NANAIMO ECONOMIC DEVELOPMENT CORPORATION ANNUAL REPORT
2013
TABLE OF CONTENTS
02 INTRODUCTION
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MEDIA EXPOSURE
0 3 MESSAGE FROM NEDC LEADERSHIP
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BUSINESS HIGHLIGHTS
04 ECONOMIC CONDITIONS
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VISITOR CENTRE ACTIVITY
0 5 RESEARCH AND REPORTING
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BOARD OF DIRECTORS
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BUSINESS RETENTION AND EXPANSION
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Nanaimo is a place of Infinite Possibilities New businesses and residents continue to locate in Nanaimo because of the desirable mix of modern infrastructure, affordable cost of living, access to all of the services that are essential for successful business operation and growth and the island lifestyle. The past year has revealed exciting new projects and investments that the Nanaimo Economic Development Corporation is proud to have played a part in bringing to our community.
MESSAGE FROM NEDC LEADERSHIP
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Sasha Angus
AJ Hustins
CEO
Chair
The Nanaimo Economic Development Corporation continues to strive towards developing and promoting the region as a destination for visitors, residents, innovators and investors. Through programming like business retention and expansion, business attraction, trade development, research and reporting, and our many tourism activities we are continuing to build a diverse and prosperous local economy. We are excited to work with our community partners, and proud to continue working toward our mission. For information about all of our activities and events, and for insights into the Nanaimo & Region economy, please visit investnanaimo.com and tourismnanaimo.com
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Nanaimo has seen an exciting amount of growth in the past year. We are thrilled to welcome new businesses to the community, and proud to support the fantastic companies that have worked tirelessly to provide household sustaining jobs and improve our local economy. Projects such as the new Conference Centre Hotel, Tilray Medical Cannabis facility, and the Divers Lake Innovation & Technology Park, as well as new transportation connections to Calgary and Seattle via the Nanaimo Airport are all clear indications that this is a prosperous time to be in Nanaimo!
The mission of the Nanaimo Economic Development Corporation is to build a prosperous community through economic opportunity NEDC Values We believe in free enterprise, fair profit and job creation for businesses of all sizes We maintain open, honest and transparent communication We encourage flexibility and diversity We are inclusive, supportive and empowering
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ECONOMIC CONDITIONS EMPLOYMENT In 2013 there were approximately 52,000 people employed in Nanaimo, which is an increase of 2,700 from 2012. Unemployment grew by 0.5% from 2012, as 3,000 more people were seeking employment compared to 2012. Nanaimo ranked second best among similar sized cities in BC for employment growth. The unemployment rate for Nanaimo (5.5%) was significantly lower than both the provincial (6.6%) and national (7.1%) rate. INCOME According to the latest data available, Nanaimo’s per capita income grew by 3.3% between 2009 and 2011. Nanaimo’s income distribution by source reflects the age structure of the population, with a slightly larger portion of income coming from Pension, Investment and Government Transfers compared to BC. Income from wages plus salaries grew from 60.1% to 60.2% between 2010 and 2011. Income from pensions and investments rose from 23.1% to 23.5% during the same time period.
BUILDING PERMITS Nanaimo had fewer new housing starts in 2013 (415) compared in 2012 (659). In 2013, building permit values ($116M) declined by 24.3% from 2012 ($153M). Additionally, $183M worth of major project construction started and will complete in coming years.
POPULATION The City of Nanaimo population inched up by 0.8% in 2013. Over a 5 year period, the population has grown 2.9% (2009-2013). Nanaimo ranked second among similar sized cities in BC for population growth. Provincial population growth over the same 5 year period was 3.9%.
2013 BUSINESS LICENSES BY INDUSTRY BUSINESS LICENCES BY INDUSTRY 1102
CONSTRUCTION 826
RETAIL TRADE 749
PROFESSIONAL, SCIENTIFIC & TECHNICAL SERVICES 589
OTHER SERVICES (EXC. PUBLIC ADMINISTRATION) 551
HEALTH CARE & SOCIAL ASSISTANCE
518
ADMIN. SUPPORT, WASTE MGMT & REMED. SERVICES 475
REAL ESTATE, RENTAL & LEASING 324
ACCOMMODATION & FOOD SERVICES 182
ARTS, ENTERTAINMENT & RECREATION
162
TRANSPORTATION & WAREHOUSING
146
MANUFACTURING
121
FINANCE & INSURANCE
108
WHOLESALE TRADE 69
EDUCATIONAL SERVICES
39
INFORMATION & CULTURAL INDUSTRIES AGRICULTURE, FORESTRY, FISHING & HUNTING
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UTILITIES
2
MANAGEMENT OF COMPANIES & ENTERPRISES
1 TOTAL: 5977
RESEARCH & REPORTING
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Economic Indicators Report A key component of both evaluating Nanaimo’s current economic and business conditions, to attract key industries and investment is the ability to provide timely and relevant information on the state of the regional economy. To that end, the NEDC released the Nanaimo and Region Economic Indicators Report, which provides this important information in a format that is relevant to businesses and investors.
PHOTO:LANDON SVEINSON
These economic indicators provide detailed information on economic statistics, regional demographics, business activities, business investment opportunities, commercial and residential real estate and other areas of regional economic concern. These benchmarks will be researched and reproduced on a quarterly and annual basis when new data sets become available. Future updates to the information contained in the report will be conducted by NEDC staff.
Several of the findings in the report are very encouraging, including a total GDP (Gross Domestic Product) of $3.867 billion. Also, among similar sized BC cities, Nanaimo is second only to Kelowna in terms of the share of the population with post-secondary credentials (63%, ages 25 - 64).
For the full report, [CLICK HERE]
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RESEARCH & REPORTING (CONT.) Economic Impact Studies Throughout 2013 and the first quarter of 2014 the NEDC released economic indicator reports for several of the region’s key industries. Arts & Culture, Technology and Tourism reports have been produced in an effort to understand the total benefit these sectors provide for our regional economy.
Arts & Culture This report revealed that the total direct gross output attributed to the arts and culture sector in Nanaimo was valued at $94 million in 2012. It is equivalent to $55 million worth of contributions to the provincial GDP, 874 jobs created, and $7 million in tax revenue to all levels of government. In addition to the direct economic impacts, the model estimates that when indirect and induced impacts are included, total gross output impacts in the province are $154 million, total GDP impacts are $83 million, 1,330 jobs are supported, and $12.8 million in tax revenue is generated. This confirms that the arts and culture sector in Nanaimo has a large economic footprint that creates an indelible mark in the region.
Moving forward with the support of the City of Nanaimo’s Cultural Plan, it seems clear that the arts and culture sector is set to thrive and extend its roots even deeper.
Click here for full report.
Technology The Nanaimo region has a vibrant and growing tech community. The companies in this sector see our region as a great place to develop and grow their businesses, with a competitive business environment and great quality of life for their employees. Nanaimo and Region is home to an estimated 350+ businesses that drive the region’s technology industry. In 2012 they generated $204.1 million in revenues, and had sectorrelated expenditures of $155.2 million. The technology sector had a total GDP impact of $199.0 million and a total household income impact of $133 million. With a total employment impact of 2,730 jobs, this sector generated $19.7 million in taxes. For every $1 million in industry output, the tech sector generates 14 jobs in the region.
Click here for full report.
Tourism There were 2,154 tourism-related businesses in Nanaimo and Region as of June 2013. Of these businesses, an estimated two-thirds have fewer than nine employees. Annual tourismrelated employment income in the Nanaimo region is estimated at $90.3 million, which is derived by multiplying the estimated number of tourism-related jobs (approximately 3,370) by the median employment income ($26,816) for the Nanaimo region as reported by the National Household Survey. Accommodators spend an estimated $20.9 million annually, including an estimated $5.32 million in wages, benefits and labour costs, more than $5 million in supply purchase and sub-contract costs, and over $880,000 in professional and business fees. Total annual visitor spending (i.e. tourism revenue) is estimated at $72.4 million. Of this total, $22.07 million accrues to the accommodation sector, $18.3 million to the retail sector, $15.8 million to the foodservice sector, $8.2 million to the entertainment sector, and the remaining $8.1 million to the transportation sector.
Click here for full report.
RESEARCH & REPORTING (CONT.) Business Conditions Survey
Visitor Experience Survey
In both 2012 and 2013 the NEDC reached out to the Nanaimo business community to gather feedback on the region’s business climate. The Business Conditions Survey was delivered to local businesses, obtaining Nanaimo companies’ impressions on matters including access to financing, staffing, capital investments, sales revenues, and general operating business climate. This survey presents us with the information we need to address many of the issues that most influence our businesses.
Tourism Nanaimo identified that additional annual research needed to be conducted to better understand our traveller. Working together with Vancouver Island University and Tourism Tofino, we developed the Visitor Experience Survey to gather the first set of primary research data collected for Nanaimo in over a decade. The first data collection took place in the summer of 2013 and we have plans for two data collections in 2014. This will give us a base to compare data year over year and help direct targeted marketing decisions.
To learn about the feedback we received from our region’s business owners,
To learn about the feedback we received from our region’s visitors,
[CLICK HERE]
[CLICK HERE]
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BUSINESS RETENTION & EXPANSION Quarterly Panel Seminars In 2013, the NEDC hosted four quarterly seminars to help shed light on important topics of interest for business owners. Based on two years of feedback from Nanaimo companies, the four topics selected for this series were (in order):
• Information gathering for businesses • Branding, marketing and sales • Strategic Planning • Succession Planning
These seminars were in panel format, with 4-5 local experts leading each discussion. This project was hugely successful, and was of great value for the many who attended.
For more information on each of these panel seminars, click here.
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BUSINESS RETENTION & EXPANSION (CONT.) Executive Peer Mentoring Program The Executive Peer Mentoring Program (EPMP) is a roundtable of business leaders that operate in a peer mentoring capacity, to identify and resolve business issues. This is a 2 hour meeting held once every quarter, and includes guest speakers on special business topics based on group input. The EPMP supports success and growth for participating
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companies, which includes private sector companies that have been in business for more than two years, and have revenues over $250,000/year. This program succeeds in increasing knowledge through shared experience. The EPMP assists with matters of revenue and employment, and improves opportunities for access to resources including funding. This program continues to adapt to the needs of participating companies.
NEDC BUSINESS SERVICES BUSINESS AND START-UP INTERVIEWS
RESEARCH AND INFORMATION RESOURCES
BUSINESS RETENTION AND EXPANSION
BUSINESS PLAN ASSISTANCE
Helping your business to find success in Nanaimo.
Valuable market information at your fingertips.
Growing our existing local companies.
Enter the business world with expert assistance.
FOSTERING COMMUNITY CONNECTIONS
TRADE DEVELOPMENT
BUSINESS ATTRACTION
WORKFORCE DEVELOPMENT
Making the most of community resources.
Assisting businesses to become globally competitive.
Highlighting Nanaimo as the clear choice for business.
Ensuring local businesses have the workforce they require to be successful.
BUSINESS RETENTION & EXPANSION (CONT.)
Sector Forums (2014) In 2014 the NEDC is expanding on a Business Retention and Expansion (BRE) program that was successful in 2012. The Nanaimo Business Counts program brings together business leaders grouped by industry sector to discuss the various challenges and opportunities present in their day-today operations. An added feature in 2014 is a pre-determined focus topic specific to each group. The topics are based on feedback received from the respective sectors over the past several years, and are listed to the right. This is an exciting program, and provides opportunities for the NEDC to not only learn from our business leaders, but to also provide value to individual companies and the business community at large. Look for a summation of this program at the end of 2014, which will also be included in the 2014 NEDC Annual Report.
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TOPICS
Tourism Stakeholder Programs
Manufacturing Managing efficiency and productivity Tourism Preparing to welcome more nonNorth American based tourists Retail Leveraging social media for local community businesses Professional, Scientific and Technical Importing talent vs. developing homegrown Arts and Culture Attracting new customers to the arts Real Estate Attracting more non-North American based buyers Construction Building Capital; Traditional and non-traditional financing Education Relationship building between education and business
There are several programs and publications that Tourism Nanaimo undertook in 2013 and will continue in 2014. We hope to be the catalyst for collaboration between industry stakeholders. Tourism Nanaimo regularly hosts stakeholder workshops focusing on key topics which help to support the achievement of the strategic plan.
Stakeholder participation programs Nanaimo Bar Trail Cedar Yellow Point Artisan Trail Flat Map Nanaimo Visitor Guide Brochure racking Web listings
MEDIA EXPOSURE
The NEDC engages in integrated campaigns using broadcast media, social media, newspapers, magazines and other forms of communications. We also engage in media and public relations, which aims to develop key relationships with regional, national and international media to influence a high level of positive coverage about Nanaimo region. The NEDC also published the first annual Business in Nanaimo magazine, highlighting key industry sectors, thriving businesses and notable success stories in the region. The goal of the publication is to showcase Nanaimo`s local economy. As we continue to grow and diversify our local economy, attracting new prospective investors and workers to the community will play an incredibly important role in our economic prosperity.
GETTING OUT THERE
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BUSINESS/ INVESTMENT Invest in BC Magazine
TRADESHOWS AND EVENTS
Salt Magazine
Pub Summit
Times Colonist CEO ad campaign
Vancouver Island Coast Economic
Monthly article in Nanaimo News Bulletin
Developers Association (VICEDA)
Business in Nanaimo Magazine
Tourism Consumer Shows (AB, BC, PNW)
Canadian Sport Tourism Alliance Media Shows & Events
Read This Year’s Issue of Business In Nanaimo Magazine.
TOURISM Partnerships with Tourism Vancouver Island • CTV Alberta & BC • Global TV Alberta • WestJet Up and Air Canada Magazines • Familiarization & Media Tour Support • Visitor Guide, Outdoor Guide, Wine & Culinary Guide You Won’t be Sorry Campaign (PNW) USA Today Various ad placements – NW Travel Magazine, Sunset Magazine, Salt, National Geographic, etc. Pic Nanaimo Contest
Tourism Vancouver Island Conference Meeting Professionals International Pod GROW Technology Conference
COMMUNITY EVENT SUPPORT Simon Sinek and David Marquet Chamber of Commerce AGM (Nanaimo Host) VIEA Summit Business Excellence Awards Top 20 Under 40, Vancouver Island Chamber of Commerce Business Achievement Awards (also support of establishing the NEW tourism award categories)
BUSINESS HIGHLIGHTS Tilray Medical Cannabis Tilray will be growing, processing and packaging for sale medical-grade marijuana inside a $3-million, 35,000-square-foot warehouse located at Duke Point. Privateer Holding’s new Canadian subsidiary purchased the building and expects to spend another $6.5-million to $7-million on capital improvements, including equipment required to raise high-quality marijuana plants. The venture capitalists might never have come to Nanaimo, or even considered crossing the border had they not been encouraged by the Canadian government. The NEDC helped to make the business case for Nanaimo, and secured the project over three other regions in Canada that were competing as potential locations for the Tilray facility. This new addition to the business community represents at least 40 new household-sustaining jobs.
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Divers Lake Innovation and Technology Park The Sirri Group in collaboration with Inuktun Services Limited plan to develop a massive Innovation and Technology Park in the heart of Nanaimo – a first of its kind development for the Mid-Island region. The NEDC played a strong role in bringing this project to our community. The 70,000 square foot Divers Lake Innovation and Technology Park will open in 2014 and is a major leap forward in the development of Nanaimo’s knowledgebased economy. It has already generated considerable interest from the IT and research and development sectors. Innovation, collaboration and partnerships are the keystone to the development of the knowledge based economy in Nanaimo and the NEDC is proud to be supporting the Divers Lake IT Park and the growth of the IT sector.
DIVERS LAKE IT PARK
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BUSINESS HIGHLIGHTS (CONT.) Conference Centre Hotel
Passenger Ferry Service
A 0.17-hectare lot on Gordon Street has The NEDC has worked diligently to secure GBLA R C H I T E CaT Spassenger only ferry service linking the been reserved for a conference centre hotel, which will make it easier for the centre to respective downtowns of Nanaimo and book larger conferences with more hotel Vancouver. The 68 minute trip would operate rooms within walking distance of the centre. using two high-speed passenger ferry vessels, The Nanaimo Economic Development carrying approximately 300 passengers each. Corporation helped foster the deal with SSS This project represents not only a fantastic Manhao – the B.C. affiliate of a major Chinese transportation connection, but also a boost to tourism company – and the company has the City of Nanaimo and regional economy. finalized purchase of the site with the City Many residents and businesses travel to the of Nanaimo for the hotel. The 240-room Lower Mainland, and the passenger-only ferry tower will have a swimming pool, shops, will make their trip that much easier. Nanaimo restaurants and connecting bridges to Piper will be more desirable to homebuyers because Park and Nanaimo’s conference centre. The its real-estate prices are significantly lower build, pegged at $50 million, is anticipated than those in the Vancouver area. to provide rooms for delegates and attract close to 70,000 Chinese visitors to the The introduction of a passenger ferry service Harbour City each year. The tourism operator from downtown Nanaimo to Vancouver is bringing much of its own clientele, while supports and promotes the economic promoting Nanaimo as a tourism destination health of Nanaimo while also improving the in China. transportation network across the region. The development will be a tremendous asset for the community as well as the conference centre, bringing in thousands of visitors to the community each year.
Look to next year’s NEDC Annual Report for an update on this service.
CONFRENCE CENTRE HOTEL
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BUSINESS HIGHLIGHTS (CONT.) WestJet to Calgary
Kenmore Air to Seattle
FedEx
In June of 2013, WestJet commenced a new non-stop daily service between Nanaimo and Calgary. This new service allows passengers the convenience of direct air service between these cities without the need to transfer in Vancouver. Nanaimo passengers are now able to conveniently access the many domestic and transborder flights available through WestJet’s Calgary hub. This also opens many new exciting economic opportunities both here in Nanaimo and in Calgary. More and more residents of central Vancouver Island have chosen to work in the oil sand projects, and this new service provides a very convenient travel option not previously available.
In March of 2014, Kenmore Air commenced a new non-stop service between Nanaimo and Seattle. The new service is ideal for both leisure and business travellers to take advantage of low cost connects from Seattle to the rest of the USA via Sea-Tac Airport. Attracting a carrier to provide service to the Pacific Northwest has been a long term goal of the Airport. Additional routes are a key step in growing the Nanaimo Airport to meet future demand.
FedEx Express introduced a daily flight into Nanaimo Airport in February of 2014. FedEx packages were previously flown into Vancouver and then delivered by ferry to Nanaimo. FedEx said the midIsland’s strong small-business sector and growing high-tech industry drew the courier’s interest. FedEx spokesman James Anderson said the flights are “a sign that we have faith in the economic conditions of the region. It’s a significant investment for us and one that we don’t take lightly, but also one that we’re quite excited about.”
To support and best leverage this new connection, the NEDC organized a trade mission to Calgary in September 2013, and conducted a number of fruitful meetings with various new business connections in the city.
The NEDC worked closely with the Nanaimo Airport Commission to secure the Kenmore Air Seattle flight, making a strong business case for Nanaimo as an excellent location for this transportation connection. Transportation is an important driver of economic activity in a host of sectors.
The NEDC played a role in bringing this FedEx presence to Nanaimo, after receiving expressions of interest from a number of regional companies.
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BUSINESS HIGHLIGHTS (CONT.) In addition to the blockbuster movies filmed in the Nanaimo region in recent years including Twilight, Man of Steel and others, Nanaimo was set the scene in 2013 for Gareth Edward’s sci-fi reboot of the city-destroying Godzilla. More than 300 crew members landed in Nanaimo for the eight-day central Island shoot and used local extras, staff and equipment. The film was anticipated to have pumped up to $100,000 a day into the local economy. The NEDC helped facilitate conversations with the City of Nanaimo and ensured that the needed permits flowed smoothly. The NEDC helps to ensure that we remain “film friendly” as Hollywood turns its attention to Vancouver Island. This is the second blockbuster filmed in the Nanaimo area in the last three years. The old Cassidy Hotel scene of Superman: Man of Steel in 2011. The popular Twilight series filmed in the area two years ago. The film industry is important, and when a large movie production comes to town it means hundreds of thousands of dollars a day going into the Nanaimo economy. Film crews often hire local catering companies, fill hotels and motels and rent equipment from local businesses.
FILMING PROJECTS
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BUSINESS HIGHLIGHTS (CONT.) Tourism Destination Development PRODUCT DEVELOPMENT Tourism product development was identified as a key strategic goal in the region’s Tourism Strategic Plan. To support this goal the Tourism Nanaimo team developed the Cedar Yellow Point Artisan Trail, showcasing 24 artisans, restaurants and attractions in that region, and increasing the breadth of activities for travellers to do, enticing them to stay longer in our destination. For more information about the Cedar Yellow Point Artisan Trail, click here
TOURISM DEVELOPMENT FUND To further support this goal the Tourism Development Fund (TDF) was established in 2013, a fund totalling $125,000 annually to assist community groups and businesses to attract overnight visitors to Nanaimo and Region. In 2013 TDF funds were disbursed to support a wide variety of projects and organizations.
These included: • The Nanaimo Boathouse Society for a feasibility study for their proposed Nanaimo Boathouse & Paddling Centre • The Nanaimo Aboriginal Centre in support of hosting the First Nations Coming Together soccer tournament • The Nanaimo Region Rail Trail Partnership to help the organization gain momentum for the completion of the rail trail through the community • NS3 for the development of exhibits for their mobile science programs • The Nanaimo Mountain Bike Club for the development of the Fine China Trail
• The Blues Society for a feasibility study on how to expand festivals and events in Nanaimo.
To learn more about the Tourism Development Fund, click here SPORT TOURISM Sport tourism, a $300M sector in BC, is defined as any activity in which people are attracted to a destination as a sport event participant or spectator, to attend sport
attractions or sport related business meetings. Tourism Nanaimo worked in collaboration with the City of Nanaimo Parks & Recreation department and the Vancouver Island Sport Tourism Council to develop bids and host site visits for organizations such as Equine Canada & Wakeboard Waterski Canada to attract future sport tourism events to Nanaimo. In December 2013 the City of Nanaimo announced that sport tourism will be transferred to the NEDC, as such we are working to develop a comprehensive sport strategy for release in 2014. MEETINGS, CONVENTIONS & EVENTS (MCE) The meetings, conventions and events sector represents a significant opportunity for growing Nanaimo’s overnight visitation and awareness. Many visitors who come to a destination the first time as a MCE delegate, return as a tourist at a later date. Tourism Nanaimo worked in collaboration with the Vancouver Island Conference Centre, where needed, to support the bid development process and host site inspections in order to attract new business to Nanaimo.
VISITOR CENTRE ACTIVITY The region’s new Visitor Centre at Northfield Rd. helps support the effective and efficient provision of Visitor Information Service, and continues to see growth in visitation year-round. In 2013 additional signage was installed on the Highway directing people to the Northfield Centre. For 2014 there will be continued progress with the exterior building signage in partnership with the City of Nanaimo. Visitor Centre staff operates a kiosk inside the historic Bastion in partnership with the Nanaimo Museum, as well as a mobile visitor centre in the form of a Segway from May to September. The Visitor Centre staff has focused heavily on educating other Vancouver Island Visitor Centres and their staff on the region’s activities and product. In 2013 we continued to support Gabriola Island with visitor centre training, and we will be hiring four summer students again this year. Visitor Centre staff continue to collect visitor statistics and manage distribution of collateral, providing great service to our visitors and stakeholders.
PHOTO:ARTEZ PHOTOGRAPHY
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2013 NEDC Board of Directors
2013 Tourism Leadership Committee
THANK YOU!
A.J. Hustins
Chair
Dan Brady
Chair
Andre Sullivan
Vice Chair
Andre Sullivan
Board Liaison
Dan Kucherka
Treasurer
Tara Atleo
Moira Jenkins
Secretary
Bruce Avis
The Nanaimo Economic Development Corporation staff and board would like to express gratitude for our community partners, stakeholders, supporters and the Nanaimo region. It is a great privilege and honour to shine a bright spotlight on this community, for residents, visitors and business leaders alike. We intend to continue our efforts to increase our region’s profile on the world stage, and look forward to connecting with you to discuss how we can work together to further our region’s economic prosperity.
Greg Baynton
Don Dempson
Bob Bennie
Margot Holmes
Dan Brady
Dave Ilyn
Frank Crucil
Scott Littlejohn
Ron Hartman
David Mailloux
Ian Howat
Sandra Petryk
Doug Kalcsics
David Rooper
Adrian Legin
Denise Tacon
Dr. Ralph Nilson
Dr. David Twynam
Charlie Parker
Dr. Nicole Vaugeois
Bruce Williams
Donna Vidal
William Yoachim
Elizabeth Williams
NEDC 2014. All Rights Reserved.