Report to: Economic Development Committee                                  Report Date: May 1, 2007

 

 

SUBJECT:                          Markham-Laval Economic Alliance Program

PREPARED BY:               Darren Ciastko, Senior Business Development Officer x 2655

 

 

 

RECOMMENDATION:

That the report entitled “Markham-Laval Economic Alliance Program” be received for information,

 

And that staff be approved to implement the proposed 2007 action plan at a cost not to exceed $10,500 and to be funded through Economic Development Capital account #086-6900-7679-005 ($8,000) and Economic Development Business Travel Account 610-9985201 ($2,500),

 

And that Council authorize the Mayor, the Chair of the Economic Development Committee and the Senior Business Development Officer, to participate in the fall business mission to Laval,

 

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

EXECUTIVE SUMMARY:

 

 In 2006 Markham Economic Development and Laval Technopole staff executed the action plan for the final year of a three year economic alliance program.  The action plan focussed on a number of strategic initiatives including enhancing the presence of each City/Town on respective websites, a strategic planning session with Laval Technopole and Laval Chamber of Commerce staff, the facilitation of two investment leads, a new partnership and collaboration with the Bureau du Québec à Toronto and a Laval Business mission to Markham in October of 2006.  The specific details of each of these action items are described in the discussion section of this report. 

 

During the business mission, Markham and Laval Technopole staff held meetings and agreed that the three year plan was successful and both organizations expressed a desire to continue the program.  Despite this success it is premature to adopt a new 3 year plan with Laval before Markham finishes its Economic Competitiveness Strategy.  To avoid losing momentum and to continue building the relationship, it is recommended that a one year plan for 2007 be adopted.  In 2007 emphasis will be given to bringing to conclusion investment leads and to organize a Markham business mission to Laval.

  

FINANCIAL CONSIDERATIONS:

 

The estimated cost to implement the 2007 action plan and proposed business mission to Laval is $10,500. These costs are to be funded through the pre-approved 2007 International Alliances Capital account # 086-6900-7679-005 ($8,000), and Business Travel Account 610-9985201 ($2,500).

 

Cost estimates:

Markham Business Mission to Laval                                                                  

            Airfare for three                                                                        $    1,500

            Hotel for three                                                                          $       700

            Meals and Transportation                                                         $       300

 

Annual project consultant fees                                                               $    7,000

Contingency, staff expenses and applicable taxes                                    $   1,000                                                        

Estimated Total                                                                                       $10,500        

1. Purpose                     2. Background                      3. Discussion                        4. Financial        

 

5. Others (Environmental, Accessibility, Engage 21st, Affected Units)             6. Attachment(s)

 

PURPOSE:

The purpose of this report is to present the results of the 2006 Laval business mission to Markham and a proposed 2007 action plan which includes a business mission to Laval in the fall of 2007.

 

BACKGROUND:

In February of 2004 approval was given to Economic Development staff to implement a three year plan with Laval. 

 

The first year of the program involved planning and laying the groundwork for the 3 year commitment, enhancing the presence of Laval and Markham in their respective communities and conducting an export and economic alliance survey which identified strategic opportunities for Markham and Laval companies to explore.  In March of 2005 staff presented to Economic Development Committee the 2005 Markham Laval Economic Alliance Annual Report and obtained approval to implement the 2005 (Year 2) action plan.  The feature component of the 2005 program was the “Laval 2025 Conference” attended by Markham staff and council and a targeted business mission to Laval which resulted in 2 investment opportunities and new business for the companies that participated in the mission.  In the final year of the 3 year program Laval Technopole experienced a change in staff leadership and a successful mission to Markham which resulted in new investment and business for participatory businesses.  

 

OPTIONS/ DISCUSSION:

Please refer to Attachment 1 for a summary of the results achieved as part of the 2006 Council approved action plan.  The joint Laval Business mission and Quebec Ontario Business club launch, is discussed in full detail below.

 

November 7-8, 2006 Laval Business Mission to Markham & Launch of the Quebec Ontario Business Club

 

Economic Development staff with the assistance of the Markham Board of Trade welcomed and delivered a business matchmaking program for a delegation of Laval Technopole staff and 5 Laval businesses. Please see attachment 2 for a list and description of the participating Laval businesses.  Simultaneously, Markham forged a new partnership with the Bureau du Québec à Toronto and hosted a networking reception for the launch of the Quebec Ontario business club.

 

The goal of the business mission was to assist participating 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.  Markham companies were targeted based on the specific objectives of the participating Laval companies. 

 

The feature initiative of the business mission was the pre-qualified one-on-one meetings Markham and Markham Board of Trade staff arranged on behalf of Markham and Laval businesses.  In order for staff to effectively arrange these meetings, each company who expressed interest in participating in the mission was interviewed and profiled by Laval Technopole staff. Each Laval business shared their business plans and objectives related to doing business in Markham so that staff could properly identify appropriate matches for the targeted meetings.  All of the meetings were scheduled and the majority of the meetings took place during the two day mission. Following the business mission, companies were engaged with post mission follow-up 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 the summary of results for participating Laval businesses (Attachment 4).  In addition to the five companies that travelled to Markham, three additional companies participated in the matchmaking program and held meetings in Markham or via web conferencing on dates outside of the mission.

 

Launch of the Quebec Ontario Business Club

The Town of Markham Economic Development Department and the Bureau du Québec à Toronto forged a new partnership under the auspices of collaborating to encourage Québec and Ontario businesses to network and explore collaborative avenues and form strategic alliances through the established Markham/Laval economic alliance.  The Bureau du Québec à Toronto supports Quebec firms seeking to develop business in Ontario. Its efforts are focused on creating a wide range of activities dedicated to promoting business relationships and partnerships between Quebec and Ontario.  By partnering and working with the Bureau du Québec à Toronto, Markham has established a direct conduit to a strategic niche of companies.  This niche bodes well for investment attraction initiatives, as the vast majority of these companies are already engaging in inter-provincial trade.  Markham will seek to build profile among the membership base and as result be seen as an anchor point for business development and trade between Quebec and Ontario. 

 

During the evening of November 7, 2006 Markham co-sponsored and hosted the launch of the Quebec Ontario business club.  The main objectives of the business club are to offer advantageous meeting points for the exchange of information, the identification of business partners with emphasis on the importance of trade between Quebec and Ontario by introducing mechanisms to increase business between both provinces, the creation of links with both Ontario and foreign business communities and finally to create a network of informal exchanges through business networking and events.  

 

The reception and Quebec-Ontario Business Club launch was attended by 75 business leaders comprised of Quebec-Ontario Business Club members, the Laval delegation, invited Markham companies, former Regional Councilor Bill O’Donnell and Markham Economic Development staff.  The reception agenda is attached for reference (Attachment 5).

 

Markham Continues to work Investment Attraction Leads

 

Intertrade participated in the 2006 business mission to Markham and believes the development of the Markham market is in their best interest.  Intertrade held meetings with potential clients, the local Quebec office in Ontario (Bureau du Québec à Toronto) and the MBT.  Following the mission, Intertrade traveled to Markham a second time on November 22 and met with Keith Bray, became members of the MBT and the MBT is actively looking for clients.  Intertrade has hired a new Sales manager, Curtis Popovitch who initially will be working from his home in York Region.  As clients are established, Intertrade plans to open a Markham office.

 

OKIOK - Markham Economic Development staff met with Cindy Walsh, VP Finance and Operations of a Laval company called OKIOK in 2006.  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, have been looking at company acquisition opportunities in Markham and are looking to set up an office within the next year.  OKIOK met with staff at the ISCM and have identified several candidates for clients and are continuing to work in this fashion.

 

Kalitec - During the 2005 business mission to Laval Joe Virgilio, Markham and MBT staff met with a company called Kalitec.  Kalitec are manufactures of high performance streets signs, posts and other products that over the long term can significantly reduce the maintenance costs of municipal street infrastructure and enhance urban design standards.  In advance of the business mission to Markham in 2006, representatives from Kalitec met with Town staff to discuss their products, make a product demonstration and determine whether the Town has any interest or need for their products.  Following the meetings, Kalitec prepared a pilot project proposal for Operations and Transportation staff review with the hopes Markham will adopt their high-performance street sign products.  Pending the adoption of their products Kalitec have agreed in principal to select Markham as the preferred location of an Ontario manufacturing plant.  Following the presentation of the Pilot Project proposal, Kalitec’s account manager dealing with Markham left the company and the interaction ceased.  During the 2007 Action plan, Markham Economic Development staff intend on following up with Town staff and Kalitec to bring this project to conclusion.

 

Proposed 2007 Action Plan

 

  1. Laval Chamber of Commerce and Markham Board of Trade Reciprocity Memberships.  Facilitate the incorporation of the Laval Chamber of Commerce and the Markham Board of Trade into the broader economic alliance agreement between the Town of Markham and Laval Technopole.  The resources and membership base of both of these organizations and their support of the established economic alliance agreement will enhance the capacity to achieve our objectives.  Both organizations have extended reciprocal memberships to formalize the relationship.

 

  1. Laval Centre for Social Innovation.  Robert Dubé (new Laval Technopole Director) has indicated strong interest in developing a local center of Social Innovation with an operating model and business plan similar to that of the Innovation Synergy Centre in Markham.  In that context Markham staff will work with Laval Technopole to support and provide strategic information to help develop the concept.

 

  1. Markham Business Mission to Laval.  Tentatively the mission is being planned to take place for 1.5 days in September or October of 2007 and there are several objectives for the mission. It is desirable to introduce Mayor Scarpitti to Laval Mayor Gilles Vaillancourt to create a stronger focus of Economic Development between the Town of Markham and Laval Technopole.  Similar to prior missions, this mission will focus on exposing 5 - 10 Markham businesses to the economic strengths of Markham and Laval with the objective of exploring opportunities for joint ventures, transfers of technologies, opening new facilities, acquisitions in the ICT and Life Sciences sectors. General prospecting and direct sales will be discouraged.  Both the Laval Chamber of Commerce and the Markham Board of Trade will play key roles in the traditional business to business opportunities and assist Markham’s project consultant in the recruitment of businesses for the mission.

 

  1. Bureau du Québec à Toronto - 

During the business mission to Markham in 2006 Markham forged a new partnership with the Bureau du Québec à Toronto with the mutual interest of strengthening business relationships between Markham and Laval.  Markham staff has held preliminary discussions with the Bureau du Québec à Toronto in 2007 and there is great interest from both sides to strengthen the relationship.  The Bureau has agreed to promote the alliance to their member and readership base and have expressed interest in participating in the mission to assist with recruitment and promotion.

 

FINANCIAL TEMPLATE: (external link)

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ENVIRONMENTAL CONSIDERATIONS:

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ACCESSIBILITY CONSIDERATIONS:

 

 

ENGAGE 21ST CONSIDERATIONS:

The activities of the 2006 and Proposed 2007 Laval Economic Alliance activities 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:

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RECOMMENDED

                            BY:    ________________________          ________________________

                                      [Insert text here]                                 [Insert text here]

 

 

 

 

ATTACHMENTS:

  1. Council approved 2006 action plan
  2. List of participants
  3. Laval business mission agenda
  4. Summary of the evaluation
  5. November 7 reception agenda