Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Valuedustrial Fabrication • Value-added Wood • Value-added Food • Information and Communic
alue-added Food • Information and Communications Technology • Biosciences • Aerospace
Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Valuedustrial Fabrication • Value-added Wood • Value-added Food • Information and Communic
alue-added Food • Information and Communications Technology • Biosciences • Aerospace
Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Valuedustrial Fabrication • Value-added Wood • Value-added Food • Information and Communic
NEW BRUNSWICK
alue-added Food • Information and Communications Technology • Biosciences • Aerospace
Biosciences • Aerospace
Defence Action
• Industrial
Economicand
Development
Plan Fabrication • Value-added Wood • Valuedustrial Fabrication
• Value-added Wood • Value-added Food • Information and Communic
2012-2016
alue-added Food • Information and Communications Technology • Biosciences • Aerospace
Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Valuedustrial Fabrication • Value-added Wood • Value-added Food • Information and Communic
alue-added Food • Information and Communications Technology • Biosciences • Aerospace
Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Valuedustrial Fabrication • Value-added Wood • Value-added Food • Information and Communic
alue-added Food • Information and Communications Technology • Biosciences • Aerospace
Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Valuedustrial Fabrication • Value-added Wood • Value-added Food • Information and Communic
alue-added Food • Information and Communications Technology • Biosciences • Aerospace
Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Valuedustrial Fabrication • Value-added Wood • Value-added Food • Information and Communic
alue-added Food • Information and Communications Technology • Biosciences • Aerospace
Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Valuedustrial Fabrication • Value-added Wood • Value-added Food • Information and Communic
alue-added Food • Information and Communications Technology • Biosciences • Aerospace
Biosciences • Aerospace and Defence • Industrial Fabrication • Value-added Wood • Valuedustrial Fabrication • Value-added Wood • Value-added Food • Information and Communic
growing together
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
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
i
growing together
Message from the Premier
Early this year, I told the Economic Club of Canada a reenergized 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
3
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.
5
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.
6
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.
7
Defining our Goals
New 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 Goals
1. 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).
N.B. Productivity Relative to Canada - Business Sector
(Real Value Added per Hour Worked)
% of Canada
100
95
90
85
80
75
70
65
60
Canada =100
New Brunswick
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Statistics Canada, CANSIM Table 383-0011 Labour Productivity
Annual 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%)
8
• 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.
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.
Educational Attainment of Labour Force
40%
New Brunswick
Canada
30%
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.
20%
10%
0%
No degree,
certificate or diploma
High school
diploma
Post-secondary
University degree
certificate or diploma
Source: Statistics Canada, Labour Force Survey
9
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 businessfriendly 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 Goals
To 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.
10
Achieving our Goals
1. 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 wellpositioned 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 nonemitting 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.
11
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
12
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 Goals
The 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 Goals
1. 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.
13
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.
14
Defining our Goals
Despite 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 Goals
1. 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.
Today, some New Brunswick companies are already wellequipped 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.
60%
50%
Business Expenditures on R&D
as a percent of total R&D expenditures, 2008-2009
2008
2009
40%
30%
20%
10%
0%
New Brunswick
Ontario
Quebec
Canada
Source: Statistics Canada – Table 358-0001
15
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 valueadded 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.
16
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.
17
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.
18
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.
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.
19
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 biobased 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.
20
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.
21
Mining
Mining 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 Gas
New 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.
Forestry
The 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.
22
Agriculture
A prosperous rural New Brunswick will include globally competitive, sustainable farms, vibrant and innovative agriservice 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 Aquaculture
Our 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.
Tourism
New 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.
23
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.
24
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
25
The corporate vision and these five objectives inform and underlay our economic development strategy and economic
renewal.
Strategy Map | 2012 – 2013
Providing quality services to support a prosperous, fair and just society for New Brunswick.
VISION
2015
Citizens
A stronger economy and an enhanced quality of life, while living within our means.
“Stimulate creation
of quality jobs”
Financial
“More people
working”
“Effectively deliver
priority services”
Meet or under spend expense budget
Foster private sector
business growth
Internal
Processes
Focus and
streamline economic
development efforts
Enablers
Meet or exceed revenue
budget commitments
Improve workforce readiness
People Readiness
Develop process
improvement
competencies
“Provide value
for my tax dollars”
Attract, develop
and retain
leadership talent
Ensure access to services
that meet primary needs
Prioritize, optimize and
improve service delivery
Information Readiness
Performance Excellence Culture
Deliver relevant,
timely and quality
information
Align department
performance to
GNB Strategy
NB PUBLIC SERVICE VALUES: COMPETENCE – IMPARTIALITY – INTEGRITY – RESPECT – SERVICE
Measures of Success
New 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.
26
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
27
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
Stimulate creation of quality jobs Ratio of full-time to part-time
employment
Base year
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 lowpaying 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)
28
72.9% (francophone sector)
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
GDP
$197M (2002$)
Employment
2,000
Productivity
$98,500/worker
GDP
$690M (2002$)
Employment
10,000
Productivity
$67,970/worker
GDP
$969M (2002$)
Employment
10,600
Productivity
$91,377/worker
Industrial
Fabrication
VA Food
VA Wood
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.
29
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.
30