SmartCity Blog

BMO: "Halifax has growth in its sails"

Nova Scotia has received another positive outlook on its economic future. BMO Capital Markets released a special report today on Halifax, and they see big things coming; more production, employment and housing starts.

Source: BMO Regional Close-up

In the short-term, preparatory work at Halifax Shipyard and major projects across the province should boost real GDP growth from 0.3% in 2011 to 2.3% in 2013. This is expected to ramp up by 2016, with over 12,000 jobs added and Halifax's unemployment rate dropping to 4%. Major employment growth is expected to trigger plenty of consumer demand, including housing starts and sales, and retail markets getting a boost. While a hot housing market generally means increased prices, housing remains relatively affordable in Halifax in comparison to other major cities and has room to grow.

Population growth has slowed but continues to be above national averages. Buoyed by international immigration, Nova Scotia continues to add to its population, although outflows to Alberta and other provinces present a cause for concern, particularly if those outflows are in skilled labour.

This brings us to the “what does this mean to me?” portion of this piece. First, BMO is urging Halifax businesses to get their share of capital available in the market to make the investments in people and equipment necessary to maximize growth. Furthermore, government programs are available to provide assistance in developing your workforce or for making capital investments.

Second, I urge you to take a look at the economic impact work that the Greater Halifax Partnership completed on the shipbuilding contract. The breadth and depth of a major project like this has significant impact in a large number of industries.

People typically focus on the direct beneficiaries (the Shipyard, metal workers, defence), however understanding how indirect and induced economic activity works should make a range of folks excited. A few examples:

• More businesses and greater activity means a need for accountants, IT companies, lawyers, banks and other professionals;
• More employment and wages lead to more spending within the local economy; that means more haircuts, dry cleaning, cars, houses, groceries and nights out at a restaurant or taking in a show.

So when considering how major projects in Nova Scotia are driving economic growth, consider whether this is the time for your business to take that next step even if you aren’t building a ship. Expansion within an expanding market makes a lot of sense, and our SmartBusiness team can help you understand what might be available to you and how you can take advantage. 

Author: David Fleming 

David is the Junior Economist and Project Development Coordinator at the Greater Halifax Partnership. He studied Economics and Philosophy at the University of Prince Edward Island, and has experience working with private, public and non-profit organizations. 

 

Growing in more ways than one

By Mike MacKenzie

Several proposed development projects and Halifax planning initiatives made the headlines last week. In case you missed it, here are some of the stories that show how Halifax is growing – in more ways than one.

Crombie REIT

Crombie Real Estate Investment Trust is positioning itself to take advantage of expected opportunities that stem from Irving’s $25B shipbuilding contract. The company has received inquiries from businesses interested in securing office space in Downtown Halifax, and Crombie says they are actively considering the possibility of adding more floors to their existing Scotia Square property to keep up with potential demand. All-in-all, Crombie says there’s potential to add up to one-million square feet of space to their existing property inventory.

Regional Plan Review

Halifax Regional Municipality has begun the initial phase of a five-year review for the city’s Regional Plan. According to Andy Fillmore, Project Manager - Urban Design, developers in the city currently face policy inconsistencies that can impede projects from taking hold. Fillmore says the review, which may include an update of the outdated policies, will revitalize downtown development and make it easier for Halifax to handle the expected growth resulting from the shipbuilding contract and offshore exploration.

Porter’s Lake Construction Boom

Porter’s Lake may soon see a huge construction boom of its own. Plans have been announced to build more than 600 homes over the next ten years in a massive project that’s expected to cost $160M. Seven Lakes Development, the group spearheading the project, says that while the development is large in scope they hope to build sustainable ‘low-impact’ homes that will leave the majority of the land undisturbed. They also plan to incorporate the existing community into the review process in an attempt to minimize the potential invasiveness of such a large project. Seven Lakes hopes that a development agreement can be reached in the fall, with construction beginning early next year.

So in case you missed it, you're now in the know. You can stay up-to-date on Halifax business news by subscribing to the daily newsfeed.     

 

Author: Mike MacKenzie

Mike is the Communications and Marketing Assistant with Greater Halifax Partnership, currently working as a Bachelor of Public Relations co-op student. A lover of all things communications and strategy related, Mike is often known to spend his free time analyzing the latest-and-greatest PR/advertising campaigns. As a relative newbie to the Halifax scene, he can also be seen strolling the streets of downtown looking for the next cool thing that the city has to offer.

Several proposed development projects and Halifax planning initiatives made the headlines last week. In case you missed it, here are some of the stories that show how Halifax is growing – in more ways than one.

Crombie REIT

Crombie Real Estate Investment Trust is positioning itself to take advantage of expected opportunities that stem from Irving’s $25B shipbuilding contract. The company has received inquiries from businesses interested in securing office space in Downtown Halifax, and Crombie says they are actively considering the possibility of adding more floors to their existing Scotia Square property to keep up with potential demand. All-in-all, Crombie says there’s potential to add up to one-million square feet of space to their existing property inventory.

Regional Plan Review

Halifax Regional Municipality has begun the initial phase of a five-year review for the city’s Regional Plan. According to Andy Fillmore, Project Manager for HRMbyDesign, developers in the city currently face policy inconsistencies that can impede projects from taking hold. Fillmore says the review, which may include an update of the outdated policies, will revitalize downtown development and make it easier for Halifax to handle the expected growth resulting from the shipbuilding contract and offshore exploration.

Porter’s Lake Construction Boom

Porter’s Lake may soon see a huge construction boom of its own. Plans have been announced to build more than 600 homes over the next ten years in a massive project that’s expected to cost $160M. Seven Lakes Development, the group spearheading the project, says that while the development is large in scope they hope to build sustainable ‘low-impact’ homes that will leave the majority of the land undisturbed. They also plan to incorporate the existing community into the review process in an attempt to minimize the potential invasiveness of such a large project. Seven Lakes hopes that a development agreement can be reached in the fall, with construction beginning early next year.

Ships Start Here: What’s Wrong With Finishing First?

By Fred Morley

As a leading proponent for strong provincial government action on the Halifax Shipyard bid for the National Shipbuilding Procurement Strategy (NSPS), the Partnership recommended to government that there was an urgent need for an economic impact analysis and a high quality communications campaign.  We did the research and government took on the communications side.  To the government’s credit, this communications effort was carried out with exactly the urgency and effectiveness needed to build momentum and confidence around this game changing opportunity.

Even before the campaign, we knew three things. 

1. We knew that in a fair fight for the NSPS, the quality of the work and the leadership at the Halifax Shipyard would win the day.
2. We knew that despite weathering the recession well, Halifax and Nova Scotia businesses and consumers needed a jolt of confidence to begin spending and investing in our province.
3. We knew that once we won, maximizing the benefits to Nova Scotia and Halifax meant that our business community and our residents had to get excited about the project and its potential for them, and be ready to seize the opportunity.

The Partnership and our investors put time, effort and money into Ships Start Here for these very important reasons.  It was effort well spent and it happened quickly due to the business like nimbleness of NSBI.

Those of us that worked on the innovative NSBI concept more than a decade ago, recognized that Nova Scotia could not succeed in the competitive business development world without the nimbleness and attitude of a business approach.  NSBI is governed and managed by a private sector board of directors like any publicly owned business.  It was conceived to respond with the flexibility and speed of a business, to meet business needs and opportunities. 

Some of us with long economic development memories remember the 1990s barriers to action that hurt government’s ability to respond to competitive opportunities.  In the good old days, good deals died because ministerial approval was needed to buy a plane ticket or to rent a car to go and meet with a prospective investor. Those of us who lived through that environment knew that we had to change our approach to compete.  We had to behave differently if we wanted to win.  And so NSBI was created.  With NSPS and Ships Start Here, they did exactly what they were created to do….get aggressive, behave like a business, make things happen and ensure Nova Scotia finishes first in any competition we enter. 

So, we needed urgent and effective communications based on undisputable facts. The Partnership played our part with our timely analysis of NSPS economic impacts.  This information needed to be communicated aggressively.  NSBI should be congratulated for their role in making the communications effort successful. 

We finished first on NSPS.  As character building as finishing last all the time was in the old days…I really don’t want to go back there.

 

Author: Fred Morley

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

Halifax Impresses Economic Experts

By: David Fleming

Halifax continues to receive positive endorsements from Canada’s economic experts.

On the heels of RBC’s 2013 provincial forecast upgrade (with Halifax being the epicentre of this growth) and Halifax’s unemployment rate dropping to its lowest rate since December 2008, CIBC has ranked Halifax 4^th (up from 7^th) out of 25 cities in its Metropolitan Economic Activity Index. While the city doesn’t lead any of the categories, it has a steady enough performance in all of them to boost its ranking.

In particular, the labour market has improved, boosting employment levels to their highest levels in history. This employment growth has been predominantly full-time work too, as the percentage of total employment that is full-time has crept above 80%. Furthermore, increases in housing starts and MLS sales show that the housing market in Halifax is seeing lots of action.

What is the takeaway from all of this good news? For me, it’s feeling confident about our economy. We saw stable growth throughout the recession, a feat few others can attest to. Now, we’re seeing more and more reasons to be confident in our economic future.

Why is confidence so important? Confidence is the lifeblood of the economy. With it, businesses invest and become more productive and consumers spend more liberally. There are a number of reasons to be confident in Nova Scotia’s short and long-term prospects. From Halifax Shipyard being Canada’s Shipbuilders for the next 30 years, to Shell bidding nearly $1 billion on exploration drilling off of southwest Nova Scotia, there are big things on the horizon. In the short term, the economy continues to grow, our population is on the rise and more people are finding jobs every day...and, in the enduring words of Randy Bachman, “you ain’t seen nothing yet.” 

 

Author: David Fleming

 David is the Junior Economist and Project Development Coordinator at the Greater Halifax Partnership. He studied Economics and Philosophy at the University of Prince Edward Island, and has experience working with private, public and non-profit organizations.

Economic development matters more than ever

(Originally published in the January/February 2012 edition of Business Voice) 

One of the things most commented on since Irving Shipbuilding won the right to build Canada’s next generation of combat vessels is the unprecedented level of support, enthusiasm and commitment that burst out in every part of our city and province.

As business people, politicians, civil servants, workers, and citizens, we saw – and felt – firsthand what confidence – real confidence – can do and just how strong a motivator self-belief can be. 

So, as Irving negotiates the fine details of the contract with the federal government, we at the Partnership are focusing on how to make the most of this new-found confidence as we identify and capture future opportunities to grow.

And, make no mistake; there are sound reasons to keep a beady eye on the future.  Economies from around the world are suffering the jitters – again. Growth forecasts in Canada and abroad is single digit at best.   We recognize that we have significant fiscal challenges ahead which must be met if we are to maintain the standard of living we enjoy today.

And this is why we are redoubling our efforts to put in place HRM’s Five Year Economic Strategy.  This plan was built – like the shipbuilding effort – by tapping into an equally unprecedented level of collaboration and alignment between the private and public sectors. 

Measuring Our Progress

The Halifax Index is how we will measure the economic progress of the region as well as the progress and impact of the Economic Strategy.  The Index, to be launched in May 2012, will provide a yearly overview of our challenges, make suggestions for action and inform of any necessary modifications to the Economic Strategy’s Action Plans. 

The Halifax Index is not just one number that tells us how we’ve fared in the past year. It will contain a comprehensive set of key indicators - people, business, culture, environment, activity and quality of place - that make Halifax what it is and make us who we are as citizens.  The Index will provide deeper insight into what’s happening in our community than anything currently available in any other city in Canada.

The Power of Partnership

We are convinced that rewards of partnership and collaboration will become increasingly evident as we implement our economic strategy and grow the confidence we have in our collective future.   

I hope we continue – at every level of our community and our province – to work together and to wring out every ounce of opportunity that this great city has to offer our people and the world.

For more information on the Strategy and implementation visit: agreaterhalifax.com. 

 

Paul A. Kent is the President and CEO of the Greater Halifax Partnership

 

Arts will thrive in wake of Ships

On behalf of the staff, many volunteers and legions of artists that we celebrate each year throughout Halifax and the province, the Greater Halifax Arts Coalition (GHAC) would like to congratulate Irving Shipbuilding and its partners, including the province of Nova Scotia, on the successful bid to Build Ships Here!

GHAC is made up of the leaders of 18 professional arts organizations that are dedicated to supporting our community through the presentation of world-class events, bringing the artistic culture of our region to audiences around the world and to creating a vibrant environment to live, work and play.

We recognize that a strong economy is essential to ensuring that those who breathe creative life into communities throughout the region are able to thrive and flourish. The spin-off benefits of this historic contract will impact suppliers, fabricators, other business and the lives of so many around the region – including those in the Arts.

Now, as we all start to gear up for growth and innovation, we see a prominent role for the professional arts community and look forward to playing our part. Nova Scotia’s artists create great work and inspire creativity, innovation, and excellence. Our theatre companies travel the world. Our musicians are broadcast across the country. Our audiences, whether they are long-time Nova Scotian residents or newcomers to our communities, experience a sense of pride and social cohesion as they join us in celebrating the diverse and vibrant lifestyle Nova Scotia has to offer.

Winning this contract means we can look forward to increases in population, disposable income and prosperity throughout the region. We look forward to the future, and working together to see our wonderful city and province and the entire Atlantic region grow and prosper.

Members of the Greater Halifax Arts Coalition:

• Christian Barry, 2b Theatre Company
• Gregor Ash, Atlantic Film Festival Association
• Brookes Diamond, Brookes Diamond Productions
• Heather McGean, Dalhousie Centre for Arts
• Laurie Gillis, Debut Atlantic
• Charlie Rhindress, Eastern Front Theatre
• Jonny Stevens, Halifax Pop Explosion
• Heather Gibson, JazzEast
• Paul Caskey, Live Art Dance
• Jim Morrow, Mermaid Theatre
• Sara Coffin, Mocean Dance
• Scott Long, Music Nova Scotia
• Amy Melmock, Neptune Theatre
• Maggie Stewart, Onelight Theatre
• Elizabeth Murphy, Shakespeare By The Sea
• Erika Beatty, Symphony Nova Scotia
• Christopher Shore, Theatre Nova Scotia
• Susan Leblanc Crawford, Zuppa Theatre

 

About GHAC:

Halifax is a hub for performing arts and culture in the province, and our professional arts organizations are leaders in Atlantic Canada. The 18 professional arts groups in GHAC employ more than 900 people, engage another 2500 volunteers, and perform for more than 933,000 audience member every year. Our cumulative annual budgets are over $22 million, and almost all of this is spent in Nova Scotia.

Other links:

• Ships Start Here: Next 30 by Erika Beatty