REPORT TO ECONOMIC DEVELOPMENT COMMITTEE

 

 

 

 

 

TO:

Mayor and Members of Council

 

 

FROM:

Jim Baird, Commissioner of Development Services

Stephen Chait, Director of Economic Development

 

 

PREPARED BY:

Darren Ciastko, Senior Economic Development Officer

 

 

DATE OF MEETING:

2006-Jan-24

 

 

SUBJECT:

Markham-Laval Economic Alliance 2005 (Yr. 2) Report

 

 

 

RECOMMENDATION:

That the report entitled “Markham-Laval Economic Alliance 2005 (Yr. 2) Report” be received,

 

And that staff be approved to implement the proposed 2006 action plan at a cost not to exceed $9,500 and to be funded through Economic Development Capital account #086-6900-6775-005 and Economic Development Business Travel Account 610-9985201.

 

PURPOSE:

To present to Economic Development Committee the Markham-Laval Economic Alliance year end 2005 results, demonstrate the success of the business mission to Laval and outline the draft 2006 action plan (final year) of the economic alliance program.

 

BACKGROUND:

The Town of Markham has actively maintained an economic alliance and twinning program for over 15 years, based on the economic development goal of fostering world-wide trade and investment opportunities in Markham.  The objective of Markham’s Economic Alliance Program is to create a global network of business relationships with communities and business groups in strategic market locations and to create an international awareness of Markham’s business assets and locational benefits. 

 

In April of 1996, the Town initiated an Economic Alliance Agreement with Laval, QC and the alliance generated only modest activity over the next six years.  The Town and Laval recognized there was a need to improve program performance, strategically focus and operationalize commitments to the business community.  As a result, a three year Economic Alliance program was drafted and presented to Council for adoption.  In February of 2004 approval was given to Economic Development staff to implement a three year plan with Laval.   In March 2005 staff presented to Economic Development Committee the 2005 Markham Laval Economic Alliance Annual Report and obtained approval to implement the 2005 action plan.  The feature component of the 2005 program was the Markham business mission to Laval on October 24th and 25th.  On September 27, 2005 Economic Development Committee approved the mission.  The delegation was comprised of 5 Markham businesses and two staff members.   As a result of the mission and meetings with Laval Technopole staff, a plan for the final year of the Economic Alliance program has been drafted.

 

OPTIONS/DISCUSSION:

Please refer to Attachment 1 for a summary of the results achieved as part of the 2005 council approved action plan.  Item # 4, the Laval Business mission, is discussed in full detail below.

 

October 25 – 26, 2005 Business Mission to Laval Summary and Results

 

In October, Senior Business Development Officer, Darren Ciastko and Project Consultant Bertrand Walle led five Markham businesses (refer to Attachment 2) on a business mission to Laval.  The goal of the mission was to assist participating Markham companies achieve any one or more of the following objectives:  conduct market research, secure market representation, identify a sales agent, distributor, licensor/licensee, joint venture partner, financial partner, outsourcing opportunities or contract management opportunities.  In addition, Economic Development staff were able to generate contacts and access to R&D sources, technical assistance, and arrange joint distribution for the Markham companies that participated.  

 

The feature initiative of the business mission was the 2-3 pre-qualified one-on-one meetings Laval Technopole staff arranged on behalf of Markham businesses.  In order for Laval Technople staff to effectively arrange these meetings, each company who expressed interest in participating in the mission was interviewed and profiled by Markham Economic Development staff. Each Markham business shared their business plans and objectives related to doing business in Laval so that staff could properly identify appropriate matches for the targeted meetings.  All of the meetings were scheduled and took place during the day of October 25 and following the business mission, companies filled out a post mission survey to assess the results of the mission and for internal continuous improvement purposes.  Please review the attached mission program agenda for details of the mission events (Attachment 3) and a sample of the survey form completed by the participating companies. (Attachment 4).

 

Based on verbal feedback and the information collected in the surveys, it was discovered that most Markham businesses found the mission to be a valuable exercise.  The summary table below illustrates the average/typical responses to each of the survey questions.  Companies were asked to rate their level of satisfaction/value on a scale of 1-5, 5 being very valuable and 1 being not valuable.

 

Question                                                                                                         Average Rating

  1. How valuable were the meetings in accomplishing your business objectives?

3.75
  1. How helpful were the meetings in terms of gaining market knowledge in Laval and Quebec?

3.25
  1. How valuable were the meetings in terms of potential new business for your company?

3.75
  1. What was the level of satisfaction in the overall planning and logistical arrangements made by Markham staff?

4.50
  1. Did you find presentations made by Laval Technopole useful?

3.25
  1. Are you interested in learning about future trade missions with Laval or Markham’s additional economic alliances?

4 yes – 1 no

 

Markham and Laval staff strengthened working relations and set stage for 2006.

 

Senior Business Development Officer, Darren Ciastko and Project Consultant, Bertrand Walle met with Laval Technopole staff to discuss plans and finalize a revised Action Plan for 2006.  Both parties agreed to work towards a business mission of Laval life science companies to visit Markham in the autumn of 2006.  The Markham team was introduced to Céline Bilodeau of Laval Technopole who was recently hired to take over as coordinator for the economic alliance partnership.

 

As part of the business mission, Markham Economic Development staff met with the President, Raymond Talbot and the General Manager, Francine Cabral who are the new executive team of the Laval Chamber.  A verbal agreement was made to host introductory meetings to Markham Council and the Markham Board of Trade during the course of the action plan in 2006.  Both Raymond and Céline look forward to a new and prosperous relationship with the Town of Markham and Markham Board of Trade.   

 

October mission to Laval generated prospect for investment by Laval company in Markham

 

Markham Economic Development staff met with Cindy Walsh, VP Finance and Operations of a Laval company called OKIOK.  OKIOK specializes in enterprise and e-business security solutions.  OKIOK has been at the forefront of the information security field since 1983 and have pioneered several key concepts that are now at the heart of modern IT security.  OKIOK is looking to expand their operations in the GTA and as a result of meeting Markham staff in Laval, are looking at possible locations in Markham.   OKIOK indicated that the size and strength of Markham’s IT cluster is a huge market for potential customers.  They are looking to set up an office within the next two years.  As part of the 2006 action plan, Markham staff will host a meeting and tour of the area for OKIOK.

 

Proposed 2006 Action Plan

 

  1. Enhance Internet Website Presence and Profiling. Staff to enhance the Economic Alliance section on the Town’s Economic Development website as part of the website redesign program planned for 2006.

 

  1. Host Meetings with Laval Chamber and Technopole staff.  Invitations will be sent in January to Céline Bilodeau of Laval Technople, Raymond Talbot, President and Francine Cabral, Director General of the Laval Chamber of Commerce to meet with Markham Economic Development Committee and staff, as well as staff at the Markham Board of Trade.  The purpose of these meetings will be to introduce a new member of Laval Technopole staff to the Markham team and to formalize a partnership agreement between the Markham Board of Trade and Laval Chamber of Commerce.

 

  1. April 4-5, 2005 Radio Frequency Identification Conference in Markham.  Work with Laval Technopole staff to promote the event by featuring it on the Laval Technopole website, events calendar and other media sources.  In addition staff will send invitations to a list of Laval companies for possible attendance at the conference.

 

  1. Mayor’s Meeting in Laval.  Mayor Don Cousens will travel to Laval in May/June with Economic Development staff for a day to meet with Laval Mayor Gilles Vaillancourt and speak at a Laval business function.  The objective of the visit will be to strengthen the political relationship and begin recruiting Laval companies for the business mission.  

 

  1. Laval Business mission to Markham October 2006.  The purpose of the mission will be to host a delegation of several Laval companies and business leaders to foster B2B trade and investment.  Markham staff will arrange for an introductory session and presentation to promote the area and discuss the work the Town and its partners are doing to attract Life Science investment to the area.  The mission will mirror that of the 2005 one to Laval in terms of planning, duration and content.  Markham Economic Development staff will work with the Markham Board of Trade and the ISCM to arrange the business match making process and to promote the mission.

 

 

FINANCIAL CONSIDERATIONS:

The estimated cost to implement the 2006 action plan and proposed business mission is $9,500. These costs are to be funded through the 2005 International Alliances Capital account # 086-6900-6775-005 ($7,500), and Business Travel Account 610-9985201 ($2,000).

 

Cost estimates:

Laval Business Mission to Markham                                                        $2,000

  (includes meals, presentation materials, logistics)

 

Mayor’s Meeting in Laval                                                                        $1,000

Promotion of RFID conference in Laval                                                   $   500

Project consultant                                                                                    $5,000

Contingency and applicable taxes                                                             $1,000                                                         

Estimated Total                                                                                        $9,500                                 

 

ENGAGE 21ST CONSIDERATIONS:

The activities of the 2005 Laval Economic Cooperation Plan are in alignment with the Town’s corporate goal of Economic Development – to establish, promote and support Markham as the best location for diverse high-tech and related business.

 

 

BUSINESS UNITS CONSULTED AND AFFECTED:

None

 

 

ATTACHMENTS:

1.  Markham-Laval 2005 Action Plan

2.  October 2005 Business Mission Participants

3.  October 2005 Business Mission Agenda

4.  Mission Evaluation Questionnaire

 

 

 

 

 

 

 

 

Stephen Chait, Ec.D., CMC

Director of Economic Development

 

Jim Baird, M.C.I.P., R.P.P.

Commissioner of Development Services