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One year ago, the Canadian Manufacturing Coalition sent an open letter to the Prime Minister expressing the need for serious action by the government to do its part to create conditions that would ensure there is fuel for the economic engine driving our economy.

Today, we are once again putting pen to paper and asking the Harper government to take action to ensure that the industry which converts our country's natural resources and the knowledge and skills of Canadians into higher-value products and services has a vibrant future. The future prosperity of every Canadian is at stake.

Canada's manufacturing industries are at risk. We must respond to the globalization of markets, the rise of newly industrialized powerhouses like China, India, and Brazil, and shortages of skilled workers. We do so when our dollar is at par with the U.S. greenback (a 60-per-cent appreciation since 2002), which increases commodity and energy costs while demand diminishes in our major market south of the border.

How Canada meets these competitive challenges will have far-reaching effects on our national security and our ability to exercise sovereignty.

Manufacturing is still the largest single business sector in Canada. Two million Canadians are employed in the industry in skilled and high-paying jobs. Every $1 of manufacturing output in Canada creates more than $3 in economic activity.

Manufacturing is at the forefront of international competition - half of what we produce is exported into or through the United States. The industry is also the driver of innovation in Canada, accounting for three-quarters of all private-sector investment in research and development.

The onus is on each and every business to compete and win. But governments have a critical role to play by ensuring there is a business environment that enables Canadian industry to attract investment and adapt, so its stays competitive and grows in global markets.

Canada must boost productivity, become more efficient, introduce new and improved products and processes, manage supply chains more effectively, and invest in new technologies. We must innovate, provide customers with products and services that meet their needs, solve our own business problems, enter new markets, and meet the requirements of public regulation and shareholder expectations. We must take advantage of new business opportunities in domestic, North American, and international markets. And we must ensure that Canadians are equipped with the skills, experience, and expertise to achieve results at competitive costs.

The last budget was a start. The government introduced a two-year write-off for investments in manufacturing and processing machinery and equipment, as well as accelerated depreciation for investments in manufacturing facilities, computer equipment, and some energy technologies. There was a renewed commitment to more efficient regulations; the importance of innovation was acknowledged; and there was significant new investment in logistics and border infrastructure. These were all valuable for Canadian industry.

In tomorrow's Speech from the Throne, we hope the Prime Minister will include the Canadian Manufacturing Coalition's 10-point plan. The government must:

Allow companies to take advantage of the two-year depreciation for manufacturing and processing machinery and equipment for a period of at least five years as recommended to parliament.

Make Scientific Research & Experimental Development Tax Credits refundable and improve the consistency of SR&ED administration now and not await the results of the recently announced review.

Introduce an Employers' Training Tax Credit to encourage businesses to invest directly in upgrading the skills and capabilities of Canadian workers.

Take every opportunity to simplify regulations, build enabling regulatory frameworks, reduce the cost of regulatory compliance, eliminate duplication and inconsistencies, and end restrictions on trade and labour mobility across Canada.

Ensure that Canada's trading partners fulfill their obligations. Canada's trade rules must be effectively enforced and the cost burden of enforcement should not be borne by Canadian companies. We must have better access to the Canadian International Trade Tribunal in order to respond to unfair trading practices and CITT anti-dumping, countervail, and safeguard measures have to be better enforced as well.

Conclude multilateral, regional and bilateral trade and investment agreements that guarantee effective access to international markets for Canadian exporters through the elimination of both tariff and non-tariff regulatory barriers to Canadian exports and investment, and ensure fair resolution of trade and investment disputes.

Respond to the skills shortages by encouraging closer collaboration among industries, universities and colleges, speeding up entry procedures for foreign skilled workers, and helping Canadians access productive employment in labour markets across the country.

Expedite investments in security, and transportation infrastructure to ensure the efficient flow of goods to and from Canada the United States, and make Canada the preferred hub for trade between North America and the rest of the world.

Use government procurement to leverage Canadian business opportunities and encourage innovation in the same way every other industrialized country does.

Play a leadership role by making the investments and expediting the regulatory processes so that Canadians have access to reliable and cost competitive energy supplies now and in the future.

We also need to change Canada's global ranking as a nation with one of the highest tax burdens on business investment. It must be reduced if we are to attract and retain the business activity that creates high-paying jobs. The federal government must lead the way in reducing the combined tax rate on business income to 22 per cent within three years. The federal general corporate tax rate should be reduced to 15 per cent. Provincial governments must eliminate capital taxes and harmonize sales taxes with the GST.

Enhancing the business environment for manufacturers and every other industry in Canada is the means by which we will maintain our standard of living - all Canadians will benefit.

We need the government to act now to make sure a strong and competitive manufacturing base is an integral part of our economic future.

Jayson Myers is chairman of the Canadian Manufacturing Coalition and president of Canadian Manufacturers & Exporters.