QUARTERLY REPORT Q2 201904/19 – 06/19

ON BEHALF OF the Board and Staff at Economic Development Greater Saint John, I am pleased to present our Quarterly Report for Q2 2019.

We have successfully reframed our efforts around the four focus areas in our Economic Development Plan, and overall, I am pleased with our progress toward our year one targets. Collaboration amongst community partners and cooperation with our funders has generated real success on a variety of fronts.

Specifically, I’d like to highlight three important initiatives we have underway, that are strategically relevant to our current economic reality:

• We have partnered with a variety of local agencies to advance newcomer retention through employment and champion success stories.

• Our Filling Unfilled Jobs initiative is experiencing broad uptake and has increased collaboration with workforce development partners in Saint John.

• Our marketing campaign, ASK GSJ, is actively positioning Greater Saint John as an attractive place to live and work.

Between April and June 2019, these and other efforts to improve our economy took place against a larger economic context that remains turbulent.

REASONS FOR CONCERN:

• New Brunswick is forecasting sluggish growth (+0.6%) in 2019 and no overall employment growth, driven by weak business investment and a shrinking workforce.

• The number of immigrants settling in Saint John dropped by 12% in the first two quarters of 2019 compared to the same period last year. It is important to point out this is part of a national trend that may be corrected in Q3/Q4. Still, Saint John should be concerned, as it will be important – in the years to come – to significantly increase the number of immigrants settling in the city.

• Adjusted for population size, the value of building permits issued in Saint John is still below most of its peers in Canada.

• So far in 2019 (January through May), the number of hotel room sales in Saint John has declined slightly (-2%).

REASONS FOR OPTIMISM:

• The Bank of Canada has turned moderately optimistic about the Canadian economy in 2019 and 2020. A strong labour market and employment growth, leading to a boost in consumer spending is an encouraging sign nationally.

• In New Brunswick, the significant increase in the value of international exports so far this year (excluding refined oil products) is a positive sign.

• In Saint John, the size of the workforce and total employment is up year-over-year (June 2019 compared to June 2018) and the unemployment rate is down year-over-year.

• The value of building permits is up slightly.

We will continue to watch these indicators, and direct our efforts accordingly, as the year unfolds.

If you have any questions or concerns about this report, or about economic development in general, please don’t hesitate to contact me directly.

Economic development is a marathon and not a sprint. We know the work we do today will pay dividends in the long run – and we hope you’ll join us on the journey.

Sincerely,

Ron Gaudet, CEO Economic Development Greater Saint John

MORE JOBS.MORE PEOPLE WORKING. MORE ATTRACTIVE BUSINESS ENVIRONMENT.

Economic Development Greater Saint John (EDGSJ) is dedicated to achieving consistent, long-term economic growth for the communities of Grand Bay-Westfield, Saint John, Rothesay, Quispamsis and St. Martins.

LOCAL CONTEXT (Saint John Census Metropolitan Area)6

Population (2018): 130,1074 Percent change in population over 2017: 0.4%4

Population growth rank (out of 20 urban centres in Atlantic Canada): 8th4

Number of immigrant arrivals in Q1 and Q2 2019: 3604 12%5 change in immigrant levels over Q1 and Q2 2018

Job vacancies (Q1 2019): 1,8154 1%4 change in job vacancies over Q1 2018

Labour force (seasonally adjusted) for June 2019: 70,5004 7%4 change in labour force since June 2018

Employment (seasonally adjusted) for June 2019: 66,4004 7%4 change in employment since June 2018

Unemployment rate (seasonally adjusted) for June 2019: 5.8%4

0.3% change year over year

Value of building permits issued in the first five months of 2019: $70 M4 3%4 compared to building permits issued in the first five

months of 2018

Value of international exports in May 2019: $1.43 B4 2%4 change compared to May 2018

Value of international exports – excluding refined oil – in May 2019: $685 M4 18%4 change compared to May 2018

Saint John CMA GDP growth (Q1 2019 over Q1 2018): 1.2% Saint John CMA GDP growth forecast for 2019: 1.1%

GLOBAL

Real Gross Domestic Product (GDP) growth forecast for 2019 (all countries): 3.3%1 0.2% change over Q1 2019Real GDP growth forecast for 2019 (advanced economies): 1.8%1 0.2% change over Q1 2019Price of Brent crude oil: $65.02 per barrel (USD on July 17)2

Percent change in price of Brent crude oil since January 1, 2019: 18%2

CONTEXT: Q2 2019 ECONOMIC INDICATORS

REFERENCES: 1International Monetary Fund (IMF) 2Nasdaq 3Bank of Canada 4Statistics Canada 5IRCC 6A CMA is a Census Metropolitan Area 7 Conference Board of Canada.

NATIONAL

Value of the Canadian dollar: $0.766 (USD)3 3% change over Q1 2019

Percent change in value of the Canadian dollar since January 1, 2019: 2.9%3

Real GDP growth (April 2019): +0.1%4 0.2% change over Q1 2019

Employment growth rate (seasonally adjusted) June 2018 to June 2019: 2.3%4 0.3% change over Q1 2019

Fredericton Moncton Calgary Toronto Halifax

TOP 5WHERE ARE PEOPLE

MOVING TO THE SAINT JOHN CMA6 FROM? 4

TO ATTRACT AND RETAIN TALENT TO SUPPORT THE GROWTH OF OUR EXISTING COMPANIES AND ATTRACT NEW COMPANIES TO OUR REGION.

YEAR ONE TARGETWork with 30 companies to fill 350 stagnant jobs (posted for at least 90 days and still unfilled).

STATUSWe are on track for target achievement.

YEAR-TO-DATE PROGRESS347 jobs filled.

WINS AND ACHIEVEMENTS IN Q2In Q2 we participated in the Toronto Job Fair, and met more than 100 candidates who were interested in exploring the opportunity to live and work in Greater Saint John.

We also partnered with ONB and PETL to host a virtual job fair attended by 30 employers and over 300 job seekers.

CONCERNS AND CHALLENGES IN Q2Many companies aren’t adequately resourced to effectively manage talent recruitment and retention, and resources to onboard newcomers are not well-known to employers.

Many employers are also slow to respond to applicants and are therefore missing out on high-quality talent to fill vacant positions, and the opportunity to build their talent pipeline.

Q2 HIGHLIGHT

A multi-agency pilot project called “Filling Unfilled Jobs” is underway and gaining ground. The initiative is a multi-agency pilot project designed to work with companies that are struggling to fill positions in the Saint John region.

Our talent database has now grown to represent 1,850 candidates who have indicated an interest in living and working in Greater Saint John.

Local employers have access to the database, and are using it as an important recruitment tool.

EDGSJ actually used the tool ourselves when it came time to hire our new Marketing Manager!

FOCUSAREA

WORKFORCE DEVELOPMENT

READ MORE ABOUT OUR FOCUS AREAS IN OUR 3-YEAR ECONOMIC DEVELOPMENT PLAN, AVAILABLE AT:

EDGSJ.COM

PROMOTE GREATER SAINT JOHN’S VALUE PROPOSITION FOR INVESTMENT, AND SUPPORT COMPANIES IN BEING GLOBALLY COMPETITIVE.

YEAR ONE TARGETBusiness investment: 300 jobs created through investment attraction.

Innovation: develop concept, test feasibility and secure partner buy-in for an Innovation District.

STATUSSome headway has been made.

YEAR-TO-DATE PROGRESS80 jobs filled.

WINS AND ACHIEVEMENTS IN Q2Two site visits with potential businesses were conducted in April.

Discussions around the Innovation District are providing very positive feedback. Several participants have been identified and potential real estate options are being evaluated.

CONCERNS AND CHALLENGES IN Q2Labour force development remains a bottleneck for business investment.

Although we made progress on business investment-related job creation last month, we are still below target. Collaboration with strategic partners continues, with the goal of boosting the pipeline to support growth in job numbers.

Q2 HIGHLIGHT

In June we were pleased to see UNB Saint John signal their interest in moving their MBA program uptown.

MBA program director Shelley Rinehart told Global News:

“A move would create a “natural collision space” between students and business leaders, with many offices like the new Irving Oil building very close by.”

We are working closely with the University on this initiative, and look forward to seeing this vision come to life.

FOCUSAREA

BUSINESS INVESTMENT & INNOVATION

READ MORE ABOUT OUR FOCUS AREAS IN OUR 3-YEAR ECONOMIC DEVELOPMENT PLAN, AVAILABLE AT:

EDGSJ.COM

BUILD THE GREATER SAINT JOHN ENTREPRENEURIAL ECOSYSTEM WITH A FOCUS ON SCALABLE START-UPS.

YEAR ONE TARGETSupport the launch of 30 start-ups and 60 new jobs.

STATUSWe are on track for target achievement.

YEAR-TO-DATE PROGRESS19 start-ups launched. 31.5 jobs created.

WINS AND ACHIEVEMENTS IN Q2• 7 new Impact Loans were approved

for new businesses, amounting to $140,000 in funding.

• Those businesses were able to leverage that funding to secure $536,500 in additional funds.

• The Idea Centre completed a successful Pitchfest with its largest group of participants to date.

• Our annual Kickstart program commenced in Q2, with 8 participants.

• Recruiting for our fall Paid Start-up Program began in Q2.

• Several EDGSJ Board Members have volunteered to mentor Entrepreneurial Development Team clients.

Q2 HIGHLIGHT

We have added two new programs to our roster.

• Business Immigrant Essentials is a program with curriculum that helps newcomers translate their business skills to the local economy.

• The Hive is a newcomer business incubator, giving clients access to resources, support and a physical location in which to operate their business. The Hive welcomed its first two clients in May, and the Business Immigrant Essentials program welcomed six participants who will graduate later this summer.

FOCUSAREA

ENTREPRENEUR DEVELOPMENT

READ MORE ABOUT OUR FOCUS AREAS IN OUR 3-YEAR ECONOMIC DEVELOPMENT PLAN, AVAILABLE AT:

EDGSJ.COM

TELL THE GREATER SAINT JOHN STORY TO ATTRACT PEOPLE AND INVESTMENT, AND SUPPORT THE GROWTH OF OUR COMPANIES.

YEAR ONE TARGETCollaborate with agencies/municipalities to create a shared marketing toolbox, complete an economic development marketing plan for Greater Saint John and acquire resources to implement the campaign.

STATUSWe are making good progress.

YEAR-TO-DATE PROGRESSOur joint study, together with Develop Saint John, is well underway. The research phase is now complete.

We have also embarked on an exciting marketing effort, entitled ASK GSJ, which will highlight individuals working in our five key sectors, and our five communities.

CONCERNS AND CHALLENGES IN Q2Accessing resources to implement a larger campaign remains a question market for us.

Q2 HIGHLIGHT

Q2 saw the development and initial rollout of our ASK GSJ campaign.The campaign features a great person with an interesting job, photographed in a wonderful location in Greater Saint John. The photo is supported by a fun Q&A style chat with the individual, and a call to action to ask the individual what it’s like to live and work here in GSJ. Our first ad, featuring Jenna, debuted in Maritime Edit magazine, and was followed up by a featured story and digital ad in Huddle and behind the scenes content on our own online channels in early June. Digital reach on EDGSJ social platforms, to date, is over 98,000 with 745 link clicks from interested folks in Toronto, Vancouver, Calgary, Boston and Halifax. We saw peak uptake from those 25-44 years old, skewed 60/40 men versus women. An additional five ASK GSJ ads are in development and will roll out over Q3 of this year.

FOCUSAREA

MARKETING GREATER SAINT JOHN

READ MORE ABOUT OUR FOCUS AREAS IN OUR 3-YEAR ECONOMIC DEVELOPMENT PLAN, AVAILABLE AT:

EDGSJ.COM

ENNA General Manager, Irving WallboardHere I have the perfect mix of opportunity, family, and lifestyle.”Ask Jenna what it’s like to live and work in Saint John, New Brunswick:jenna@edgsj.com

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