Value-added Food • Information and Communications Technology • Biosciences • Aerospace and• Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Value-addIndustrial Fabrication • Value-added Wood • Value-added Food • Information and CommunicatioValue-added Food • Information and Communications Technology • Biosciences • Aerospace and• Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Value-addIndustrial Fabrication • Value-added Wood • Value-added Food • Information and CommunicatioValue-added Food • Information and Communications Technology • Biosciences • Aerospace and• Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Value-addIndustrial Fabrication • Value-added Wood • Value-added Food • Information and CommunicatioValue-added Food • Information and Communications Technology • Biosciences • Aerospace and• Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Value-addIndustrial Fabrication • Value-added Wood • Value-added Food • Information and CommunicatioValue-added Food • Information and Communications Technology • Biosciences • Aerospace and• Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Value-addIndustrial Fabrication • Value-added Wood • Value-added Food • Information and CommunicatioValue-added Food • Information and Communications Technology • Biosciences • Aerospace and• Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Value-addIndustrial Fabrication • Value-added Wood • Value-added Food • Information and CommunicatioValue-added Food • Information and Communications Technology • Biosciences • Aerospace and• Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Value-addIndustrial Fabrication • Value-added Wood • Value-added Food • Information and CommunicatioValue-added Food • Information and Communications Technology • Biosciences • Aerospace and• Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Value-addIndustrial Fabrication • Value-added Wood • Value-added Food • Information and CommunicatioValue-added Food • Information and Communications Technology • Biosciences • Aerospace and• Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Value-addIndustrial Fabrication • Value-added Wood • Value-added Food • Information and CommunicatioValue-added Food • Information and Communications Technology • Biosciences • Aerospace and• Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Value-addIndustrial Fabrication • Value-added Wood • Value-added Food • Information and Communicatio

Economic Development Action Plan2012-2016

growing together

N E W B R U N S W I C K

Growing Together Economic Development Action Plan 2012-2016

Province of New Brunswick PO 6000, Fredericton NB E3B 5H1

WWW.GNB.CA

2012.05

ISBN 978-1-55471-990-7 8735

i

Table of Contents

Message from the Premier. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1. Growing Together . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2. Growing a Competitive Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.1  Our Priceless Human Resource . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.2  Our Competitive Business Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2.3  Attracting Investment Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

2.4  Improving Market Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

3. Growing Strategic Industries inside a Strong, Diversified Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

3.1  A Focus for the Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

3.2  Our Priority Growth Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

3.3  Our Traditional Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

4. Measuring and Collaborating on Economic Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

4.1  A New Department of Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

4.2  Measuring Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

5. Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

growing together

3

Message from the Premier

Early this year, I told the Economic Club of Canada a re-energized economy would be the cornerstone of our government’s plan to rebuild New Brunswick.

This plan, Growing Together, takes that commitment a step forward.

It lays down a foundation for lasting economic growth in New Brunswick. It identifies the role that government can play to help support and stimulate a prosperous economy.

Equally important, it embraces the leadership role required by the private sector and all New Brunswickers. Only through shared responsibility will New Brunswick realize its full potential.

It charts a blueprint for creating new jobs, and providing new opportunities for workers and their families.

We know this is no easy task.

It starts with our most priceless resource, our people.

New Brunswickers must be ready and able to fill the new jobs that our economy will create.

Growing Together outlines a plan to attract, retain, train and educate employees.

It recognizes that we have some key strategic growth sectors as well as important core economic sectors.

Acting together on this plan, we will strengthen our traditional sectors and tap the immense potential of emerging industries like aerospace and defence and information and communications technology (ICT).

We will face our problems squarely to meet the potential of our future.

We will rebuild New Brunswick as a prosperous province.

And we will preserve and enhance the quality of life which makes our people and our families proud to call New Brunswick ‘home’.

David Alward Premier of New Brunswick

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1. Growing Together

This economic growth strategy, Growing Together, charts our way forward to economic progress.

This is a blueprint for building on our successes; turning challenges into opportunities for growth; increasing our exports; targeting the promising sectors that will lead our economy; and tapping into the immense human potential of New Brunswickers.

We know we live in a changing and challenging era of national revitalization, shifting global markets and intensifying international competition. The pace of change has been phenomenal over the past decade, both inside Canada and abroad.

Brazil has emerged as a low-wage economy that can compete with China. India has experienced phenomenal growth based on its capacity to compete as both a low-wage economy and a high-tech powerhouse.

Inside Canada, Ontario can still lay claim to being the nation’s economic engine, but resource-rich Alberta has grown more prosperous, even as it has become more influential on the national stage.

In our own region of Atlantic Canada, the economy of Newfoundland and Labrador has been dramatically transformed by offshore oil and gas revenues.

New Brunswickers are well-aware of these changes. Indeed, our industries and our people are already adapting to meet the challenges of the emerging economy of a new millennium.

In our information and communications technology sector, for instance, small firms have grown big and gone global on the basis of home-grown talent, innovative capacity and old-fashioned business smarts.

New Brunswick firms have also adapted by taking the lead in huge projects in neighbouring provinces, and grabbing a piece of the action in projects as close to home as next door and as far away as Europe and Asia.

Our companies are also well positioned to improve on New Brunswick’s already impressive export performance.

This document charts a path to continuing success. It invites us to work together in order to grow together.

It is informed by the belief that all segments of our society – businesses and industries, workers, educators, and governments – have a leadership role to play in building a strong, prosperous New Brunswick.

Corporate Vision 2015: “A stronger economy and enhanced quality of life while living within our means.”

For government, fostering growth means taking a leadership role as well as a partnership role in developing our economy so that New Brunswickers can prosper.

To that end, this report outlines the major challenges our economy faces – in fields as diverse as human resources, innovation and export performance – and prescribes courses of action to move this great province forward.

We have also taken steps to put our own house in order.

We have undertaken a major renewal initiative to ensure that we are able to provide appropriate and affordable services to the people of New Brunswick on a sustainable basis.

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We are working diligently to align the way government is structured, to make it more efficient in delivering services and responding to your needs.

Living within our means is important. For far too long, governments have developed their current economies on the backs of future generations. This is not sustainable and it cannot continue.

There are no silver bullets here, this is about having a plan based in reality and being committed to doing the hard work it takes to execute that plan.

New Brunswick is facing severe economic challenges including weak economic projections, an aging population, slow population growth, a relatively weak labour market and limited trade initiatives.

However, we have weathered the latest recession better than most and have rebounded with steady growth.

New Brunswick has many strengths which need to be exploited to the fullest including a well-diversified economy, healthy growth in urban areas of the province and several key long-term opportunities in resource and mineral development.

Efforts and initiatives employed to advance our economic plan to rebuild New Brunswick will be measured and reported, charting our progress as we move forward.

And why is this so important for our province? Because it will help us create…

A New Brunswick where there are good paying, steady jobs for our people.

A New Brunswick where people don’t have to leave to find work and raise their families.

A New Brunswick where companies can compete and win on a global scale.

A New Brunswick filled with prosperity and hope for the future.

It’s a vision that we all have to work together to achieve. The key to achieving this vision for New Brunswick is in our willingness and ability to mobilize for and adjust to change.

As individuals, and collectively as a province, we need to be innovative and adaptable to take advantage of potential opportunities that are inevitable with changing economic realities.

We have risen to the challenges of change in the past and grown stronger -- we can do it again.

To do this, it is critically important that we align our resources and work smarter, together.

In simple terms, we need to focus. Focus on Growing Together.

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2. Growing a Competitive Economy

New Brunswickers know their province has great economic strengths:

• A strong workforce that is educated and able.

• An innovative private sector which competes successfully around the world.

• A solid resource base in forestry and mining, and potential in the oil and gas sector.

• A can-do attitude when it comes to recognizing and seizing economic opportunities.

To take advantage of our assets, we have to assess the challenges the province faces inside a competitive national and global economy. We have to know where we stand, and how we stack up against our major competitors.

In this chapter, we take a look at some of those challenges and chart a path to progress in four areas:

• Our Priceless Human Resource.

• Our Competitive Business Environment.

• Attracting Investment.

• Market Access.

2.1  Our Priceless Human Resource

New Brunswickers are savvy and talented people who want to be prosperous and are willing to work hard to improve their standard of living. New Brunswick’s citizens are also deeply attached to their families, their communities and their province.

It is government’s job to tap that sense of commitment by working with partners to set the stage for new jobs and economic opportunity. Business, labour and government and workers must work together to identify skills shortages so that we can prepare adequately for future economic development.

Change in New Brunswick Labour Force by Age – Working Age and Senior

Age Group 2011 2020 Difference

15 to 64 326,043 306,666 -19,377

65 and over 78,657 109,134 +30,477

Ratio 4.2 to 1 2.8 to 1

Source: 2005-2011 - Statistics Canada: 2012-2020 - Department of Finance and Department of Post-Secondary Education, Training and Labour

To make progress, New Brunswick has to attract more people and it needs to attract the right people with the right skills to help us grow and develop our economy. Our population is growing, but at a slower rate than the national average. In 2011, there were approximately 755,500 people who called the province home. About half are over 43 years of age.

New Brunswick has also experienced uneven labour force and employment growth. As is the case across Canada, employment gains have been largely concentrated in urban areas. New Brunswick’s strong bilingual work force remains a key advantage.

8

Defining our GoalsNew Brunswick can grow its economy by attracting additional qualified people to the labour force and by boosting productivity. New Brunswickers are innovative and dedicated workers, this is evident by recent gains in productivity that must be strengthened and accelerated.

Productivity is about working smarter and embracing innovative practices. It is about generating more economic activity per hour of work, by investing in efficiency, equipment, research, and training.

The Province is committed to assisting businesses in achieving their maximum potential by helping them to improve their productivity and competitiveness through labour force and skills development.

To achieve this, we are focusing our efforts on three goals:

1. Enabling our Existing Labour Force to Become the Best It Can Be.

2. Having more People Working at the Right Jobs.

3. Matching People, Education and Training with Employment Opportunities.

Achieving our Goals1. Enabling our Existing Labour Force to Become the Best It Can Be

Education and training provide the foundation required for achieving individual prosperity. Employment and income levels are highest for those with post-secondary education.

An educated, well trained, innovative labour force is also critical to improving the competitiveness of New Brunswick companies.

New Brunswickers value learning. They appreciate the opportunity to further their education and training. Working with the people of the province, the Government of New Brunswick will take the following steps to improve the quality of our labour force:

Action Items: A Quality Workforce

• Increase focus on literacy, including digital literacy, and workplace essential skills.

• Support industry to meet the certification and training needs identified to capitalize on opportunities related to large industrial projects in the region (e.g., the shipbuilding contract in Nova Scotia, natural resource projects in Newfoundland and Labrador, and the Plan Nord in Quebec).

• Refocus training programs to assist individuals to achieve employment or gain concrete work experience.

• Increase the number of seats in community colleges and increase student support services and financial incentives.

• Fund pilot projects in public post-secondary institutions to broaden access for traditionally under-represented groups.

• Work with universities to finalize key success indicators, including labour-market outcomes.60

65 70 75 80 85 90 95

100

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

% of

Cana

da

N.B. Productivity Relative to Canada - Business Sector (Real Value Added per Hour Worked)

Canada =100

New Brunswick

Source: Statistics Canada, CANSIM Table 383-0011 Labour ProductivityAnnual real value added (chained 2002 dollars) per hour worked for business sector industries 2010 = $38.40/hour in Canada and $30.70/hour in New Brunswick – 2002 dollars (79.9%)

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2. More People Working at the Right Jobs

New Brunswick has many benefits that attract people to our province, including our quality of life and attractive business tax rates. At the same time, we must continue to recruit and retain skilled, experienced workers to enhance our competitiveness.

We must also, quite simply, get more people into the right jobs in our labour force.

Today, New Brunswick’s working age population is approximately 620,000. About 62 per cent of these individuals participate in the labour force. The national participation rate is more than 66 per cent.

This means there is room for improvement. It is critical for the success of our economy that all members of our society can contribute and that we recruit and retain a strong working population.

New Brunswick has a growing First Nations population that is poised to contribute more fully to our economy. New Brunswick’s population of persons with disabilities has also been identified as a key contributor to our growing economy.

New Brunswick has had some success in addressing these challenges through targeted immigration, training, and efforts to attract New Brunswickers back home.

Here are other steps the Province will take to increase the size and enhance the economic impact of our workforce:

Action Items: More People Working at the Right Jobs

• Increase and target immigration and interprovincial migration efforts.

• Focus attraction efforts on highly skilled workers and business immigrants.

• Strengthen settlement infrastructure in strategic areas of the province.

• Attract international students to secondary, college and university programs that are rooted in industry needs and priority sectors.

• Help newcomers obtain credentials to work in their fields inside New Brunswick.

• Leverage the opportunities presented by a growing First Nations population.

3. Matching People, Education and Training with Employment Opportunities

To prosper, the people of New Brunswick must understand future needs in the labour force and match training, education and people to those needs.

To accomplish this, we must provide New Brunswickers with information about labour markets that allows them to make smart decisions about their career, training and education.

The Province will work harder to understand and meet labour market demands for particular skills.

0%

10%

20%

30%

40%

No degree,certi�cate or diploma

High schooldiploma

Post-secondarycerti�cate or diploma

University degree

Educational Attainment of Labour Force

CanadaNew Brunswick

Source: Statistics Canada, Labour Force Survey

10

We will take the following steps to achieve greater productivity by leveraging the skills of talented and productive people working with competitive and innovative companies:

Action Items: Matching People, Education and Training with Employment Opportunities

• Fill existing information gaps related to labour market demand and supply for particular skills and the supply of available labour.

• Generate better information on emerging sectors to ensure graduates are meeting the education and skill requirements of current and potential employers.

• Adopt the necessary technology to match candidate skills with New Brunswick employment opportunities and respond to market demand.

• Identify more skill and training opportunities for First Nations populations.

• Implement an employability strategy for persons with disabilities to increase their participation in the economy.

2.2  Our Competitive Business Environment

Our people remain our greatest strength, but other factors contribute to the success of New Brunswick. A business-friendly tax system, for instance, helps keep our province competitive as one of the best jurisdictions for new investment in North America.

Other assets which help make our province strong include:

• A strong transportation network linking road, rail, air and marine routes.

• A number of excellent research facilities.

• The lowest energy costs in Atlantic Canada.

• Availability of high-speed Internet access at homes and businesses throughout the province.

Despite these economic advantages, New Brunswickers face fundamental challenges inside a global marketplace which includes low-labour cost jurisdictions like India, China and Brazil.

Rather than focus on being a low-cost jurisdiction, we need to build on our reputation as a place that encourages companies to be leaders in product innovation, productivity, environmental responsibility and customer service.

In short, New Brunswick must embrace a culture of innovation, productivity and service. This will require more focused research activity that will lead to demand-led product and process innovation.

It will also require developing managers and business leaders with the ability to strategically position their businesses to compete globally.

Defining our GoalsTo achieve greater competitiveness and prosperity, the Province has identified the following goals to enhance New Brunswick’s overall competitiveness:

1. Building a smart economy.

2. Strengthening a sustainable, environmentally-responsible, cost-competitive energy environment.

3. Enhancing regional co-operation.

4. Improving transportation infrastructure.

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Achieving our Goals1. Building a Smart Economy

Silicon Valley wasn’t built in a day and the recent success of several New Brunswick companies proves that we can grow our knowledge-based economy – and not only in the high-tech sector.

Indeed this report identifies six sectors with great potential for growth: aerospace and defence, biosciences, industrial fabrication; value-added food; value-added wood; and information and communications technology.

Here are steps the Province will take to establish winning conditions for the development of a smart economy:

Action Items: Building a Smart Economy

• Attract, retain, educate and train the right people (see details in Our Priceless Human Resource).

• Further work with partners to deliver affordable and flexible training to help strengthen the management and innovative capacity of businesses.

• Work with public- and private-sector research facilities to advance the growth of research and development (R&D) activity and identify opportunities for commercialization.

• Work with partners to maximize the benefits of our digital network infrastructure by improving the digital literacy of our population and looking at options to reduce access costs.

• Through Invest NB, attract companies from high-potential growth sectors that will serve to anchor and complement the provincial growth strategy.

2. Creating a Sustainable Energy Environment

New Brunswick already has the lowest energy costs in Atlantic Canada. One key to our ongoing success is sustaining that economic advantage, while enhancing energy cost stability and predictability. This will be of particular benefit to our energy-intensive sectors, such as forestry, oil refining, metal fabrication and mining.

At the same time, government recognizes that New Brunswick must develop its energy resources, and fuel economic growth, by increasing the percentage of power generated from renewable sources. Fortunately, New Brunswick is well-positioned to excel in the emerging energy environment. With the Point Lepreau generating station in operation, 75 per cent of New Brunswick energy will come from renewable or non-emitting sources by 2020.

This will help our province meet the growing consumer demand for products from industries that minimize their carbon footprint.

Action Items: A Sustainable Energy Environment

• Continue work with NB Power on development of a smart grid to enhance efficiency.

• Co-operate with the utility and others in achieving the goal of 75 per cent of electricity from renewable or non-emitting sources by 2020.

• Implement action items from the Province’s Energy Blueprint to stabilize power rates over the long-term.

• Help industry comply with global requirements to become “green.”

• Co-operate with other regional jurisdictions, including Maine and Nova Scotia, to acquire more efficient, environmentally-friendly and cost-competitive energy supplies.

3. Enhancing Regional Cooperation

Our province has already made great strides in achieving regional co-operation and obtaining the benefits that go with it. For instance, it has joined hands with Nova Scotia in establishing a venture capital fund.

12

It continues to co-operate with neighbouring provinces and the federal government on development of the Atlantic Gateway and Trade Corridor.

New Brunswick is also working with Maine, Nova Scotia and others to achieve greater energy efficiency in the transmission of electricity and management of the power grid.

In addition, the Department of Transportation and Infrastructure is collaborating with other jurisdictions to use common IT architecture for Intelligent Transportation Systems. This is just one more example of how jurisdictions are working together to help businesses minimize costs. Still, we know that further progress can be made in all of these areas. The Province will continue to collaborate with other governments and pursue opportunities to save money by working together.

Action Items: Enhancing Regional Cooperation

• Continue working with partners to develop the Atlantic Gateway and Trade Corridor.

• Advance bi-provincial and bi-national efforts to enhance and integrate the regional transportation system, and enhance export performance.

• Continue work with the other Atlantic provinces and Ottawa on regional energy issues for the betterment of the entire region.

• Increase benefits of collaborating with Nova Scotia on the Partnership Agreement on Regulation and the Economy (PARE).

4. Improving Transportation Infrastructure

Strategic investments must continue to be made in roads, ports, railways, airports and other transportation infrastructure to support the progress and prosperity of the province.

With its relatively small population and significant industrial capacity, New Brunswick relies on good intermodal transportation links to move goods and products to export and domestic markets.

Particular focus must be placed on moving bulk products from heavy industries like mining and forestry, which emphasizes the need for excellent marine-shipping and rail links.

To help move goods to markets, the Province makes a commitment to the following goals:

Action Items: Improving Transportation Infrastructure

• Develop strategies and build capacity for the future sustainability of rail service to, from and within the province.

• Help reduce transportation costs by improving productivity through investments in four-lane highways.

• Deploy Intelligent Transportation Systems such as road condition web cams, weigh-in-motion systems, etc.

2.3  Attracting Investment Capital

Access to financial capital is crucial to economic development, and to New Brunswick’s economic success. It allows companies to make strategic investments in plants, equipment and technology. It also assists the commercialization of R&D – in bringing great research to market.

In 2010, the New Brunswick Securities Commission released a report that concluded entrepreneurs could often attract money to seed their business ideas. Companies also do well in attracting investment for the growth and expansion of their businesses once they are operating.

Firms in the province face greater challenges, though, when they enter the so-called “valley of death” – the start-up and late stages of growth. The consequences of this can be negative. Some firms fail due to lack of investment. Others find

13

investors outside the province, which often results in a company relocating head office functions closer to financial centres in Toronto, Boston and New York.

This has been balanced in recent months by good news – New Brunswick’s capital market has been boosted by the highly visible multimillion dollar sales of successful NB start-ups and the establishment and endowment of a new entrepreneur program at the University of New Brunswick. Future development opportunities are there.

Defining our GoalsThe Province has identified the following goals to achieve greater access to capital for New Brunswick’s innovative entrepreneurs:

1. Achieving a fully-developed capital market to help qualified businesses and entrepreneurs secure access to investment or start-up capital throughout the development life of their companies.

2. Co-operating with other governments in securing funding.

3. Making a public investment in infrastructure to help companies acquire investment funding.

Achieving our Goals1. A Fully-Developed Capital Market

New Brunswick needs a fully-developed capital market that can support all stages of the product development and business life cycle. This requires a capital market that provides companies with financial resources to research and develop good ideas into commercial products and applications, grow and expand operations, finance export activities, and manage short-term cash flow interruptions.

Companies also need to be more visible to potential investors, mitigating the need to relocate to larger financial centres to access capital. We need to continue to showcase our successes and build on the momentum created by recent acquisitions of New Brunswick companies by Fortune 500-calibre suitors.

Action Items: A Fully-Developed Capital Market

• Work with partners to build on the momentum created by recent successes by providing financial support to develop and encourage entrepreneurs, particularly in sectors having potential for sustainable, high-paying jobs.

• Partner with entrepreneurs to work with targeted business/investment media to tell the New Brunswick story.

• Communicate the New Brunswick investor story to angel investment and venture capital fund managers.

• Help equip companies to “tell their stories” directly to Fortune 500 and other companies.

• Review existing financial programs and make any necessary adjustments to ensure they are responsive and address gaps in the capital market.

• Work with partners to identify and evaluate potential infrastructure projects that can help accelerate the development of growth sectors and explore financial options that leverage the resources of all partners and programs.

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2. Co-operate with Other Governments

New Brunswick will continue to work with the federal government and other partners to help secure investment capital for innovative and promising firms. Key federal agencies include the Atlantic Canada Opportunities Agency (ACOA) and the Business Development Bank of Canada.

Action Items: Co-operate with Other Governments

• Work with Nova Scotia to strengthen the Atlantic Venture Capital Fund (AVCF) which provides support to major projects in emerging sectors.

• Encourage participation in the AVCF by other Atlantic partners and private investors.

• Review existing financial programs across all levels of government (federal, provincial, municipal) to ensure they are responsive and address gaps in the capital market.

• Investigate the potential of additional partnership with other jurisdictions, including Quebec and Maine.

3. Public Investment in Infrastructure

New Brunswick needs to help companies become more innovative, export-oriented, collaborative, efficient and productive by supporting them through investments in infrastructure. We will need to ensure that these investments align with long-term provincial economic development aspirations and are financially sustainable.

Action Items: Public investment in infrastructure

• Work to ensure that our multimodal transportation and communications networks continue to serve the needs of manufacturers and the service industry in both rural and urban areas.

• Consider investments in industrial and knowledge parks and other structural capacity that can help companies build relationships and work together.

• Facilitate better planning and ensure sustainability of local infrastructure investments through the Regional Service Commission model.

2.4  Improving Market Access

With a population of around 750,000, New Brunswick must work with all markets to help generate wealth. Exports both create additional sales and revenue, and help New Brunswick firms reach critical production targets, achieving economies of scale and lower costs.

Improving access to markets positions New Brunswick companies to capitalize on foreign market opportunities as well as domestic markets. Foreign market access is influenced by Canada’s trade agreements as well as the export readiness of our companies.

Fortunately, many New Brunswick business leaders understand this virtuous circle. New Brunswick remains the most export-intensive province in Canada. In addition, many of our firms do a sound job of completing sales in the rest of Canada.

Still, we see this performance as a prelude to even greater success. New Brunswick has had a deep reliance on its oil and gas export industry. However, there is an opportunity to increase the number and diversity of exporters in domestic and international markets, increase the value-added component of our exports and expand sales in emerging markets.

15

Defining our GoalsDespite this great track record overall, New Brunswick has a clear opportunity to expand export sales. Today, only one in 30 New Brunswick firms exports internationally, compared to one in 20 in Ontario. This means that many New Brunswick firms are heavily reliant on the spending of consumers in the local and Canadian markets.

In addition, New Brunswick could improve its performance in terms of value-added exports, which comprise less than 20 per cent of foreign sales.

Finally, our export sales are also focused heavily on energy sales into the U.S. market. (Overall, energy sales comprise 69 per cent of international exports.) Emerging economies like Brazil and India represent new export opportunities.

Our goals in export growth are:

• Encouraging more firms to enter export markets.

• Focusing on growth opportunities through value-added exports.

• Diversifying New Brunswick’s export markets.

Achieving our Goals1. Encouraging More Firms to Enter Export Markets

We need to increase the percentage of New Brunswick firms active in international markets, and New Brunswick companies need to understand what is required to operate in foreign jurisdictions and how contracts are secured. They need to develop the business skills, relationships and confidence to aggressively pursue and capitalize on export opportunities, individually or in partnership with other firms. Research also shows that New Brunswick companies need to make better use of opportunities to sell and market their products and services online.

Significant business opportunities are also emerging for New Brunswick companies to participate in the supply chain of large capital projects in a number of Canadian markets. Industrial projects in the oil and gas sectors and federal defence and shipbuilding procurement, will provide multi-billion-dollar contract opportunities for New Brunswick firms.

0%

10%

20%

30%

40%

50%

60%

New Brunswick Ontario Quebec Canada

Business Expenditures on R&Das a percent of total R&D expenditures, 2008-2009

2008 2009

Source: Statistics Canada – Table 358-0001

Today, some New Brunswick companies are already well-equipped to pursue export opportunities. They have established offices out of province to secure contracts. New Brunswick has a number of savvy and experienced business people and business organizations that can help open doors and provide guidance to new entrepreneurs or companies inexperienced in export markets.

Leveraging university alumni contacts and in-market expertise through trade commissioners will also be important in providing the tools needed to facilitate increased export opportunities.

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Action Items: More Firms in Export Markets

• Develop a provincial trade strategy to better coordinate resources and priorities leading to more globally oriented companies.

• Create awareness of the benefits of exporting to help motivate companies to capitalize on outside sales.

• Assist companies to become fully prepared in terms of understanding the financial, technical, and environmental requirements of selling products and services in international markets.

• Continue to organize and lead trade missions, including the presence of key officials to “unlock doors” and help companies make important first contacts.

• Continue to support market diversification and work with partners to develop the Atlantic Gateway Strategy to open new trade routes with Europe and emerging Asian markets.

• Work with partners to match experienced business leaders with protégé entrepreneurs in an effort to help them enter new markets, and with our immigrant population, including foreign students, to help companies make contacts in overseas markets.

2. Focusing on Value-added Exports

Increasing the value of our exports means more jobs for New Brunswickers and a higher standard of living. We want our companies to strive to add value through innovative product development, R&D, process improvement and marketing.

Global markets continue to rapidly change and we must adapt our trade strategies. Companies must now be fully aware of how to configure their production to take advantage of low-cost global sourcing and focus their efforts on value-added activities where they have strengths.

Closer to home, multibillion-dollar opportunities have emerged throughout Eastern Canada, providing new opportunities in defence, shipbuilding, energy and mining.

Typically, these large-project contracts are valued in the millions of dollars. While securing such contracts may seem beyond the reach of smaller, companies, there is strong potential for small and medium-sized enterprises to be part of the supply chain of a major contract.

The industrial fabrication sector in New Brunswick is a good example, with several metal fabrication firms involved in the supply chain for large projects as suppliers to a larger company, providing major sub-assemblies, component assemblies or as prime contractors.

Opportunities in high value-added service industries, including engineering, represent a great chance for skilled New Brunswick firms to grow their export markets.

Action Items: Value-added Exports

• Work with companies to help improve production efficiency by outsourcing low-margin production and adding higher-value content domestically.

• Encourage greater innovation and R&D by companies to better position and market their products and services to specific export markets.

• Leverage other elements of our trade policy, for instance, through leadership development, mentoring and partnerships.

• Assist companies to become fully prepared in terms of understanding the financial, technical and environmental requirements of selling products and services in international markets.

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3. Diversifying Export Markets

New Brunswick should take steps to export more goods and services to diverse markets, and to reduce the risk of dependency on sales to the United States.

The United States will continue to be a valuable market. But as recent history shows, a sudden currency shock, a prolonged economic recession, or a change in foreign trade policy could present serious challenges for New Brunswick companies.

With significant population and income growth expected in emerging countries such as China, India and Brazil, New Brunswick has an excellent opportunity to lessen its dependence on the United States market.

The European Union, the single largest market in the world, will also prove important to our export success. New Brunswick will be closely watching the Canada-European Union Comprehensive Economic Trade Agreement (CETA) negotiations as they unfold.

In November 2011, New Brunswick signed a Memorandum of Understanding with the province of Hebei, China that would see the province share its building expertise in wood-frame structures. This is a good example of a proactive trade initiative that can pave the way to success.

Finally, we want to encourage more local buying to help small companies develop a customer base to help them build the credibility required to succeed in export markets.

Action Items: Diversifying Export Markets

• The Provincial Purchasing Act and other provincial policies and regulations, such as a Wood-First Policy, will be used to help companies sell in the local market and acquire the credentials, track-record and expertise necessary for export success.

• Support will be provided to companies to assist them in certifying or qualifying their products or processes to improve their market access.

• Training will be given to New Brunswick companies to better position them to take part in the supply chain of large capital projects.

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3. Growing Strategic Industries inside a Strong, Diversified Economy

New Brunswick will succeed by growing all parts of its economy – both its traditional and emerging sectors.

New industries in emerging sectors have proven themselves to be innovative, successful and poised for growth and that will mean good-paying jobs for New Brunswickers.

New Brunswick information and communications technology (ICT), and aerospace and defence companies have already made an impact in New Brunswick and on the world stage.

At the same time, our traditional, resource-based industries continue to employ thousands of New Brunswickers, providing well-paying jobs in both urban and rural communities.

3.1  A Focus for the Future

Our economy takes strength from its diversity.

In recognition of this fact, this section of Growing Together both highlights the strengths of traditional core industries, and identifies six priority strategic sectors that are poised for significant growth.

Sectors targeted for growth include:

• Traditional industries that have proven track records with a high potential to evolve.

• Industries that are poised to meet the challenges of the future.

• Industries that can spin off of our more traditional ones.

For each of the six growth sectors, the Province has developed a specific growth strategy.

In this report, we highlight the potential of each sector within the context of our diversified economy.

3.2  Our Priority Growth Sectors

Value-added Food

New Brunswick’s value-added food sector encompasses companies producing agriculture and seafood-based products, beverages and other food made from both local and imported resources. The sector includes live, fresh, frozen, packaged, processed and preserved food products whose value and profitability has been increased by making them more appealing and valuable to the buyer.

In New Brunswick, the value-added food sector continues to help drive the economy. It directly provides jobs to about 10,000 people in 182 locations. It generates close to three per cent of the province’s GDP.

It also provides indirect benefits with primary producers and harvesters, transportation and logistics companies, and food distributors.

Given the current trends toward healthy diets and functional foods, blueberries, cranberries and salmon are a few examples of primary products grown in considerable quantities in New Brunswick where there may be significant opportunity for development of new, high-value products.

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To strengthen the value-added food sector, the Province will focus on supporting productivity improvement and helping the industry access new markets.

We will also assist the sector in developing new products, and help it to stay ahead of the curve by monitoring consumer trends.

Value-added Wood

The value-added wood sector includes companies which add value to hardwood or softwood by further manufacturing or processing. This includes lumber, pulp and paper, tissue, remanufactured products, engineered products, appearance products, and products derived from wood biomass.

This sector builds on the strength New Brunswick’s forestry powerhouse.

Already, value-added wood products directly employ 10,600 New Brunswickers in over 200 locations. They generate over four per cent of New Brunswick’s economy.

The future is dependent upon the ability to transform by-products into new product streams such as bio-fuels, bio-chemicals, and bio-products. Using the entire tree and all its parts in the most efficient and profitable manner is key to sustaining the province’s forest industry.

A review of emerging markets and trends underline the potential of this industry. Significant market opportunities are emerging in green building products, system-built housing, and renewable fuel sources.

The Province will focus on strengthening capacity in these sub-sectors and developing new markets in emerging economic powers such as China.

In addition, we will use input from two commissioned studies on private and crown woodland to ensure a future supply to sustain New Brunswick’s value-added wood sector.

Information and Communications Technology (ICT)

Information and communications technology (ICT) includes industries primarily engaged in producing goods or services or supplying new technologies or methodologies, used to process, transmit, or receive information. New Brunswick’s ICT sector consists of companies whose core business falls into one of the categories including information technology (IT) services and products, telecommunications, and interactive digital media such as game development, learning technologies and mobile device applications.

ICT continues to be a major contributor to New Brunswick`s economy.

It directly employs about 8,000 people and generates close to four per cent of the provincial GDP.

New Brunswick companies have already established footholds in international markets in this extremely competitive and fast-paced industry.

A few examples include a leading supplier of Geographic Information Systems (GIS) and spatial information management solutions; an international provider of next-generation security intelligence products; and a firm specializing in social media monitoring that was recently acquired for $326 million.

The ICT sector in New Brunswick enjoys major opportunities for continued growth. These include the development of entertainment software, information applications for mobile devices and the tools to support an energy smart grid.

ICT can also help to improve the competitiveness of New Brunswick companies by using ICT solutions for greater efficiency and effectiveness.

The Province will focus on addressing the availability of human resources, improving access to capital for innovative ICT companies, and improving awareness of ICT solutions and potential applications to industry.

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Industrial Fabrication

Industrial fabrication is a category of metal fabrication covering the manufacturing of processing and support equipment for industrial use, particularly in large-scale construction projects.

New Brunswick’s highly-skilled industrial fabrication industry generates close to $200 million in economic activity every year.

In all, industrial fabrication provides 2,000 well-paying jobs in close to 100 companies located across the province.

We’re already making our mark with New Brunswick companies manufacturing tens of millions of dollars’ worth of modules for local projects – and for markets as nearby as Newfoundland and Labrador and as distant as Alberta, Texas and the Arctic.

To promote growth in this sector, the Province will work to match New Brunswick suppliers with major contract holders.

We will also help New Brunswick companies acquire required industry certifications, educate them on the bidding process, help them improve their productivity and maximize use of existing infrastructure.

Biosciences

The New Brunswick bioscience sector includes companies that use biotechnology applications to develop a wide range of bio-based products and services including animal, plant and human health diagnostics; natural health products; genomics; bio-chemicals and bioremediation. The sector has the potential to reduce costs and increase yields in food production; solve environmental problems; assist with preventative health care, as well as create higher value-added uses of traditional resources or biomass materials including waste-products.

New Brunswick’s biosciences sector has already made a significant contribution to key sectors of the province’s economy.

Through the study and treatment of disease in salmon, for instance, bioscience applications have played an important role in strengthening the primary aquaculture sector. This has helped New Brunswick position itself as a global leader in fish-health research.

In the forestry sector, bioscience techniques enable the development of environmentally-friendly bio-pesticide solutions for controlling forest pests.

The Province is confident this sector has significant potential to generate products and services that can further strengthen traditional industries including agriculture, fisheries, and forestry.

New Brunswickers working in this knowledge-intensive sector also have the capacity to make a significant contribution in fields like biomedical research and bioremediation.

The Province will focus on linking bio-based research to commercial applications.

This approach will build on the strengths of the sector, and contribute to the environmental sustainability of New Brunswick’s traditional resource-based industries.

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Aerospace and Defence

The aerospace and defence (A&D) sector in New Brunswick includes businesses and institutions whose products and services are used for civil aviation and national defence and security. Products include vehicle systems, aircraft components, and electronic assemblies and services related to maintenance, repair, and overhaul; system support and training; and training simulation for military and commercial aviation. The sector includes companies involved in the industry’s “high technology” infrastructure such as air traffic systems, mission systems and ground equipment of various kinds, as well as the space industry and security-related capabilities.

New Brunswick has a thriving aerospace and defence industry that already generates $500 million in spending annually inside the province.

New Brunswick has strategic economic advantages in three specific areas:

• Manufacturing and refurbishing land systems.

• Building ship modules.

• Developing advanced learning solutions for pilot training and simulated warfare.

The Province believes the industry is well positioned to take advantage of large regional contracts as well as federal military procurement programs.

Government will work to strengthen this sector by helping companies get required certifications for subcontract work.

We will work to match senior-tier procurers to New Brunswick companies, and co-operate with the New Brunswick Aerospace and Defence Association to help companies adopt best practices and forge strategic alliances.

3.3  Our Traditional Industries

Forestry, fisheries and aquaculture, mining, tourism, agriculture and oil and gas: These are New Brunswick’s traditional industries, the cylinders that have to be firing if our economic engine is operating at full speed.

The Province is well-aware that no artificial lines can be drawn between these sectors and priority growth sectors identified above. Traditional core industries are being leveraged to help support opportunities in new and emerging industries.

Bioscience breakthroughs have applications in aquaculture and agriculture.

Our industrial fabricators also sell products in the oil and gas and mining industries.

ICT apps improve productivity and efficiency in forestry and tourism.

Indeed, it is due to the integration of our economy that our traditional industries will continue to serve as a sound foundation for growth.

They have been traditional lifeblood of communities in the past; they hold exciting opportunities for our future.

The Province will continue to support traditional industries in becoming more innovative, productive and competitive.

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MiningMining remains one of our highest-value industries and generates significant direct and indirect jobs.

The future of the industry will depend on economical and environmentally-responsible mineral extraction processes, requiring ongoing R&D improvements that will in themselves drive growth.

The Province will focus on working with partners to maximize the economic value of a number of mineral deposits in an environmentally responsible manner.

These opportunities include several projects being planned or close to the production stage involving resources in potash, base metals, tungsten and molybdenum.

Oil and GasNew Brunswick’s oil and gas industry currently makes significant contributions to our provincial economy through production, exploration and refining activities.

The refining operations at Saint John sustain hundreds of direct jobs. Saint John is also home to the first LNG terminal in Canada – a state-of-the-art LNG receiving and regasification terminal that sends out natural gas to both Canadian and US markets.

Natural gas production in both the McCully and Stoney Creek Fields provide direct and indirect jobs, while generating more than $1 million in royalty revenues annually for the province.

In addition, several companies are currently exploring in the province, generating additional economic benefits and holding out the potential for additional production.

Should exploration turn into development, New Brunswick stands to reap further royalty revenues as well as significant spin-off activity related to well construction, road building, transportation, environmental engineering, consulting, etc.

Oil and gas industries are among the highest paying industries, capable of creating good jobs that can help bring New Brunswickers home to work.

As oil and gas activity develops, the Province is committed to ensuring New Brunswick’s regulatory framework satisfies the triple bottom line of economic, social and environmental sustainability.

ForestryThe forestry sector continues to be an important contributor and driver of the overall wealth of the province.

Forestry provides the materials necessary for existing and emerging wood-based industries.

Strategically managing forest lands ensures that both crown and private woodlands can support economic development opportunities.

Government wants to provide the highest economic return from the land being managed, whether it is crown or private.

Provincial actions will focus on managing the forestry sector to produce maximum benefits to the province while ensuring the future sustainability of fibre supply.

This will include improving the competitiveness of primary harvesting through recapitalization and training and implementing the recently released Crown forest management plan that balances social, ecological and economic needs.

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AgricultureA prosperous rural New Brunswick will include globally competitive, sustainable farms, vibrant and innovative agri-service and value-added businesses.

Primary agriculture also fuels a vibrant value-added food sector, which is responsible for a significant percentage of provincial GDP.

The Province will support industry in augmenting its potential to generate wealth from the development of new agriculture-based products.

Focus will be directed towards increasing the acreage under development; improving the fertility of existing agricultural land; and working with industry to help address cost pressures through programs to help develop value-added products and modernize traditional production.

Research discoveries, especially in the biosciences, are making it possible to extract more value from agricultural products and to develop new varieties of existing species

The Province will support research and innovation in primary agriculture through programs, and by helping to identify opportunities and match researchers and potential investors with industry.

Fisheries and AquacultureOur fishery and aquaculture sectors continue to make crucial contributions to the provincial economy.

Both sectors provide direct employment, as well as many processing jobs in rural New Brunswick.

In addition, significant economic activity is generated from the marine-supporting sectors, including equipment manufacturing, transportation, feed production, veterinary and other professional services.

The Province recognizes the importance of these marine-based resources and will continue to assist the industry’s growth by:• Targeting efforts at continued industry sustainability through reviewing and modernizing current resource

management policies.• Finalizing an oyster harvesting policy.• Encouraging production automation.• Helping companies to develop new seafood products and become more eco-friendly.

The Province will also work with partners to further species diversification in the aquaculture industry and to improve the balance between harvesting and processing capacity in the traditional fishery.

TourismNew Brunswick’s tourism industry represents more than three per cent of the economy, employs thousands of people, and attracts thousands more to New Brunswick every year.

To attract more visitors, the Province will collaborate with industry stakeholders to invest in infrastructure and sustainable tourism products (e.g. Bay of Fundy, Acadia, beaches and rivers, and the upcoming Acadian World Congress/Congrès mondial acadien).

Our great natural attributes differentiate New Brunswick and offer quality experiences as a world-class destination.

A prime example is the Bay of Fundy, the only Canadian destination that made it to the final competition as one of the world’s “New 7 Wonders of Nature.”

To help to ensure a positive and memorable experience, we will invest in market readiness training for the people who are hosting our guests.

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4. Measuring and Collaborating on Economic Progress

The Province has outlined a plan for rebuilding New Brunswick’s economy based on its human resource potential, traditional economic strengths, and strategic growth sectors.

But what is the public policy framework for success?

A look at the economic landscape of New Brunswick reveals many organizations, programs and initiatives related to economic development. The result is confusion for users, overlap and duplication.

The Economic Plan for New Brunswick needs:

• A clear economic strategy that is inclusive of all stakeholders and partners.

• A government structural design that is supportive and flexible.

• Appropriate indicators to target and measure progress.

4.1  A New Department of Economic Development

We recognize that we need to streamline and align economic development efforts to ensure dollars are spent wisely, the system is easy to access and decisions are made at the community level.

That’s why we have created a new Department for Economic Development. Its minister is responsible for two arms of provincial economic development:

• A revised Department of Economic Development focused on domestic business and incorporating the Regional Development Corporation (RDC) responsible for rural and regional initiatives, strategic infrastructure development, research and development support to research institutions, universities and colleges, management of federal/provincial economic agreements as well as the coordination of regional economic planning.

Regional services of the new department will allow for decentralized decision-making related to programs and funding for small and medium-size enterprises (SMEs).

A centralized service in the new department offers support to the economic districts in: Strategic Policy, Trade and Marketing, Financial Assistance to Industry, and Corporate Services including Human Resources, Information Technology, Accounting and Records Management.

• A new crown corporation titled Invest New Brunswick (INB) focused primarily on investment attraction and the provision of aftercare support to those businesses operating in New Brunswick but controlled elsewhere.

Regional services will correspond with the boundaries of the five ACOA regions, the 10 Community Business Development Corporations (CBDCs), and the 12 Regional Service Districts, promoting federal/provincial collaboration and integration of funding, planning and accountability.

This structure will better align federal, provincial and municipal policy frameworks essential for developing successful and sustainable plans for each region and for the province as a whole. Opportunities exist to share regional offices to improve efficiencies and improve service. Advisory forums will assist in monitoring the progress of economic development plans.

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4.2  Measuring Success

The Province has put the right public policy framework in place.

The GNB Change Agenda and Strategy Map set out the overall vision of the Province. This vision positions New Brunswick with a stronger economy and an enhanced quality of life, while living within our means.

GNB Change Agenda from Economic Growth to

Declining position Competitive position

Public sector driven Private sector driven

Job focused Innovation focused

Quality of Life

Government dependency Self-reliance

Treatment Wellness

Skill/need imbalance Ready workforce

Living within Means

De cit Balanced Budget

More services Service improvements GNB Culture

Working in silos Working together

Budget centered Performance centered

Cut and Control Continuous improvement

The objective of the Change Agenda and Strategy Map is to change the direction of economic growth towards prosperity in the following areas:

1. The creation of quality jobs

2. More people working

3. Private-sector business growth

4. Focused and streamlined economic development efforts

5. Improved workforce readiness

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The corporate vision and these five objectives inform and underlay our economic development strategy and economic renewal.

Citizens

Financial

Internal Processes

Strategy Map | 2012 – 2013Providing quality services to support a prosperous, fair and just society for New Brunswick.

Enablers

“Stimulate creation of quality jobs”

“More people working”

Improve workforce readiness

Foster private sector business growth

People Readiness

Develop process improvement competencies

Attract, develop and retain

leadership talent

Information Readiness

Deliver relevant, timely and quality

information

Performance Excellence Culture

Align department performance to

GNB Strategy

Focus and streamline economic development efforts

“Effectively deliver priority services”

Ensure access to services that meet primary needs

“Provide value for my tax dollars”

Meet or under spend expense budget

Meet or exceed revenue budget commitments

Prioritize, optimize and improve service delivery

A stronger economy and an enhanced quality of life, while living within our means.

NB PUBLIC SERVICE VALUES: COMPETENCE – IMPARTIALITY – INTEGRITY – RESPECT – SERVICE

VISION2015

Measures of SuccessNew Brunswickers have told us they want government to be accountable for its policies, to rate our successes and to adapt plans as necessary.

We have put some key indicators or measurements of success in place that will allow New Brunswickers to track how and where economic progress is being made.

We will report these measurements to New Brunswickers in the coming years which will track the progress we make in Growing Together.

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Indicators are grouped into four distinct areas:

• Core indicators that support the 2015 Strategy Map for a stronger economy.

• Strategic indicators that support key objectives.

• Priority sector-specific indicators.

• Other indicators that regularly monitor, forecast and contribute to government revenue projections.

Core Indicators (reported annually)

Indicator Base Measure 2015 Target

Private-sector real GDP growth Growth gap of 0.6 percentage points with other EQ provinces (Base: 5-year average)

0.0 percentage point gap with EQ provinces

Labour productivity $34.20 per hour worked (Base: 2010) $37.40 per hour worked

Working-age population 1.872 working persons/dependants (Base: 2011)

1.7484 working persons/dependants

Private-sector real GDP growth

• Measures growth of the private-sector economy and excludes the public-sector contribution.

• Growth targets reflect the size of the economy and the private-sector consensus forecast of growth across the country.

• Target set to narrow the gap in growth rates between New Brunswick and Equalization-receiving (EQ) provinces (PE, NS, PQ, ON, MB).

• New Brunswick’s GDP growth has lagged its peers in three of last five years.

• Would reverse a declining trend seen over the last four years and result in the private sector representing just under 77 per cent of the economy.

Base (5-year average) 2015 target

Growth gap of 0.6 percentage points with other EQ provinces 0.0 percentage point gap with EQ provinces

Labour productivity

• Measures efficiency of labour to produce a given level of output.

• Leads to increased competitiveness.

• New Brunswick is one of the lower-productivity provinces

• Since 2000, only Newfoundland and Labrador has seen a higher rate of productivity growth.

• This target is focused on narrowing the gap with Manitoba as the province with the next lowest level of productivity to New Brunswick.

• Could add $450 million to economic growth above the current forecast and $2 billion from where New Brunswick was in 2010.

Base (2010) 2015 target

$34.20/ hour worked $37.40/hour worked

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Working-age population

• Indicates more working-age people contributing to economic growth.

• Measures the growth of the tax base.

• This ratio in New Brunswick has decreased in each of the last three fiscal years and is expected to decrease in 2012-13.

• The goal of this target is to increase the working-age population.

Base (2011) 2015 target

1.872 working persons/dependants 1.7484 working persons/dependants

Strategic Indicators

Data related to core economic indicators are published annually, but data for the strategic indicators is published more frequently, allowing for quarterly, and in some cases, monthly monitoring of New Brunswick’s progress. There are seven indicators identified as appropriate for tracking our economic success:

1. Ratio of Full-Time to Part-Time Jobs

2. Ratio of High-Paying to Low-Paying Jobs

3. Private Sector Employment

4. GDP Growth in Priority Areas

5. Return on Taxpayer Investment

6. Proportion of Population with Post Secondary Education

7. Literacy: Grade 7 Reading (English) / Grade 8 Reading (French)

Objective Indicator Base year

Stimulate creation of quality jobs Ratio of full-time to part-time employment

5.13 full-time jobs for every part-time job

Ratio of high-paying to low-paying jobs 1.35 high-paying job for every low-paying job

More People working Private sector employment 0.2% decline

Focus and streamline economic development efforts

GDP growth in priority areas

Return on taxpayer investment $1.07/ $ invested

Improve workforce readiness Proportion of the population (25-64) with Post-secondary education (PSE)

56.5% of population with PSE

Provincial literacy assessment: Grade 7 (A) / Grade 8 (F)

69.4% (anglophone sector)

72.9% (francophone sector)

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Sector Indicators

The performance measurement framework includes a set of three indicators that will be tracked specifically in regard to the six priority sectors for growth: Value-added Wood; Value-added Food; Industrial Fabrication; Information and Communications Technology; Aerospace and Defence; and, Biosciences. The three sector indicators are:

1. Employment

2. Labour Productivity, measured in terms of GDP per worker

3. GDP

Sector Indicator Base (2011)

ICT GDP $875M (2002$)

Employment 8,000

Productivity $109,400/worker

Industrial Fabrication

GDP $197M (2002$)

Employment 2,000

Productivity $98,500/worker

VA Food GDP $690M (2002$)

Employment 10,000

Productivity $67,970/worker

VA Wood GDP $969M (2002$)

Employment 10,600

Productivity $91,377/worker

It should be noted that baseline information is unavailable at this time for the Bioscience and Aerospace and Defence sectors. Collection of data required to establish 2012 as the base year for these two sectors will be undertaken to allow for performance measurement in subsequent years.

This performance measurement framework will supplement the standard economic indicators and reports produced by the Department of Finance. It will be used to specifically inform our progress on this economic plan for New Brunswick.

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5. Conclusion

Growing Together outlines the plan to build a prosperous, sustainable New Brunswick.

This plan is the first in a series of documents that will make up our province’s overall plan to achieve economic renewal and sustainable economic growth throughout New Brunswick. In addition to this strategy are detailed strategies for each of the six priority sectors.

We know that our economy depends upon a strong, culture of collaboration between all partners and stakeholders – business, governments, academia, communities and labour. A common focus and commitment to action is critical to success as we move forward to… Growing Together.