DECEMBER 2012

If there’s a Boom — will we hear it? In early September, the UNBC Community Development Institute (CDI) announced release of a new book: Investing in Place: Economic Renewal in Northern British Columbia co-authored by Greg Halseth, Director of the CDI and Canada Research Chair in Rural & Small Town Studies, Sean Markey, Associate Dean, Faculty of Environment at SFU and Don Manson, Coordinator at the CDI. Halseth has spent the last eighteen years at UNBC exploring the question of investing in place, as opposed to investing in space. He believes the key is to harness the assets of communities and innovation of people to take advantage of a range of global opportunities. In the announcement, Halseth explains “We are on the cusp of transformative economic and community change. The current upswing we are experiencing gives us the opportunity to create a legacy of community, economic, environmental, and cultural benefits that will strengthen our foundation for future growth.” “BC exists in a global economy. Within that economy are a tremendous number of opportunities and markets for a range of products and services. When BC communities and regions identify their strengths and assets and understand how to innovatively rebundle them to meet a global demand they create for themselves a competitive advantage” suggests Halseth. It means, suggests the CDI announcement, staying tuned to what is happening in the global economy and always being prepared for the next opportunity — or one might add, also being prepared for the next challenge.

“In essence, placebased development asks us to consider what development would look like in northern B.C. if we were building communities and regional economies of permanence—and not simply treating the region as a resource frontier.” — Investing in Place: Economic Renewal in Northern British Columbia.

This issue of Signposts explores this opportunity (or is it a challenge?)—the looming Boom potentially heading to northern BC. Three different reports are highlighted:  the Asia Pacific Gateway Skills Table, Gateway Labour Market Indicators (LMI) Project — BC Labour Requirements for the Asia Pacific Gateway 2011-2019;  the Northwest Transmission Line Labour Market Partnerships Project: Labour Market Research Summary; and  The Accelerator Project: A Supply Chain Human Resources Strategy. It finishes with a link back to the new book Investing in Place, which suggests: “In today’s technologically connected world, geographic space (raw distance, even if measured in terms of time or financial transfer costs) is declining in importance. But if capital can locate anywhere, the question becomes why is it that capital locates in the places that it does? The characteristics of places in terms of regulations, connectivity to the world economy, available labour supply, supportive industries and skills, quality-of-life services and amenities, natural environment, safety, political stability and a host of other inputs to the production and decision-making systems mean that differences between places will guide the investment decisions of capital. In other words, as space is becoming less important in the global economy, place is becoming more important.” (p. 13)

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Asia Pacific Gateway The Asia Pacific Gateway is suggested to be: “a worldclass transportation network, consisting of an interconnected corridor and supply chain of airports, seaports, rail and connections – designed to make Canada the most competitive entry point and exit point in North America for Asian, Canadian, and American goods and services.”

By 2020, Asia Pacific container traffic to North America is forecast to expand by 300%, and anticipated trade from Asia could bring in $76 billion for B.C. and $230 billion for Canada, according to the province. Even a 1% increase in container traffic through B.C. ports translates into $250 million per year and 4,000 new jobs for B.C.'s economy. The lower mainland and the Prince Rupert/Kitimat regions are expected to be most directly affected by Gateway infrastructure projects, both in terms of construction and long-term operations.

In January 2012, as part of their Gateway Labour Market Indicators (LMI) Project, the APGST released their summary report: BC Labour Requirements for the Asia Pacific Gateway 2011-2019. The study commenced in 2009 and was conducted in various distinct stages. The authors suggest it is one of the first attempts to provide comprehensive labour market information specifically relevant to the Asia Pacific Gateway. Five key sectors were identified as integral to operation and expansion of the Gateway: air, construction, marine, rail, and trucking.

With the Asia Pacific region leading global long-term growth, Canada is focusing on developing infrastructure to meet the needs of this increasing trade. As a result, the Asia Pacific Gateway Skills Table (APGST) formed. The APGST is a non-profit organization, based in Vancouver, representing a regional partnership between labour, business and education/training institutions and providing a platform for the crosssection of Gateway stakeholders to share ideas, concerns and perspectives. The organization is funded partially through assistance from Human Resources and Skills Development Canada (HRSDC) and Transport Canada. The APGST website states that their mission is “to ensure the Asia Pacific Gateway has enough people with the right skills and training to meet its needs.” The Skills Table is also attempting to ensure that B.C. communities will have the labour resource capacity to continue to maintain, build, expand, and operate the Gateway. This mission arose as a result of various estimates suggesting:

One of the key results for this project—and specifically related to 16/97 Alliance membership and represented communities—is that northern BC, an area the report deems, “The Northern Gateway” (a sensitive term in the north these days), has significantly different labour dynamics as compared to the rest of B.C.

“These differences suggest that for northern B.C.—the Northern Gateway to Asia—there is a looming and crippling shortage in almost all occupations related to the entire Asia Pacific Gateway.” One of the biggest principal factors driving crippling shortages as well as looming and growing gaps in labour—is attrition. The last few years (2011/12) mark the first years that baby boomers are reaching age of retirement at 65. This report suggests that attrition due to retirement and death will account for 85%-90% of labour demand throughout the Asia Pacific Gateway over the next decade.

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The Northern Gateway to Asia (cont.) Continued from previous page... The report also highlights the critical importance of “successful strategic workforce planning, succession planning, and knowledge transfer” to deal with the coming, and in many cases already here—labour gap. Yet, it also points out that this attrition also represents an opportunity for positive and innovative change. The first key suggestion—especially relevant for the north— is training and retraining for northerners and especially for First Nation communities and community members, as many are currently not participating in the workforce. For example, the BC northwest has some of the highest unemployment figures in the Province, particularly in the 15-30 yr old range. In many northern First Nation communities, this demographic is also one of the fastest growing segments of our northern population. The second key suggestion is looking to attract northerners back, who are originally from the area but have migrated out due to lack of work and training – with attraction of long-term and good paying jobs which support the Asia Pacific Gateway, as well as the northern communities in which we all choose to live.

The Northwest Transmission Line Another related study, and referenced in the APGST LMI report is the: Northwest Transmission Line Labour Market Partnerships Project: Labour Market Research Summary. It is accessible through BC Hydro’s website. This report summarizes some of the major projects forecast for northwest and north-central B.C. These include the Northwest Transmission Line (NTL), various power generation projects, mining expansion and development, port and industrial development, and various proposed pipelines. The report suggests:

“Given that the conservative case includes projects that are already committed to and/or have initiated construction, it is no longer a matter of ‘if’ the jobs will come, it is a matter of how many.” Some of the specific projects and estimated values suggested are:

     

Northwest Transmission Line $521 million, Forest Kerr Hydroelectric Project $700 million, Kitsault Mine Project $770 million, Rio Tinto Alcan Modernization $2 billion, Kitimat LNG Terminal $2.9 billion, Kitimat to Summit Lake (KSL) LNG Pipeline $1.1 billion,

 Prince Rupert Port Authority $1.1 billion, As well as many other mining and energy-related projects. These potential projects alone represent over $10 billion of potential construction and investment in northern BC. The labour demands for these are substantial. The APSGT report similarly states:

“By some estimates, nearly $13 billion in additional investment is coming to the Northern Gateway over the next three to five years. Many are natural resource projects, bringing with them as many as 5,000 new jobs.”

To receive a copy of the report contact: Irene Mella, APGST Program Coordinator or 604-684-1471 x.103

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& check out: http://www.hrwire.ca

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The Northern Gateway to Asia & The Northwest Transmission Line

The Accelerator Project: A Supply Chain Human Resources Strategy

(cont.). The NTL report forecasts almost 16,000 job openings in the North Coast/Nechako region between 2009 – 2019. About half of these are expansion jobs and half are replacement due to attrition. Similarly, the APSGT estimates a total of nearly 72,000 job openings throughout the Asia Pacific Gateway for all of B.C.

“For the purposes of the Accelerator Project, the term ‘supply chain’ includes all of the sub-functions, such as logistics, warehousing, distribution and transportation.”

Specific to ‘the Northern Gateway’ alone, the report estimates over 2,000 job openings — which only includes thirty-four specific occupations within the five related industry sectors examined: Air, Construction, Marine, Rail, and Trucking. The APGST report conclusion sums it up well. The first key finding is the issue of attrition in our labour market. The second, specific to the north is, ...that, overall this region’s labour market does not have enough workers to meet the expected demand. As early as 2012, there will be several occupations with substantially fewer workers than jobs. This challenges is compounded by northern resource projects slated to begin hiring, including estimates of nearly $13 billion in additional investments and generating over 5,000 new jobs in the next three to five years.”

The “Accelerator Project: A Call to Action” was funded by the Alberta Government and was led by the Calgary Logistics Council in partnership with the Canadian Supply Chain Sector Council and the Asia Pacific Gateway Skills Table.

“According to the Canadian Supply Chain Sector Council, as of 2009, almost 175,000 people worked in the supply chain in Alberta and B.C.”

The report also suggests that the overall Asia Pacific Gateway can expect to see a tripling of container traffic. This relates to the next summarized report with implications throughout the 16/97 corridor.

The project began in April 2011 and was completed in March 2012 and consisted of: a Roundtable conference, establishment of a Project Advisory Committee, LMI Research and economic forecasting, connection to the Canadian Supply Chain Sector Council HR Study Update, various partner meetings, and the production of the report summarized here.

Northwest Transmission Line Labour Market Partnerships Project report is available at:

From our region, Heather Oland—CEO Initiatives Prince George, Cathe Wishart—VP Community & Student Services, CNC, and Hardy Griesbauer—Manager Applied Research, CNC participated in the project. The project entailed:

< ht t p : / / w w w . b c h y d r o. c o m / e n e r g y _ i n _ b c / projects/ntl.html>

A concerted, focused and well-executed Supply Chain Human Resources Strategy targeted at the Canadian economy, specifically those parts of the economy affected or dependent upon the Asia Pacific Gateway and Corridor, will ensure that Canadian business can seize economic opportunities and leverage current and future infrastructure investments.

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The Accelerator Project (cont..) Continued from previous page... Within the Accelerator Project, ten key occupations anticipated to be critical to the success of the supply chain sector of the Asia Pacific Gateway and Corridor were identified: (1) senior managers—goods production, transportation and construction;

utilities

(2) purchasing, managers; (4) transportation managers; (5) facility operation and maintenance managers; (6) supervisors, recording, distributing and scheduling occupations; (7) purchasing agents and officers; (8) customs, ship and other brokers; (9) information systems analysts and consultants; and (10) truck drivers. In B.C., the Accelerator Project estimates over 46,000 job openings between 2011-2020 in these ten key supply chain occupations. Attrition accounts for nearly 34,000 of those job openings, with an average age of 44 for workers in the ten key occupations. The other approximately 12,000 new jobs will be created as a result of economic growth. The three occupations with the most expected job openings from attrition are senior managers – goods production, utilities transportation and construction (49% of initial demand); transportation managers (42% of initial demand); and facility operation and maintenance managers (42% of initial demand lost to attrition). Through in-depth interviews and consultation, the Accelerator Project identified eleven key labour themes: 1. There is a critical role for practical learning and work experience (apprenticeships, co-ops and internships). 2. Employers choose formal education or in-house training. 3. There is stiff competition from other sectors of high pay/high growth (energy, natural resources and ship building sectors). Labour shortages innovation.

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drive

automation

6. There is a critical need for employees who have soft skills (collaboration, creativity and problem solving). 7. There is a shortage of long-haul drivers and some inefficiency in empty backhauling. 8. The public sector is at a disadvantage when competing for labour.

(3) computers and information systems managers;

4.

5. Supply Chain Management is emerging as a key corporate business strategy.

and

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9. Business issues include environmental impact, cost containment and sustainability. 10. Communities seek ways to meet regional needs with a locally developed workforce. 11. Short-term and long-term labour requirements must include immigration. In addition to these themes which provide a range of opportunities and challenges, are five related key findings from the report: Shortages of skilled supply chain employees exist now and are growing in impact; Shortages are found in every supply chain employment category and every sub-function; In a competitive labour market, those who can attract youth early and effectively will be the winners; Employers will need to create strategic workforce plans which deal with succession planning and knowledge transfer; and There are critical business advantages to the integration of supply chain management functions into corporate business strategies. Access the report and information about the Calgary Logistics Council at: http://www.calgarylogisticscouncil.org/ accelerator-project

Regional Initiatives & Submissions The Digital Technology Adoption Pilot Program (DTAPP) in Northern BC

What is the Digital Economy?

The Applied Research and Innovation Department at the College of New Caledonia recently hired Zelda Craig as the College-Industry Liaison Officer. Zelda’s position is supporting implementation of the federal government’s Digital Technology Adoption Pilot Program (DTAPP), which provides support to small and medium sized companies who would like to implement new technology to improve their businesses.

Digital economy is the term used to describe the network of suppliers and users of digital technologies that enable everyday life. Digital technologies are ubiquitous and critical to almost every activity in our economy and society — common examples include e–commerce, social media, wireless data networks, as well as many others. These technologies enable businesses to be innovative and productive; help governments to provide services; and allow citizens to interact and to transmit and share information and knowledge.

“Support” includes an process evaluation to determine potential need for a technological solution, coordinating learning opportunities, and increasing awareness of solutions available. While Zelda’s position is based in Prince George, she will be working with communities across northern BC. The DTAPP program is part of the National Research Council of Canada’s (NRC) Industrial Research Assistance Program (IRAP)— which is part of the Government of Canada’s greater “Digital Economy Strategy”. The DTAPP program “represents a significant investment into the Canadian economy in an effort to increase the productivity growth of small- and mediumsized enterprises (SMEs) in Canada across all sectors through the adoption of digital technologies.” If you are part of a small or medium sized company in northern BC and have potentially awkward or cumbersome business processes, and you want assistance with an examination of your processes and explore opportunities for improvements, contact Zelda at (250) 562-2131 (ext. 5586).

Digital technologies are critical to almost every business and social activity. A strong digital economy will be the backbone of Canada's future prosperity and success. Consequently, we all have a role to play in shaping the future of this key part of our economy and our lives.

From: “The Digital Economy in Canada” webpage http://digitaleconomy.gc.ca And: “Consultation Paper on a Digital Economy Strategy for Canada”

For more information on DTAPP: http://www.nrc-cnrc.gc.ca/eng/ibp/irap/digitaltechnology-adoption/dtapp-index.html For more information on Applied Research at CNC: http://www.cnc.bc.ca/Research.htm

Available at: http://www.de-en.gc.ca/eic/site/028.nsf/ eng/h_00025.html

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Regional Initiatives

(cont.)

Innovation Central Society

Innovation Central Society

— submitted by Ernest Daddey, Executive Director, ICS

Innovation: Why is it so necessary? We are experiencing significant fast-changing environments: globalization, digital enterprises, technological convergence and fierce competition!

“The ability to continuously innovate is the ultimate source of a firms competitive advantage.” -Ikujiro Nonaka

Yes, innovation is important, but what are one’s options? Being an innovation leader has its pro & cons. There are different types of innovation that focus on Process, Product, and Service. Leadership and innovation are intertwined since innovation tends to break the status quo and bring change, which is similar to the traits of leadership. Some of the unique attributes are that an innovation leader has a well defined technology road map that helps a team deliver multiplicity of technology products and services, which in most cases leads to the development of intellectual property.

Mission: To identify, enable and promote high-growth, high-impact companies while accelerating the entrepreneurial culture of the region. ICS is a non-profit society committed to creating an environment, which promotes and supports innovation entrepreneurship, research and the commercialization of science and technology for the economic benefit of the region We are a community of people inspired by entrepreneurship and include a wide range of members including startup companies, more mature growth-stage firms, investors, service partners, academics and professionals. All who wish to be a part of this dynamic enterprise are invited to participate ICS connects new and high-growth entrepreneurs to resources including education, mentoring, grants and funding opportunities through conferences, forums, workshops and programs. Our Partners: Prince George Chamber of Commerce College of New Caledonia

There are also early-followers, late-followers or resistance to change or adaptation. These are entities that look to balance both technology and commercialization risk. These groups tend to look early to mitigate significant risk before they start to check the temperature and see where the wind blows.

University of Northern British Columbia

How to make the right choice?

National Research Council

Some of the steps that need consideration include the following: corporate strategy, corporate culture, resources, and alliances.

The British Columbia Regional Science & Technology Network

Why should innovation?

Visit our website:

everybody

be

thinking

about

Northern Development Initiative Trust Initiatives Prince George Community Futures Aboriginal Business Development Corporation British Columbia Innovation Council

Many schools of thoughts come into play. In the commercialization segment it is necessary to develop strategy partners as part of market validation access and sales channels for product and services. Strategic partners have built significant credibility with their client base that allows and facilitates speed to market. The identification of the pain and solution scenarios must be closely matched with the solution's value proposition and, benefits and features of the offering.

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Space-based to place-based economies? — Review by David Loewen In their book, Investing in Place: Economic Renewal in British Columbia, Markey, Halseth, and Manson suggest that their book is about creating foundations for renewing northern BC’s rural and small-town economies. Those foundations are built upon the importance of place, as opposed to space. They suggest that in an ever-increasingly technologically connected and globalized world, “space is becoming less important in the global economy and place is becoming more important.” The potential for a coming boom—as represented by further development of the Asia Pacific Gateway, and specifically the Northern Gateway portions, renewed interest and investment in major resource projects, potential for a recovering lumber market, potential pipeline development, northern port expansions, etc.— represents a range of opportunities and challenges for northern BC.

“The complexity of the global economy requires that we adopt a broad approach to equipping our rural and small-town places and economies so that they can respond with flexibility to both challenges and opportunities” Markey, Halseth and Manson write about a “Whole Community Approach” to economic and community renewal in northern BC. Within ever increasing complexities of global economies, the key they believe is creating solid foundations of community development; four specifically: physical, human, economic, and community (as portrayed in the diagram opposite, adapted from their book). The authors point out that “community development is most often identified with increasing the skills, knowledge, and abilities of residents to access information and resources and to then use these as tools to create strategies and partnerships that can capitalize on changing circumstances” (p. 52). The 16/97 Alliance is one of the organizations profiled in the book as a successful partnership and collaboration. As they point out, the variety of social, political, and economic restructuring over the last while, also presents some challenges to the current community development foundations. “As we encounter new development opportunities, we find that we have removed or weakened the very supports that would

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give us the flexibility and resources to adapt and act.” (p. 53). As an example of this, they point to the various skills gaps we currently face—as highlighted in the three reports profiled in this issue — and how those shortages limit our current adaptability and resilience in the north as we face an imminent boom. The authors insist “we need a new commitment to enhancing the community development infrastructure for northern BC.” Throughout the book are comparisons between spacebased and place-based economies. The recent history of BC presents a classic space-based economy — raw materials and staples are extracted from an area with distance to production facilities and markets representing the key ‘space’ aspect of the economy. “The simplicity of constructing a space-based staples economy is that it has narrow economic focus on exploiting raw resources and facilitating extraction and commodity export” (p. 59). The result is a geography of communities, infrastructure, and policies that support various disjointed communities that were largely established to maximize overcoming ‘space’ between remote resources, centralized production facilities and various markets. As the authors suggest, place-based economies are a bit more complex, but, not difficult to understand. The focus is on different economic and intrinsic values of places. “Places can be valued in many ways, and those alternative valuations can become community and economic opportunities.” (p. 60). Continued next page...

Space-based to place-based? (cont.) Continued from previous page...

1.education & training 2. community capacity building

“The appeal of rural and small-town places must now emphasize access to recreation, culture, amenities, affordable retirement living, a sense of community, and lower land costs that will make these communities attractive to private individuals, business and industry. The ascendancy of place brings a greater diversity of values (and understandings of value) to economic development” (p. 65)

3. youth opportunities 4. economic strength and diversification 5. financing, investment, and funding 6. infrastructure 7. marketing and branding 8. a collective voice 9. partnership in decision making 10. a framework 11. a northern context 12. support mechanisms

In the chapter on “The Whole Community Approach” the authors highlight a northern economic vision that has come forth through their endless community-based research.

Lastly, as part of their “Whole Community Approach” the authors front the following five core recommendations for community renewal in the north:

“People spoke passionately to us about how northern economic vision is clearly rooted in the interactions between people, the environment, and a high quality of life” (p. 73). From this evolved the authors northern vision based on eleven core areas of interest that frame an approach to economic development in the north:

2. Complete the electrical power grid across the region to facilitate new economic development opportunities in northern BC.

1.diversity

1. Settle treaties in a fair and timely manner.

3. Move forward with the next steps in discussions about creating some form of a robust and inclusive northern BC regional development council. 4. Move on various suggestions for a resourcerevenue sharing arrangements with the region’s Aboriginal and non-Aboriginal communities.

2. inclusivity 3. cooperation 4. lifestyle 5. sustainability

5. Develop greater cooperative and coordinated policy within and between all levels of Aboriginal and non-Aboriginal government to support e c onomic and c om m uni ty development in the region.

6. northern perspectives 7. connections 8. human resources 9. foundation for community development 10. attitudes 11. regulatory framework Parallel with their eleven core areas, which are clearly explained in the book, are twelve suggested strategic directions. These directions also link with many of the key highlights from the three reports summarized here. These twelve strategic directions are related to areas of organization, capacity building, and investment:

These core areas, directions and recommendations come grounded from years of community-based research in northern BC. However, the authors do point out, that they have received both criticism and support for these recommendations. Yet, they suggest that these form those foundations for a critical transition that is required to move from a historically space-based economy in northern B.C. — to a place-based economic renewal.

Writer: David Loewen, Planner—College Initiatives, College of New Caledonia Thoughts on the value of these articles ? Or, topics you would like to see covered. Email us at::

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Alliance Updates

16/97 Economic Alliance Contact Information Business:

Susan Stearns, Chair

Alliance Executive

c/o Community Futures Fraser Fort George Attn: Susan Stearns, Chair 1566 Seventh Avenue Prince George, BC V2L 3P4

Tara Bogh, Vice Chair Catherine Wishart, Secretary/ Treasurer Emily Colombo, Director at Large Ron Winser, Director at Large

Communications: c/o College of New Caledonia 3330-22nd Avenue Prince George, BC V2N 1P8 Email:

We strongly encourage new engagement—if you want to be part of our monthly meetings which always include a networking and information sharing opportunity, let us know and we can add you to our member list. We have teleconference access! Become a Member of the 16/97 Economic Alliance. We are:  An active table of engagement for regional economic development practitioners  An effective venue for “intelligence sharing”  A venue for project development discussions and a catalyst for regional partnerships  An active community of practice/ opportunity for professional development for regional economic development practitioners Join today! We are stronger working together http://www.1697alliance.com

Alliance Member Organizations Include: Aboriginal Business Development Centre Bulkley Nechako Regional District Carrier Sekani Tribal Council College of New Caledonia Community Futures Fraser Fort George Community Futures North Cariboo Community Futures Nadina District of Fort St James District of Mackenzie District of Vanderhoof Fraser Fort George Regional District Houston Chamber of Commerce Initiatives Prince George Prince George Chamber of Commerce Prince George Nechako Aboriginal Employment & Training Association Tl’azt’en Nation University of Northern BC Village of Fraser Lake Village of McBride

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