Funny how that goes

Expansion Management tracks major business expansions in the US while at the same time the federal government agency Invest in Canada tracks major business expansions in Canada.

These two interesting sources tell us a lot about economic development in North America.

Since 2000, Invest in Canada has identified 4o some investments in New Brunswick:

Imperial Oil – Call Center Expansion
Help Desk Now– Call Center Expansion
Clientlogic– Call Center Expansion
Centerbeam– Call Center Expansion
Exxonmobil– Call Center Expansion
Virtual-Agent Services Canada– Call Center Expansion
Virtual-Agent Services Canada– Call Center Expansion
Cendant Canada– Call Center Expansion
Virtual-Agent Services Canada– Call Center Expansion
Virtual-Agent Services Canada– Call Center Expansion
Archway Marketing Services– Call Center Expansion
Virtual-Agent Services Canada– Call Center Expansion
CustomerWorks– Call Center Expansion
Aol Canada– Call Center Expansion
ICT Group– Call Center Expansion
Spielo – local expansion
Exigen – local expansion
A V Nackawic – existing firm retained – no new jobs
Upm-Kymmene Miramichi – existing firm retained – no new jobs
Av Cell– existing firm retained – no new jobs
Westcoast Power Bayside – ??
Ameri-Globe – ??
Technico Technologies – potato producer

Now this might not be an exhaustive list but it’s pretty close. And what this tells us is that since 2000, basically the time the PCs have come into power, there have been 15 call centre expansions (all but 2-3 were brought here under the previous government)..

…and not much else.

The other interesting point about this is when you browse both of these sources you get an interesting trend:

In the US, the bulk of new businsess investments are in Kentucky, Utah, South Carolina, North Carolina. Now, do a search on the Invest in Canada investment database. Look for the last 100 investments in Canada. Interesting results. Of the 100:

2 were in New Brunswick – both were call centre expansions
There were 6 in Nova Scotia
22 in Ontario
41 in Quebec
4 in Saskatchewan
17 in Alberta

Now, I have no doubt the Cool Camel spin machine has an answer for this. They won’t like the data source. Or maybe they’ll just talk about cutting small biz taxes.

The job creation over the last seven years has been:

a) well below the national average – almost have the rate of growth.

b) mostly due to call centre expansions, government jobs such as health care and education and the construction and secondary jobs from the $2 billion in increased government spending.

If you look closely at point b) you will conclude, as I have, that is not a good way to create jobs.

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0 Responses to Funny how that goes

  1. Anonymous says:

    Well, yes and no. Ask any person on the street who they’d rather work for-government or the private industry? Government jobs have always been the jobs people are looking for, just look at how many go into health and education. Plain and simple, private industry jobs usually suuuuuuuuuck! Long hours, low pay,no unions, no security, etc.

    Yes, there is lots to be said about your point that if government wants self sufficiency you need either something besides government jobs, or as I would say, you need to use that other internationally recognized form of revenue-taxing your resources. Here the province just gives them away, cheaper and cheaper.

    But that’s a nice blog, that’s good information to have, too bad more people won’t have it. I hope you’ll at least send some messages to the CBC, they have an election website and I’m sure many people will be going there for info. There’s at least a chance more people will find out about this stuff than the few that are on here.

  2. Anonymous says:

    That’s even less impressive if you consider that Imperial Oil and ExxonMobil are the same company.

  3. Anonymous says:

    It would be nice to have some info on just what kind of pay those call centre jobs offer.

  4. David Campbell says:

    There are some call centres that pay between $8 & $10/hr – but they are increasingly becoming the minority. Most of them now pay at least $12-$14/hour and the top ones will pay $35k – $50k for an experienced agent.