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Economy Thread
Post news related to the London economy in this thread.
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Council must look forward, not back
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. |
That post is more suited for this thread instead.
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London to host 2010 Special Olympics Games
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. |
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Bottom line, if London doesn't want to be left out of the Ontario economy, it needs to uh, get on board (pardon the pun) with high-speed rail. |
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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. |
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Area building hits bottom
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." |
Housing starts up, but mainly due to one project
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%. |
Orchestra London Updates City on Finances
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. |
^nice to see support for arts for which only the rich patronize.
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Figures cause for optimism
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 |
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. |
CMHC Predicts Tough 2009 for London Housing Market
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. |
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Bah, just send it all over to Orchestra London. ;) |
Home builders upbeat on recovery in market
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. |
London schools get cash boost
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. |
St. Thomas needs more schools? I would have thought that people would be streaming out like lemmings.
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London Real Estate Market Shows Signs of Improvement
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: |
London's gain -- 200 jobs
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. |
London beyond the economic crisis
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/_/_/58.../_/26655798001 |
New home sales edge upward from previous month
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. |
Jump in Home Sales Could Spark Economic Turn Around
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". |
Housing Starts In The London Region Tumble
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. |
the economy sucks horseshit here in London.
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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! |
^but we will have that bar patio on Richmond Street as a consolation prize, owned by her worship's lush of a husband.
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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! |
^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). |
Condo Sales Give London-area Home Starts a Boost in August
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. |
Economic Action Plan for London
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 |
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oh, and the proper word is weather. |
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. |
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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. |
commercial real-estate market shows signs of picking up
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. |
I learned an iteresting fact at D.O the other day . OLP is 90% occupied with 40 tenants
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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.
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Some good news!!!!!
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. |
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. |
London Home Starts Higher in November
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. |
Official: Toyota Woodstock to Add 800 More Jobs
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. |
Cami Ingersoll Expects to Hire More Workers
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. |
London's Unemployment Rate Drops to 8.7%
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. |
Highway corridor prime for industry
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." |
Ever so slightly eking out KW:
http://farm3.static.flickr.com/2727/...44742700_o.jpg Stats Can I reckon that unofficially, KW has now surpassed London. |
Board of Control Considers Downtown College Campus Plan
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. |
Business may call London home
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. |
Secret UWO project likely to get city land
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. |
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