- Kingston sees three years of manufacturing growth—with more to come
- Ontario East food-processing industry showcased globally at food show
- Ontario East moves forward with new board members as review continues
- Peterborough aviation business to add 40 positions to skilled workforce
Kingston sees three years of manufacturing growth—with more to come
Economic developers in Kingston are celebrating three straight years of strong manufacturing growth in the census metropolitan area.
The news comes with the release of a Conference Board of Canada report that says manufacturing output expanded by an estimated 5.2 percent in 2012 after 6.8 percent annual growth in 2010 and 2011. This is in stark contrast to most of the 2000s when output fell every year from 2001 to 2009 and 2,400 jobs were shed.
While manufacturing employs relatively few people in Kingston—4,800, according to the Conference Board, the employment it brings has extremely high value in the community.
Jeff Garrah, president and CEO of Kingston Economic Development Corp., said a healthy manufacturing sector is “critical” because manufacturing involves exports, which have huge impact on gross domestic product.
“It’s bringing new money from the outside as opposed to recycling the existing money that is circulating in the economy,” Garrah said.
Manufacturing jobs also tend to pay well. Manufacturing jobs generally create a spinoff of four to one, he said. This means that every position in manufacturing impacts four other jobs. Garrah said this ratio climbs to six to one in the food-processing industry.
The Conference Board report attributes Kingston’s manufacturing growth to an improving U.S. economy. Garrah believes the success of Kingston companies in winning Eastern Ontario Development Fund grants has also played a role.
For example, alongside the win of two EODF grants in 2010 and 2011 worth a total of $2.25 million, Bombardier Transportation created 90 skilled positions at its Kingston-area facility.
Other examples include natural food colour and dye producer Sensient Colors Canada Ltd., which is spending $3 million to expand its Kingston plant, and TFP Stairs and Railings, which is doubling the size of its operation by building a 20,000 sq.ft. factory.
The Conference Board report projects that manufacturing growth will continue but at a more moderate pace of 2.7 percent.
To facilitate that growth, Garrah said KEDCO will focus on the food-processing industries and on research and development related to security and defence technologies—with good reason.
CFB Kingston is growing, the city has a large corrections presence, and it is home to two global defence research companies: Morgan Armour Ltd., which makes and sells ceramic body armour to militaries around the world, and intelligence systems firm Thales Canada, which recently set up shop in Kingston.
Ontario East food-processing industry showcased globally at food show
Food company decision makers from around the world got a taste of the food-processing services and products that Ontario East has to offer at North America’s largest specialty food and beverage event.
Representatives of Ontario East Economic Development’s food sector marketing team attended the recent Winter Fancy Food Show in San Francisco, California with other members of the Canadian Pavilion.
Theteam handed out directories of Eastern Ontario’s food-processing companies. The directories are sought by food show delegates who represent specialty food, wine, gift and department stores as well as supermarkets, restaurants, and mail-order firms.
“If they’re looking for suppliers or particular products, they can find them with our comprehensive directory,” said Chris King, the food sector team’s chairman.
This was the fifth year that the team has attended the event, which attracted more than 18,800 retail and foodservice buyers and other industry professionals and 2,400 exhibitors from 80 countries and regions.
It’s a critical event for Eastern Ontario, said King.
“It’s important to keep going because there are always food companies looking for new jurisdictions to locate in,” he said. “We want to keep Eastern Ontario top of mind with a lot of these food companies.”
Indeed, the proof of the event’s value is in the pudding—or sauce or side dish or soup.
After meeting the Ontario East food sector team at a Fancy Food Show several years ago, Bakkavor USA Inc. opened its first Canadian operation in Cobourg in 2011 and immediately hired 30 people. Bakkavor makes dozens of pre-packaged food products, including Asian and Italian meals, salads, sauces, soups and vegetable side dishes.
Ontario East moves forward with new board members as review continues
The organization that markets Eastern Ontario to the world is looking inward and forward as it adjusts to new leadership and awaits the result of its first sweeping organizational review.
“There won’t be any large changes, maybe a little rejigging,” said Craig Kelley, the new president of Ontario East Economic Development.
The newly appointed board of directors, with three new members, met for the first time for Ontario East’s annual general meeting on Feb. 15.
There was plenty for the new board to talk about as the organization is undergoing an organizational review by Jay Amer of Amer & Associates Economic Development, who has agreed to provide executive management support to Ontario East through to the end of June.
Jay is consulting with economic developers in the organization’s 200 member communities and he’s examining Ontario East’s overall budgetary requirements and annual operating budget needs. He’s also investigating sector team priorities and strategic opportunities.
Meanwhile, the board is reviewing the organization’s staffing structure. Ontario East was able to fund a full-time executive director position in 2010 with a three-year grant from the Eastern Ontario Development Fund and intends to build on this to continue to provide innovative and valuable services to the membership.
There are plans to develop and build stronger partnerships with other organizations that are working on regional economic development, including the Eastern Ontario Wardens Caucus, provincial economic development organizations, and other provincial bodies, Kelley said.
At the same time, it is also revisiting the sector teams, which represent this region’s food, advanced manufacturing, logistics, tourism investment, and creative economy sectors, to ensure that the members are satisfied and that there is clear direction moving forward.
The teams have been very successful at promoting Eastern Ontario at conferences, trade fairs, and trade mission at home and abroad.
A team that will probably change focus is the one that markets the creative economy, said Kelley.
“Moving forward, it may shift a little bit to have a rural focus,” he said. “We hope to reach out to rural Eastern Ontario communities to see how we can support them as the region’s economic development commission.”
The new board members are
- Susan Fournier, Executive Director of Lanark/Valley Heartland Community Futures Development Corp.;
- Shelley Hirstwood, Economic Development Manager for the Town of Gananoque; and
- Rob Hunter, Economic Development and Communications Officer for the Township of North Dundas.
Peterborough aviation business to add 40 positions to skilled workforce
A Peterborough business that converts jets into corporate aircraft is creating 40 new, highly skilled positions and is growing its workforce by 20 percent.
Flying Colours Corp. announced its planned growth in a recent news conference with Peterborough MP Dean Del Mastro, Haliburton-Kawartha Lakes MP Barry Devolin, Peterborough Mayor Daryl Bennett, local politicians and others.
The event revealed that Flying Colours received an interest-free loan of up to $900,000 through the federal government’s FedDev Ontario prosperity initiative program.
Del Mastro said the federal government granted the loan to help Flying Colours (www.flyingcolourscorp.com) to innovate and grow.
“That’s why we continue to support companies like Flying Colours that are able to create jobs and compete and win in international markets,” he told the Peterborough Examiner newspaper.
Flying Colours is based at the Peterborough Municipal Airport. It specializes in converting large regional jets into corporate aircrafts with custom details, and it employs just over 200 people.
Over the past couple of years, Flying Colours has upgraded equipment and trained employees to achieve certification as an approved business for maintenance and warranty repair work for Bombardier aircrafts. It is also a certified Bombardier supplier.
Flying Colours also completes new aircrafts from the Bombardier Aerospace factory.
It’s expected the certification and other factors will add up to 40 highly skilled full-time equivalent jobs at the company’s facility and increase reach in Canadian and international markets.
Mayor Bennett told the Peterborough Examiner that the federal money could make a big difference to Flying Colours.
“Flying Colours is a prime example of what a bit of money invested on behalf of the taxpayers of this country can mean to a community of this size,” Bennett told the newspaper.