{"id":11364,"date":"2019-09-14T13:10:11","date_gmt":"2019-09-14T13:10:11","guid":{"rendered":"https:\/\/www.swallowimmigration.ca\/en\/?p=11364"},"modified":"2021-10-14T10:59:04","modified_gmt":"2021-10-14T10:59:04","slug":"new-brunswicks-industry","status":"publish","type":"post","link":"https:\/\/swallowimmigration.ca\/en\/new-brunswicks-industry\/","title":{"rendered":"New Brunswick\u2019s Industry"},"content":{"rendered":"\n

  Five Things That Will Surprise\nYou About New Brunswick\u2019s Manufacturing Industry <\/h3>\n\n\n\n

Manufacturing doesn\u2019t sound sexy, but it\u2019s one of the most important industries for New Brunswick\u2019s economy<\/a>. So important that Herb Emery, University of New Brunswick\u2019s Vaughan Chair in Regional Economics, thinks advancing the sector may be the province\u2019s best chance for growth. <\/p>\n\n\n\n

\u201cWe\u2019ve been to accepting of the simple story that manufacturing is a dying sector. That\u2019s not the case and it\u2019s a convenient story that largely lets our governments off the hook for inaction, poor decisions, and a lack of vision,\u201d Emery said. \u201cIn fact, manufacturing may represent our best chance for economic growth in the coming decades if we make policy choices to improve the business climate in the province.\u201d<\/p>\n\n\n\n

Emery and his team of economics researchers at the University of New Brunswick have been doing a deep dive into the sector for almost a year under an initiative called The JDI Roundtable on Manufacturing Competitiveness in New Brunswick<\/a>.<\/p>\n\n\n\n

\u201cWhen I launched this manufacturing research initiative, it\nraised a few eyebrows,\u201d says Emery. \u201cIt\u2019s not a sector that people think a lot\nabout these days. But it was an obvious one for me to study since it represents\nsuch a significant share of our GDP\u2014more than most of the other provinces. And\nit seems to have an underlying strength in this province that isn\u2019t there in\nother places.\u201d<\/p>\n\n\n\n

While macro-economic data on Canada usually only mentions New\nBrunswick in a few places, this first-of-its-kind intensive economics research\nfocuses on New Brunswick. Emery and his team went around the province to speak\nto business owners so they can better understand what\u2019s currently happening and\nhow conditions and policies are impacting them.<\/p>\n\n\n\n

\u201cNew Brunswick business owners have given me a level of insight\nthat helps put the data in perspective,\u201d Emery said.<\/p>\n\n\n\n

The project\u2019s findings will be at the JDI Roundtable on Manufacturing Competitiveness Forum<\/a> on September 25-26 in Fredericton, but Emery shared some things that surprised him during the research.<\/p>\n\n\n\n

1. Manufacturing Is Everywhere\nIn The Province  <\/strong><\/p>\n\n\n\n

New Brunswickers often think of Saint John or Moncton as the\nepicentre of manufacturing but that\u2019s not really the case, says Emery.<\/p>\n\n\n\n

\u201cManufacturing is happening in just about every corner of the\nprovince. In fact, aside from retail, I can\u2019t think of another sector that\ntouches as many communities in the province. The sector is particularly strong\nalong the TransCanada highway from Moncton to Edmundston,\u201d he said.<\/p>\n\n\n\n

\u201cWe have companies like Metalfab in Central New Brunswick that\nproduce fire trucks for Canadian and Eastern U.S. markets. Richibucto has\nImperial Manufacturing. Port Elgin has Atlantic Windows and Doors. Rural New\nBrunswick is as much a player as urban New Brunswick.\u201d<\/p>\n\n\n\n

2. Homegrown Manufacturers That\nAren\u2019t Irving Or McCain Are Also Attached To The Province<\/strong><\/p>\n\n\n\n

\u201cI talked to a lot of small and medium-size family-owned businesses who are now on their second or third generation of family owners,\u201d Emery said. \u201cWhen New Brunswickers think of family businesses, they think of high-profile players like Irving or McCains. But New Brunswick has an exceptional number of smaller or medium-sized family-owned businesses in the manufacturing sector that get a bit overshadowed by the big players.\u201d<\/p>\n\n\n\n

For example, Atelier Beaulieu in St. Quentin is now in its third generation of making mobile fuel tanks; Craig Manufacturing in Hartland has expanded to the U.S., Ontario, and Alberta and has been owned by the same family since 1946.<\/p>\n\n\n\n

\u201cWhat struck me in meeting with these types of businesses is\ntheir strong commitment to New Brunswick that has been passed along from\ngeneration to generation,\u201d Emery said.<\/p>\n\n\n\n

Unlike the manufacturing sectors in Nova Scotia and PEI, which\nwere once dominated by outside players who packed up and left when the market\nconditions changed, New Brunswick\u2019s producers stayed.<\/p>\n\n\n\n

\u201cYou didn\u2019t see that exodus in New Brunswick perhaps because the\nproducers are homegrown. That seems to be a significant factor in the longevity\nand stability of New Brunswick\u2019s manufacturing sector,\u201d he said.<\/p>\n\n\n\n

But that commitment to the province shouldn\u2019t be taken for\ngranted.<\/p>\n\n\n\n

\u201cYou can\u2019t count on the next generation of owners being as\nattached to the province, especially if family members live out of province or\nif the succession plan is to eventually sell,\u201d says Emery.<\/p>\n\n\n\n

3. New Brunswick Manufacturers\nWant To Grow Their Businesses, Not Sell Them <\/strong><\/p>\n\n\n\n

In his research, Emery also saw that the province\u2019s manufacturing business culture is geared to building a business for longevity and long-term value, not for flipping or for quick sales like in many other sectors or provinces.<\/p>\n\n\n\n

\u201cBusiness owners\u2014particularly those in the Acadian regions\u2014want to build something in New Brunswick that will outlast them. They aren\u2019t looking for a quick sale, they are building a long-term, sustainable business.\u201d<\/p>\n\n\n\n

4. The Canada-US Exchange Rate\nIs The Biggest Influencer In Production Levels <\/strong><\/p>\n\n\n\n

\u201cNew Brunswick\u2019s manufacturing sector is the most trade-exposed in the country. And 90 percent of our goods go to the U.S.,\u201d Emery said.<\/p>\n\n\n\n

\u201cWhen the exchange rate creeps up closer to par, the demand for\nour\u202fproducts goes down. Producers have historically survived those periods by\ndownsizing their workforce and then ramping it up again when conditions are\nmore favourable. In contrast, American manufacturers have invested in capital\nto drive productivity growth to maintain their competitiveness.\u201d<\/p>\n\n\n\n

Because New Brunswick has historically been a labour-abundant\nregion, producers were able to ramp up production quite cost-effectively with\npeople\u202fwhen the exchange rate generated a competitive advantage. As a result,\nNew Brunswick firms haven\u2019t invested in the productivity-improving technology\nthat other areas have been forced to invest in. But in an era of labour\nshortages, that may be changing.<\/p>\n\n\n\n

\u201cWe\u2019re seeing labour costs creep up and become a factor in a way\nthey never have been in New Brunswick before. Without investments in automation\nand other productivity-improving technologies, New Brunswick producers will see\ntheir margins start to disappear,\u201d says Emery.<\/p>\n\n\n\n

5. New Brunswick Companies Are\nWorld-Class Producers <\/strong><\/p>\n\n\n\n

Going into the project, Emery wasn\u2019t sure what to expect from\nNew Brunswick\u2019s businesses but impressions from locals didn\u2019t leave him\nexpecting much.<\/p>\n\n\n\n

\u201cI don\u2019t know if familiarity breeds contempt or if New\nBrunswickers genuinely don\u2019t know the extent of the manufacturing sector in\nthis province, but we have world-class, sophisticated producers here. My eyes\nwere opened when I travelled throughout the province,\u201d he said.<\/p>\n\n\n\n

\u201cThese are businesses that compete with the best in the world\nfrom small towns located throughout New Brunswick. It\u2019s pretty impressive. What\nis now a mystery to me is why we don\u2019t celebrate these businesses more.\u201d<\/p>\n\n\n\n

To learn more about the forum and how to register as a participant, visit the website for the JDI Roundtable on Manufacturing Competitiveness: <\/em><\/p>\n\n\n\n

https:\/\/www.unb.ca\/roundtable\/forum\/<\/a><\/em><\/p>\n\n\n\n

This story was sponsored by the\nUniversity of New Brunswick.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Manufacturing doesn\u2019t sound sexy, but it\u2019s one of the most important industries for New Brunswick\u2019s economy. So important that Herb Emery, University of New Brunswick\u2019s Vaughan Chair in Regional Economics, thinks advancing the sector may be the province\u2019s best chance for growth.<\/p>\n","protected":false},"author":1,"featured_media":11771,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[84,879,87],"tags":[142,141],"class_list":["post-11364","post","type-post","status-publish","format-standard","hentry","category-canada","category-canada-news","category-new-brunswick","tag-economy","tag-manufacturing-industry"],"yoast_head":"\nSwallow Immigration Consultancy Inc | New Brunswick\u2019s Industry<\/title>\n<meta name=\"description\" content=\"Manufacturing doesn\u2019t sound sexy, but it\u2019s one of the most important industries for New Brunswick\u2019s economy. 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