Business Plan Summary
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1 Owner: Business Plan Summary Program Economic Prosperity Service grouping Economic Development Service Type Public Service Peter White, CEO, Strategic Priority Economic Prosperity Purpose Our goal is to accelerate and sustain the growth of a strong and vibrant economy and foster private sector investment in the city. Key processes Workforce Development Financial & Staffing In $000s Operating budget 2010 Actual 2011 Revised Budget Expenditure: 2,942 2,942 Non-tax revenue: 1,843 1,918 Net (tax supported): Capital budget 1,099 1, Revised Budget 2011 Revised Budget Expenditure: 0 0 Non-tax revenue: 0 0 Net (tax supported): 0 0 Staffing FTEs: Percentage of expenditures budget (all rate sources): Annual per household cost of net budget ($): Liaise with industry, academia and government to grow the local workforce and ensure talent entering the workforce meets industry needs in identified key sectors. Facilitate and Support Business Growth and Retention % Outsourced percentage 0% Provide guidance and leadership to develop and grow local business; liaise with key stakeholders and business leaders to facilitate expansions and new investments locally for our key sectors: advanced manufacturing, life sciences, food processing, renewable energy, information technology and digital media. Attract Foreign Direct Investment Identify key international markets and work with Canadian Embassy and Consulates to promote London as a place for investment and to respond to investment proposals related to identified key sectors. % % Outsourced percentage 0% Outsourced percentage 0% Page 1 of 6
2 Regulatory/Policy landscape Service Delivery method Discretionary Non-legislative New council direction, new regulations, legislative changes Economic Development Fund, Mayor's Economic Council Current state of this service Challenges: Challenges include influence from global economic slowdown that is still impacting opportunities for success. We can address this and create opportunities with a strong industrial land strategy, continue to build our transportation gateway, strong economic sector strategy, implementation of significant projects under the economic development fund that enhances our competitiveness. Successes that reinforce the LEDC strategic direction include recent investment in the Air Cargo Facility, attraction of PenEquity at 401/Wellington, Skyway Industrial Park development, attraction of Studer Dairy, expansion at Brose and many other significant files. Strengths: articulated vision and strategic direction. Recognized three years running as one of Canada's top ten economic development agencies by Site Selection magazine and various organizations. Unique public/private partnership with distinguished board of directors with leading business and community leaders. Per capita funding one of the most cost-effective economic development agencies in southwestern Ontario. Weaknesses: underfunded economic development and incentives provided by province of Ontario. No availability of renewable energy transmission capacity affects ability to attract green energy companies. Province of Ontario's "Places to Grow" does not include London and region. SWEA region is still suffering from impacts of global recession and certain sectors of London's economy are impacted significantly. Pending loss of Ford Talbotville Plant. Current state of assets, technology: LEDC does not have material assets that impact the City of London. Though, we have significant web-presence and have leveraged technology to create significant profiles of London's industries. We have developed proprietary technology to enhance and facilitate economic development activities including a company data -base. Risk Issues: Global economic factors, Provincial and Federal policies and programs. Ability to achieve long-term goals with LEDC service contract expiring with the City in June 2012 Recent enhancements to economy, efficiency and effectiveness Leveraging provincial and federal funding programs, for example in 2010 LEDC was able to implement a $400,000 manufacturing strategy that was not included in our budget through accessing and leveraging provincial funding. LEDC has had salary freeze in place since January 2008 for all staff. LEDC implemented supplier review through and achieved 8% cost containment. Shared opportunity with other City departments and integrated services to contribute to cost containment where available. LEDC has become one of the top clients of the London Convention Centre, thereby effectively spending in City of London assets. Page 2 of 6
3 Future direction of this service Continued program on economic prosperity within limitations including: global economic factors, provincial and federal programs and policies, competitiveness of city assets and costs. Ongoing annual funding of LEDC funding and economic development fund spending in key strategic sectors. LEDC uniquely serves business to enhance economic prosperity for all Londoners. In the near future, the Business Enterprise Centre will become a centre point for business service delivery. Enhanced synergy and efficiency with the creation of the Business Enterprise Centre and locating city and third party business services organizations together. Continued execution of the Economic Development Fund and development of levy for future Economic Development Fund. Objectives next 4 years Increase assessment growth Increase assessment growth through enhanced industrial land strategy and growth of commercial core. Continued strategy to position London as a leading community in Ontario for industrial growth. Implementation of Advanced Manufacturing and Green Technology Park. Creation of Water Technology Centre. Development of the International Composite Research Centre. Continued attraction efforts in key markets including Europe, South and Central America, and USA. 2.5% increased tax assessment through to. 2.5% increase in city utility dividends annually through to. 5% increase in building permits annually through to. Increase Workforce Increase workforce through job growth and increased retention from Western and Fanshawe. Comprehensive strategy development with the BGAN Committee, TechAlliance, & SBC to develop organic growth strategy. Develop Labour Market Talent Program, facilitate launch of Student Business Incubator, host annual DIG and S2B conference, facilitate programs and partnerships with municipal, provincial, and federal HR agencies, design and execute salary survey. Additional 10k jobs in CMA by. 1% graduate retention annually through to. Page 3 of 6
4 Expand and Complete London's Transportation Gateway Expand and complete London's Transportation Gateway. Completion of aviation and air cargo strategy to attract logistics, warehousing, and distribution companies. Increase outreach to cargo carriers to market opportunity in London. Develop long-term infrastructure plan to support the continued growth of the transportation and logistics industry. Design plan to develop next available areas for logistics: Airport-Huron track and 401-Colonel Talbot Lands, and interchange. $100 million invested by. Increase air cargo activity 25% annually through to. Growth of Downtown Commercial Core Support downtown revitalization by clustering commercial and creative industries in the downtown core. Complete cost competitive analysis and disseminate in key markets. Continued GTA "Good Move London" Campaign. Continued development of digital media and ICT sector in partnership with Western, Fanshawe and technology schools to cluster the growing sector in the core. Update digital media strategy and identify stage 1 and additional funding opportunities. Host DIG London annual conference. Attraction and retention of regional head offices. Decrease vacancy rate by 1% annually through to. Addition of 300 residential units annually through to. Addition of creative/knowledge-based jobs: 900 by. 1% increase in commercial workforce annually through to. Support Business Growth and Expansion Facilitate business growth and expansion in our key economic sectors Coordination of Business Enterprise Centre, engage CAO office and city business stakeholders to enhance expansion process, develop stakeholder working group with the City, LEDC, Chamber of Commerce, LDI, and LSTAR. Continue regular company outreach, visits, and cold calls to offer support and facilitate growth and expansion. Addition of 400,000 square foot annually through to. 2% sector growth annually through to. $50 million in new investment annually through to Emerging issues and challenges Economy LEDC must be flexible to plan and respond to the economic forces that influence global economic growth and supply chains. The LEDC strategic plan has taken into consideration key global markets and identified opportunities for investment attraction and local expansion. Page 4 of 6
5 Service changes with financial impact (+/-) Statistics and performance measures A Activity measures Industrial building square footage added 458, , , Forecast 2014 Forecast Forecast 2016 Forecast 700, , , ,000 1,250,100 1,132,000 Global economic downturn lead to decrease in global investment and local expansion Investment dollars (Foreign Direct and Local Expansions) 285, ,450 86, , , Forecast 2014 Forecast Forecast 2016 Forecast numbers are (000's) 150, , , ,000 Total Number of Jobs Created 1, ,020 1,200 1, Forecast 2014 Forecast Forecast 2016 Forecast 1,200 1,200 1,200 1,200 B Efficiency measures 2013 Forecast 2014 Forecast Forecast 2016 Forecast Under development Page 5 of 6
6 C Effectiveness/Quality/Satisfaction measures Industrial Weighted Assessment Growth (%) Forecast 2014 Forecast Forecast 2016 Forecast Page 6 of 6
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