Economy Thread

[M II A II R II K]

Post news related to the London economy in this thread.

[M II A II R II K]

That post is more suited for this thread instead.

[ldoto]

Not sure if this post is in the right Tread!!!!
Tue, April 14, 2009


SUMMER GAMES: More than 1,400 athletes, coaches and mission staff will descend on London in July 2010



Many of Canada's top athletes will gather in London next year as the city plays host to the Special Olympics Canada Summer Games.

The seven-day event begins July 11, 2010, and will attract more than 1,400 athletes, coaches and staff.

"It's going to be a tremendous event for the city," said John Winston, general manager of Tourism London.

He estimates the games will generate $8 million of economic activity.

"This will be a major economic boost for the community."




Special Olympics Canada announced last week London would host the Games.

"We're very proud to have prepared the successful bid. We think we have the capability to put on an event unsurpassed in previous years," Winston said.

The eight official sports will be held across the city but at the University of Western Ontario, the games will have a special homecoming, said Darwin Semotiuk, a professor in the kinesiology department.

The Special Olympics movement sprang from research done at Western by Frank Hayden.

"This is really significant because London is the birthplace of the Special Olympics and Canada is now seen amongst the leaders internationally," Semotiuk said.

[MolsonExport]

As we noted last week, council’s deliberations are complicated by the fact there’s no real strategic plan for London’s future. And unhappily, given the apparent tight timeframes senior governments are attaching to the spending of the stimulus largess, there’s little time right now to put together an intelligent, cohesive strategy that articulates how and where London should grow over the next decade or so.

What the hell are those turkeys at City Hall doing all day? putting out fires, and not managing, apparently.

[ldoto]

Tue, May 5, 2009

CONSTRUCTION


London's construction industry has slammed on the brakes this year, with first-quarter building permits down almost 70% over last year.

A report from the city's building department shows permits for construction valued at only $69.3 million were issued from January to March, compared to $226 million in the same period last year.

The institutional sector was hardest hit, down to $27.4 million from $132.3 million in 2008 while residential permits fell from $76.3 million to $27.8 million.

But Peter Kokkoros, the city's deputy chief of building controls, said the numbers aren't as bleak as they appear.

He said last year's institutional permits spiked up because of a single, $100-million project at the London Health Sciences Centre. With that project excluded, he said the institutional sector would only be down about 15%.




Kokkoros said the city has enjoyed a string of record-breaking years in the construction industry. While the building permit totals may look dismal so far this year, he said they're similar to the long-term average.

"We are back to 2001-02 levels. It looks like the bottom is falling out, but it's a drop back down to normal," he said.

Kokkoros said the drop in residential building has been serious, but that there are signs of a pickup in the coming months.

"I had one builder come in last week and drop off seven permits in one day," he said.

In the industrial sector, Sikorski Sausages was granted a permit for at $3-million food processing plant last month and Kokkoros said a permit for four more buildings in the Skyway Industrial Park is in the works.

But things look a lot bleaker to Jim MacKinnon, president of the London District Building and Construction Trades Council.

He described the drop in residential housing as a "train wreck."

He said the larger industrial-commercial projects are winding down.

"We are on the edge of the cliff in that sector. There isn't anything to replace these projects and put people back to back," he said.

MacKinnon noted the University of Western Ontario is facing a financial crunch and is putting major capital projects on hold.

He said the federal and provincial governments are making money available for infrastructure spending to stimulate the economy, but that city council is using the funds to offset the cost of conventional projects already in the long-term capital budget.

City hall should concentrate on new projects, such as industrial parks that have the potential to create permanent jobs, MacKinnon said. "Their primary target seems to be lowering taxes, not putting people to work."

[ldoto]

Fri, May 8, 2009

The number of new home starts shot up in the London area in April, but it was mainly due to one large apartment building.

The Canada Mortgage and Housing Corporation (CMHC) reports 237 housing starts in the London St.- Thomas area last month, but more than half of the total was due to a 160-unit apartment building in the Oxford Street-Wonderland Road area.

CMHC analyst David Lan said the apartment starts are welcome news but large projects tend to spike the numbers up and down from month to month.

Single detached homes, considered a more reliable overall indicator, were still low in April with 55 starts compared to 115 in the same month last year.

Since the beginning of the year, total house starts are down 15% compared to the same period in 2009 and single detached starts are down 62%.

[ldoto]

Orchestra London says it's "cautiously optimistic" its turned the corner.

The cash-strapped organization has been selling lots of subscriptions to its various concert series and will provide an update at Board of Control today.

City Council gave the Orchestra a $500,000 dollar loan guarantee late last year.

Controller Gord Hume tells AM980 taxpayers aren't on the hook.

"Part of what we've been trying to do is provide some bridge bank financing for them. Understand there is no tax dollars involved at this point, in the Orchestra London situation." Hume said. "It was simply a bank guarantee that the city put up, so there has been no expenditure of tax dollars at all in this."

Orchestra members say they continue to operate within the plan that was presented to City Council last December.

[MolsonExport]

^nice to see support for arts for which only the rich patronize.

[ldoto]

Revenue is higher and fundraisers have helped, but city's finance chief has concern over future subscription levels

Taxpayer-backed Orchestra London gave a glowing report yesterday on efforts to recover from the brink of bankruptcy, but city hall's finance chief sounded a note of concern.

Concert revenue this year is higher than last year, fundraisers have added money to the till and the orchestra is on target to sell out its opera tickets, its officials told board of control.

"I'm optimistic we've turned the corner," said Brent Kelman, who chairs the orchestra's board.

City finance chief Vic Cote praised the efforts and the accomplishments, but also expressed concern over a key area in which the orchestra has fallen short -- selling subscriptions for the next season that begins in October.

"I do have concerns," Cote said. "There was a noticeable drop in April, which is putting pressure on finances."




The orchestra uses subscriptions for the next season to pay for current expenses, so the drop in subscriptions has cut into its cash flow.

The symphony's business plan projected between $100,000 and $125,000 of available cash at the end of April; Instead, there was $86,000.

"The bottom line is subscriber sales have to go up," Cote said.

Cote recommended council give the orchestra its monthly $50,000 share of a $500,000 grant, but warned he wanted to see improvement by June.

Kelman said he's optimistic things will improve, thanks to a telemarketing campaign to reach subscribers who in years past have renewed 90% of the time.

This month's efforts have already helped and Kelman was hopeful cash flow would be better at the end of May than it was at the end of April.

That's critical to taxpayers -- in December, council guaranteed a $500,000 loan the city will have to pay if the orchestra defaults.

That risk prompted another concern by some -- if the orchestra defaults, could the city also be on the hook for money paid by subscribers for next year but already used this year?

Controllers asked city staff to research that question and present answers at a future meeting.

The budget for the orchestra doubled to $4 million from 1999 to 2006 while revenue lagged, stalling at about $3.7 million, creating debt expected to surpass $900,000 this year.

The new business plan calls for cost cuts of $500,000 over two years while keeping revenue steady despite the global recession

[ssiguy]

London finally get's some stimulus money that they have been crying for and then don't know what to do it...........that's London all over.
How about making an effort to get ALL bus stops having a shelter. Vancouver has done it and I can tell you it sure makes taking transit a more positive experience.
Also what about tha much needed performing arts centre as Centennial Hall is 20 years past it's due date.

[ldoto]

Londoners can expect the housing market to show a sharp decline this year according to the Canadian Mortgage and Housing Corporation.

The CMHC says home sales will drop by a whopping 25 per cent this year - however sales will rally slightly next year.

"Despite low mortgage rates and improved affordability in London's housing market, many buyers are shying away from or postponing homeownership." said David Lan, CMHC's London Market Analyst. "However, as the economy recovers in 2010, many of those who postponed homeownership will move in to take advantage of the improved affordability."

According to the latest housing forecast, housing starts will only reach 15 hundred this year and in 2010--down dramatically from nearly 24 hundred in 2008.

[MolsonExport]

Originally Posted by ssiguy

London finally get's some stimulus money that they have been crying for and then don't know what to do it...........that's London all over.

Bah, just send it all over to Orchestra London.

[ldoto]

Wed, May 20, 2009

HOUSING

After plummeting this year, new home construction in London is showing signs of stability.

Housing starts in 2010 are forecast to be about the same as this year, 1,500, after hitting nearly 2,400 in 2008, David Lan, a market analyst with the Canada Mortgage Housing Corp., said yesterday.

"It looks next year like we will be in for a modest recovery. There will not be a boom any time soon but things should bottom out this year," he said. "We have had a lot of bad news all year. Now we have some good news."

The CMHC is underestimating the power of the looming recovery, adds Carl DiNardo, president of the London Home Builders Association. He believes the turnaround will be stronger and new home starts next year about 10% stronger than forecast.

"I think next year will be even better -- that is what I am hearing. The pendulum has to come back and we are seeing that now," said DiNardo.




Traffic is up at model home openings across the city and region for all builders, and there seems to be interest buzzing again in new homes, he said.

"London has softer ups and downs compared to other cities. We will see it come back," said DiNardo.

This year, the CMHC forecasts about 650 single-home starts, 600 apartment units, 200 townhouses and 30 semi-detached units. Those figures should be about the same in 2010.

The downturn has been largely focused in manufacturing while education and health-care sectors, where London has large employment, have been solid and growing, he added.

"Some have been waiting and they are starting to hear good news. The economy will grow this year," said Lan.

[ldoto]

Area MPPs announced $50 million for two new schools and renovations to three others this morning.

The Thames Valley District school board will get:

- $7 million for an addition to Glendale high school in Tillsonburg

- $10.1 million to build a new elementary school in the Stoney Creek neighbourhood in London

- $1 million to build an addition at Northridge public school in London.




The London District Catholic school board will get:

- $27 million to build a new Catholic high school in northwest London

- $5 million for an addition at St. Joseph’s Catholic high school in St. Thomas.

The cash was part of a $500 million province-wide investment.

[MolsonExport]

St. Thomas needs more schools? I would have thought that people would be streaming out like lemmings.

[ldoto]

London Real Estate Market Shows Signs of Improvement

The local housing market is still down from this time last year, but realtors say they are starting to see signs of improvement.

Last month, sales were down 15.3% from the same time last year but sales in May were up 7.5% over sales in April.

The average price for homes is also improving. It was just under $210,000 dollars last month, down 1.2% compared to the same time last year. By comparison, prices for the first three months of the year were down more than twice as much.

New figures released today by the London St.Thomas Association of Realtors show 864 homes exchanged hands in the area last month.

Sales of detached homes are down 15% on the year so far, while condo sales are down almost 24%.

The average price of a home in London ($209,920) is still considerably cheaper when compared to similar sized markets including Kitchener-Waterloo ($271,700) and Hamilton ($271,981).

[ldoto]

Wed, June 3, 2009

SPH Customer Service Management is leaving Chatham for London -- taking a couple hundred jobs with it

Chatham's loss is London's gain -- 200 jobs, that is.

A new call centre is calling downtown London home, after leaving the city's western neighbour, Lesley Cornelius, communications director for the London Economic Development Corp., said yesterday.

SPH Customer Service Management has opened on Dundas Street with 90 full- and 40 part-time workers and plans to hire about 60 more in the fall.

"They see this as a great community and they really like the workforce," said Cornelius. "This is an industry that continues to grow here and offers opportunities for career advancement.

"People who work there enjoy flexible hours, they can work part-time or full-time and can grow into supervisory or management positions within the organization."




The centre will handle incoming calls for Domino's Pizza and Telus Mobility and operate for three shifts a day.

The pay starts at $10.75 an hour with incentives, added Cornelius.

SPH has been in business for five years, opening as a six-person outbound centre selling vacation packages.

It's the latest entry in a crowded local field. London is home to about 40 call centres, employing more than 7,000 workers, 2.6% of the total workforce.

[ldoto]

There are six sweet spots in the London economy that could provide renewal when the recession storm clouds disappear.


Watch the Video!!!!!!

http://video.lfpress.ca/video/_/_/58.../_/26655798001

[ldoto]

Tue, June 23, 2009

CONSTRUCTION: The average price for a new home in London in April was $298,478, up $12,400 from March

Homebuilders in the London area continue to struggle, according to survey results released yesterday by the Canada Mortgage and Housing Corp.

The CMHC said 88 new homes were sold in the London-St. Thomas area in April. That was up from 51 homes sold in March but well below the 160 homes sold in the same month last year or the 228 sold in April in 2007.

The average price for a new home in April was $298,478, up from $285,998 in March.

CMHC analyst Ken Sumnall said the jump in home sales from March to April wasn't a big improvement because homes sales tend to be seasonal.

"You would expect sales to up in April," he said.




Sumnall said London area builders are trying to reduce their inventories, including selling off their model homes

The CMHC has released monthly figures on new housing starts for years but has now started reporting figures on home sales in major cities based on surveys of the major builders.

Sumnall said the new house sales are a useful tool in forecasting because they precede the construction starts by at least several months and are the first indication of changes in the market.

"The sales figures will foreshadow any upturn in the construction market," he said.

He noted this year's slump in starts was signalled by steadily dropping sales in the last nine months of 2008.

There was some good news yesterday in London's office-commercial market, with the city bucking a national trend toward higher vacancies.

A second quarter survey by CB Richard Ellis showed the national vacancy rate jumped to 8.3%, up 6.4% in the same quarter last year.

Calgary fared the worst, with vacancies surging from 4.6% to 10.2%

Although it was still well above the national rate, as it has been for years, London's vacancy rate fell from 13.9% 13.2% in the second quarter. Waterloo was the only other major city to record a decrease.

Meanwhile, yesterday, Statistics Canada said household net worth in Canada fell by $72 billion, or 1.3%, in the first quarter as falling real estate values and stock market woes continued to erode assets.

But the agency says the rate of decline has slowed from the last two quarters of 2008, in which cumulative losses totalled $438 billion.

The drop in Canada in the first quarter this year was only half the decline recorded in the United States. As a percentage of personal disposable income, household net worth has fallen faster in the United States than in Canada since the third quarter of 2007. Canadians cut their borrowing in the first quarter -- especially in new mortgages -- and growth in debt slowed to less than 1%. Total household liabilities relative to net worth edged up modestly in the first quarter, to 24.9 cents of debt for every dollar of net worth, from 24.4 cents in the fourth quarter of last year.

[ldoto]

CITY HALL: The city is urged to develop along 401, 402

By PATRICK MALONEY, THE LONDON FREE PRESS

Last Updated: 5th February 2010, 7:30am

The development of industrial land along the Highway 401-402 corridor is a key opportunity to attract new jobs to London, a city councillor says.

Coun. Paul Van Meerbergen made the comments Thursday following a presentation focused on the city's industrial land options, by city manager Jeff Fielding to members of council.

"That's an underutilized asset that we have," said Van Meerbergen, who works for a firm located along the 401. "It's the direction we need to go -- developing that land along the 401, 402 and creating more jobs.

"We need to improve our ability to create wealth and that's the direction."

For Fielding, the blueprint exists up and down the highway in Ontario -- and London is actually in a better position than such communities as Mississauga, he said following his presentation.

"If you go upstream from us and see all the municipalities that are successful . . . all of (them) have frontage on the 401," he said. "London has frontage on both sides.

"Clearly we've got an interest along the 401 because of the exposure that businesses get to the travelling public. (Some) industries depend on their brand having visibility."

Fielding also points to the possibility of creating a 401 interchange at Wonderland Rd., which would offer advantages in terms of land and give people in west London another access point to the highway.

"There's a triangle of land in the 401-402 corridor that would be strategically located for us to be able to do something special (in terms of) attracting some industry," Fielding said.

Fielding on Thursday also touched on other elements of the city's economic picture, including:


London's economy, having shrunk by about 4% last year, is expected to grow by 2.5% in 2010

The London region has lost 8,300 manufacturing jobs since 2006

Approved stimulus funding for the city has created an estimated 1,185 jobs But those hoping for the arrival of major employers with hundreds of jobs may need to adjust their expectations as the city recovers from a recession, Fielding said.


"Jobs will come back in 10s and 20s, rather than hundreds," he said. "And the investments will tend to be $7-$8 million as opposed to $70-$80 million."