I've been thinking a lot about customers this week and not the kind you find in a store. I’m talking about the kind who buy Canadian steel, oil, lumber, and all the other things we produce.
There's been a lot of talk lately about strengthening Canadian industries, building our economy, and making ourselves less dependent on the United States. I'm all for it.
But here's something I think we sometimes overlook. It's not only about what we produce, but also about who buys it, how much they're willing to pay, and whether we can actually get our products to them.
Two stories caught my attention this week that help explain why.
WHAT HAD MY ATTENTION
Canadian Steel Needs Customers. We’ve Got Some!
Last week, the federal and Ontario governments announced an $8.7 billion package to help Canadian industries deal with American tariffs, including more than $5 billion in support for steel. Good news for an industry facing enormous pressure.
There's something else I think we should be talking about: The customers!
We've got some pretty big potential customers right here in Canada, all of which need lots and lots of steel.
A typical large modern nuclear power plant alone can require roughly 20,000 tonnes of rebar, depending on its design. And that's just one example.
THE SMART ENOUGH QUESTION:
If we want to support Canadian steel, shouldn't we also be making sure there are Canadian projects ready to buy it?
THE SMART ENOUGH TAKE:
I love the idea of being our own best customer. But that only works if the customers actually show up.
Helping steel companies modernize and compete is important. So is making sure we can get major projects built. Because when we build a pipeline, a mine, or a power plant, we're not just creating jobs on that project. We're creating business for other Canadian companies.
This is a connection I think deserves a lot more attention.
WORTH YOUR WHILE
The announcement includes support for Canadian steel production and measures to encourage more Canadian steel purchases. Worth a look at what governments are proposing, and what still needs to happen.
READ ABOUT THE NEW CANADA-ONTARIO STEEL SUPPORT PACKAGE
What If Canada Sold The Same Oil But Made Billions More?
Last week, I talked about a proposal from Strathcona Resources to move Canadian oil by rail to the West Coast, where it could be shipped to overseas customers.
This process is complicated. There are multiple factors to consider like costs and regulatory hurdles to address, and important conversations to be had with Indigenous communities. But there's a reason companies keep looking for ways to reach more customers.
And this week's oil prices are a pretty good reminder.
Canadian heavy oil is currently selling at a much bigger discount to American oil than we're used to seeing. Some discount is normal. Our heavy oil is different from lighter American oil, and transportation and refining costs matter.
When the discount gets unusually wide, it means we're getting paid less for a resource we're already producing.
One of the challenges we are experiencing is that most of our oil exports still go to the United States. When our options for customers are limited, so is our bargaining power.
We've seen what happens when that changes. After the expanded Trans Mountain Pipeline opened in 2024, Canadian oil gained better access to overseas markets, and the price discount narrowed.
THE SMART ENOUGH QUESTION:
What could Canadians gain if we had more customers competing to buy our oil?
THE SMART ENOUGH TAKE:
We often focus on how much oil Canada produces, and that is a great thing to think about. But how much we get paid for it matters, too.
A better price can mean more revenue for producers, more royalties and taxes for governments, and more value from resources we're already developing. And remember, those government revenues help pay for things Canadians depend on.
We don't necessarily need to produce more oil to earn more from it. Sometimes we need more places to sell what we're already producing.
WORTH YOUR WHILE
If you missed last week's video about Strathcona's proposal to move oil by rail to the West Coast. It's an interesting example of what finding new customers might actually involve.
WHAT I’M WATCHING
Canada-U.S. Trade Talks
There are new reports that Canada and the United States are discussing possible relief from tariffs on Canadian steel and automobiles. Nothing is settled, and there's still a lot of uncertainty.
After a week of talking about the importance of customers, this is one relationship I'll be watching closely.
Finding new customers and building more here at home matters, but so does maintaining access to the biggest customer we already have.
I'll be interested to see what happens next.
SMART ENOUGH IN 90 SECONDS
Why Don’t We Just Build More Mines
We keep hearing that the world needs more copper and other critical minerals. So why don't we just build more mines?
That's what I asked Kira Cooper, a Canadian chemical engineer working on a major copper mining project in the United States.
Turns out, finding minerals in the ground is only the beginning. Before anyone builds a mine, they need to figure out whether there's enough valuable material to be worth your while. Then considerations about if it can be extracted economically and whether the project can secure the permits and financing it needs to be thoroughly thought out. All those steps before construction even begins!
I shared a short clip from our conversation yesterday, but there's a whole lot more in the full episode. We talked about what it's really like to work in mining, some of the misconceptions people have, and opportunities for young people considering careers in the industry.
I really enjoyed this conversation, and I think you will too.
ONE LYNNIE THOUGHT
One of the things I loved about teaching science was introducing students to something they didn't know existed. Not just scientific ideas, but the careers and opportunities connected to them.
I was reminded of that during my conversation with Kira. I wonder how many young Canadians even know that's something they could do?
We talk a lot about encouraging young people to pursue careers in engineering, science, and the skilled trades. But how can someone consider an opportunity they don't even know exists?
And I think that applies to the rest of us, too. There are fascinating people doing remarkable things in Canadian industries that most of us will never see firsthand.
The more conversations I have, the more I realize how much I still don't know. Which, of course, just makes me want to ask more questions!
Thanks for reading and stay curious!
Lynn