Economy Thread

[ldoto]

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]

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]

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.

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]

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]

Good, hope that this can attract further investment.

[ldoto]

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]

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]

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]

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]

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.

[Kokkei Mizu]

^^^

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]

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]

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]

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.

[go_leafs_go02]

Originally Posted by MolsonExport

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]

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]

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]

Originally Posted by MolsonExport

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]

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]

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.