Cluster-boys get another kick in the pants

For everyone of you cheese-eating, just-in-time inventory, integrated logistics, cluster-loving negative, uncreative economic developers out there, this one’s for you.

I would be a millionaire today if I got a dollar for every time an economic developer, politician or Joe Q. Public said to me “why would company X ever locate in a place like New Brunswick?”.

The naysayers creed looks like this (why company x would never locate in NB):
-We are too far from major markets
-We don’t have the transportation infrastructure
-We are not a ‘right to work’ province as a place like Alabama
-We don’t have access to high end engineering and management talent
-Shipping costs are too high for manufactured goods
-Americans don’t like investing ‘nearshore’ – it’s China or inside the USA
-We don’t have other firms in that sector here (the cluster effect)

Well, Wellington, Florida-based B/E Aerospace has their global manufacturing and R&D for aircraft seats in Northern Ireland – they moved it from Connecticut. Now, which of those naysayer points above does a Northern Ireland location address? None.

B/E is in Northern Ireland because the UK government pursued them and got them to go there. Period. There were incentives on the table (there almost always are). Who knows, may be the British Airways contract was somewhere in the mix. But the bottom line is that you can throw out all that crap (above). Companies will locate in provinces that have a good business environment and that are really, really, really interested in them going there.

You can take that Michael Porter crap and stick it where the sun don’t shine.

And to all the folks that say company x would never locate in New Brunswick, have you ever asked nicely?


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0 Responses to Cluster-boys get another kick in the pants

  1. Anonymous says:

    Who says that? Bennett, UPN, and Irving/McCain, Ganong, Moosehead, are ALL in NB. All are international companies. But who thinks the New Brunswick government has as much money as the British Empire? Hands up? Anyone?

    When it comes down to ‘how much will you pay’ for a company that’s where it gets tricky. First, even ‘some’ economic developers will get on the case if its TOO much money, and not in one of the sectors that they personally like.

    I don’t think I”ve EVER heard the ‘right to work’ legislation, and I’m suspicious that’s its just people’s way of trying to get the government to talk about it. All it means is you don’t HAVE to join a union. The only unionized jobs are in industries where workers would be crazy not to join, or simply wouldn’t get hired otherwise (this would be the reverse of the Irving questions you have to answer when applying at Irving…”how much do you like unions” and things like that.

    Put government money into it and EVERY industry is ‘cost effective’, even resource ones.

    Sorry, but I forgot what the theme of the website was! You’ll be happy to note that we’re at work at doing YOUR work for ya with regards to that, doing a lot more than just blogging:)