July 2010 Ontario Economic Fundamentals

[Amber]

Toronto: The new Zurich?

There is huge global confidence in the Canadian economy and Canadian financial institutions, and the reason for that is simple. They stood rock solid in the debt crisis of 2008-09.

Confidence is a prerequisite for economic growth. People invest based on the belief that the instruments they are purchasing will increase in value. Canada isn`t issuing as much debt as most nations, and so people are confident their money will be there when it comes time to cash in.

Read full article here

 

[Amber]

Customers fume over `outrageous` gas bills

If your natural gas bill is out of whack this month, join the club.

Enbridge Gas has 800,000 households in its budget billing plan (BBP), which lets them pay the same monthly amount during the year, no matter how much gas they use.

The instalments are set in August, based on gas consumption in the previous year, and the final reconciliation is done in July.

Read full article here

 

[Amber]

Will Hamilton Choose Sprawl or Revitalization?

Where to Build Pan Am Satdium is an Issue Between the City and the Ticats Football Team


The Toronto Pan American Games won`t be here until 2015, but important decisions about them are being made right now. Despite the name, they are a southern Ontario-wide effort with equestrian events in Caledon, rowing in St. Catharines. Hamilton will host track and field events, plus swimming and cycling.

In Hamilton, the Pan Am Games are already front and centre as a public issue. Hamilton is debating where to place the new Pan Am stadium. Should the publicly funded stadium be sprawl or a restorative downtown investment? A final decision is due Aug. 12.

Read full article here

 

[Ally]

After 91 years, GM calls it quits in Windsor

The last General Motors job in what was once Canada`s Motor City ended on Wednesday, 91 years after the first job was created when the Fisher Body Company of Detroit established a branch operation here. In between, as many as 6,800 Windsorites worked for GM at its peak.

"Time of death: 1:40 p.m.," Dan Garneau, the human resources manager for the shuttered transmission factory, said as he left the building. "It was a bittersweet day for a lot of folks."

The final transmission, signed by all the newly laid-off staff, is to be sent to the Canadian Transportation Museum. A contents auction for the rest of the factory is scheduled for September.

GM`s departure from Windsor marks the end of a relationship that shaped the city through the booms and busts of the North American automobile industry, driven by everything from demographic trends to a world war and global economic turmoil.

"GM is leaving Windsor and that means fewer good jobs for our kids," said John Papia, who spent more than 29 years at GM. "I don`t know where I`m going."

The Canadian Auto Workers, the union for the 500 workers who will lose their job — down from a peak of 2,800 at this factory, with another 4,000 in the city — describes the site as a prime candidate for redevelopment as a factory for solar energy companies, which enjoy generous government subsidies.

Read the full article here.

 

[Ally]

Windsor plant closure eliminates 130 jobs

WINDSOR, Ont. — When Norm Hillier joined what is now Martinrea Fabco in 1986, he thought it would be a company he would remain with for his working life.

But cheaper work elsewhere, a fluctuating Canadian dollar, stiffer global competition and a gradual shifting of work south of the border changed Hillier`s plans and those of hundreds of his neighbours, co-workers and friends.

Last Friday the company followed through on its commitment to close the plant at the end of June, throwing about 130 workers out of their jobs. They were told to leave their personal possessions and belongings behind and that arrangements would be made this week to pick them up.

Hillier, who is in his early 50s with 24 years seniority, suddenly finds himself seeking employment at a time when he thought he was long past that stage of his life.

"It was a good place to work at one time," said Hillier.

"We all grew up together in here. We learned about each other`s families, how they were doing in school and in sports -- it really was one large family."

Read the full article here.

 

[Ally]

Windsor Star`s auto talk

Canada`s auto industry`s is starting to see light at the end of the tunnel, but car companies are going to have to find ways of competing with low-cost jurisdictions, says Mark Nantais, president of the Canadian Vehicle Manufacturers` Association.

"Automotive companies are truly global in nature, and in Canada we need to be sure we can compete with the low cost structures that exist in competing jurisdictions," Nantais said in a interview featured in a recent newsletter of the Council for Automotive Human Resources. "I`m not sure we will return to the sales levels in North America which we enjoyed before the recent crisis, at least for some time, but there is a good feeling about where we are headed on a going forward basis."

A University of Windsor graduate, Nantais sits on the CAHR`s board. "We need to see beyond the next several months," he says, "the industry has and is undergoing deep restructuring, much of which came about as a result of the financial crisis which hit economies around the globe. There are opportunities that come from crisis, and companies face a new normal in terms of competition and markets. And in response, we`ve had to take painful steps to remove excess capacity and seek efficiencies under new operating structures."

BOSS CHALLENGES GM CANADA

GM Canada Ltd.`s new president says he still wants to be the largest car company in the country, but he won`t do so at expense of profitability.

After a government bailout of US$60 billion last year, the Detroit automaker has placed its long-term sustainability at the forefront of its priorities, including running a leaner network of products and dealers, said Kevin Williams, who took the helm of GM Canada on March 1.

Read the full article here.

 

[Ally]

Windsor manufacturer shifts production to energy sector

It was a scary step into the unknown. Five years ago, Southwestern Manufacturing Inc. began to transform from a plant that made automotive parts into one that now makes mostly large metal components for the mining, oil and gas industries.

It was starting to pay off for the Windsor company when the global recession set in. The downturn presented president Vince Schiller with another nerve-racking predicament: back off or spend more money to buy equipment being sold at discount prices as other factories closed their doors?

He took another leap of faith to bolster his plant on Windsor`s west side.

"It`s not always an easy thing to do. We did spend a lot on upgrades. We would like the economy to co-operate a bit more," he said during a recent tour of the Peter Street plant.

The 16-year-old company has found a niche making massive metal parts for mining equipment, including a 1.9 million-pound flying saucer-like component that goes in monster machines used to scoop out open pit mines for bitumen, coal and other minerals. The tub, as the 80-foot wide flying saucer is called, sits underneath the excavating machine and pulls the dragline that controls the huge scooping bucket.

Read the full article here.

 

[Ally]

Province to run rail link to Pearson Airport

In a surprise move, Metrolinx has announced that it will own, operate and build the highly anticipated rail link between Union Station and Pearson airport, after the province failed to reach an agreement with SNC-Lavalin.

It had long been expected that the private company would build and operate the premium rail service for the government.

"While the province and the Union Pearson Air-Link Group (UPAG), a subsidiary of SNC-Lavalin, were able to make significant progress negotiating, financial market conditions prevented acceptable terms," Metrolinx said in a news release Friday. "The government will continue to work with UPAG to build on the design and development work that has been completed to date."

Only weeks ago, Metrolinx president and CEO Rob Prichard said he expected Queen`s Park would be announcing a deal with SNC-Lavalin this summer.

The air-rail link will run up the Georgetown GO corridor, already under expansion, and a spur into the airport.

It`s expected to be finished by the Pan-Am Games in 2015.

Read the full article here.

 

[Ally]

Ford workers in Windsor finally told how many will be laid off and when

After months of waiting, workers at the Ford Motor Co. engine-making facility in Windsor have been told that almost 400 union members will be laid off.

On Wednesday, members were told that total layoffs would be 388 people, 250 production workers and 138 trades people.

A Ford spokesperson confirmed that layoff notices will be handed out in early August and members will have 12 weeks of work, with the final day expected on Nov 1.

Marc Renaud, vice president CAW local 200 Windsor, said even though they knew layoffs were imminent, the number is "devastating."

"We are going to continue to push forward and have discussions with the company for additional work for Windsor," said Renaud, adding that Ford was holding town hall meetings with workers to discuss options.

Union members were told by Ford in January that layoffs would be taking place in the fall.

The company is reducing the number of shifts at the engine plant. A new shift is being added at a second Windsor facility, but the change will result in a net loss of jobs.

At time they were told about 180 production workers and about 75 trades people would be laid off some time in September or October, said Renaud.

Read the full article here.

 

[Ally]

Ontario launches condo survey

Ontario wants to know what you think condominium ownership and have launched a new online survey to help residents reslate their experiences.

The survey, posted at www.ontario.ca/condos, asks condo owners about their experiences with buying and living in condos, as well as with condo corporations, boards of directors, repairs and maintenance, reserve funds and dispute resolution.

"Learning about the experiences of Ontario`s condo owners will help us better understand the marketplace. It also helps us get consumers the information they need so they can make informed condo-buying choices," said Sophia Aggelonitis, Minister of Consumer Services.

Information provided with the survey will help condo owners learn more about their rights and responsibilities under the Condominium Act and the survey results will also help inform government.

Read the full article here.

 

[Ally]

Which GTA neighbourhood is the best bang for your buck?

On a sunny weekend, David Ferrari will take a knapsack with some food and a book and bike to the beach in Mississauga`s Lorne Park neighbourhood.

"It really feels great to just sit by the water in this special place," says Ferrari, a real estate broker. In the 10 years since he set up a popular brokerage in the area, Ferrari has seen Lorne Park become what some people have dubbed the new Oakville.

Bungalows, typically on large lots of at least 70 feet wide, are being torn down for monster homes as buyers discover the tree-lined neighbourhood on Lake Ontario.

Move-up buyers dominated the Greater Toronto Area housing market in the first half of the year, with the suburbs experiencing the greatest price appreciation, according to a study by ReMax Ontario Atlantic Canada released Wednesday

Read the full article here.

 

[Ally]

Metrolinx to build, own, and operate Air Rail Link

TORONTO, July 30, 2010 /CNW/ - Metrolinx, the province`s regional transportation agency for the Greater Toronto and Hamilton Area, has been asked by the Ontario government to build, own and operate the Air Rail Link (ARL) from Union Station to Pearson Airport.

Metrolinx will assume responsibility for the project including design, construction and operations and will incorporate the work that has already been done to date. Metrolinx`s operating division, GO Transit, has a 40-year track record of running a successful passenger rail service.

The ARL will provide a premium express rail shuttle service between Union Station and Pearson Airport. The ARL will be an important link for business people and travellers and will be ready for the 2015 Pan American Games.

While the province and the Union Pearson Air-Link Group (UPAG), a subsidiary of SNC-Lavalin, were able to make significant progress negotiating, financial market conditions prevented acceptable terms. The government will continue to work with UPAG to build on the design and development work that has been completed to date.

Construction is already underway on the GO Georgetown South Corridor to support the Air Rail Link connection. This project is expected to create approximately 10,000 jobs in the design and construction stages over the next five years.

Each year, more than five million people travel between downtown and the airport and that number is expected to reach nine million by 2020. The ARL will help meet the tremendous demand for a direct service by connecting the busiest airport in Canada with the busiest transit and passenger rail hub in the country and will take 1.2 million car trips off our roads in its first year of operation alone.

Read the full article here.