The cost of living in Canada is not much cheaper,' Bergen said. 'And often what we'll hear from our member companies is that they are maybe looking to, let's say, hire or bring over an amazing CTO or CFO. But candidly, the cost of living is higher or at the same level as it is in other big jurisdictions.' Bergen said Canadian companies looking to attract U.S. talent might have to pay 'a lot more' to offset cost of living issues and a weaker dollar that has created a 'bigger and bigger gap.' Overall, he said some 'super talented individuals' may choose to work in Canada based on the nation's values, but he would like to see the government strengthen opportunities for domestic tech firms to be successful. This report by The Canadian Press was first published July 11, 2025. Daniel Johnson, The Canadian Press
Yahoo
2 days ago
- Business
- Yahoo
How Canada can better attract tech talent as calls to build domestic industry grow
With a fresh wave of patriotic calls for Canada to scale its domestic tech sector, industry players say there are opportunities to better attract and retain homegrown talent and knock down barriers that are preventing companies from growing. Sheldon McCormick, CEO of Kitchener, Ont.-based tech hub Communitech, said he is seeing 'growing momentum' behind the idea that Canada needs to 'build, buy and own more of its own innovation' across areas like artificial intelligence and health tech. Executing on this, he said, would require protecting data and intellectual property as well as attracting the talent needed to 'anchor economic value here at home.' The challenges in attracting and retaining talent highlighted by those in the tech space span compensation, government support and the cost of living. Benjamin Bergen, president of the Council of Canadian Innovators, said there was a spike in U.S. tech talent coming north during Donald Trump's first term as U.S. president, but that doesn't appear to be materializing currently. 'I think part of the challenge is just some of the new realities around the economy. I think there has obviously not been the same amount of tremendous hiring that you've seen in past periods,' Bergen said. 'Donald Trump being in the White House is not a strategy for our tech sector. It can be slightly beneficial, but it's not any big mover in terms of being able to attract meaningful talent.' MaRS Discovery District CEO Grace Lee Reynolds is seeing a slightly different trend in her tech universe though. 'Anecdotally, it certainly feels like a lot more people are talking about it. You hear anecdotal stories of someone about to make that type of change,' she said regarding tech talent moving to Canada from the U.S. 'It'll be interesting then to be able to see that over a longer period of time. I think this is really critical.' Bergen said that realigning Canada's economic interests would allow the country to build and develop more successful tech firms that could, in turn, attract more talent. Specifically, he said government procurements could be a critical aspect. 'One of the reasons why Silicon Valley is Silicon Valley is because of all the procurement that the U.S. government initially did and continues to do with companies in the region,' Bergen said. Comparatively, Canada procures its own domestic solutions less, making it harder for companies to grow since they don't receive the same level of purchase orders from the government, he said. Elaine Kunda, the founder and general partner at Disruption Ventures, said government procurements may not be an all-encompassing solution. 'If you feel like it's not a growing economy with investors that are buying into the sector, government procurement is not going to solve our tech sector challenges. It's actually making it more government-dependent,' she said. Instead, she thinks the industry would significantly benefit from business tax credits that incentivize people to take more risks. Compared with Canadian tech firms, U.S. companies have a 'much easier' ability to raise capital and find purchasers for their product, Bergen said. Lee Reynolds also sees access to capital as a barrier to growth, calling it one of the classic challenges that Canada has. "Capital, especially at that early stage, to be able to grow and scale your business. There's not quite enough here." Given the current moment, Lee Reynolds said it's important to keep talent in the country as people see opportunities in Canada 'from a values perspective. 'Call it then working with government, or call it working as an ecosystem together, to unlock more early-stage capital funding for ventures to grow,' she said. As Canadian tech firms work toward scaling their businesses, Lucy Hargreaves, the CEO of tech-focused think tank Build Canada, says the challenge becomes attracting top talent from around the globe and preventing homegrown workers from leaving Canada. 'The first thing is to make sure that the people we have don't leave. It's great to bring in new talent to the country, but we have incredible talent in Canada,' she said. 'We graduate extremely highly talented and capable people from our universities every year, including programs that are world-renowned in the tech space at universities like Waterloo. So I think the first thing is, how do we get those people to stay?' Compensation is a significant issue for tech workers who might consider moving to or remaining in Canada, according to Hargreaves. 'Salaries are definitely a big part. If you look at salaries in the tech space and other industries right now, in Canada, they're not generally competitive. There may be some exceptions, but generally speaking, not competitive with salaries in U.S. dollars that are being offered in Silicon Valley,' she said. A 2023 study conducted by The Dais, a think tank at Toronto Metropolitan University, found U.S. tech workers earned an average salary of $122,604, while Canadian workers in the industry earned an average of $83,698. When adjusting for the exchange rate and cost of living, the study found U.S. tech workers earned about 46 per cent more in salary. 'The cost of living in Canada is not much cheaper," Bergen said. "And often what we'll hear from our member companies is that they are maybe looking to, let's say, hire or bring over an amazing CTO or CFO. But candidly, the cost of living is higher or at the same level as it is in other big jurisdictions.' Bergen said Canadian companies looking to attract U.S. talent might have to pay 'a lot more' to offset cost of living issues and a weaker dollar that has created a 'bigger and bigger gap.' Overall, he said some 'super talented individuals' may choose to work in Canada based on the nation's values, but he would like to see the government strengthen opportunities for domestic tech firms to be successful. This report by The Canadian Press was first published July 11, 2025. Daniel Johnson, The Canadian Press Sign in to access your portfolio
CTV News
04-07-2025
- Business
- CTV News
Downtown office vacancy hits 30 per cent in Waterloo Region
Downtown Kitchener is seen from City Hall on Thursday, March 23, 2017. Downtown office space is not hard to find in Waterloo Region. A new study from CBRE Canada found the national average sat at 20 percent. On the local level, London reported the highest rate of office vacancy at 31.4 per cent, followed by Calgary at 30.7 per cent, and Waterloo Region rounded out the top three at 30 per cent. The report said the national average held firm for the last year and a half, indicating the vacancy rate has plateaued. However, the authors suggest economic uncertainty could delay a bounce back. While the report did not break down the vacancy rate for each city within Waterloo Region, officials are aware of the problem. 'What the City of Kitchener has done is invested in some of our startups,' said Kitchener Councillor Stephanie Stretch. 'Through Communitech and through the University of Waterloo's incubator, [the city is] seeing a large number of startups, which should translate into more office space being used downtown.' Stretch said making downtown Kitchener an attractive place to work is a priority. 'We're working on a lot of some of those really basic things like safety and security, so that we're able to make our downtown core great,' she said. According to the CBRE report, office space construction has stalled at a 20-year low.
CTV News
03-07-2025
- Business
- CTV News
Ontario looks at boosting rules around data centre electricity usage
The provincial government is prioritizing electricity access for some data centres. CTV's Karis Mapp finds out why. Ontario could soon become more selective about which data centres are allowed to connect to the province's energy grid. A data centre is a facility that includes the computing and storage infrastructure required to run a business. That can include servers, storage systems and networking equipment. Some data centres have high electricity needs to run not just the computing systems, but also the cooling mechanisms required to keep those systems running. In an announcement on Wednesday, the province said it is planning to introduce stricter rules and prioritize some data centres within the province. 'That means prioritizing data centres that drive real value to the province: job creation, innovation, economic growth, domestic data security,' said Stephen Lecce, the Minister of Energy and Mines, while visiting Kitchener's Communitech. Data centres that are given priority will see their applications to connect to the power grid accelerated. Meanwhile, the province is also trying to pass a new act, known as the Protect Ontario by Securing Affordable Energy for Generations Act, that would require some centres to gain approval before connecting to the grid. Currently, utilities must connect all data centres, regardless of their economic impact or energy consumption needs. 'That's not really responsible planning,' Lecce said. 'That's not about protecting the province, especially at a time when others want to see us fail.' One of the largest drivers of the increasing energy demand in the province can be attributed to artificial intelligence (AI) and the large data centres required to operate the technology. 'I think the Waterloo region has lots of reasons to be optimistic about the next era of tech success,' Sheldon McCormick, CEO of Communitech, said. 'Largely, it will be built on artificial intelligence. The government is taking it seriously to protect our digital infrastructure, which is going to be critical to power that next era of AI.' Provincial officials also said today's announcement will help protect Canadians' personal data by ensuring it is hosted in Canada, instead of in other places with weaker privacy legislation.
CTV News
17-06-2025
- Business
- CTV News
Waterloo Region companies hoping to get a share of defence spending boost
The Prime Minster has announced a big boost in defence spending. And as CTV's Karis Mapp reports, it could trickle down to tech companies. The Prime Minster has announced a big boost in defence spending. And as CTV's Karis Mapp reports, it could trickle down to tech companies. Canada is poised to boost defence spending by billions of dollars, and companies in Waterloo Region are hoping to see some of that money trickle into the area. Prime Minister Mark Carney announced plans to meet NATO's spending target this fiscal year, a goal the country has never met despite a promise in 2014 to do so. The federal government said it will need to spend an additional $9.3 billion beyond what was already laid out in pervious spending plans to meet the goal. Some of that money will be used on salary increases for Canadian Armed Forces members, but tech companies are also hoping to see a share. 'There's both a civilian application as well as a military application,' Matthew Klassen, vice president of external relations with Communitech, said. Communitech works with founders in the technology industry to help them make their ideas a reality. 'Sometimes companies will start out working in fleet logistics or in health care or HR, and it ends up that their application can be scaled and used by the military in theatres around the world,' Klassen said. Communitech was chosen as one of two Canadian accelerators that would be joining NATO's DIANA network in 2024. 'We not yet activated as an accelerator, but we're part of this network and it allows us to basically connect our start ups and scale ups into London, into Estonia, into Germany, into the States,' Klassen explained. Klassen believes local companies could have an important role to play in bolstering Canada's defense capabilities. 'We also think it would be really important that [the funding] goes to local innovators who are already working with large multinational companies, with governments and allies across the world to solve some of their biggest challenges,' he said. A company from Kitchener has already shown how companies from the Waterloo Region can help when it comes to international threats. SkyWatch gained worldwide recognition leading up to the invasion of Ukraine in 2022. 'There was some rumour of tanks gathering near the western Russian border,' James Slifierz, CEO of SkyWatch, said. 'The volume of tanks got so big that we were able to compare the two previous military exercises that the Russian government had done. Our partners were able to establish that this was very likely to be a real threat to a real invasion,' he said. Slifierz said the investment in defence spending is crucial to building Canada's independence from the United States. 'I think Canada's recognizing that we've been over reliant on our neighbours to the south for too long and we've probably underinvested and under procured in our own infrastructure, in our own national security, in our own military.' More details about how the funding will be used are expected to be revealed as the G7 Leader's Summit continues in Alberta.
