An economic resurgence for Hamilton

[realcity]

Globalisation is over. It's dependent on cheap energy.

Look at the economist -- he's not wearing any clothes.

There are many books about the end of Globalization. Talking about it not in vogue, esp since the economy retooled to accommodate it. So the denial of the end of Globalization is like denying Peak Oil was 5 years ago.

BTW Saudi Aramco's 2007 production fell to 8.5 million barrels-a-day (b/d) from 8.8 million b/d in 2006 while raw gas to the company's own plants fell to 7.9 billion cubic feet a day (cf/d) in 2007 from 8.2 billion cf/d for the previous year. The so-called promise of an extra 300,000 b/d only will bring them up to 2006 production... if indeed they actually do increase it. Aramco doesn't release numbers, so the world won't know if this month's promise to Dubya was real until this time next year. By then it won't make any headlines, Aramco has been promising the US they'll bring production over 10 million b/d for years, they've never got over 9.4 b/d, in a sense Saudi Arabia is past peak.

[DC83]

^^ I head that Saudi Arabia reached peak oil 2 years ago? They've just been lying about it? Makes sense seeing those kinds of numbers.

[ryan_mcgreal]

Saudi Arabia is almost certainly lying about their ability to increase production.

Peak Oil for Saudi Arabia? (April 26, 2006)
http://raisethehammer.org/blog/220

Saudi Oil Production Down 8 percent (March 2, 2007)
http://raisethehammer.org/blog/520

Saudi Arabia: No More Oil for You (April 21, 2008)
http://raisethehammer.org/blog/984

[ryan_mcgreal]

Decreased efficiency does not make for good economics.

Higher prices != decreased efficiency. In fact, higher prices lead to increased efficiency by forcing manufacturers to economize their inputs and processes.

What we call "globalization" (essentially, locating manufacturing in low-wage zones) is a false economy to begin with. In many cases, it has allowed companies to put off raising their efficiency by realizing improvements in per unit costs simply by paying much lower wages.

As the cost of transportation goes up, the economy of shipping goods long distances to reap low wages decreases. Eventually it will be so expensive to transport long distances that it once again becomes economical to manufacture locally.

[FairHamilton]

Originally Posted by BCTed

Decreased efficiency does not make for good economics.

But, pure globalization will go to cheapest place to produce and ship goods to market. If that`s local, then it`s local.

[matt602]

Originally Posted by LikeHamilton

Apparently US Steel Canada and ArcelorMittal Dofasco (Can’t get use to theses names) are working at capacity and the Port of Hamilton is now exporting more steel then in the past few years. In them past export steel was near or at zero.

I'm very glad to read that. I think USS has done an excellent job at turning around Stelco's operations. ArcelorMittal I'm not as familiar with but I don't see anything incredibly bad.

Just gotta work on getting down those giant black pollutant clouds that get released every once in awhile...

[ryan_mcgreal]

ArcelorMittal I'm not as familiar with but I don't see anything incredibly bad.

In the past, Dofasco made a niche market for itself as a steel boutique, producing high-end custom work for special orders. I don't know what's going on there today, but I've talked to some employees who feel the company is moving away from that high-end product quality, e.g. by reducing the workforce through attrition, loading more work on the remaining employees, cutting back their maintenance schedule, etc.

[BCTed]

Originally Posted by ryan_mcgreal

Higher prices != decreased efficiency. In fact, higher prices lead to increased efficiency by forcing manufacturers to economize their inputs and processes.

What we call "globalization" (essentially, locating manufacturing in low-wage zones) is a false economy to begin with. In many cases, it has allowed companies to put off raising their efficiency by realizing improvements in per unit costs simply by paying much lower wages.

As the cost of transportation goes up, the economy of shipping goods long distances to reap low wages decreases. Eventually it will be so expensive to transport long distances that it once again becomes economical to manufacture locally.

More difficult transportation = decreased efficiency.

Let's say that fuel were completely free and that its use meant zero negative impact upon the environment -- in such a case, long-distance transportation would be relatively easy (and guilt-free). Would you rather have a situation like that or one in which fuel costs made it difficult to transport goods?

[hamiltonguy]

Originally Posted by BCTed

More difficult transportation = decreased efficiency.

Let's say that fuel were completely free and that its use meant zero negative impact upon the environment -- in such a case, long-distance transportation would be relatively easy (and guilt-free). Would you rather have a situation like that or one in which fuel costs made it difficult to transport goods?

Ideally yes that'd be great. But what we have now is fuel costs both money, and damage to the environment. Fuel will never be free, but its cost in money is much less than it's environmental damage. Therefore higher fuel costs forces businesses to become fuel efficient (use less fuel) either by moving closer, or decreasing the amount of fuel used per mile.

[SteelTown]

'Breathtaking change' plans to be unveiled
Economic summit results to show 'yardsticks'

July 21, 2008
Meredith Macleod
The Hamilton Spectator

Hamilton's community leaders will not be disappointed by early results out of the city's first economic summit, says Richard Allen, the man charged with carrying forward calls for "breathtaking change."

Allen has been in his role of senior adviser to the Hamilton Economic Summit for about a month now.

And there is no time to waste. Allen's appointment lasts a year and hopes are high for quick results out of a day many have called a turning point for Hamilton.

"I'm a steward of the outcomes of the economic summit," said Allen, former executive director of Hamilton's Industry Education Council.

"If those ideas are not acted upon, it would be a sad waste.

"The summit and its outcomes were a gift for our community."

He and a team representing the Hamilton Chamber of Commerce, the mayor's office, the city's economic development department, and the Jobs Prosperity Collaborative will deliver the first community update tomorrow.

About 75 people, mostly those who did not attend the sold-out summit, are registered for that event.

There will also be another summit briefing this fall, and a second summit gathering next spring, along with periodic "report cards" to be published in The Spectator.

John Dolbec, chief executive of the chamber of commerce, which spearheaded the summit, says community leaders are awaiting tangible results with "patient anticipation."

Achieving those results will require making timely decisions about priorities and how best to reach objectives, said chamber president Tyler MacLeod.

"We can't fulfil a vision without decisions being made along the way."

Allen says his mandate is to be part of a team that sets a framework and priorities coming out of the summit, facilitate collaboration, communicate with the 125 attendees of the summit and the general public about priorities and results.

That framework will be the centrepiece of tomorrow's briefing, along with presentations by the city's economic development department about its initiatives.

"I know that hoped-for momentum people are talking about, we'll be able to satisfy that (tomorrow). People will see the yardsticks moving down the field."

The team pushing forward the summit's agenda, to create "breathtaking change" in Hamilton and move the city from its 15th-place Conference Board ranking of Canadian cities, to among the top five, are aiming for a balance between early wins and long-term vision.

The first major hurdle, teamwork, has been scaled, says Allen.

"Already, right out of the gate, a collaborative has formed.

"That's a major breakthrough for Hamilton."

Going forward, says Allen, the key will be to engage the community and find key leaders with expertise and authority to champion priorities, such as boosting the city's image and strategic land development.

"Bold change requires the support of a city," said Allen. "No one goes out on a limb if they don't feel someone is behind them."

To register for tomorrow's summit briefing, which begins at 5 p.m., call 905-522-1151, ext 237. There is a $30 registration fee.

[raisethehammer]

"Breathtaking Change" and "John Dolbec" in the same sentence is enough for me to toss this article into the trash.

[flar]

The article is extremely vague. I see no reason why the economic summit would be "a turning point for Hamilton." There is no evidence whatsoever to support that. Has there been any concrete benefit at all? Going even further, has any action at all taken place based on recommendations and ideas from the summit? The one way street thing is one area they could have acted on but didn't. I'm sure that came up at the summit, at least I hope it did.

Looks like all talk to me, and it's stuff that we've been talking about on here for years.

[markbarbera]

The summit briefing is happening today at 5pm. We should have a better picture as to the actions and initiatives resulting from the spring summit after the briefing has occurred. It will be interesting to see if something more than talk has resulted from that summit. Hopefully Meredith Macleod will expense the $30 attendance fee and write up a news article for us to read tomorrow morning. The teaser article is setting us up for some good news, hopefully it is substantial.

Maybe someone actually attending the meeting can post an update for the rest of us later on this evening.

[adam]

Originally Posted by markbarbera

The summit briefing is happening today at 5pm. We should have a better picture as to the actions and initiatives resulting from the spring summit after the briefing has occurred. It will be interesting to see if something more than talk has resulted from that summit. Hopefully Meredith Macleod will expense the $30 attendance fee and write up a news article for us to read tomorrow morning. The teaser article is setting us up for some good news, hopefully it is substantial.

Maybe someone actually attending the meeting can post an update for the rest of us later on this evening.

You should email her with any comments you have. If its the same Meredith MacLeod I'm thinking of, she'll take your comments to heart.

[raisethehammer]

too bad Larry DiIanni didn't win his attempt to move this plant to Hamilton.
We'd have our first 'brownfield' in the Glanbrook business park.
Who knew.


Burlington pork plant to close
Canadian Press
7/22/2008

Maple Leaf Foods has begun the formal process to sell its Burlington pork processing business, part of a restructuring as the food producer combats hog prices that have not kept pace with rising feed costs.

Maple Leaf said Tuesday it will put the plant on the block immediately and expects the sale to close by the end of this year.

The facility can process up to 50,000 hogs a week and is licensed to export its products to about 50 countries.

[BCTed]

Originally Posted by flar

The article is extremely vague. I see no reason why the economic summit would be "a turning point for Hamilton." There is no evidence whatsoever to support that. Has there been any concrete benefit at all? Going even further, has any action at all taken place based on recommendations and ideas from the summit? The one way street thing is one area they could have acted on but didn't. I'm sure that came up at the summit, at least I hope it did.

Looks like all talk to me, and it's stuff that we've been talking about on here for years.

At least these are Hamiltonians who are putting forth an effort and have a genuine vested interest in improving things --- let them try. I have seen zero evidence that Harry Stinson, who is a non-Hamiltonian and has a poor track record, will do anything great for the city, but he has been instantly lauded as a saviour on here with no questions asked. If I had made the same comments that you just did, I would have been called a "squelcher".

[raisethehammer]

give me a break.
Most of them don't give a rip about Hamilton. They've made their fortune off us and could care less if the city rots. In fact, many of them are the main reason the city continues to rot with one-way streets and no business. Our chamber of commerce (a business organization) wants to keep the status quo with no business and no investment in our city because they enjoy their 3 minute shortcut to work or the Hamilton Club everyday.
They're selfish and useless. The whole lot of them should be fired.

[matt602]

I don't really see it that way. I'm sure it was that way in the past, but I think there's a renewed vigor now. Evidence of Hamilton's resurgence is all over the place. James North, downtown redevelopment, re-dev along Barton, Centre Mall re-dev, Rapid Transit project getting going, the waterfront. All things that have happened within the last 5-10 years. Even the damned Lister Block is finally seeing a light at the end of the tunnel... and of course there's Stinson's proposal, which while it may not ever happen, nobody was ever even talking about 100 story buildings in Hamilton 10 years ago. Those things don't happen to a city that is dead or dying. People are just finally realizing it, and doing what they can to accelerate and nurture it.

[DC83]

Originally Posted by BCTed

I have seen zero evidence that Harry Stinson, who is a non-Hamiltonian and has a poor track record, will do anything great for the city, but he has been instantly lauded as a saviour on here with no questions asked.

He has given this city more exposure in the last year than anyone else. (Positive) exposure in Local, Regional, National & International publications...

Matt's right, people are talking 'Hamilton'. We haven't been on the radar for decades, but we're back now!

[markbarbera]

Well said, matt! I certainly agree with your points here. Positive energy is what will keep momentum going. Squelchers come in many shapes and forms, and the city has more than enough of them.

RTH why would you want to fire the organization that so strongly endorsed LRT some weeks back? The same organization that endorsed moving the buses out of Gore and making the south leg of Gore pedestrian? Simply because the membership is divided on two-way conversion? That's a little excessive I should think. I am a proponent of two-way conversion, but this is really just one piece of the huge recovery puzzle that is downtown Hamilton. The Hamilton business community as a whole has been energized over the past year and is finally starting to look at the city from a different vantage point. IMO, at this point the Hamilton Economic Summit deserves more praise and encouragement and less criticism, and it certainly is not deserving of summary condemnation.