Here's some more good news for the city!:banana:
Two plants, 600 jobs
Thu, March 1, 2007
Two auto parts suppliers are to announce their plans for London within four months.
By NORMAN DE BONO, SUN MEDIA
KITCHENER -- London is poised to land two new auto parts plants, creating up to 600 jobs, sources say.
A Southwestern Ontario commercial real estate conference, held by CB Richard Ellis, heard yesterday that major industrial projects are on the horizon for London as the manufacturing sector booms.
"We will see some additional plants coming to London soon," said Peter Whatmore, senior vice- president in London of CB Richard Ellis Ltd.
Whatmore declined comment on details of the development. But sources in the manufacturing sector confirmed two parts suppliers, more than 100,000 square feet each, will be announced for the privately-owned Gateway Industrial Park within four months.
The new investments would supply parts to other plants that make components for auto assembly plants.
"There have been layoffs and closings in manufacturing, but there have also been new contracts, new players and overall there is a balance," Whatmore said.
"London is steady as she goes."
John Kime, president and chief executive of the London Economic Development Corp., declined comment on reports of the new industries.
Still, he agreed London's industrial land remains in demand as the city's manufacturing sector continues to defy a national downward trend.
"It has been surprisingly resilient despite everything that is going on," said Kime.
The land availability rate in London's industrial sector is stable at 6.3 per cent.
Statistics Canada reported London gained 3,500 manufacturing jobs during the quarter that ended in January, while Ontario lost 54,500 manufacturing jobs over the same period and the rest of Canada 42,000.
London's new automotive parts assembly plants will join a 520,000-square-foot project by O.R.E. Development Corp. at Highway 401 and Highbury Avenue, a centre for trucking and shipping, said Whatmore.
"There has been a softening of the economy overall, but the industrial sector remains strong here and we think it will for the next few years," said Whatmore.
Don Drummond, chief economist with TD Financial Group, wasn't surprised by news of industrial growth in London and area.
The city is enjoying a boost from Woodstock's new Toyota assembly plant, he said, and has a diversified economy with manufacturing, financial services, health care, education and services, including technology businesses, rounding out the employment scene.
Still, he cautioned London remains challenged by a cooling U.S. economy and competition from emerging markets in Asia in all sectors -- manufacturing, technology and even life sciences.
"London will get a pickup in manufacturing, but their woes are not behind them," he warned. "The emerging economies are penetrating virtually every sector right now."
The Kitchener conference heard industrial land values in London and Woodstock are held "artificially low" because the cities are the developers.
London posted the cheapest industrial land in Southwestern Ontario, lower than Woodstock and Windsor, at less than $100,000 an acre, compared to nearly $300,000 in Waterloo.
London is also the cheapest place to build, with land and construction costs totalling less than $5 a square foot, compared to more than $10 in Waterloo.
The conference also heard of commercial and industrial land parcels attracting more than 10 purchase bids and vacant land hard to come by throughout Southwestern Ontario.
From Windsor to Waterloo investment in industrial land grew by 14.7 per cent from 2005 to 2006, from $150 million to $176 million, CB Richard Ellis reported.