1

EDGSJ REPORT TO THE COMMUNITY

Dear GSJ

2018Report on the

economyGrowing our region using strategic insights on turbulent numbers.

2019 CONTEXT

Q&A with

Ron Gaudet

INSIDE

letter

2

edgsj.com/jenna

ENNA General Manager, Irving WallboardHere I have the perfect mix of opportunity, family, and lifestyle.”Ask Jenna what it’s like to live and work in Saint John, New Brunswick:jenna@edgsj.com

J“

1

3

ASK GSJ ad campaign locations 1: (Previous page) Water Street, Saint John. 2: Gondola Point Beach, Quispamsis. 3: Irish River #1 Covered Bridge, St. Martins. 4: On the green at the Westfield Golf & Country Club, Grand Bay-Westfield. 5: Rothesay Yacht Club, Rothesay. 6: Queen Square North, Saint John.

2 3 4 5 6

Dear GSJTABLE OF CONTENTS

Our Partners .....6Letter from the CEO .....8Letter from the Chair .....9Definitions ...10Report on the Economy ...122018 Summary ...242018 At-a-Glance ...252018 Financials ...262019 Context ...28Focus Areas ...31 > Workforce Development ...32 > Business Investment & Innovation ...34 > Entrepreneur Development ...36 > Marketing GSJ ...38Acknowledgements ...40Looking Forward ...41

CLICKABLE INDEXFEATURES

2018 Report on the EconomyPAGE 12

Focus Areas

ECONOMIC DEVELOPMENTPLAN • 2019-2021

PAGE 31-39

how we’re doing

Our Partners PAGE 6

where we fit

our context

Next article Next page Table of contents

Previous article Previous page

NAVIGATION CONTROLSUse these icons to easily move through the document.

4

40 King Street Saint John NB E2L 1G3506.658.2877info@edgsj.comedgsj.com

STAFF

Ron Gaudet CEO

Janet Scott Director, Business and Community Development

Ian McCoy Director, Investment Attraction

Janice Pearson Director, Finance & Administration

Alison Ziemianski Marketing & Communications Manager

Sue Crozier Executive Assistant to Ron Gaudet, CEO

Mark Breen Economic Development Officer – Innovation

Matt George Program Director, The Hive

Michele Lodge Project Coordinator, Emerging Entrepreneurs

Dakota Lutes Entrepreneur Development Officer

Lucas Loughead Entrepreneur Development Coordinator

Romain Torrecilla Workforce Project Coordinator, Provincial Jobs Pilot Project

Julia Skidan Workforce Attraction & Retention Officer

BOARD OF DIRECTORS

Andrew Oland President & CEO Moosehead Breweries Board Chair

Eric Poirier Senior Manager, Field Operations Bell Aliant

Louis Labelle Director of Delivered Energy Irving Oil

Danielle Timmons Partner Aquila Tours

David Irving General Manager Irving Equipment Limited

Andy McPherson Strategic Planning & Operational Consultant

Cathy Simpson CEO TechImpact

Jennifer Arsenault CFO Origins Natural Learning Childcare

Amy Lynn Patterson Vice President, Commercial Financial Services RBC Royal Bank

Joel Richardson Vice President, Public Relations Cooke

Ryan Mitchell Vice President Saint John Energy

5

VISION

Consistent, long-term economic growth for the Greater Saint John region.

WORKFORCE DEVELOPMENT Attract and retain talent to support the growth of our existing companies and attract new companies to our region.

BUSINESS INVESTMENT & INNOVATION Promote the value proposition for investment and support companies in being globally competitive.

ENTREPRENEUR DEVELOPMENT Build the Saint John entrepreneurial ecosystem with a focus on scalable start-ups.

MARKETING GREATER SAINT JOHN Tell the Greater Saint John story to attract people and investment, and support the growth of our companies.

STRATEGIC GOALS 2019 – 2021

INCREASE IN LABOUR FORCE 2.5 percent increase per year (from 66,600 to 71,720)

INCREASE IN GDP 0.5 percent greater than provincial GDP (average 1 percent)

INCREASE IN CONSUMER CONFIDENCE by 1 index point per year (average of 99.1)

INCREASE IN EMPLOYMENT 2.5 percent increase per year (from 62,500 to 67,305)

FOCUS AREAS

6

Economic development is the work required to create economic growth. We are the region’s economic development agency – and as such we recognize that a big part of that job lies with us. It is our job to understand the trends and influences that are driving economic growth or holding it back – and to take appropriate action on behalf of the citizens of Greater Saint John.

But we are not alone.

We fight to move the needle on economic growth for the benefit of every single employer in the region, and every single citizen who chooses to live and work here, by working with a wide variety of organizations and individuals.

Our funders and partners make it all possible.

OUR PARTNERS

MUNICIPALITIES

STRATEGIC PARTNERS

GOVERNMENT PARTNERS

7

edgsj.com/alli

LLI Founder and CEO of BioHuntress Therapeutics Inc. and Senior

Scientist at the Reiman Cancer Research Lab, UNB Saint JohnIn beautiful, peaceful Saint John, I have great people and inspiring universities that give me a sense of belonging!”Ask Alli what it’s like to live and work in Saint John, New Brunswick:alli@edgsj.com

“

Location: Gondola Point Beach in Quispamsis, New BrunswickDistance from Uptown: 26 km / 21 minutes drivingStyling: wardrobe – Boutique Zekara; accessories – Baubles

8

Dear GSJ is the perfect name for this document. Yes, it is an Annual Report – a report to the community and stakeholders on how the economy is faring and how and what EDGSJ is doing.

But, most importantly, it is a letter.

It is a letter to every resident of Greater Saint John, describing economic development in simple terms: what is really going on in our economy, what initiatives are underway and where we most need to lean into challenges and opportunities.

I have had the pleasure of working in the field of economic development for many years, in both large and small communities. The challenges have been different due to local realities; however, the consistency has been in every community’s desire to be a great place to live, with a diversified economic base, opportunities for employment and growth, and a healthy balance between economic and social development.

I have learned, while there are no silver bullet solutions or quick fixes, that there are common threads to success.

The first thread is vision. It takes courage, strategy and optimism to imagine the possibilities and to develop an evolving value proposition for a community. It means that as a community we have one foot in the realism of today, and the other foot in the possibilities of tomorrow.

The second thread is teamwork. Successful communities come together to collaborate and compromise and prioritize. Achievable goals are set, goodwill is fostered, and decisions made with the vision in mind.

The third thread is commitment. It takes faith, consistency and drive to achieve a vision over the long term. I’ve said it before and I’ll say it again: economic development is a marathon, not a sprint.

But here’s the thing about these threads.

If there are just a few people hanging on to them as we walk this path, each thread is desperately fragile and overly long. On the other hand, if the whole community grabs hold, the threads become strong, durable, and comparatively short.

The latter scenario is our wish for Greater Saint John.

We believe in this community and the people who live here.

It is a privilege to work together with our staff, our board, our funders, our partners and other collaborators to create prosperity through consistent, long-term economic growth for Greater Saint John.

We are on the right track. All we have to do is grab hold.

LETTER FROM THE CEO

We believe in this community and the people who live here.Ron Gaudet | EDGSJ CEO

9

Greater Saint John is a special place. My family relocated their brewery business here after the Halifax Explosion in 1917. As a member of the sixth generation of Olands to work for the family enterprise, I can say that the foundation upon which our business is built is resilience.

Every long-term project – even a business that is 152 years old – has its struggles and its successes. It is resilience that allows it to weather those highs and lows and see goals met over time.

Like other business owners, my family has taken strategic steps to ensure our company’s resilience. One of the most effective steps we have taken is to help ensure the strength of the community around us. Like so many others, our family is deeply committed to the success of our community.

Now that I have settled into my role as chair, there are two things I know for sure: the ingredients for success are here, and the most important ingredient is you – all of us together!

In 2018, the staff and Board at EDGSJ took the time to assess our current reality to determine the areas we needed to focus on for a better tomorrow and building a spirit of collaboration.

Achieving our vision for a prosperous Greater Saint John region depends upon a community of individuals, volunteers, business owners, politicians, and workers that are all fully aligned behind the long-term effort and the collaboration required to get the job done.

Together we can do great things.

The brewery you see on Main Street West today did not get there overnight. It took generations of effort. Economic development happens the same way. Yes, we need to remain committed to growth but more than that – we need to be resilient.

I know I speak for the rest of our Board members when I say – we hope you will join us on this journey.

LETTER FROM THE CHAIR

The ingredients for success are here, & the most important ingredient is you.Andrew Oland | EDGSJ Chairperson

10

DEFINITIONS

Let’s demystify some of the jargon involved in discussions about economic development. After all, a common vocabulary is part of the foundation on which collaboration is built.

CAPACITY BUILDINGCapacity building is ensuring you have the tools, skills and other resources required to achieve growth objectives. It is an “if you build it, they will come” idea. From a business perspective, that could mean sending staff for training, or buying a new piece of equipment. From a community perspective, that could mean adding a new program to the community college, or it could mean investing in fibre upgrades to the communications system.

CONSUMER CONFIDENCEIn Canada, consumer confidence is measured by the Conference Board of Canada using a survey of Canadian households. It asks four questions about the family’s feelings of financial security, about job prospects, and their likelihood to make a large purchase in the near term. When consumer confidence is high, consumers make more purchases.

ECONOMIC DEVELOPMENT Economic development is a long-term process that considers not just economic improvements, but improvements in life expectancy, poverty rate, quality of life, and more.

GROSS DOMESTIC PRODUCTGross domestic product, or GDP, is the total dollar value of the goods and services produced by a specific jurisdiction (usually a country or province), over a specific period of time. It is a common tool used to describe the size and health (expansion or contraction) of an economy.

INVESTMENT ATTRACTIONWhen we refer to investment attraction, we are talking about the expansion or relocation of an existing business to our region.

LABOUR MARKET

The availability of employment and labour, from a supply and demand perspective.

WORKFORCEThe number of people engaged in or available for work, either in a geographical region or in a particular company or industry.

C

E

G

I

L

IS F O R. . .

IS F O R. . .

IS F O R. . .

IS F O R. . .

IS F O R. . .

WIS F O R. . .

11

edgsj.com/james

AMES Engineering Technologist and Hydrographer, Port Saint JohnSaint John has big city qualities and experiences but still maintains that small town feel.”Ask James what it’s like to live and work in Saint John, New Brunswick:james@edgsj.com

J“

Location: the Village of St. Martins, New BrunswickDistance to Uptown: 57 km / 47 minutes drivingStyling: wardrobe – Pristine

12

REPORT ON THE

ECONOMYA greater Saint John perspective

2018

13

COMMENTARY

For this executive summary we have taken the liberty of distilling it down using the following Q&A.

Parts of this report are positive, and parts are negative. How should we feel about that?

We believe Saint John has significant growth potential but there are a few issues we need to work on; such as helping ensure we have workers for the industries that need them. We also need to see more business investment in our community. EDGSJ and our partners are working hard to foster the conditions for a new wave of business investment in our region.

Where are we most vulnerable?

If our business services centres, information technology firms, manufacturers, trucking firms, hotels, and restaurants can’t find workers, this will hurt our growth potential. This is why, in partnership with federal, provincial and municipal stakeholders we led the Filling Unfilled Jobs initiative to target specific companies with considerable employment needs, working with them to craft a short and long-term plan for their workforce.

If you read one thing in the next ten pages, make it this: If we are to improve our region’s economy, we must: • grow our population • expand our labour force • secure new private sector investment• champion the region as a great place to live and work• collaborate to get things done Just like an investment portfolio, there are economic development projects that generate short-term results, and there are economic development projects that generate long-term results. But how do we decide what to do, and when to do it?

In 2018 we developed a three-year economic development plan, which identified four focus areas for our organization. This priority-setting process was based on research and strategic thinking about how to deploy the resources we have in the most effective manner. It has already been an enormously beneficial tool.

But the economy is a living thing. It evolves over time. Sometimes quickly, sometimes slowly. We can’t simply work our plan until 2021 without keeping tabs on what’s happening around us and making adjustments as required.

As such we are pleased to present our first annual Report on the Economy. It is a fascinating snapshot of the Greater Saint John economy that we will use to guide our work, and we share it today in hopes that it builds a greater understanding of the context in which we’re operating, shining a light on our challenges, our advantages, and our priority items going forward.

Q

A

Q

A

14

Where are we strongest?

The Saint John region is a global economy. We have strong international connections and rely on trade more than most other Canadian cities:

• Forest products exports are shipped to more than 20 countries. • Potash ships globally. • IT firms are doing work across the United States and around the world. • Aquaculture exports from the region are shipped around the world. • Refined petroleum products produced in Saint John are a key source of energy for states from Maine all the way to Florida. • LNG from Saint John is a critical source of energy for New England during the winter months. • Beer produced in Saint John is consumed across Canada and exported internationally. • Cruise ships frequent the city and expose a global audience to New Brunswick. • Tourism brings visitors here from across Canada and around the world. • Immigrants are helping to grow the population.

While it is difficult to get a precise number, we estimate that nearly $12 billion worth of interprovincial and international exports leave Saint John each year.

This is a story we don’t tell enough.

Are there any initiatives that could lead to quick wins that improve our economic picture?

Connecting international students and newcomers to meaningful employment opportunities will move the needle for us in the short term.

Highly skilled international students are studying in our region, and we should take steps to ensure they have the kind of opportunities available to them that will make staying here after they graduate an attractive option. We also have highly skilled newcomers here – and it is critically important that we support them as they settle into our community, and help them identify the kind of opportunities that will ensure they put down roots and stay.

What is something we should be doing now, that will pay dividends in the future?

Collectively, we should be doing a better job of telling our story. We have a global economy, we have competitive business costs, skilled workers, and a growing vibrant urban core.

We are buckling down to address some challenges, yes, but as we do that we must also become champions for our region. If we do both things, over the long term, we will see our talent pipeline grow (more students, more immigrants, more New Brunswickers returning home) and increased investment in key industries such as tourism, IT, business services and manufacturing, not to mention energy. This is how we will put the region back on a strong growth trajectory.

We’d like to thank economist David Campbell for his support in developing this report, and our partners in regional economic development, including:

for their contributions of data and commentary. Your generosity has helped us tell a more complete story about the region’s economic wellbeing.

Q

A

Q

A

Q

A

THANKYOU

• Discover Saint John • Develop Saint John • Port Saint John

• UNB • NBCC • Saint John Airport

15

INTRODUCTION

The purpose of this first annual Report on the Economy is to provide a comprehensive and easy-to-understand assessment of the state of the regional economy. The pages that follow will help governments, industry and community groups as they make choices and investments designed to foster a strong economy and an excellent quality of life for residents.

There is no doubt the Saint John economy is facing economic and demographic challenges.

• In 2018, the economy expanded by an estimated 1.5 percent, which was down from 2.3 percent growth in 2017.

• That being said, economic growth in both 2017 and 2018 was much better than the annual average of only 0.4 percent growth between 2009 and 2016.

Weak private sector investment and the tightening labour market are two factors holding back Greater Saint John’s economic potential.

• The total value of building permits issued across the Saint John Census Metropolitan Area (CMA) decreased 36 percent in 2018 after a solid year in 2017. The drop was due to a reduction in commercial investment compared to the previous year, which included Home Office construction activity.

• Housing starts were up slightly in 2018, which is a positive two-year trend, but is still well below historical average.

• Signs of under-investment in residential construction include vacancy rates for rental units (apartments and row housing) that approached record lows in 2018.

• In 2018, the average monthly unemployment rate among those aged 25-54 was only 5.4 percent and the job vacancy rate jumped by 24 percent compared to the previous year.

• The size of the labour force dropped by nearly four percent in 2018, increasingly this is related to the tightening supply, rather than a lack of demand.

The best example of this is the accommodation and food services sector which witnessed a significant boost in room sales in 2018 even as total employment in the sector declined.

There was also a lot of good news in 2018.• The population increased modestly (0.4 percent)

and the number between the ages of 15 and 29 actually rose in 2018 for the first time in seven years.

• This growth was due to the boost in immigrants and non-permanent residents. Nearly 1,000 newcomers were added to the population in

Greater Saint John in 2018.

• Interprovincial and intraprovincial migration rates also improved in 2018. After five straight years of losing population to other parts of New Brunswick, more have moved in than out in the past two years.

• The value of international exports for most goods emanating out of the Saint John region was up with strong gains in aquaculture and energy-related exports.

• The number of people flying in and out of the airport was up by seven percent.

• Although the total volume of cargo shipped out of Port Saint John declined in 2018, the volume of container cargo rose in 2018.

Looking forward, Greater Saint John will need to see a significant increase in population attraction and retention efforts, continued focus on workforce expansion, an infusion of private sector investment, and continued promotion of the region as a great place to live and work.

We believe our future is bright.We will, however, need to focus our collective efforts to attract more business investment, encourage new entrepreneurship, attract more tourists and post-secondary students, and encourage people from across Canada and around the world to move here.

16

NATIONAL PERSPECTIVE

The Canadian economy had another strong year in 2018.

• Economic growth, as measured by real gross domestic product, grew by 2.2 percent.

• The population increased by 1.4 percent between 2017 and 2018 continuing a recent pattern of strong growth.

• The number of people living in Canada over the age of 60 continues to rise much faster than the number under the age of 20.

• The country has increased the level of immigration in recent years to ensure the labour market has the workers needed to support continued economic growth. The number of immigrants rose by over 11 percent in 2018. Even more pronounced was the increase in net non-permanent residents (temporary workers, etc.) which increased by 60 percent in 2018.

• The number of Canadians active in the labour force rose by 0.8 percent to 19.8 million while the number employed expanded by 1.3 percent.

• Immigrants have accounted for all net growth in the size of the labour market since 2013.

• The unemployment rate decreased by 0.5 percentage points from 2017 and now stands at 5.8 percent. In 2016, the unemployment rate was 7.0 percent.

Canada is one of the countries most dependent on the global economy to drive economic growth. We rely on international exports, attracting international investment as well as attracting people from around the world to move here to fill labour market demand. The increasing risk of a global recession could particularly influence Canada’s economic performance in 2019 and beyond.

PROVINCIAL PERSPECTIVE

New Brunswick’s economy expanded by just 0.1 percent in 2018 (real GDP) which ranked 9th out of the 10 provinces. This was a drop from New Brunswick’s annual economic growth of 1.4 percent in 2016 and 2.0 percent in 2017.

By comparison, Prince Edward Island and Nova Scotia had economic growth of 2.6 percent and 1.2 percent respectively in 2018.

The demographic situation in the province along with relatively weak private sector investment is holding back economic growth.

PERSPECTIVES & ANALYSIS

TABLE 1:

Economic and demographic highlights, Canada (2018)

1 Year Growth

GDP – chained (2012) dollars $2.07 trillion +2.2%Population – all ages 37.06 million +1.4%Population – under 20 8.1 million +0.9%Population – over 60 8.8 million +3.4%New immigrants 303,257 +11.2%Net non-permanent residents 165,729 +60.0%Labour force 19.8 million +0.8%Employment 18.7 million +1.3%Unemployment rate 5.8% -0.5*

*Percentage point change. Source: Statistics Canada.

TABLE 2:

Economic and demographic highlights, New Brunswick (2018)

1 Year Growth

GDP – chained (2012) dollars 30.3 billion +0.1%Population – all ages 770,633 +0.5%Population – under 20 152,184 +0.1%Population – over 60 221,001 +3.0%New immigrants 4,113 +19%Net non-permanent residents 990 +48%Labour force 384.5 +0.2%Employment 353.8 +0.3%Unemployment rate 8.0% -0.1

*Percentage point change. Source: Statistics Canada.

17

• The population has started to increase in recent years with a modest 0.5 percent growth rate in 2018. This growth was enabled because of an expansion of immigrants and non-permanent residents which were up 19 percent and 48 percent respectively in 2018.

• Both the labour force and total employment rose in 2018 but well below the national growth rate. The unemployment rate declined slightly to 8.0 percent.

• The value of international exports from New Brunswick, excluding refined petroleum products, increased by six percent in 2018 led by strong growth in the value of aquaculture, frozen food, paper and non-ferrous metal. The value of seafood exports, the second largest category after petroleum products, dipped by six percent in 2018 to $1.19 billion.

LOCAL PERSPECTIVE

GDP growth

The Conference Board of Canada estimates gross domestic product (GDP) growth for all Census Metropolitan Areas (CMAs) across Canada.1

For the Saint John CMA, the economy expanded by 1.5 percent between 2017 and 20182 after rising by 2.3 percent between 2016 and 2017. Both 2017 and 2018 represented a marked improvement over the 2009 to 2016 period where real GDP growth averaged only 0.4 percent per year.

The impact of the Saint John economy on the provincial economy is evident here as the provincial economy was also very weak after the recession of 2008/2009 and has only just returned to modest growth in recent years.

Along with the tightening labour market, the weakness in capital investment is one of the factors holding back Saint John’s economic growth potential.

International exports

Statistics Canada does not publish export data for urban centres but provincial export figures indicate the importance of international trade to the local economy.

Saint John region-based firms account for upwards of 70 percent of the value of international exports from the province.

• The value of oil and gas extraction sector exports, mostly related to the LNG facility, rose by 71 percent in 2018.

• The value of electric power exports to the United States topped $100 million.

• Paper-related exports also expanded in 2018.

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

2.5%

0.4%

2.3%

1.5%

1.1%

2002-2006 2009-2016 2017 2018 Forecast through 2023

Average annual GDP growth rates, Saint John CMAFIGURE 1:

Source: Conference Board of Canada.

1GDP at Basic Prices - Saint John (Millions $ 2007). 2Estimate for first quarter 2019 compared to first quarter 2018.

TABLE 3:

Selected international exports by value, New Brunswick ($million)Saint John-focused export category: 2017 2018 %

changePetroleum Refineries $7,576 $7,009 -7%Pulp Mills $596 $598 0%Sawmills and Wood Preservation $539 $561 +4%

Paper Mills $356 $418 +17%Animal Aquaculture $274 $339 +24%Oil and Gas Extraction $154 $264 +71%Recyclable Metal Wholesaler-Distributors $135 $126 -7%

Paperboard Mills $103 $110 +7%Electric Power Generation $93 $107 +15%Gypsum Product Manufacturing $45 $38 -15%

Source: Trade Data Online.

18

Investment levels (building permits)

One of the best measures of investment is the value of building permits.

• The Saint John CMA had a very good year in 2017 with over $258 million worth of permits issued. In 2018, the amount dropped to $165.5 million but as shown in Figure 2, that is mostly due to a drop in non-residential investment which was in large part due to head office expansion activity in the City of Saint John.

• The value of industrial investment, as measured by building permits issued, dropped in 2018. There was only $8 million worth of building permits issued down from $25 million in 2017.

Housing starts are another important indicator of economic activity.

• Housing starts in 2018 were up slightly compared to 2017 and 2016 (Figure 3).

• However, the annual number of new houses built is down significantly compared to the last major investment boom in the Saint John CMA in the mid to late 2000s.

There is evidence of underinvestment in the real estate sector in the Saint John CMA, particularly apartments. This is of particular concern as the region looks to attract more immigrants as they are showing a preference, at least initially, for rental housing.

• As shown in Figure 4, the vacancy rate for both small and large apartment structures has dropped from a high of nearly 12 percent in 2013 to 3.4 percent for larger apartment structures and 2.7 percent for smaller buildings.

Population growth

The Saint John urban region (Census Metropolitan Area) population pushed through the 130,000 mark for the first time in 2018.

• The population increased by 550 or a 0.4 percent growth rate.

• This was slightly below the average among the 19 urban centres in Atlantic Canada.

Figure 5 shows the one-year, five-year and ten-year population growth rates for the Saint John CMA compared to the average among the 19 urban centres.

• The population aged 65 and older rose by over three percent in 2018 and more than 17 percent in the past five years.

• The good news is the population under the age of 20 has increased slightly since 2015, reversing a previous trend of decline.

$300

$250

$200

$150

$100

$50

$0

$80.6

2012

$75.2

2013

$67.3

2014

$72.8

2015

$60.9

2016

Value of building permits issued by type, Saint John CMA

FIGURE 2:

Total residential Total non-residential

$83.7

2017

$84.0

2018

$76.3 $72.0 $70.5$38.2

$71.1

$174.9

$81.5

Source: Statistics Canada. Table 34-10-0066-01

Annual housing starts, Saint John CMAFIGURE 3:

Source: Statistics Canada. Table 34-10-0134-01

9008007006005004003002001000

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Apartment vacancy rates by year, Saint John CMAFIGURE 4:

14.0%12.0%10.0%8.0%6.0%4.0%2.0%0.0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 Apartment structures of six units and over Row apartment structures of three units and over

Source: Statistics Canada. Table 34-10-0127-01

19

• The natural population growth rate in the Saint John CMA has turned negative, meaning there have been more deaths than births in the past two years. For every 100 deaths in 2018 there were 90 births.

Immigration has been trending upwards in recent years.

• In 2018 there were 987 immigrants and net non-permanent residents added to the population up from 828 in 2017.

• This was down from the high-water mark of 1,208 in 2016 but that year’s figure included a substantial number of Syrian refugees.

• Adjusted for population size, Saint John’s immigration rate lags behind other large urban centres in Atlantic Canada including Moncton, Fredericton, Charlottetown and Halifax.

The interprovincial (between provinces) and intraprovincial (within the province) migration picture in the Saint John CMA is improving.

• Between 2011 and 2016, the urban centre lost an average of 742 people (net) per year to interprovincial migration (people moving to other provinces).

• In the past two years the number has dropped to an annual average of only 215 lost to interprovincial migration (265 in 2018).

• After five straight years of losing population (net) to other parts of New Brunswick, net intraprovincial migration turned positive in 2017 and again in 2018. This turnaround has been the main driver of the urban centre’s return to modest population growth.

Table 4 shows the top 10 sources of interprovincial and intraprovincial migrants into and out of the Saint John CMA in 2017. The data does not include persons living in one community and working in another.

• The top population sources were smaller communities and rural areas in New Brunswick (shown here as non-CMA/CA) followed by Fredericton, Moncton, Calgary and Toronto.

• The top destinations for leavers were smaller communities and rural areas in New Brunswick followed by Fredericton, Halifax, Moncton and Toronto3.

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%0.5% 0.4%

1 Year 5 Year 10 Year

Population growth rate, Saint John CMA and regional average

FIGURE 5:

Statistics Canada. Table 17-10-0135-01

3.5%

4.0%

1.7%

0.7%

3.6%

1.1%

Atl. Canada urban average Saint John CMA

1200

1000

800

600

400

200

0

375 344

2013 2014 2018

Immigrants and net non-permanent residents by year, Saint John CMA

FIGURE 6:

Source: Statistics Canada. Table 17-10-0136-01

1400

536

1208

828987

2015 2016 2017

TABLE 4

Top 10 sources and destinations, interprovincial and intraprovincial migrants (2017) Saint John CMA

Moving to the Saint John CMA from:

Moving from the Saint John CMA to:

Non-CMA/CA, NB 685 Non-CMA/CA, NB 586Fredericton (CA), NB 290 Fredericton (CA), NB 298Moncton (CMA), NB 255 Halifax (CMA), NS 251Calgary (CMA), AB 170 Moncton (CMA), NB 235Toronto (CMA), ON 158 Toronto (CMA), ON 207Halifax (CMA), NS 125 Edmonton (CMA), AB 117Edmonton (CMA), AB 104 Ottawa-Gatineau (CMA) 113Non-CMA/CA, NS 91 Calgary (CMA), AB 90Non-CMA/CA, AB 50 Non-CMA/CA, NS 79Non-CMA/CA, ON 48 Vancouver (CMA), BC 72

Source: Statistics Canada Table: 17-10-0141-01.

3Non-CMA/CA areas in New Brunswick could include those in close proximity to the Saint John CMA.

20

Labour market trends

• The number of adults participating in the labour force was 67,000 in 2018, down from 69,700 in 20174.

• The number employed was 62,900 down from 65,500 in 2017.

• The unemployment rate rose slightly in 2018 to 6.3 percent but the unemployment rate is down by 2.6 percentage points from 8.9 percent five years ago.

• The labour market participation rate, the number of adults participating in the labour force, declined by three percentage points in 2018 and the number over the age of 55 also declined in 2018.

• The share of the population over the age of 55 in the Saint John CMA that are in the labour market is well below average among urban centres across Canada.

Glimpse on 2019 So far in 2019, the numbers are trending upwards. There were 71,200 participating in the labour force and 66,100 employed in August 2019 up from 66,900 in the labour force and 63,200 employed in August 2018.

Industrial sector performance

On an industry basis, there are a number of sectors that are performing well.

• Manufacturing employment is up 14 percent over the past five years adding a net 600 new workers.

• The public administration sector is also up having added a net 900 new workers over the past five years.

• Professional services employment is also growing again but is not back to the level a decade ago when significant capital spending in the region boosted the need for professional services sectors such as engineering and architecture services.

There are also sectors that are struggling.

• Construction continues to be a drag on the regional economy. After peaking at 7,100 jobs in 2010, employment in construction in 2018 was down to 3,800. To illustrate the impact on the economy, the Saint John CMA had 11 percent of its workforce employed in construction in 2010 and it is now down to six percent of the total. In 2010, Saint John had the second highest level of employment in construction among all CMAs across Canada. Now, its construction workforce is below average.

• Employment in business services dipped by a net 700 in 2018 over 2017 likely due to the impact of large centres such as S&P Data and Sears Canada closing their doors. Efforts to boost employment in this sector in 2018 and early 2019 (the Filling Unfilled Jobs initiative) should lead to this sector rebounding in 2019.

• Accommodation and food services sector employment peaked in 2013 at 5,000 and declined to 3,900 in 2018. Some of this weakness in employment may be related to increased workforce recruitment challenges in the sector and tourism statistics have been improving in recent years.

4This represents the average monthly labour market participants during the year.

TABLE 5:

Labour market indicators, Saint John CMA (2018)

Number 1 year % change

5 year % change

Labour force 67,000 -3.9% -4.1%Employment 62,900 -4.0% -1.3%

Percentage point changeUnemployment rate – All 6.3% +0.3 -2.6

Unemployment rate – 25-54 5.4% +0.6 -2.2

Participation rateAll ages 63.1% -3.0 -2.755 to 64 years 62.9% -1.1 +2.465 years and over 9.7% -4.4 -3.0

Source: Statistics Canada. Table 14-10-0096-01

Public administrationManufacturingHealth care and social assistanceProfessional, scientific and technical servicesTransportation and warehousingEducational servicesWholesale and retail tradeTotal employed, all industriesFinance, insurance, real estatePersonal servicesBusiness servicesInformation, culture and recreationAccommodation and food servicesConstruction -34%

-22%-12%

-5%-4%-3%-1%-1%

33%14%

11%8%

4%2%

Employment by industry, five-year percentage change, Saint John CMA (2013-2018)

FIGURE 7:

Source: Statistics Canada. Table 14-10-0098-01

21

Employment outlook

It is getting much harder to recruit staff in the Saint John CMA.

The unemployment rate among those aged 25 to 54 is only 5.4 percent down from 7.6 five years ago. Further, Statistics Canada’s Job Vacancy survey has recorded a significant increase in the number of job vacancies in the past three years. The survey is completed quarterly and the average quarterly number of job vacancies rose by 24 percent between 2017 and 2018 and by 49 percent between 2016 and 2018. This despite the fact that the average offered hourly wage was $18.40 in 2018, the highest among the six economic regions in New Brunswick.

Post-secondary student enrolment

We see the attraction of more students into our education sector as a very important tool we can use to expand the talent pipeline in Saint John. However, we have work to do.

According to data published by Immigration, Refugees and Citizenship Canada (IRCC), considerably fewer international students are enroled in Saint John region post-secondary institutions than in either Fredericton or Moncton. In fact, adjusted for population size, there are less than half the international students in Saint John compared to our peers. The good news is that both UNB and NBCC are focused on growing their international student population.

Air travel

Last year was a record-breaking year for the Saint John Airport as more than 282,000 passengers travelled through YSJ. Representing a seven percent increase over 2017, it marks the airport’s third consecutive year of growth.

Saint John Airport was the fastest growing airport in Atlantic Canada in 20185.

Port Saint John

The total amount of cargo (by volume) shipped through Port Saint John decreased in 2018 from 30.5 million metric tonnes in 2017 to 25.1 million metric tonnes in 2018.

After a sharp decline from 2016 to 2017, the amount of container cargo rose again in 2018, up from 390.2 thousand metric tonnes in 2017, to 422.6.

3,000

2,500

2,000

1,500

1,000

500

0

2,294

2016 2017 2018

Average quarterly job vacancies by year, Saint John region*

FIGURE 8:

*For the Saint John-St. Stephen economic region. Source: Statistics Canada. Table 14-10-0325-01

3,500

4,000

2,750

3,416

TABLE 6

Number of study permit holders as of August 2018(including high school students)Charlottetown 2,670

(35 per 1,000 population)Halifax 10,895

(25 per 1,000 population)Fredericton 1,805

(17 per 1,000 population)Moncton 2,300

(15 per 1,000 population)Saint John 970

(7 per 1,000 population)Source: IRCC, Canada - Study permit holders by province/territory of intended

destination and census metropolitan area, January 2015 - August 2018

5Among National Airport System (NAS) airports.

260.0250.0240.0230.0220.0210.00

235.8

248.3

2013 2014 2018

Air travel passengers, Saint John Airport (000s)FIGURE 9:

Source: Saint John Airport Inc.

270.0

252.0 250.7

263.7

282.2

2015 2016 2017

280.0290.0

22

Tourism activity

2018 was a strong year for the visitor economy in the Saint John region.

Discover Saint John reports a record-breaking 4 percent increase in tourism dollars added to the Saint John economy, coming from 1.7 million visitors.

According to data published by the New Brunswick government, room sales were up by 15 percent in 2018 following positive growth in 2017.

By the time the last cruise ship cast off its lines, 75 ships visited, bringing with them approximately 176,000 passengers and 70,000 crew, for a total of 246,000 passengers and crew. This represents a 19 percent increase in passengers over the 2017 season and a 13 percent increase in the number of cruise ship calls.

12%

10%

8%

6%

4%

2%

0%

3%

New Brunswick Fredericton Saint John

Increase in total room sales, 2017 to 2018FIGURE 10:

Source: New Brunswick Department of Tourism, Heritage and Culture.

14%

16%

6%

3.6% 15%

Moncton

0%

We are excited about the potential for the Greater Saint John economy moving forward. We have a lot of work to do. We need to expand the number of people moving to our region and we need to increase the size of our labour force to meet the demands of industry.

We also need to proactively work to support the sectors of our economy that have growth potential. Manufacturing employment is up strongly over the past five years as is professional services. We need to see new opportunities for private sector investment.

A good example of this is the tourism sector. Despite strong growth in recent years, the size of the tourism sector in Saint John lags behind many other larger urban centres in Atlantic Canada. Our colleagues at Discover Saint John are asking: are there potential new investments in the tourism sector that could take it to the next level?

We are also encouraged about the potential of the energy sector. The small modular nuclear reactor sector holds potential for our region and exciting efforts are underway right now that could lead to a new cluster of activity in the coming years.

Most of all we need to position Greater Saint John within a highly competitive North American marketplace. Hundreds of medium and large urban centres across Canada and the United States are vying to attract investment and talent and we need to ensure our community is attracting its share.

Every day, we all make choices that impact our regional economy. If you’d like some easy ways to roll up your sleeves and help, we invite you to watch our social channels for regular tips.

23

edgsj.com/carl

ARL Director of Smart Grid at Saint John EnergyI have had the opportunity to travel the world and I have not witnessed a better place to live.”Ask Carl what it’s like to live and work in Saint John, New Brunswick:carl@edgsj.com

C“

Location: Westfield Golf & Country Club in Grand Bay-Westfield, New BrunswickDistance from Uptown: 26 km / 25 minutes driving

24

2018 SUMMARY

NEW CEORon Gaudet joined the organization in late 2017, spending his first few months building stakeholder relationships, mapping the economic development ecosystem in the Greater Saint John region, and undertaking

a planning and repositioning process to simplify our messaging and enhance our focus on the pillars of economic development: jobs, workforce, and regional capacity building.

NEW CHAIRPERSONAndrew Oland, CEO of Moosehead Breweries, became Chairperson in January 2018. From the get-go Andrew set a high standard for strategy-driven planning, concrete deliverables, and transparent and regular stakeholder reporting. He is a collaborative leader, working for the benefit of the community as a whole.

2018 WORKPLANOur 2018 workplan built on the connected community theme that leveraged our strengths; people, trade and technology to support business. Our operational objectives for the year were: recognition as a capacity-building organization and an enabler of business innovation; fostering an entrepreneurial hub; exceptional organizational effectiveness and financial stability.

SPECIAL INITIATIVESThe latter part of the year was dedicated to two large projects – our first-ever three-year Economic Development Plan, and a comprehensive rebrand that included a new name, logo and website. The new name was designed to strongly reflect our regional mandate, with the added benefit of removing the ongoing confusion between us and a car rental agency. The plan, developed in partnership with economist David Campbell, established four areas of strategic focus and specific targets for us to achieve throughout the mandate of the plan. Both the plan and the identity were launched at a stakeholder event in January 2019.

2018 transformative year for our organization.

was a

25

2018 AT-A-GLANCE

2018at-a-glance2018 KEY PERFORMANCE INDICATORS

2018 Strategic focus Target 2018 4th quarter resultsPotential entrepreneurs 800 1,835Start-ups 25 37Existing entrepreneurs 45 jobs 75 jobsExisting business 550 jobs Announced: 892

Hired: ~ 50% filledExternal investors 250 jobs Announced: 450

Hired: 300

VENTURE VALIDATION RESULTS 2018

Participants 40Completions 26Launches 12Founders working to launch 5Jobs created 14.5Impact Loans in dollars $130,000.00New Incubator clients 2

IMPACT LOAN RESULTS 2018

Loans given 24Value of funds $537,000Value of leveraged funds $2,447,880Jobs created 47.5

INCUBATOR RESULTS 2018

Participants 7Successful exits 0Exits 1Investment $215,500R&D funding $145,400Jobs created 12

OBJECTIVE 1: Recognized as capacity buildersOur role as capacity builders involves partnerships, consulting and special projects.

OBJECTIVE 2: Enable business innovationOur role as an enabler of business innovation is directly tied to our mission to create a more attractive business environment, which will in turn help to retain and attract businesses to our region.

OBJECTIVE 3: Foster an entrepreneurial hubBuilding the entrepreneurial ecosystem in the region involves education, programming and tapping into the power of clusters.

OBJECTIVE 4: Exceptional organizational effectivenessEnsuring our own organization operates at peak effectiveness was also a key objective in 2018.

OBJECTIVE 5: Financial sustainabilityEnsuring our organization has the financial means to accomplish our goals and meet expectations.

26

2018 FINANCIALS

27

2018 FINANCIALS

28

2019 CONTEXT

Why is an economic development plan necessary?

A plan keeps us focused. If we are to accelerate economic growth, we need to actively address our most pressing needs. Our plan identifies our focus areas, defines our targets, and describes the activities we’ll undertake to achieve them.

How do you define your approach to achieving your targets?

Aggressive collaboration. The beauty of a three-year plan is that it is a burning platform. We need to move smartly – in both senses of the word – to successfully accomplish the goals we’ve committed to achieving. That means rapid development of partnerships, moving quickly to secure buy-in, trying new things, and generally going for it.

How are you doing, with respect to your year one targets?

We are already well on our way to achieving our year one targets, and we are excited to build upon that progress in the years to come.

How are you reporting your progress?

We have developed a comprehensive reporting program, to keep our funders and other stakeholders updated on our progress. That includes a monthly dashboard that goes out to our funders and our board, quarterly reports that are distributed to our full stakeholder group and online, and this report to the community.

Starting 2019 off with a bang, we launched a three-year Economic Development plan, a new name and a new brand in January. EDGSJ CEO Ron Gaudet introduced the three-year plan to stakeholders with a discussion that focused on the ingredients we can leverage to spur economic growth. He pointed to what he described as one of the most compelling components of the research underpinning the plan – the notion that the Greater Saint John region is the bellwether for the province.

If our local economy is doing well, the Provincial economy will also post good results – and vice-versa. This is because we are home to many of the building blocks of our provincial economy – including transportation assets, energy assets, manufacturing assets, and world headquarters. These assets give us an important head start toward achieving our goals.” Ron Gaudet | EDGSJ CEO

Q

A

ECONOMIC DEVELOPMENTPLAN • 2019-2021

“

Here are some of the questions we fielded at our launch event, and in stakeholder discussions since that time.

Q

A

Q

A

Q

A

29

What will happen when you have some bad news to report?

We’ll report it – and furthermore, we’ll share with our stakeholders why we think we’re struggling, and what we’re doing about it. Our monthly dashboard and our quarterly report includes a status light for each focus area: green, yellow or red. This indicator will open the door for healthy discussion with respect to our challenges.

This document includes a Report on the Economy. Why is that important?

Our work does not take place in a vacuum. It takes place within a provincial context, a national context, and a global context. Factors like a new NAFTA agreement, the value of the Canadian dollar, the price of oil, and climate disasters all have an impact on how easy – or how hard – it is to achieve steady economic growth in Greater Saint John. But more importantly, knowledge of these factors, and how they’re trending, are strategic insights that help us improve the effectiveness of our work at the local level. Simply put, a Report on the Economy is an important piece of the puzzle.

What are the most important tools when it comes to achieving our economic development goals?

Vision. Teamwork. Commitment. These community attributes, more than any others, will set economic development work up for success.

Q

A

Q

A

Q

A

Full disclosureWe work in a complex economic development ecosystem. The great news is that many wonderful initiatives are underway, each led by one or more regional stakeholders. Sometimes we take the lead, sometimes we take a supporting role. Examples include:

LEADER PARTNER ADMINISTRATOR SUPPORTER

LEADER PARTNER ADMINISTRATOR SUPPORTER

LEADER PARTNER ADMINISTRATOR SUPPORTER

LEADER PARTNER ADMINISTRATOR SUPPORTER

LEADER PARTNER ADMINISTRATOR SUPPORTER

LEADER PARTNER ADMINISTRATOR SUPPORTER

LEADER PARTNER ADMINISTRATOR SUPPORTER

LEADER PARTNER ADMINISTRATOR SUPPORTER

LEADER PARTNER ADMINISTRATOR SUPPORTER

LEADER PARTNER ADMINISTRATOR SUPPORTER

ASK GSJ ad campaign

Brick Park

Filling Unfilled Jobs initiative

Foreign Trade Zone Point

IDEA Centre High School Accelerator

Impact Loan program

Navigator entrepreneur training

Saint John Innovation District

Smart & Connected Data Project

Tucker Park Health Collaborative

30

edgsj.com/anoop

NOOP Software Engineer with

13 years’ experienceNew Brunswick is a beautiful province and Saint John is its heart.”Ask Anoop what it’s like to live and work in Saint John, New Brunswick:anoop@edgsj.com

“

Location: Rothesay Yacht Club in Rothesay, New Brunswick Distance from Uptown: 17 km / 19 minutes driving Styling: wardrobe and accessories – RW&CO

31

FOCUS AREAS

Workforce Development

Business Investment & Innovation

Entrepreneur Development

Marketing GSJ

32

FOCUS AREA | Marketing GSJ

Build an integrated community model that ensures Greater Saint John companies can attract and retain talent.

Work with 30 companies to fill 350 stagnant jobs (posted for at least 90 days and still unfilled).

• Pilot a multi-agency approach to filling unfilled jobs

• Work with targeted employers to increase their effectiveness and intentionality of recruitment, onboarding and retention efforts

• Identify and implement short-term workforce development initiatives and address challenges

• Promote the employment opportunities & benefits of living in Saint John and surrounding areas to newcomers, youth, graduates and potential residents

350 jobs filled. (As of August 30, 2019)

YEAR ONE TARGET

2019 WORKPLAN

THREE YEAR GOAL

WORKFORCE DEVELOPMENT

Attract and retain talent to support the growth of our existing companies and attract new companies to our region.

YTD RESULTS

INITIATIVES

Filling unfilled jobs/working with employers

We are leading the Filling Unfilled Jobs initiative, a multi-agency pilot project that includes representatives from the Premier’s Office, Opportunities New Brunswick (ONB), Post-Secondary Education, Training & Labour (PETL), the Atlantic Canada Opportunities Agency (ACOA) and the City of Saint John. The initiative is working closely with 21 regional employers to test out new approaches to attracting and retaining talent, and to look for common challenges that can be targeted for resolution.

Resume database One key component of the initiative is the resume database.

Candidates are invited to upload their resumes to our database, where they are tagged for skills and experience. Our team supports employers by screening for candidates that match vacant jobs and providing referrals. Candidates in the database are also invited to participate in local online and in-person job fairs.

LINK

33

Attract and retain talent to support the growth of our existing companies and attract new companies to our region.

Workforce development initiatives

One challenge faced by local employers and newcomers alike is the idea that hiring newcomers is a complex process. We are working together with the Saint John Local Immigration Partnership (SJLIP) and several community stakeholders to educate employers about the process. We are also working with SJLIP and the City of Saint John to create a series of videos highlighting the benefits of newcomer employees.

Promote employment opportunities

We use our social media channels to promote work opportunities, and as a promotion channel for our ASK GSJ campaign – which showcases the benefits of living in the Greater Saint John region.

What are the top three ways Saint John employers should be changing their approach to human resources/talent acquisition?

1. Establish and fill the talent pipeline, so they’re ready to make an offer at all times.

2. Widen the net and diversify their employee base.

3. Strengthen onboarding processes and employee training offerings.

TOP THREE

FOCUS AREA COLLABORATORS

PETL • ACOA • ONB • UNB • NBCC • NBIF • MUNICIPALITIES • SETTLEMENT AGENCIES • TECHIMPACT • TRAINING SECTOR • INDUSTRY GROUPS

Resume database FAQsDeveloped by: EDGSJLaunched: December 2018Resume total as of August 30, 2019: 2,000+

Top five home provinces of applicants:

• Ontario• Alberta• New Brunswick• British Columbia• Saskatchewan

34

FOCUS AREA | Marketing GSJ

BUSINESS INVESTMENT: working closely with ONB, the region will have secured significant investment in the Cybersecurity, Energy, Digital Health and Logistics sectors. INNOVATION: public, private and non-profit organizations invested in development of an Innovation District in Uptown Saint John.

BUSINESS INVESTMENT: 300 jobs created through investment attraction. INNOVATION: Develop concept, test feasibility and secure partner buy-in for an Innovation District.

• Define project scope and secure funding for phase 1 of the Innovation District

• Work with UNB to have the MBA program relocate to Uptown Saint John

• Engage industry on innovation needs and investment opportunities

• Conduct feasibility study for a Logistics Park

• Lead and/or support regional opportunities in Cybersecurity, Energy, Digital Health and Logistics

• Lead projects that drive innovation in industry

BUSINESS INVESTMENT: 103 of 300 jobs have been created, and the opportunities pipeline includes several new high probability projects. INNOVATION: planning for the Innovation District continues with positive support. Potential real estate options are being evaluated. (As of August 30 2019)

YEAR ONE TARGETS

2019 WORKPLAN

THREE YEAR GOALS

BUSINESS INVESTMENT & INNOVATION

Promote the value proposition for investment and support companies in being globally competitive.

YTD RESULTS

What are the top three things business owners are amazed to learn, when they come to Saint John to explore the option of relocating here?

TOP THREE1. The affordability of commercial heritage real estate.

2. The accessibility of our business and political ecosystem.

3. The walkability of our Uptown community.

35

Promote the value proposition for investment and support companies in being globally competitive.

INITIATIVES

Innovation District/Innovation needs assessment

One of the most reliable ways to create jobs is to foster innovation. Perhaps the best way to spark and capitalize on innovation is to create a multi-disciplinary collision space, where experimentation, creativity and collaboration can take place in an agile and open-minded environment.

We are currently leading discussions with partners in industry, post-secondary education and government – with the goal of setting up a Brick Park-based Innovation District that aggressively leverages the ingredients for growth we already have in place, so we can build capacity in a rapid development environment.

This process has allowed us to explore, alongside our industry partners, the requirements for innovation, the gaps that need filling, and the opportunities for investment that will close those gaps.

MBA program relocation

Ongoing discussions about the possibilities and potential benefits of moving UNB’s MBA program to Uptown Saint John culminated recently with the university’s June proposal to relocate the program to the upper floors of the university’s Grand Hall location, adjacent to King’s Square.

We are working closely with the university to develop a concept for the first floor of the building, which will see the development of a business incubation centre, enhancing the community’s start-up ecosystem and creating a new value proposition for the program to drive growth.

Logistics Park

In 2018 the Saint John region became Canada’s 10th designated Foreign Trade Zone point, allowing businesses to import, assemble/adjust/configure and then export without paying taxes or duties. We worked closely with local stakeholders including Port Saint John to bring this project to fruition – and are now serving as the single access point for businesses looking for information and support enabling them to use this financial and logistical tool to their best advantage.

To take full advantage of the benefits of this designation, we are now exploring the formation of a Logistics Park – a cluster of services related to

intermodal transportation and distribution of goods, designed to improve transit times and create supply chain efficiencies.

Sector-based investment opportunities

We are working with a variety of partners, including Opportunities NB, to support investment opportunities that will enhance our identified key sectors.

Specifically, we are working closely with UNB to support the Health and Technology District Atlantic, a digital health hub earmarked for Saint John. We are also supporting NB Power’s small nuclear reactor initiative, which has seen both ARC Nuclear and Moltex Energy establish offices in Uptown Saint John and progress through Phase 1 of the Canadian Nuclear Safety Commission’s vendor design review process. These are important first steps in the formation of a future Small Modular Reactor Research Cluster and associated manufacturing industry/supply chain here in New Brunswick.

Project-based innovation drivers

We are continuing to lead two initiatives designed to foster innovation and grow capacity in our region.

The first is our Catalyst Innovation Program, which uses the skills and talents of our experienced consultants to solve complex business challenges, connect business owners with investors/advisors/mentors, and drive growth.

The second is our ongoing Smart & Connected Data project, designed to build local capacity and create regional opportunities in data and connected technology. We have just completed Round 2 of our Smart & Connected Innovation Challenge, soliciting projects that will leverage data to solve business and community problems and create exportable products.

FOCUS AREA COLLABORATORS

ACOA • ONB • OTHER FEDERAL/ PROVINCIAL PARTNERS • MUNICIPALITIES • DEVELOP SJ • SAINT JOHN ENERGY • PORT SAINT JOHN • CYBERNB • HORIZON HEALTH • UNB • NBCC • INDUSTRY PARTNERS • ATLANTICA CENTRE FOR ENERGY • NBIF • TECHIMPACT

36

FOCUS AREA | Marketing GSJ

A strong entrepreneurial pipeline, industry engagement and post-secondary partnerships driving a new level of growth in Saint John start-ups and scale-ups.

Support the launch of 30 start-ups and 60 new jobs.

• Increase the size of the start-up and expansion loan portfolio

• Build a stronger entrepreneurial pipeline by working closely with our post-secondary institutions, and by launching a new start-up internship program and growing the High School IDEA Centre

• Enhance existing programs with a focus on start-ups that can scale to $1 million in sales and 10+ employees

• Develop a best-in-class incubator by partnering more closely with post-secondary institutions, industry and subject-matter experts

26 of 30 start-ups launched 40.5 of 60 new jobs created

(As of August 30, 2019)

YEAR ONE TARGET

2019 WORKPLAN

THREE YEAR GOAL

ENTREPRENEUR DEVELOPMENT

Build the Saint John entrepreneurial ecosystem with a focus on scalable start-ups.

YTD RESULTS

INITIATIVES

Impact Loan portfolio

We administer the Impact Loan Program (formerly SEED Loan) for the urban Saint John area. This program is funded by the Atlantic Canada Opportunities Agency (ACOA). These low-interest loans are designed to support the start-up phase for companies of all kinds, and to support business expansion for entrepreneurs between the ages of 19-39. In addition to capital, the program also offers free business management skills training for successful applicants.

Impact Loan PortfolioTimeframe Number of

loansAmount of financing

Q2 2019 7 $140,000Q1 2019 6 $145,000Q4 2018 4 $80,000Q3 2018 6 $147,000Q2 2018 5 $120,000Q1 2018 7 $140,000

FOCUS AREA COLLABORATORS

PETL • ACOA • RDC • UNB • NBCC • CONNEXIONWORKS • BRILLIANT LABS • TECHIMPACT • NBIF ONB • ANGLOPHONE-SOUTH SCHOOL DISTRICT

37

Build the Saint John entrepreneurial ecosystem with a focus on scalable start-ups.

High School IDEA Centre

The IDEA Centre stands for innovation, development, entrepreneurship & action. This program is delivered in partnership with New Brunswick’s Anglophone South School District, and is designed to expose high school students to business concepts. It gives them the opportunity to explore the commercialization process with educators and business leaders. We are working with our partners at the school district to allow them to scale this program and offer it to other areas in the province.

Paid Start-Up Program

This new program provides the opportunity for interns to work full-time towards the start-up of a business while receiving $11.25 per hour for 26 weeks for 30 hours per week. Participants enjoy a co-working space, skills training and mentoring support – all designed to help validate and commercialize a new venture. The Paid-Start Up Program de-risks the launch phase of the start-up process for participants.

Venture Validation Program

The Venture Validation Program is an applied learning program, built to move emerging entrepreneurs from idea to launch. The program uses a combination of workshops, one-on-one mentoring and pitch nights to hone skills and build a competitive yet collaborative group. Participants create a value proposition, identify their customers and competition, define their market opportunity, clarify start-up and operation costs and create a business model.

Incubator

Our Incubator offers long-term support for founders of scalable start-ups. Companies that are developing products with export potential are ideal candidates. Participants are supported by EDGSJ staff and an Entrepreneur-in-Residence. If you’re looking for advice on engaging with customers, raising investment, and finding money from government programs, our incubator can help.

The Hive

The Hive Saint John is the city’s only entrepreneur development incubator dedicated exclusively to newcomer professionals. We offer a customized mentorship incubator that includes business coaching, one-on-one growth sessions, dedicated desk space as needed, and access to the Business Immigrant Essentials program.

Business Immigrant Essentials

The Business Immigrant Essentials program is a must-have for newcomer entrepreneurs.The BIE offers roughly 60 hours of workshop content led by local business leaders, lawyers, accountants and MBA professors. Upon graduation of the program you will have the tools, resources, network and foundation needed to be successful in our market. This is your go-to program for expertise translation: take your business experience and translate it to Saint John, New Brunswick.

IDEA Centre enrolmentTimeframe Number of studentsFall 2019 17

online attendees TBDWinter 2019 21

+25 online attendees

Fall 2018 13+20 online attendees

Fall 2017 (Pilot) 12

Entrepreneurial pipelinePipeline phase EDGSJ programAwareness and skill building

High School IDEA Centre (youth)

Exploration Discovery sessionsVenture Validation

Start up Paid Start-UpBusiness Immigrant Essentials

Incubation IncubatorThe Hive

Scale up CatalystKickstart your Business

What are the top three things entrepreneurs should nail down when they’re just starting out?

1. Value proposition – identify the problem you want to solve or the service you offer, and understand how you do it differently/better than your competition.2. Go-to-market strategy – prepare a detailed plan on how, when and where to launch your business and define your marketing and sales strategy. 3. Cash management – ensure you have the resources in place to launch and conduct business. Have a cash flow projection prepared as well as pricing strategy that ensures profitability. Manage your money carefully.

TOP THREE

38

INITIATIVES

Marketing Plan

In 2018 we partnered with Develop Saint John to create a marketing plan to support our joint economic development goals.

To date we have accomplished the following:

• a marketing partner has been selected • market research has been conducted • marketing plan development is complete

Key findings of the market research study include:

For individuals • Target demographic for a move to Saint John is male, 18-24, and renting.• Interestingly, family connections did not impact interest in moving.• Quality of life and cost of housing were key factors

influencing decision.

For business owners • 12 percent of survey responders would like to know

more about expanding to Saint John.• Interest was highest among Ontario-based

businesses, and those in IT/professional services/finance/property developers.

• Among those who would consider relocating to Saint John, availability of skilled labour, taxation rates, transportation infrastructure and local economic conditions were considered very important factors in their decision.

Marketing Campaign

In late Spring we began to develop and implement a marketing campaign designed to highlight the career and lifestyle opportunities available to those who live and work in Greater Saint John.

FOCUS AREA | Marketing GSJ

Cultivate a positive image of the community and its opportunities internally/externally, which leads to more people attracted to living & investing in the region.

Collaborate with agencies/municipalities to create a shared marketing tool box, complete an economic development marketing plan for Greater Saint John and acquire resources to implement the campaign.

• Conduct research with our partners to inform the development of a marketing plan

• Access resources and expertise to develop and implement an internal and external marketing campaign

• Deliver consistent communications to community stakeholders on marketing, projects and programming related to areas of focus

Our digital marketing efforts at telling the Greater Saint John story to attract people, investment, and support of the growth of our companies and economy in 2019 have garnered over 2.1 million impressions and 26.5k engagements.

(As of August 30, 2019)

YEAR ONE TARGET

2019 WORKPLAN

THREE YEAR GOAL

MARKETING GSJ

Tell the Greater Saint John story to attract people and investment, and support the growth of our companies.

YTD RESULTS

39

Tell the Greater Saint John story to attract people and investment, and support the growth of our companies.

The ASK GSJ campaign – featuring interesting people with interesting jobs, in great locations – not only shows off the five communities that make up our region, but it also creates a proof point for each of our key sectors: ICT and cybersecurity, ocean, health research, energy, and logistics and manufacturing.

The campaign was launched in June, with a full-page ad in Maritime Edit, a promoted story and ad on Huddle, ads and boosted content on our social media channels, and campaign-specific content on our website.

Analytics on our own channels show the campaign has enjoyed a digital reach of nearly 133,000 people, with more than 4,100 link clicks.

Our demographic profile was as follows: 60 percent men, 40 percent women, aged 25-44 years of age, living in Toronto, Vancouver, Calgary, Boston and Halifax.

We have included all the ads in the ASK GSJ series in the pages of this report. We encourage you to visit the website to read the first-person Q&A for each of the people featured. Their reasons for choosing GSJ are compelling and inspiring.

Consistent Communications

In January 2019 we launched a new brand and website for our organization – one that embraced our regional mandate, and removed confusion between us and a local car rental agency (Enterprise Rent-A-Car). We moved quickly to create and maintain a consistency around our new brand, updating materials that were still in use and establishing brand guidelines for future materials. We continue to communicate with our stakeholders and the community at large using a wide variety of digital properties (blog posts, social media posts), and through both earned media and our column in the Telegraph Journal.

We have also established a comprehensive set of reporting procedures, to keep our stakeholders up-to-date on our progress toward our targets.

These include:

Monthly progress dashboardsOur monthly dashboards, circulated to our funders and board by email, cover each of our four target areas. Each 1-page dashboard includes: target status, YTD progress toward target, wins & achievements, and concerns & challenges.

Quarterly reports Our quarterly reports are circulated to all stakeholders, shared on social media and posted on our website. This short document includes a snapshot of economic indicators for the country, province, and our region. It also includes a quarterly summary of our dashboard information for each target area, and a highlight story for each.

Dear GSJ – Report to the CommunityThis document is our first of what we expect to be an annual report to the community that covers our progress, educates about the complexities of this work, and encourages collaboration and commitment over time.

It includes a comprehensive Report on the Economy, which will describe, in layman’s terms, the context in which we’re operating. This context is essential to the strategic decision-making required to effectively plan for economic development. We hope you enjoy it, and of course we welcome feedback.

What are the top three reasons investing in marketing the region is important?1. The marketing process forces us to identify and

then describe our value proposition.2. We need to be seen as a credible and attractive

option for workers and business owners alike, and we can’t do that passively. The competition for talent is already tough, and it will get tougher over time.

3. Developing the region’s brand as a great place to live and work takes time.

TOP THREE

FOCUS AREA COLLABORATORS

MUNICIPALITIES • DEVELOP SJ • DISCOVER SJ • ONB • PETL • UPTOWN SJ • RESIDENTS • LOCAL MEDIA

40

ACKNOWLEDGEMENTS

We couldn’t do it without you. We’d like to thank our municipal partners, mayors and councils for their ongoing support, financial and otherwise. We sincerely appreciate it.

We’d also like to thank our strategic partners. Your contributions to our organization are investments that create a return on investment that benefits citizens now and in the future.

We’d like to thank the following agencies for their commitment to being collaborative partners, and their support in achieving our collective goals.

We’d like to thank the following organizations and individuals for supplying data and/or commentary that supported the development of our Report on the Economy.

• Conference Board of Canada • Saint John Airport • NBCC• Discover Saint John • Statistics Canada • Develop Saint John • UNB • Port Saint John • David Campbell And finally, we would like to thank Katie Bowden and Sean Payne and the team at Duke Creative Collective Inc. for their creative direction and important insights in the development of this report.

There is much to build on here.Every day our businesses ship products, serve customers, and get things done.

Every day we educate tradespeople, health care professionals, and creative thinkers.Jobs are posted. Newcomers welcomed.

Visitors come, and visitors go.Data moves at the speed of light. Ships move in and out on the tide.

People take risks. Start up. Scale up. Give-it-a-try.Families put down roots.

Year-in and year-out, that machine works for us all, because of the efforts of everyone involved.

That effort is an investment of precious resources.

We must protect that investment by becoming cheerful champions for the region and the people in it.

We must supercharge that investment by becoming consistent collaborators with partners of all kinds.

We must steward that investment by becoming patient drivers of our shared agenda.

We all deserve a good return on our investment.We all believe in the possibilities.

We just have to go for it. Together.

• ACOA• ASD-S• Atlantica Centre for Energy• Brilliant Labs• Connexion Works• Cyber NB• Develop Saint John• Discover Saint John• Government of Canada• Global Affairs Canada

• Horizon Health• NBCC Saint John• NBIF• Opportunities NB• Port Saint John• Post Secondary Education, Training and Labour• Province of New Brunswick • Regional Development Corporation

• Saint John Airport • Saint John Hotel Association • TechImpact• The Chamber • UNB Saint John• Uptown Saint John

• Bell Aliant • Bird • Canaport LNG • East Point Shopping • Emera New Brunswick • Irving Oil • J.D. Irving, Limited • Lorneville

• Moosehead Breweries • Owens MacFadyen Group • Port Saint John • RBC Dominion Securities • Saint John Airport • Saint John Energy • Delta Saint John by Marriott

41

There is much to build on here.Every day our businesses ship products, serve customers, and get things done.

Every day we educate tradespeople, health care professionals, and creative thinkers.Jobs are posted. Newcomers welcomed.

Visitors come, and visitors go.Data moves at the speed of light. Ships move in and out on the tide.

People take risks. Start up. Scale up. Give-it-a-try.Families put down roots.

Year-in and year-out, that machine works for us all, because of the efforts of everyone involved.

That effort is an investment of precious resources.

We must protect that investment by becoming cheerful champions for the region and the people in it.

We must supercharge that investment by becoming consistent collaborators with partners of all kinds.

We must steward that investment by becoming patient drivers of our shared agenda.

We all deserve a good return on our investment.We all believe in the possibilities.

We just have to go for it. Together.

print &

post

LOOKING FORWARD

edgsj.com/kizzy

IZZY Senior Analytics Developer and Business Analyst, Irving OilLiving in Saint John is like living at your beautiful, relaxing cottage on the water all year long.”Ask Kizzy what it’s like to live and work in Saint John, New Brunswick:kizzy@edgsj.com

K“

Location: Queen Square North in Saint John, New Brunswick. Accessories – Baubles.