EGM: Leading the Way en Final

8/3/2019 EGM: Leading the Way en Final

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LeadingtheGreater Monctons Economic Development Strategy 2011-2016way


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Messages

Executive Summary

Methodology & Context

Vision

Strategic Objectives

Critical Success Factors

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4 Le adi ng the Way : Greater Monctons Economic Development Strategy (2011-2016)

Greater Moncton continues to be at its best when the communityunites to work toward a common vision. The strategy outlined in

the pages that ollow is a clear example o what our community canproduce when challenged to make itsel stronger.

Leading the Way: Greater Monctons Economic Development Strategy

(2011-2016) is a collaboration o input rom our regions municipalleaders, business leaders, academics, and experts in economic

development. It reects a desire to build on our diverse economy bystrengthening our commitment to existing industries with renewed

ocus.

Quite simply, or our region to continue to lead the way as ourprovinces economic engine we need ve things. We need more

people and more businesses, we need to be more competitive andmore innovative, and we need to b e more ocused.

I would like to thank the team at Enterprise Greater Moncton or

their continued eorts 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 o Dieppe, City o Moncton and Town o Riverview, in additionto our provincial and ederal partners at Business New Brunswick,

Invest NB, Post-Secondary Education, Training and Labour, andthe 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 releasingthis strategy is only the rst step toward achieving our vision, but

it is a step that we must all take together as we continue to build amore prosperous community.

Edmond Koch

Chair

Note rom Enterprise Greater Moncton

For many years, Greater Moncton has had the enviable reputation o

being one o the best places to live and do business.

The City o Dieppe is proud to play a key role in this success thanks toremarkable growth on both the demographic and economic ronts.

In 2012, our population will hit 23,000 residents, an increase o nearly

54 per cent in 10 years. This continuous growth has translated intoa major increase in the amount o new residential and commercialconstruction.

In order to stimulate the economy, several major investments have

been made throughout the years to improve and develop our roadinrastructure in order to provide access to new land or commercial

and residential activity.

The strength o our three communities relies on our common eorts.Greater Monctons Economic Development Strategy (2011-2016)

will give the entire area a common global vision to ollow, as well asgoals to achieve over the next ve 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 encouragesthe development o local businesses, that supports attracting skilled

labour and that is committed to regional co-operation.

Although Greater Monctons economic perormance is the envyo many, we must never take it or 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 LeBlancMayor

Note rom the City o Dieppe


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The City o Moncton is pleased to have played a role in the

development o this regional strategy and we are condent that itcharts the right course or Greater Moncton. Working in partnership

with Enterprise Greater Moncton, our community will continue tobuild on its strong economy and its position as the economic engine

o New Brunswick.

While our economic growth remains solid, we must not becomecomplacent or rest on our laurels. This strategy allows us to continue

to look toward the uture and to evolve along with our growingpopulation and inrastructure.

We must continue to work together in order to remain globally

competitive. We need to remember that an investment in any o ourthree communities is an investment in all.

That is why we are ortunate to have all three communities working

together towards continued regional economic developmentsuccess. The strategy laid out by Enterprise Greater Moncton will

ensure that we remain ocused on this goal.

Over the past ew years, Greater Moncton has proven when we setour 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 rom the City o Moncton

Over the years, Greater Moncton has continuously proven that it is a

leader in economic development, thanks in large part to the sharedcommitment and vision ound 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 thatwe have an eye squarely on the uture. It addresses how we will

overcome the signicant demographic challenges acing our regionand how we can continue to be recognized as one o the best places

to do business in North America. But perhaps most importantly, ithighlights how we will measure the success o each objective. This

is important, as we need to ensure that we maintain our edge as agreat place to live, work and do business.

The Town o Riverview is committed to working collaboratively with

its neighboring communities in Moncton and Dieppe, as well as withEnterprise Greater Moncton, as we implement this strategy to ensure

that our region remains the economic engine o New Brunswick andone o the astest growing regions in Atlantic Canada.

Leading the Way: Greater Monctons Economic Development Strategy(2011-2016) is a plan ocused on addressing the new challengesthat ace our region, and I am condent that with the leadership o

Enterprise Greater Moncton, we can achieve it.

Clarence SweetlandMayor

Note rom the Town o Riverview


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For over 20 years, Enterprise Greater Moncton has been the lead economic development

organization or the Greater Moncton region. Though its mandate and activities have evolved inrecent years, Enterprise Greater Monctons ocus on promoting Greater Mon cton as an excellent

location to do business has remained a constant theme. In addition, Enterprise Greater Monctonhas continued to play a key role ostering local business expansions and working on eorts to

strengthen the value proposition or investing in the Greater Moncton region.

Over the two decades, the structure o the economy in Greater Moncton has undergonesignicant changes. Arguably, there are ew urban centres across Canada who have witnessed

such a transormation. The economic growth has been ostered by a good mix o externalinvestment attraction into customer contact centres, inormation, transportation and logistics

as well as higher end manuacturing. It has also been ostered by local entrepreneurs exploiting

expanding market opportunities here and outside New Bruns wick. The workorce has expandedto meet the needs o industry through a mix o local, provincial, national and internationalsources.

Now we are at a crossroads. Demographic trends are catching up to the region which will require

most o the new population growth in the uture to come rom outside the borders o NewBrunswick. We will need a more dynamic education and training sector to meet the demands o

industry and to support the integration o immigrant workers.

At the same time, many o the industries that led economic growth over the past 10-20 years arenot likely to lead the way going orward.

It is incumbent upon Enterprise Greater Moncton and its partners to understand these trends

and reect them in their activities. Leading the Way: Greater Monctons Economic DevelopmentStrategy (2011-2016) reects this changing competitive landscape. It sets an ambitious vision

or the regional economy and then lays out in detail how Enterprise Greater Moncton and itspartners will impact and inuence the vision. The strategic plan afrms Greater Monctons

evolving role as an urban hub or New Brunswick and the Maritime provinces.

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

objectives with an increasing ocus on aligning labour market and industry needs. Having adynamic, growing and trained workorce will be the most critical success actor or any jurisdiction

in the uture. The plan places a strong ocus on targeted sectors. Generic value propositionelements such as low costs or loyal workers are less relevant today than they might have been

in the past. Now, companies are looking or a clear value proposition or their industry.

There are eight critical success actors in the plan. Building even more local market knowledgeand strengthening regional and organizational partnerships are two o the most important

success actors. Creating even more robust tools or measuring economic progress and successis another critical success actor.

Finally, the plan places a priority on measurement and accountability. The board o directors,key stakeholders and unding partners want to know they are making a good investment otheir time and resources into Enterprise Greater Moncton. The organization will strive to deliver

on clear measurements and ensure that its eorts are providing real value or the citizens oGreater Moncton.

Executive Summary


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VisionFor Greater Moncton to lead New Brunswick in bothpopulation and economic growth over the next ve years.

Ensure Greater Moncton has the labourcapacity to support continued economic growth.

Continue to champion and supportorganic growth in our regional economy.

Ensure Greater Moncton remains oneo the best places to do business in North America.

Focus on developing key sectors o our regionaleconomy that will promote greater prosperity.

Increase our regions competitiveness bystimulating productivity improvement and innovation.

Objectives


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Critical Success FactorsIncrease our knowledge o the localeconomy by gathering and analyzing relevant data.

Improve regional acilitation andcollaboration o economic development partners.

Engage community stakeholdersin business retention and expansion.

Focus oreign direct investment eorts on higherpaying jobs that are complementary to our local strengths.

Identiy and develop economicmetrics to measure perormance results.

Develop innovative solutions to acilitate access

to capital or small and medium-sized enterprises.

Ensure education and industry arealigned so that we are training the right skills.

Attract the required talentto meet labour orce needs.


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Measurement and AccountabilityTrack employment growth - rom directeorts infuenced by Enterprise Greater Moncton.

Attract and grow national andinternational rms in our targeted sectors.

Measure newentrepreneurial start-ups.

Implement the INNOVATIVE50SME productivity challenge.

Measure the attraction oimmigrants and skilled workers.

Implement the Enterprise

Greater Moncton corporate scorecard.


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

The process o developing this new strategic plan began with a l iterature review o past economic

development strategies or the Greater Moncton area, or other regions in the province, andor other similar-sized communities in Canada and parts o the United States. The objective o

this process was to identiy trends and best practices in strategic plan preparation related toeconomic development. In addition, a comprehensive review o the objectives and outcomes

o the previous strategic plan was undertaken.

The 2007-2010 Strategic Plan

Released in 2007, Urban Growth Engine for New Brunswicklaid out six key objectives to support

the vision o being a leading urban centre or New Brunswick and the Maritime Provinces. Theobjectives were to:

Generate 7,000 net new jobs rom 2007-2010;1.Grow the population adequate to supply the labour orce;2.Signicantly increase the educational attainment o the workorce;3.

Raise the average income level through the ostering o higher-end employment;4.Renew the ocus on quality o lie; and5.

Innovative economic development.6.

Considering the global recession that hit ater the release o the 2007 strategy, the communityseconomy has shown considerable resilience. While there were employment declines in several

sectors (notably tourism-related and customer contact centres), the majority o main industrygroups 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 o consultationswith municipal, community and business leaders throughout the region to gather their

input on the uture direction o economic development in the Greater Moncton region. Thisincluded multiple meetings with; municipal councils in Dieppe, Moncton and Riverview and

their respective economic development ofces, members o the business community at large,academics, experts in economic development, and with other key stakeholders including the

Board o Directors o Enterprise Greater Moncton and its Strategic Partners.

Following these consultations, all o the input was consolidated and reviewed by an internal

committee at Enterprise Greater Moncton and a number o priority objectives were developedor continued review and discussion. Multiple sessions were held to bring greater ocus and

clarity to the new objectives and to develop a new set o critical success actors that wouldguide the work to be undertaken by Enterprise Greater Moncton and its stakeholders to support

the implementation o the new strategy.

Following this phase, presentations were again made to the key unding partners o EnterpriseGreater Moncton, namely the Cities o Dieppe and Moncton and the Town o Riverview. The

purpose o these sessions was to ensure support o the direction o the new strategy and provideanother venue or input rom municipal leaders.

The nal drat o this strategy was presented and approved by the Board o Directors o E nterpriseGreater Moncton and the results are ound in this document.

The Economic, Demographic and Political Context

The global recession, and the continued stagnant growth in the U nited States, poses a challengeor the Greater Moncton region. Several small to medium-sized manuacturers have closed

their doors and the customer contact centre industry witnessed some reduction in overallemployment. Many o New Brunswicks large exporting industries are struggling and that has

ripple eects on the Greater Monc ton economy. Tourism continues to be an important industryor Greater Moncton but it has witnessed employment declines in recent years. At the same

time the nance and insurance industry is growing in Greater Moncton, as is the proessionalservices industry.

Many o the growth drivers o 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 administrationemployment (up only modestly over the decade) will be a major source o employment

growth. In act, it is unlikely the entire public sector will expand employment in the near termas governments, both provincial and ederal, act to bring down budget decits. The customer

contact centre sector is not likely to be a large growth area, although there should continue tobe niche opportunities particularly in the nance and insurance industry, such as INGs July 2011

announcement establishing major operations in the community.

Methodology & Context


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But the Greater Moncton economy has shown itsel to be resilient and a diversied mix o

industries should buer the region rom additional economic turmoil. There are industries withgrowth potential and they are summarized beginning on page 23.

On the demographic ront, Greater Moncton is acing a considerable challenge as older workers

retire and as new jobs emerge requiring dierent skill sets. The population over the age o 50 isgrowing much aster than younger groups. As illustrated in the chart below, there is a wave o

population between the ages o 50 and 64 heading towards retirement and no growth in the35-49 age group.

However, the community is responding well as a recent inux o immigrants and inter-provincialmigrants are bolstering the labour market. This dynamism in the workorce will be critical to the

economy moving orward.

On the political ront, the provincial government is determined to realign and reorganize itsapproach to economic development which should bode well or Greater Moncton. The new

Invest New Brunswick mandated to promote the province to national and multinational rms will have a powerul ally in Greater Moncton.

Urban Growth Engine or New Brunswick (2007-2010)

Generate 7,000 net new

jobs rom 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 inuenced by the eorts o the organization. These jobs

all into the ollowing our 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 orce

The population o Greater Moncton grew by a strong ve per cent over

the 2007-2010 period. This was ninth best among the 35 CMA regions

across Canada and the astest growing population east o Ontario

(Source: Statistics Canada Table 051-0046). Greater Monctons immigrant

population grew by 1,838 over the same period.

Signicantly increase the

educational attainment

o the workorce

This is harder to measure because there is no source between Census

periods that tracks educational attainment1. However, there was strong

growth over the period in occupations that require higher levels o

educational attainment such as proessional occupations in business and

nance (up 24 per cent), proessional 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.

1 Other than those that extrapolate based on previous trends.


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ContdUrban Growth Engine or New Brunswick (2007-2010)

Raise the average income

levels through the

ostering o 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 ocus on

quality o lie

Enterprise Greater Moncton led the development and implementation

o Quality o Lie benchmarks or the region. These benchmarks include:

Community health;

Community saety;

Aordable housing;

Natural environment;

Community participation;

Employment and sustainable income;

Population resource;

Leisure and cultural vibrancy.

Innovative economic

development

Enterprise Greater Moncton implemented a number o innovative tools

to support economic development in the region over the 2007-2010

timerame. These include:

Development o an interactive business planner;

Development and measurement o key economic indicators;

KPMG rankings;

Innovative marketing collateral;

Enhanced website and social media development;

Enterprise Greater Moncton community breakast.


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VisionFor Greater Moncton to lead New Brunswickin both population and economic growth over the next ve years.


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Morepeople


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Greater Moncton has seen its population grow strongly over the past 10 years. According to

Statistics Canada, rom 2000 to 2010 the population o the Greater Moncton CMA grew by 13per cent. This was the astest population growth rate o any metropolitan area east o Ontario.

The population o the urban area is now over 138,000 people.

The economic impacts o this change have been substantial. Record housing starts, majorinrastructure enhancements, low unemployment, and signicantly higher tax revenues or

the province and municipalities. Clearly growth is good, but i we are going to ensure that thisgrowth is sustainable, it is more important to understand where that growth is occurring.

Greater Moncton is getting older. In act, the number o employed persons aged 55 and older

grew by 124 per cent rom 2000 to 2010 while there was a slight decline in employment among

those aged 25-44. Even the young generation 15 to 24 on ly saw limited employment growthover the decade. The repercussion o not reversing this trend is clear we will not have enoughpeople available to ll the labour orce gaps caused by people exiting the workorce through

retirement.

Greater Monctons business and community leaders have expressed their concerns about howwe 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 asgetting more workers, but expanding our base o skilled workers that can help us meet the

growing challenges o competing in the 21 st century economy. This includes those skilled in thetrades, but also those skilled in inormation technology and health services, among others.

It is or this reason that we need to ensure that we have the labour capacity and skills to

support continued economic growth in our region.

We will work to achieve this objective by:

Focusing on growing our population and workorce through immigration, repatriation

and retention. This must be a collaborative eort between municipal ofcials, economic

development ofces, provincial and ederal ofcials, as well as community and businessleaders.

Bring education and industry together to identiy specic labour gaps and develop plans

to ensure we produce qualied workers in the right disciplines.

Increase the total number o graduates o post-secondary education in our workorce.

Increase the overall employment rate by better integration o those who are having

difculty entering and staying in the workorce.

How will we measure success?

Compare our population growth to the national average, as well as to comparable

benchmark communities (Saint John, Haliax, Kingston, Peterborough, Regina,

Sherbrooke and Red Deer), using December 2010 as a baseline.

Track the graduate levels o 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 o 2010).

Ensure Greater Moncton has the labourcapacity to support continued economic growth.


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It is oten said that small and medium-sized businesses are the backbone o our provincial

economy, and nowhere is this truer than in Greater Moncton. According to Statistics CanadasCanadian Business Patterns report or 2010, 48 per cent o business establishments in Greater

Moncton have less than ve employees and a ull 95 per cent have ewer than 50 employees.Compared to other urban centres o a similar size, Greater Moncton has a higher percentage o

its economy reliant on small business.

Small and medium-sized enterprises are key to growing our local economy or a number oreasons. First, they create local jobs; in act the average small business in Greater Moncton

employs 10 or ewer people. Second, prots tend to get reinvested in the company, whichmeans greater investment in the local economy, as opposed to prots being transerred to an

organizations head ofce ou t o the region. Third, taxes are paid here, which increases revenues

or both provincial and municipal governments, which helps contribute to urther economicdevelopment activity. Fourth, as local businesses grow and develop new expertise, theydevelop an opportunity to create synergies with other local companies. This allows our region

to enhance our oering within dierent commercial sectors.

Small and medium-sized businesses also ensure a healthy, dynamic and competitive market orgoods and services in the Greater Moncton region. For example, there are over 100 law ofces,

56 accounting rms, 52 engineering rms, 52 dentist ofces and more than 70 beauty salonsin the tri-community area2. This broad mix o rms ensures competitive prices, a mix o service

oerings and career moves or people working in those industries.

For our region to continue our prosperous economic growth, we need to ensure we remain

ocused on helping grow our local small and medium-sized businesses. This growth needs to

come rom both new startups and through helpin g our existing businesses expand and improvetheir product and service oerings while remaining here in Greater Moncton.


Continuing to oer key supports or business startups including business counselling,

education seminars, and in applicable cases, nancial supports.

Enhancing our ocus 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 o small and medium-sized enterprises in Greater Moncton.

Increase employment through local expansions.

Increase the survival rate o small and medium-sized enterprises.


Increase the growth in small business startups (track start up 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

inormation on business establishments to the six-digit NAICS level. The gure shows thegrowth/decline o business establishments by employment level in the Greater Moncton

region over the 2003-2010 period.

Increase the size o small business through expansions. We will track the growth o

business establishments by industry group by employment level over time. The last

seven-year period led to signicant growth in micro-businesses but a decline in theoverall number o businesses in the 20 to 99 employee level.

Continue to champion and supportorganic growth in our regional economy.

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


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Morecompetitive


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Over the past decade, Greater Moncton has had its share o recognition. Global consulting giant

KPMG has ranked Greater Moncton as the number one place to do business in Atlantic Canadaand the New England States in three consecutive studies3. MoneySense magazine recognized

Greater Moncton as the th best place to live in Canada4. The Canadian Real Estate Associationidentied Greater Moncton as one o the top ve real estate sae-havens in Canada 5. The

Intelligent Community Forum listed Moncton as one o the worlds Top Seven IntelligentCommunities in 20096.

O course these are just a ew o 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 beingsingled out and nd ways to ensure that we stay on top.

The Canadian Federation o Independent Business says that an entrepreneurial city is one wherethere is a high concentration o entrepreneurs and a high business start-up rate, where there isa high level o optimism, and where public policy supports a positive business environment 7.

Greater Moncton consistently demonstrates strong perormance in all o these areas.

As discussed in previous sections, our regional organic business growth is strong, howeverit remains an area where our community needs to push urther. Much o this has to do with

growing our overall base o entrepreneurs.

Resiliency is a word oten used to describe Greater Moncton and its residents. This resiliencyhas 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 o taxation, both provincially and municipally make the overall cost o doing business

in Greater Moncton very attractive, but when this is coupled with attractive labour costsand aordable real estate, it helps weave a compelling business case or investing in Greater

Moncton. O course complementing the nancial business case is the excellent quality o liethat our region has to oer.

Success breeds success, but the key to remaining successul can be ound in maintaining ourposition as being one o the best places to do business in North America.


Working to improve our KPMG Index Rating o 91.3, thereby maintaining our cost

advantage over other North American locations.

Increasing employment growth through entrepreneurial development as well as national

and oreign direct investment.

Strengthening our advantage by advocating or improving on our low-tax environment

and improving regulatory policies.


Monitoring and reporting on third party measures such as the KPMG Competitive

Alternatives Index.

Tracking investment and employment growth through national and oreign direct

investment.

Increasing our Policy Component ranking on the Canadian Federation o Independent

Businesss Entrepreneurship Index rom 66 in 2010 to 75 by 2015.

Ensure Greater Moncton remains oneo the best places to do business in North America.

3 Competitive Alternatives: KPMGs Guide to International Business Location, 2010 Edition, 2008 Edition, 2006 edition.4 http://www.moneysense.ca/2010/04/30/best-places-to-live-20105 Cochrane, Alan. Metro a real estate sae haven.Times & Transcript. 21 November 2008: A3

6 http://www.intelligentcommunity.org/index.php?src=news&reno=284&category=Partner+News&prid=2847 Communities in Boom: Canadas Top Entrepreneurial Cities. Canadian Federation o Independent Business. October 2011


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Moreinnovative


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The biggest threat to continued growth in our regional economy is complacency. Many

companies that were ounded in our region have enjoyed diering levels o success as theydiscovered a ormula that has worked or them. These ormulas have contributed to a loyal

workorce that in many ways is capable o executing the organizations long-standing practicesand processes with little risk o error, but in many ways they are not taking advantage o new

technologies and efciencies.

Many o the top threats to economic growth in the Greater Moncton region can be mitigatedthrough a new ocus on productivity improvement and a renewed ocus on innovation. For

example, migrating our customer contact centre industry rom telephone-based customerinteraction to social media and online interaction will push our industry up the value chain.

It may lead ultimately to ewer overall jobs but will still position Greater Moncton as a leading

centre or North American customer contact centre activity.

The same thinking applies to Moncton-based exporting rms. To counter the eects o a high

value Canadian dollar and increased competition, rms need to become even more productiveand 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, butis a serious issue or the entire country. Canadas labour orce productivity has been lagging

behind other countries or decades. The impact o this is that we are not as competitive as othercountries, 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 o newtechnologies and process improvements to make operations more efcient - in essence, to be

able to produce more with less.

While some companies have moved to put an emphasis on productivity improvement, we arestill behind other parts o the country. We need to become more competitive by stimulatingproductivity and innovation in our regional economy.


Implementing the InnovatIve50 SME productivity challenge (see below).

Diligently promoting the importance o 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 eorts among our SMEs.

Identiying and promoting areas or productivity and innovation among our targeted

industry sectors.

The InnovatIve50 SME productivity challengeEnterprise Greater Moncton will be rolling out a new program called the InnovatIve50.

The program will identiy 50 SMEs in the Greater Moncton region and work with them

to support their productivity and innovation eorts over the ve year strategic plan.Enterprise Greater Moncton will gather baseline data on the rms such as overall sales,

employment, export sales, spending on research and development, spending on

training, etc. and then monitor the changes in rm productivity and innovation over time.Enterprise Greater Moncton will report on the progress o the InnovatIve50 .


Monitor baseline and progress data rom the InnovatIve50 SME productivity challenge.

Track the overall number o rms Enterprise Greater Moncton and its partners suppor t in

their productivity and innovation eorts.

Increase the application o innovation by improving regional connectivity and

collaboration.

Increase the number o reerrals to various support programs to stimulate productivity

and innovation.

Increase our regions competitiveness bystimulating productivity improvement and innovation.


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Moreocused


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Having learned rom our mistake o being single-industry dependent in the past, one o thekey strengths o our regions more recent economic development strategies has been a ocus

on industrial diversication. Evidence o the success o this strategic objective can be ound inthe allout rom the most recent global recession that impacted much o Canada and the world.

As a region, the eects o this economic downturn were not as signicant as other parts o theprovince, and country, in act, or much o the early stages o the recession, our region actually

added jobs, and many employers were orecasting growth in the near term.

Over the past 20 years, Greater Moncton has built a strong, diversied economy, with somereports claiming that no single industry accounts or more than 15 per cent o the local market.

This strategy o diversication has helped attract new people to the region bringing with themkey expertise that was absent rom our labour orce make-up and new ideas that have helped

contribute to a more vibrant community.

With this strong base o support, we are now able to begin looking at building enhanced

capacity within key industrial sectors that will lead to increased prosperity or the region .

These key sectors include: health and lie sciences, transportation and logistics, inormationtechnology, retail, manuacturing and the nancial, insurance and real estate sectors.

Health and Lie Sciences

The health and lie sciences industry has been one o the astest growing sectors o the Canadianeconomy or 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 o health care workers and biomedicalresearch in the province. A sector development strategy is currently being drated which willhelp with not only sector growth, but with recruitment o much-needed medical proessionals

to our rapidly growing community. Because o government budget decits, there will likely beslower growth in the publicly-unded component o the health care industry. However, there

remains considerable potential or Greater Moncton to grow health business services andbiosciences activity serving broader markets across Canada and beyond.

Transportation and Logistics

Geography is one asset that remains uniquely ours when comparing Greater Moncton toevery other location in the Maritimes. Being at the geographic centre o our region has made

us the logical choice or the many transportation and logistics companies that call GreaterMoncton home. When coupled with new inrastructure investments at the Greater Moncton

International Airport and in surrounding industrial parks, there is a compelling case to be madethat the transportation and logistics s ector is poised or continued growth and oers many new

possibilities or entrepreneurs in our region.

Inormation Technology

The inormation technology sector took o in Greater Moncton and in other parts o New

Brunswick ater some major inrastructure upgrades were made by NBTel in the 1990s. Over

the past 15-20 years the IT sector has evolved to include contact centres, sotware developers,gaming technology, manuacturing, and many back-ofce administrative support centres.NBTel has evolved into Bell Aliant which recently extended its bre optic n etwork to every home

in Greater Moncton. Key segments o the industry have developed their own networking andadvocacy groups to oster continued development o the sector including, Propel ICT, Contact

Centre Partnership, and Tech South East among o thers.

Retail

Greater Moncton is head and shoulders above every other urban centre in the Maritimes when it

comes to retail. With a catchment area o 1.3 million people within 2.5 hours, and an excellent mixo stores, it is clear that our community remainsAtlantic Canadas Premiere Shopping Destination .

Retail sales in the Moncton CMA are close to 17 per cent above the national average, whichcontributes to a compelling business case or retailers looking to expand into Atlantic Canada.

The advantages o this sector are clear rom a tourism sector and rom the increases new storesbring to the municipal tax base.

Focus on developing key sectors o ourregional economy that will promote greater prosperity.


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Working with partner organizations to build a strong value proposition or investing in

our targeted sectors.

Addressing, with partner organizations, any gaps in the value proposition within our

targeted sectors.

Creating a compelling business case or 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 rom within.

On a sector-specifc basis we will:

Play a lead role in catalyzing the health & lie 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 o workers or this valuable industry.

Grow the inormation technology cluster by ostering new IT startups, promoting the

growth o our existing rms and attracting strategic players to the cluster.

Solidiy the regions status as a retail hub by continuing to promote Greater Moncton asAtlantic Canadas Premiere Shopping Destination and attracting new rst to market retailers

to the region.

Look or specic opportunities in the nancial, insurance and real estate sectors.

Helping local entrepreneurs in targeted sectors nd new export markets or their

products.


Tracking direct investment and job creation in our targeted sectors.

Tracking the number o new startups in targeted sectors.

Growing the number o inormation technology companies in the region by 5 per cent. In

2010, there were 100 IT rms in the Greater Moncton region.

Tracking the increase o annual total retail sales in the Moncton CMA.

Increasing air cargo volume by 15 per cent using December 2010 as a baseline.

Manuacturing

The manuacturing/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 andinclude 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 therising value o the Canadian dollar, our local companies have shown resiliency by looking to

other export markets to sell their products.

Financial, Insurance & Real Estate

While it is not oten talked about, Greater Moncton has a strong base rom which to build in the

nancial, insurance and real estate sector. Medavie Blue Cross, Assomption Vie and RBC RoyalBank are just a ew o the many corporations rom this sector that have large operations here,with a number o other companies oering signicant employment in the region. With this b ase

o rms, combined with our good track record with back ofce administration and a bilingualworkorce, 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 contactcentre in the community.


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CriticalSuccess

actors


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areas across the country. In 2010, th e number o days lost or the average worker in the Moncton

CMA was below all the other communities in the benchmark group. The monthly labour orcesurvey 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 GeographicReerence Report. In addition to these, many organizations publ ish reports on recurring or ad hoc

basis that include Greater Moncton. Notable in this area is the KMPG Competitive AlternativesReport which is published every two years and is the most comprehensive assessment o

operating cost and tax environment data available. Industry associations and trade groups alsopublish valuable inormation.

Further, Enterprise Greater Moncton itsel is a collector o local market intelligence rom its

Business Retention and Expansion survey process. The inormation gathered rom the BusinessRetention & Expansion survey can provide insight into hard to access data such as research and

development trends, productivity, exports, succession plannin g, etc.

Starting in the rst year o the strategic plan, Enterprise Greater Moncton will enhance itscapacity to gather local market intelligence and nd new ways to interpret and publish reports

on the state o the economy and other trends such as inrastructure and demographics.

Being the organization with the most insight into the economic and demographic characteristics

o the Greater Moncton economy is a crucial role or Enterprise Greater Moncton. No otherorganization has such an in-depth view o the economy and that knowledge inorms the

strategy and tactics o Enterprise Greater Moncton and its partner organizations. Despite anexisting capacity in this area, there is more that Enterprise Greater Moncton can do to enhance

its understanding o the local economy and the communication o trends and challenges to itspartners and to the public at large.

There are a wide variety o organizations that publish data on the Greater Moncton economy.

Now that the Moncton urban region is a Census Metropolitan Area (CMA) the amount andrequency o data collected by Statistics Canada h as been considerably expanded. For example,

Statistics Canada publishes detailed data annually on employment by industry and occupation;a breakdown o amily income by source; and detailed inormation on migration patterns.

A good example o this is ound in the chart shown above. As a CMA, Statistics Canada nowpublishes annual data on absenteeism in Greater Moncton compared to other metropolitan

1. Increase our knowledge o the local economyby gathering and analysing relevant data.

Specifc activities will include:

Benchmarking Greater Moncton against a number o similarly sized economies across

Canada.

Publishing annual reviews on the state o the economy.

Providing timely and detailed insight to partner organizations.

Providing investment lead support to Invest NB (expansion potential o national andinternational rms 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 specic gapssuch as R&D, productivity and workorce training.


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At its core, eective economic development is about relationships and networks. There are

dozens o public sector organizations, industry associations, inrastructure providers and otherstakeholders that inuence the economic trajectory o the Greater Moncton region. Enterprise

Greater Moncton is a networked organization. Realizing its importance, the 2011-2016strategy places a direct ocus on improving regional acilitation and collaboration o economic

development partners.

2. Improve regional acilitation andcollaboration o economic development partners.


A greater sharing o inormation between organizations - urther s tronger relationships.

Better alignment o 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 ederally

(Atlantic Canada Opportunities Agency, National Research Council, etc.).

A ocus on these collaborations in our publications.


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However, Enterprise Greater Moncton needs to leverage other community stakeholders to

oster a stronger climate or expansion and to address specic challenges or opportunities inspecic industries.

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 romwithin than attracting rms rom outside the region . Fostering expansions among the Greater

Moncton business community with a particular ocus on those rms exporting products orservices is a key priority or Enterprise Greater Moncton. These expansions bring new economic

activity into the region and grow the size o the economic pie to the benet o all.

3. Engage community stakeholdersin business retention and expansion.


Working with business groups and leaders to nd opportunities up and down key

industry supply chains.

Working more closely with our universities to oster more entrepreneurial start-ups out o

the academic setting.

Companies visitedbetween 2008-2011:

350 +Retention and expansioninitiatives launched: 60 +


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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,inormation technology, nance and insurance, manuacturing and transportation sectors,

among others, have all benetted rom a signicant inux o national and in ternational businessinvestment over the past two decades.

4. Focus investment attraction eorts onhigher paying jobs that are complementary to our local strengths.


Focusing on higher value, higher wage sectors such as health and lie sciences,

transportation and logistics, inormation technology and, nance, insurance and realestate.

Eorts to attract manuacturing will ocus more on capital intensive, high-wage sectors

rather than low wage, labour intensive activities.

However, the economic and demographic dynamics o the local and regional economy are

changing. As pointed out in Critical Success Factor 8, Greater Monctons population growth isincreasingly coming rom outside New Brunswick rom immigrants and people living in other

Canadian provinces. In order to attract and retain talent rom outside our borders, we will needto oer rewarding and well-paying career opportun ities.

Over the last decade, Greater Moncton has witnessed employment growth in a number o

above average wage industries such as proessional s ervices, education and nance/insurance.The largest growth sector has been business and other support services driven by customer

contact centre activity.


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As covered in Critical Success Factor 1, Enterprise Greater Moncton will dedicate signicant timeand resources to understanding the dynamics o the local economy. This data collection will

help us develop better economic metrics to measure the perormance o Enterprise GreaterMoncton against specic tasks and the economic progress o the community as a whole.

These detailed metrics will allow the board o directors, unding partners and other stakeholders

to clearly evaluate the success or ailure o Enterprise Greater Moncton. It will also allow us tobetter understand what is working and what isnt working across our portolio o services.

There is good data available to help assess the

value o business investment and job creationon the local and provincial economies. Statistics

Canadas Input-Output tables provide a detailedlook at the direct and indirect eects o new

output in specic industries in New Brunswick.As the table shows, or every direct job created in

the insurance sector, or example, another 3.3 arecreated elsewhere in the economy (up and down

the supply chain rom insurance brokerages toautomobile repair). Sotware publishers have a

relatively strong gross domestic product (GDP)eect. For every direct job created in that sector,

there is nearly $160,000 worth o GDP across theprovincial economy.

5. Identiy and develop economicmetrics to measure perormance results.


Publishing detailed data comparing Greater Moncton against its benchmark

communities.

Publishing data on the economic impacts (direct and indirect) o Enterprise Greater

Moncton activities including GDP, taxation and consumer spending eects.

Developing metrics to evaluate the perormance o Enterprise Greater Moncton task

areas such as business expansions, start-ups, etc.

Enterprise Greater Moncton

Benchmark Communities

Haliax, NS

Saint John, NB

Sherbrooke, QC

Peterborough, ON

Kingston, ON

Regina, SK

Red Deer, AB


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Access to growth capital continues to be a major impediment or many o Greater Monctons

small to medium-sized businesses. There are a number o government and nancial institutionprograms or this segment o the economy but the risk tolerance tends to be very low

particularly among traditional nancial institutions. Enterprise Greater Moncton will work withits partners to develop innovative solutions. We have worked in recent years to develop tailored

programs or young entrepreneurs, immigrants and other targeted groups and will continue todo so during the 2011-2016 strategic plan period.

6. Develop innovative solutions to acilitateaccess to capital or small and medium-sized enterprises.


Growth capital - nding eective sources o capital that support growth without putting

too great a debt burden and imperiling cash ow.

Research and development unding - increasingly Greater Monctons SMEs will need

to ocus on innovation and productivity as key dierentiators in the marketplace. This

requires external unding sources.

Equity nancing - relatively ew Greater Moncton SMEs take on external equity. Many

would rather grow more slowly or not at all rather than give away equity. However,equity nancing is an important part o the story or successul growth economies across

North America. Enterprise Greater Moncton will work to oster a greater awareness o

this unding channel and will work to nd new ways to match local SMEs with potentialequity partners.

Partnerships - increasingly rms are looking or more than just nancing. They are

looking or nancing, expertise, market development and other business attributes that

will help them grow. Forging partnerships between SMEs and larger rms or SMEs with

other rms that have specic attributes is an important activity in a maturing economy.These partnerships can be between local rms or rom collaboration among local rms

and national or international rms.

ResearchGrowth

D

evelopmen

t

Capital

Funding

FinancingPartnerships

Equity


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As discussed above, the Greater Moncton economy has been un dergoing rapid changes in recentyears. There has been substantial growth in occupational areas such as business and nance,health care, applied sciences, management and construction. At the same time, wholesale trade

occupations, retail sales and lower wage assembly/manuacturing jobs are in decline.

In addition, the sources o new business investment in the 2011-2016 period will be evolvingaway rom the growth industries o the past. As an example, there will likely be less investment

in customer contact centre activity and more in lie sciences and inormation technology.

7. Ensure education and industryare aligned so we are training the right skills.


Bringing together business groups and educational/training institutions.

Helping to target training towards groups such as older workers, youth and those lookingto re-enter the workorce ater an extended absence.

New immigrant training.

Essential workplace skills.

Over the 2011-2016 period this dynamic will continue and intensiy as the boomer generationretires and the workorce is increasingly lled with new immigrants and people moving hererom the rest o Canada. Greater Moncton needs a exible and dynamic education system that is

turning out graduates with the necessary skills to compete in ever more technical and complexoccupations.

In addition to proessional and technical occupations, it is important or the labour orce to be

increasing its essential workplace skills. These are skills that are applicable to most jobs in theeconomy such as literacy and numeracy. Many employers are struggling to nd workers or

many jobs that require these essential skills.

Enterprise Greater Moncton will work closely with our partners in education including:

The regions ve universities (Universit de Moncton, Mount Allison, Crandall and theMoncton campuses o UNB and Sherbrooke);

The NBCC and CCNB;The more than two dozen private sector training colleges/institutes;

Industry groups oering training; andGovernment departments/agencies involved in training.


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Bucking the trend in Atlantic Canada, Greater Monctons population has been growingstrongly over the past two decades. However, just in the past three years, the dynamics othis growth are changing in a undamental way. Until recently, Greater Monctons population

growth was primarily uelled by intra-provincial migration people moving rom other partso New Brunswick. However, rom 2008 to 2010 there has been a strong rise in the number

o immigrants and interprovincial migrants (rom other provinces). In 2002, there were threepeople moving to Moncton rom other areas o New Brunswick or every one person moving

here rom outside New Brunswick. Now there are more people moving into Greater Monctonrom outside the province than rom within it. The uture workorce will in creasingly come rom

outside the province as the supply o workers available or intra-provincial mobility has declinedsharply in recent years.

8. Attract the required talentto meet our labour orce needs.


Working with employers to ensure that government agencies working on people

attraction have a clear understanding o market needs.

Attending people attraction related trade shows.

Coordinating immigrant in-missions.

Developing promotional materials ocused 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.).

Enterprise Greater Moncton has been actively involved with eorts to attract people to theregion and will continue to make this a key ocus area or 2011-2016.


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EGM: Leading the Way en Final

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