Economy Thread [Archive] - SkyscraperPage Forum

ldoto

Apr 12, 2009, 3:46 AM

The stimulus cash: Council must look forward, not back

Posted By Philip McLeod

If, as expected, the City of London is eligible for $120 million of stimulus grants from the federal and provincial governments, how should that money be spent? That’s the question city council is grappling with at the moment, so far without much focus.

A recent list of possible projects prepared by City Hall staff lists no fewer than 40 projects which range in size, cost and complexity from the Springbank Gardens community room expansion for $300,000 to the southwest industrial servicing strategy for $202 million plus.

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.

This is not to suggest, however, there aren’t a lot of ideas out there. So many, in fact, council seems frozen at the cashbox.

For what it’s worth, our view is London should use this infusion of extra money to secure its future, not repair its past. Potholes and pipelines need to be fixed, certainly, but funds to do that should come from today’s municipal budget.

We should use the new money to wisely put in place the infrastructure that will create and sustain meaningful jobs tomorrow, if for no other reason than to ensure the citizens who must pay back what senior governments are borrowing to provide these stimulus funds are able to do so.

A roundtable chaired by London West MPP Chris Bentley recently suggested London use the money to begin developing the 401 / 402 corridor from the airport to the new Southside sewage treatment plant.

That’s one good idea that looks to the future. There may be others. The point being council needs to look ahead, not behind.

M II A II R II K

Apr 12, 2009, 3:51 AM

That post is more suited for this thread instead.

ldoto

Apr 14, 2009, 9:30 PM

Not sure if this post is in the right Tread!!!!:shrug:
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.

Stevo26

Apr 17, 2009, 2:18 PM

SlickFranky

Apr 17, 2009, 4:44 PM

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.

This is unforgivable. How can a city of this size not have a strategic growth plan? If we don't even know where we're going, how are we ever going to get there? Without such a plan our city is fated to continue making patchwork fixes to existing problems. I hope one day we get a real city council, instead of the amateurish town council we are currently stuck with.

I do agree with the HSR comment. It is coming eventually, and there are still many level crossings on the CN line that will need to be corrected. Even without HSR that work should have been done years ago.

MolsonExport

Apr 23, 2009, 4:57 PM

ldoto

May 6, 2009, 1:10 AM

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

May 9, 2009, 4:29 AM

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

May 14, 2009, 2:29 AM

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

May 14, 2009, 2:06 PM

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

ldoto

May 15, 2009, 3:46 AM

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

May 15, 2009, 4:08 PM

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

May 20, 2009, 2:58 AM

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

May 20, 2009, 4:03 PM

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

May 21, 2009, 2:18 AM

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

May 30, 2009, 4:11 AM

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

May 31, 2009, 1:06 AM

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

ldoto

Jun 2, 2009, 9:13 PM

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). :tup:

ldoto

Jun 4, 2009, 1:45 AM

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

Jun 18, 2009, 1:25 AM

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

Watch the Video!!!!!!:cool:

http://video.lfpress.ca/video/_/_/5828787001/_/26655798001

ldoto

Jun 24, 2009, 3:41 AM

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

Jul 3, 2009, 3:17 AM

Some encouraging signs in the local real estate market.

The London and St.Thomas Association of Realtors is reporting a 4.5% increase in home sales over June of last year.

A total of 946 homes changed hands last month. The increase in detached homes sales was 6.5% year over year, although condo sales were down 3.2%.

"We are very pleased to see a 4.5% increase in sales," says Joe Hough, LSTAR President. "2008 was a record-breaking year, so it is just outstanding to see a gain for June 2009 over June 2008. Sales may be down year-to-date, but the numbers we are seeing are still very positive."

Despite the 4.5% monthly increase, home sales for the year are still down by more than 11% from levels seen in 2008.

Still, some analysts see reason for optimism.

"Sales activity is now closer to the pre-recession peak than it is to the recent low point reached last January," says Dale Ripplinger, President of The Canadian Real Estate Association (CREA). "Strengthening consumer confidence, low interest rates, and improved affordability are drawing buyers to the housing market across Canada."

Meanwhile, Peter White, the President of the London Economic Development Corporation, thinks an economic turn around the the area may not be far off.

"I don't think we're going to see one big announcement that will help change things, but I think just this continuation of small positives is going to help us build towards a recovery".

ldoto

Aug 12, 2009, 3:47 AM

Despite another drop in new home starts last month, housing analysts believe the housing slump in the London area might be bottoming out.

In July, single-detached starts were down to 105 from 137 units in the same month last year.

However, Canada Mortgage Housing Corporation market analyst for London, David Lan expects a market turn around by early next year.

"As the economy and the resale market start to recover, we expect to see some improvements in single-detached home starts in 2010," said Lan.

Year-to-date starts were down about 31 per cent with apartment starts offsetting some declines in single starts.

MolsonExport

Aug 13, 2009, 2:50 AM

the economy sucks horseshit here in London.

GreatTallNorth2

Aug 13, 2009, 5:08 PM

Well, we have had some decent news in London in the last few years.

For example: our unemployment is way up and even double digits now. How many cities can claim that? Also, we have had some of the ugliest designed buildings go up in the past few years. In fact, London has some of the ugliest buildings in Canada that are concrete from top to bottom. Surely, that will put us on the map. Our transit system is thinking different too - no express buses and no plan for real BRT or LRT.

Hey guys! You know what this means? It means our city is different! We're unique! And if Anne Marie gets voted in for the next 10 terms, which is a probability, then we might beat Windsor or Gary, Indiana as one of the worst cities in North America!

MolsonExport

Aug 13, 2009, 7:15 PM

^but we will have that bar patio on Richmond Street as a consolation prize, owned by her worship's lush of a husband.

manny_santos

Aug 15, 2009, 4:16 AM

I look forward to Anne Marie being in the mayor's office as long as Hazel McCallion, who just announced she's running for a 12th term. The year will be 2035, there will still be an absentee problem at City Hall, Ambassador London will have been revived and discontinued three times, Commissioners west of Wharncliffe will still be two lanes, and Tim Best's patio will still be there, despite him being in prison for another drinking and driving incident and the Royal Bank building being long gone and replaced with another parking lot, despite that building gaining heritage status in 2029. I don't even want to predict what London Transit will be like. On the bright side, the Knights will win the Memorial Cup for the third year in a row that year, and it will make our lives just a little more tolerable.

It's going to be a fun century guys and gals!

MolsonExport

Aug 17, 2009, 3:23 AM

^and ribfest will be on the brink, and they still will not have built that land slated for a park near my home (4 years running now, just a sign) :mad:

And they will talk about giving Oxford/Wonderland a temporary resurfacing just because Tiger Woods will be in town to play the old-timers' golf open. And dep mayor Gosnell will be still collecting fees to advise Walfart to open a new outlet in Scottsdale (taxpayers will have to pay for highway upgrades and utility infrastructure, naturally).

ldoto

Sep 10, 2009, 4:02 AM

New home starts were up in the London Census Metropolitan Area in August according to preliminary figures released today by Canada Mortgage and Housing Corporation.

The construction of a 182 unit condominium apartment building drove month-over-month construction numbers into positive territory. :cheers: :cheers:

Single-detached home starts were down to 123 units from the 148 units in the same month in 2008. Year-to-date starts were down about 25 per cent.

"Apartment construction remains very resilient in London," said David Lan, CMHC's London Market Analyst. "While all other segments are down, rental and condominium apartment starts together are experiencing growth this year."

In the year to date, apartment starts were 755 units compared to the 697 units in 2008.

ldoto

Sep 11, 2009, 4:29 AM

Business Leaders to Develop Economic Action Plan for London

Close to 200 local business leaders and labour representatives were on hand for a brainstorming session at the Convention Center today.

The session includes speakers and discussion groups.

They're hoping to come up with an economic action plan which will be presented to City Council.

Peter White, President of the LEDC tells AM980 what they're hoping to accomplish.

"London's a super competitive city and how we continue to build off the advantages we have and build up things like life sciences, technology or advanced manufacturing or food processing. How do we make sure we stay strong in all of our major segments".

White also says he believes London's diverse economy will help to whether the recessionary storm

MolsonExport

Sep 11, 2009, 1:46 PM

White also says he believes London's diverse economy will help to whether the recessionary storm

what the fuck? London has the second highest urban unemployment rate IN THE COUNTRY and the guy says something like this? Is he living in 2007 or something? The recession has devastated London. And the mayor/council just sit back and convene conferences/studies, and refuse to take action. More of the same, from the same. Mediocrity.

oh, and the proper word is weather.

GreatTallNorth2

Sep 11, 2009, 6:31 PM

Also we are in Canada and it's centre, not center.

I picture the mayor, city council and these business leaders sitting at MacDonalds eating hamburgers and fries and all saying to themselves "this is the best meal we've ever had". They are just a bunch of clueless people that have no business running a city with a metro population of close to 500,000 people. Sad. And our city media is just as clueless.

manny_santos

Sep 15, 2009, 4:05 AM

what the fuck? London has the second highest urban unemployment rate IN THE COUNTRY and the guy says something like this? Is he living in 2007 or something? The recession has devastated London. And the mayor/council just sit back and convene conferences/studies, and refuse to take action. More of the same, from the same. Mediocrity.

oh, and the proper word is weather.

A lack of diversity in the regional economy is what got us into this mess. That, and the fact we're in Ontario, which is not the most competitve business environment in North America. London isn't alone in Ontario in this mess right now, just look at Windsor and even Toronto.

MolsonExport

Sep 15, 2009, 12:59 PM

Of course. But the fact that the guy said those things...whitewashing the devastated economic landscape that is the London area...

with guys like that in charge, it is no wonder that we have ended up where we are.

ldoto

Sep 22, 2009, 1:45 AM

London's commercial real-estate market shows signs of picking up

Mon, September 21, 2009

London continues to struggle with a high commercial vacancy rate but there are signs of a strengthening market, according to a survey released today.

CB Richard Ellis (CBRE) released the third-quarter survey of commercial real estate for major Canadian markets.

London’s overall commercial vacancy rate climbed from 13.6% to 14.8%, one of the highest rates in the country.

But the survey also noted the sublet market in London, as a percentage of vacant space, dropped from 13.6% to 7.3% year-over-year, a sign the market may be picking up.

Across Canada the vacancy rate for downtown and suburban office space climbed from 6.3 % to 9.4% compared to third quarter of last year.

The rising vacancy rates were most noticeable in Vancouver, Calgary and Toronto. CBRE analysts expect the trend to continue into 2010 as the recession continues to depress demand for office and commercial space.

sparky212

Sep 22, 2009, 2:54 AM

I learned an iteresting fact at D.O the other day . OLP is 90% occupied with 40 tenants

manny_santos

Sep 24, 2009, 4:05 AM

I learned an iteresting fact at D.O the other day . OLP is 90% occupied with 40 tenants

The old CIBC building on the northeast corner of Dundas and Richmond is likely a huge contributor to the vacancy rate. I'd like to see it renovated into storefronts and upstairs apartments. That is a valuable area and it seems like such a waste right now to have that amount of empty space.

QuantumLeap

Sep 24, 2009, 8:30 PM

The total amount of leasable office space in London is around 10,000,000 sq ft, so that translates into about 1,400,000 sq ft vacant. The CIBC building at Dundas and Richmond is probably about 50,000 sq ft, and the bottom floor is likely counted as vacant retail rather than vacant office, so the building is not a major contributor to the vacancy rate. All that said, I would really like to see it developed. My longtime thought has always been that it should be an LCBO (moving the current location at York and Ridout). Hopefully it could be like Toronto's Summerhill LCBO, the flagship of the LCBO stores, which has long business hours (closes at 11) and an incredible selection, in a beautiful building.

ldoto

Nov 9, 2009, 2:56 PM

General Motors Invests $90m in Cami Ingersoll
General Motors Co. will reportedly invest nearly $100 million to increase production at an assembly plant in Ingersoll.:tup: :tup: :tup: :tup:

Sources tell the Globe and Mail the upgrade to Cami Automotive Inc. will be announced today at the facility in southwestern Ontario.

The investment is designed to boost output of the Chevrolet Equinox and GMC Terrain crossover utility vehicles.

Both have experienced hot consumer demand and in October helped GM produce its first monthly U.S. sales gain in 21 months.

Cami has the capacity to make about 250,000 vehicles a year and GM will increase that by retooling one of two body shops. Sources say the retooling will take place over the next seven months and lead to the recall of about 150 workers now on layoff.

Another 350 workers were recalled last month when GM restored a third production shift at the plant. When this project is completed, about 2,200 workers will be fully employed and none will be on layoff.

ldoto

Nov 11, 2009, 2:54 PM

Council refuses to consider development on former Sun Life site
By JONATHAN SHER, LONDON FREE PRESS

London city council refused Monday night to consider development for a parcel of land outside its urban-growth boundary that's become a key dividing line between two factions of politicians.

A slim majority of council members agreed to take off the table for now any consideration of development of 47 hectares south of Wilton Grove Rd. and southeast of Highbury Ave.

The site had once been the target of Sun Life, which bought an option on it, then asked that city hall add it to the land that can be developed, a move that would have added as much as $8 million in value to the land.

When the global recession struck last year, Sun Life gave up its option and plans to build an industrial park that would have begun with warehouses.

The exit of Sun Life prompted city staff to recommend that council not give further consideration of allowing development there.

Board of Control disagreed, last week recommending city hall wait, but they were out-voted by council as a whole.

Coun. Roger Caranci led the failed effort yesterday to keep as an option the development of the land, arguing it was key to boosting economic opportunity along Hwy 401.

But his efforts to garner support failed both with colleagues and staff, Chief administrator Jeff Fielding noting council has made a priority 401 development near Veterans Memorial Parkway and Wonderland Road — not Highbury.

For the latest local coverage, read The London Free Press on the web or in print.

Jonathan Sher is a Free Press city hall reporter.

ldoto

Dec 9, 2009, 4:22 AM

According to preliminary figures released today, new home starts were up in the London area in November.

Total starts increased by 32 per cent due to a 58 per cent increase in single-detached starts comparted to the same month in 2008. According to the Canada Mortgage and Housing Corporation (CMHC), year-to-date starts were still down about 15 per cent.

"For the third consecutive month, single-detached home construction was up from its level a year ago," said David Lan, CMHC's London Market Analyst. "Construction outside of the city appears to be gaining momentum as well."

Across the province, home starts fell slightly last month. An estimated 51,100 residential housing units broke ground in November, down from 55,700 units in October.

ldoto

Dec 10, 2009, 5:25 PM

Toyota Motor Manufacturing Canada Inc. will hire more than 800 workers and add a second shift of production at its plant in Woodstock, providing another shot in the arm for the Ontario economy and another sign that a recovery in the battered auto sector is under way.

The plant will double production of RAV4 crossover utility vehicles to 150,000 a year beginning in March amid a rebound in demand for the vehicles in the U.S. market, which is the destination for about 80 per cent of the factory's output.

The auto maker will announce the plan Thursday, a year and five days after the Woodstock facility officially opened as the North American industry was sliding into the most crippling downturn it has experienced since the Great Depression of the 1930s.

The original plan was to start with two shifts of production when the plant opened, but it began production on just a single shift because of the crisis.

But RAV4 is one of only two vehicles in Toyota's portfolio in the U.S. market that has posted a sales gain this year – up 3 per cent to 132,346 in the first 11 months of the year, compared with 128,225 in the same period last year. November sales rose 35 per cent.

Those numbers compare with an overall Toyota sales slide of 23 per cent in the U.S. market from January to November and an 11 per cent rise in November itself.

It's the second most popular vehicle in the Toyota Canada Inc. lineup and sales in this market rose 24 per cent in the first 11 months and 31 per cent last month. Toyota Canada overall sales slid 13 per cent in the January-November period, but rose 26 per cent last month.

The production boost at Toyota follows a similar announcement by General Motors Co. at its Cami Automotive Inc. plant in Ingersoll, a short ride west along Highway 401 from Woodstock.

GM is increasing output of its Chevrolet Equinox and GMC Terrain crossovers – also because of high demand – and has recalled several hundred workers from layoff in order to get the plant cranking out the vehicles on three shifts a day.

ldoto

Feb 5, 2010, 2:46 PM

Cami Ingersoll Expects to Hire More Workers
They're being run off their feet at Cami.

The Ingersoll automaker will likely have to do more hiring even after they bring back all the workers they've had to LAY OFF in the past year.

The last 128 laid off workers will likely be back by mid-April and then the company is expected to hire another 150 more.

It's all to keep up with demand for the GMC Terrain and Chevy Equinox which have seen HUGE sales numbers in recent months.

The local branch of the CAW Union at the plant isn't sure the new hires will be necessary but chair Mike Van Boekel adds if they do hire more people, the union will lobby for laid-off GM workers in other cities, like Oshawa, to get the jobs.

ldoto

Feb 5, 2010, 2:47 PM

London's Unemployment Rate Drops to 8.7%
London's unemployment rate has dropped for a fourth straight month.

Stats Canada says the city's jobless rate fell to 8.7% in January compared to 8.8% in December. Back in September, London's unemployment rate was at 11.2% -- the highest it had been in 15 years and second only to Windsor for highest unemployment rate in the country.

Several months later, a jobless rate of 8.7% is one of the lowest in Ontario.

Ottawa, Kingston and Thunder Bay are the only major cities in the province with a lower unemployment rate than London in January. Windsor, Sudbury, Toronto, St.Catherines-Niagara, Oshawa, Kitchener and Hamilton all have higher unemployment rates.

London's unemployment rate is also below the provincial average which held steady in January at 9.2%. :cheers:

Across Canada, the January jobless rate dipped one-tenth of a percentage point.

Unemployment last month was down slightly to 8.3% from December's 8.4%

There were 43-thousand new part-time jobs for Canadians, mainly among adult women and young people. It was the first time youth jobs rose since the economic downturn began in late 2008.

ldoto

Feb 5, 2010, 2:52 PM

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."

MolsonExport

Feb 5, 2010, 5:36 PM

Ever so slightly eking out KW:
http://farm3.static.flickr.com/2727/4331931886_ae44742700_o.jpg
Stats Can

I reckon that unofficially, KW has now surpassed London.

ldoto

Feb 9, 2010, 2:48 PM

Board of Control Considers Downtown College Campus Plan

The City is teaming up with Fanshawe College to turn empty and under-used buildings in the downtown core into works of art.

Board of Control will debate the proposed plan tomorrow to convert heritage buildings near the corner of Richmond and Dundas into a new campus for the College's applied and performance arts programs.

The 10 year program would cost $10-million dollars in city subsidies and would be the last major investment aimed at revitalizing the downtown core.

Fanshawe will be announcing details of the plan soon, including how they plan to buy and renovate several 'hertiage type buildings' in the area to create a 'district concept' campus for about a thousand students.

Officials from the College say they have no room to expand at the main campus on Oxford, so they need to look elsewhere.

Their threatre arts program is already downtown but their lease at the CitiPlaza is up in 5 years and they want to expand even more.

For their part, the City hopes to turn the proposed downtown campus into a tourist destination and use the space on nights and weekends for youth-focused arts competitions.

To help pay for renovating the older buildings -- which costs more than building new ones -- City staff could recommend a grant of $100 a square foot, but Fanshawe still needs funding from the Ministry of Colleges and Universities and the Federal government.

This would be City Hall's last in a long list of initiatives centred in the core which started in 1995 and included building the John Labatt Centre.

ldoto

Feb 26, 2010, 2:57 AM

Peter White A defence industry business may soon call London home, but is waiting on word it will land a deal with the Department of National Defence.

The unnamed industry will largely do research and development here, not manufacturing, and will start small with only about 30 workers, sources close to the business said.

"It could be a big deal, but we will not know until they get a contract," an official said.

City officials declined comment on any details of the new business.

"We are working on details of an opportunity and there will be an announcement in the next few weeks," said Peter White, chief executive of the London Economic Development Corp.

"It is advanced manufacturing, it is a new business, it will be good news for London."

The industry may supply General Dynamics Land Systems-Canada, said the official. The armoured vehicle manufacturer on Oxford St. is in the midst of a boom, having landed about $4 billion in new projects.

London West MP Ed Holder was part of two meetings with the business and called it "very good news" for London.

"We have gone through some challenging economic times but there is great emphasis now on advanced manufacturing and we have to make sure London is at the forefront of that," he said.

"What is important is the extent to which Canada as a free trade partner expands its opportunities around the world."

Holder said the new business is the result of an easing of restrictions in the Buy America program that gives products and services made in the United States preferred status when purchased by the U.S. government.

The city badly needs a new business win as four recent economic studies concluded London's economy is underperforming. The city and region lost 8,000 jobs last year, and what jobs were created were largely in part-time, service-oriented work.

The city's gross domestic product, the value of goods made here, is forecast to grow 2.5% this year, lower than the provincial and national average.

As for the General Dynamics deals, they include:

A $2.2-billion deal to supply 724 LAV IIs for the U.S. Army.

A contract to design the Stryker vehicle upgrade valued at $203 million.

A $1-billion deal to upgrade 550 LAV III light-armoured vehicles for the Canadian military through the Department of National Defence.

A $647-million deal with the U.S. army for 352 new Stryker light armoured vehicles.

ldoto

Mar 4, 2010, 5:35 AM

A facility billed as unlike any other on the planet will be built in London if city council agrees to give land to the University of Western Ontario.

"This will be the only facility of its kind in the world," Ted Hewitt, vice-president of research at UWO, said Wednesday.

Hewitt wouldn't disclose specifics about the project that an official last year said would cost $25 million.

But Hewitt didn't need details to get the support of politicians who've already endorsed giving land to UWO and Fanshawe College to lure advanced manufacturing to an industrial park.

The joint venture seems certain to gain approval when city council meets Monday. Politicians unanimously endorsed the concept in November and the board of control gushed over it Wednesday.

"Let's keep it rolling," Deputy Mayor Tom Gosnell said.

The targeted site near Hwy. 401 in southeast London is the last major piece of land at Innovation Park, northwest of Bradley Ave. and Veterans Memorial Parkway. Of 52 hectares there, the city would give 10 to UWO and four to Fanshawe.

The land will enable Western to bring the new facility to London, Hewitt said.

"It's huge," he said.

All details are being withheld to allow those helping fund the project -- presumably senior levels of government -- to announce it in coming weeks.

The federal government releases its budget Thursday and Ontario will do the same at month's end.

The project isn't the only one on the horizon, Hewitt said.

Western is seeking money to lure a German company and the research arm of the German government to build equipment that will make composite parts in a manner so advanced that there's only one similar facility in North America.

Fraunhofer is a German research organization with 59 institutes spread throughout that country, an organization Hewitt describes as "(Canada's) National Research Council on steroids."

Fraunhofer is teaming with German engineering company Dieffenbacher to build a composite press that Hewitt says will make parts out of silica faster and cheaper than all but one facility on the continent.

The German partnership had been looking for a second facility in the United States but now is interested in London, where Western has tapped into one-quarter of the roughly $12 million needed to build the plant.

The building of both facilities would use up four of Western's 10 hectares.

Western also hopes to develop a centre for advanced manufacturing that could be a hub for smaller manufacturers.

In the terms of the proposed deal between city hall and Western and Fanshawe, if either school sells land, the proceeds go to the city; if either fails to significantly develop the land in 10 years, the city can take it back.

The venture is part of a broader strategy to rebuild the local economy battered by last year's global recession. Other aspects include:

Making the airport a gateway for global cargo.

Building a green technology validation centre.

Possibly building an incubator for business pursuing innovative food strategies.

Creating a downtown campus with Fanshawe.

MolsonExport

Mar 4, 2010, 2:25 PM

^sounds like Area 51

ldoto

Mar 5, 2010, 5:31 AM

ECONOMIC ACTIVITY: A study finds the downtown facility has a big impact on the local economy

By NORMAN DE BONO, The London Free Press

The London Convention Centre kicks in nearly $20 million a year to the local economy, drawing visitors and businesses to the city, an economic impact study has found.

Synovate Ltd., an international marketing research firm, studied traffic at the York St. centre from June 2008 to June 2009 and found that, despite an economic downturn, London was an attraction.

"We are thrilled," said Lori Da Silva, general manager of the centre. "We have always wanted to measure the economic impact of the convention centre and what we have been telling the community has been validated by research."

In 2008, the centre generated $19.6 million from 407 events. That dipped to $18 million in 2009, but the forecast for this year is for the figure to climb to $19 million, the study says.

The centre gets $600,000 a year from the city, down from $700,000 in 2006 and more than $1 million when it first opened.

The report marks a decided turnaround for the centre, which opened in 1993 costing taxpayers $40 million - the city and each of the two senior governments paid a third of the cost. At one point, the centre ran a $1.5-million budget deficit.

It posted its first operating surplus in 2008.

"Last year, we had an operating surplus in a soft year and this year we see more meetings coming back," said Da Silva.

Hospitality industry analysts and urban geographers have often claimed spinoff estimates by the sector are exaggerated and that economic benefits are contained largely to a city's core.

But the London study didn't use industry standards, said Coun. Nancy Branscombe, who sits on the centre's board.

Controller Gord Hume, also a board member, validated the findings. "It was built to generate economic activity. That is what it is doing," he said.

Last year the centre's revenues of more than $4 million covered operating costs - it even ran a small surplus of $6,700 - so the city's contribution went to a capital reserve fund which now totals $1.4 million.

"I think it is a good return for the city," Da Silva said of the city investment.

The reserve fund sounds rich, but the cost of renovating and maintaining the centre is high. If the place doesn't look fresh, it'll lose business.

"In this business, people see what they buy. It has to be new," said Da Silva.

Last year the centre's second floor was renovated, shut down for July and August, and this year more renovations worth $844,000 are planned, said Da Silva.

"The biggest chunk of that will be to upgrade our washrooms," she added.

The Synovate study looked at 20 events, did 1,500 surveys and found the average delegate spent $301 a show while an exhibitor spends $2,481 since they have extra costs, including materials and staff to put up for the event.

Of the 2008 spinoff total, $14 million came from out-of-town delegates.

Last year the centre held 24 conventions and conferences, 11 multi-day meetings, 161 single-day meetings and 147 functions, such as weddings and parties.Of all of last year's events, the Daughters of the Nile convention in June was a highlight, drawing 2,000 visitors.

--- --- ---

London Convention Centre

Generates nearly $20 million in economic spinoffs

Breaks even on a $4-million budget.

Gets $600,000 a year from the city.

Has $1.4 million in capital reserve.

ldoto

Mar 18, 2010, 1:03 AM

Money Business Monday

COVER STORY: The Original Cakerie manufactures a host of decadent delights, including premium cakes.

By Hank Daniszewski, The London Free Press

Last Updated: March 15, 2010 7:12am

This new London manufacturing plant is all about cake, cream, strawberries, chocolate and other decadent delights.

Kim Wolf, general manager of the plant, confessed to succumbing to the "Freshman 15," the number of pounds new employees gain after sampling the products.

"I tried to put it under the umbrella of 'quality control,' but really, I just like the products," she said with a laugh.

Landing the $50-million plant in 2008 was a coup for London since the city faced stiff competition from other municipalities across the continent.

The Original Cakerie is a private company founded in Vancouver in 1979. It started as a small industrial bakery, producing high-quality food service desserts for restaurants in Victoria, B.C.

The London plant was its first major expansion outside of the home base and was designed to serve markets in eastern Canada and the United States.

Wolf said The Original Cakerie brand might not be familiar to local consumers, but they have almost certainly tried their products at some time.

The company makes a variety of premium cakes, dessert bars, and brownies that are sold through restaurants and food service suppliers such as Sysco.

It also supplies premium in-house brands for retailers such as M&M Meats and Sobeys in Canada and Kroger in the U.S.

The London plant, a big white building near Hamilton Rd. and Veterans Memorial Parkway, went into production last October.

The plant now has 70 employees and is operating one production line on one shift, but there's plenty of room to add more production lines and shifts in the 125,000 sq. ft. plant.

There is also lots of adjacent land on the site to double the size the plant.

The company's main plant in Delta, B.C., is about the same size as the London plant, but employs about 400.

Wolf said the timing for expansion of production in London will depend on market conditions.

The London plant makes strawberry shortcake, orange cream and lemon cream, black forest cake, chocolate layer cake and tiramisu.

The company is working on sourcing as many ingredients as possible from local suppliers.

Wolf says the production staff, who make about $14 an hour, are engaged in the process and co-operate in meeting production targets that are posted daily.

"We put one or two cakes in the lunchroom every day. We want people to know what they are making and be able to taste it and feel pride," Wolf said.

The workforce is diverse in both age and gender. Some have experience in food processing while others have come in from industries such as the auto sector.

Like most modern food-processing operations, the Cakerie plant is remarkably clean.

It starts at the door when staff members remove their outdoor shoes and replace them with indoor shoes. Those in turn are replaced with production shoes that are automatically scrubbed as workers cross a walkway onto the production floor.

Wolf said the cake-making process at the plant is basically the same as that seen in any kitchen, but on a grander scale.

The spinning mixer that makes the cake batter works much like the one in your kitchen drawer, but it's almost a metre tall.

The batter is poured in precise amounts into single-use baking sheets that are loaded on trays and rolled into walk-in ovens.

The baked cakes are put through a cooling tunnel, then go into a production line.

The plant can turn out about 3,000 to 3,500 "super-size" cakes, each weighing about 5 kg, a day.

The plant uses 100% dairy cream, pure fruit fillings, European chocolate and no preservatives.

Cakes are assembled into layers, if needed, and the whipped cream, fruit puree and other ingredients are added by hand.

As a worker spread the top layer of cream on a shortcake until it was perfectly smooth, Wolf said the handwork makes Original Cakerie look and taste like a premium product.

"This is what really distinguishes us," she said. "The tops are perfect, like ice on a skating pond."

Finished cakes are then sent to a highly-automated freezing system. Racks of cake are initially put into a blast freezer, then moved to tempering chambers where their temperature is gradually raised.

"There are hundreds of photo-eyes in here, keeping track of which rack is where and how long it has been there."

The frozen cakes are inspected boxed, shrink-wrapped and placed into a giant freezer room.

The plant's location next to Veterans Memorial Parkway offers easy access to Hwy. 401 and customers across Eastern Canada and the U.S.

Wolf, a Pennsylvania native who holds a mechanical engineering degree from Pennsylvania State University, previously worked for Eveready Battery and later joined Campbell Soup.

Wolf worked in the soupmaker's Pepperidge Farms division in the U.S., then came to Canada to manage Campbell's plant in Listowel.

She joined The Original Cakerie last year after Campbell closed the Listowel plant in 2008.

Wolf said The Original Cakerie targets a growing number of consumers who have a passion for good food and want to enjoy a premium, restaurant-quality product at home.

"It's a premium product with a value price," she said.

Like many food producers and retailers, Wolf said The Original Cakerie hasn't seen much impact from last year's recession.

"When times are tough, you can find comfort in good food like a great piece of cake."

MolsonExport

Mar 18, 2010, 4:35 PM

well, isn't that just the icing on the cake. I reckon that London wants to have its cake and eat it too.

ldoto

Mar 25, 2010, 1:49 AM

Prime Minister Stephen Harper London has landed a new, Norwegian defence industry.

Prime Minister Stephen Harper will be in London Thursday to announce Kongsberg Defence Systems will open a research and development business here, with some manufacturing, that may employ up to 100 people, said sources close to the news.

"All I can say is this is very positive news for London, it is an exciting announcement," Mayor Ann Marie DeCicco-Best said Wednesday.

It is not known if the industry will build a plant here or lease an existing space, or where it will locate.

"This supports one of the strengths of London, it builds on clusters we have that are important to the future and where the jobs will be," said the mayor.

Kongsberg will supply General Dynamics Land Systems-Canada on Oxford street with weaponry for its armoured vehicle platforms, and contacted the city to locate here as they wanted to to be close to GDLS, said the source.

"Any time we have the Prime Minister involved in participating with us, it is a great opportunity. It provides visibility for the city," said Peter White, chief executive of the London Economic Development Corp.

"It is going to be great news for London, a big win for London."

Kongsberg has been in talks to locate a new business here for several months, but needed to finalize details on a contract with the Department of National Defence in Ottawa, and that is why Harper is making the announcement.

"We do not know the magnitude of this yet but the fact the Prime Minister is here signals it is a significant investment," said Gerry Macartney, chief executive of the London Chamber of Commerce.

"It is a terrific sign."

Harper will be at the Delta Armouries Hotel in the morning, along with Industry Minister Tony Clement, DeCicco-Best and London MP Ed Holder.

The Free Press first reported last month a new defence contractor was considering opening here, but was awaiting word on a new deal with DND before the announcement would be made formal.

Holder was part of two meetings with the business and said last month it is "very good news" for London.

"We have gone through some challenging economic times but there is great emphasis now on advanced manufacturing and we have to make sure London is at the forefront of that," he said at that time.

"What is important is the extent to which Canada as a free trade partner expands its opportunities around the world."

Holder said the new business is the result of an easing of restrictions in the Buy America program that gives products and services made in the United States preferred status when purchased by the U.S. government.

Harper will also attend a business roundtable at the Spencer Leadership Centre Thursday afternoon where the focus will be on business development in the region, said White.

"There will not be a specific focus on London. We are really talking about ideas for the region," he said.

***
The company: Kongsberg Defence Systems is Norway's premier supplier of defence and aerospace-related systems. The portfolio comprises products and systems for command and control, weapons guidance and surveillance, communications solutions and missiles. Kongsberg Defence Systems also makes advanced composites and engineering products for the aircraft and helicopter market.

Web: http://www.kongsberg.com/

Will supply: General Dynamics Land Systems Canada, the world's largest maker of wheeled military vehicles, including the U.S. Army Stryker, in use in Iraq and Afghanistan. In 30 years it has shipped more than 8,600 vehicles around the globe.

MolsonExport

Mar 25, 2010, 1:32 PM

War is often good for the economy. Isn't this nice ;)

ldoto

Mar 27, 2010, 2:14 AM

Will make Equinox, Terrain models

By NORMAN DE BONO, The London Free Press

Last Updated: March 26, 2010 5:29pm

A worker at the plant in 2009 Cami Automotive is poised to hire up to 400 more workers — a record for the Ingersoll manufacturer.:tup: :tup:

GM Canada announced this morning some of the hot selling Equinox and Terrain crossover utility vehicles will be assembled at the GM plant in Oshawa, as demand has the Ingersoll plant running full tilt.

That move will add 70 workers at Cami now, but GM is also speeding up the line— they will start cranking out 1,000 vehicles a day this summer — and that will see more than 300 more joining the ranks of Canadian Auto Workers, said Mike Van Boekel, chairperson of Local 88 at Cami.

"It is great news for GM, and for this community," Van Boekel said this morning. "We are so far behind production now, the vehicles are selling very well."

In fact, this year Cami will make about 250,000 vehicles, a record, he added. In addition, by the time hiring is completed this summer it will employ "well over" 2,500, also a top number for the manufacturer.

"It is huge we could have 400 more people here here this summer," said Van Boekel. "It is fantastic news and it is happening while there is still a recession on."

In Oshawa, about 70,000 Equinox and Terrain vehicles will be assembled annually starting in August, he added.

While Cami workers do not like losing some production to Oshawa, 600 workers will be recalled there to staff a third shift.

"There are mixed feelings here about some production going to Oshawa, but at least it is staying in Canada," said Van Boekel.

GM closed its truck plant in Oshawa last year, cutting more than 2,000 jobs.

Cami has undergone a $100-million expansion of its weld shop and from there it will ship Equinox models to Oshawa for final assembly and paint on its under-utilitzed Impala line, allowing Cami to make more vehicles on its lines in Ingersoll.

In the first two months of this year, sales of the Equinox in the U.S. more than doubled to 18,000 from less than 9,000 the first two months of last year. The Terrain added another 8,100 on top of that, meaning 26,000 Cami made vehicles sold the first two months of this year in the U.S., said Carlos Gomes, automotive analyst with Scotiabank.

In fact, there is only 30 days inventory for Equinox and Terrain vehicles remaining on dealer lots across the U.S. — dealers like to have 60 days of inventory, added Gomes.

"It is positive production is remaining in Canada, historically that has been one of GM's most productive plants across North America," he said of Oshawa.

The resurgence of the Cami-made CUVs is mirrored by a rebound in the vehicle sector generally, with all vehicle sales in the U.S. rising 10 per cent the first two months this year over 2009, to 1.5 million units and the CUV segment lead all sales, up 19 per cent to 354,000 units.

"We are seeing a comeback,we are seeing year-over-yar gains," said Gomes.

The news marks a dramatic turnaround for the plant from a year ago when it had 500 workers laid off and was rotating layoffs for its remaining workers.

"What a difference a year makes," said Paul Holbrough, Mayor of Ingersoll and Warden of Oxford County. "GM invested in that plant, it has good, quality workers and consumers are certainly interested in the product at that plant," said Holbrough.

"This is good news, it is exciting new for Ingersoll."

Cami will also see the last of its laid off workers recalled April 6.

ldoto

Mar 30, 2010, 11:56 PM

One plant closes, another gets busier

By NORMAN DE BONO, The London Free Press

Last Updated: March 30, 2010 10:57am

Labatt Breweries will be making more beer in London, and will shut down its Hamilton plant and ship production here. :cheers: :cheers: :cheers: :cheers: :cheers: :cheers: :cheers: :cheers: :cheers: :cheers: :cheers: :cheers: :cheers: :cheers: :cheers: :cheers: :cheers:

The brewer has "excess capacity" in its London plant since it sold its Labatt USA division, for which the London plant had been brewing beer.

“It is unfortunate that closing the Hamilton brewery is the only rational business decision available to us, however, we have determined that we will do everything we can for the employees," Charlie Angelakos, Labatt’s vice president, corporate affairs, said this morning in a release.

Hamilton is losing 143 workers — 99 hourly, 22 salaried — and another 22 who are now laid off.

The Hamilton brewery is closing April 30,

“This was a difficult decision,” said Angelakos, “but the impact of a number of compelling factors really leaves us no alternative. Canada’s beer market is intensely competitive and we need to continually seek the lowest possible overall, and brewery-specific, production costs.”

The release said London is a "state of the art" facility while Hamilton had a higher production cost, meaning it was cheaper for Labatt to ship production to London, than upgrade Hamilton.

manny_santos

Apr 1, 2010, 6:16 PM

So production of Lakeport is moving from Hamilton to London? That'll be easy - the existing London employees can produce Lakeport in their kidneys while working on production of real beer. Talk about a more efficient use of resources - they won't need separate workers in Hamilton producing Lakeport while the London workers make Blue.

ldoto

Apr 7, 2010, 4:34 AM

Masco Canada Limited to Consolidate Operations at Former Sterling Truck Plant

4/6/2010

The old Sterling truck plant in St. Thomas won't be empty very much longer.

Masco Canada Limited, a subsidiary of Masco Corporation, announced today that it has agreed to purchase the land and buildings at 350 South Edgeware Road.

The company intends to consolidate its current London and St. Thomas operations in the former Sterling plant.

“The decision of Masco Canada Limited to consolidate their manufacturing facilities in St.Thomas speaks to the high quality of our regional labour force, whether it is in machining, advanced manufacturing, tool and die or assembly operations,” said Mayor Cliff Barwick.

The consolidation of the two sites will enable the operations to work more closely together and better utilize resources.

There are 187 employees at the London location and 120 employees at the St. Thomas location. Consolidation will occur during 2010 - 2011.

Masco Corporation is one of the world’s largest manufacturers of brand-name consumer products for the home and family.

ldoto

Apr 7, 2010, 1:36 PM

CENTRALIA -- An area hit by plant shutdowns will soon have 300 people training for new jobs to outfit private jets for the rich and famous.

With the help of a $4.4-million federal loan, Goderich Aircraft Inc. in the Huron Industrial Park is gearing up for an expansion expected to boost employment at the company from 160 now to 450 in the next three years.

The loan was announced Tuesday by Gary Goodyear, the cabinet minister in charge of the Federal Economic Development Agency for Southern Ontario.

The money will be used to build a new hangar, for marketing and equipment.

Goderich Aircraft president Blaine Field said the company is about to open a new, $3-million aviation training centre that will give its new hires the skills they need to refurbish the jets with luxury seating, bedrooms, showers, conference rooms and bars.

The training centre will likely draw local people who've been left jobless by recent plant closings such as at the Volvo road grader plant in Goderich or the Dana auto parts plant in St. Marys, Field said.

"Our strategy is a second career . . . We want to bring them in and take them from zero and train them in our business," he said.

The centre, accredited by London's Fanshawe College, will train about 60 students a year.

Founded in 1993, Goderich Aircraft has found a niche market in customizing private jets for corporate executives, Hollywood stars and senior government officials.

The company is just wrapping up a $17-million project outfitting a Boeing 737 private jet for Royal Airways in Abu Dhabi.

The plane's interior is off-limits to the media, due to confidentially agreements, but Field said the luxuries include gold and nickel plumbing fixtures and a $2.5-million entertainment system.

Goderich Aircraft has just landed a deal to be licensed as a Boeing completion centre. The aircraft giant will supply technical support and specifications to Goderich Aircraft as it customizes new aircraft to become private jets.

Along with the Abu Dhabi jet, Goderich Aircraft is also refitting a McDonnell-Douglas MD-87 -- a 127-seat commercial airliner -- into a 32-seat VIP corporate jet.

The company also has a contract to convert two 70-seat passenger jets into corporate jets.

Goodyear said the Goderich Aircraft loan shows a shift in the government's economic stimulus plan.

"Last year we were looking at getting people to work, period. The economy is picking up, so the pendulum is swinging towards better-quality, longer-term jobs," he said.

The company's expansion is a major boost for Huron Industrial Park and will create a number of spinoffs jobs in the region, said area mayor Ken Oke of South Huron.

ldoto

Apr 9, 2010, 5:00 AM

A lot of little fish can make for a fine meal.

London has landed four small businesses, but they will combine to bring about 100 jobs and $7.5 million in investment to the city.

"It is a very diverse group of companies and they also offer great growth opportunities, they will continue to expand in London and open up markets across Ontario and North America," Peter White, chief executive of the London Economic Development Corp., said Thursday.

Mayor Ann Marie DeCicco-Best also cheered the news, saying the four businesses offer jobs in agri-food, manufacturing and information technology areas.

"What makes this even more impressive are the sectors represented. We believe we have to move forward, post-recession and look at where we have our greatest strengths," she said during a press conference at the London Convention Centre.

"It shows our city there is great confidence here."

The news comes amid mixed economic news for the city. Last month London also landed a new, Norwegian defence manufacturer, Kongsberg, which will create 100 jobs when it begins production next year.

However, this week it was also announced Masco, and its 287 jobs, will leave London for St. Thomas.

The new businesses are:

London Eco-Roof

The business will manufacture metal roofs in London at the end of this month, employing about 15 people in manufacturing and 30 installers to start. The company has had a sales office here for about one year while the product is manufactured in Poland, but this plant will sell the metal roofs in Ontario and the U.S. It will open a 5,500 sq. ft. facility on Neptune Crescent.

"I look out of my window at the homes and see all the shingle roofs, and I think that must stop," said Joe Malec, president.

In Europe, a majority of roofs are metal, as they last the lifetime of the home and do not need to be replaced. Although they cost about 40% more than shingle roofs, they also add to the resale value of a home, he added.

"We are getting a lot of requests, we are seeing the market grow about 3% a year," said Malec.

The roofs are aluminum and steel, galvanized and zinc coated, he added. He will work with local builders, contractors, retailers and homeowners to sell his product, he added.

Studer Holdings

This business will consolidate the holdings it has now in Dorchester, London Quality Dairy, and in Aylmer. Studer Dairy and Wholesale Ltd., is to open an ice manufacturer and sell ice cream products, employing about 25 staff. It will open a 10,000 sq. ft. plant on two acres of land in the Trafalgar Industrial Park.

"London has a good customer base, it is central to our business," said Tony Studer, president, said of why he consolidated here. "We could not expand where we were and we really needed to upgrade our facility."

Studer hopes to double production in the next few years, he added.

Distributel Communications Ltd.

The Toronto-based business is opening a business services office here that will sell services for phone and Internet, adding five jobs now and expanding to about 20 including technical and support staff. It will specialize in offering support to small and medium-sized businesses in Southwestern Ontario.

"We liked London because there was an excellent team available here, there is a lot of talent available," Linda Dawson, director of sales, said of the local skilled workforce.

She also sees London as a regional hub and wants to tap into the business market for computer and phone service, competing with big players such as Rogers and Bell. Now, they have no presence in Southwestern Ontario but are in Ottawa, Montreal, Thunder Bay and Calgary as well as Toronto.

Dawson is now looking for office space in the city.

Innovative Training Solutions

Is opening a digital media centre that will will offer online training about digital media to workers in the information technology and call centre industries, as well as schools. It will locate in downtown office space with about eight workers.

"The centre will provide and develop customized online e-learning solutions to meet the needs of London residents including students from university, college and the more than 20 local vocational schools," White said.

ldoto

May 21, 2010, 1:36 AM

Farhi buys $6 million in London property, including former CIBC building

London developer Shmuel Farhi has gone on a $6 million shopping spree, snapping up property, including more downtown.:banaride:

The recent buys include the former CIBC tower at Dundas and Richmond streets and the old Fatty Patty's restaurant on King Street which has about eight apartment units above it, he said Thursday.

"This building is unique, it is on a main corner and one of the busiest in the city. A company can have it as a signature building, it is close to all amenities," said Farhi of the former bank building.

It has sat vacant for about three years and was initially listed at nearly $2 million. Farhi bought it for $600,000.

He envisions one or two major business clients in the space.

"It's not about what it is today, it is what it will be tomorrow," he said.

He paid $315,000 for the Fatty Patty building at 145 King St., but declined comment on what he paid for other properties, except to say it all totals more than $6 million.

"The bank had it and did nothing with it, we are lucky Shmuel bought it," George Kerhoulas, sales representative with Cushman Wakefield Ltd., commercial realtors, said of the property at Dundas and Wellington.

"It has great potential, an enormous profile. It could be offices or even apartments on the upper level."

The other assets he recently bought are:

— Parking lots at 126 and 132 York St.

— Apartment building at 531 Dufferin Ave.

— Apartments at 105,107 and 109 Grand Ave.

Janette MacDonald, manager of Downtown London, hopes to see more retail space on the main floor of the old bank building, as that is what the core needs, she added.

"It is our most important, busiest corner. We need something there that will keep people coming downtown," she added.

She could also envision residential on the upper floor, as well as office space.

"It has a ton of potential and Shmuel has the means to do it, he is capable of doing this," said MacDonald.

In March Farhi bought Market Tower, the building kitty corner to the former CIBC property, also at Dundas and Richmond.

As for his other buys, Farhi is pleased about the parking lot purchases as he now owns 16 lots in the core, meaning he can offer parking to tenants in his building — critical in leasing, he added.

"I am one of the largest parking operators in the city. For future clients, I have the parking they want," he added.

Farhi now owns a total of 87 downtown sites.

"We believe in this city and its future," he added. "This is about future value. I am a very patient investor. I buy and hold, that is what I have done for 20 years."

Farhi is equally busy out of town, building a federal government building in Cornwall and Sarnia, as well as a major downtown development in Windsor, he added.

CIBC moved in 2007 to a new, $4 million branch office in Citi Plaza, the former Galleria London

ldoto

Jul 2, 2010, 5:32 AM

International composites research centre

The University of Western Ontario has clinched a deal with a German institute that is forecast to put London in the driver’s seat as Southwestern Ontario’s manufacturing capital.

“This is a big winner for London,” said Ted Hewitt, vice-president of research and international relations at Western.

“I see job growth, I see investment.”

UWO and the Fraunhofer Institute of Chemical Technology have signed a deal to create the International Composites Research Centre where automotive, air and space companies can develop new lightweight materials.

Fraunhofer technology is already being adopted by European carmakers, Hewitt said.

North American companies that want to make use of Fraunhofer’s advanced system now have to ship their parts to Europe. The new centre will allow them to do it in London.

“This technology for lightweight composites does not exist here, and every manufacturer in Canada and the U.S. is looking to go there because in Europe they are already halfway down the road.

“You are going to see metal in cars slowly disappearing over the next five to 10 years because you need to meet the emission standards, you need to meet the fuel economy standards. You can’t do that unless you come up with newer lightweight materials that are very strong,” Hewitt said.

Construction of the $15-million centre at the new Advanced Manufacturing Park in London is expected to start this fall.

The park on Bradley Ave. just east of Veterans Memorial Parkway is a joint venture between Western, Fanshawe College and the City of London.

Fraunhofer-Gesellschaft is the largest applied research organization in Europe, where it has more than 80 research units. With an annual research budget of more than $2 billion, the institute also has research centres and offices in the United States, Asia and the Middle East.

The institute in London will be the first for Fraunhofer in Canada, Hewitt said.

MolsonExport

Jul 2, 2010, 1:44 PM

Good, hope that this can attract further investment.

ldoto

Aug 11, 2010, 10:41 PM

Housing sector picks up slowly

Last Updated: August 11, 2010 6:09pm

The London area housing market continued its gradual recovery in July with 188 new home starts, including 148 single-family homes.

The Canada Mortgage and Housing Corporation (CMHC) reports last month’s starts were 44% higher than July 2009 when the market was still mired in the recession.

Single-family homes have led the recovery, up 121% so far this year.

CMHC analyst David Lan said much of the residential activity seems to be clustered around the hospitals.

“Continued employment growth in the health care sector is supporting demand for detached homes close to hospitals in the city,” said Lan.

But Lan said apartment and townhouse starts are lagging this year and are not likely to recover soon with the London rental vacancy rate around 5%.

London’s strength in single-family home starts is bucking the provincial and national trends.

Across Canada the estimated annual rate of housing starts across the country slipped to 1.6% to 189,200 last month.

The CMHC blamed the decline on a drop in urban single starts and a reduction in rural starts.

In Ontario the annualized rate fell for the second consecutive month, to 51,100 house starts, down from a revised 52,500 units in June. Most of the provincial decrease was also blamed on the single detached home sector while multi-family home construction, which includes semi detached, row and apartment dwellings edged up.

For the year, Ontario new home construction in urban areas is running 31% above levels for the same period one year ago.

“A slower pace of economic growth across the province, competing supply pressures from the resale market and a smaller pool of first time buyers suggests construction activity will ease during the second half of 2010,” said Ted Tsiakopoulos, CMHC’s regional economist.

ldoto

Sep 2, 2010, 11:28 PM

London has landed one of two new Porsche dealerships in Canada The German luxury automaker is expanding and chose to locate here, citing the Forest City as a growing market for luxury cars, said Chris Leavens, a partner in the new dealership.

"I think there is a real pent-up demand here for the brand," said Leavens, who will continue to operate Leavens Volkswagen on First St., as well another VW dealership in Orillia. For the new dealership, he is partnering with Chris Pfaff of Pfaff Porsche in Woodbridge.

Porsche's new Panamera sports sedan and Cayenne sport utility vehicle have been selling well in Canada, fuelling the drive for more dealers.

The only other city in Canada to get a new dealership is Saskatoon.

"Porsche opened this up and dealers competed for it. It was a long process and they chose the places they thought were most likely to succeed," said Leavens.

London impressed Porsche with its strength as a luxury vehicle sales market.

Nationally, luxury car sales rose 23% over a 12-month period ending in July. But in London that number nearly tripled to 64%, said Leavens.

"There is a good market here. We are big in business and medicine and at the university," he said. "The car industry is still coming out of the recession and we think next year there will be even more of a recovery. There's even more opportunity here."

Those luxury car sales figures do not surprise Gerry Macartney, general manager of the London Chamber of Commerce. "When I see the number of Mercedes and Lexus vehicles driving around town, it seems like there is a high number. I think the research is accurate.

"When you think we were one of two cities to get one, this is feather in our cap. It is a headline-maker and means we have a certain wage-earner here and I am not surprised by that."

The dealership will open Sept. 7 in the former Cadillac and Hummer dealership at 600 Oxford St. W., but renovations will go on with a grand opening for the spring.

Leavens hopes to position his new dealership to cater to a market from Waterloo to Windsor

MolsonExport

Sep 3, 2010, 1:22 AM

London is certainly a great market for luxury cars. The Upper middle class can have a nice mcmansion for $500K, and still have $ left over for a nice car. compare to the GTA.

ldoto

Sep 11, 2010, 9:56 PM

Murphy Contracting continues work on Innovation Park in London, Ontario

London, Ont.’s Innovation Park is a four-phase, high-end industrial park development plan located on the southeastern side of the city.

Currently under development is the $11-million Phase III, a 50-hectare parcel of land undergoing heavy infrastructure work designed to make the site attractive to new businesses. Civil engineering projects include installation of water and wastewater service, storm management ponds and road construction.

Murphy Contracting Co. Ltd. of London is the project’s general contractor.

“The term, Phase III is a little bit confusing to some people, since it’s actually the final phase of development,” says engineer Robert Sutton, acting manager of industrial land development with the City of London. “When the city developed London’s industrial land development strategy, it assigned phase numbers to the four sections of the development, but as we rolled out it became clear that Phase III was a more expensive prospect, so Phase IV preceded this one when it was completed last year, along with Phase II.”

Funding for the development includes an $11 million contribution from the Ontario government as part the province’s Municipal Infrastructure Investment Initiative and a $400,000 federal investment through Canada’s Economic Action Plan.

The city currently owns the land, but will sell serviced lots to businesses planning to locate in the development. The land is situated near Highway 401 with direct access to the London Airport and is being presented to buyers as a gateway to Toronto and Detroit.

The rolling topography of the site was first graded to allow for the installation of infrastructure, and stormwater retention ponds were built on the site.

“The big component was the massive amount of earthmoving, including the excavation of two bog areas,” says Sutton.

“Currently, we’re installing the sewer and water service, putting in 760 metres of 450-mm watermain and about a kilometre of 300-mm main. The trunk sanitary lines are various sizes, with 775 metres of 200 mm, 550 metres of 375 mm and 210 metres of 450 mm.”

Other phases of the park already have tenants, including a large bakery and a countertop manufacturer. Future tenants include the University of Western Ontario, which plans to build an advanced wind tunnel on the site and Fanshawe College.

“Having enough water and sewer capacity for the site is critical,” says Sutton. “We want to make sure that we can attract any kind of business regardless of their infrastructure needs.”

Sutton says the site is nearing substantial completion for the fall.

“It’s a tremendous amount of work to be completed in one year,” he notes.

ldoto

Sep 11, 2010, 10:19 PM

Kokkei Mizu

Sep 12, 2010, 3:34 AM

^^^

That's fantastic to hear both UWO and Fanshawe have plans to occupy the park! It'll be interesting who else will make London their home!

ldoto

Sep 15, 2010, 1:39 PM

Stephen Harper’s Tories landed in London Tuesday promising to make the city a beachhead to turn around Ontario’s battered economy, pledging $75 million to turn big ideas into big bucks.

With Western’s Robarts Research Institute as a backdrop, Minister of State Gary Goodyear said his government would speed to market the best high-tech tools produced by colleges, universities, business and industry.

“We’re looking for large scale . . . game-changers,” he said.

More big funding announcements will be revealed in coming weeks, he said — sounding like someone acutely aware of the possibility of a federal election.

“Ontario is a have-not province and that’s something the prime minister is concerned about,” Goodyear said.

His announcement left scientists nearly jumping for joy after years of seeing potential breakthroughs gather dust because there wasn’t cash for clinical trials needed to get industry to heavily invest.

“The funding is huge,” said Ting Lee, a scientist at Robarts and the University of Western Ontario.

“This type of program is what we’ve been waiting for so long,” Lee said.

The feds’ economic development agency for Southern Ontario will dole out the money over four years to applicants who bring a partner outside of government to the table. The agency will fund up to 50% of the costs of approved projects.

That’s an area in which Robarts has already been a leader, said Ted Hewitt, UWO’s vice-president in charge of research.

During the last two years, Robarts and London’s Lawson Health Research Institute have spun off business that’s created $85 million in income, the third most in Canada, he said.

“This generous investment will help us to provide industry partners with a competitive advantage, create jobs, improve technologies and help ensure future prosperity,” Hewitt said.

Getting that edge is critical, said Lee, who created software that detects blood flow using CT scans, first as a tool used by doctors to determine when they can use a clot-busting drug on victims of stroke.

Without the software, doctors relied on an accepted practice that ruled out most stroke victims for fear of causing uncontrolled bleeding or making it worse. The drug was only used within three hours of the onset of stroke symptoms.

Lee’s software showed more precisely who was at risk so clot-busters could be given to many more patients, a ten-fold increase, its safe use reducing the risk of death or debilitating brain damage.

It took Lee 10 years to develop the software and another five to persuade a company to back it. He thinks the program announced this week might have shaved three or four years off that wait.

That would not only have improved patients’ outcomes, but saved the economy big bucks as stroke causes injuries that cost the economy $2.7 billion.

Lee still hopes to benefit from the new federal program. He’s already using the imaging software to monitor the effectiveness of new chemotherapy on victims of ovarian cancer and hopes to test its utility on victims of heart attack.

He believes the program will help scientists in Ontario leapfrog their American counterparts whom, until now, we’re better funded.

Kokkei Mizu

Nov 2, 2010, 5:04 AM

The opening of a new locomotive plant in Indiana likely spells the end of London’s locomotive plant — and the roughly 1,000 jobs there — says a national expert in business competition.

But workers at London’s Electro-Motive Diesel on Oxford St. tried to remain positive Monday as talk of the new plant spread through the facility.

“This is very bad news for the London plant. It means the beginning of the end,” said Joseph D’Cruz, professor of strategic management at the University of Toronto’s Rotman School of Management.

Listed in Canada’s Who’s Who as an expert in national competitiveness, D’Cruz said the two plants, owned by the same company, will compete for contracts.

“London is a relatively older plant which is now out of date. It will have to compete with a brand new plant in Indiana.”

For decades, General Motors milked money from the London plant without putting any back into the operations, D’Cruz said.

Though GM sold the plant a few years ago, the damage has been done, he said.

Costs will be lower in Indiana, and governments in the U.S. are committed to keeping jobs within the country’s borders, he added.

Indiana has promised millions of in incentives, D’Cruz said.

Heavy equipment maker Caterpillar Inc., which bought Electro-Motive Diesel in late summer, announced Friday its Progress Rail Services unit will open a railroad locomotive assembly plant in Muncie, Ind. It’s expected to start production by the end of 2011 and employ up to 650 workers by 2012.

Meanwhile, the contract between the union for about 600 London workers and the company expires at the end of 2011.

Workers coming off shift Monday at the Oxford St. plant had mixed feelings about news of the Indiana plant.

“It’s big business and big politics. There is nothing we can do about what happens,” said Ron Wilkie, a 22-year veteran.

His union representatives told him the Indiana plant is being built to help Caterpillar compete with General Electric’s locomotive division, and won’t necessarily cost jobs in London.

But workers were uncertain. “There is a lot of worry about it,” said another worker, who asked not to be named. “We won’t know anything until it happens.”

Calls to Caterpillar officials Monday were not answered.

The union representing London workers, Canadian Auto Workers Local 27, is seeking a meeting with Caterpillar to discuss the Oxford St. plant’s future.

MolsonExport

Nov 2, 2010, 3:36 PM

go_leafs_go02

Nov 2, 2010, 4:45 PM

this would really suck. Good ol' GM. Never invests a nickel, but will take any tax break (take the money and run).

In my native province of Quebec, GM took billions of dollars of tax breaks/incentives/gifts from the Quebec gov't (trying to build an auto industry in the province), over several decades. Of course, they shut the plant after all, even though it was one of the most productive.

This city is turning into Flint.

That's the most retarded statement I've ever seen on here.

Flint is the way it is because of two major reasons - the car industry left, and the white flight that took place due to racial tension.

Can't say London will face "white flight" in the next 20-30+ years. Only not saying forever because you never know...

haljackey

Nov 2, 2010, 8:16 PM

To further this, London has a very diversified economy. Flint is (err was) mostly manufacturing-based.

I am highly doubtful London will become like Flint. If anything we have nowhere to go but up if we get it right.

MolsonExport

Nov 2, 2010, 8:54 PM

Hold the fuggin phone. I am referring to the endless series of manufacturing layoffs and plant closures. Perhaps the Flint comparison was over the top.

haljackey

Nov 2, 2010, 11:24 PM

I am referring to the endless series of manufacturing layoffs and plant closures. Perhaps the Flint comparison was over the top.

That's happening everywhere, and it's nothing new. The manufacturing sector in North America has been in decline since the 1970's. Of course other factors influence this, such as a recession, but that's the general trend.

London's unemployment numbers/bad economy in the press are also heavily exaggerated. They cover London's metro area, which for some reason extends nearly all the way up to Grand Bend (the entire county of Middlesex is included... why???) and includes places like Saint Thomas which are mostly manufacturing based.

If you were to look at just the city of London, you'd notice that the unemployment numbers are much lower and our economy is fairing much better than you think.

Still, it's sad to see that Electro-Motive might be closing down. My uncle used to work there. When times were slumping in 08-09 he was reduced to a 4-day week and was eventually lied off. He worked there during GM Diesel division days so he did get a decent severance but he hasn't found a job since.

Interesting to see how one of GM's former assets is in decline while the other is jumping. General Dynamics can't seem to get those LAVs off the line fast enough!

ericlewis91

Nov 3, 2010, 3:01 PM

according to am980news twitter

a 3rd Angelo's in London has closed; the store on Wonderland south of Sarnia has shut down; Thompson Rd location is the only store left

wonder what was the reasoning...

haljackey

Nov 3, 2010, 4:14 PM

From what I understand they owe a lot of money to their suppliers. Angelo's has not been receiving shipments and is thus losing money from lost sales. Shipments will start again once the suppliers are paid what they're owed and Angelo's doesn't have the money.

There's been very little word to the public about their financial situation but based on a rumor they owe somewhere between $50-500k.

Also as this is the economy thread, its good to see there will not be a strike at UWO. The city would take a huge hit if these students left town until classes resumed.

Snark

Nov 3, 2010, 4:44 PM

Electromotive is not to be euthanised for the sake of an American plant. Life goes on. Pheewww! That was a close one! Almost turned into Flint there before my eyes.

BTW

Unemployment (current):
London = 8.5% (with people re-entering the workforce)
Flint = 13.7% (with no one re-entering the workforce)

Unemployment (modern-era peak):
London = 11.0% (2009)
Flint = 27.3% (2009)

Median Household income:
London: $53,865 (2005)
Flint: $28,015

Negative population growth:
London: N/A
Flint: -44%

haljackey

Nov 3, 2010, 5:05 PM

Snark

Nov 3, 2010, 11:53 PM

...And those stats probably include the infamous London Metropolitan area. Those communities (such as Saint Thomas) really mess up those numbers compared with the city proper.

What year was that negative population growth for? Hopefully that was over some time, Flint losing nearly half it's people in a year is nuts. Perhaps that should be changed to just population growth... London would have a + something and Flint would have -44%.

I just pulled some quick numbers off the innerweb to show what a city in REAL trouble looks like - all the stats are probably metro stats as the Americans do their counting in the same way. Anyway, it doesn't have to be precise to illustrate the point.

The Flint population decline was from the mid-70's high of a whisker under 200,000. At that time, London's population was about 225,000 if I recall correctly - which would produce a growth of about 57% over that same period.

I know that folks bemoan the economic state of Ontario and most of its cities that have been hurt by the downturn in manufacturing - but it's not near a bad as many American cities in similar situations - and in some ways a cautionary tale of how not to operate an economy of municipality. I realize that this is cold comfort to those in Ontario struggling to find work, but the difference between what is going on here and what is happening in other places that are in genuine serious trouble is the difference between a cyclic economic downturn and societal collapse.

Such catastrophic declines also directly affects how these devastated municipalities can not afford to provide basic services. For example:

- Across Lake Erie in Ashtabula County Ohio they're down to one police cruiser for all 1800 sq.km.'s of the county. Asked what the citizens should react to this situation, the sheriff said "buy a gun".

- Hundreds of municipalities everywhere in the U.S. are pulverizing asphalt roads and converting them into gravel roads, because they can't afford to maintain paved roads any more.

- Some cities that can no longer afford to provide basic services to the outer ring of their city are paying residents who live in those areas to move in to the centre of the city (on threat of expropriation) - buying up the abandoned homes, demolishing the entire neighborhood, and returning it to a natural state that no longer has to be serviced.

So, sure, things ain't perfect here and there are problems - but it is far, far from catastrophic. Things need to be kept in proper perspective. For a good perspective go to Google Earth Streetview at coords 42d21m41.46s N , 83d02m16.88s W to see what Detroit looks like 3500 metres from the centre of its downtown.

haljackey

Nov 4, 2010, 12:25 AM

All excellent points Shark.

Just remember that you are dealing with two different countries with two different social and economic policies. American cities/states/whatever can't afford some of these services because no one wants to pay the taxes to support them. I doubt we will ever see a similar situation anywhere in our country.

I think I'll leave it at that. Things are just too different to compare.

GreatTallNorth2

Nov 4, 2010, 2:03 AM

Look what they are talking about just one hour down the 401. K/W has become a much more important region in Ontario than London and is becoming one of Canada's big cities. We have clearly lost the importance we once had as a city to this area.

Region on verge of becoming ‘a really big city’
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Mirko Petricevic/Record staff
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November 02, 2010
BY ROSE SIMONE, RECORD STAFF
KITCHENER — Imagine a dense, large city, cosmopolitan in nature, with lots of people from diverse ethnic backgrounds, plenty of highrise condos and condo townhouses in the core, and streets bustling with traffic.

That describes the cities of Kitchener and Waterloo of the future, says Joe Berridge, a partner at Urban Strategies, a Toronto-based planning and urban design firm.

“You are becoming a really big city, and a whole lot of things come with that,” Berridge said at a Canada Mortgage and Housing Corp. annual housing outlook seminar held Tuesday at the Holiday Inn in Kitchener.

Big city transit options, such as light rail transit, or some type of fast and efficient transit system, will no longer be a choice but a necessity, Berridge added.

“It means that you will have to intensify and turn into a more pedestrian- and transit-based community than you have had in the past. However you figure out how to pay for this, that will have to be in the works,” Berridge said.

He said people will need to see investment in the transit system in the same way they regarded investment in universities. “It is an investment in the next generation,” he said.

Berridge said although this region won’t become a giant like Toronto, it will nevertheless be a large city that is “much more compact and dense in its centre.”

Conference participants were told that in the shorter term, the housing market in Waterloo Region will return to a steadier and more stable period of growth in 2011 compared to the “roller coaster ride” of up and down swings in sales and prices that characterized the market in recent years.

“The wild ride is over,” said Erica McLerie, a senior market analyst with Canada Mortgage and Housing Corp.

But Berridge said over the longer term, this region is growing faster than most other mid-sized cities in Ontario because the post-secondary institutions here have made it the “brain capital of Ontario.”

Waterloo Region has already passed the critical mass of a half-million people and it is expected to grow to more than 700,000 people by 2031. That gives it the second fastest population growth for a mid-sized city in Ontario, right after Barrie, he added.

The region “is assuming, very rapidly, a dominant position in Ontario,” Berridge said.

But it doesn’t have the ability to allow more sprawl on the outskirts, he added.

The Ontario Places to Grow Act is not likely to be changed too much by the present or future provincial government because people living in the smaller villages in the outskirts will also resist the urban sprawl, he added.

“There really isn’t a lot more land coming on in the next 20 years, so that does mean that you are going to be looking more and more at intensification sites and building more in the existing built-up area, reusing buildings for multiple and intense forms of dwellings,” Berridge said.

The region’s three cities will become more like “one big city,” he added.

In the past, this region has been characterized by big single-family detached dwellings, much like other small- and mid-sized cities in Ontario. But that, too, will shift somewhat. There will be growing demand for other housing options such as apartments and condos.

“That is just a fact of life for anybody who lives in a big city,” Berridge said.

Trends in the global economy are going to push up the costs of fuel and will change the way people view housing and transit options, he added. “Congestion is already becoming nightmarish and the cost of gas is going up and that will very slowly start to get reflected in the people’s housing choices.”

In many ways, Waterloo Region is experiencing the issues that come with being a growth success story, Berridge said. The “incredible investment” in higher education “is now being repaid with the incredible retention and attraction of a younger workforce.”

As a result of the investment in higher education, this region is also drawing larger numbers of highly educated immigrants with university degrees. So the very nature of the region is changing fast, Berridge said.

Compared to places in Europe and elsewhere, Ontario has actually done a good job of successfully integrating its immigrants, and “I am convinced that the successful transition into home ownership is one of the crucial parts of making that process of settlement successful,” he added.

Meanwhile, McLerie said that for the coming year, the sales and prices in the Kitchener housing market should be fairly balanced, with growth happening, but at a slower and steadier pace.

She said the housing market has been “very volatile” in recent years, because it experienced a big drop at the end of 2008 with the financial crash, then surged early this year when people were trying to buy ahead of the anticipated higher interest rates and harmonized sales tax, and then dipped again afterwards.

Although the global economy is still shaky, the local housing market is supported by population growth, a gradually improving job market and the expectation that mortgage rates will remain relatively low, she added.

“What we look forward to in 2011 is a period of more stability. After three years of volatility, the markets will return to their longer-term trend,” McLerie said.

rsimone@therecord.com

Simpseatles

Nov 4, 2010, 2:51 AM

:previous: I bet London never saw this coming 30 years ago! It just plain sucks to hear how awesome things are going an hour down the road, and it makes us look like we're stuck in the stone age.

Still, London is way more of a city than the grown together mess that is K-W. We have 1 real downtown with (currently) a better skyline. Not to mention the city's location, and layout makes sense. Right at the forks of a river, smack dab in the middle of Southwestern Ontario, with a traditional grid pattern.

If only we stepped it up a bit. It just grinds my gears how K-W is planning all this great stuff, meanwhile we're still bickering over ever building a ring road, or ever thinking of maybe perhaps wanting to get LRT. They built a much better highway system long ago, and look at them now. Planning LRT also.

I think the real passing of the torch for capitol of SW Ontario will be when they take our 10th place on the top Metro list(without Cambridge I believe). It's getting pretty close now.

I mean no disrespect to K-W, I'm just jealous!:)

haljackey

Nov 4, 2010, 4:21 AM

Huh. I just did a little rant comparing London and K-W...

You can read it here: http://www.skyscrapercity.com/showthread.php?p=66482297#post66482297 (post #1792 if you get lost on that page)

It's a little off topic but what I'm basically saying is how K-W's transportation planning has made Waterloo Region into a powerhouse while London has been left in the dust.

I have to agree that as a city, London is better. As a region however, K-W slaughters London. (For that I'm mostly factoring in downtown London, not the suburbia that surrounds it within the city limits.)

Cambridgite

Nov 4, 2010, 5:35 AM

I think the real passing of the torch for capitol of SW Ontario will be when they take our 10th place on the top Metro list(without Cambridge I believe). It's getting pretty close now.

To be fair, Cambridge is included in the metro area, but Guelph is not. Our CMA is still geographically far smaller than London's, which includes more far-flung communities.

Anyways, don't draw too many conclusions about us getting LRT. There's quite a big political movement here to "derail" the proposal, so to speak. And their side is louder. Instead, we might end up with an almost-as-expensive BRT that will just need to be replaced in 20 years as it reaches capacity, thereby increasing the cost even more over the long run. The electorate here can be just as short-sighted and misinformed as anywhere else.

Of course, I hope that doesn't happen, but the height of a recession that is crippling Ontario wasn't the best time for the provincial government to announce their share of the funding. Really, really bad timing.

manny_santos

Nov 4, 2010, 2:28 PM

Cambridgite

Nov 4, 2010, 4:15 PM

At least you'll probably get some sort of mass transit system. London is banking too much right now on being a city for the retired; in 30-40 years they'll be gone and there will be too few younger people to sustain the population. The exodous of young people from London is just getting bigger and bigger - of the people I knew in high school only a fraction are still in London since finishing university/college; most have moved to other parts of Ontario. Almost everyone else I know who is left plans to leave once they're done school. And those who are coming to London for post-secondary aren't staying. There is going to be a serious labour pool shortage here if something isn't done.

I didn't realize you guys were becoming the next St. Catharines.

I don't get why young people would be so thrilled to live in KW after university, but not London. I mean, at its core, London has much more of a big city feel to it. You have Richmond Row, which is a more dense hub of nightlife than can be found anywhere in Waterloo Region. I'm really surprised young people are fleeing London and more companies aren't setting up shop there. It's a little blue collar (as is basically everywhere in Ontario), but isn't Hamilton, Windsor, or Niagara Region by any means.

haljackey

Nov 4, 2010, 4:55 PM

To be fair, Cambridge is included in the metro area, but Guelph is not. Our CMA is still geographically far smaller than London's, which includes more far-flung communities.

London's metropolitan area is a joke. In my opinion, London is a city that doesn't have a metro at all.

Many think Saint Thomas should be included as it is the closest somewhat sizable community to London. Problem is that to get there you have to travel on rural 2-lane roads with no rail connection, not really a metro "feel", don't you think?

My quote from the link above

Once the hub of Southwestern Ontario, Kitchener-Waterloo has left us in the dust. They built a freeway system while we canceled ours, and now they're getting rapid transit while we don't even have a bus terminal.

Crazy thing is London is still bigger than K-W, even when you factor in the metro area (10th biggest in Canada) but that is going to change soon. My city's edge has been lost on a "do nothing" approach to transportation planning and on a variety of other issues and we're paying the price.

The fact that K-W has an expressway system and "plans" for light rail makes it so much more progressive than London. As stated above, we're losing a lot of young minds and retirement communities are sprouting everywhere in the city.

Simply put, we lack a long term vision. The status-quo seems fine in a city that politicians think should be treated like a village. It's been like that for decades, and is quite sad.

Simpseatles

Nov 4, 2010, 8:20 PM

As a resident of a bedroom community, I'd say the problem with our metro area is that the the city includes vast ammounts of land, all ready to be turned into smart centres and sprawl (at least for now). Once you leave the city limits, it's just 2 lane country roads to small towns with some new subdivisions, but not much industry or commercial development in them, or on the way. It just makes it feel more like your in the middle of nowhere, when places like K-W have wide roads and are more interconnected with transit.

I would much rather have sprawl in a city where there are adequate roads and highways like in KW. They have at least 3 highways or VMP like parkways: King St. Bypass, Conestoga parkway, and even Homer Watson Blvd. What do we have? A 1960's era joke called Highbury road, and VMP, which isn't even a real highway. My point is that these expressways help to support new industry.

I rant, because I really love (maybe loves to strong of a word) this city, and as much as I want to get the hell out of it and go somewhe else eventually(like many my age) it'll always be home to me.:D

BTW,St. Thomas isn't included in our metro? Can someone tell me where the extra 100 000 people or so that make up our CMA live? Is it just all of Middlesex, because that would be a joke.

Cambridgite

Nov 4, 2010, 9:33 PM

Simpseatles

Nov 5, 2010, 12:34 AM

Not sure if it fits exactly, but it looks like London's CMA covers most, if not all of Middlesex county. Looks like it definitely includes St. Thomas.

http://geodepot.statcan.ca/GeoSearch2006/GeoSearch2006.jsp?resolution=H&lang=E&otherLang=F&census=Yes&DisplayData=Yes&NewImage=yes&layer=cmaca&IdentName=London (CMA)&IdentUID=555

I suppose I can see what you're saying about the bedroom communities outside of London not feeling like they're part of metro London. The largest one for the tri-cities (Elmira) only got bus service into Waterloo a year or two ago. New Hamburg and Baden are very close to town, sprawling rapidly, but aren't even considered part of the CMA yet. I did the calculations a couple years ago and they were almost borderline in qualifying for CMA inclusion...but I guess that'll have to wait for at least 2011.

As much as it would probably be worse in a lot of ways for KW to not get the expressway, it has probably hurt us in some ways as well. Along with the historical circumstance of being a collection of smaller towns that merged, the expressway has encouraged the dispersion of not just residents, but jobs as well. It's likely has no small role in why the region is so decentralized and hasn't developed a substantial CBD like London has.

^ Thanks for the link Cambridgite. Our CMA does includes St.Thomas.

So Elmira gets local bus service, eh? It's about the same distance to the edge of the city, and is a simmilar size to my town. It's a sizable community only 10 minutes from the city limits, so that would be sweet if the LTC ever thought of that.

I also agree that I would never want an internal expressway splicing up the Forest City. But I would like to see a continuation of VMP north of the city to meet up with a western expressway from the 402. But that's not a new idea.

Sorry for getting off topic.

manny_santos

Nov 5, 2010, 2:22 AM

I didn't realize you guys were becoming the next St. Catharines.

I don't get why young people would be so thrilled to live in KW after university, but not London. I mean, at its core, London has much more of a big city feel to it. You have Richmond Row, which is a more dense hub of nightlife than can be found anywhere in Waterloo Region. I'm really surprised young people are fleeing London and more companies aren't setting up shop there. It's a little blue collar (as is basically everywhere in Ontario), but isn't Hamilton, Windsor, or Niagara Region by any means.

I have been to Kitchener's downtown and compared with London it is very dull. That said I am not heavily familiar with K-W so I can't comment directly on why young people would prefer it over London. I do have one friend who is strongly considering moving to K-W after he finishes at Western, specifically citing their higher committment to public transit as a major reason.

Personally I don't think I'd choose to live in K-W unless I got a great job opportunity there.

MolsonExport

Nov 5, 2010, 2:12 PM

Half of what is transpiring in KW is the product of circumstances...that is, being within the greater GTA. That aside, the collection of communities making up KWC just seem to have a much bolder vision for the future. London's sleepiness on this front is frustrating to me.

Cambridgite

Nov 5, 2010, 3:39 PM

Half of what is transpiring in KW is the product of circumstances...that is, being within the greater GTA.

The Greater Greater Toronto Area? :haha:

Maybe if we just added one more "greater", London could also be included in the Toronto area.

I can sort of see how being in the GGTA (or the GGH, more properly) attracts more support for visionary proposals to the region from senior levels of government. Not that it's helped other places in the GGTA like Niagara, Brantford, or Peterborough. They are all growing slower than London.

MolsonExport

Nov 5, 2010, 10:16 PM

The Greater Greater Toronto Area? :haha:

Maybe if we just added one more "greater", London could also be included in the Toronto area.

I can sort of see how being in the GGTA (or the GGH, more properly) attracts more support for visionary proposals to the region from senior levels of government. Not that it's helped other places in the GGTA like Niagara, Brantford, or Peterborough. They are all growing slower than London.

Whoops, meant to say greater Greater GREATER Toronto Area.

Then there is the great greater greatest Toronto area, which takes in everything from James Bay to Windsor to Cornwall.

haljackey

Nov 5, 2010, 10:20 PM

To be honest, I'd move out of London if I got the chance. Kitchener-Waterloo would definitely be a favorable choice but I would rather live in a bigger city... maybe somewhere in the GTA. (I'm young like Simpseatles... lived in London all my life and kinda sick of this place.)

I've been to Uptown Waterloo and it's almost like Richmond Row on a smaller scale. The difference between the two is that in London is dull... there's nothing to do so we all get drunk (hense a large bar scene), where in K-W there's more activities.

Location is another reason why K-W is growing at a much faster pace. It's proximity to Toronto and the GTA make it an attractive destination for people what want to be close to the big city but not live there. London's about half-way between Detroit/Windsor (mostly a decaying ghetto) and Toronto (actually somewhat prospering) and people would rather go to the latter.

Kitchener and Waterloo are two separate cities, that's why there's no central core like downtown London. I don't think having a freeway was a main contributor as to why K-W has no central core.

And you can't really argue freeways encourage sprawl. Look at London... we don't have a local freeway and there's low density suburban sprawl everywhere. (In fact I believe we're the largest city in North America that doesn't have some sort of freeway network to serve local traffic.)

Cambridgite

Nov 5, 2010, 11:23 PM

Whoops, meant to say greater Greater GREATER Toronto Area.

Then there is the great greater greatest Toronto area, which takes in everything from James Bay to Windsor to Cornwall.

Ahha! I found some great satellite imagery showing the greater greater greater greatest Toronto area. That beam of light is striking right through the intersection of King and Bay, where the rest of the universe rotates around. :D

http://www.2012shit.com/images/Black_hole.jpg

I've been to Uptown Waterloo and it's almost like Richmond Row on a smaller scale. The difference between the two is that in London is dull... there's nothing to do so we all get drunk (hense a large bar scene), where in K-W there's more activities.

King/Bridgeport (uptown) is the densest concentration of nightlife in the Region, but it's not the only one. There's a whole bunch of suburban megaclubs around the universities, which are a complete shitfest of fun in your late teens/early 20s. Downtown Kitchener also has a fair number of pubs and clubs. It's not as concentrated as the uptown scene, .but it's growing and offers more variety :) . It's just another example of how dispersed everything is in KW compared to London. Lamebridge couldn't run a decent (non life-threatening) bar to save its life :no:. Nearby Guelph also has a very nice downtown and bar scene (not in the CMA, but very accessible for a night out if you have a car).

Location is another reason why K-W is growing at a much faster pace. It's proximity to Toronto and the GTA make it an attractive destination for people what want to be close to the big city but not live there.

It's day-tripping distance. As long as you're not drinking and only going there every now and then, you can arrive home the same night. I suspect you'd get a hotel and stay overnight if you're coming from London.

Kitchener and Waterloo are two separate cities, that's why there's no central core like downtown London. I don't think having a freeway was a main contributor as to why K-W has no central core.

Well no, it's both of those. But most of the office space in KW is in neither downtown core, although that is starting to change. A lot of the office space is in the burbs in the north half of the region. A lot of people who work here are also employed in non-office jobs, such as Toyota or a whole host of distribution centres that are mostly in Cambridge (near the 401, which I guess proves your point about location).

And you can't really argue freeways encourage sprawl. Look at London... we don't have a local freeway and there's low density suburban sprawl everywhere. (In fact I believe we're the largest city in North America that doesn't have some sort of freeway network to serve local traffic.)

That's a good point. London sort of has the worst of both worlds in that sense. Hopefully your planners get it together!