NANAIMO ECONOMIC DEVELOPMENT CORPORATION ANNUAL REPORT
2014
TABLE OF CONTENTS Nanaimo is a place of Infinite Possibilities As a community we are perfectly positioned to become an economic and cultural leader in the Pacific Northwest, and we are taking considerable steps to achieve that status. Through supporting the growth of local entrepreneurs and businesses, attracting new business investment and visitors to the region, and working with regional partners in the growth of key industry sectors, the Nanaimo Economic Development Corporation is showing the world that Nanaimo is a place of Infinite Possibilities. 02 MESSAGE FROM LEADERSHIP 03 MISSION, VALUES & THANK YOU 05 ECONOMIC CONDITIONS 07 BUSINESS RETENTION & EXPANSION 09 BUSINESS HIGHLIGHTS 13 TOURISM ACTIVITY 17 NEDC BOARD OF DIRECTORS & TOURISM LEADERSHIP COMMITTEE 01
MESSAGE FROM LEADERSHIP
AJ HUSTINS
SASHA ANGUS
CHAIR It has been only three years since the Nanaimo Economic Development Corporation (NEDC) began operations, and much has been accomplished in that short time. Private sector success stories, additions to transportation infrastructure and encouraging economic indicators all point to the same conclusion: The Nanaimo region is not only well-positioned for economic prosperity, we are already
This is an exciting time for the region, and with the hard work of the NEDC Staff, we can expect even more economic growth and international attention in the months and years to come. experiencing it!
CEO The Nanaimo Economic Development Corporation (NEDC) is a trusted resource and authority for business in the Nanaimo region. We as an organization and as a community have had another successful and productive year in 2014. Our team at the NEDC works every day to position the Nanaimo region as a desirable location for living, working and playing. I’d like to personally acknowledge the hard work of our staff, guidance of our trusted Board, collaboration of our community partners and determination of our regional business
On behalf of the NEDC, I’d like to thank you for a prosperous 2014, and for the many successes sure to come! leaders.
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MISSION & VALUES
Our mission is to build a prosperous community through economic opportunity.
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THANK YOU! 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.
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ECONOMIC CONDITIONS ECONOMIC INDICATORS REPORT A key component of both evaluating Nanaimo’s current economic and business conditions, and attracting key industries and investments is the ability to provide timely and relevant information on the state of the regional economy. To that end, the NEDC released the 2014 Nanaimo and Region Economic Indicators Report, which provides this important information in a format that is relevant to businesses and investors. This report provides detailed information on economic statistics, regional demographics, business activities, business investment opportunities, commercial and residential real estate, and other areas of regional economic concern. Access the 2014 Economic Indicators Report at www.investnanaimo.com
EMPLOYMENT In 2014 there were approximately 47,000 people employed in Nanaimo & region, which is an increase of 2,400 from 2013. Unemployment grew by 0.2 percentage points from 2013, as 200 more people were seeking employment compared to 2013. Nanaimo ranked second best among similar sized cities in BC for employment growth. The unemployment rate for Nanaimo (5.8%) was significantly lower than both the provincial (6.1%) and national (7.1%) rates.
INCOME According to the latest data available, Nanaimo’s per capita income grew by 6.4% between 2010 and 2012. 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 2012. Income from pensions and investments rose from 23.1% to 23.7% during the same time period. 05
SNAPSHOT OF NANAIMO’S GDP Gross domestic product (GDP) measures the value of final goods and services produced in the economy. Changes in GDP are the standard measure of economic growth.
Nanaimo accounts for approximately 2.1 percent of BC’s GDP. Since 2009, Nanaimo’s GDP has grown by 6 percent to $3.9 billion. Growth in GDP has primarily been driven by the service producing sectors including health care, transportation and warehousing, educational services and food and accommodation.
BUSINESS LICENSES BY INDUSTRY Construction 987 Real Estate, Rental & Leasing 818 Retail Trade 814 Professional, Scientific & Technical 730 Other Services (except Public Admin) 576 Helathcare & Social Assistance 545 Admin & Support, Waste Mgt & Remediation 447 Accomodation & Food Services 326 Arts, Entertainment & Recreation 166 Transportation, Warehousing & Storage 155 Manufacturing 142 Finance & Insurance 123 Wholesale Trade 99 Education & Training Services 65
POPULATION The City of Nanaimo’s population grew by 1.5% (88,869) from 2013 to 2014. Over a 4 year period, the population has grown 3.6% (2011-2014). Nanaimo ranked second among similar sized cities in BC for population growth. Provincial population over the same 4 year period was 2.93%
Info & Cultural Industries 36 Agriculture 13 Utilities 3 Management of Companies 1
BUILDING PERMITS New housing construction in 2014 increased by 38.6% over 2013 levels. In 2014, building permit values ($229M) increased by 90% from 2013 ($120M). 2015 is predicted to increase by 13% over 2014 levels. 06
BUSINESS RETENTION & EXPANSION The retention and expansion of local businesses that have made the Nanaimo region their home is a fundamental strategy for the NEDC. While economic development efforts also include attracting new businesses, this program is designed to support the existing business base. Research across North America indicates that 60%-80% of new job creation is generated by existing businesses. The Nanaimo Economic Development Corporation business retention and expansion program is focused on creating
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a process in the community to support these businesses by building an ongoing dialogue and providing assistance in resolving issues, removing obstacles and expediting growth. The NEDC is interested in hearing what our businesses need from us, so that we can develop our work plan to impact their real concerns and make a difference. To that end, NEDC staff met with eight groups of industry representatives throughout 2014, and discussed the various challenges and opportunities that affect each sector.
2014 BUSINESS SECTOR FORUMS MARCH 25 Manufacturing: Managing efficency & productivity APRIL 29 Tourism: Preparing to welcome more non-North American based tourists MAY 27 Retail: Leveraging social media from community businesses
JUNE 24 Professional, Scientific & Technical: Importing talent vs. developing homegrown
SEPTEMBER 30 Real Estate: Preparing to welcome more non-North American based buyers
OCTOBER 16 Arts & Culture: Attracting new customers to the arts OCTOBER 28 Construction: Attracting, training & retaining the best NOVEMBER 25 Education: Relationship building between education and business
To access the 2014 Business Retention & Expansion Report, visit www.investnanaimo.com 08
BUSINESS HIGHLIGHTS SQUAREONE CO-WORKING SPACE & TECHNOLOGY INCUBATOR In July 2014, the Nanaimo Economic Development Corporation and Innovation Island launched SquareOne, the region’s first technology incubator and co-working space. SquareOne provides office space, expertise, and resources to start-up entrepreneurs and other out-of-thebox thinkers. This new community asset continues to build on the momentum in the region’s technology sector, creating an ecosystem that assists innovative entrepreneurs to grow. The Nanaimo region has a vibrant and growing startup community. With an economic impact of more than $200 million per year, the region’s technology sector provides thousands of household sustaining jobs. Supporting entrepreneurs to think big
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and connecting them to the resources they need to scale is what SquareOne is all about. SquareOne provides access to leading edge advisory services, product development programs, and mentoring resources including an Executive-InResidence. In addition, workshops, seminars, and networking events are held regularly to provide further access to expertise for the resident businesses to grow bigger, better, faster. Visit the SquareOne website at: www.thinkbigatsquareone.com
TOWNSQUARED In 2014, the Nanaimo region has become the first community in Canada to partner with Townsquared (townsqd.com), a free and private online network for local business owners and employees within their neighborhood. The launch effort was led by the Nanaimo Economic Development Corporation, along with community partners: Greater Nanaimo Chamber of Commerce, Downtown Business Improvement Association (DNBIA), Innovation Island, and Community Futures Central Island. This is a wonderful opportunity for the region’s business community to be at the forefront of connectedness and innovation. The Townsquared platform is a fantastic tool that allows businesses in our region to communicate more effectively, source new
income streams, and to create new and lasting partnerships within their geographic area or among industry peers. Through collaboration, business owners can improve the economic prospects of their individual businesses and the city in turn. Townsquared has been used by business owners to ask and answer operational questions, discuss crime and safety, organize marketing partnerships, engage with government organizations, and share recommendations and resources.
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BUSINESS HIGHLIGHTS HELIJET In 2014, the Nanaimo Economic Development Corporation played a key role in securing a new transportation connection with the Lower Mainland. Having started in March 2015, the Helijet passenger helicopter service connects downtown Nanaimo and downtown Vancouver via Helijet’s 12-passenger, twinengine, two-pilot Sikorsky helicopters. Equipped to operate in daylight, after dark, and in most inclement weather, the Sikorsky S76 helicopter represents a great asset for Nanaimo’s travellers.
This new link between the Nanaimo region and the lower mainland provides more choice for business travellers and tourism, and is a positive addition to our local business community.
PHOTO COURTESY OF HELIJET
The NEDC was proud to make the business case for Nanaimo as an ideal location for
the Helijet service. This transportation connection is another addition to one of Nanaimo’s greatest competitive advantages: connectivity with the BC Lower Mainland.
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The full economic analysis is available at www.investnanaimo.com/tilray
TILRAY MEDICAL CANNABIS Tilray is one of Canada’s leading producers of medical cannabis, and is both a successful a private sector investor and one of the area’s top 10 employers. The company has had an impact on the region through its construction and subsequent operation of a 60,000 square foot, state-of-the-art research and production facility and the proposed expansion of its operation and workforce. The total direct, indirect and induced economic impacts of the construction and operation of Tilray’s Nanaimo facility in 2014 are estimated to be $48.1 million in total economic output in BC and $27.4 million in total provincial GDP. Tilray has contributed just over $3.2 million in direct wages and salaries in the local market place, total employment of 357 full time equivalents (FTEs) in BC and $8.5 million in tax revenue for all three levels of government (Q1 2015) The NEDC has been privileged to have worked closely with Tilray to bring them to the region. Tilray has proven themselves to be incredible corporate citizens and the household sustaining jobs that they have
created support literally hundreds of families across the region. In December of 2014, the Nanaimo City Council approved a rezoning application that, pending additional regulatory approvals from Health Canada, sets the stage for Tilray to amplify its impact, not only in helping patients and physicians, but through additional investment, job creation, tax payments and increased manufacturing capacity. On the drawing board are plans for a second facility that is 4-5 times the size of Tilray’s existing facility that has the potential to create hundreds of new direct and indirect jobs in Nanaimo, along with millions of dollars in economic output. Job creation, economic output and tax revenue may be the quantifiable measures of Tilray’s financial contribution but
Nanaimo’s economic impact study does not ignore the human impact that Tilray has on the local community, home to generations of some of Tilray employees. The growing enterprise has also attracted new residents thanks to employment opportunities for a diverse pool of professionals.
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TOURISM ACTIVITY MARKETING CAMPAIGNS In 2014 Tourism Nanaimo participated in a variety of marketing campaigns to grow destination awareness and exposure in the Alberta, BC and Seattle markets. • Go Vancouver Island Spring (Alberta / BC) • CTV campaign Spring/Summer (BC) • You Won’t Be Sorry Summer (Seattle/Pacific Northwest) • BC Games #ExploreNanaimo July (Local Market / BC Games Visitors) • Seattle Times Fall (Seattle)
VISITATION & OCCUPANCY TREND 2014 was a strong year for tourism in Nanaimo with visitation from key markets (Alberta, BC, US, China) up. Average occupancy in Nanaimo rose 3.4% (YTD Nov), airport traffic was up 19.5% and the VICC saw an increase of 1.8% in delegate days. 02 13
Nanaimo and Vancouver Island was featured on the morning news in Portland as part of the launch of the You Won’t Be Sorry Campaign. Coverage of this type makes a significant impact on awareness that can be seen by a spike in visits to www.tourismnanaimo.com.
BC Summer Games #ExploreNanaimo reached 5,000 users in just 3 weeks, enticed 907 people to post with the #explorenanaimo tag, created 118 offers from local stakeholders and resulted in an 18% increase in Tourism Nanaimo’s followers on Facebook, 15% increase in Instragram followers and 13% increase in Pinterest over the short campaign period.
SPORT TOURISM, MEETINGS, CONVENTIONS & EVENTS Together with the Vancouver Island Sport Tourism Council, Tourism Nanaimo attended the Canadian Sport Tourism Association annual tradeshow and marketplace. Tourism Nanaimo was one of 4 communities that identified an opportunity at CSTA and submitted a multi-community bid to host the National Women’s Under 17 Hockey Championships in 2016 (decision pending). Tourism Nanaimo, together with stakeholder partners, supported bringing 2 significant events to town – the CANDO conference (450 delegates) and the Century Flying Club (200 attendees). Annually, Tourism Nanaimo supports business development by exhibiting at Tete-a-Tete and CSAE, both events organized through the Canadian Association of Society Executives to provide exposure for Nanaimo to key meetings planners from across Canada.
MEDIA COVERAGE & FAM (FAMILIARIZATION) TRIPS Tourism Nanaimo participated in a variety of media tradeshows and marketplaces, and hosted media on FAM (familiarization) trips, to grow awareness of Nanaimo & Region as a destination through earned media coverage in magazines, blogs, newspapers and online. 2014 media relations efforts resulted in significant, influential media coverage in publications such as En Route, USA Today, and the Huffington Post. A sample of the coverage includes (but is not limited to):
• Air Canada En Route Magazine
• CalgaryHerald.com
• KING 5 Evening Magazine from Seattle
• Western Living
• TSN Live Broadcast
• Northwest Travel Magazine
• usatoday.com
• Komo News in Seattle
• Huffingtonpost.com
• Yahoo Travel
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TOURISM ACTIVITY STAKEHOLDER PROGRAMS
VISITOR SERVICING
Tourism Nanaimo continues to offer a variety of • Visitor Centre staff provided information to 13,675 visitors in 2014. stakeholder programs that are popular with • The downtown summer Visitor Centre location was moved from local tourism businesses. In particular, the ground floor of the Vancouver Island Conference Centre to the the Cedar Yellow Point Artisan Trail Bastion, resulting in a 46% increase in visitors serviced at the more and Nanaimo Bar Trail programs visible location. grow in popularity each year with the number of buy-in partners growing.
• For the 2nd year in a row Tourism Nanaimo ran its mobile visitor servicing Segway program to reach out to visitors along the harbourfront.
• Event-specific visitor servicing was provided for our 2 cruiseship visits, a variety of large conferences, BC Summer Games, VIU student welcome day, Marine Festival and Dragonboat Festival. • Distributed 110,000 Experience Nanaimo visitor guides through BC Ferries, in the lower Mainland, on Vancouver Island, to BC’s Visitor Centres and through Nanaimo’s visitor centres.
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TOURISM DEVELOPMENT FUND Tourism Nanaimo awarded $82,000 in grants through the Tourism Development Fund program to support 10 organizations with initiatives that benefit tourism and growth in overnight visitation. Projects included (but are not limited to): • VI Endurance – Nanaimo Ocean Swim
• Feasibility Study for a new attraction Deep Ocean Discovery Centre
• Riptides Swim Team – upgraded starting blocks for higher level competitions
• BC Parks / SFN – Business Plan development for Newcastle Island
• Wordstorm Society of the Arts – Cascadia Poetry Festival
• Nanaimo Aboriginal Centre – Aboriginal Soccer Tournament (700+ participants)
• NS3 – Science Centre exhibits & activities
• Fine China Trail - Trail Development
Tourism Nanaimo saw significant growth in its online channels and traffic as a result of marketing efforts in 2014. This includes:
63%
Growth in website traffic & users
52%
Growth in Facebook Fans
28%
Growth in Twitter Followers
200%
Growth in Instagram Followers
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2014 NEDC BOARD OF DIRECTORS
A.J. Hustins CHAIR Andre Sullivan VICE CHAIR Dan Kucherka TREASURER William (Bill) Anderson SECRETARY Greg Baynton Kelly Bissell Dan Brady Gloria Hatfield Ron Hartman Ian Howat CITY APPOINTEE Doug Kalcsics Adrian Legin Signy Madden Dr. Ralph Nilson Charlie Parker Carla Smith Chief John Wesley SNUNEYMUXW FIRST NATION
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TOURISM LEADERSHIP COMMITTEE
Sandra Petryk CHAIR Dan Brady NEDC BOARD REPRESENTATIVE Raj Banga Leo Boon Margot Holmes Dave Ilyn Douglass Legg Scott Littlejohn David Mailloux David Rooper Denise Tacon Dr. David Twynam Dr. Nicole Vaugeois Geoff Wallace Elizabeth Williams James Young
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