Finally, a ‘mega’ deal for Atl. Canada

AllNovaScotia.com is reporting this morning that Research In Motion will be announcing a huge research and development centre to be located in Dartmouth, Nova Scotia.

They are suggesting that 1,200 jobs are involved.

If this is true, hallelujah.

A mini economic spinoff model:

1,200 jobs @ $60k = $72M in direct payroll

The multiplier on those highend jobs would be at least another 1,200 jobs (services, retail, etc.) at much lower average salaries but we are still looking at round $45M in indirect payroll.

The taxes paid in Nova Scotia (income, HST, etc.) should amount to $20 million or more per year.

Add in at least 800 housing starts.

A very large corporate office space.

It’s all good.

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0 Responses to Finally, a ‘mega’ deal for Atl. Canada

  1. Anonymous says:

    Um, not quite ALL good, you’ll notice that says Nova Scotia-not New Brunswick. RIM gets so much fed money they should HAVE to set up in each province, the same goes for Nortel which was bailed out by the feds, yet continues to layoff people in NB and hire them back for less money through subsidiaries.

  2. David Campbell says:

    Hey, don’t begrudge our good friends in Nova Scotia their success! New Brunswick needs to be more aggressive in its attempts to attract large projects like this. Just a thought.

  3. Anonymous says:

    I don’t begrudge NS at all, it’s great news for them, just not good news for New Brunswick. I mentioned this to my wife and her remark was “it’s good news because now New Brunswickers won’t have to emigrate as far to find jobs”.

  4. David Campbell says:

    Your wife is wise, my friend.

  5. scott says:

    Speaking of the wives. The indirect payroll spinoff would have to include the spouses incomes or family income as well.(I am sure they are not all stay at home moms)

    The payroll spinoff would have an even greater impact on the NS economy.

    Congratulations is warranted.

  6. Anonymous says:

    They say that every $60,000 income job creates something like 20 indirect jobs (can’t quite remember the statistic). Most of the indirect jobs would be lower paying, but obviously still jobs.

    Keep in mind though that Research in Motion is still in litigation with an american company for copyright infringement and this hasn’t been settled. Either way, you milk that cow til she’s dry.

    I’ve heard that mercedes is thinking of getting rid of a large chunk of its ownership in the ‘smartcar’. They say it’s never made money but it isn’t produced in enough numbers to make money and most dealers have a waiting list on them. How about a group of investors (or Irving, Ganong or McCain since they seem to be the only ones in NB with any money) and the NB government buying a chunk of that company on a condition that they build them in NB. For $15,000 and great mileage I bet a lot of New Brunswicker would jump on board buying them, and ship them west and have some of that money flow west-east for a change.

  7. David Campbell says:

    Interesting idea. I hear Malcolm Bricklin’s plans to import Chinese cars into the US are on hold so maybe he’s available. I’m only half kidding. If you read his company-generated bio (it’s online) there is no mention of the Bricklin cars. Subarus, Yugos but no Bricklin. I think it’s time to make amends with NBers.

  8. Anonymous says:

    Bricklin was CLEARLY the feds fault, it was because of the Auto Pact that that feds wouldn’t invest, now with that ancient history and the feds shovelling money at every car maker in Ontario, they’d be pretty hard pressed to explain not throwing some money at an auto maker in New Brunswick. There’s a (fairly) new electric car maker in Toronto at http://www.feelgoodcars.com. Now with electricity so up in the air electric cars are quite a gamble (could all this electricity deregulation be the car companies, much like when they bought up tram systems in the states and closed them down??)

    However, maybe buying into them and getting them to relocate isn’t a bad idea. Heck, I’ve even seen the scooters around, if you had a company manufacturing them locally perhaps people would be more willing to buy them, apparantly that was one of the reasons for Toyota setting up more production in the southern US, because people there wouldn’t buy them because they didn’t employ anybody.

    I’d be the first one driving a scooter if Honda set up production here, check out this page:
    http://www.treehugger.com/files/2005/02/hondas_cute_ele.php

  9. Anonymous says:

    Or how about buying into McGill’s electric snowmobile-same website as above.