Charts and Graphs Won't Attract Jobs

In my last posting I commented on the area’s employment outlook with particular emphasis on Collingwood as it is the regional economic hub of the Georgian Triangle. 2007 was yet another year of heartbreak with not one but two local manufacturers closing their doors eliminating in the process approximately 500 jobs. Having come from a manufacturing background, one with one of the last year’s casualties Goodyear, I consider myself reasonably qualified with respect to my beliefs regarding the future of industrial/manufacturing jobs in Collingwood.
Two or three years ago, my personal prediction was that Collingwood would loose several of its larger industrial employers in a 3 to 5 year time span and unfortunately this has in fact unfolded. This is not a situation unique to Collingwood and area. A recent article in McLeans magazine suggested that as many as 300,000 manufacturing jobs have been lost in Canada in recent years stemming from a variety of factors including cheap labour in countries such as Mexico and China, the ongoing restructuring by the North American auto manufacturers and more recently, the meteoric rise of the Canadian dollar. Whatever the reason, higher paid industrial/manufacturing jobs are disappearing yet Canada’s economy as a whole is performing very well and unemployment figures are at near record lows. Why? Because manufacturing jobs are very quickly being replaced by positions in other sectors such as resources (oil and gas), construction, technology and knowledge based industries.
As with any business, a strategy for growth must be based on the fundamental principle of going after business based on where the opportunities exist. For example, I am not going to expand my real estate practice by target marketing to an area(s) where properties are not being listed and sold. Instead, an assessment of the local real estate market will highlight where the opportunities for sales are. Following that, a strategy needs to be developed to effectively go after that business. Pursuing job creation initiatives is no different. First, identify what the strong growth industries today are. Secondly, determine what type of employment opportunities can “realistically” be attracted to Collingwood given our geographic location and other amenities attractive to those businesses such as taxes, utility costs, the available human resources, housing etc. Lastly, you develop a strategy to aggressively pursue the job creation opportunities before you that present the best chance of success. I am not for an instance suggesting that this is easy. It requires research followed by a well thought out aggressive campaign that will attract new business to the area for which the area is best suited to support.
Frankly, I question if Collingwood has such a defined strategy. Since the closure of the shipyards in 1986, the municipality has been grossly ineffective in attracting any significant new employment to backfill the jobs being lost in the manufacturing sector. What’s even more disconcerting are the apparent beliefs coming from the Town’s Economic Development department. In reviewing the Town’s Economic Development website, I note the following quotes:
- “Existing businesses will account for as much as 90% of economic growth in a community.”
- “70% of growth will come from within the industrial sector.”
Both of these statements would appear to be grossly inaccurate given the number of industrial jobs lost in recent years by the closures of “existing businesses” that are not expanding, but leaving. Further, in visiting the Town’s Economic Development website, even a cursory glance yields access to a multitude of studies and analysis’ quoting all matter of facts and figures. While worthwhile in its content, this proliferation of research has yet to and will not on its own, effectively deliver meaningful job creation opportunities to Collingwood. The phrase “paralysis by analysis” comes to mind. Another quote from the website is as follows:

"The Town must move quickly to replenish the inventory of employment lands within the community in order to help re-balance residential to non-residential development."

Can we possibly embark on a plan to acquire and develop additional employment land when the needs of potential new employers have not be accurately identified? A "build it and they will come" attitude alone will not bring employment expansion to Collingwood and area without first determining what is required to satisfy the needs of potential businesses coming here.
During the three years remaining for the current Council, I expect we will unfortunately see yet another plant closure, or two. As a real estate practitioner, I am no different than any other local business, retail, service or otherwise. My livelihood and yours, depends on a strong local economy and that is one of the fundamental roles of government, municipal or otherwise. With Canada’s current economy performing so well in a variety of sectors, it’s time for Collingwood to take a proactive position with respect to creating some meaningful employment opportunities before the next recession arrives. It's going to take more than a website full of charts and graphs to draw business to the area and the time to act is now!

Our Future Economy

I consider myself fortunate to have had a demanding and varied corporate management background with the experience gained now serving me well as a real estate broker. I first arrived in Collingwood in 1985 as the result of a corporate transfer with Goodyear Canada. The following two plus years of my tenure at Collingwood's hose plant were tumultuous ones which included the failed hostile takeover attempt of Goodyear by British financier Sir William Goldsmith which cost the company hundreds of millions of dollars in debt to fight off. Predicting the ultimate demise of the Collingwood plant in 1987 (I was 20 years ahead in my prediction) I left the company and subsequently spent the next 11 years in Canada and the U.S. managing two companies, both clients of Goodyear neither of which remain in Canada, one in fact has been swallowed up not once but twice in corporate acquistions.
The business environment has indeed changed and survival these days depends on a number of factors not the least of which is a firm, well founded corporate strategy and sound management amongst other things. Collingwood has seen more than it's fair share of plant closures and job losses the most recent being Goodyear and Alcoa. Based on what I feel is a combination of business acumen, experience and just plain common sense I have my own opinion as to the area's future as a viable provider of jobs. As a real estate broker I deal with clients every week that have chosen to migrate to and live in this wonderful area. For certain, it's not the area's job market that is bringing people here. Those coming here to live are not university graduates or young families taking up residence as the result of medium to high paying jobs be they manufacturing or otherwise. Today's arrivals are retirees or those near it, looking to settle in an area where they can live out their "golden" years on the ski slopes and golf courses.
Just as a company needs to develop a sound business strategy, so do the local municipalities and in the case of Collingwood's future economic development, I have yet to see one. The shipyard closed in 1986. In the following 20 years we have seen a host of other plants shut the doors including Harding Carpets, Bendix, Kaufman Furniture, Backyard Products and Nacan. With a qualified effort, more than enough time has elapsed to develop a strategy to backfill at least a portion of these lost positions.
The Alcoa facility has been sold and according to the Town's website is eventually going to create 60 jobs. The arrival of Barber Glass while greatly welcomed and appreciated is a minor victory and small step towards where we need to grow. My next posting will delve into the matter further. In the meantime, I'd like you opinion. Please complete the survey above which asks the simple question. "Do you believe the Town of Collingwood is doing enough to attract new employment?"

What Women Want

Today, more single women than ever are taking the plunge and entering the real estate market with the purchase of their own home. Professional careers with higher levels of income, the relatively low cost of borrowing, marital discord and or the simple desire to experience the pride of ownership for themselves are all factors contributing to why many women are searching for their perfect residence.
Unlike a decade or so ago, women today no longer feel that a stigma exists buying "alone" and regard the purchase of a home as a smart investment. Women tend to be more thorough than their male counterparts and spend a lot of time researching the market, neighbourhoods and pricing. First-time female buyers tend to rely heavily on the Internet for their search needs and often opt for maintenance-free living provided by a condominium which represents to them, an "alluring" lifestyle. On the other hand, mature female buyers tend to lean towards a "freehold" or single family home partly due to the fact they have more equity and can afford a larger more expensive property. Another factor entering into the equation is that many women buyers are self employed and often work or would like to work from home. Therefore a property that can accomodate both their living and working requirements is often the main driver when searching for a home.
Most women are keen to add thier own personal touch but the majority do not want to enter into significant renovations especially those of a structural nature. Painting, changing out floor coverings and outdoor improvements such as landscaping all projects that most female buyers are willing to undertake.
Overall, women buyers represent a growing segment of today's real estate market and as clients are knowledgeable, asture buyers and a pleasure to work with.