Moncton for business—it just makes sense Moncton INFORMATION SUPPLEMENT Ready-made Daniel St louis for business development Moncton’s array of industrial locations, strategic position, and skilled workforce present a compelling option to investors and expansion-ready partners With a quick swipe of her index finder, a McKesson Canada employee scans a product label, double-checks it against her master list, and puts the desired order and quantities of items in the “tote” that continues on its way through the company’s new distribution centre in Moncton. Akin to a shopping cart, the tote will be filled with everything from prescriptions and over-the-counter drugs to shampoo, toothpaste, and first-aid supplies. The contents will be carefully packaged, then shipped to one of 450 regular customers, usually by 12 p.m. the day after the order was placed. McKesson Canada’s new 176,000-square-foot facility in Moncton is a $25-million state-of-the-art distribution centre that has become the company’s base for serving its customers in the Maritimes. Smaller operations in Moncton and Halifax were recently consolidated under one roof, with all 50 employees from the previous Moncton facility retained and 40 new ones hired. Richard Brennan, McKesson Canada’s general manager for the Atlantic region, says Moncton was a logical choice. “It’s very centralized from a distribution point of view,” he www.moncton4business.com 1 Sandor Fizli Richard Brennan says, adding that the city’s skilled workforce was also a major factor. The McKesson Canada story is an apt example for telling Moncton’s story. As recently as a few weeks ago, Kevin Silliker, the City of Moncton’s director of economic development, had two more successful meetings with new investors wanting to bring business to or expand in the Moncton area. Silliker speaks regularly with talented individuals who have chosen to move to Moncton, attracted not only by the area’s quality of life but also by its diversified economy, which enables steady growth across all sectors year over year. “Our value proposition is clearly our balanced opportunities,” he says. From customer-service centres to manufacturing, regional distribution, retail, and transportation, no single sector represents more than 12% of Moncton’s overall economy. The 2011 census data reveals that Moncton is the fifth fastest-growing census metropolitan area (CMA) in Canada, and the fastest east of Saskatoon. “Companies notice it when your city grows so fast,” says Silliker. “It helps attract even more people and talent.” Moncton’s central location makes it the hub of the Maritimes and gives it tremendous market penetration across all of Atlantic Canada and the Eastern Seaboard of the U.S. Add to that mix a loyal and bilingual workforce with a low turnover rate and you have more of the reasons behind Moncton’s success and steady growth. When Moncton Mayor George LeBlanc chats about his hometown, he uses such terms as vibrant, prosperous, and resilient. “Moncton is known for having a can-do attitude and punching above our weight class,” he says, pointing to the city’s reputation for hosting world-class events in sports or entertainment, such as outdoor concerts by The Rolling Stones and U2, the 2010 IAAF World Junior Track Championships, and two CFL games. Both LeBlanc and Silliker insist the downtown area will play a major role in the city’s future growth. In the plans is a multi-use sports centre, which will anchor the downtown’s redevelopment. The city is also working to attract new residential developments to its core, another essential factor for attracting more people and businesses. Major infrastructure improvements include the future construction of an extended runway at the Greater Moncton International Airport. Other key economic sectors include health care and life sciences, transportation and logistics, ICT, retail, manufacturing, financial, insurance, and real estate. Enterprise Greater Moncton, the area’s community economic development agency, will focus on those sectors to promote greater prosperity. “We want to lead New Brunswick in both population and economic growth over the next five years,” says John Thompson, the CEO of Enterprise Greater Moncton. “To achieve this vision, we need more people and businesses and to be more competitive, innovative, and focused.” The agency’s strategic plan focuses on ensuring that the area has the labour capacity to support economic growth. It wants Greater Moncton to remain one of the Caledonia Industrial Estates Advanced manufacturing From a modest start-up in a local garage more than 20 years ago, Spielo International is now an important supplier to the global gaming industry, serving nearly 1,500 customers on five continents. Initially created to manufacture video lottery terminals (VLTs), the company now designs, manufactures, and distributes cabinets, games, central systems, and associated software not only for VLTs but also for slot machines, online gaming, and sport betting. “SPIELO International was founded in Moncton, and the city continues to be our global manufacturing headquarters for a number of reasons,” says Robin Drummond, the international vice-president and general manager of public gaming. “The cost of doing business here is low. We benefit from an educated workforce, the gaming-technology business cluster is growing exponentially and attracting knowledge workers to the region, and it’s only a short flight to major international airport hubs. We’ve been supported by all levels of government and government agencies, and we’ve mutually benefitted from government support in activities such as R&D.” Spielo International has worked with one of its local customers, Atlantic Lottery Corp., and the provincial government and community colleges to create a post-secondary training program tailored to industry to address the company’s human resource needs. “We’re also proud to be among the largest advanced IT-sector employers in the province, providing well-paying careers to more than 450 employees at our Moncton location,” says Drummond. “In our 20-plus years of operation, we have continued to indirectly spur growth by supporting local suppliers and partners, which has created a gaming-technology business cluster in our region.” — M.L. 2 www.moncton4business.com Moncton Industrial Park Location, location With a history of hauling hay and gravel going back to the 1930s, Armour Transportation Systems has grown from a small one-man operation to servicing all of Canada, the United States, Mexico, and beyond through strategic alliances with other major carriers. Still family owned and operated from its headquarters in Moncton Industrial Park, Armour is one of Canada’s leading transportation specialists with more than 1,700 employees and 3,800 pieces of equipment. Since Moncton is an important hub in Atlantic Canada, it’s ideally situated close to both U.S. and Canadian markets. “The location is perfect for Armour Transportation Systems,” says CEO Wesley Armour. “Our company uses CN intermodal services, and we continue to grow with this service.” From trucking to intermodal and port-related services, Armour’s broad range of services also includes ocean containers, warehousing, courier, and logistics planning. Many of its customers are located in the Moncton Industrial Park, and the region’s transportation system provides easy access to their markets. “Moncton is an excellent city to be located in because our municipal government understands and supports transportation and warehousing,” says Armour. — M.L. best places to do business in North America and will work at increasing the region’s competitiveness by stimulating productivity, process improvement, and innovation. Thompson sees Moncton’s three industrial parks as an essential piece of the puzzle that complements his agency’s efforts. When working to attract new businesses and investors, he always takes them to see the parks. The expansion of Caledonia Industrial Estate and the new Moncton Industrial Park West provides a host of new opportunities, while Moncton Industrial Park continues to service its existing clientele. McKesson Canada’s new facility will provide more flexibility and efficiency as its customers, primarily pharmacies, hospitals, and clinics, can be reached within a few hours. The distribution centre also has space to expand. Leading a tour of the building, Richard Brennan opens the door to a large empty space that will eventually be used as a repackaging operation. Today McKesson Canada fills out customers’ orders in bulk or large packages, but it will one day be able to fill them out in single-unit-dose format. “That’s where the future of our industry is going,” says Brennan. — Mireille LeBlanc A Walk in the Park. 655 Main St. Moncton NB E1C 1E8 Moncton’s industrial parks that is. The new iParks Moncton app for your iPad is a quick, handy guide to our industrial parks. It includes information on available sites such as size, price and services, along with information on development requirements. Simply go to the App Store and search for iParks Moncton, and then take a walk in our parks. Caledonia Industrial Estates Sandor Fizli Distribution hub F When Molson Coors considered building its first new brewery in 52 years, the beer giant chose Moncton to break ground in 2005. The city’s central location and its distribution services, as well as the region’s under-represented market, played a role in the decision to build a new facility in Moncton’s Caledonia Industrial Estates. And last but not least, the superior quality of the city’s water supply became an essential ingredient in the 37 million pints of Coors Light and Canadian brands of beer produced annually in Moncton. “Moncton and the Maritime provinces represented one of the only developing markets that existed in the country,” says brewery manager Tim Farley. “Location-wise, we needed to have many services, such as distribution. Moncton is one of the leading distribution hubs. The local municipality was also eager to do business with us.” Another factor at play was the talented workforce Molson Coors found in Moncton; the company hired its 51 employees locally. “It wasn’t just the Maritime hospitality that was attractive,” says Farley. “The level of skill also drew us here.” Farley’s pride in his team and their accomplishments is evident as he walks around the brewery, halting often to highlight one of the many boards peppering the office walls and showcasing various successes and initiatives. A tour wouldn’t be complete without stopping near the large stainless-steel tanks holding the precious fermenting liquid. The sweet smell of mash (malted barley after the milling process) permeates the air—a promise of what’s to come at the end of the three-week brewing process. — M.L. or over 30 years we’ve been accessorizing cars, trucks, vans and fleet vehicles with the right accessories, while offering superior service and selection. It`s our job to take the guesswork and the intimidation out of buying the correct accessories for whatever vehicle you`re driving. We`ll help you find everything from wipers that actually wipe to the right hitch for your vehicle. And if you`re not exactly sure what you`re looking for, chances are we can help you find that too. 31 Locations to Serve You Cargo Management Lifestyle 200 Horsman Road, Moncton, NB E1E 0E8 www.actioncarandtruck.com • (800) 565-2233 The Right Customer Experience Take a look at Vehicle Protection today. www.moncton4business.com 5 Clint Dockree Open for business Moncton’s three industrial parks are open for business. With prime locations along highways and main thoroughfares, each offers something unique to existing customers and new prospects Five-thousand-pound rolls of corrugated paper are piled three high, waiting to be transformed into boxes. As the machinery unwinds the giant rolls, they are successively glued, shaped, and cut to emerge as thousands of flat individual pieces that are easily folded into custom cardboard boxes of all sizes. In 1960, Norampac-Moncton (formerly Domtar Packaging) was the first company to be established in the then newly built Moncton Industrial Park. A half-century and two expansions later, the manufacturer of corrugated packaging containers still operates out of the same location and services clients throughout Atlantic Canada and northeastern Maine. From beer boxes to live-seafood shipping boxes, Norampac-Moncton’s 115 employees manufacture all 8 www.moncton4business.com Sandor Fizli types of corrugated boxes. General manager Clint Dockree sees lots opportunity for growth with the company’s line of sustainable products; namely, boxes made with Norshield (an environmentally friendly water-repellent treatment, an alternative to traditional waxed boxes) and “chilltainer” (a sterile replacement for Styrofoam). Boxes covered with Norshield can be recycled, as opposed to waxed boxes that often end up in landfills. “People are more environmentally conscious than they used to be,” says Dockree. “A lot of our clients ship their products to Europe, where some countries don’t accept wax boxes and Styrofoam.” Norampac-Moncton is an enduring client among many located in one of Moncton’s three industrial parks. Among them are large distribution centres with familiar names such as Shoppers Drug Mart, Loblaw Atlantic, Kent Building Supplies, Kraft Canada, NAPA, Uniselect, and Chep Canada, as well as such manufacturing companies as Molson Coors, Irving Personal Care, and Royal Doors. The list is long, but all have one thing in common: They have found a thriving business environment in Moncton. Go west for expansion “Our lifeblood is business,” says Peter Belliveau, the general manager of Moncton Industrial Development (MID), a non-profit corporation that has owned and operated Moncton’s industrial parks since 1959. With low business costs and the region’s central location advantage, Moncton industrial parks have fostered a favourable business environment, accentuated by the area’s skilled bilingual workforce and low turnover rates. Moncton’s newest industrial location, Moncton Industrial Park West, recently opened its door to future developments as Phase 1 spans 120 acres along the busy Berry Mills Road. It offers an ideal location, close to the TransCanada Highway and Wheeler Boulevard, for easy access to and from residential areas. It’s located west of the original Moncton Industrial Park. Recently, auto parts distributor Action Car and Truck Accessories built a new facility in this park, and Belliveau says at least three more projects will be under construction this year. Belliveau knows this added location will add a new layer of opportunities to Moncton’s offerings. “It’s like a car dealer who can sell a model in two or three colors,” he says, “but he can sell more if there are more models in a variety of colors.” The long-term vision for the park is to attract small to medium-size manufacturers, as well as commercial operations with a retail component, such as Action Car and Truck Accessories. With 640 acres in total, this new park offers plenty of opportuni- Moncton Industrial Park West Warehouse and retail On a prime location at the corner of Berry Mills Road and the brandnew Horsman Road sits Action Car and Truck Accessories, the first tenant in Moncton’s newest industrial park. Company president John Chamberlaine says he couldn’t pass up the opportunity to combine his three facilities under one roof in Moncton Industrial Park West. “The location was one factor, as it’s close to both Wheeler Boulevard and the TransCanada Highway and located in a fast-growing area,” says Chamberlaine. He adds that the layout of the new park was also attractive, with its fully serviced roads awaiting future tenants. Moncton’s central location in Atlantic Canada was a factor in the growth of this local company, which Chamberlaine founded in 1980 to import and assemble truck shells from the U.S. Today Action Car and Truck Accessories has 200 employees and 31 locations, from Newfoundland to Winnipeg, and it brands itself as Canada’s leading truck cap and accessory distributor. An after-market accessories distributor and retailer, it offers pretty much anything that can adorn a vehicle, from vent visors to tires, toolboxes, trailer hitches, and even snowplows. It also carries trailers, offers custom commercial caps for trucks, and outfits vans with shelves and partitions. Action’s new 75,000-square-foot building consolidates under one roof its corporate office, a 55,000-square-foot warehouse, and a retail store that is a prime example of the company’s rebranding efforts over the last year. Spacious windows let natural light flow into the retail space, where consumers can easily find products under category banners such as commercial, cargo management, and vehicle protection. Marketing manager Jason Wells explains that the rebranding was necessary because some of the company’s Ontario locations were operating under the name Action Van and Truck World, while Atlantic Canada operations were known as Action Truck Caps and Accessories. “It was challenging to operate with two different names, and our company had since evolved so we found ourselves catering to car owners as well as truck and van owners,” he says. “Our name now better represents who we are today.” —M.L. www.moncton4business.com 9 The “original” is thriving: Nearby Moncton Industrial Park— the original, as it’s known at MID—has been in operation since the early 1960s on the west side of the city ties for a long-term future. From LED lights to careful storm-water management, Moncton Industrial Park West also strives to reduce its environmental impact. Its new guidelines include environmental requirements, and companies will be encouraged to incorporate additional environmental benefits, whether in their landscaping, building materials, or building operations and practices, in order to receive a performance rebate on the purchase price of the property. The “original” is thriving Nearby Moncton Industrial Park—the “original,” as it’s known at MID—has also been in operation since the early 1960s on the west side of the city. It offers a total area of 600 acres of prime industrial land with more than 260 well-established companies. Adjacent to CN’s railyard and intermodal system, it also has direct controlled access to the TransCanada Highway and is next to the four-lane Wheeler Boulevard, which provides quick access to the Greater Moncton International Airport. A mature park, it still offers leasing or buying opportunities. It’s home to many long-time residents, including Norampac and ALLSCO Windows and Doors. From its manufacturing operations, ALLSCO supplies Atlantic Canada’s building contractors with locally manufactured windows and doors known for their high standards of quality. Founded by Don Lahanky in 1976, it was acquired in 2010 by the Atis Group, one of Canada’s largest manufacturers of doors and windows. Atlantic Commercial Properties is the single largest property owner in the park with 10 properties offering leasing opportunities that range from 2,000 to 100,000 square feet. “And everything in between,” says property manager, Natalie Geneau, who adds it has a wide range of tenants—from small local entrepreneurs to large national corporations. “Moncton is a great location from a logistic point of view. A lot of tenants are in warehousing and choose Moncton as their home base because they can ship everywhere.” Moncton Industrial Park: “The Original” Room to grow The smell of freshly baked bread greets you when the doors separating Fancy Pokket Corporation’s office space from its production floor open. A gleaming stainless-steel production line draws the eye to hundreds of Greek pita breads emerging from the oven like soldiers on parade. Company president Mike Timani gingerly grabs one, the bread still swollen from the heat before it makes it way up the conveyor belt to cool. While touring the plant, Timani explains the manufacturing process for pitas, bagels, tortillas, panini, and other baked goods. He stops for a second to admire golf-size balls of dough that are being dropped onto a conveyor belt before being pressed down into nine-inch tortillas. One line produces 12,000 bagels an hour while another makes 14,000 pitas an hour; the tortilla line makes 21,000 loaves an hour. This highly automated process is a far cry from Fancy Pokket’s debut in 1989, when Timani and three employees were producing pitas one at a time in a 1,000-square-foot facility. Twentythree years and five expansions later (the latest one this spring added 7,000 square feet for a sanitation room and freezer space), Fancy Pokket is well established in the Atlantic Canadian and Quebec markets and also sells its products in Ontario. Its central location in Moncton made it ideal to service those markets from a transportation point of view. Currently, the 43,000-square-foot plant only works at 30% capacity with 53 employees. Timani would like to increase capacity, eventually add another shift, and double his employees in the next three to four years. He’s looking into expanding to the U.S. market by the end of next year and, to overcome the “buy American” movement, plans to open a plant in the southern U.S. in a few years. That facility would specialize in different products, such as gluten-free baked goods, and its presence in the American market would pave the way for Fancy Pokket’s other products made in Moncton. “I’m a really high risk taker, but they’re always calculated risks,” says Timani. “If you don’t take risks and if you aren’t big enough, you won’t survive.” —M.L. 10 www.moncton4business.com Engineering Municipal Growth Civil. Mechanical. Electrical. Caledonia is still expanding Known as the hub of Atlantic Canada for its central location, Moncton has a rich past as a railroad city. Today it has a strong transportation industry with the presence of leading companies such as Armour Transportation Systems and Keltic Logistics & Transportation. From a modest beginning with only five employees in 1997, Keltic is now a full-service, assetbased, transportation solutions provider with almost 200 employees. Four years ago, Keltic moved to its current location in Caledonia Industrial Estates, a stone’s throw away from the TransCanada Highway. From the carefully manicured landscape to comfortable amenities for the drivers, this 40,000-square-foot building was carefully designed to meet all of Keltic’s needs. The company also acquired an additional six acres of land on the other side of the road to accommodate future growth. Thousands of vehicles drive by the Keltic facility every day, while the company’s drivers can quickly access the highway to haul merchandise all over North America. “Moncton is a great spot,” says Mike Clements, Keltic’s vice-president of corporate operations. “With a bilingual workforce, we have access to good employees with a high retention rate.” With five acres of land for current use, plus the additional six for future growth, Keltic personifies one of the main advantages of choosing Caledonia Industrial Estates. “Because of the scale of land available, we could allow large lots, and that’s why Caledonia is such a strong park for large distribution centres,” says Belliveau. “At the same time, even though it’s on the north side of the city and next to the highway, it’s still easily accessible to the community. We built Harrisville Boulevard in 1998 to give quick alternative access to the airport and downtown.” Currently, Caledonia has a sizable inventory of available sites with 260 acres of serviced land ready for sale. From the well-established Moncton Industrial Park to the new opportunities in Moncton Industrial Park West and Caledonia Industrial Estates, Moncton has plenty to offer resident and expanding businesses. — M.L. A well developed Industrial park can help drive economic growth in a region. Crandall Engineering is proud to have designed and managed the Moncton, Moncton West and Caledonia Industrial Parks. Look to Crandall as your one-stop shop for engineering solutions. Toll Free: 1-866-857-2777 1077 St. George Blvd. Suite 400 Moncton, NB E1E 4C9 • (506) 857-2777 For more on Crandall Engineering, contact us today or visit us online at: 133 Prince William St. Suite 703 Saint John, NB E2L 2B5 • (506) 693-5893 www.crandallengineering.ca SHAPING LIVES GENIVAR prides itself on the fact that its Land Development Services are managed by people living in the communities that benefit from their work. Our locally managed approach gives our clients peace of mind that they will be taken care of from project start to finish, while enjoying the convenience of access to additional expertise within the network of GENIVAR offices across Canada. We offer a full range of related services including: • Engineering • Surveying • Planning • Environmental Services • Project Management • Architectural Services NS Halifax | Dartmouth NB Moncton | Saint John | Fredericton PE Summerside | Charlottetown NL St. John’s WWW.GENIVAR.COM Shown here is Steve, one of our valued employees of our Surveying department in our Moncton, NB office. www.moncton4business.com 11 Growth strategies Proximity and space makes Caledonia Industrial Estates an easy investment decision While approaching Moncton on the TransCanada Highway, the road curves ever so slightly, as if to better showcase Al-Pack Enterprises’s manufacturing-supplies facility in Caledonia Industrial Estates. Al-Pack president Louis LeBlanc admits that highway frontage and visibility were factors in the company’s decision to build its plant there five years ago. Not only did highway proximity facilitate quicker shipping of products to clients but the six-acre piece of land also gave them space for future expansions. The 43,000-square-foot plant is a far cry from Al-Pack’s modest debut in Vernon Allen’s living room, from which Allen incorporated the company with LeBlanc in 1995. Before that, they were both working in sales in the transportation industry when they saw an opportunity for manufacturing packaging supplies. What started as a two-man operation now employs 75 people full-time. From shipping boxes of all sizes to foam inserts for those boxes, Al-Pack produces or distributes everything needed for shipping goods, including pallets, bubble wrap, and strapping supplies. In 1999 another opportunity arose when the City of Moncton introduced the household-waste separation program, and Al-Pack started producing green and blue plastic bags. “We grew and diversified the company by listening to our customers’ needs,” says Allen, the president of Al-Pack Holdings. “We now distribute mainly in Atlantic Canada, but we also do private labels for clients across Canada and our compostable bags are shipped to the U.S.” In addition to the plant in Moncton, Al-Pack has an office and a warehouse in St. John’s, as well as an office and a warehouse in Guelph, Ont. In Moncton, the 24/7 production line of plastic bags which uses a 50-foottall extruder is a sight to behold. Oil-based resin pellets resembling small white hailstones are mixed with concentrated colour pellets and heated until the combination liquefies. Air is injected to create a bubble in the centre of the plastic sheet that then goes through a series of rollers to iron out the wrinkles as it cools. Logos are printed, then the sheet is cut and folded according to the type of bags being produced. Allen looks at the extruder with proprietary pride as he explains the process, adding that there are future plans in the works. “The building has been designed so we can open this back wall when needed,” he says. “We already have plans for expansion starting in 2014.” —M.L 12 www.moncton4business.com 25 professional locations to fit your needs warehouse or office space. we’ve got your location. Contact us for competitive, flexible (and friendly) leasing opportunities. HEAD OFFICE 270 Baig Blvd., Suite A16 Moncton, NB | P 506.853.8000 | E [email protected] www.acpleasing.com S&T - TIME PHOTO There’s something Ça bouge ici! En voici la preuve... happening here... but don’t just take our word for it! Most cost competitive city for business in Canada (KPMG) Most polite and honest city in Canada (Reader’s Digest) Fastest growing CMA east of Saskatoon and 5th in Canada overall (2011 Census) Ville la plus concurrentielle en affaires au Canada (KPMG) Ville la plus polie et honnête au Canada (Reader’s Digest) RMR ayant la croissance la plus rapide à l’est de Saskatoon, et au 5e rang à l’échelle du pays (Recensement 2011) PHOTO - CANADA SOCCER Economic Development and Events Développement économique et Événements Tel./Tél. : 506 877-7700 moncton.ca I PT SCR R AN
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