Over the past two years, local companies and new companies attracted to Chatham-Kent have created 1,069 direct new jobs. Speaking last week to the Rotary Club of Chatham, Michael Burton, Director, Economic Development Services (EDS), told Rotarians that the gains are spread over the areas of Business Retention and Expansion, Small Business Development and Investment Attraction.
In Business Retention and Expansion, the department has assisted local companies with expansion plans and applications for capital grants and loans from senior levels of government. These applications have a 90% success rate. Over the past 18 months, local companies have invested close to $152 Million in manufacturing, technology and agri-business expansion. This expansion is expected to create 553 new jobs.
“This is a critical area for economic development and growth,” said Burton. ”We have an aggressive corporate program throughout Chatham-Kent that assists companies in finding new capital for improvements and expansion. This initiative supports existing jobs in CK and helps to create new jobs.”
Burton said that EDS also has a very popular Export Development Fund that supports local companies looking for new markets outside of Chatham-Kent.
In Small Business Development, the Small Business Centre has held 492 consultations over the past 18 months, assisting entrepreneurs with business plans and cash flow management. These consultations have resulted in the establishment of 152 new small businesses and 166 new jobs in CK.
In Investment Attraction, the EDS has assisted 13 new companies to set up operations in Chatham-Kent. Burton says there are another 18 open files with a total potential investment value of $2.3 Billion. If successful, the overall portfolio will create 700 new direct jobs and approximately 2000 indirect jobs in the community. Burton said these companies represent a major diversification for our economy ¾ they include chemical processing, medical supply, consumer products, industrial rubber products and a number of food processing investments.
“All of these companies but three originate outside of North America,” said Burton. “That shows how important our foreign direct investment effort is to Chatham-Kent’s future growth. While attracting foreign investment is expensive, it is clearly needed if we want new employers in Chatham-Kent. Most American companies are now focused on consolidating their operations and repatriating to the US. We have many examples of this. We need offshore companies and that takes patience. Issues of distance, language and culture slow down the decision-making.”
Burton added that, while American companies take 18 to 24 months to make site selection decisions, off-shore companies can easily take twice that time.
