Released on: July 12, 2008, 12:30 pm

Press Release Author: The Knowledge Management Group Inc.

Industry: Management

Press Release Summary: Mississauga, Ontario, July 14, 2008 - Data from Statistics
Canada shows a steady decline in productivity versus the US since 1985. Between
2000-2006, a large productivity growth difference emerged favoring the US. Today
Canadian productivity is at an all time low.

Press Release Body: John Tylak P.Eng, a former manager with a Canadian manufacturing
company said, \"We never thought the Canadian dollar would be at par with the United
States. By the time it reached 85 cents, we were no longer productive. Poor
productivity cost us $1 million for every cent the Canadian dollar increased.\"

Between 1996-2006 Canadian labor productivity growth lagged the US by 56%, the
result of a 138% increase in hours worked versus the US. Given the increase in hours
worked, Canada only showed a 0.2% increase in GDP over the US. Compared to Canada,
the increase in US productivity was driven by a 150% increase in multi-factor
productivity growth; a measure of technological progress and organizational change.
The decline in Canadian multi-factor productivity growth is explained by a low
Canadian dollar that favored the use of labor instead of investment in technological
progress and organizational change.

Given the relative equivalence in today's currency, Canadian manufacturers cannot
use discounted labor as a means to offset poor productivity. This is evidenced in
productivity statistics between 2000-2006. This period saw the Canadian dollar begin
to rise while manufacturers realized a 200% decline in output per hour worked
against the US, even though the growth in capital expenditures was the same in both
countries. During this period, US technological progress and organizational change
increased by 1800% fueled by a 33% increase in US labor composition compared to
Canada.

Canadian technological progress and organizational change has fallen sharply
compared to the US and led to dramatic declines in productivity. A continued decline
will impede competition with the US, other countries, and may affect Canada\'s long
term standard of living. To improve productivity, the Canada Revenue Agency recently
announced raised federal tax incentives to stimulate technological advancement in an
effort to increase multi-factor productivity growth.

The Knowledge Management Group is a leading provider of research and business
productivity solutions. To learn more about federal tax incentives and our
productivity solutions call 888.964.7729 or go to www.tkmg.org.


Web Site: http://www.tkmg.org

Contact Details: Andrew Milivojevich, Principal
The Knowledge Management Group Inc.
A12-1250 Eglinton Ave., West
Mississauga, Ontario, Canada L5V1N3
888.964.7729
andrew@tkmg.org
www.tkmg.org