Halifax: The Economic Engine of the Maritimes

[q12]

Report: Halifax shares its clout

May 17, 2012 - 8:30pm BY JOHN DEMONT BUSINESS REPORTER

City unique in ‘influence beyond its own borders’

Halifax’s economic clout reverberates as much in New Brunswick and Prince Edward Island as in Nova Scotia, a new report concludes.

Indeed, the report’s author says Halifax is unique among Canada’s economic powerhouse cities.

“Our study shows that Canada’s census metropolitan areas make large contributions to their provincial economies,” Alan Arcand, principal economist with the Conference Board of Canada’s Centre for Municipal Studies, said in an interview Thursday.

“Halifax is the only one that has an influence beyond its own borders.”

That, he argues, should be a factor when Ottawa considers ways to stimulate the national economy.

“When the federal goverment is handing money out to cities, they shouldn’t spread it around like peanut butter,” Arcand said.

“They should target hub cities (like Halifax) because investing in hub cities means even more growth in outlying regions.”

Read more here: http://thechronicleherald.ca/busines...ares-its-clout

BMO Economics: Shipbuilding Contract Will Stimulate Nova Scotia Economic Growth

PRESS RELEASE
May 3, 2012, 10:24 a.m. EDT

- The Federal contract is expected to support the economy for years to come

- Natural gas exports set to rise when Deep Panuke production starts

- Nova Scotia has lowest jobless rate in Atlantic Canada

- Real GDP growth of 1.8 per cent in 2012, 2.4 per cent in 2013 (Canada's at 2.0 per cent in 2012, 2.5 per cent in 2013)

HALIFAX, NOVA SCOTIA, May 03, 2012 (MARKETWIRE via COMTEX) --

Economic growth in Nova Scotia is poised to pick up, as the Federal shipbuilding contract will boost activity for years to come, according to the Provincial Monitor report released today by BMO Economics. The contract landed by Irving Shipbuilding to build combat ships for the Royal Canadian Navy is worth an estimated $25 billion through 2030. As a result, while real GDP will likely grow at a still-modest 1.8 per cent pace this year, this will accelerate to 2.4 per cent in 2013 when shipbuilding activity picks up.

Read more here: http://www.marketwatch.com/story/bmo...wth-2012-05-03

It's good to see that Halifax's economic activity has had such a positive effect on New Brunswick and P.E.I. along with Nova Scotia. I think cities like Moncton and Charlottetown among others really stand to benefit from the region's economic powerhouse going into overdrive in the next few decades.

Here is an Editorial in the Herald that talks about how Halifax needs to take advantage of it's economic status in relation to developing Downtown Halifax.

http://thechronicleherald.ca/editori...wntown-halifax

[someone123]

I wish they were more upfront about where the reports are and I wish the Conference Board of Canada simply put up links instead of trying to get people to register (really they are just a private business).

The Maritimes are very small geographically so they are unique in Canada. The distance from Halifax to NB is only about 2/3 the distance between Calgary and Edmonton, and the distance from a city like Toronto to its provincial borders is even greater. In the future I hope people will start to take this into account more and more and realize that there isn't much real difference between NS and NB or PEI.

All that aside, I have to take issue with some of the statistics. For example, one article said Halifax's downtown is anaemic because it has a low % of the overall tax base in the municipality. That might mean that HRM could get more out of the downtown if it were managed better (that is not really guaranteed -- some cities just have more big businesses than others), but it doesn't mean that Halifax has a small or failing downtown, particularly compared to other cities. The downtown report actually shows that Halifax has some of the highest combined densities for office workers and residents.

GDP numbers can also be really misleading. They're not income figures and they're problematic even as a vague measure of overall success. If you take money from foreign creditors, for example, GDP goes up. If your oil rig explodes and you have to clean it up, GDP goes up. If a big multinational opens a factory in Latin America, GDP goes up by 100% of the output of the factory, but profits are siphoned off to another country. If you sell off your natural resources, your GDP goes up. Assets go down, but GDP does not count that.

It's particularly bad when GDP is presented per capita, leading people to believe that that is the average income that people are getting. It's also misleading when the papers rely on a very short time scale and pretend the economy is like musical chairs with winner and loser provinces every year.

[someone123]

Here's an interesting article about the average age in NS, Halifax, and other parts of Canada: http://metronews.ca/features/census-...-census-finds/

NS is the top province for average age, but Halifax is the second-lowest city. Only Calgary has a larger non-senior percentage.

It's a bit weird how they interviewed somebody from Fall River about how seniors can't afford Halifax. They seem to have missed that the statistics are for the Halifax CMA, which includes Fall River. The parts that have the most seniors are the true rural areas like Western NS, and I think the reason for this is that many young people leave for either Halifax or other provinces.

[fenwick16]

There seems to be a lot of development taking place in the Halifax area but there are predictions of a labour shortage. It makes me wonder if there is a province-wide effort to attract workers to the Halifax area. The idea of promoting the rural areas doesn't seem to have paid off for the provincial government.

(source: http://thechronicleherald.ca/busines...ding-challenge )

Halifax rents could rise with building challenge
June 12, 2012 - 6:47pm By BRETT BUNDALE Business Reporter

Worker shortage may slow projects, drive up costs

Rents in Halifax could rise as the city’s booming construction industry grapples with a labour shortage, industry experts say.

John Volcko, vice-president and district manager for PCL Constructors Canada Inc., said the shortage of skilled workers is “extraordinarily serious” for the construction industry.

“The pace and number of projects that will be delivered is actually going to be limited by the amount of labour that is available so it’s a very serious issue,” he said following a presentation at the Atlantic Provinces Economic Council major projects conference Tuesday.

Volcko is optimistic there are solutions to the looming labour shortage, including encouraging more young people to take up a trade and expanding community college programs and apprenticeships.

But in the short term, the lack of skilled workers is likely to take a toll on Halifax’s roaring construction industry.

A potential slowdown in new construction, especially multi-unit residential, could have an impact on rents.
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[someone123]

Originally Posted by fenwick16

The idea of promoting the rural areas doesn't seem to have paid off for the provincial government.

There was an article tonight about an expanding salmon farming company in the Shelburne area that will create an extra 350 jobs.

I think a big part of the problem in NS isn't so much that there's no opportunity, it's that people expect to carry on doing the same thing they have for decades, and they want the government to make it work. There isn't much economic dynamism and entrepreneurship. There rarely is in rural areas -- they're not very suited to economic specialization and technological development.

I don't fundamentally agree that the Maritimes just have fewer resources than other areas, which used to be a very common argument for why they are less economically successful (though it should also be pointed out that the gap in wealth between the Maritimes and other provinces like Ontario was much larger back in the 1950-1970's period when manufacturing was still strong).

Another factor that I suspect people just don't want to talk about much is that a lot of young people don't want to stay in remote rural areas and they are not interested in the lifestyle of their parents or grandparents. Some move for economic gain alone but that's not the whole story.

[ILoveHalifax]

I have to wonder with all the government money going into old unsustainable industries, yet no money for a stadium in Halifax. A CFL size stadium would be an investment, a very small investment by comparison, into the future and a CFL team a catalyst for growth in Halifax.

[q12]

BMO: Halifax Has Growth in its Sails

BMO releases report on HRM - outlook for economy, housing and labour market

- Unemployment rate expected to drop to 4 per cent by 2016,
with 12,000 new jobs created

- Housing market performing well and residential construction well-supported

- BMO offering support to Canadian businesses by making an additional $10 billion in credit available over next three years

HALIFAX, NOVA SCOTIA, Jul 18, 2012 (MARKETWIRE via COMTEX) -- Employment growth in the Halifax Regional Municipality (HRM) is expected to strengthen through 2016, with the addition of about 12,000 new jobs as shipbuilding activity ramps up, according to a special report released today by BMO Capital Markets Economics - Halifax: Growth in its Sails. With the addition of these jobs, report states that the unemployment rate will be pulled down to pre-recession levels of 4 per cent.

Read more here: http://www.marketwatch.com/story/bmo...her-2012-07-18

[halifaxboyns]

I found the article interesting. Some coworkers and I were having this discussion about the lack of skilled workers and the attraction to Alberta. Personally, I think what's going to happen is when the ship contract starts a lot of the skilled labour that came out this way, will head back. Many people left families to go and earn money, I can see many of them wanting to go back if the opportunity presents itself (I know I do).

[someone123]

Originally Posted by halifaxboyns

Personally, I think what's going to happen is when the ship contract starts a lot of the skilled labour that came out this way, will head back. Many people left families to go and earn money, I can see many of them wanting to go back if the opportunity presents itself (I know I do).

Historically a lot of people like the lifestyle that the East Coast offers but ended up elsewhere because of job opportunities. If Halifax does develop one of the best economies in the country then it will have a lot of drawing power. It is not a huge stretch to think of Halifax playing the kind of role that cities like Austin do in the US.

I'm interested to see how the new money will fuel other aspects of the city, like its cultural offerings.

[BravoZulu]

Originally Posted by someone123

I'm interested to see how the new money will fuel other aspects of the city, like its cultural offerings.

It will definitely be interesting to see what kind of demands will be made from those who return. It's one thing to grow up in a city the size of Halifax and accept that we can't have the things other cities have, it will be completely different if a large number of people return knowing that Halifax can and should have so much more in the way of services and entertainment than it currently does.

[-Harlington-]

Wasn't to sure where to put this but a few people posted it in the Canadian skyline thread so heres some interesting maps of the Halifax area:

http://env-blogs.uwaterloo.ca/atlas/?page_id=61