International Business Environments and Operations 16th Global Edition test b...
Advisory Forum 2012
1. The Economic Landscape in the
Greater Fredericton Region
Enterprise Fredericton Community Advisory Forum
June 26, 2012
2.
3.
4. Fredericton was identified as the “One of the
Top 2 Most Cost-Competitive Places to
Do Business in North America”
Key Cost Factors:
- Labour Costs
- Facility Costs
- Transportation Costs
- Utility Costs
- Taxes
Co-sponsored by the City of Fredericton and Enterprise Fredericton
5. Enterprise Fredericton is…
Enterprise Fredericton (EF) has been a leader in the community for over 20 years
focusing on a sustainable economic development agenda. Enterprise Fredericton
focused on strengthening the Greater Fredericton Region by supporting business
growth initiatives, training and skills development, community capacity building
and population growth initiatives.
10 full-time; 3 part-time staff
Hosted 65 local events – 2,482 business people attended
721 business counseling sessions - 300 business opportunities identified
Youth Entrepreneurship Development Initiative programs engaged 1,688 potential entrepreneurs
FRYPE hosted 12 events with a growing group of 500+ members
129 Government Funding Program projects, investing $ 31,753,903
KITF Golf participants donated $8,100 the Oromocto Foodbank
581 new landed immigrants in 2011 (11 year total of 4,459)
6. Population Growth
Business Competitiveness Strategic Partnership
Community Based
Initiatives Model
Advisory Board
Business Counseling Investment Client Site Visit Workforce & Skills
Business Skills “Tiger Teams” Development Strategy
Development
InvestFredericton.com Retention Strategy
Youth Entrepreneurship
Targeted Investment Repatriation Strategy
Commercialization
Acceleration Strategy
Immigration Strategy
Priority Sector
Competitiveness/
Productivity
Export Development
Innovative Culture
* EF board is currently reviewing the strategy (3 pillars)
11. $90,000 Canada
$80,000 Fredericton
$70,000 New Brunswick
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$-
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: FT Markets Survey
In 2012, there has been a gain of +1% compared to the
national average making it only 2% below.
12. $35,000 Canada
Fredericton
$30,000
New Brunswick
$25,000
$20,000
$15,000
$10,000
$5,000
$-
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: FT Markets Survey
In 2012, there has been a gain of +1% compared to the
national average making it only 2% below.
13. Residential and Commercial Construction Numbers ($ Millions)
$200
$180
$160
$140 $115.6
$120
$100
$80
$60
$40
$20
$-
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
11 Year Total = $1.252 Billion in New Development Source: City of Fredericton
14. 600
581
563
544
486 493
500
Enterprise Fredericton
initiated the PNP 409
400 In-trust account
312
300 263
248
206 195
200
159
100
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Citizenship and Immigration Canada
11 Year Total = 4,459 New Permanent Landed Immigrants in GFR
15. 1000
900
800
700 661 662
626 612 613
595 589
600 552 567 552
531 522
500
400
300
200
100
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Royal Gazette 2000-2011
11 Year Total = 7,082 new net businesses created
16. Total Tax Base in the GFR ($Millions)
6000 $5,644
Fredericton
Oromocto
5000
New Maryland
4000
3000
2000
$947
1000
$331
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: GNB
2011 Year Total = $6.922 Billion Tax Base in the GFR
17. Our Knowledge Park
Knowledge Park – Future Total Annual Impact (Buildings 1 – 5)
Direct Indirect Total (NB)
Jobs (FTE) 1,274 326 1,600
Wages & Salaries ($Millions) $71.3 $9.5 $80.8
Output ($M) $106.4 $30.8 $137.2
Provincial Fiscal Impact ($M) $25.0
Source: InPro, Stats Canada
Enterprise Fredericton is the sole shareholder of the Knowledge Park Inc.
In 2011, the construction and occupancy of the 2 new buildings had the
designation as business story of the year in the Daily Gleaner
18. Population Growth Strategy
Components that Enterprise Fredericton is Engaged in…
Multicultural awareness and education
Immigration welcoming and orientation
Immigrant settlement and integration
Business / employment resources
Stakeholder-partner engagement
19. Business Retention & Expansion (BR&E) Strategy
One-on-one business counseling session
Encouraging the entrepreneurial spirit with youth and adults
SEED Loan program for start-up businesses
Business education and training
Provide assistance with companies looking to relocate, expand or close
Client outreach initiatives
Coordination and collaboration with stakeholders
20. Investment Attraction Strategy
Industry focused strategy – Defence Industries
Targeted sectors – ICT, Defence & Aerospace and Bio Sciences
Available commercial real estate site promotion
Supporting networks & organizations (NBADA, TTNB, etc.)
Assisting with investment requests (site location & planning)
2012 KPMG Competitive Alternatives study
Some of our Community’s successes…
21.
22. Enterprise Fredericton Hosted Events
KIRA Awards
420 attended
Immigration
FRYPE
Events/Support
BIMP Training 500+ Members
Youth
Business Basics
Entrepreneurship
Reaching out to 1,688 youth 75 participants
Business Buzz Cybersocial
Avg. 55 per session
Building on leadership
KITF Golf
Contributed $8,100
23. Looking Forward…
Business Retention and Expansion
- Entrepreneurial Awareness Skills Development
(schools, universities/colleges, existing entrepreneurs, etc.)
- Entrepreneurship Celebration
- Business Pulse - BR&E business outreach site visits
- Productivity and Competitiveness Initiatives
- Innovation Support: Knowledge Park Inc., Business Accelerator Centre
- Commercialization
- Export & Trade
Population Growth & Workforce Development
- Youth Engagement
- University & College Enrolments
- Retention, Repatriation, Immigration
- Immigration Coordinator Position
Investment Attraction
- Community & Business Engagement and Awareness
- Facilitate and Align Resources with Identified Opportunities
- Business Directory, Capabilities & Company Profiles
* The go forward plans are subject to refinement/revision as a result of ACOA’s funding decisions
24. 2012-13 Enterprise Fredericton Board Initiatives
New Vision & Direction for the Greater
Fredericton Region
New Economic Development Model
25. Your Enterprise Fredericton Board of Directors
Allison Kevin Kilbride Mike Oliver
McCarthy Therma-Ray Inc.
Atlantic Hydrogen
Stewart McKelvey
Chair
Heather-Anne Bob Skillen Alex Scholten
MacLean University of New Canadian Convenience
Radian6 Brunswick Stores Association
Vice Chair
John Argall Annette Trevor Cookson
BioAtlantech Accreon
Comeau
Secretary/Treasurer LearnSphere
Susanne Alexander Al Carson Dan Keenan
Zone 3, Horizon Health
Goose Lane Editions Ambir Solutions
Network
Past Chair
Ian Baird Paul Leger
MITACS Inc, Partners Global
27. We would like your input…
What do you see as opportunities for economic growth in the
Greater Fredericton Region?
What do you see as challenges to economic growth in the Greater
Fredericton Region?
Please offer any advice or suggestions that would make our
community an even better place for retaining and attracting
business.
Editor's Notes
The Community Growth Strategy was developed following a detailed data analysis and an extensive broad-based consultation process involving key representatives from all areas of the community. Moreover, the vital input of a significant number of citizens, business leaders and political leaders within the Greater Fredericton Region (GFR) helped to craft our goals.The purpose of the Community Growth Strategy is to champion sustainable economic development in the Greater Fredericton Region. The vision is to grow the Region into the most dynamic and growing community of innovation and knowledge in Canada.The Strategy identifies priority sectors for economic growth and the growth pillars are designed to achieve the defined goals. In order to achieve the goals set out in the Community Growth Strategy, three critical growth pillars have been identified as the fundamental building blocks from which it will evolve.Pillar 1: The Business Retention and Expansion (BR&E) initiative will engage the business community and its leaders in the pursuit of sustainable business development for career and wealth creation.Pillar 2: The Investment Attraction initiative creates community awareness regarding what it takes to compete and win on the international business stage. The goal is to identify and facilitate new investment opportunities in our communities.Pillar 3: The Population Growth initiative will create diversity in our communities, fill identified employee skill gaps and provide direct entrepreneurial investments in the region.
As we can see, the Greater Fredericton Region is growing regarding the active population able to work. This can be attributed to the new people entering the job market, new families moving to the region and immigration. These factors help to increase the talent pool, however, we do need to have equal growth regarding employment to keep many of these potential workers in the region. The Greater Fredericton Region also has a very active postsecondary population that is on the rise thanks to the new NBCC community college and the expansion of many other institutes. Most of these postsecondary students are not necessarily in the workforce full-time, which causes a reverse in trends when we talk about labour force in the Region. The Greater Fredericton Region has the 4th highest university-educated population in the country. This leads to a positive story for investment attraction, but also makes our community more vulnerable to lose of talent to bigger city centres. Much like many parts of Canada and North America, people have become much more mobile to accommodate workforce needs. It is not uncommon for a job seeker to move large distances to acquire a position.
These numbers can be attributed to many factors in our region, such as:- The end of the construction boom, created by the federal stimulus package that ended in 2010 Retiring baby-boomer population from the workforce, with no opportunity to backfill Late in the recession, late out of the recession Significant retail and wholesale trade cutbacks in the region (Zellers, Smitty’s, Jack and Andy’s, New Maryland Esso, El Burrito Loco, Racines, etc.) - Large portion of the labour force are civil servants (Municipal, provincial, or federal) who are experiencing cutbacks NB and the Fredericton Region has an aging population- Median age in NB in 2011 =43- Median age in Fredericton in 2011 = 38.7
These numbers are directly related to the lowered Active Labour Force stats displayed in the last slide. It is important to remember that these statistics come from Statistics Canada by way of a random sampling survey of the regions working population, which also has an error factor. It is complicated to pin-point the exact area where job loses occurred, however, we do know that that are primarily affect in the retail & warehouse trade sector for the past year. This is an alarming trend which needs to be better understood and addressed.
In last years report, Fredericton topped the chart at 11.3%, but has dropped significantly in the past year. This can be attributed to the onset of a late recession in the Greater Fredericton Region.
The news is not all bad, Greater Fredericton is narrowing the gap for the national average of the average household income by a percentage point projected for 2012. Higher paying jobs, an increase in minimum wage and a more competitive international market are all main factors of growth for these indicators. We can see that the trends is on a constant upward path, but it is important to notice that since 2003 the gap has widened between Fredericton and the national average. The path, however, is positive over the last 4 years. New Brunswick on average is seeing a much less progressive increase leading to a more troubling future.
Similar to the previous slide, the average per capita income is also on the rise and narrowing the gap. Increases in Fredericton’s per capita earnings has been the most significant over the past year. If this trend continues, we should see Fredericton passing the national average in 2 years, similar to 2002 and 2003.
We can see a direct coloration with the end of the construction stimulus package and a decrease in construction in 2011, however, the City of Fredericton still managed to stay above the $100 million investment threshold making it the 4th consecutive year in a row. This milestone is quite significant in terms of growth and prosperity for the city and it’s residents. The tremendous efforts of the Greater Fredericton municipalities have enabled direct foreign investments to truly see the pride we have for our communities. We are very fortunate to have such a proactive and forward thinking group leading the charge. Some highlights of 2011 include: - 2 new Knowledge Park buildings- YMCA- Grant-Harvey Centre- Curry Centre- Many housing projects (multi and single family dwellings)
2011 was the first year that Fredericton had the most landed immigrants in all of New Brunswick with 30%. This shift comes from a major decrease in immigration from the Saint John region of 27% from 2010 – 2011. Immigration efforts have been identified as a priority and we hope to see this number grow over the coming years.
Entrepreneurship is essential to any community. In the Fredericton Region, we average 590 net new business are registered in the Greater Fredericton Region every year, and this number is increasing!
