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Shipbuilding in Halifax


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This is a presentation titled "The Catalytic Impact of the National Shipbuilding Procurement Strategy " presented by Fred Morley, Executive VP and Chief Economist
Greater Halifax Partnership on May 27, 2011

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Shipbuilding in Halifax

  1. 1. Shipbuilding in HalifaxThe Catalytic Impact of the National Shipbuilding Procurement Strategy<br />Fred Morley<br />Executive VP and Chief Economist<br />Greater Halifax Partnership<br />
  2. 2. Is This Really The Biggest Project Since the Navy Came to Town 100 Years Ago?<br />
  3. 3. Is This Really The Biggest Project Since the Navy Came to Town 100 Years Ago?<br />Yes<br />If Irving Shipbuilding Inc. becomes a prime contractor under the NSPS and undertakes the 30 year combat vessel program<br />
  4. 4. The Broad Economic Impacts for Nova Scotia<br />Summary Economic Impact in Nova Scotia by NSPS Project<br />Dollar values shown in $Millions<br />*Direct, indirect and induced in Nova Scotia.<br />**All dollar values except real GDP are shown in current (non-inflation adjusted) dollars. Real GDP is shown in basic prices 2002 dollars). Source: Conference Board of Canada (May 2011)<br />
  5. 5. Where Will People Spend<br />Personal income in Nova Scotia will jump by $447 a year on average<br />Transportation<br />750 new cars per year<br />$17 million in gasoline sales<br />$7.5 million in auto insurance premiums<br />Housing<br />420 new homes a year<br />8000 over the life of the project<br />
  6. 6. How Big is Big?<br />Bigger than whole sectors in an average year.<br />Bigger than all employment in the province’s 11 universities in a good year.<br />Chart is meant as an illustration of the magnitude and not an “apples to apples” comparison<br />
  7. 7. If Halifax Wins EVERYONE WINS<br />The supply chain, indirect benefits and industrial and regional benefits of a Halifax based program would generate benefits in every region.<br />Halifax is the best option for broad national impact<br />Canadian Patrol Frigate Program Example<br />25% of direct spending in Ontario<br />Increase in Real GDP for every $1,000 of Procurement in Nova Scotia Shipbuilding <br />ONT<br />$<br />195 <br />BC<br />$<br />107 <br />QUE<br />$<br />89 <br />Prairie <br />Provinces<br />$<br />82 <br />Other <br />Atl. Canada<br />$<br />19 <br />$<br />-<br />$100 <br />$200 <br />$300 <br />Source: Conference Board of Canada (2011).<br />
  8. 8. Can One Project Turn Around A Whole Province? <br />Yes<br />This could shift GDP by 2.4% a year.<br />Halifax becomes one of Canada fast growth cities<br />Nova Scotia population trends could turn around<br />The NSPS should be the start of a much bigger and longer expansion of the shipbuilding sector in Nova Scotia and the region.<br />The cornerstone of Nova Scotia’s Ocean’s Cluster.<br />
  9. 9. How Good Are Our Chances?<br />Company capability<br />$90 million invested in capital and people in the last 5 years<br />Irving has built 80% of the current surface combat ships fleet<br />Top 5 aerospace and defence company<br />Talented workforce<br />Community capability<br />35,000 university and community college<br />Base of operations for the Canadian Navy..Next-door<br />Community, Provincial and Atlantic Region Support<br />We do shipbuilding<br />
  10. 10. People Are Helping<br />Labour leaders, education stakeholders and community leaders are excited about the NSPS as a catalytic investment in the region.<br />The Halifax Chamber of Commerce, the Greater Halifax Partnership and many other business groups have endorsed the project. <br />The Nova Scotia Legislature issued an all-party resolution in support of the ISI bid.<br />Labour leaders in Nova Scotia have expressed public support and other community leaders are also endorsing the concept.<br />Atlantic Mayors<br />HRM Council<br />The Council of Atlantic Premiers<br /><br />
  11. 11. People are Excited<br />
  12. 12. Online Activity in the Past 30 Days, by Shipyard<br />Source: Radian6 reports<br />
  13. 13. Timeline of Irving Shipbuilding and Halifax Shipyard mentions<br />Source: Radian6 report<br />