Messages ................................................................4 Executive Summary.............................................6 Methodology & Context .................................10 Vision .....................................................................13 Strategic Objectives .........................................14 Critical Success Factors....................................25
Executive Summary
For over 20 years, Enterprise Greater Moncton has been the lead economic development organization for the Greater Moncton region. Though its mandate and activities have evolved in recent years, Enterprise Greater Monctons focus on promoting Greater Moncton as an excellent location to do business has remained a constant theme. In addition, Enterprise Greater Moncton has continued to play a key role fostering local business expansions and working on efforts to strengthen the value proposition for investing in the Greater Moncton region. Leading the Way: Greater Monctons Economic Development Strategy (2011-2016) has five objectives with an increasing focus on aligning labour market and industry needs. Having a dynamic, growing and trained workforce will be the most critical success factor for any jurisdiction in the future. The plan places a strong focus on targeted sectors. Generic value proposition elements such as low costs or loyal workers are less relevant today than they might have been in the past. Now, companies are looking for a clear value proposition for their industry. Over the two decades, the structure of the economy in Greater Moncton has undergone significant changes. Arguably, there are few urban centres across Canada who have witnessed such a transformation. The economic growth has been fostered by a good mix of external investment attraction into customer contact centres, information, transportation and logistics as well as higher end manufacturing. It has also been fostered by local entrepreneurs exploiting expanding market opportunities here and outside New Brunswick. The workforce has expanded to meet the needs of industry through a mix of local, provincial, national and international sources. Now we are at a crossroads. Demographic trends are catching up to the region which will require most of the new population growth in the future to come from outside the borders of New Brunswick. We will need a more dynamic education and training sector to meet the demands of industry and to support the integration of immigrant workers. At the same time, many of the industries that led economic growth over the past 10-20 years are not likely to lead the way going forward. It is incumbent upon Enterprise Greater Moncton and its partners to understand these trends and reflect them in their activities. Leading the Way: Greater Monctons Economic Development Strategy (2011-2016) reflects this changing competitive landscape. It sets an ambitious vision for the regional economy and then lays out in detail how Enterprise Greater Moncton and its partners will impact and influence the vision. The strategic plan affirms Greater Monctons evolving role as an urban hub for New Brunswick and the Maritime provinces. There are eight critical success factors in the plan. Building even more local market knowledge and strengthening regional and organizational partnerships are two of the most important success factors. Creating even more robust tools for measuring economic progress and success is another critical success factor. Finally, the plan places a priority on measurement and accountability. The board of directors, key stakeholders and funding partners want to know they are making a good investment of their time and resources into Enterprise Greater Moncton. The organization will strive to deliver on clear measurements and ensure that its efforts are providing real value for the citizens of Greater Moncton.
Ensure Greater Moncton remains one of the best places to do business in North America. Increase our regions competitiveness by stimulating productivity improvement and innovation. Focus on developing key sectors of our regional economy that will promote greater prosperity.
Considering the global recession that hit after the release of the 2007 strategy, the communitys economy has shown considerable resilience. While there were employment declines in several sectors (notably tourism-related and customer contact centres), the majority of main industry groups saw increases in total employment over the period. The table starting on page 11 summarizes the six objectives and the outcomes over the 2007-2010 period. Setting the Stage for 2011-2016 Following the literature review, Enterprise Greater Moncton organized a series of consultations with municipal, community and business leaders throughout the region to gather their input on the future direction of economic development in the Greater Moncton region. This included multiple meetings with; municipal councils in Dieppe, Moncton and Riverview and their respective economic development offices, members of the business community at large, academics, experts in economic development, and with other key stakeholders including the Board of Directors of Enterprise Greater Moncton and its Strategic Partners.
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But the Greater Moncton economy has shown itself to be resilient and a diversified mix of industries should buffer the region from additional economic turmoil. There are industries with growth potential and they are summarized beginning on page 23. On the demographic front, Greater Moncton is facing a considerable challenge as older workers retire and as new jobs emerge requiring different skill sets. The population over the age of 50 is growing much faster than younger groups. As illustrated in the chart below, there is a wave of population between the ages of 50 and 64 heading towards retirement and no growth in the 35-49 age group.
Urban Growth Engine for New Brunswick (2007-2010) Generate 7,000 net new jobs from 2007-2010
From 2007-2010, Greater Moncton was understandably impacted by the global recession and subsequent challenges in the US market. Despite this turmoil, Enterprise Greater Moncton can point to 8,658 new jobs created that were influenced by the efforts of the organization. These jobs fall into the following four categories: Business Counselling 4,655; New Startups - 416; Pro-active Site Visits 1,017; Total Net New Jobs Created - 8,658.
The population of Greater Moncton grew by a strong five per cent over the 2007-2010 period. This was ninth best among the 35 CMA regions across Canada and the fastest growing population east of Ontario (Source: Statistics Canada Table 051-0046). Greater Monctons immigrant population grew by 1,838 over the same period.
Significantly increase the This is harder to measure because there is no source between Census periods that tracks educational attainment1. However, there was strong educational attainment growth over the period in occupations that require higher levels of of the workforce
educational attainment such as professional occupations in business and finance (up 24 per cent), professional occupations in health (up 23 per cent), natural sciences occupations (up 17 per cent) and management occupations (up six per cent). Source: Statistics Canada Table 282-0114.
However, the community is responding well as a recent influx of immigrants and inter-provincial migrants are bolstering the labour market. This dynamism in the workforce will be critical to the economy moving forward. On the political front, the provincial government is determined to realign and reorganize its approach to economic development which should bode well for Greater Moncton. The new Invest New Brunswick mandated to promote the province to national and multinational firms will have a powerful ally in Greater Moncton.
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ContdUrban Growth Engine for New Brunswick (2007-2010) Raise the average income levels through the fostering of higher end employment
The latest data available on income levels shows the medial household in Greater Moncton saw a 6.9 per cent rise in total income between 2006 and 2009 (Source: Statistics Canada Table 111-0008). Another source, FP Markets estimates just under 13 per cent growth rate in household incomes between 2007-2011.
Enterprise Greater Moncton led the development and implementation of Quality of Life benchmarks for the region. These benchmarks include: Community health; Community safety; Affordable housing; Natural environment; Community participation; Employment and sustainable income; Population resource; Leisure and cultural vibrancy.
Enterprise Greater Moncton implemented a number of innovative tools to support economic development in the region over the 2007-2010 timeframe. These include: Development of an interactive business planner; Development and measurement of key economic indicators; KPMG rankings; Innovative marketing collateral; Enhanced website and social media development; Enterprise Greater Moncton community breakfast.
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in both population and economic growth over the next five years.
Vision
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14 Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)
people
How will we measure success? Compare our population growth to the national average, as well as to comparable benchmark communities (Saint John, Halifax, Kingston, Peterborough, Regina, Sherbrooke and Red Deer), using December 2010 as a baseline. Track the graduate levels of our post-secondary education institutions. Compare the Moncton CMA post-secondary educational attainment level to the national average and our benchmark communities, using the 2006 Census as a baseline. Measure changes in the employment rate (62.6 per cent at the end of 2010).
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16 Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)
businesses
How will we measure success? Increase the growth in small business startups (track startup density levels per 1,000 population). This data is easily measured using the Statistics Canada publication Canadian Business Patterns which is released twice a year and includes detailed information on business establishments to the six-digit NAICS level. The figure shows the growth/decline of business establishments by employment level in the Greater Moncton region over the 2003-2010 period. Increase the size of small business through expansions. We will track the growth of business establishments by industry group by employment level over time. The last seven-year period led to significant growth in micro-businesses but a decline in the overall number of businesses in the 20 to 99 employee level.
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18 Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)
competitive
How will we measure success? Monitoring and reporting on third party measures such as the KPMG Competitive Alternatives Index. Tracking investment and employment growth through national and foreign direct investment. Increasing our Policy Component ranking on the Canadian Federation of Independent Businesss Entrepreneurship Index from 66 in 2010 to 75 by 2015.
Competitive Alternatives: KPMGs Guide to International Business Location, 2010 Edition, 2008 Edition, 2006 edition. http://www.moneysense.ca/2010/04/30/best-places-to-live-2010 5 Cochrane, Alan. Metro a real estate safe haven. Times & Transcript. 21 November 2008: A3
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http://www.intelligentcommunity.org/index.php?src=news&refno=284&category=Partner+News&prid=284 Communities in Boom: Canadas Top Entrepreneurial Cities. Canadian Federation of Independent Business. October 2011
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20 Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)
innovative
How will we measure success? Monitor baseline and progress data from the InnovatIve50 SME productivity challenge. Track the overall number of firms Enterprise Greater Moncton and its partners support in their productivity and innovation efforts. Increase the application of innovation by improving regional connectivity and collaboration. Increase the number of referrals to various support programs to stimulate productivity and innovation.
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22 Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)
focused
The information technology sector took off in Greater Moncton and in other parts of New Brunswick after some major infrastructure upgrades were made by NBTel in the 1990s. Over the past 15-20 years the IT sector has evolved to include contact centres, software developers, gaming technology, manufacturing, and many back-office administrative support centres. NBTel has evolved into Bell Aliant which recently extended its fibre optic network to every home in Greater Moncton. Key segments of the industry have developed their own networking and advocacy groups to foster continued development of the sector including, Propel ICT, Contact Centre Partnership, and Tech South East among others.
Retail
The health and life sciences industry has been one of the fastest growing sectors of the Canadian economy for well over a decade, and that growth has been mirrored in Greater Moncton. From 2000 to 2010, the health care sector grew total employment by almost 31 per cent. As was noted in the Greater Moncton Health and Life Sciences Industry Development Roadmap (2010), Greater Moncton has the highest concentration of health care workers and biomedical research in the province. A sector development strategy is currently being drafted which will help with not only sector growth, but with recruitment of much-needed medical professionals to our rapidly growing community. Because of government budget deficits, there will likely be slower growth in the publicly-funded component of the health care industry. However, there remains considerable potential for Greater Moncton to grow health business services and biosciences activity serving broader markets across Canada and beyond.
Greater Moncton is head and shoulders above every other urban centre in the Maritimes when it comes to retail. With a catchment area of 1.3 million people within 2.5 hours, and an excellent mix of stores, it is clear that our community remains Atlantic Canadas Premiere Shopping Destination. Retail sales in the Moncton CMA are close to 17 per cent above the national average, which contributes to a compelling business case for retailers looking to expand into Atlantic Canada. The advantages of this sector are clear from a tourism sector and from the increases new stores bring to the municipal tax base.
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Manufacturing
The manufacturing/processing sector in Greater Moncton has shown impressive growth over the last decade and continues to grow today. The companies in this industry are varied and include high technology, doors and windows, metalworking, paper products, glass container moldings, and brewing. While export growth to the United States has been slowed due to the rising value of the Canadian dollar, our local companies have shown resiliency by looking to other export markets to sell their products.
Financial, Insurance & Real Estate
We will work to achieve this objective by: Working with partner organizations to build a strong value proposition for investing in our targeted sectors. Addressing, with partner organizations, any gaps in the value proposition within our targeted sectors. Creating a compelling business case for investing in our targeted sectors. Working with partners such as Invest NB to promote the region outside our borders. Working with partners such as ACOA and Business New Brunswick to grow from within.
While it is not often talked about, Greater Moncton has a strong base from which to build in the financial, insurance and real estate sector. Medavie Blue Cross, Assomption Vie and RBC Royal Bank are just a few of the many corporations from this sector that have large operations here, with a number of other companies offering significant employment in the region. With this base of firms, combined with our good track record with back office administration and a bilingual workforce, there is room to grow this sector within Greater Moncton. This growth potential is bolstered by the recent announcement by ING to establish a 200 person customer contact centre in the community.
On a sector-specific basis we will: Play a lead role in catalyzing the health & life sciences cluster in the Greater Moncton area. Foster more investment in our transportation and logistics sector by working to attract regional warehouses, promoting our air cargo capacity and working to ensure there is a supply of workers for this valuable industry. Grow the information technology cluster by fostering new IT startups, promoting the growth of our existing firms and attracting strategic players to the cluster. Solidify the regions status as a retail hub by continuing to promote Greater Moncton as Atlantic Canadas Premiere Shopping Destination and attracting new first to market retailers to the region. Look for specific opportunities in the financial, insurance and real estate sectors. Helping local entrepreneurs in targeted sectors find new export markets for their products.
How will we measure success? Tracking direct investment and job creation in our targeted sectors. Tracking the number of new startups in targeted sectors. Growing the number of information technology companies in the region by 5 per cent. In 2010, there were 100 IT firms in the Greater Moncton region. Tracking the increase of annual total retail sales in the Moncton CMA. Increasing air cargo volume by 15 per cent using December 2010 as a baseline.
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There are a wide variety of organizations that publish data on the Greater Moncton economy. Now that the Moncton urban region is a Census Metropolitan Area (CMA) the amount and frequency of data collected by Statistics Canada has been considerably expanded. For example, Statistics Canada publishes detailed data annually on employment by industry and occupation; a breakdown of family income by source; and detailed information on migration patterns. A good example of this is found in the chart shown above. As a CMA, Statistics Canada now publishes annual data on absenteeism in Greater Moncton compared to other metropolitan
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Specific activities will include: Working with business groups and leaders to find opportunities up and down key industry supply chains. Working more closely with our universities to foster more entrepreneurial start-ups out of the academic setting.
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Enterprise Greater Moncton Benchmark Communities Halifax, NS Saint John, NB Sherbrooke, QC Peterborough, ON Kingston, ON Regina, SK Red Deer, AB
Specific activities will include: Publishing detailed data comparing Greater Moncton against its benchmark communities. Publishing data on the economic impacts (direct and indirect) of Enterprise Greater Moncton activities including GDP, taxation and consumer spending effects. Developing metrics to evaluate the performance of Enterprise Greater Moncton task areas such as business expansions, start-ups, etc.
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Development
Funding Partnerships
Research Growth
Capital Financing
Equity
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Specific activities will include: Bringing together business groups and educational/training institutions. Helping to target training towards groups such as older workers, youth and those looking to re-enter the workforce after an extended absence. New immigrant training. Essential workplace skills.
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