FEATURE REPORT:

A tantalizing tale of four New Brunswick cities

(By Alec Bruce) Whether it’s Moncton the “ smart ”, or Saint John the “ energetic ”, or the “ wise ”, or Miramichi the “hopeful ”, New Brunswick’s metropolitan areas are proving that they have the right stuff to compete in a global, knowledge-loving world. The proof is in the economic pudding: rising employment, an expanding creative class and international attention. Take note, Canada.

52 | Business Magazine | January/February 2010 City of Moncton

Greater Moncton Where minds thrive

Moncton Mayor George LeBlanc laughs when he recalls former New Brunswick Premier Frank McKenna’s famous comment about New Brunswick’s “urban hub”: It’s the Timex City because it takes a licking and keeps on ticking. That was more than a decade ago. Today, (which comprises the municipal communities of Moncton, Riverview and Dieppe ) is home to 125,000 people, the lowest unemployment rate in the province (less than six per cent), the highest job participation rate in the Atlantic region (more than 67 per cent), the most robust commercial and real estate market east of , and the highest per capita income in the Atlantic provinces outside of Halifax Regional Municipality. It’s not a bad record for a city that, only 25 years ago, faced a fretful future following the closure of its historic and signature industries: regional retail and railway manufacturing enterprises. But, as LeBlanc says, “It really is no surprise that our motto is ‘resurgo’, which is Latin for ‘rise again’. Overcoming challenges is one of the things we do best. The fact is that we are a small city that exceeds expectations.” On the other hand, he says, “We also know we can’t rest on our laurels. We have to keep going, keep pushing. We must never forget what it means to be a true city of I_jkWj[Z _d ed[ e\ j^[ mehbZi Jef - _dj[bb_][dj Yecckd_j_[i" choice. And this is quality of life, sustained ekh beYWj_edi Wh[ i_cfbo Xh_bb_Wdj0 prosperity and low cost of living.” CedYjed ?dZkijh_Wb FWha WdZ 9Wb[Zed_W ?dZkijh_Wb ;ijWj[i$ To secure these civic bounties, Greater Moncton’s three municipalities have c_Z6dX$W_Xd$Yec +&, .+-#&-&& focussed on information and IZa/ communications technology as key to the mmm$cedYjeddX$YW ;Vm/ +&, .+/#-(&/ future. At the same time, private companies have collaborated in its growth as a telecom- centric economy, adding more 20,000 management, finance, health services, technology, and education jobs since the ,++ CW_d Ijh[[j early 1990s. CedYjed" D8 ;'9 ';.

Online extras: ABMonline.ca | 53 All of which has produced a greenfield of Atlantic Lottery Corporation, which community is rapidly becoming one of the knowledge, innovation and technical manages the Atlantic region’s gaming world’s savviest cities. That is, if we are to wizardry. The private-sector list of industry, is a world leader in technical believe the Intelligent Community Forum achievements and ventures is as long as it is advancement. It was the first company of its (ICF) , an international think tank, based in varied. kind in the country to introduce barcode the United States, which studies economic Rogers, for example, is one of Canada’s readers/wands to validate tickets. It was also and social development. largest multi-faceted communications the first in the nation to develop a PC-based The organization recently ranked Greater companies, specializing in cable television lottery terminal and an IP-based terminal Moncton among the top seven of 21 and wireless services. It operates a 700- network. “smartest” cities in the world. This was after person, national back office and contact Indeed, from wired water meters to WiFi more than 400 communities spent months centre in Moncton’s downtown core, Internet service on city buses , from digital vying for the “Intelligent Community of the employing state-of-the-art technology and entrepreneurship to bold initiatives in e- Year” designation. round-the-clock customer care. health, e-learning and e-commerce – the As for taking a licking, this city is clearly punching above its weight class.

Saint John Where energy drives

Not long ago, former Saint John Mayor LocatingLocating iinn thethe ##11 Norm McFarlane spoke about his beloved * city of 122,400 souls the way every civic pplacelace ttoo dodo businessbusiness booster speaks about his home town: glowingly. “I don’t think there is any doubt that Saint John is the province’s economic isis prettypretttyy ssmart.mart. dynamo,” he said in 2007. “We’ve become New Brunswick’s ‘go-to’ community in a lot (and((aand wwee sshouldhoulldd kknknow)noww)) of ways. And that’s related to the fact that there is a lot going on here.” Flash forward two years, and the picture forms just a little differently. Last July, AfterAfter all,all, inin additionaddition toto beingbeing namednamed thethe bbestest placeplace toto ddoo businessbusiness Irving Oil and British Petroleum announced that they would not proceed bbyy KPMG,KPMG, GreaterGreater MMonctononcton hashas aalsolso beenbeen namednamed oonene ofof thethe toptop 7 with building a second refinery in the city, iintelligentntelligent communitiescommunities inin thethe world**.world**. dashing hopes of a $7-billion boon to the economy and a jobs bonanza not seen since Irving Shipbuilding won the federal AAdddd toto tthathat we’rewe’re tthehe fastestffaastest growinggrowing communitycommunity in Atlanticntic contract to build the navy’s frigates in the early 1990s. CCanada,anada, havehave fforecastedorecasted rretailetail salessales growthgrowth set to bbee 24.6%24 Still, the city’s current mayor, Ivan Court, insists on a stoically optimistic aabovebove tthehe nationalnational average,average, areare NNewew BBrunswick’sr HealthHealth Centre interpretation of events. “We are fortunate ooff Excellence,Excellence, aandnd aarere oneone ofof thethe mmostos affordable communitiescom in that over the past few years, we have been successful in positioning ourselves as an CCanada,anada, tthehe reasonsreasons toto llocateoca or expand in Greater Monctonn really energy hub and in diversifying our economy,” sstarttart toto aadddd up.up. he said last summer. “Early in our mandate, Council set a number of priorities and we remain committed to them. The city will aggressively pursue economic opportunity.” DDiscoveriscover fforo yourself why moremor companies areare makingm their ownn All of which is to infer that Saint John will intelligentintellige choice by choosingoosi Greater Moncton.ncto Contact us today.day. not easily relinquish its self-perceived role as New Brunswick’s leading industrial,

*2008 KMPG’s Competitive Alternativesernatives SStudytudy municipal powerhouse – not now, not ever. ** The Intelligenttelligent CommunityC Forum, a think tank that studies thethe economicecon and social development of the 21st Centuryury community.community. And, in fact, why should it? The greater municipal area is home to a fully employed labour force of more than

910910 MMainain Street,Street, suitesuite 110101 70,000 people, an unemployment rate of just Moncton,Moncton, NNBB E1CE1C 11G6G6 6.4 per cent, a median family income of 1 888888 5577-000077-0000 • ((506)506) 8858-955058-9550 nearly $60,000, average house prices BusinessBussiinesessss First.FFiirrsst. | LeLLeseses affairesafaffffafairereses d’abord.d’aboorrdrd. www.greatermoncton.orgwww.greatermoncton.org hovering in the $160,000 range, and a large cohort of highly skilled, well-educated young

54 | Atlantic Business Magazine | January/February 2010

Be happier making money here.

Among all the great reasons to locate in New Brunswick, our new lower corporate tax rate means you’ll enjoy increased prots — instantly. But that’s not all. Take advantage of reliable, lower cost energy and the brain power to manage your operations. The Intelligent Community Forum named not just one — but two — New Brunswick cities on their 2009 list of “Top Seven Intelligent Communities”. Our expert business development team at Business New Brunswick is here to help New Brunswick entrepreneurs be more successful: • Visit our website to see our comprehensive services, and read about New Brunswick success stories. • Talk to us about nding leading business experts, sources of nancing, and export market intelligence. • Explore ways to bring your innovative ideas to life. • Learn how our business climate, including lowered corporate and personal taxes, can help you be more protable. • Expand your business operation, or your exports, or both! Contact our business development team for expert advice.

Be more protable. Be in New Brunswick.

Being in business in New Brunswick makes good business sense. Visit www.NewBrunswick.ca or contact our team directly at 1 800-665-1800 City of Saint John

people, courtesy of the University of New Meanwhile, information and refinery announcement, the construction of Brunswick at Saint John and the New communications technology promises to its new Liquified Natural Gas terminal at the Brunswick Community College. supplement Saint John’s traditional Canaport facility is nearing completion – It also boasts the second-largest – and economic sectors with lucrative, high-tech promising direct labour benefits of between one of the busiest – seaports in Atlantic service companies and software developers. $26-million and $30-million in the near Canada, which Saint John port authorities Propesj, for example, is a private sector, non- future. Beyond this, say Enterprise Saint John describe this way: “We have some of the profit organization dedicated to the growth officials, “Wind and tidal energy are forms of most modern and best-equipped terminal of entrepreneurship, innovation and the renewable energy that are being explored and facilities anywhere. Our transportation expansion of the ICT sector in the city. experimented with. Already, a good portion of infrastructure, together with our roll- Through its efforts, dozens of firms, creating New England’s energy originates from New on/roll-off capacity and other specialized hundreds of jobs, have been launched over Brunswick.*” cargo handling and storage facilities, makes the past three years. In other words, there is – as former Mayor the port highly competitive in the North Still, in the end, Saint John is all about MacFarland might declare – a lot going on in American marketplace.” energy. Despite Irving Oil’s disappointing this port city.

56 | Atlantic Business Magazine | January/February 2010 City of Fredericton

Fredericton These factors have helped secure the city as and administration and support, waste a Mecca for the young, the skilled and the management and remediation services. Where knowledge revives upwardly mobile. The labour force tends to be All of which has bred other compelling more youthful (the median age is 38.4 years, advantages: more businesses per capita Of New Brunswick’s three major, southern compared with the provincial average of 41.5 (approximately one for every 14 people) than cities, Fredericton, the seat of the provincial years) and affluent (the average family income almost any other location in the Atlantic government, has always considered itself... is $82,137, compared with the New Brunswick provinces; retail sales of nearly $1.4-billion in well, not exactly superior, but certainly the best mean of $68,465). And the employer base 2009, or roughly 23 per cent greater than the equipped to meet the knowledge-economy tends to skew towards secure, white collar national average; a record-breaking $157.1- challenges of the information age. opportunities. million in new construction in 2008; and the If Saint John is a tough-minded working Indeed, apart from CFB Gagetown, the lowest property taxes among all New man and Moncton is a hard-scrabble provincial government, NB Power, the Brunswick cities. entrepreneur, then Fredericton is a university- university sector, the local health authority It would be boastful, even rude, to claim bound research scientist. Or, perhaps, it’s a and school district, the largest job generators Fredericton is, indeed, marvellously equipped public servant with one too many advanced are in fields such as professional, scientific to meet the knowledge-economy challenges degrees to his name. and technical services; arts, entertainment of the information age. It would also be In any case, this municipality of 85,700 and recreation; educational services; right. people (124,170 if you account for the Greater Fredericton Region’s bedroom communities) can certainly support its boast as the “Knowledge-based Capital” of New Brunswick. It’s home to 70 per cent of the province’s R&D firms and institutions, including the National Research Council’s Institute for Information Technology Canada and the nation’s largest per capita engineering cluster. It is little wonder the city was named one of Canada’s Top 10 places to live in 2009 (for the third straight year ) by MoneySense magazine or that Fredericton has been recognized twice as one of the Top Seven Intelligent Communities of the World by the Intelligent Community Forum of New York. “We are thrilled to add another accolade to our growing list of achievements,” gushed Mayor Brad Woodside in May after the MoneySense announcement. “We are committed to providing our residents with world-class infrastructure and further enhancing our quality of life.” Unlike other communities in New Brunswick, Fredericton obtains its economic momentum from the ever-present hand of Government, six accredited universities and the proximity of CFB Gagetown (one of the biggest military training bases in the Commonwealth, which pumps upwards of $200-million a year into the municipal economy).

Online extras: ABMonline.ca | 57 Miramichi Where hope survives

The relief in Miramichi Mayor Gerry Cormier’s voice was palpable last February. Umoe Solar NV, a Norwegian company with deep pockets and great expectations, had just announced plans to build a $600-million solar cell factory on the site of a shuttered paper mill. It also expected to hire 350 people from the local labour force. “This is good news in these tough economic times,” Cormier said. “No kidding” was the general reaction in a city Finall y, that has been hit hard over the past couple of An MBA Prog ram as unique as you... years – not just by the global economic recession, but by the erosion of its traditional, resource- • Gene ral MBA (pa rt-time and full-time) oriented industrial base. Like many communities • MBA with Concent ration in Ent rep reneu rshi p, in central-north New Brunswick, far from the • MBA with Pro fessional Tracks, including: • MBA/LLB comparatively robust south, this municipality of • MBA Engineering Management 37,000 (where the unemployment rate varies from • MBA Spo rt and Rec reation Management a low of 11 per cent to a high of 25 per cent, depending on the season) relied on the forestry, mineral extraction and fishing as steady revenue Mas ters of Business Adminsit ration and job generators. FACU LTY OF BUSINESS ADMINI STR ATION But when the Canadian dollar began to rise, Unive rsity of New Brunswick F redericton Tel: 506.453-4766 Fax: 506.453.3561 and commodity prices began to fall, major mbacon tact@un b.ca | ww w.business.unbf.ca employers closed operations and laid off workers, leaving places like Miramichi with a bad case of naval gazing. Indeed, when Cormier took office in 2008, he was quick to acknowledge, “People are looking for some new ideas. They want something a little different, something new.” Umoe , which bought the former UPM- Kymmene mill shut since 2007 , certainly seems to fit the bill. In September, the firm signalled its long-term interest in New Brunswick by applying for $2.9-million in funding from the Opportunities Agency, in part to keep two post-doctoral, seven PhD and five Master’s of Science researchers busy over the life of the project. It also asked Business Brunswick for financial aid . Over the past year, government funding totalling $33-million has provided incentives for private investments amounting to $70-million. According to Enterprise Miramichi (one of 15 Community Economic Development Agencies in New Brunswick), these funds “assisted to create, expand, upgrade and diversify many businesses .” The strategy now is to encourage further development of the value-added manufacturing sector (where Umoe firmly belongs), knowledge and tourism industries, aerospace, health care and bio-energy all while attempting to bolster the forestry and fishery. Currently, according to , the municipality’s top three industrial employers are health care and social assistance, retail trade, and manufacturing. To be sure, it’s a very tall order. But the one resource Miramichi never seems to run out of is hope.

58 | Atlantic Business Magazine | January/February 2010