newsletter

Volume 1, Issue 1
July 2003
E CONOMIC
D EVELOPMENT N EWS
SUPPORT ALBERTA BEEF CAMPAIGN LAUNCHED
INSIDE THIS ISSUE:
Call Centres to Create 800
Jobs .............................. 2
Economic Impact Studies
Released ........................ 2
About Convergys .............. 3
About Western Wats .......... 3
Building and Business
Stats .............................. 3
Iunctus Geomatics Corp. .... 4
Home Depot Opens in
Lethbridge ...................... 4
About Economic
Development .................. 5
A lot of people noticed that their produce bills
seemed a little steep towards the end of May.
Strange the havoc one sick cow can wreak.
The repercussions of the discovery in Canada of a
cow infected with Bovine Spongiform
Encephalopathy (BSE) are myriad. The produce
example is just a minor, if not very obvious, one.
Truckers moving beef south would generally bring
fruit and vegetables north. Now produce importers
must pay for two-way trips. Canadian consumers
pick up the price.
More obvious is the growing disaster in the cattle
industry and reverberations in related sectors.
Statistics show just how crucial the cattle industry is
to the economy of Alberta:
• OF THE 90,000 BEEF FARMS AND RANCHES IN
CANADA, OVER 30,000 ARE IN ALBERTA.
• OVER 70% OF CANADIAN CATTLE ARE FED IN
ALBERTA.
• CANADA’S BEEF CATTLE INDUSTRY IS THE
LARGEST SINGLE SOURCE OF FARM INCOME AT
Yearly Publications
Released ........................ 6
Strategic Plan Synopsis ...... 6
Over 70% of
Canadian cattle
are fed in
Alberta.
Alberta annual
beef exports to
the US exceed
$1 billion.
$8 BILLION ANNUALLY, $4 BILLION IN
ALBERTA.
• ALBERTA ANNUAL BEEF EXPORTS TO THE US
EXCEED $1 BILLION.
• CANADA EXPORTS 70% OF CANADIAN BEEF
AND CATTLE PRODUCTION.
ALMOST
Thousands of people in this area alone have been or
will be seriously affected by the export ban on
Canadian beef, not only producers, but also those
involved with the cattle industry. A partial list of
such sectors would include: feed mills and distributors; wholesale and retails sales; fuel companies;
professional services; restaurants; hardware stores;
auction markets; packers/butchers; farm equipment
sales and services; trucking; veterinary services;
truck sales and services and lumber yards.
All of us will be affected indirectly by the potentially
devastating economic ramifications. Produce prices,
unfortunately, are just the tip of the iceberg.
In light of this situation, Economic Development
Lethbridge is coordinating a community-based initiative to support our cattle
industry, the
Support Alberta
Beef Campaign.
By the end of
May, the group
had planned a
community rally
at the Yates
Memorial theatre; invited
businesses to
offer specials
and display
“PROUD TO
SERVE ALBERTA BEEF” and
“PROUD TO
SUPPORT
ALBERTA BEEF”
signs; and
planned community barbecues and other
events.
Design and layout by
Economic
Brava Advertising & Design
Development
Lethbridge and their community partners also
began creating action groups dedicated to setting
up meetings with local/provincial/federal politicians;
keeping in touch with those elected officials; generating key contacts with various associations and
business groups; educating the public; lobbying
governments; generating business support; and
devising and conducting advertising and public and
media relations strategies.
At the same time, the Support Alberta Beef group
has stressed the importance of letting the various
government inspection and regulatory agencies do
their job. To a great degree, the problem will be
resolved out of our area.
STRATEGIC PLAN FOR ECONOMIC
DEVELOPMENT LETHBRIDGE
Economic Development Lethbridge has developed a draft version of a strategic plan for the organization.
All interested parties are invited to make comments or suggestions about the plan. A synopsis of the plan
is on page six. The plan can be viewed in full at www.ecdevlethbridge.com; comments can be sent to
[email protected].
Page 2
Volume 1, Issue 1
CALL CENTRE
BENEFITS
Employment,
particularly for
younger people
There are about 14,000
post-secondary students in Lethbridge and
youth unemployment is
around 9%. Call centres
use this labour pool
and alleviate some of
this unemployment.
Bigger economy
Call centres inject outside money into the
local economy, making
the pie bigger so to
speak.
Even more jobs
Studies suggest that
over the next couple of
years, the economic
impact of the two new
call centres will indirectly create at least
400 jobs on top of the
directly-created 800.
Sends a message:
Lethbridge is open
for business
Investment by call centres indicates to other
large companies that
Lethbridge is a good
place to do business.
Use of vacant space
Call centres utilize
some of the city’s
vacant office and commercial space.
NEW CALL CENTRES TO CREATE 800 JOBS
In the past few months, Lethbridge has become
the beneficiary of two major business investments by two leading call centre companies.
In late March, Western Wats of Provo, Utah,
announced the opening of a 150-station call centre, which will also be their Canadian headquarters. Western Wats, the largest independently
owned market research data collection company
in the US, makes calls all over North America for
business surveys, polling and other market
research.
In May, Convergys, a multinational company
based in Cincinnati, announced that they would
be establishing a state-of-the-art, 45,000-sq-ft,
300-station facility for incoming calls in
Lethbridge Centre. Convergys is the global
leader in their field, with annual revenues
exceeding $2 billion US. Their employees will
receive calls from all over North America dealing
with customers seeking technical support for
computer software, using financial services,
making catalogue orders, etc.
Our city is very fortunate to have two higher-end
call centre companies here. Both are very reputable companies with excellent employment
practices. Convergys jobs are the cream of call
centre positions. They pay the best and because
people are calling in by choice, these types of
jobs have the highest level of employee satisfaction. Western Wats’ specialty is market research;
they do no telemarketing (telemarketing being a
major irritant for many people and the main reason call centres get a bad name).
Between them about 800 new jobs will be created by the end of this year. Call centres typically
employ younger people, students, seniors and
other people who are interested in flexible
hours. Our unemployment rate among younger
people is around 9%.
“We set a very high standard of excellence and
we are very excited about building a long-term
relationship here. Lethbridge has the people,
Mayor Bob Tarleck; Gloria Griffin, Convergys Senior
Director Site Planning; Ed Fetting, CEO Economic
Development Lethbridge
resources and infrastructure,” said Convergys
Senior Director of Site Planning, Gloria Griffin.
These companies both indicated that one of the
main reasons they chose Lethbridge was for our
pool of educated workers, approximately 14,000
post-secondary students at LCC and the U of L.
Added Western Wats’ Director of Canadian
Operations, Doug Montague: “We’re very
pleased with our decision. The response has
been strong—we’ve already hired 70 people and
have started operations.” Western Wats is currently dealing with political, public opinion and
travel-related contracts.
“We welcome these centres and are very excited
about their vision and investment in our community,” said Mayor Bob Tarleck. “This is certainly
proof that we have what it takes to attract business and successfully compete with other North
American cities.”
“Attracting industry leaders like Convergys and
Western Wats diversifies our economy and provides job opportunities,” said Ed Fetting, Chief
Executive Officer of Economic Development
Lethbridge. “Our excellent education system,
combined with the college and university, is
allowing our city to prosper in the new knowledge and information skills economy.”
ECONOMIC IMPACT STUDIES RELEASED
Recent studies commissioned by the University of Lethbridge and the Alberta Association of Colleges
and Technical Institutes show quantitatively that the U of L and Lethbridge Community College are
responsible for great contributions to the local and provincial economies.
A study by U of L economist and Associate VP Academic, Dr. Shamsul Alam, shows that of the $89
million total expenditure of the university, most of it is spent locally. The study also concludes that
the impact of that spending on the local economy based on a multiplier effect—the estimated number that indicates the impact of the actual expenditures as well as subsequent spending caused by
the initial spending—is $134 million.
The university also employs about 1100 people. With the multiplier effect factored in, the U of L’s
impact on the Lethbridge economy actually means about 1700 jobs. On average, the study suggests,
an increase of one student enrolled at the U of L means another $22,000 in direct income to the local
economy.
The college study found that for every dollar invested by Alberta colleges and tech institutes, $1.55 in
wages and salaries is added to the economy. It also showed that the rate of return on investment for
students is 14%—in 10.1 years, the cost of educating each student is paid back to the province. Also,
the study indicates that, on average, students earn an additional $1900 per year for each year they
spend in college.
Page 3
Economic Development News
ABOUT CONVERGYS
• The 45,000-sq-ft Convergys customer contact
centre is located in Lethbridge Centre downtown.
• Convergys employs more than 44,000 people
around the world, more than 10,000 in
Canada.
• Convergys worldwide manages more than
1.7 million separate customer and employee
contacts each day.
• Convergys is on the net at
www.convergys.com, and has world headquarters in Cincinnati.
CALL CENTRE
BENEFITS
CONTINUED
Work experience for
youth
Call centres help the
younger workforce build
much needed job experience.
Boost for local businesses
Ongoing: Activity for
nearby businesses.
Intermittent: Traffic for
the airport and ancillary
transportation services,
and business for hotels
and caterers.
Start-up: Construction
and related businesses
are being utilized for
leasehold improvements.
Convergys will create 500 new jobs.
ABOUT WESTERN WATS
• Their new 12,000-sq-ft facility is located in the
Sandman Hotel Plaza.
• Western Wats expects to create 300 jobs here
by the end of 2003.
• Western Wats conducts roughly 3.6 million
completed interviews on topics ranging from
current events to the design of cereal boxes.
• Western Wats has 12 interviewing centres in
the western states; the Lethbridge location is
the first Canadian centre.
• Western Wats’ web address is
www.westernwats.com. Head office is in
Provo, Utah.
New business for
telecommunications
providers
Call centres create new
business for telecommunications providers.
Increased use of public transit
Corresponding revenues
to the City also increase.
Director of Canadian Operations Doug Montague in Western Wats’ new call centre.
LETHBRIDGE BUILDING AND BUSINESS STATS
Residential Bldg
Permits Issued
$ Value
Commercial/Industrial/
Institutional Bldg
Permits Issued
$ Value
New Business
Licenses Issued
(Not Home-based)
New Home-based
Business Licenses
Issued
Jan-03
72
$3,907,000
25
$2,907,800
25
31
Feb-03
68
$4,221,200
12
$1,394,700
11
12
Mar-03
93
$5,892,000
21
$8,728,798
20
20
Apr-03
140
$9,124,300
18
$3,141,136
16
19
Total to Date
373
$23,144,500
76
$16,172,434
72
82
Page 4
Volume 1, Issue 1
IUNCTUS GEOMATICS CORP. SHOWS PROMISE FOR
KNOWLEDGE-BASED COMPANIES
Iunctus Geomatics Corp. is a thriving Lethbridgebased geographical information systems company. Founded by company
president, Ryan Johnson,
a U of L grad (BSc and
MSc in Geography),
Iunctus is a feisty little
high-tech company that
has succeeded despite
many odds.
While doing work as a U
of L student, Johnson,
who is now 30, developed software that is very
useful for people using computers to generate
geographical data for mapmaking. From that
humble beginning, with the help of a group of
mostly local investors and some government
funding, he formed Iunctus. Iunctus offers digital
mapping services and their TerraEngine™ software services to a wide range of industries in
North America.
Another Iunctus claim to fame is the fact that
they own the Canadian rights to SPOT satellite
information. SPOT is a group of satellites that
create extremely high-resolution images of the
earth’s surface. This photography can provide
information for a wide swath of applications—
military, agricultural, disaster management,
forestry management, urban planning, flight simulations and more.
Last year, Iunctus impressed the French space
agency that owns SPOT (System Pour
l’Observation de la Terre) with a well-crafted
business plan, thus winning the deal over huge
multimillion-dollar companies who were also
competing for the rights.
Though his small-city cheap rent is a boon,
Johnson speaks frankly of his difficulties keeping
the firm here. Even though the U of L and LCC
produce capable computer programmers, he
said, it is difficult keeping them in Lethbridge
when they perceive the bigger markets to be
more dynamic and less isolated from their peers.
Johnson added that because most of the assets
of knowledge-based industries are not tangible,
he has had a great deal of trouble arranging any
kind of financing from banks.
Said Johnson: “Banks don’t like it when you say
you’re going to spend money on computers,
data and software. They all told me, ‘Knowledgebased industry can’t be done here.’” He also
mentioned that many granting agencies prefer
big-city locations for high-tech firms, “where
they can keep an eye on you.”
Ed Fetting, CEO of Economic Development
Lethbridge, said that his organization is spearheading a community-based strategy that would
lead to resolving some of the problems Johnson
encountered. Added Fetting: “We have to understand that not only can it be done in Lethbridge,
we also need to support such endeavors.”
HOME DEPOT OPENS IN LETHBRIDGE
The Lethbridge
Home Depot is
the first new
small-city
prototype.
On May 29, Home
Depot had its
grand opening.
Fixer-uppers
couldn’t be
happier. The
75,000-sq-ft store
also has a 20,000sq-ft outdoor garden center. And
this is a small one;
most Home Depots
are 95,000 sq ft.
what most big-box retailers pay.
Said Gagnon: “I saw people crying tears of joy
when they were hired.” Gagnon has hired 150
associates and will hire about 20 more for the
busy summer months.Gagnon added that,
although Home Depot is based in the US, “every
single penny on the profit line in our Canadian
stores stays in Canada.”
General Manager Steve Gagnon and
staff member Debi Weiterman
The Lethbridge store is the first new small-city
prototype for the world’s largest home improvement retailer.
For eight consecutive years, Home Depot has
been ranked by Fortune magazine as Most
Admired Specialty Retailer. And the company
recently received an award for Excellence in
Employee Development at the Retail Council of
Canada’s 2002 Excellence in Retailing Awards.
Steve Gagnon, general manager of the new
Lethbridge store, says he believes Home Depot is
the best company to work for in the retail industry. Home Depot employees make almost twice
Gagnon is a veteran store-opener. Before working for Home Depot, he opened 45 Wal-Marts in
North America. This is his first Home Depot
opening. Congratulations to Steve and his staff.
Page 5
Economic Development News
ABOUT ECONOMIC
DEVELOPMENT LETHBRIDGE
Economic Development Lethbridge is a community-based organization formed by an act of
Lethbridge City Council. Though Economic
Development Lethbridge is funded and formed
by Council, it is an independent organization run
by a volunteer board. Board members represent
24 different sectors of the community. Council’s
intention when forming the board was to make
sure that all voices would be able to contribute to
the economic development process in the city.
Ed Fetting, Paul Pharo and Mayor Bob Tarleck
In February of this year, the board hired the
Coaldale-born Eduard Fetting, BA, MA, MBA, as
Chief Executive Officer. Fetting comes to Economic Development Lethbridge with many business,
political and communications skills, not least of which is his steadfast advocacy of the Lethbridge
area.
Many people worked hard to promote the idea of an independent economic development organization for the city. These included representatives from the Chamber of Commerce, U of L and LCC, as
well as many businesspeople and other individuals. They saw the need to have an organization
devoted to economic development for the betterment of Lethbridge and also to maintain the
strengths that exist here. Their foresight and commitment is to be congratulated.
The Chairman of
Economic
Development
Lethbridge is
Paul Pharo, the
Vice Chairman
is Mayor Bob
Tarleck and the
Chief Executive
Officer is
Eduard Fetting.
Economic Development Lethbridge is a new organization that has been laying the groundwork needed by a new board. At the same time the organization has been dealing with such opportunities as
the establishment of two call centres and severe challenges like the closure of our borders to beef
exports.
This is an exciting time for Economic Development Lethbridge as it creates new energy and holds an
important piece for the community.
ECONOMIC DEVELOPMENT LETHBRIDGE BOARD MEMBERS
Sector Represented
Aboriginal
Agricultural
Arts and Culture
Chamber of Commerce
City Appointee
City Appointee
College
Commercial
Construction
County/Airport
Environment
Finance
Industrial
Multi-Cultural
Not for Profit
Recreation/Sports
Regional
Retail
Seniors
Service
Tech/Research
Tourism
Transportation
University
Economic Development Board Member
Jay Colter Smith
Glenn Coulter
Suzanne Lint
Rick Ross
Bryan Horrocks
Mayor Bob Tarleck, Vice Chairman
Donna Allan
Rollie Beauchesne
George McCrea
John Kolk
Sylvia Campbell
Janene Moch
Chris Spearman
Sarah Amies
Dawna Coslovi
Ron Hammerback
Andy Kovaks
Cathy Semchuk
Fred Bosma
Paul Pharo, Chairman
Stephen Graham
Gayle Jensen
Bill Waugh
John Usher
Economic
Development
Lethbridge is an
independent
economic development organization
run by a
volunteer board.
Board members
represent 24
different sectors of
the community.
Page 6
Volume 1, Issue 1
Economic Development News
200, 817 - 4 Avenue South
Lethbridge, AB, Canada T1J 0P3
Telephone: (403) 320-3017
Fax: (403) 320-4259
E-mail:
[email protected]
ECONOMIC DEVELOPMENT LETHBRIDGE
RELEASES YEARLY PUBLICATIONS
Economic Development Lethbridge is proud to announce the release of our annual community
almanac, the Lethbridge Profile, and our annual directory of manufacturers, Made in Lethbridge.
The Profile is a comprehensive compilation of data and information about the city of Lethbridge.
From demographics to traffic flow to major employers, the Profile is an invaluable resource for potential investors, current businesses, residents, students and anyone interested in having Lethbridge at
their fingertips.
The Made in Lethbridge directory is a thorough collection of data on the manufacturing industries in
our city. This is also an excellent resource, especially for local businesses and potential investors.
These booklets can be picked up at City Hall on the 2nd Floor or can be printed off the Internet at
www.lethbridge.city.ab.ca/profile/default.htm. To order one, call 1-800-332-1801 or locally 320-3910, or
e-mail [email protected].
ECONOMIC DEVELOPMENT LETHBRIDGE
DRAFT STRATEGIC PLAN SYNOPSIS
Economic Development
Lethbridge has developed a draft version of
a strategic plan for the
organization. All interested parties are invited
to make comments or
suggestions about the
plan.
The plan can be viewed
in full at
www.ecdevlethbridge.com;
comments can be
sent to
[email protected].
Our Mission:
To strengthen and develop the Lethbridge economy by initiating and facilitating proactive economic development strategies and promoting Lethbridge as an excellent place to live, invest and do business.
Our Vision:
To be a credible, accountable and dynamic organization, working in alliance with the community, leading
the city of Lethbridge and region towards sustainable economic growth and development.
Our Role:
To Educate - residents, organizations and businesspeople about the importance of economic development
initiatives, opportunities, trends and challenges on a municipal, provincial, national and international basis.
To Facilitate - alliances and partnerships that build on Lethbridge strengths and unique capabilities; and
agreements and negotiations between investors and various community organizations and businesses.
To Initiate - strategies and actions to stimulate economic development and create wealth and opportunity
for the community.
To Communicate - to internal and external audiences the positive and exciting message about the city of
Lethbridge and surrounding region; and why Lethbridge is a good place to live, invest and do business.
To Motivate - individuals, organizations and businesspeople to be positive and to promote the city of
Lethbridge and Lethbridge assets.
Our Principles:
Integrity
Independence
Innovation
Inclusion
In terms of actions that Economic Development Lethbridge can take, the plan covers five main areas of economic development with broad goals, specific supporting objectives to meet the goals, and performance
measurements to help determine if the goals and objectives were met. The plan also identifies the partners
or players who would be involved.
Edited and written by
Tasha Diamant
Designed by
Misha Wilkin
The five categories and main goals are:
• Small Business and Entrepreneurship: To create, build and foster a climate of entrepreneurship and
small business development in Lethbridge.
• Business Retention and Expansion: To work with and assist existing Lethbridge businesses to prosper
and expand.
• Investment Attraction: To promote Lethbridge to internal audiences and market Lethbridge to external
sectors to attract residents, investment and new business.
• Innovation, Knowledge and Research: To foster and build on the unique opportunities and assets provided by various Lethbridge institutions.
• Long-range Issues: To facilitate and prepare Lethbridge for longer-range issues and initiatives.
Read the full Economic Development Lethbridge Strategic Plan at www.ecdevlethbridge.com.