The Citizen, 2000-04-05, Page 11THE CITIZEN, WEDNESDAY, APRIL 5, 2000. PAGE 11.
Study reveals county’s strengths, weaknesses
With input gathered from various
companies across Huron County, a
manufacturing sector strategic plan
has been devised to improve the
manufacturing climate in the county.
Through surveys, workshops and
interviews with manufacturers, the
study partners were able to identify
important issues facing manufactur
ers as well as the strengths and
weaknesses of operating in Huron
County.
The second phase of the study was
• to address those issues by develop
ing strategies to build on the
strengths and boost the weaknesses.
The final phase was to build part
nerships and resolve issues raised by
the manufacturers.
Industry sector trends
A review of sector trends showed a
projected decline in the demand for
farm machinery as grain and oilseed
prices remain low while the United
States had another good crop year.
The North American demand is
expected to drop five to 10 per cent
this year.
Construction and forestry equip
ment sales are also expected to be
lower as the prospects for housing
starts are less optimistic and pulp
prices are low. However, the demand
for mini-machines such as turf
equipment, work vehicles and small
construction machinery, may contin
ue its 10 per cent per year increase.
The auto industry is going strong
with some companies recording
record sales. This is beneficial to the
steel industry which grabs 55 per
cent of the auto manufacturing mar
ket. Aluminum rings in at nine per
cent while plastics range from 7.5 to
15 per cent. The demand for heavy
trucks was expected to reach a
record level last year.
The food processing industry is
dealing with major changes as super
markets and retailers are consolidat
ing, food companies are eliminating
less profitable brands while focusing
on fewer names and consumers are
cooking less, eating out more and
buying cheaper products. Major
global food companies have seen
weak sales, low stock prices and
greater demands by their retailers.
High oil and natural gas prices
have hurt the plastics industry, but a
recent period of low prices for raw
materials has helped broaden the
base for plastics use thereby opening
potential areas for growth in the
future. While automotive uses will
continue to be the area of strongest
growth, demand for construction
products such as pipe and vapour
barrier as well as consumer products
like toys and housewares, will aid
growth of the sector. There is a vul
nerability in the consumer area due
to import competition.
The electronics, computer and
electrical equipment sector has
exploded due in large part to the
tremendous demand for internet
equipment. The leaders in the indus
try play a major role in manufactur
ing industry development.
Places of work
Huron County’s manufacturing
labour force is 4,910, just slightly
less than those involved in agricul
ture (5,025).
Sixty-nine per cent of those
employees work outside their home
community including 31 per cent
which leave the county. Another 31
per cent work in their home commu
nity while five per cent work from
home.
Goderich, Wingham, Exeter and
Stephen and Howick Twps. account
for 73 per cent of those who remain
in their home community. Of those
working outside their home commu
nity, but within the county, employ
ment for 81 per cent is found in
Goderich, Wingham, Exeter,
Seaforth, Hensail, Clinton/Vanastra
or Stephen Twp.
For those travelling outside the
county, 74 per cent go to 10 destina
tions including Stratford, Listowel,
Mitchell, London or Lucknow. There
are three times as many that work in
Stratford compared to London and
that number jumps to seven times
when Listowel and St. Marys are
included.
The communities of Seaforth and
Brussels as well as McKillop, Grey,
Howick, Usbome and Tuckersmith
Twps. have 45 per cent or more of
their manufacturing workforce trav
elling outside the county.
While 1,505 residents work in
manufacturing outside Huron
County, only 750 outside residents
come to the county for work.
However, 25 per cent of the work
force for Zurich and Wingham and
Ashfield, Stephen and Howick
Twps. come from outside the county.
Ninety-one per cent of the manu
facturing workforce is employed in
146 facilities by six sectors. The four
largest sectors account for 85 per
cent of the employment.
Other studies have concluded that
as many as three service sector jobs
are created for each manufacturing
position.
Opportunities
With a U.S. study indicating plant
expansion brings almost as many
jobs to a community as new plants, it
shows obtaining investments for
existing operations can be just as
beneficial.
Noting that Huron and neighbour
ing counties produces 42.5 per cent
of Ontario’s agricultural output, but
processes only 16.8 per cent of the
goods, the study indicates manufac
turing sector jobs could be three and
a half times greater than the current
levels if investment in processing
had been comparable to the agricul
tural strengths.
Study authors say that if the Food
and Consumer Product
Manufacturer of Canada organiza
tion proceeds with ambitious plans
for investment, Huron County could
see significant increases in jobs for
the sector.
Surveying Huron Manufacturers
The six predominant manufactur
ing sectors in Huron County,
machinery, automotive, food, fabri
cating metals, wood and plastic, pro
duce almost 88 per cent of the
employment. While 25 per cent of
the companies are considered large,
they offer 82.5 per cent of the job
opportunities. Eighty-nine per cent
of manufacturing jobs are in
Wingham, Goderich, Exeter,
Hensail, Seaforth, Clinton, Brussels
and Stephen Twp.
It is expected that those six sectors
will produce 94 per cent of the new
jobs in the new year with plastics
Ashfield, Colborne W. Wawanosh
transition board begins meeting
The transition board for the amal
gamation of the Twps. of Ashfield,
Colbome, and West Wawanosh held
its first meeting on March 27 at the
Colbome municipal office.
The meeting was the first of a
series that will be held as the board
develops and implements the struc
ture and policies for the Twp. of
Ashfield-Colborne-Wawanosh
which will become a reality on Jan.
1.
The transition board is made up of
the reeve plus one councillor from
each township. Doug Miller, reeve of
West’ Wawanosh was elected chair
man of the board and Joan
being the front-runner at 49 per cent.
Manufacturers surveyed saw areas
for potential growth in sectors
including food, fabricated metal,
plastics, machinery, automotive,
wood and lumber.
While the county exhibits
strengths in 10 of the 20 areas need
ed to attract investors, availability of
skilled labour was seen as a weak
ness. Drawing skilled labour was
viewed as the greatest challenge by
manufacturers. The most difficult
positions to fill included managers,
skilled trade workers and engi-
neers/technicians.
The lack of sufficient skilled
workers has caused 23.6 per cent of
companies to pass on business
opportunities and another 16.4 per
cent to slow operations.
Manufacturers project a need for 339
skilled labourers by 2001 with
apprenticeship programs providing
less than 10 per cent.
Noting the 24 per cent wage-range
advantage afforded Huron County
manufacturers over the provincial
average, labour costs and productiv
ity are two of the top factors con
tributing to the region’s competitive
ness.
While 59 per cent of operations
would choose to stay and grow in
Huron County, largely due to labour
costs, lack of skilled trades and
transportation costs would be the
main reasons for relocating.
Forty per cent believed they would
be better able to compete if more
goods and services could be pur
chased locally.
Excluding the very large firms,
just 29 per cent of manufacturers
have websites which are used for
business and there are very few
which have established business
relationships with other companies.
The study notes that these methods
are ideally suited for operations in
relatively remote regions.
Conclusions
From the manufacturers’ audit sev
eral conclusions were formulated.
Acquiring both entry level work
ers and skilled tradespeople was a
top concern.
They noted the importance of the
internet and the opportunities for
mass-customization.
Isolation was realized both
through their lack of knowledge of
other manufacturers in the county
and the limited number with web
sites to economically promote their
businesses. Once websites were
established manufacturers realized
the importance of making links with
other sites, clients and suppliers.
In an effort to market Huron
County, companies have to deal with
infrastructure weaknesses. This is
where the internet can play a key
role in attracting more businesses. It
would be the task of community
leaders to make government and
Armstrong was appointed interim
secretary of the board.
The board will be dealing with
issues such as staffing, office and
workshed facilities, bylaws, etc.
Meetings have been scheduled for
the second and fourth Monday of
each month at 7:30 p.m. and will
rotate between the three municipal
offices.
The public is welcome to attend as
well as make deputations at the
meetings.
Any questions about the process
should be directed to the chairman at
528-3633 or the interim secretary at
528-2903.
industry aware of the benefits of
building in Huron County.
Geographic and natural resource
strengths as well as existing clusters
of manufacturers could be used to
bring in new investment.
Many manufacturers also did not
have formal economic links to their
communities.
They observed that banks were
reluctant to provide expansion dol
lars for companies in industrial parks
which have a poor appearance.
Goals and strategies
With problem areas identified, the
manufacturers outlined some ways
to deal with weaknesses.
In an effort to increase the number
of entry level workers, interest has to
be generated in high schools. It was
suggested students visit plants and
manufacturers speak at high schools
to provide information on opportuni
ties. Public awareness through the
media was also recommended.
To improve awareness among
manufacturers about other compa
nies in the county, the study recom
mended developing a manufactur
ers’ directory which would docu
ment products and locally-available
support services.
A senior local government official
should be assigned the task of devel
oping and maintaining open links
with manufacturers and ensuring
hard infrastructure needs are under
stood and met.
To increase skilled labourers, an
apprenticeship program in high
schools would help.
For all progress on the internet,
training of students and current staff
was suggested. Help could be pro
vided for the set up and maintenance
of sites.
The appearance of industrial parks
could be maintained through a pri
vate-public industrial equivalent to a
business improvement association.
To market Huron County for
future industrial growth, a directory
of serviced industrial land and sup
porting hard infrastructure should be
created. A concerted effort must also
be made in contacting federal and
provincial government leaders to
push for the promotion of Huron
County for manufacturing. The
focus would be on natural resources,
WEDDING ANNOUNCEMENT
DUIZER AND WALKER
Lisa Duizer and Shane Walker were married Jan. 8 at the Benmiller Inn with
Rev. Paul Ross officiating. Lisa is the daughter of Tom and Marjorie Duizer
of Londesboro. Shane is the son of Bruce and Barbara Walker and Robynne
and Kevin King of Dunedin, New Zealand. Attendants were Laurel Mitchell
and Shannon Clark, the bride’s sisters, and Vernon McCarthy and Kevin
King, friends of the groom. Caleigh Clark, niece of the bride, presented Lisa
with a horseshoe for good luck. Following a honeymoon in Paris, France the
couple returned to their home in Albany, New Zealand.
agriculture and manufacturing
strengths of the county.
Taking action
To begin implementing the ideas,
the Manufacturing Strategic
Initiatives for Partnering
Communities of Huron group was
formed. It consists of Dorothy
Cummings, Paul Hamel, Bruce
Colwell, John Marshall, John Grace,
Peter Shepard, Ralph Watson, Luke
Janmaat, Bill Fleming, John Baker,
Tony Hugh McMaster. Grace will
remain as the co-ordinator. Susan
Worsell, Paul Nichol, County
Warden Carol Mitchell and chair of
the county planning and develop
ment committee Exeter Reeve Roy
Triebner, were asked to join the
group as partners. The partners will
provide advice and support as need
ed.
Members of the committee were
assigned various tasks to begin
undertaking the initiatives outlined.
The Manufacturing Sector
Strategic Plan was completed by
Sandy Baroudi and Gerald
Pisarzowski of Advisory
Services//G PA- strategic manage
ment consultants with the assistance
of Worsell, Paul Nichol and Scott
Tousaw as well as the aforemen
tioned committee members.
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