Leading the way

Greater Monctons Economic Development Strategy 2011-2016

Messages ................................................................4 Executive Summary.............................................6 Methodology & Context .................................10 Vision .....................................................................13 Strategic Objectives .........................................14 Critical Success Factors....................................25

Note from Enterprise Greater Moncton

Greater Moncton continues to be at its best when the community unites to work toward a common vision. The strategy outlined in the pages that follow is a clear example of what our community can produce when challenged to make itself stronger. Leading the Way: Greater Monctons Economic Development Strategy (2011-2016) is a collaboration of input from our regions municipal leaders, business leaders, academics, and experts in economic development. It reflects a desire to build on our diverse economy by strengthening our commitment to existing industries with renewed focus. Quite simply, for our region to continue to lead the way as our provinces economic engine we need five things. We need more people and more businesses, we need to be more competitive and more innovative, and we need to be more focused. I would like to thank the team at Enterprise Greater Moncton for their continued efforts to make our community stronger by helping new and existing entrepreneurs reach their goals. Also deserving praise are our economic development partners at the City of Dieppe, City of Moncton and Town of Riverview, in addition to our provincial and federal partners at Business New Brunswick, Invest NB, Post-Secondary Education, Training and Labour, and the Atlantic Canada Opportunities Agency. These groups are unwavering in their commitment to see Greater Moncton succeed. In closing I would like to remind you that completing and releasing this strategy is only the first step toward achieving our vision, but it is a step that we must all take together as we continue to build a more prosperous community. Edmond Koch Chair

Note from the City of Dieppe

For many years, Greater Moncton has had the enviable reputation of being one of the best places to live and do business. The City of Dieppe is proud to play a key role in this success thanks to remarkable growth on both the demographic and economic fronts. In 2012, our population will hit 23,000 residents, an increase of nearly 54 per cent in 10 years. This continuous growth has translated into a major increase in the amount of new residential and commercial construction. In order to stimulate the economy, several major investments have been made throughout the years to improve and develop our road infrastructure in order to provide access to new land for commercial and residential activity. The strength of our three communities relies on our common efforts. Greater Monctons Economic Development Strategy (2011-2016) will give the entire area a common global vision to follow, as well as goals to achieve over the next five years. We are pleased to be partners in this initiative to advance our area as an excellent place in which to do business an area that encourages the development of local businesses, that supports attracting skilled labour and that is committed to regional co-operation. Although Greater Monctons economic performance is the envy of many, we must never take it for granted. We must continue to reinvent ourselves and to actively collaborate on and adjust to the economic challenges on our doorstep in order to ensure that we continue to prosper. Jean LeBlanc Mayor

Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)

Note from the City of Moncton

The City of Moncton is pleased to have played a role in the development of this regional strategy and we are confident that it charts the right course for Greater Moncton. Working in partnership with Enterprise Greater Moncton, our community will continue to build on its strong economy and its position as the economic engine of New Brunswick. While our economic growth remains solid, we must not become complacent or rest on our laurels. This strategy allows us to continue to look toward the future and to evolve along with our growing population and infrastructure. We must continue to work together in order to remain globally competitive. We need to remember that an investment in any of our three communities is an investment in all. That is why we are fortunate to have all three communities working together towards continued regional economic development success. The strategy laid out by Enterprise Greater Moncton will ensure that we remain focused on this goal. Over the past few years, Greater Moncton has proven when we set our mind to something, we can accomplish anything. Let us continue to dream bigwith our can-do attitude, the sky is the limit. George LeBlanc Mayor

Note from the Town of Riverview

Over the years, Greater Moncton has continuously proven that it is a leader in economic development, thanks in large part to the shared commitment and vision found throughout the tri-community area. Our resiliency, tenacity and positive outlook have continuously pushed us to compete not just with other communities in Atlantic Canada, but throughout the world. This new community economic development strategy lays out a vision that builds on our regions past success while ensuring that we have an eye squarely on the future. It addresses how we will overcome the significant demographic challenges facing our region and how we can continue to be recognized as one of the best places to do business in North America. But perhaps most importantly, it highlights how we will measure the success of each objective. This is important, as we need to ensure that we maintain our edge as a great place to live, work and do business. The Town of Riverview is committed to working collaboratively with its neighboring communities in Moncton and Dieppe, as well as with Enterprise Greater Moncton, as we implement this strategy to ensure that our region remains the economic engine of New Brunswick and one of the fastest growing regions in Atlantic Canada. Leading the Way: Greater Monctons Economic Development Strategy (2011-2016) is a plan focused on addressing the new challenges that face our region, and I am confident that with the leadership of Enterprise Greater Moncton, we can achieve it. Clarence Sweetland Mayor

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.

Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)

Vision Moncton to lead New Brunswick in both For Greater Objectives

Ensure Greater Moncton has the labour capacity to support continued economic growth. Continue to champion and support organic growth in our regional economy.

population and economic growth over the next five years.

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.

Critical Success Factors

Increase our knowledge of the local economy by gathering and analyzing relevant data. Improve regional facilitation and collaboration of economic development partners. Engage community stakeholders in business retention and expansion. Focus foreign direct investment efforts on higher paying jobs that are complementary to our local strengths. Identify and develop economic metrics to measure performance results. Develop innovative solutions to facilitate access to capital for small and medium-sized enterprises. Ensure education and industry are aligned so that we are training the right skills. Attract the required talent to meet labour force needs.
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Measurement and Accountability

Track employment growth - from direct efforts influenced by Enterprise Greater Moncton. Attract and grow national and international firms in our targeted sectors. Measure new entrepreneurial start-ups. Implement the INNOVATIVE50 SME productivity challenge. Measure the attraction of immigrants and skilled workers. Implement the Enterprise Greater Moncton corporate scorecard.

Methodology & Context

The process of developing this new strategic plan began with a literature review of past economic development strategies for the Greater Moncton area, for other regions in the province, and for other similar-sized communities in Canada and parts of the United States. The objective of this process was to identify trends and best practices in strategic plan preparation related to economic development. In addition, a comprehensive review of the objectives and outcomes of the previous strategic plan was undertaken. The 2007-2010 Strategic Plan Released in 2007, Urban Growth Engine for New Brunswick laid out six key objectives to support the vision of being a leading urban centre for New Brunswick and the Maritime Provinces. The objectives were to: 1. 2. 3. 4. 5. 6. Generate 7,000 net new jobs from 2007-2010; Grow the population adequate to supply the labour force; Significantly increase the educational attainment of the workforce; Raise the average income level through the fostering of higher-end employment; Renew the focus on quality of life; and Innovative economic development. Following these consultations, all of the input was consolidated and reviewed by an internal committee at Enterprise Greater Moncton and a number of priority objectives were developed for continued review and discussion. Multiple sessions were held to bring greater focus and clarity to the new objectives and to develop a new set of critical success factors that would guide the work to be undertaken by Enterprise Greater Moncton and its stakeholders to support the implementation of the new strategy. Following this phase, presentations were again made to the key funding partners of Enterprise Greater Moncton, namely the Cities of Dieppe and Moncton and the Town of Riverview. The purpose of these sessions was to ensure support of the direction of the new strategy and provide another venue for input from municipal leaders. The final draft of this strategy was presented and approved by the Board of Directors of Enterprise Greater Moncton and the results are found in this document. The Economic, Demographic and Political Context The global recession, and the continued stagnant growth in the United States, poses a challenge for the Greater Moncton region. Several small to medium-sized manufacturers have closed their doors and the customer contact centre industry witnessed some reduction in overall employment. Many of New Brunswicks large exporting industries are struggling and that has ripple effects on the Greater Moncton economy. Tourism continues to be an important industry for Greater Moncton but it has witnessed employment declines in recent years. At the same time the finance and insurance industry is growing in Greater Moncton, as is the professional services industry. Many of the growth drivers of the past will not lead the way in the 2011-2016 period. It is unlikely that health care employment (up 31 per cent over the past decade) or public administration employment (up only modestly over the decade) will be a major source of employment growth. In fact, it is unlikely the entire public sector will expand employment in the near term as governments, both provincial and federal, act to bring down budget deficits. The customer contact centre sector is not likely to be a large growth area, although there should continue to be niche opportunities particularly in the finance and insurance industry, such as INGs July 2011 announcement establishing major operations in the community.

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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Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)

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.

Grow the population adequate to supply the labour force

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.

Other than those that extrapolate based on previous trends.

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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.

Renew the focus on quality of life

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.

Innovative economic development

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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Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)

For Greater Moncton to lead New Brunswick

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

Ensure Greater Moncton has the labour

Greater Moncton has seen its population grow strongly over the past 10 years. According to Statistics Canada, from 2000 to 2010 the population of the Greater Moncton CMA grew by 13 per cent. This was the fastest population growth rate of any metropolitan area east of Ontario. The population of the urban area is now over 138,000 people. The economic impacts of this change have been substantial. Record housing starts, major infrastructure enhancements, low unemployment, and significantly higher tax revenues for the province and municipalities. Clearly growth is good, but if we are going to ensure that this growth is sustainable, it is more important to understand where that growth is occurring. Greater Moncton is getting older. In fact, the number of employed persons aged 55 and older grew by 124 per cent from 2000 to 2010 while there was a slight decline in employment among those aged 25-44. Even the young generation 15 to 24 only saw limited employment growth over the decade. The repercussion of not reversing this trend is clear we will not have enough people available to fill the labour force gaps caused by people exiting the workforce through retirement. Greater Monctons business and community leaders have expressed their concerns about how we can sustain the economic growth and prosperity we have achieved in recent years without addressing this oncoming labour shortage. They note, correctly, that it is not just as simple as getting more workers, but expanding our base of skilled workers that can help us meet the growing challenges of competing in the 21st century economy. This includes those skilled in the trades, but also those skilled in information technology and health services, among others. It is for this reason that we need to ensure that we have the labour capacity and skills to support continued economic growth in our region.

capacity to support continued economic growth.

We will work to achieve this objective by: Focusing on growing our population and workforce through immigration, repatriation and retention. This must be a collaborative effort between municipal officials, economic development offices, provincial and federal officials, as well as community and business leaders. Bring education and industry together to identify specific labour gaps and develop plans to ensure we produce qualified workers in the right disciplines. Increase the total number of graduates of post-secondary education in our workforce. Increase the overall employment rate by better integration of those who are having difficulty entering and staying in the workforce.

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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businesses

Continue to champion and support

It is often said that small and medium-sized businesses are the backbone of our provincial economy, and nowhere is this truer than in Greater Moncton. According to Statistics Canadas Canadian Business Patterns report for 2010, 48 per cent of business establishments in Greater Moncton have less than five employees and a full 95 per cent have fewer than 50 employees. Compared to other urban centres of a similar size, Greater Moncton has a higher percentage of its economy reliant on small business. Small and medium-sized enterprises are key to growing our local economy for a number of reasons. First, they create local jobs; in fact the average small business in Greater Moncton employs 10 or fewer people. Second, profits tend to get reinvested in the company, which means greater investment in the local economy, as opposed to profits being transferred to an organizations head office out of the region. Third, taxes are paid here, which increases revenues for both provincial and municipal governments, which helps contribute to further economic development activity. Fourth, as local businesses grow and develop new expertise, they develop an opportunity to create synergies with other local companies. This allows our region to enhance our offering within different commercial sectors. Small and medium-sized businesses also ensure a healthy, dynamic and competitive market for goods and services in the Greater Moncton region. For example, there are over 100 law offices, 56 accounting firms, 52 engineering firms, 52 dentist offices and more than 70 beauty salons in the tri-community area2. This broad mix of firms ensures competitive prices, a mix of service offerings and career moves for people working in those industries. For our region to continue our prosperous economic growth, we need to ensure we remain focused on helping grow our local small and medium-sized businesses. This growth needs to come from both new startups and through helping our existing businesses expand and improve their product and service offerings while remaining here in Greater Moncton.

organic growth in our regional economy.

We will work to achieve this objective by: Continuing to offer key supports for business startups including business counselling, education seminars, and in applicable cases, financial supports. Enhancing our focus on business retention and expansion activities including more outreach initiatives and improve our strategic intelligence gathering on key target sectors. Implement the InnovatIve50 SME productivity challenge (see page 21). Increase the number of small and medium-sized enterprises in Greater Moncton. Increase employment through local expansions. Increase the survival rate of small and medium-sized enterprises.

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.

Source: Canadian Business Patterns June 2010 (Statistics Canada).

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competitive

Ensure Greater Moncton remains one

Over the past decade, Greater Moncton has had its share of recognition. Global consulting giant KPMG has ranked Greater Moncton as the number one place to do business in Atlantic Canada and the New England States in three consecutive studies3. MoneySense magazine recognized Greater Moncton as the fifth best place to live in Canada4. The Canadian Real Estate Association identified Greater Moncton as one of the top five real estate safe-havens in Canada5. The Intelligent Community Forum listed Moncton as one of the worlds Top Seven Intelligent Communities in 20096. Of course these are just a few of the honours bestowed on our community, and while it is nice to tout these designations it is more important to understand the reasons why we are being singled out and find ways to ensure that we stay on top. The Canadian Federation of Independent Business says that an entrepreneurial city is one where there is a high concentration of entrepreneurs and a high business start-up rate, where there is a high level of optimism, and where public policy supports a positive business environment7. Greater Moncton consistently demonstrates strong performance in all of these areas. As discussed in previous sections, our regional organic business growth is strong, however it remains an area where our community needs to push further. Much of this has to do with growing our overall base of entrepreneurs. Resiliency is a word often used to describe Greater Moncton and its residents. This resiliency has contributed to a very strong, optimistic outlook on the regions economic prospects. Many business leaders continuously cite their plans to grow and expand their operations, which, invariably has led to increases in our net employment. A low rate of taxation, both provincially and municipally make the overall cost of doing business in Greater Moncton very attractive, but when this is coupled with attractive labour costs and affordable real estate, it helps weave a compelling business case for investing in Greater Moncton. Of course complementing the financial business case is the excellent quality of life that our region has to offer. Success breeds success, but the key to remaining successful can be found in maintaining our position as being one of the best places to do business in North America.

of the best places to do business in North America.

We will work to achieve this objective by: Working to improve our KPMG Index Rating of 91.3, thereby maintaining our cost advantage over other North American locations. Increasing employment growth through entrepreneurial development as well as national and foreign direct investment. Strengthening our advantage by advocating for improving on our low-tax environment and improving regulatory policies.

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
3 4

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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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innovative

Increase our regions competitiveness by

The biggest threat to continued growth in our regional economy is complacency. Many companies that were founded in our region have enjoyed differing levels of success as they discovered a formula that has worked for them. These formulas have contributed to a loyal workforce that in many ways is capable of executing the organizations long-standing practices and processes with little risk of error, but in many ways they are not taking advantage of new technologies and efficiencies. Many of the top threats to economic growth in the Greater Moncton region can be mitigated through a new focus on productivity improvement and a renewed focus on innovation. For example, migrating our customer contact centre industry from telephone-based customer interaction to social media and online interaction will push our industry up the value chain. It may lead ultimately to fewer overall jobs but will still position Greater Moncton as a leading centre for North American customer contact centre activity. The same thinking applies to Moncton-based exporting firms. To counter the effects of a high value Canadian dollar and increased competition, firms need to become even more productive and use innovative thinking to build products and services that are in high demand in their target markets. The productivity and innovation challenge is not unique to Greater Moncton industries, but is a serious issue for the entire country. Canadas labour force productivity has been lagging behind other countries for decades. The impact of this is that we are not as competitive as other countries, which puts us at a serious disadvantage. To be clear, productivity improvement is not about working longer and harder, but more about working smarter - taking advantage of new technologies and process improvements to make operations more efficient - in essence, to be able to produce more with less. While some companies have moved to put an emphasis on productivity improvement, we are still behind other parts of the country. We need to become more competitive by stimulating productivity and innovation in our regional economy.

stimulating productivity improvement and innovation.

We will work to achieve this objective by: Implementing the InnovatIve50 SME productivity challenge (see below). Diligently promoting the importance of this issue directly with our client base and through partner organizations. Case studies and examples will be used to make it clear to other SMEs in the region. Working with our partners to promote productivity efforts among our SMEs. Identifying and promoting areas for productivity and innovation among our targeted industry sectors. The InnovatIve50 SME productivity challenge Enterprise Greater Moncton will be rolling out a new program called the InnovatIve50. The program will identify 50 SMEs in the Greater Moncton region and work with them to support their productivity and innovation efforts over the five year strategic plan. Enterprise Greater Moncton will gather baseline data on the firms such as overall sales, employment, export sales, spending on research and development, spending on training, etc. and then monitor the changes in firm productivity and innovation over time. Enterprise Greater Moncton will report on the progress of the InnovatIve50 .

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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focused

Focus on developing key sectors of our

Having learned from our mistake of being single-industry dependent in the past, one of the key strengths of our regions more recent economic development strategies has been a focus on industrial diversification. Evidence of the success of this strategic objective can be found in the fallout from the most recent global recession that impacted much of Canada and the world. As a region, the effects of this economic downturn were not as significant as other parts of the province, and country, in fact, for much of the early stages of the recession, our region actually added jobs, and many employers were forecasting growth in the near term. Over the past 20 years, Greater Moncton has built a strong, diversified economy, with some reports claiming that no single industry accounts for more than 15 per cent of the local market. This strategy of diversification has helped attract new people to the region bringing with them key expertise that was absent from our labour force make-up and new ideas that have helped contribute to a more vibrant community. With this strong base of support, we are now able to begin looking at building enhanced capacity within key industrial sectors that will lead to increased prosperity for the region. These key sectors include: health and life sciences, transportation and logistics, information technology, retail, manufacturing and the financial, insurance and real estate sectors.
Health and Life Sciences Transportation and Logistics

regional economy that will promote greater prosperity.

Geography is one asset that remains uniquely ours when comparing Greater Moncton to every other location in the Maritimes. Being at the geographic centre of our region has made us the logical choice for the many transportation and logistics companies that call Greater Moncton home. When coupled with new infrastructure investments at the Greater Moncton International Airport and in surrounding industrial parks, there is a compelling case to be made that the transportation and logistics sector is poised for continued growth and offers many new possibilities for entrepreneurs in our region.
Information Technology

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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Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)

Critical Success factors

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1. Increase our knowledge of the local economy

Being the organization with the most insight into the economic and demographic characteristics of the Greater Moncton economy is a crucial role for Enterprise Greater Moncton. No other organization has such an in-depth view of the economy and that knowledge informs the strategy and tactics of Enterprise Greater Moncton and its partner organizations. Despite an existing capacity in this area, there is more that Enterprise Greater Moncton can do to enhance its understanding of the local economy and the communication of trends and challenges to its partners and to the public at large.

by gathering and analysing relevant data.

areas across the country. In 2010, the number of days lost for the average worker in the Moncton CMA was below all the other communities in the benchmark group. The monthly labour force survey is also more robust now that Moncton is a CMA. In addition to Statistics Canada, there are many other data sources including government departments and agencies as well as private sector companies such as FP Markets, ERI Geographic Reference Report. In addition to these, many organizations publish reports on recurring or ad hoc basis that include Greater Moncton. Notable in this area is the KMPG Competitive Alternatives Report which is published every two years and is the most comprehensive assessment of operating cost and tax environment data available. Industry associations and trade groups also publish valuable information. Further, Enterprise Greater Moncton itself is a collector of local market intelligence from its Business Retention and Expansion survey process. The information gathered from the Business Retention & Expansion survey can provide insight into hard to access data such as research and development trends, productivity, exports, succession planning, etc. Starting in the first year of the strategic plan, Enterprise Greater Moncton will enhance its capacity to gather local market intelligence and find new ways to interpret and publish reports on the state of the economy and other trends such as infrastructure and demographics.
Specific activities will include: Benchmarking Greater Moncton against a number of similarly sized economies across Canada. Publishing annual reviews on the state of the economy. Providing timely and detailed insight to partner organizations. Providing investment lead support to Invest NB (expansion potential of national and international firms with a local presence). Providing company and industry intelligence to Atlantic Canada Opportunities Agency, Business New Brunswick and other partners. Tailoring Business Retention & Expansion surveys to provide insight into specific gaps such as R&D, productivity and workforce training.

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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Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)

2. Improve regional facilitation and

At its core, effective economic development is about relationships and networks. There are dozens of public sector organizations, industry associations, infrastructure providers and other stakeholders that influence the economic trajectory of the Greater Moncton region. Enterprise Greater Moncton is a networked organization. Realizing its importance, the 2011-2016 strategy places a direct focus on improving regional facilitation and collaboration of economic development partners.

collaboration of economic development partners.

Specific activities will include: A greater sharing of information between organizations - further stronger relationships. Better alignment of Enterprise Greater Moncton strategy and work plans with other partner organizations locally (Dieppe, Moncton and Riverview), provincially (Invest NB, Business New Brunswick, Post-Secondary Education Training & Labour, etc.) and federally (Atlantic Canada Opportunities Agency, National Research Council, etc.). A focus on these collaborations in our publications.

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3. Engage community stakeholders

According to a recent report published by the Atlantic Provinces Economic Council, communities in Atlantic Canada will have many more opportunities to generate company expansions from within than attracting firms from outside the region . Fostering expansions among the Greater Moncton business community with a particular focus on those firms exporting products or services is a key priority for Enterprise Greater Moncton. These expansions bring new economic activity into the region and grow the size of the economic pie to the benefit of all.

in business retention and expansion.

However, Enterprise Greater Moncton needs to leverage other community stakeholders to foster a stronger climate for expansion and to address specific challenges or opportunities in specific industries.

Companies visited between 2008-2011: Retention and expansion initiatives launched:

350 + 60 +

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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Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)

4. Focus investment attraction efforts on

With its ability to attract national and international business investment, Greater Moncton has been an example that other communities have tried to emulate. The contact centre industry, information technology, finance and insurance, manufacturing and transportation sectors, among others, have all benefitted from a significant influx of national and international business investment over the past two decades.

higher paying jobs that are complementary to our local strengths.

However, the economic and demographic dynamics of the local and regional economy are changing. As pointed out in Critical Success Factor 8, Greater Monctons population growth is increasingly coming from outside New Brunswick from immigrants and people living in other Canadian provinces. In order to attract and retain talent from outside our borders, we will need to offer rewarding and well-paying career opportunities. Over the last decade, Greater Moncton has witnessed employment growth in a number of above average wage industries such as professional services, education and finance/insurance. The largest growth sector has been business and other support services driven by customer contact centre activity.
Specific activities will include: Focusing on higher value, higher wage sectors such as health and life sciences, transportation and logistics, information technology and, finance, insurance and real estate. Efforts to attract manufacturing will focus more on capital intensive, high-wage sectors rather than low wage, labour intensive activities.

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5. Identify and develop economic

As covered in Critical Success Factor 1, Enterprise Greater Moncton will dedicate significant time and resources to understanding the dynamics of the local economy. This data collection will help us develop better economic metrics to measure the performance of Enterprise Greater Moncton against specific tasks and the economic progress of the community as a whole. These detailed metrics will allow the board of directors, funding partners and other stakeholders to clearly evaluate the success or failure of Enterprise Greater Moncton. It will also allow us to better understand what is working and what isnt working across our portfolio of services. There is good data available to help assess the value of business investment and job creation on the local and provincial economies. Statistics Canadas Input-Output tables provide a detailed look at the direct and indirect effects of new output in specific industries in New Brunswick. As the table shows, for every direct job created in the insurance sector, for example, another 3.3 are created elsewhere in the economy (up and down the supply chain from insurance brokerages to automobile repair). Software publishers have a relatively strong gross domestic product (GDP) effect. For every direct job created in that sector, there is nearly $160,000 worth of GDP across the provincial economy.

metrics to measure performance results.

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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Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)

6. Develop innovative solutions to facilitate

Access to growth capital continues to be a major impediment for many of Greater Monctons small to medium-sized businesses. There are a number of government and financial institution programs for this segment of the economy but the risk tolerance tends to be very low particularly among traditional financial institutions. Enterprise Greater Moncton will work with its partners to develop innovative solutions. We have worked in recent years to develop tailored programs for young entrepreneurs, immigrants and other targeted groups and will continue to do so during the 2011-2016 strategic plan period.
Specific activities will include:

access to capital for small and medium-sized enterprises.

Growth capital - finding effective sources of capital that support growth without putting too great a debt burden and imperiling cash flow. Research and development funding - increasingly Greater Monctons SMEs will need to focus on innovation and productivity as key differentiators in the marketplace. This requires external funding sources. Equity financing - relatively few Greater Moncton SMEs take on external equity. Many would rather grow more slowly or not at all rather than give away equity. However, equity financing is an important part of the story for successful growth economies across North America. Enterprise Greater Moncton will work to foster a greater awareness of this funding channel and will work to find new ways to match local SMEs with potential equity partners. Partnerships - increasingly firms are looking for more than just financing. They are looking for financing, expertise, market development and other business attributes that will help them grow. Forging partnerships between SMEs and larger firms or SMEs with other firms that have specific attributes is an important activity in a maturing economy. These partnerships can be between local firms or from collaboration among local firms and national or international firms.

Development

Funding Partnerships

Research Growth

Capital Financing

Equity

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7. Ensure education and industry

As discussed above, the Greater Moncton economy has been undergoing rapid changes in recent years. There has been substantial growth in occupational areas such as business and finance, health care, applied sciences, management and construction. At the same time, wholesale trade occupations, retail sales and lower wage assembly/manufacturing jobs are in decline. In addition, the sources of new business investment in the 2011-2016 period will be evolving away from the growth industries of the past. As an example, there will likely be less investment in customer contact centre activity and more in life sciences and information technology.

are aligned so we are training the right skills.

Over the 2011-2016 period this dynamic will continue and intensify as the boomer generation retires and the workforce is increasingly filled with new immigrants and people moving here from the rest of Canada. Greater Moncton needs a flexible and dynamic education system that is turning out graduates with the necessary skills to compete in ever more technical and complex occupations. In addition to professional and technical occupations, it is important for the labour force to be increasing its essential workplace skills. These are skills that are applicable to most jobs in the economy such as literacy and numeracy. Many employers are struggling to find workers for many jobs that require these essential skills. Enterprise Greater Moncton will work closely with our partners in education including: The regions five universities (Universit de Moncton, Mount Allison, Crandall and the Moncton campuses of UNB and Sherbrooke); The NBCC and CCNB; The more than two dozen private sector training colleges/institutes; Industry groups offering training; and Government departments/agencies involved in training.

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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Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)

8. Attract the required talent

Bucking the trend in Atlantic Canada, Greater Monctons population has been growing strongly over the past two decades. However, just in the past three years, the dynamics of this growth are changing in a fundamental way. Until recently, Greater Monctons population growth was primarily fuelled by intra-provincial migration people moving from other parts of New Brunswick. However, from 2008 to 2010 there has been a strong rise in the number of immigrants and interprovincial migrants (from other provinces). In 2002, there were three people moving to Moncton from other areas of New Brunswick for every one person moving here from outside New Brunswick. Now there are more people moving into Greater Moncton from outside the province than from within it. The future workforce will increasingly come from outside the province as the supply of workers available for intra-provincial mobility has declined sharply in recent years.

to meet our labour force needs.

Enterprise Greater Moncton has been actively involved with efforts to attract people to the region and will continue to make this a key focus area for 2011-2016.
Specific activities will include: Working with employers to ensure that government agencies working on people attraction have a clear understanding of market needs. Attending people attraction related trade shows. Coordinating immigrant in-missions. Developing promotional materials focused on attracting talent to the region. Working with partners to ensure those who are moving to the region can integrate easily (spousal employment, child care, etc.).

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Leading the Way: Greater Monctons Economic Development Strategy (2011-2016)