Hamilton's economy?

[thistleclub]

$699,331.98 of public sector money buys a lot of civic enthusiasm.

[realcity]

Why did he have to mention the stupid waterfalls?

[urban_planner]

Originally Posted by realcity

Why did he have to mention the stupid waterfalls?

Because they are actually bringing people to Hamilton from other areas. I have met people on several ocassions that have come here from the GTA strictly to look at the falls.

[SteelTown]

Last night I was over at Toronto and learned that Kanetix (Insurance company) is moving a large chunk of their office to Hamilton from Toronto. They'll still keep the Toronto office but most are moving to Hamilton, they cited that it's cheaper to do business in Hamilton.

It'll be up and running in November and they got office space somewhere in Hess Village.

[drpgq]

Originally Posted by SteelTown

Last night I was over at Toronto and learned that Kanetix (Insurance company) is moving a large chunk of their office to Hamilton from Toronto. They'll still keep the Toronto office but most are moving to Hamilton, they cited that it's cheaper to do business in Hamilton.

It'll be up and running in November and they got office space somewhere in Hess Village.

At least there's some good news this week.

[SteelTown]

Jobs boom in city's future
Steel, manufacturing out, education, health and science in

January 22, 2010
Steve Arnold
The Hamilton Spectator
http://www.thespec.com/News/Local/article/709804

More than 50,000 jobs will become available in Hamilton in the next six years and the city doesn't have the workforce to fill them.

A study prepared for the Hamilton Training and Adjustment Board concludes much of that employment growth will be due to increased economic activity around Hamilton -- but with the right development strategy the city can grab its own piece of that future.

Economist Tom McCormack, author of the study, said the best of the new jobs won't be the metal-bashing and manufacturing work that made Hamilton famous. They'll also demand a lot more education than in the past.

The new jobs illustrate a shift that has been taking place in Hamilton for decades. Since 1987, the city has lost 26,200 manufacturing positions, but gained more than 40,000 jobs in the professional-scientific-technical, transportation, education and health sectors.

That's a gain of 1.5 positions for every one lost, but in vastly different fields.

That trend clearly means Hamilton will have to focus on developing a more highly educated population than it currently has.

"What has happened to manufacturing here has happened to manufacturing right around the world," McCormack said. "That sector hasn't been creating any underlying jobs forever. No community in Canada is going to see growth in manufacturing jobs. That's just not going to happen."

The study, prepared by the Centre for Spatial Economics, concludes as many as 29,000 new jobs will be created in Hamilton by 2016. On top of that, 21,000 current workers will retire.

McCormack said since 2006, the biggest job growth in Hamilton has been in the clerical and retail-service segment, with the "better" jobs going to areas outside the city.

Turning that trend around is a focus of the economic development strategy being developed by the city -- a strategy targeting growth in advanced manufacturing, clean technology, food production, cultural industries, bioscience and goods movement.

McCormack's study showed a clear link between employment and education -- according to the 2006 census, 75 to 80 per cent of the working age population with a community college diploma or university degree was employed compared to 65 per cent of those who had only finished high school and only 35 per cent of those without high school.

The trouble for Hamilton is that about 210,000 of its population over age 15 have high school or less and that's not a pool of workers that will capture the attention of the kind of employers the city needs in the future.

"Hamilton is not as well educated as the rest of the country, but that is going to change in spades," McCormack said.

Another major problem for Hamilton is that its net "natural" growth in population -- births minus deaths -- isn't keeping up with the demand for new workers.

By 2020, McCormack estimates the city will have to attract as many as 8,500 immigrants to keep up with demand, a need that will change the very complexion of Hamilton.

Initial reaction to the findings was positive -- HTAB executive director Judy Travis said they show "the future is bright for Hamilton," while Neil Everson of the city's economic development department said it shows the pressing need for worker education.

"It means we'd better have a skilled labour force ready or employers are going to look elsewhere," he said. "Without the labour force, we aren't going to get the business."

Richard Koroscil, president of the Hamilton Chamber of Commerce, said the results clearly show "Hamilton has an opportunity to shape its own future.

"The opportunity is there if we're proactive," he said. "We have a chance to create a different city."

McCormack's study is part of an effort to design a workforce development plan for the city. The paper will now be taken to employers to test its projections.

50,000

New jobs coming to Hamilton over next six years

40,100

New jobs in health, transportation and education since 1987

26,200

Jobs lost in the manufacturing industry since 1987

8,500

Immigrants required by 2020 to keep up with demand

THE GOOD

The five sectors which fared best at job creation in Hamilton, 1987 to 2008

THE BAD

The five sectors which fared worst at job creation in Hamilton, 1987 to 2008

THE FUTURE

The fastest growing occupations in Hamilton*

Registered nurses 50%

Nurse aides, orderlies 50%

Early childhood educators, assistants 44%

Receptionists switchboard 41%

1987 2008 Change

Health care 29,200 48,200 19,000

Professional,scientific, technical 8,100 22,100 14,000

Construction 16,000 27,400 11,400

Education 20,100 30,800 10,700

Transportation, warehouse 8,100 17,100 9,000

1987 2008 Change

Manufacturing 80,000 53,800 -26,200

Public administration 13,800 13,200 -600

Utilities 2,500 2,100 -400

Agriculture, other primary 4,500 4,300 -200

Real estate rental and leasing 6,700 6,900 +200

[flar]

I certainly hope 50,000 jobs become available in Hamilton, but I'm still not a believer in the service economy. To me, the service economy is a whole lot of low paying jobs like retail, which is just what we've been seeing. The rest of the economy is hospital and education workers, who will presumably overeducate future generations in preparation for underemployment. So we have a bunch of moderately paid public sector (health and education workers being paid with tax dollars) supporting nine Walmarts, where everyone else works. Sounds unsustainable to me.

[omro]

It was just pointed out to me that this 21,000 of the "new" jobs are simply replacements for people who are retiring, so really only 29,000 new jobs are being created. Also the article implies the jobs will only be in the area, not within Hamilton itself, but in the "area".

[drpgq]

That's a good summary. One thing is with the colossal provincial deficit, there just won't be money for more hospital and education spending. You're already seeing it with HHS laying off people, so I can't see this being a source of growth for Hamilton over the next five years, where it has been previously.

Originally Posted by flar

I certainly hope 50,000 jobs become available in Hamilton, but I'm still not a believer in the service economy. To me, the service economy is a whole lot of low paying jobs like retail, which is just what we've been seeing. The rest of the economy is hospital and education workers, who will presumably overeducate future generations in preparation for underemployment. So we have a bunch of moderately paid public sector (health and education workers being paid with tax dollars) supporting nine Walmarts, where everyone else works. Sounds unsustainable to me.

[SteelTown]

The only people that got laid off were the mail service department, that's about 30 people. HHS outsourced them, yea I know I never heard of outsourcing mail service before either. The rest will be pushed somewhere else.

[drpgq]

Originally Posted by SteelTown

The only people that got laid off were the mail service department, that's about 30 people. HHS outsourced them, yea I know I never heard of outsourcing mail service before either. The rest will be pushed somewhere else.

In the context of my comment, that's still 30 Hamilton jobs lost, whatever they are.

[SteelTown]

Hamilton economy on upswing in 2010
Manufacturing upturn fuels growth for first time in 3 years

January 28, 2010
Steve Arnold
The Hamilton Spectator
http://www.thespec.com/News/Business/article/713281

Hamilton's economy will grow in 2010 for the first time in three years, a new study by the Conference Board of Canada concludes.

Driving a major part of that growth will be the first upturn to manufacturing output since 2003.

"All of the signs point to a good year for Hamilton," said Jane McIntyre, one of the authors of the Conference Board's quarterly Metropolitan Outlook report. "It's all part of the general world economic recovery."

McIntyre said recovery in the battered manufacturing sector -- which saw output shrink by 31 per cent from 2003 to 2009 and employment in Hamilton fall by almost 18,000 jobs, will be an especially good news story.

Manufacturing output is "finally starting to show some signs of life," she said. "That's going to drive improvements in the service industries and other areas."

The signs McIntyre reads include real gross domestic product, employment, unemployment rate, personal income per person, population, retail sales and housing starts. All of them, except employment, are forecast to increase this year over last and to continue rising through 2014.

The drop in jobs, and matching rise in unemployment, will be smaller than in the past three years, and the situation is expected to get better after this year.

Driving the key recovery in manufacturing will be improved demand in the U.S. for Canadian exports and the recovery in the steel-consuming auto industry.

Specifically, the Conference Board predicts demand for autos and parts this year will increase by more than 10 per cent, contributing to a growth in manufacturing output of 3 per cent.

Ruth Liebersbach, president of the Hamilton Chamber of Commerce, said the Conference Board outlook matches the chamber's reading of the economic tea leaves.

"It mirrors what we see as a fragile recovery," she said, attributing the fragility to continued slow growth in employment.

"As long as employment is down, people are going to remain cautious, but that increase in housing starts shows that people are starting to open their pocketbooks again," she said.

The uptick in manufacturing activity will be matched by a rise in construction across the city, especially in the housing market.

Last year, housing starts dropped to about half their 2008 level.

This year, the Conference Board said they're expected to spike to almost 2,500 from 1,857.

Starts of single-family homes began to bounce back in the third quarter of '09 and are predicted to surge 56.2 per cent this year.

Starts of multiple units -- apartments and townhouses -- will rise this year partly in response to provincial and federal government funding of social housing projects.

Together, housing starts are forecast to rise 34.4 per cent.

Construction activity outside housing will continue to boom because of road and sewer projects, work on the Hamilton cardiac care centre, $290 million in hospital renovations and construction of the CANMET Materials Technology Lab at the McMaster Innovation Park.

The improvement could be even greater, McIntyre added, if construction of the proposed light rail transit system goes ahead.

An improved outlook in manufacturing and construction will also drive an upsurge in the service sector where growth is expected to run between 2.6 and 3.1 per cent.

All of that activity will help boost the city's real estate sector, added Joe Ferrante, president of the Realtors' Association of Hamilton-Burlington.

"I think we're positioned in a good spot now," he said. "Any overall improvement in the economy is going to be good for real estate."

[SteelTown]

Last year's big projects diversify city tax base

March 09, 2010
Meredith Macleod
The Hamilton Spectator
http://www.thespec.com/News/Local/article/734617

Hamilton made big strides in boosting its non-residential tax base in 2009, with huge gains on the crucial industrial and commercial fronts.

While building permit values were down 15 per cent overall, industrial building permits grew in value by 113 per cent in 2009 over the previous year, and commercial permits increased by 37 per cent.

The industrial permits were valued at $115 million last year and commercial permits valued at close to $195 million.

Director of economic development Neil Everson said the numbers, all contained in a series of economic performance reports to councillors, are a good indicator of current economic activity and job creation. He said other area municipalities did not achieve such growth.

Some of the big projects include the Tim Hortons coffee roasting plant, $30 million; the CANMET materials lab, $60 million; and Mountain Plaza Mall, $55 million.

Others are the Red Hill Toyota dealership, the new Ancaster Fairgrounds, upgrades at ArcelorMittal Dofasco, and the Centre on Barton (the former Centre Mall).

City number-crunchers have long been concerned about Hamilton's heavy reliance on the residential taxpayer and a lack of assessment growth in the commercial and industrial areas.

But last year, both sectors soundly beat the four-year average, by 77 per cent on the industrial side and 72 per cent on the commercial.

Residential building was hard hit by the recession last year, falling 32 per cent in value over 2008.

The city issued $282 million in residential building permits, sharply down from the four-year average of $398 million.

The institutional sector was also off by 57 per cent over 2008, but much of that sector, which includes hospitals and schools, doesn't generate tax revenue for the city.

So far, 2010 is proving to be a strong year, with building permits up 108 per cent over January and February of last year.

The big coup is Canada Bread, which announced last month a $100-million, 375,000-square-foot bakery, which will make it the first tenant in the newly renamed Red Hill Business Park.

That will encourage other businesses to follow, Everson said.

"I call it the lemming effect," he added.

Council members praised Everson and his department for producing such positive results while the city was in the grip of the recession.

"I'm sensing that Hamilton is finally economically gaining at other municipalities' expense where for so many years the reverse was true," said Councillor Tom Jackson.

"We are seeing some spectacular growth," said Mayor Fred Eisenberger. He said performance measures across a broad range of indicators show the city's $1.5-million increase to the economic development budget last year paid off.

Overall assessment growth came in at 1.3 per cent. While that was short of the city's target of 1.5 per cent a year, Everson said it was a good result given the economy last year.

Close to half of the growth came from the industrial and commercial sectors, which had accounted for about a quarter of the growth in the previous two years.

Economic development staff also focused on a business retention program called Hamilton Calling, which surveyed 354 business owners last year.

"The Hamilton Calling program has really ramped up and that to me is the star of the show," said Councillor Brian McHattie.

"Keeping in touch with people who are already here is where our growth is going to be."

Everson said his department will be focused on completing a four-year economic development strategy, expected to be presented to council in June. He said major catalysts will include the Pan Am Games and light-rail transit.

The city is also throwing its efforts into marketing through social media and has been recognized for its success.


IN OTHER MEASURES OF 2009:

* Hamilton's unemployment rate was below the provincial average and two full percentage points below any other manufacturing centre in southern Ontario;

* The city lost 200 businesses in 2009. City council has set a target of increasing the number of businesses yearly by 5 per cent;

* The direct economic impact of film shoots dropped to $6.1 million in 2009 from $6.6 million in 2008;

* The downtown office vacancy rate dropped 25 per cent from 2008 to 2009;

* Only three residential units were added downtown, well short of the target of 150 a year;

* Ancaster Industrial Business Park sold out a 35-acre phase in 10 months;

* The economic development office achieved a 95 per cent approval rating from clients in 2009, breaking a city target of 90 per cent;

* 69 per cent of 354 companies surveyed in the city's Hamilton Calling program said they intend to expand in the next three years;

* The city sold $4.2 million in non-core assets and purchased about $20.5 million in property and capital projects.

[SteelTown]

[realcity]

Mountain Plaza Mall
Centre Mall Power Centre
A toyota dealership


commercial and industrial beat out residential because residential fell 32%. Kinda like losing private industrial jobs, by default education and healthcare rise to the top.

[SteelTown]

We've increased our tax base, that's the important part for me.

[realcity]

Siemans is closing its Sanford plant. 500 jobs gone.... good paying jobs

[LikeHamilton]

Siemens Hamilton cuts 550 jobs

TheSpec.com Lisa Grace Marr

Moving gas turbine division to North Carolina

Siemens Fossil Power Generation division in Hamilton announced today that it is moving its Hamilton gas turbine manufacturing arm to Charlotte, North Carolina, affecting 550 jobs.

The division will shut down Hamilton operations by July 2011.

Brian Maragno, operations manager at the Hamilton plant, said the decision was in no way a reflection of the quality of its employees.

“We have a long history in Hamilton - more than 100 years - I can say that I hold the employees here in the highest regard.”

Maragno said Siemens made the decision to move the gas turbine division to Charlotte to be closer to its customer base.

The 200 service-related positions at the Milton Avenue plant will remain.

The affected employees may be offered positions in Charlotte or in Siemens’ Canadian operations, said Maragno.

The Hamilton plant was responsible for the manufacture of large efficient gas turbines for the new Halton Hills Generating Station - expected to be ready for commercial operation this year.

http://www.thespec.com/News/BreakingNews/article/735564

[bigguy1231]

Another one bites the dust.

I have to laugh when these companies say they are moving to be closer to their customer base. They are moving to North Carolina in this case because it is one of the many states in the US that is a right to work state or as I like to call them a slave state. These are states where workers have no rights and no ability to organize. They can pay them minimum wages and no benefits. US Steel did the same when they moved production from here to Alabama and closed the former Stelco plants. This is what Free Trade got us, minimum wage service industry jobs.

[highwater]

Originally Posted by bigguy1231

Another one bites the dust.

I have to laugh when these companies say they are moving to be closer to their customer base.

Yep. Laughable. Haven't these guys heard of a little thing called 'Globalization'? Or maybe they think our education system is as bad as the American one and we haven't heard of globalization.