Photo: Terra Nova Project. 
The first subsea templates and 
manifold systems to be produced at 
NewDock for the Terra Nova project.

 

Shipment value is expected to rise above $2 billion, aided by increased production in resource and non-resource industries. Non-resource based manufacturing, lumber production, and production of value-added wood products are expected to increase. Increased exports to the United States and Asia. New export opportunities will be explored, aided by the New England Trade and Investment Strategy.

 

Photo: Terra Nova Project. 
Drill rig Henry Goodrich being readied
for work on Terra Nova at Freide 
Goldman�s Cow Head facility.

 

Manufacturing Firms Receiving EDGE status in 1999 Guign� Technologies Ltd. (Paradise) Hi-Point Industries (1991) Ltd. (Bishop Falls) LaFarge Gypsum Canada Inc. (Corner Brook) Newfoundland Bonding & Composites (Gander) Ocean Import & Export Inc. (Benoit�s Cove) The Surprise Bag Ltd. (Carbonear)

MANUFACTURING

The value of manufacturing shipments reached a record $1.98 billion in 1999, an increase of 13.1% from 1998. Employment in the industry grew by 12% in 1999, and now accounts for 18,100 person years, the highest since 1991.

Shipment value grew for each of the Province�s three major manufacturing sectors in 1999��fish products, refined petroleum and newsprint. Growth was also experienced in lumber production and non-resource based manufacturing. Non-resource based manufacturing now accounts for about 40% of GDP in the sector.

A Manufacturing Focus
Over the past decade, the manufacturing industry has undergone significant change resulting from new trade and export opportunities, heightened global competition, emerging information and production technologies, increased demand for specialized labour, stricter environmental standards, and corporate re-structuring. Local manufacturers have been quick to take advantage of opportunities afforded by these and other developments, including the recent growth of the Province�s oil and gas industry. Increasingly, small scale manufacturers are targeting specialized market niches and the production of intermediate goods required by larger firms.

Government has put in place tax and infrastructure policies to encourage the growth and development of manufacturing. Incentives include input tax credits under the Harmonized Sales Tax, a favourable corporate income tax rate for manufacturing and processing, and a 10-year tax exemption for companies qualifying under the Economic Development and Growth Enterprises (EDGE) program. In addition, companies may be eligible for municipal tax exemptions, tax credits for manufacturing research and development, and industrial outreach programs. These incentives are complemented by the availability of world class research and training facilities at Memorial University, including the Manufacturing Technology Centre and other research institutes, and the North Atlantic Fisheries Centre. Additional industry support is provided by industry associations and various government departments.

Economic Development and Growth Enterprises
Since its inception in 1995, 67 firms have received EDGE status. Of these, 46 were manufacturing, fabrication, ship repair and environmental firms. EDGE-induced employment stands at 1,500 jobs and investment at $73 million. Seven manufacturers received EDGE designation in 1999, with a combined potential of 271 jobs. EDGE firms, such as those described below, illustrate the growth and diversity of manufacturing in the Province.

• Northstar Technical Inc. of Mount Pearl received EDGE status in 1997. This firm, an electronics manufacturer and underwater communications developer, manufactures control consoles for submarines and surface ships, sonar arrays for navies, and assists in offshore petroleum seismic exploration. In 1999, the firm was awarded a $2.9 million contract by U.S.-based Lockheed Martin Underseas Systems to fabricate and test fire control missiles for the Canadian "Victoria Class" submarine retrofit project.
   
• True North Springs of South Brook, Hall�s Bay, received EDGE status in 1999 to establish a $2 million natural spring water bottling facility. This facility is capable of producing three tractor trailer loads of bottled water daily. The Company has distribution agreements in the United States and is exploring other export opportunities.
   
• LaFarge Gypsum Canada Inc. acquired Atlantic Group Ltd. and Atlantic Group Resources Inc. of Corner Brook in 1998 and received EDGE status in 1999. The Company is a world leader in building materials with a global work force of 65,000 and sales of approximately $14 billion. The Corner Brook plant is comprised of two manufacturing divisions��gypsum wall board and polystyrene rigid insulation. LaFarge implemented a retrofit program in 1999 to upgrade equipment and winterize the plant to increase annual capacity.