SmartCity Blog

Fred's Second Day of Christmas: A "Doer's" Conference

By Fred Morley

On the Second day of Christmas
My network gave to me... a night off...you can only take so much spinach dip.

One of the early ideas was a “Big Ideas Festival” a place where big thinkers and dreamers could come together to roll out and discuss the next big ideas about cities, the environment, talent, culture and other topics that are important today and will be vital to us in the future.  One smart executive, when presented with this idea, suggested we should have a “Doers Conference”.  Doers and Dreamers....rings a bell somehow. 

A “Doers Conference”...why not?  Why not bring together the best “doers” in Halifax, present them with our best community ideas and then form the teams, arrange the financing, build the support and get things done.  Santa always seemed more of a doer to me.

No more explanation necessary.

 

Fred Morley is the Executive Vice President and Chief Economist at the Greater Halifax Partnership.

Fred's Third Day of Christmas: Attracting the World's Smartest Young Talent

By Fred Morley

On the Third day of Christmas
My network gave to me... the EduNova Christmas Party. 

EduNova is a Nova Scotia cooperative founded to promote international education in Nova Scotia.  Given the numbers of university students flowing into Nova Scotia these days, I’d say Ava and her team are being very successful.  Almost 10% of enrolments in Atlantic universities are international students.

Ok, I didn’t get to this reception either.  Again something called me to City Hall.   It would have been fun to get to the EduNova reception to see their new offices on Barrington St.  It’s great to see a few organizations taking up space in historic buildings in downtown Halifax.  We need more organizations like EduNova with the vision to see themselves in this kind of office space in the core.

This leads me to the next idea, universities as economic drivers in communities.  Now this idea isn’t exactly new but I don’t think we’ve realized the full potential of this in Nova Scotia.  In this province, universities directly and indirectly account for $1.2 billion in GDP each year, employ about  19,000 people and generate about $864 million in annual income and generate about $220 million in taxes.  Talk about the Christmas gift that keeps on giving. 

Universities are not only big economic generators in communities they are also centres of research and development and when they get it right, they also facilitate innovation and commercialization that helps drive business growth.  They are also talent magnets.  What other kind of organization attracts the world’s smartest young talent, integrates them into our community, and gives them marketable skills.  

All we have to do as a community is keep them. 

The Greater Halifax Partnership sees this as a real opportunity and has been driving some success through our International MBA Student Connector Program.  We would love to expand our connector efforts to all students in Halifax if we could find the right partner......Hello?  Idea alert... You don’t need to have Rudolph’s bright red nose to see that hanging on to new grads is probably a good idea.

 

Fred Morley is the Executive Vice President and Chief Economist at the Greater Halifax Partnership.

Fred's Fourth Day of Christmas: The Research-led Economy

By Fred Morley

On the Fourth day of Christmas
My network gave to me... the DND Christmas Party

The Christmas reception hosted by the Commander Joint Task Force Atlantic and the Commanders of Land Force Atlantic Area and Air Component Coordination Element Atlantic was held at the Bridge, at Juno Tower at CFB Halifax.  The reception area of the Bridge provides one of the most commanding and panoramic views of Halifax of any building in the city.  This was a good group.  I would mention a few attendees but that would be name dropping and besides I don’t have clearance.

Lots of ideas at this event, including the regular stream of ideas around how to improve urban transit in Halifax.  I’ve heard great ideas on this from everyone from Navy captains to neurosurgeons.  Most involve steel wheel vs. rubber tire transport and many involve creative use of the CN rail cut running around from the Westend around to the Southend of the peninsula.  Lots of civic engagement on this.

But tonight’s big idea connects to the Navy, the ocean and the big research capability in Halifax.  Why not build the Halifax Research Horseshoe: An International Scale Concentration of Applied Research in University, Defense and Government Labs.

Halifax needs to build on its considerable research base. This is the best way to recession-proof our economy and build the high value companies and the high wage jobs we want.  Other cities and nations have figured this out.  It’s time for us to think this through.

Developing countries around the world recognize the virtue of research concentration.  China is on the verge of overtaking both America and the EU in the quantity of its scientists and both Japan and South Korea are leading the US in R&D spending per person. China is rapidly catching up.  Asia will soon be the dominant continent in R&D, surpassing Europe and North America. 

Economic growth based on R&D passes the test of sustainability and durability.  Just look at the cities that have prospered in the United States during the recession of 2008-09.  Areas like Raleigh-Durham, Salt Lake City, Northern Virginia and a few other high growth areas have one thing in common.  They are research-led economies.  

Why not take that approach in our city.  We have six universities in Halifax. Dalhousie is one of the great research universities in the world and attracting over $100 million in research funding each year.  We have a significant concentration of federal labs including:  Defence R&D Canada – Atlantic, Atlantic Food and Horticulture Research Centre nearby in Kentville, the world famous Bedford Institute of Oceanography, National Research Council Canada institute for Marine Biosciences, Natural Resources Canada, Geological Survey of Canada – Atlantic, and the Halifax RCMP Laboratory of Forensic Science and Identification Services.  

One of the oldest and largest science parks in North America, The Research Triangle Park, was begun in the 1950s and was built on a concentration of universities and knowledge workers not that different from our own.  It now has 170 companies employing over 42,000 full-time knowledge workers and an estimated 10,000 contract employees. Why not start now and build our very own research concentration here in Halifax.  But let’s not do a research triangle…let's try a horseshoe shape that follows the research presence around Halifax harbour…..for luck.

Fred Morley is the Executive Vice President and Chief Economist at the Greater Halifax Partnership.

Fred's Fifth Day of Christmas: Competitors working together

By Fred Morley

On the Fifth day of Christmas
My network gave to me... the CORDA Christmas Party.

The Colchester Regional Development Agency Holiday Open House in Truro always brings together all the movers and shakers in central Nova Scotia.  Now I didn’t actually get to this one because I was called to city council for something on the convention centre.  However, it’s always a pleasure talking the great folks at CORDA.  The team at CORDA has a great reputation for idea generation and innovative implementation.  They’ve been a great partner on a number of joint projects in recent years, like the Halifax-Moncton Growth Corridor, the Central Nova Scotia Growth Alliance Asset Mapping, and others.

Had I been able to get there I’m sure we would have been talking about the potential for greater regional partnership involving the counties surrounding Halifax.  Regional Development alliances or partnerships are becoming increasingly common in both North America and Europe as communities scramble to find new ways to attract, keep and grow business. Smart regions recognize that business needs vary and having a range of business options and value propositions within a region is a competitive advantage.  Smaller communities also understand that associating their community with a known brand can put them on the business radar.

Successful regional partnerships involve cities joining forces with surrounding communities to market their region internationally.  It means sharing best practices, effort and success.  Regional partnerships recognize that the assets that communities need for success are not confined to one city or town and that scope of economic regions don’t often coincide with political boundaries.  Partners in a regional alliance believe that by working together they can help every part of a region grow. Maybe it’s time to think of a new big idea, a new dedicated partnership focused on tapping the economic potential of the already growing communities of central Nova Scotia.

Imagine, competitors working together to help grow their communities and their province. 

Must be Christmas.

Fred Morley is the Executive Vice President and Chief Economist at the Greater Halifax Partnership.

Fred's Sixth Day of Christmas: Halifax is a Hub City

By Fred Morley

On the sixth day of Christmas
My network gave to me... the AAAE Christmas Party

The Atlantic Association of Applied Economists Annual Christmas Party featured speakers from the Parliamentary Budget Office talking about the 2010 Economic and Fiscal Assessment.  The presentation was pretty riveting stuff…at least for us economists.

Ideas raised by AAAE colleagues always have a basis in economic reality and are always eminently practical.  This must seem annoying to some.  Some attending raised a new idea that is building momentum, that Halifax is a Hub City and important to all of Nova Scotia.  Where have I heard that before? 

Cities and in particular “Hub Cities” have an important role in driving economic growth around the world.  After all, the world is urbanizing rapidly.  Last year, for the first time, more people lived in cities than in rural areas. Halifax is Atlantic Canada's economic hub and has been identified by the Conference Board of Canada as one of only nine Canadian hub cities. This research identified hub cities as vital to driving economic growth in their province and, in the case of Halifax, the whole Atlantic Region.

Halifax will have half of Nova Scotia’s population within three or four years.  It already represents half of economic activity.  Halifax is more important to Nova Scotia than Toronto is to Ontario or Montreal is to Quebec. Every day, about 13,000 people drive to work in Halifax (HRM).  If this group of people were a municipality, it would be the third largest in Nova Scotia.  These workers take over half a billion dollars in income earned in Halifax back into their communities outside of HRM each year, generating millions in local spending and taxes for local governments.  That’s just one of the things Hub Cities do.

Economic thinkers like Beale and Savoie (neither were at this particular session) seem to feel that Halifax needs to take on its natural role as the economic driver of the province.  This means making strategic investments in the Hub like the new convention centre, the Halifax gateway, a vibrant regional centre and others. 

Clearly we need to focus on the big idea that Halifax can be Nova Scotia’s Hub City and a main economic driver, not because it benefits Halifax—but because it benefits the whole province. Wishful thinking or visions of sugar plums can’t drive the economy of Nova Scotia.  Only real economic engines can do that.

Fred Morley is the Executive Vice President and Chief Economist at the Greater Halifax Partnership.

The Convention Centre is an economic spark for our city, province and region

By Fred Morley:

I believe that the convention centre project and multi-use development is the economic spark that can secure the future of our capital district as the economic and cultural heart of our province and, indeed, Atlantic Canada. 

The project will have a big impact on our city and region. Through job creation, increased tax revenues for every level of government, spin-off impacts and new inward investment and opportunity for business creation and expansion, this project will have short and long-term benefits for the entire Atlantic region.

A valid question to ask is, why, if living in Yarmouth or Amherst or Sydney should I care about this investment? The answer is that this is an investment in our entire province. Every new convention we can attract is an opportunity to expose new audiences to our competitive business climate, local products, diverse research base and dynamic post-secondary landscape. Every new visitor is a potential migrant, investor or at the very least, a return visitor.  To fully understand the investment in a convention centre, we need to consider the full return, including financial and non-financial measures.

A number of economic impact studies have been done on the convention centre.  Each has been more accurate as the cost numbers and delegate projections have firmed up.  The Province of Nova Scotia conservatively estimates construction impacts from the convention centre alone of 1,700 jobs and $9.5 million in provincial tax revenues, early estimates of municipal taxes start at about $4 million a year. Moving ahead with the whole project including the hotel and office buildings will easily double or triple these impacts. 

The Gardner Pinfold July study estimates that the new convention centre will generate over 27,000 jobs (direct plus spin-off) and over $170 million in provincial and federal tax revenues over the first 10 years of operation. The Halifax Regional Municipality will also benefit from incremental commercial tax revenue from the increased value of properties and businesses in the vicinity of the new development. When you project the full return over a 25 year period, it is clear that the benefits generated by the convention centre are well worth the investment.

This kind of development can act as a spark for development in the whole downtown.  With too much of our downtown vacant and many projects stalled, this spark is badly needed.  In every jurisdiction where I have examined this type of government investment, it tends to be magnified three to five times by new private sector activity. We will see return in the form of future growth with new construction, new businesses and new investors. Right now, 20% of our capital’s core – the hub of Atlantic Canada – sits vacant. We now have more vacant lots than we had a hundred years ago, with the chain link fence becoming the fastest growing structure in the core of our community.  The convention centre and multi-use development will start to reverse this trend and reaffirm our leadership position as the economic engine of the Atlantic region.

In this community we want to create and nurture an environment where a smart economy can flourish, a place that provides our young minds with post-graduation opportunities and keeps the next generation of scientists, doctors, financial professionals and yes…even young economists connected to their communities. To do that, we need to attract and connect the broadest spectrum of industry knowledge and leaders to Nova Scotia. Economic and professional development is in fact the primary reasons why the meetings and conventions industry exists. Approached strategically, a new convention centre can contribute to the overall economic growth strategy for Nova Scotia.

A healthy province needs a healthy heart. There is no doubt that Nova Scotia is faced with economic challenges and tough decisions. But the reality of our current situation shouldn’t prevent smart investments that deliver continuous return. In fact, our current situation demands exactly this kind of investment.  Leveraging private capital and funding from the three levels of government, the convention centre is the best chance we’ve had in a generation to re-energize our core, and in turn, our province.

The announcements by the provincial government and HRM Council to move forward with this project are a positive step for the region. The Greater Halifax Partnership fully endorses the convention centre development.  We believe in this project not just for what it will mean for the future of our city but because it will go a long way towards preserving our past.  We need this kind of development to generate the vibrancy and the foot traffic to the downtown that drive rents high enough to make preservation of older buildings a reality.  It’s time to do something that’s sometimes rare in Halifax.  It’s time to lead, to follow or to get out of the way.

We choose leadership.  We are taking our role as a Halifax Ambassador seriously and are currently pursuing two conferences through our network of association and business contacts for 2015.  Together with our partners, Destination Halifax, Trade Centre Limited, the business community and others, we will do our part to ensure that the new facility opens with plenty of conventions already on the books.  

We encourage you to join us in leadership. 

Fred Morley
Executive Vice President and Chief Economist
Greater Halifax Partnership

View Planes or Growth Corridors: It All Depends on Your Perspective

A few decades ago, Halifax City Council made a smart decision.  They decided that an important element of Halifax’s historic character...views from the Citadel, would be preserved.  So today we have 11 view planes, 9 which affect the downtown core.  At the same time, that group of civic leaders knew they also had a duty to preserve opportunities for growth in the downtown...so implicit in this decision was the preservation of 3 “growth corridors”… areas where new construction could occur consistent with the demands of a growing city and its increased need for downtown office space, hotels and residential options.

Most people in Halifax see the need for this kind of balance.  They get the need for balance between
preservation and allowing room for growth.  They get it that new development like the proposed new convention centre, the new library and other public and private investments bring the energy and density that downtowns need.  And we do need this energy boost.

We need some new energy…not just to secure our economic future but to secure our past...our heritage.  20% of the land in the heart of our city is now empty….more vacant lots than we had a hundred years ago as older buildings fall into decay and are demolished.  The chain link fence is the fastest growing structure in the core of our community. 

A healthy city needs a healthy heart.  More people on the street, both day and night, will create the foot traffic and density that will preserve heritage buildings. 

Problem is, there are a few people out there who are saying “I don’t get it.” That small group just don’t see the need for vibrancy and prosperity.  They don’t get it, despite all the evidence of the last 20 years, that stopping growth doesn’t preserve heritage.. it threatens it.  Perhaps it’s like that optical illusion, that picture of the old lady that can also be seen as a vibrant young woman.  A small minority of people, no matter how hard they look, just see the old lady. They don’t see both, no matter how hard they try.

 
So how big is the group that only sees old lady Halifax?   A couple of years ago, the Greater Halifax Partnership undertook a significant public opinion research piece focused on growth attitudes.  That research showed that only 4 percent of the people in HRM thought growth was a bad idea. Only 4% didn’t want change.  Only 4% saw all new development as a fundamentally bad idea.  Only 4% can’t see the young lady Halifax with a vibrant and prosperous future. 

Most people understand that the downtown needs view planes to help preserve our heritage and our character, those things that make us unique in the world.  They also understand that we need at least some growth corridors to secure our economic future.   The proposal for a new Convention Centre lies well within one of our few growth corridors.  It represents the best chance we have seen in quite a while to re-energize the down town while leveraging private capital and funding from three levels of government.   Right now, it’s our best opportunity to stop the hollowing out of our core, a problem faced by so many older cities in North America.

Not every city accepts this decline as inevitable.  Successful cities seem to understand and embrace change.  They tap into that change, using it to drive prosperity. Smart cities don’t resist growth, they use it to preserve and protect heritage.  Most people in Halifax see both visions....one the grand old lady, the other… the vibrant young woman with a prosperous future. 

Walt Disney once said “change is inevitable, but growth is optional”. It’s time to stop listening to the 4 percent who want an impossible freeze dried future.  It’s time to realize they don’t want a prosperous future because they just can’t see it. 

Can you see both?

Fred Morley is the Executive Vice President and Chief Economist for the Greater Halifax Partnership.

Share your thoughts with us.

The Greater Halifax Partnership is a catalyst for economic growth and confidence in Greater Halifax, the economic hub of Atlantic Canada.

A Sustainable, Greener Economy can Differentiate us in the Marketplace

As the planning gets underway for the renewal of the economic strategy for HRM I have heard talk that it may include a focus on development of a Green Economic Development Strategy. I think that this is important for the Greater Halifax Partnership and our business community. There are some pretty cool strategies out there, Toronto has one http://www.toronto.ca/business/green-economic-development.htm and so does Vancouver http://www.vancouvereconomic.com/page/green-economic-development and congratulations to both cities for moving these forward.  Halifax needs to show leadership as the economic hub of Atlantic Canada and set the pace in developing a focus on sustainability and green economic development.

In two weeks we will have the opportunity to build our knowledge in sustainable economic development through our work within the World Energy Cities Partnership (WECP) www.energycities.org. The WECP is an organization which Halifax has belonged to for almost a decade. The WECP is led by the Mayor’s of 15 of the world’s leading energy producing cities. On February 15, Stavanger Norway is hosting the first Academic Exchange between energy cities and their respective academic institutions.  The Greater Halifax Partnership will be attending along with the College of Sustainability at Dalhousie University – who better to have involved!

The WECP has been mainly a route to partnerships in petroleum-related activities. All the energy cities however are now meeting new challenges related to the environment, changes in the petroleum sector and the need to develop sustainable ways of producing and using energy.

We need to begin to think about a culture where we work to retain, grow and attract companies with green and sustainable philosophies. Being focused on green and sustainable strategies may be the differentiator that will set us apart from all the competition out in the marketplace. Many companies large and small want to do business with businesses and communities that are green and sustainable – the Walmart’s of the world have a lot of influence on suppliers to change their habits.

Halifax has a lot to offer and a unique offering – some of our companies are leading in the creation of renewable energies – such as Emera and Ocean Nutrition. As well, HRM is striving to be one of the greenest municipalities in Canada. 

As the economic development organization that connects all players together including business, government and education, we have a responsibility to ensure that we begin to build a plan now for a sustainable future economy. As the economic hub of Atlantic Canada we need to lead the way and be at the forefront of this challenge!

 

Nancy Phillips is the Director, Investment and Trade, for the Greater Halifax Partnership and Executive Director for the Halifax Gateway Council. 

Guest SmartCity Blog post: "And How Was Your Meal Tonight?"

Guest blog post:

As you finish your meal at most restaurants, the staff will ask you how your meal was. Standard operating procedure for them and it makes absolute sense...get feedback in case something went wrong and perhaps they might be able to fix it before you leave and spread the negative reviews. Additionally, not asking would be implying they didn’t care about the customer’s experience. Seems smart doesn’t it? Yet most business other than the hospitality industry forget to ask (or worse, forget to listen) “how they did and how they are doing”. By setting up a twitter search filter within their Twitter program and using Google Alerts, a business can take care of such issues. Not only does it give you a heads-up as to what your customers really think, but it shows that your company cares when you publicly and proactively take care of complaints.

Recently I rented a vehicle for a shoot. When we picked up the vehicle, they asked our plans and they upgraded the rental (at no additional charge) to a model that would better suit our needs. During the last part of the rental, however, the rear hatch failed and we had to do our loading and unloading through the passenger doors for a day- not a huge deal. Upon returning the vehicle, they asked how everything went and I explained it was great except for the hatch. They promptly gave us a day off our rental contract for the minor inconvenience. Fantastic! That afternoon, I tweeted about the experience and thanked the company using the "#" (also known as the hash tag) in front of the name. Within five minutes I had a direct tweet back from the company with a thank you.  Shocking!  I decided to do some research and discovered they were following their name in Twitter and actively responding to comments and complaint issues (and in the open!).  SMART!

A few days later, I received a call from my computer suppliers Customer Support.  Having dealt with their support before I was mildly curious as to why they were calling.  The conversation started by the rep asking me if I was happy with my system and if I had experienced any problems during the past year. Ah! Finally they were showing me they care (in the past dealing with them was like getting a root canal)! I went over the small issues I’ve had and the work-arounds (using posts from other users and not from the company's site) and expected to hear how they have some solution for me…To my dismay, the call quickly moved to a sales pitch for the extended warranty!  I emphatically told them I was not interested. We went back and forth and I explained how I didn’t need the $400 extended warranty at which point she went into full script mode for 3 minutes without letting me get a word in. I put the phone on hands free and went back to what I was doing before she called. Eventually she hung up. I twitted the experience expecting to get a response like I did from the rental company! Surely a computer company would be as or more advanced than a vehicle rental company! Nope. Nothing. Now what was supposed to increase this companies revenue has only succeeded in further frustrating a customer. FYI, a few days ago they called again…I explained they had already called me and I wasn’t interested….they hung up. Wow, not smart, but it appears that’s “standard operating procedure” for them!

Coincidently in the same week I sat down with friend for a beer. We started talking about my recent experiences with companies using Twitter as a customer support tool and he told me one of his experiences with his cellular supplier. He tweeted about being dissatisfied with a support call on his account….and know who contacted him back via Twitter offering help?  His cellular suppliers’ competition! Now that’s taking it to the next level.

It takes all of a few seconds to do a Twitter search and just a little longer to set up a Google Alert. Not following your brand and company on Twitter and via Google Alerts is the same as saying “I don’t care about what my customers experience with my company.” Why? You’re not listening to what they have to say about the experience! It would be the same as the waiter not asking how your meal was. So, on that note, how did you enjoy this blog today? Can I get you anything else?

SW

With over 25 years of award winning experience in television, film, video, marketing, communications, web, radio, print, and events, Scott Westerlaken has the ability to maintain focus on the big picture and offer a wide range of solutions appropriate to the clients message and budget. He has been recognized with dozens of awards in business, communications and film making from around the world. For the client, this means a truly unique balance of hands on technical knowledge and high level strategic experience that always leads to unique and creative solutions.

Read PHI Group's blog.

PHI Group has been an Investor in the Partnership since 2001.

The views and opinions expressed in this entry are those of the author alone, and may not necessarily reflect those of the Greater Halifax Partnership and those affiliated.

Halifax ended the year with an economic bang!

If you think the Halifax Economy is under-performing, it may be time to rethink.

Halifax ended the year with an economic bang.  First the labour force survey tells that we have done better than most other Canadian cities of any size in job creation.  Indeed this has been going on since the summer of 09 when Halifax posted net job gains of 9300 over the previous 12 month period. 

We’re number 1…. in employment creation

Then CIBC tells us that Halifax, helped along by big employment gains, is the top city in the country according to its metro monitor index.  In arriving at this CIBC looked at 9 economic variables ranging from population growth to non-residential building permits and all looked pretty good.  Population grew at a pace double the rate of the third quarter of 2007.  Employment grew by 3.1% in the third quarter, easily tops in the country.  The unemployment rate jumped, but in an environment of nation-leading job creation and fast population growth.   Business bankruptcies are in steady decline.  Other economic indicators were flat or negative, but compared to other cities we were still doing well. 

We’re number one…. In economic performance


And today, CFIB (Canadian Federation of Independent Business) released its December Business Barometer survey of small business across Canada.  Turns out Nova Scotia business are more confident than those in any other province in Canada except BC, who, by the way happen to be in pre-Olympic euphoria.  Indeed, the index shows that business confidence in Nova Scotia has been climbing steadily every month for the last year and is now at its highest point in more than 4 years.  

We’re number two…and still trying harder.

Halifax seems to be on a roll.  But even in these times nay-sayers are easy to unearth. Fact is though, we are coming out of recession with surging employment and growing business confidence.  No other City in Canada can claim this.  Few cities have our potential moving forward.  Few cities would pick this time to take a step back. 

2010 will be a telling year for Halifax and our economy.

Fred Morley is the Executive Vice President and Chief Economist at the Greater Halifax Partnership