Fredericton Agencies Group - Economic Developers ...
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"RE"IGNITE
FREDERICTON
Fredericton Agencies Group
PREPARED BY:
Ignite Fredericton
City of Fredericton
Fredericton Chamber of Commerce
Fredericton Tourism
Downtown Fredericton Inc.
Business Fredericton North
Fredericton International Airport
Opportunities New Brunswick
St. Mary’s First Nation
MP Jenica Atwin's Office
University of New Brunswick
Atlantic Canada Opportunities Agency
A United Voice to Support
Fredericton's Business
Community
As a collaborative entity, the Fredericton Economic
Development Agencies Group will continue to
respond and advocate on behalf of all businesses and
the community. The Agencies Group plays a key role
in supporting each other’s advocacy, educational, and
programming initiatives, ensuring a united voice for
the City's commercial and economic development
initiatives.
The Fredericton Region
Agencies Group
Economic development is a long-term investment
with strategic areas of focus that build the foundation
for growth. It also requires a near-term view that
reacts to changing elements which often impact
primary goals and objectives. Our priorities are
impacted by the global COVID-19 pandemic and we
are balancing our urgent short-term initiatives with
those that are long-term and strategic in nature.
PAGE 01
WHAT BUSINESSES NEED
, Other
Info on E-commerce 1.1%
10.6%
Business Recovery Planning
27.7%
Business training
14.9%
Human Resources Support
20.2%
Support for Social Distancing Regulations
25.5%
What Businesses Told Us
At the outset of the pandemic, businesses in the Fredericton Region were
surveyed and asked: "What additional assistance would be helpful to your
business right now?"
Business recovery planning / support (including establishing new
markets)
Support for transitioning to anticipated social distancing and sanitation
regulations for business
Support relating to human resources functions (including supporting
remote, hiring, health and well-being
Business preparedness planning / training and
Information on transitioning to, or expanding e-commerce options
PAGE 02
ACTION PLAN
Critical Activities
Objectives Phase 1: Response Immediate Action
The objectives of the economic recovery plan for Operations
Fredericton are to:
Compliance
Mitigate the effects of COVID-19 on the local
economy Phase 2: Recovery Operations
Support business recovery and restore consumer Programs
confidence
Boost economic and business growth and
Opportunities
Position Fredericton's economy for recovery and
sustained growth Phase 3: Business Growth Markets
Future of Work
ADVOCACY & PROGRAMMING
EDUCATION
COMMUNICATIONS BUSINESS FORUMS
PAGE 03
RECOVERY
PHASE
RETAIL
In 2019, retail accounted for 504 businesses,
representing 8% of Fredericton businesses. i
Reopening will require assistance with advocacy and
education in preparing this sector for new regulations
and consumer demands. The Consumer Confidence
ii
Index (CCI) in Atlantic Canada fell from 90.5 to 77.7.
In addition, Statistics Canada reported a 10% drop in
iii
retail sales from February to March, 2020 alone.
ACCOMMODATION AND
FOOD SECTOR
According to Statistics Canada, the output of the
accommodation and food services sector dropped by
iv
more than one-third (-36.9%) in March.
Accommodation & Food Services account for 7% of
the workforce in the Fredericton region, with a total
v
of 218 businesses within the sector.
ARTS, ENTERTAINMENT,
AND RECREATION
Nationally, the arts, entertainment and recreation
sector fell 41.3% during the same time frame
according to Statistics Canada. This sector accounts
for 2% of the Fredericton Region workforce, however
it will likely see long-term effects from COVID-19
vii
closures.
P A G E 04BREAKDOWN
RISK ASSESSMENT
WORKFORCE IMMEDIATE NOW TO 12 12 TO 24
INDUSTRY
COUNT MONTHS MONTHS
Retail 6,670 HIGH HIGH HIGH
Accomodation 3,380 HIGH HIGH HIGH
Arts 860 HIGH HIGH HIGH
High risk has been determined for industries that are
expected to be highly impacted by short-term closures,
loss of overall business operations, a reduction in
monthly year-over-year revenues of at least 15%. This
category faces pressure for infrastructure, employment
and cash flow. The three selected sectors are all long-term
high risk
IMPACT
IBIS World Research reports that approximately 91.2%
of industries are expected to be moderately to highly
impacted by the pandemic. viii All industries in Fredericton
will be affected in some way as a result of COVID-19.
The impacts are not the same across industries, or
companies.
The impact intensity will vary based on trade exposure
to affected countries, supply chain exposure to trade,
and exposure to business environment risks, for
example. As such, business recovery will vary within
sectors and markets, and business closures are
expected.
PAGE 05WHAT WE ARE DOING
ADVOCACY &
PROGRAMMING
EDUCATION
Action : Monitoring Action : Creation of an e-
and updating agencies commerce accelerator.
on most pressing
advocacy initiatives Agencies : Ignite
relevant to sector. Fredericton; Opportunities
New Brunswick and the
Agencies : Fredericton University of New
Chamber of Commerce Brunswick
BUSINESS FORUMS
COMMUNICATIONS
Action : Establishing a
Action : Maintain a
round table event with
communications toolkit
sector representatives for
showcasing updated
feedback and identify
social distancing rules as a
issues and opportunities.
resource for small
businesses.
Agencies : Fredericton
Chamber of Commerce &
Agencies : Opportunities
Ignite Fredericton
New Brunswick
E-Commerce
From those surveyed, 46% have not moved their business to an online
ix
format.
For those who have moved to an e-commerce solution, 67% will continue
x
with with e-commerce sales.
Support for social distancing rules
Over half of businesses surveyed said less than 19% of their employees
worked remotely during the NB State of Emergency and a third did not at
xi
all.
When asking what percentage of employees did they expect to work
remotely now that most businesses can return to operating, two-thirds said
less than 19% and one-third had no employees work remotely. xii
PAGE 06Arts
EXAMPLES OF CURRENT INITIATIVES
Initiative (Response Phase) Lead Agency
#SupportFredLocal
City of Fredericton
Economic Recovery Survey 2020 Agencies Group
Locked in with Lockhart Ignite Fredericton
Fredericton al fresco Fredericton Tourism
Catalyst Program University of New
Brunswick
Economic Town Hall Ignite Fredericton
GLOBAL TRENDS
RETAIL
Cost Savings: In an effort to cut costs and increase profits, it
is expected that retailers will invest in new technologies and
shipping / receiving processes. xiii
There is a rising trend to build consumer confidence"by
creating safe environments for customers and employees,
but also ensuring strong relationships with business
partners, such as landlords and suppliers. " xiv
ACCOMMODATION AND FOOD
SECTOR
There is an increase in off-premise dining (take out,
delivery, catering). xv
Also, there is a rise of customized promotions and service
offerings based on customer intelligence data. xvi
ARTS, ENTERTAINMENT, AND
RECREATION
Focus on alternative forms of service offerings such as virtual
tours, streaming services and online classes. xvii xviii
Deeper consumer engagement. xix
Stronger data and digitally driven operations. xx
PAGE 07BUSINESS
CONFIDENCE &
GROWTH PHASE
Building on the region’s strengths and assets in research,
information technology, cyber security, as well as our skilled
workforce, Fredericton can play a pivotal role in the economic
recovery of New Brunswick as a whole.
PAGE 08PREPARING FOR
OPPORTUNITY
The Business Growth Phase will be the longest and is projected to take
over two years. It is about rebuilding confidence and getting back to our
economic development agenda. It is also about creating opportunity
including driving innovation in traditional sectors. This includes activities
and components on sector priorities, workforce development and
population growth, investment readiness, as well as entrepreneur and
consumer confidence. Lastly, population growth plays a large role in the
Fredericton Region, both in immigration and post-secondary enrolment.
Many sectors are demand driven and population growth will need to be
supported.
WORKFORCE POPULATION GROWTH
Retail Trade PSE Enrolment
Accommodation and International Student
Food Services Recruitment
Arts, Entertainment, Immigration
and Recreation
AREAS OF FOCUS
Post-Secondary Education
According to a survey by Universities Canada, the number
of students who said a return to in-person classes was
probably not or certainly not going to happen rose from 28
per cent in April to 44 per cent in June. xxi The post
secondary education sector has a large impact on the
Fredericton community, with PSE students making a
significant impact every September. The Agencies Group
will continue to support our educational institutions on
everything from increasing domestic enrolment to
supporting our international students transition to a career.
PAGE 09Cybersecurity
With the accelerated adoption of elements such
as virtual networks and remote working, cyber
security has become more relevant
than ever. COVID-19 presents an opportunity for
the Fredericton Region to leverage its
cyber security expertise and assets to protect and
educate businesses physical and digital
infrastructure.
Supporting SMEs
Supporting small businesses has been a key
priority during the Response Phase and we
expect this to continue moving forward
through the Recovery Phase. Initiatives such as
export support, financial support and
employee well-being will be monitored. In
addition, the Agencies Group will facilitate a
business forum that will allow industry
representatives to voice their concerns and
cover a variety of topics businesses need to
know.
Digital Health
The healthcare and social assistance sector in
Fredericton makes up 9% of GDP and 12% of
the total workforce. The Agencies Group will
play an important role in calling for
collaboration and working with all parties to
xxii, xxiii
promote innovation in the sector.
PAGE 10Workforce
Nationwide, "the decline in employment since
February (-15.7%) far exceeds declines observed in
xxiv
previous labour market downturns." According to
Statistics Canada "In April, more than one-third (36.7%)
of the potential labour force did not work or worked
less than half of their usual hours, illustrating the
continuing impact of the COVID-19 economic
shutdown on the labour market. The Agencies Group
will play a key role in supporting our businesses and
ensuring workforces are back to a safe working
environment through communication and advocacy.xxv
Information Technology
The COVID-19 crisis has accelerated
technological adoption across all jurisdictions
and industries. The government and health
restrictions implemented across the globe
have left businesses with the choice to either
comply or temporarily close. As most
businesses work to innovate their business
model and operations, technological creation
and adoption is accelerating as society moves
toward a new normal.
To respond to the new global trends,
information technology industries are
expected to see growth in demand for the
following subsectors: remote and online
education, cloud service, healthcare,
collaborative software and services, and
telecommunications service providers. There
is an opportunity for the Fredericton region to
partner with post-secondary institutions,
private and public sector, and other
community stakeholders to refine existing
innovations and also develop, test, and
commercialize new innovations. xxvi
PAGE 11"RE"IGNITE FREDERICTON Fredericton Agencies Group
REFERENCES i Statistics Canada, June 2019 Business Counts for Fredericton (CSD 1310032) ii The Chronicle Herald, “Consumer Confidence Levels in Atlantic Canada Reach Record Low Amid COVID-19,” May 27, 2020, https://www.thechronicleherald.ca/business/local-business/consumer- confidence-levels-in-atlantic-canada-reach-record-low-amid-covid-19-454508/ iii Statistics Canada, “The Daily: Retail Trade,” March 2020, https://www150.statcan.gc.ca/n1/daily- quotidien/200522/dq200522a-eng.htm iv Statistics Canada, “Gross Domestic Product by Industry, March 2020,” May 29, 2020, https:// www150.statcan.gc.ca/n1/daily-quotidien/200529/dq200529b-eng.htm v Statistics Canada, June 2019 Business Counts for Fredericton (CSD 1310032) vi Statistics Canada, “Gross Domestic Product by Industry, March 2020,” May 29, 2020, https:// www150.statcan.gc.ca/n1/daily-quotidien/200529/dq200529b-eng.htm vii Statistics Canada, June 2019 Business Counts for Fredericton (CSD 1310032) viii IBIS World, “Industry Exposure Intensity by Country,” March 20, 2020, https://www.ibisworld.com/ coronavirus-industry-exposure/ ix Ignite COVID-19 Survey, 2020 x Ignite COVID-19 Survey, 2020 xi Ignite COVID-19 Survey, 2020 xii Ignite COVID-19 Survey, 2020 xiii Rene Vader, Paul Martin, “Global Retail Trends 2020,” KPMG International, May 2020, https:// assets.kpmg/content/dam/kpmg/xx/pdf/2020/05/global-retail-trends-2020.pdf xiv Megan Harman, “COVID-19. Pandemic Accelerating Retail Trends in Canada: Expert,” May 13, 2020, https://www.retail-insider.com/retail-insider/2020/5/covid-19-pandemic-accelerating-retail-trends-in- canada-expert xv Toby Malbec, “Restaurant Business Model Changes in a Post COVID-19 World,” Hospitality Tech, April 7, 2020 https://hospitalitytech.com/restaurant-business-model-changes-post-covid-19-world xvi Technomic, “Technomic’s Take: COVID-19, The Foodservice View,” 2020, https:// www.technomic.com/technomics-take/coronavirus-foodservice-view xvii IBM, “COVID-19 Spurs Media and Entertainment Companies to Transform,” April 27, 2020 https:// www.ibm.com/thought-leadership/institute-business-value/blog/covid-19-media-and-entertainment xviii IBISWorld, “Coronavirus Update: Industry Fast Facts: Arts, Entertainment, and Recreation,” June 1, 2020, https://www.ibisworld.com/industry-insider/coronavirus-insights/coronavirus-update-industry-fast- facts/#arts-entertainment-recreation xix IBM, “COVID-19 Spurs Media and Entertainment Companies to Transform,” April 27, 2020 https:// www.ibm.com/thought-leadership/institute-business-value/blog/covid-19-media-and-entertainment xx IBM, “COVID-19 Spurs Media and Entertainment Companies to Transform,” April 27, 2020 https:// www.ibm.com/thought-leadership/institute-business-value/blog/covid-19-media-and-entertainment xxi Universities Canada, “Canadian Opinions: Key Insights from Second Abacus Data Poll on COVID-19 and Universities,” June 2020 xxii Statistics Canada June 2019 Business Counts for Fredericton (CSD 1310032) xxiii Stiletto, Implied GDP Analysis, 2020 xxiv Statistics Canada, “Labour Force Survey, April 2020” May 8, 2020, https://www150.statcan.gc.ca/n1/ daily-quotidien/200508/dq200508a-eng.htm xxv Statistics Canada, “Labour Force Survey, April 2020” May 8, 2020, https://www150.statcan.gc.ca/n1/ daily-quotidien/200508/dq200508a-eng.htm xxvi Meticulous Market Research Pvt. Ltd., “Information and Communication Technology Industry Amid Global COVID-19 Crisis: Meticulous Research Viewpoint,” May 12, 2020, https://www.globenewswire.com/ news-release/2020/05/12/2032052/0/en/Information-and-Communication-Technology-Industry-Amid- Global-COVID-19-Crisis-Meticulous-Research-Viewpoint.html
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