OVERVIEW• Overview of KEDC

• Environmental Scan

• Priorities for development

• Q & A

Background

• The Kittiwake EconomicDevelopment Corporation(Zone 14) is one of 20regional economicdevelopment boards inNewfoundland andLabrador

• The Zones came from thewake of a 1992 governmentreport entitled ‘Change andChallenge’ and throughfurther consultation andlater provisional boards, thecurrent system wasintroduced

Changing Focus

• The KEDC isundergoing a changein role from advisoryto implementing body

• With less staff andresources comesgreater focus

Key Strategic Sectors

• Business/Manufacturing

• Tourism

• Natural Resources

• Commercial Fisheries

These sectors are relevant toZone 14’s strengths andopportunities

A strong economy …

Key features:

• Attractive climate forbusiness

• Well-educated andskilled workforce

• Value-added use ofnatural resources

• Strong infrastructure

• Innovative private sector

Beyond the rhetoric …

There remains a critical need for renewedcollaborative, focused, community-driven

approach to sustainable communities, jobcreation and the generation of wealth.

Zone Overview

• 13,167 kilometers of land

• 3,514 kilometers of coastline

• 3 islands only accessible byferry

• 2nd largest Zone outside of 19(Avalon Peninsula)

• Diverse communities andeconomies within the zone

• Communities areinterdependent on each other,but have unique needs

Private Sector Zone 14

• 1,686 registered businesses

• 9% of the provincial total

• Significant number of jobs tied to the publicsector

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Transportation Sector

• TCH plus secondaryroads

• International airport

• Marine shipping i.e.Lewisporte-Labrador

Economic situation vs. province

• Zone 14 experienced 10% decline inpopulation during the last census - Provinceexperienced 7%

• By 2016, 5,120 residents will have been lostor 10.3 per cent of existing population.

• Income per capita $15,900 versus $18,100for the Province

• Employment rates for people aged 18-64 are73% versus 74% for the Province

Seasonal Economies

• Data is influenced byseasonality of naturalresource industries

• Large demographic shiftlooming in these industries

• The average medium age ofa fish processing worker is 54

• Zone is experiencingdeclining hours annually atvirtually all processingfacilities

• Early retirement programsand new sustainable industryopportunities are required

Forecasting labour market

• Retirement boomanticipated in next 5years should lowerlabour pressure index

• Attrition will improvesome labour marketopportunities

• Increasing demandfrom Central Canadafor skilled workers willpresent furtherchallenges of workerretention

Current Priority Sectors

• Manufacturing/BusinessDevelopment

• Natural resources

• Tourism

• Commercial Fisheries

Sector Overview - Manufacturing

• Provincial manufacturingsector has doubled in lastdecade

• Zone 14 has secondlargest number ofmanufacturers

• 5% of all business is zoneare engaged inmanufacturing

• Boat building, aerospaceand food and beverage arestrengths for the zone

Impediments to growth

• Access to capital

• Knowledge of theexport market and itsnuances

• Skills gap - moreconnection is requiredbetween industry andeducation to rectifyshortages

Work to Date

• Facilitating exportopportunities

• Brokerprocurement/tradeopportunities

• Business Retentionand Expansion plan setout 3-year plan ofaction

Action Plan

Better environment for business start-up

• Increase self employment benefit to 2 years

Follow up on “red flag” issues identified in the BR&E

program

• Address moonlighting, volatility in petroleum

prices, rising provincial fees, recruitment of lower

skilled employees to the service sector

Action Plan (cont.)

Increase the labour pool

• lower the minimum forrestricted employability from16 to 15 years of age to allowbetter access to part-timeworkers

Foster new transportationsolutions for exporters andbusiness

• Better air, sea and roadinfrastructure and connectivity

Key areas of focus – Natural Resources

• agriculturedevelopment in smallfruits

• birch sap

• eider down commercialdevelopment

• The Fishery*

Blueberry Overview• Zone 14 has a processing facility for

blueberries at Indian Bay

• Most local buying and processing inthe entire province is occurring at thislocation

• Established winery operations withinthe region can benefit directly byhaving new small fruit developments

• Wild blueberry is documented to havea higher anti-oxidant quality thusincreasing its value on the market

• Other small fruit development: grapesand cranberries

Work to Date - Blueberries

• Formation of Blueberrydevelopment Corporation

• Demonstration plots haveyielded useful data andtraining programs for newfarmers have beendeveloped

• Blueberry opportunity ismaturing, now requiresprivate sector investment

Overview – Birch Sap• By comparing the birch sap

industry to Finland, there arethree protected birch stands inthe zone that could generateupwards of $10 million annually

• The Finnish product has a retailvalue of approximately $53.23per liter

• Research has shown that onebirch tree produces on average3.8 liters in a 24 hour period

• Sap can be frozen for periods oftime with no adverse impacts onquality or self life.

Work to date – Birch Sap• birch sap committee has

identified and documentednumerous products andpatents which contain theraw material

• Stabilization research hasalso been completed at theMarine Institute withimpressive results

• Industry strategy is beingdeveloped with a tentativecompletion in the spring of2006

Overview – Eider Down

• In addition to eco tourismor hunting opportunities,the collection of eiderdown provides anestimated $2.2 million toIceland’s economy perseason

• Zone 14 is poised forgrowth of the eiderpopulation with our workto date, current base ofbirds, and small islandsscattered throughout ourbays

Work to date – Eider Down• Ducks Unlimited has embarked on a $1.7 million initiative

to study eider nesting success and post hatch survival

• The KEDC has worked with DU in studying ourpopulations and potential.

• Projects to increase the resident eider populations havebeen undertaken in the zone during 2002 and 2003

• These have met with notable success in increasingpopulation and social sensitivity to the species.

Tourism Overview

• Tourism is a significant economiccontributor, particularly in ruraland remote areas

• Tourism revenue generated bynon resident travel, comprising 72per cent of total visitors,contributes an estimated $7million of the annual $15 milliontourism industry on our coast

• the zone needs continuousinfrastructure growth, particularlyin the private sector

Tourism – Work to Date

• Work to improveinfrastructure

• Other initiativesincluding eco-tourism,heritage tourism,yachting, and work onmarine trail system

Tourism – Challenges

• Strengthen marketing andgrow demand in the shoulderand winter seasons

• Upgrade ferry services andother transportationinfrastructure

• Coordinated effort at productdevelopment

• Better coordination betweentourism bodies

Tourism Priorities

• Better tourism productawareness within andbetween the industry inZone 14

• Zonal ferry system androad infrastructure areimpediments to growth

The Fishery?

There is a current and impendingcrisis in the fishery, driven by:

•Availability of resource/product forcurrent processing capacity

•Impending labour pool shortagesdriven by outmigration and aging inthe industry

•Competitive factors i.e. productionin China, flooding of aquaculturemarket by Chile

The Fishery?

• Impediments to trade,such as EU tariffs

• Resultant shortening ofprocessing season

• Lack of secondary/value-added processing tocreate further benefit

From our work at thissymposium, we willarticulate a strategy forsame

CONTACTPaul Stride

Executive Director

Ph: 709-256-2595

Fx: 709-256-2672

E-mail paulstride@nfld.net