Kapuskasing Economic Development Strategy

Transcription

1 Kapuskasing Economic Development Strategy Prepared by:

2 Table of Contents The Background... 1 Context... 1 What This Strategy is About... 1 Key Themes... 2 What the Numbers Say... 3 A Brief Statistical Overview of Kapuskasing... 3 What People Value about Kapuskasing... 4 SWOT Summary: Community Consultation... 5 Guiding Principles (Future Directions)... 8 Kapuskasing s Economic Development Strategy... 9

3 The Background Context Kapuskasing is truly a full serviced community that enjoys a great quality of life. Although the community is well positioned to benefit from future growth and development in the north, the town of Kapuskasing still relies heavily on the economic benefits provided by the forestry industry, and has not been sheltered from the hardships and uncertainties caused by the restructuring and downsizing of local forestry operations. Even though Kapuskasing is becoming somewhat diversified with growth in the mining and renewable energy generation sectors, the town s largest employer continues to be the Tembec mill. While still a major operation, the numbers of workers employed by Tembec have been drastically reduced in recent years, and the overall uncertainty of the forestry sector looms constantly in Kapuskasing. In addition, the Agrium mine is scheduled to cease operations in the near future (2013/2014), leading to a loss of approximately 300 direct and indirect local jobs. As a whole, Kapuskasing would greatly benefit from a more diverse economy to provide ongoing stability to the town and ensure that it is not so heavily reliant on a few major employers. Kapuskasing s population is getting older and, as such, topics such as retirement, succession planning, and youth retention are all significant issues for the community. The future economic health of Kapuskasing will rely in large part on the successful attraction of qualified human resources (be it past residents who have left to pursue school or other opportunities, or new residents) and the education of youth with respect to opportunities that do exist in town before they move elsewhere. In addition, Kapuskasing is often perceived as being a small town with little to do and few economic opportunities. The Town must focus on changing this perception to attract new businesses and talented youth to eventually replace the aging workforce, as well as to ensure that the current residential base remains in Kapuskasing. What This Strategy is About The community leaders in Kapuskasing appreciate the town s close relationship to local industries based on natural resources such as forestry and value-added wood products, mining and power-energy generation. However, they are also very aware of the town s economic volatility and the need to add diversity within their local and regional economies. As a result, the Kapuskasing Economic Development Corporation (KEDC), in partnership with the Town of Kapuskasing and other community leaders, has been taking the necessary steps to examine the local economy and look at new and innovative approaches to retain and expand local industrial sectors. Considerable work has been done to date, and the development of an Economic Development Strategy, which will support sustainable economic growth, stimulate diversification, and complement the Growth Plan for Northern Ontario objective to stimulate growth towards a new economy, is the next step. McSweeney & Associates 1

4 Key Themes In an attempt to strengthen Kapuskasing s existing industrial base, while at the same time adding diversity to the local economy, the following themes have been addressed in Kapuskasing s Economic Development Strategy: Labour Force Development and Youth Retention and Attraction Focus on Retaining and Expanding Traditional Industries: o Value-added Wood Processing o Mining o Renewable Energy Production o Tourism o Agriculture Emerging Sectors: o Entrepreneurship o Translation Services o Regional Hub for Health Care, Care of the Elderly o Collaborative economic development opportunities with the First Nations community Community Infrastructure and Quality of Life o Community Strategy o Long-range Financial Plan o Official Plan o Business Park Plan McSweeney & Associates 2

5 What the Numbers Say A Brief Statistical Overview of Kapuskasing Kapuskasing s population is decreasing. Kapuskasing experienced an approximate 9% decrease in its population between 2001 and 2010, moving from 9,238 residents to 8,654. The population of Kapuskasing is getting older. Between 2001 and 2010, the age structure in Kapuskasing shifted to a larger proportion of the population aged 45 and older. Many youth are leaving, most likely to pursue their education and career elsewhere. The majority of Kapuskasing residents are bilingual. Over 60% of Kapuskasing residents are bilingual (English and French). This is a desirable attribute for prospective employers. Kapuskasing is educated. The percentage of Kapuskasing residents who have a high school certificate, post-secondary diploma or degree is high (over 80%), yet this is still slightly lower than the Ontario average. Incomes in Kapuskasing are lower than in Ontario, but are steadily increasing. Average and median incomes in Kapuskasing are increasing, but overall are generally lower than the Ontario average. This is a competitive advantage for Kapuskasing when attracting employers and foreign direct investment. The average value of dwellings in Kapuskasing is less than a third of the provincial average. The average cost of dwellings in Kapuskasing is just over $100,000, whereas the average in Timmins is $146,869, in Cochrane is $136,003, and the provincial average is approximately $370,000. This provides Kapuskasing with a competitive advantage in attracting new investment and workers. Competitive real estate prices contribute to the community s quality of life, as lower home prices help retain residents and encourage young families to settle in the community. Almost all Kapuskasing residents work in Kapuskasing. Only 2.5% of the workers living in Kapuskasing work outside of Kapuskasing, and the majority of those who do work outside of Kapuskasing work in Moonbeam. Approximately one-fifth of Kapuskasing s workforce lives elsewhere. Approximately 18.1% of workers commute into Kapuskasing and live most notably in Moonbeam, Val Rita-Harty and Fauquier-Strickland. Kapuskasing has strong employment sectors. Based on the number of employees working in each sector, the top three employments sectors in Kapuskasing are manufacturing, health care and social assistance, and retail trade. McSweeney & Associates 3

6 What People Value about Kapuskasing Based on an extensive community consultation, the following values were identified by residents in Kapuskasing: Quality of Life Kapuskasing residents value their high quality of life. Many have left the town to obtain education and employment elsewhere, but if they have the opportunity to return to Kapuskasing, they quickly develop an appreciation for the benefits and advantages offered through living and working in Kapuskasing. Often, these individuals have more time to spend with family and participate in activities they enjoy than they would if they lived in an urban centre. Natural Environment and Recreational Activities Kapuskasing is located in the midst of vast natural spaces which offer excellent and abundant outdoor recreation opportunities such as hiking, fishing, snowmobiling, etc. Small Community Atmosphere Kapuskasing residents appreciate the area s small-town feel. Many value being known wherever they go, the safe and accepting nature of the town, and the fact that residents and organizations work well together. McSweeney & Associates 4

7 SWOT Summary: Community Consultation The information below summarizes the findings of the SWOT analysis which was compiled from input obtained during the public consultation process. Please note that the responses were provided by the community when asked specific questions, and are not listed in any specific order. What are Kapuskasing s greatest economic strengths? Bilingualism Quality of life Community amenities Cost of living Education Good employment services Natural resources Location What are Kapuskasing s greatest economic weaknesses? Out-migration of youth and young families Lack of diverse housing Lack of diversification in the economy Distance to markets Lack of community support for small businesses Lack of qualified human resources (especially youth) Town does not promote itself effectively Health care Scared of change people are afraid to take risks Lacks ready-to-go industrial land Population decreasing Relatively high municipal taxes/utility costs What are the economic opportunities you think Kapuskasing should take advantage of? Diversify the economy o Look at opportunities in different industries (mining/energy/lumber/etc.) o Translation hub o Alternative energy production o Grow produce locally o Conduct a Local Consumer Survey McSweeney & Associates 5

8 o Provide other types of opportunities for mining workers in a few years (when Agrium leaves) o Ensure the community is prepared to grow the mining sector (need to stay connected with the industry) o Conduct a Business Retention and Expansion exercise to identify local business issues o Leverage the use of electronic communications (internet, etc.) to create jobs o Stimulate creation of micro businesses (i.e. home-based) Have turn-key/ready-to-go and shovel-ready industrial lands Attract qualified human resources Youth retention Seniors/elderly Provision of health care and community services Promotion strategy Attract residents from neighbouring communities (hub/regional economies) Immigrants to help grow Kapuskasing s population and labour force Strengthen tourism opportunities Describe the type of industries you envision Kapuskasing to have in 5 to 10 years. Diversified industries o Many small industries o Technology-based o Other opportunities with wood o Renewable Energy Hub o Some mining operations o Strong service sector (i.e. Highway 11 retail, specialized contractors) o Satellite community for workers in remote mining locations More professional jobs o Away from manufacturing o More self-employed o Government o Work from home o Kapuskasing is the capital of: Translation Immersion (French/English) Provide incubator space Business Support Centre More services for seniors Developers involved with helping to provide amenities McSweeney & Associates 6

9 What could prevent Kapuskasing from attracting the industries you envision? Lack of transportation (connection to other hubs) o Decline in transportation infrastructure (i.e. rail) o Loss of the airport Long distances to markets Start-up costs (basic infrastructure costs) Lack of qualified human resources/workforce Decreasing population Perception that there are no opportunities in Kapuskasing Are there any other high priority issues you feel should be addressed in planning for Kapuskasing s future? Reverse out-migration of youth Need to forecast labour requirements Accelerate development of young generation of entrepreneurs Education of youth Diversified housing Market Kapuskasing more effectively More health professionals Keep quality of life Maintain commitment to volunteerism/community Develop an industrial park near Hwy 11 McSweeney & Associates 7

10 Guiding Principles (Future Directions) Kapuskasing will truly be the Model Town of the North by: Retaining and attracting youth and a skilled, talented and professional workforce; Supporting its traditional industries, such as forestry and value-added wood processing, mining, renewable energy, tourism and agriculture; Growing its emerging industrial sectors, including entrepreneurship, translation services, health care and care of the elderly, and First Nations collaborative economic development opportunities; and Providing an excellent quality of life for its residents and visitors. McSweeney & Associates 8

11 Kapuskasing s Economic Development Strategy Based on what we heard from the Kapuskasing community, the following strategic actions are recommended. 1. Youth Retention and Attraction and Labour Force Development to become a municipal priority. Strategy: To develop, retain and attract Kapuskasing s most valuable exported resource its talented people. Why this is important: The population of Kapuskasing has been steadily declining over the past decades. As the youth continue to migrate out and baby-boomers retire, there will an ever-growing void in Kapuskasing s labour pool. Many industries will be hard pressed to fill vacancies and to find talented and skilled workers. As such, Kapuskasing must act now to aggressively plan for the future retention and attraction of skilled labour. What we are trying to achieve: Provide Kapuskasing with the required tools and creativity to build a strong labour force (required to assist in the stability and growth of existing industries and businesses, while also a requirement of any new industrial investments). Ensure that Kapuskasing s youth remain or return to Kapuskasing to live and work. Maintain the residential critical mass that Kapuskasing currently enjoys (allows for the continued growth and development of Kapuskasing as a fully-serviced community). Key Actions: 1. Develop a Community Labour Force Succession Plan a) Partner with local schools (primary, secondary and post-secondary), industries and businesses, as well as Provincial and Federal stakeholders to develop a community wide Labour Force Succession Plan. b) The Succession Plan will be used to first connect with local industries/businesses to determine the types of workers and skilled professionals that will be needed in Kapuskasing within the next 5-10 years. The next step would be to identify those youth who are most interested and best suited to fill these labour gaps (include youth either currently living in Kapuskasing or having moved away). McSweeney & Associates 9

12 c) The main idea is to continually educate students and parents (beginning in primary school), youth and other talented individuals about the future career opportunities in Kapuskasing, as well as the great quality of life they currently enjoy while living in Kapuskasing. In addition, by connecting local businesses to potential employees, the KEDC will get a better understanding of the current and future career opportunities in Kapuskasing, as well as the challenges associated with retaining and attracting a quality labour force. 2. Expand the KEDC Youth Committee to make Retention and Attraction of Youth a priority of the KEDC and the Town of Kapuskasing. a) The expanded Committee to be comprised of representatives from: Senior politicians and administration from the Town of Kapuskasing; The Northern Ontario Youth Entrepreneurship Initiative; Principals from the local schools (primary, secondary and postsecondary); Representatives from the business community; Young individuals who have chosen to either stay or have moved back to Kapuskasing; and Youth who are currently away either working or studying in communities outside of Kapuskasing. b) The main role of the KEDC Youth Committee is to develop and implement the Youth Retention and Attraction Strategy. 3. Develop a Kapuskasing Youth Retention and Attraction Strategy. a) Components of the strategy to include: The development of a database of all youth in the town of Kapuskasing as well as those youth who have moved away to either work or go to school; A local education and awareness program outlining the need to retain and attract youth focus on the primary, secondary and postsecondary schools; A communications and marketing strategy (including social media tools) to promote Kapuskasing as a great place to live with an enviable quality of life, in addition to meaningful employment opportunities; An aggressive outreach program (including social media tools) aimed at connecting with those youth and young skilled workers who have moved away from Kapuskasing. The purpose of this outreach is to provide information on current and future employment prospects in Kapuskasing; An immigration attraction component to attract immigrant youth and young families to Kapuskasing; and A program to communicate and celebrate the return, and introduction of, youth and young families to Kapuskasing. McSweeney & Associates 10

13 2. Support Kapuskasing s traditional industries Strategy: Provide the necessary community support to strengthen and grow those industrial sectors which have traditionally been Kapuskasing s economic engines/drivers. Why this is important: Kapuskasing has a strong, but limited, core of successful industries. It is essential that efforts be made to ensure these sectors remain sustainable and viable contributors to Kapuskasing s overall economy. What we are trying to achieve: Stabilize and strengthen Kapuskasing s traditional industries as the current foundation of Kapuskasing s local economy. Key Actions: 1. Value-added Wood Processing a) Undertake an update of the Commercial Opportunities for Underutilized Wood Species study to understand local and regional opportunities related to all aspects of the regional supply of wood fibre (study to also include the economic feasibility of the opportunities identified). b) Work with Tembec and other regional wood licence holders to determine their wood fibre needs and what types of available wood fibre they do not require (hard/soft/waste woods). Use this information in value-added wood products marketing, promotion and investment material. c) Work with Tembec in order to understand exactly what is needed to strengthen or maintain a viable and sustainable operation in Kapuskasing (i.e. access to wood basket, local seasonal and full-time labour, reduced transportation costs, reduced energy costs, etc.), and either assist in directly fulfilling their needs or lobby on their behalf to ensure that their operational needs are met. d) Promote value-added opportunities created as a result of having the mill in Kapuskasing by: Developing an inventory of the spin-off opportunities that could take advantage of being co-located with Tembec or utilizing some of their residual or by-products listed above. Developing an inventory of the residual and waste materials or other by-products created as a result of Tembec s operations. Use the above information as part of an investment attraction program created for Kapuskasing and to promote investment opportunities in Kapuskasing. McSweeney & Associates 11

14 2. Mining a) Support the Human Resource efforts of Agrium as they move towards shutting down their local operations (between the 2rd quarter of 2013 and the 4th quarter of 2014). The aim is to assist in the retention and transition of Kapuskasing s local mining workforce to other local/regional mining operations (should be tied into the Community Labour Force Succession Plan). b) Work with Agrium and other local/regional mining operations to create an inventory of all local labour and companies that currently support the mining industry. This would allow the KEDC to match local talent and mining services with other mining opportunities that arise regionally. This may also assist in helping to retain some of the local mining expertise that Kapuskasing has built up due to the Agrium mining operation (should be tied into the Community Labour Force Succession Plan). c) Partner with regional stakeholders to undertake Phase 2 of the Industrial Mineral Feasibility Study. d) As identified in Phase 1 of the Industrial Mineral Feasibility Study, there are potential local opportunities in Clays, Kaolin and Rare Earth Elements. It is essential that the Town of Kapuskasing and the KEDC stay informed, up-todate and supportive of developments pertaining to these minerals. 3. Renewable Energy a) Develop a working relationship with the First Nations communities to explore additional opportunities in solar and hydro-electric generation. b) The KEDC, in partnership with the Town of Kapuskasing and other regional partners, should undertake a hydro-electric generation feasibility study (similar to the Industrial Mineral Feasibility Study) to determine the future generation potential of surrounding waterways, existing generation facilities and potential generation opportunities. c) The Town of Kapuskasing to remain a community partner/investor in solar and hydro-electric projects under the FIT and microfit guidelines. d) Develop an inventory of skills required, and the local talent available, to support green energy projects. If there are gaps in the labour force, work with local post-secondary facilities to develop programs to fill these gaps (should be tied into the Community Labour Force Succession Plan). e) The Town should continue to promote itself as the hub for renewable energy generation in the north by aggressively pursuing FIT and microfit opportunities, owning generation facilities, working with partners to develop renewable energy projects, etc. McSweeney & Associates 12

15 4. Tourism Business Visitors: a) Partner with local hotels and supporting agencies to survey business travelers coming to Kapuskasing to determine what services or amenities may be lacking in Kapuskasing. b) Develop a strategy to fill the identified gaps. The strategy will include priorities and opportunities relating to partnerships, business/product development and funding sources. Event Attraction/Development: a) Develop an Event Attraction/Development Strategy and Implementation Plan. Strategy to: Maximize the use of existing community assets such as (arenas, pools, fair grounds, theatres or community halls, corporate sponsors, etc.); Target events Kapuskasing could expand or attract (i.e. amateur sporting events, lumberjack festival, etc.); Identify funding partners; and Develop a community volunteer database. b) During the completion of Kapuskasing s Community Strategy (See Community Strategy pg. 17), identify those priority community assets (arenas, pools, fair grounds, theatres or community halls, etc.) which could be developed or expanded to strengthen Kapuskasing s ability to attract events. Regional Tourism Attraction Efforts: a) Work with regional and/or Northern Ontario tourism partners to promote Kapuskasing as a destination, as well as a great stop-over location for tourists traveling in the north. 5. Agriculture a) Support the efforts of the local agricultural community to promote the sale of local agricultural products. Assist by: Providing space for a local farmer s market; Promoting local agriculture products and events on the KEDC s (Town s Economic Development) website; Participate and support regional efforts to understand the feasibility and opportunities of Agriculture in Northern Ontario; Developing a regional local foods network to promote and expand the sale of local agricultural products; Looking for tourism opportunities that involve the promotion of niche agriculture products and/or farms; and Exploring opportunities to expand local agricultural offerings and products. McSweeney & Associates 13

16 3. Nurture and grow Kapuskasing s non-traditional or emerging industries to help diversify Kapuskasing s local economy. Strategy: To diversify Kapuskasing s economy by capitalizing on: Kapuskasing s creative, innovative, and bilingual community New technologies (high speed broadband, digital media); Emerging trends (growing aging population); and Positive relationships built with the local First Nations community. Why this is important: Traditionally, Kapuskasing s economic generation has been focused on industries that are centred on natural resources, are labour intensive, and are often male dominated. It is essential that Kapuskasing s future diverse economy incorporate not only traditional industries, but also explore new opportunities that are focused on technology and innovation, individual creativity, access to broadband, and provide greater balance in employment opportunities for both genders. What we are trying to achieve: Create new business and industry opportunities in order to diversify Kapuskasing s local economy. Retain and attract youth, entrepreneurs and talented individuals/professionals to Kapuskasing. Allow for individuals living in Kapuskasing to generate their own employment and job opportunities. Provide a reason for youth to either remain in, or to return to, Kapuskasing following their education. Key Actions: 1. Entrepreneurship a) The KEDC, and the Town of Kapuskasing, develop a strategic partnership with various provincial Ministries such as Economic Development and Trade (MEDT), Northern Development, Mines and Forestry (MNDMF), and Service Ontario, as well as FedNor, the North Claybelt CFDC, the local Chamber of Commerce, local schools (primary, secondary and post-secondary) and local investors to: Establish and promote a Kapuskasing entrepreneurship and creativity centre; McSweeney & Associates 14

17 Deliver how-to training seminars for small businesses and start-ups (including local youth seminars); Provide the necessary tools and infrastructure to support home-based businesses (incorporate during an Official Plan review); and Create a small business centre/hub offering affordable flex space and business support to small start-up companies (incorporate the entrepreneurship and creativity centre in the same facility as the small business hub). b) Partner with local schools and the North Claybelt CFDC (Northeastern Ontario Youth Entrepreneurship Initiative) to promote and expand the excellent youth entrepreneurship program which is currently being employed in Kapuskasing. Also include a comprehensive educational component aimed at students of all ages and their parents to help nurture the idea of entrepreneurship by consistently reinforcing the advantages of, and opportunities for, entrepreneurship in Kapuskasing (should be tied into the Community Labour Force Succession Plan). c) Recognize, promote, and celebrate small businesses and their community importance and contributions to Kapuskasing (including recognition for youth entrepreneurs). d) Undertake a modified Business Retention and Expansion (BR+E) exercise to become better acquainted with individual business needs (should be tied into the Community Labour Force Succession Plan). 2. Translation Services a) Partner with local schools (primary, secondary and post-secondary) and the North Claybelt CFDC to develop a comprehensive strategy aimed at creating a translation services hub/cluster in Kapuskasing. Strategy should include (but not be limited to): Documenting existing community and labour force assets; Educational requirements; Potential target markets; Feasibility study; and Marketing, promotion and community awareness strategy. This initiative should be tied into the Community Labour Force Succession Plan. McSweeney & Associates 15

18 3. Regional Hub for Health Care, Care of the Elderly a) Incorporate Health Care and Care of the Elderly into the KEDC as an industry sub-committee. b) Create a community health care and care of the elderly action team to assess community assets, identify collective gaps in services and infrastructure, and develop partnerships and opportunities to strengthen Kapuskasing s health care and care of the elderly sectors. The action team should be an expanded Aging at Home committee and should include all representatives from the health care and care of the elderly sectors. c) Develop and execute a local and regional marketing program promoting Kapuskasing s strength in health care and care of the elderly. The aim of the program would be to retain and attract seniors to Kapuskasing while also promoting Kapuskasing as a regional destination for health and elderly care. 4. Collaborative Economic Development Opportunities with the First Nations Community a) Although not an actual industrial sector, the Town of Kapuskasing should build better/stronger relationships with their local First Nations community in an effort to capitalize on potential collaborative economic and community development opportunities. McSweeney & Associates 16

19 4. Retaining Kapuskasing s high quality of life through the development of strategic community infrastructure. Strategy: To ensure Kapuskasing remains a place of choice for businesses and residents due to its sought after quality of life. Why this is important: Currently, Kapuskasing is truly a full service community that provides a high quality of life to its residents through the provision of basic and sought after community amenities. It is paramount that Kapuskasing remain a full service community and, as such, will need to determine what priority community assets and infrastructure will need to be developed or re-developed in the future. What we are trying to achieve: Retention of youth and young families through a great quality of life. Ensuring that Kapuskasing remains a place of choice for residents and businesses through the strategic development of community infrastructure. Development of new communication techniques and tools to elevate Kapuskasing to another level in terms of community engagement and communication. Key Actions: 1. Community Strategy a) The Town of Kapuskasing to undertake a Community Strategy to identify: A common community vision identifying how residents see Kapuskasing in the future, including an updated brand for Kapuskasing; Qualities and attributes that make Kapuskasing unique; Community assets which are paramount to Kapuskasing s future quality of life; Issues related to and infrastructure required for retention and attraction of youth and young families; Community issues and priorities that will need to be addressed when the Town s Official Plan is updated; and The best and most effective methods to communicate with local residents and businesses, including social media techniques and tools. 2. Long Range Financial Plan a) The Town of Kapuskasing to develop a long-range financial plan to implement the priority actions identified in the Community Strategy and to fund municipal infrastructure priorities. McSweeney & Associates 17

20 3. Official Plan Update a) The Town of Kapuskasing to update their Official Plan to reflect Community priorities as identified in the Community Strategy, as well as the overall changes envisioned for Kapuskasing s future. 4. Business Park Strategy a) Although the Town has several existing parcels of industrial land, not all of these properties are desirable for uses other than heavy or traditional industries. As such, the Town, in partnership with the KEDC, should develop a Business Park Strategy which lays out high priority locations for the expansion of existing businesses as well as new emerging industries. This new Strategy needs to be incorporated in the Town s existing Official Plan or considered during any update of the Town s Official Plan. McSweeney & Associates 18