Fall 2011 Newsletter

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 Welcome to the Invest in Middlesex Fall 2011 Newsletter.  This quarterly e-newsletter has been designed for local businesses, prospective investors and our economic development partners.

Take a minute to get caught up on all the latest news and learn more about the opportunities available to you in Middlesex County.

• Vari-Form:  A Global Technology Leader
• Investing in Infrastructure
• Cynergy in the Fast Lane
• Promoting Middlesex to the World
• First Doors Open a Hit

Vari-Form:  A Global Technology Leader

Every day more than 250 people work together to produce parts that go into cars and trucks across North America at two separate factories in Strathroy.

Drivers from Vancouver to Halifax, Dallas to Los Angeles, may not know that some of the most important components of their vehicles originated in Middlesex County.   But it’s been that way for more than 20 years. That’s how long Vari-Form has been operating in Strathroy, developing and using patented hydroforming technology that gives the company an edge against much larger competitors.

“This is a sophisticated operation,” says Director of Operations Randy Nicholls. “Using our technology, we can combine several functions into one and produce complex parts for auto manufacturers. That’s what sets us apart, our hydroforming technology.”

Although Vari-Form also operates plants in Kansas City and Mexico, it does all the complex hydroforming work in Strathroy.

Put simply, hydroforming is a process that uses high-pressure water to bend steel tubing into precise shapes used in the chassis of a car or truck. Robots, lasers and high-power computing combine to repeat the process over and over, to exacting standards – which is precisely what auto manufacturers require of their suppliers.

As auto makers have pressed to take cost out of every vehicle they make, Vari-Form has been able to deliver by producing increasingly complex parts.

“We’ve helped auto makers become more efficient by combining several steps into one,” Nicholls says.

In addition, Vari-Form’s leading edge technology is helping take weight out of the frames of vehicles, boosting fuel economy at a time when that is demanded by auto makers and consumers alike.

“The parts we produce are lighter, but they’re also stronger,” Nicholls says. “The regulations about crash protection are getting more stringent and, at the same time, fuel efficiency has to be improved. That’s where our engineering comes in. We can deliver on both fronts for auto makers across North America.”

Vari-Form built its second plant in Strathroy eight years ago, and now runs three shifts at both locations. It’s a good news story in the auto sector at a time when good news is somewhat rare.

“This is a perfect location for us,” Nicholls says. “We ship most of our product to the U.S., so being close to the border, on a major highway, is very important to us. Plus, over the years we’ve found the workforce in Middlesex County to be great. There’s a strong work ethic, and we’ve always been able to hire excellent people.”

The dedication of its workers is shown in at least two ways. Vari-Form has earned a reputation for delivering high-quality parts on time to plants that maintain a just-in-time manufacturing model and rely on the company to deliver on schedule. Its skilled workers and sophisticated machinery can change subtle specifications virtually on the fly to adapt to the needs of auto makers.

Secondly, both plants have logged millions of hours of works with no serious injuries. “That reflects on the dedication of everyone working here,” Nicholls says.

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Investing in Infrastructure

Across Middlesex County infrastructure projects are rising from the ground – and in some cases taking shape below ground – like tulips in springtime. The spate of projects is due partly to an influx of funding from the provincial and federal governments, but it’s also due to preparation and planning the county undertook several years ago.

When you put it all together, it translates into a series of projects that will spur economic development and add to an already great quality of life enjoyed by residents across Middlesex County.

Infrastructure projects such as the Thames Centre wastewater treatment operation and water tower and the wastewater treatment plant in Glencoe have increased the supply of serviced industrial land available for investors.

When federal and provincial infrastructure funds became available following the economic crisis of 2009, Middlesex was uniquely positioned to take advantage. Nearly 20 years ago, the County had made an annexation deal with the neighbouring City of London.

London expanded to the south, and Middlesex received several million dollars in exchange. The County invested the funds and created a $7-million fund from which communities in the County could borrow at 0% interest to fund infrastructure programs.

The fund had been used many times prior to 2009, but in the last two years it has served as the catalyst for an unprecedented number of projects across the County.

“In the last year alone, we’ve leant nearly $5-million for projects in all eight municipalities in the County,” says County Treasurer Jim Gates. “Having this fund in place allowed many projects to move forward more quickly. In some cases, it was the main reason they moved forward now.”

Thames Centre has undertaken a waste water treatment project to accommodate commercial, industrial and residential growth in the coming years. Included in a comprehensive plan is the commissioning next year of a wastewater treatment plant in Thorndale.

In August, Southwest Middlesex officially opened its brand-new water tower and wastewater treatment plant in Glencoe. Like the work done in Thames Centre, the Glencoe projects will spur economic development in and around Glencoe and throughout Southwest Middlesex.

At the same time, several projects have gone forward without tapping the $7-million fund, in part because municipalities using the fund were freed up to invest in other projects as well, relying on local fundraising and support.

As a result, there are several projects underway or recently completed that will boost local economies.

Investments in new and enhanced recreational facilities including the Thames Centre Recreation Facility and Middlesex Centre’s Wellness and Recreation Centre are an investment in healthy and happy residents and a productive workforce.

In Dorchester, the expanded Thames Centre Recreation Facility opened last fall to rave reviews. It features a rink, gymnasium and many office and meeting rooms.

This summer marked the opening of Middlesex Centre’s impressive, new Wellness and Recreation Centre in Komoka. It features two NHL-size ice pads, with seating for nearly 1,000 between them, a gym, a fitness centre, a walking and jogging track, three multi-purpose rooms for various local organizations and an expanded, user-friendly public library.

Within seven years, estimates suggest 70,000 people will live with a 10-km radius of the new centre, and it will be a neighbourhood hub for decades to come.

There are many other infrastructure programs underway or planned throughout the County, all of which will help advance the economic and social lives of all Middlesex County communities.

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Cynergy in the Fast Lane

Tim Hodgins has loved race cars for as long as he can remember. 

He even pursued a college degree he knew little about simply because it covered, “automotive marketing,” and it was the only course he could find that mentioned cars.

After several years of pursuing his dream and working around the fringes of the race car world, Hodgins is exactly where he always wanted to be: He owns a company that makes carbon fiber components for race cars and drag cars.

For the last 10 years, he has owned and operated Cynergy Composites, a small company with cutting edge technology and world-class craftsmanship. In 2004, he bought a piece of land just outside Strathroy that included a house and shop. He moved his business and family there, and now commutes to work by walking across his yard.

“When I first started, I would work every day from 8:00 to 5:00, go home and have dinner and then go back and work from 7:00 to midnight,” he recalls. “That was the only way to get established. But after a while, we developed a reputation for building really good composites and the business flourished.”

For the most part, Cynergy caters to racing fans in the U.S who will routinely spend $200,000 to build a high-end race car or dragster to race recreationally. They often begin with one of Cynergy’s composite bodies that sell for as much as $15,000. 

The body is computer designed and fabrication begins with a mold. From there, the Cynergy team adds sophisticated resin composite materials to make an extremely light and strong car body. 

“I really enjoy the innovation, the R&D,” Hodgins says. “People always want their cars to be lighter, faster and stronger, and we keep improving them so they are.”

Dragsters with Cynergy bodies typically go from 0 to 250 km/h in 5.5 seconds. “They’re really airplanes on the ground,” Hodgins says affectionately. “We ship bodies mostly to the U.S., but we’ve shipped a few to Europe and to the United Arab Emirates.”

More recently, Cynergy was chosen by prestigious Briggs Automotive Company (BAC) to produce several composite panels for its race cars. It’s a wonderful opportunity for Hodgins and his team of 10 to demonstrate what they can do on a larger, more public stage. 

“Everyone here is really good at what he does, so it’s a real team effort. It’s definitely not just about me.”

Hodgins has been thrilled with his decision to locate outside Strathroy in Cairngorm seven years ago. 

"Strathroy has so much of what we need. It’s a small town, but it has a lot to offer. From a business standpoint, we’re 40 minutes from the border. That’s really important for us.” 

"We wouldn’t ever move out of Middlesex. My wife loves the area, has never been happier. And I have found some wonderful employees, real good workers.”

It took him a while to find his niche and the right place to locate his business. But the wait was worth it. With regular customers around the world and the chance to expand his business by working with legendary BAC, Hodgins is happy every day he goes to work.  

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Promoting Middlesex to the World

Following on the success of their trip to The Netherlands in May, Middlesex County officials headed to Chicago this fall, looking to spread the word about investment opportunities in the County.

The Netherlands trip was organized by the Southwest Economic Alliance (SWEA). But the trip to the Canadian Consulate in Chicago, and others are planned for consulate offices in key U.S. cities, are solo efforts by Middlesex County. The strategy was endorsed by Council in July following a report on Foreign Direct Investment Strategy (FDI) by Illinois-based trade consultants.

“We’re lucky to be working with some people in the U.S. who can help us target cities and sectors that are a good fit for Middlesex,” says Aileen Murray, Manager of Economic Development with the County. “They have some really good connections.”

In their report, consultants Tom Ticknor and Eric Hochstein say that attracting foreign direct investment “plays an important role in creating quality jobs and an enhanced tax base.” However, they also warn competition for investment dollars is fierce. Therefore, “only well-prepared and proactive regions, counties and communities are likely to succeed.”

Middlesex County is determined to become one of those communities, and is in the process of reworking all its marketing efforts and resources to reflect the FDI strategy, Murray says. “We’ve spent a fair bit of time fine tuning what we’re doing to support this direction because we think it will pay dividends for the County.”

The report recognizes that Middlesex County is not widely known outside its own borders. This challenge can be addressed; however, and is more than offset by the County’s many strengths.

Among them: good access to highways and three commercial border crossings into the U.S.; a growing population and reputation for quality labour; plenty of shovel-ready sites with more due for approval; low tax rates and land costs; easy access to amenities in London.

“We have a lot going for us, and that’s what we spoke about when we went to Chicago,” Murray says. She travelled with Middlesex Warden Joanne Vanderheyden and municipal partners. They met with the Canadian Consulate staff in Chicago and with site selectors with an interest in Canada.

Plans call for similar trips to consulates in Detroit and Buffalo next year, part of the consultants’ long-range plan. Further trips to Boston, New York, Dallas and Atlanta are recommended, along with return visits to cities already visited to follow up and continue developing relationships.

“It’s an exciting strategy that could yield some impressive results,” Murray says. “We’ve had a good start taking these first steps in Chicago.”

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 First Doors Open A Hit

Middlesex County’s first foray into the popular Doors Open Ontario festival was an unqualified success, offering 21 sites for curious travelers on a sunny weekend in mid-September.

“We’re very happy with how this first time went,” says Sheila Devost of Tourism Middlesex. “We didn’t know what to expect, and it turned out very well.”

Middlesex worked closely with the City of London, which was participating in the province-wide event for its 10th time.

“We partnered with London in our advertising and planning,” Devost says. “That worked really well for both partners.”

The Doors Open festival invites anyone interested to drop in and explore all kinds of interesting buildings, some historical, some interesting for other reasons.

“We had something from every municipality within the County,” Devost reports. “That’s a very positive thing. We haven’t done a final count on all our volunteers, but it’s over 100. That was overwhelming, to be honest, to see how many people volunteered their time to make this a special event.”

Two of the more popular sites were the Arva Flour Mill and the carriage ride through Lucan. Every Middlesex site received visitors, and overall there were nearly 4,000 separate visits.

All the details of the weekend and the 21 sites are available at www.doorsopenmiddlesex.ca .

Feedback to date has been encouraging.

“We had a lot of visitors from outside the County, which is great,” Devost says. “We didn’t know what to expect, but we know there were lots of people from out of the County and also a lot of people who travelled across the entire County, from one side to the other to see what was happening in other municipalities. That’s a great benefit of this program as well.”

In addition to the 21 sites, Middlesex organizers included a geocaching trail, which attracted many young families to the event. Searching for specific locations with their GPS units, they travelled all over the county and took in many sites.

Devost and her team travelled more than 300 km prior to the weekend, erecting signs to help people find the 21 sites. “We did a lot of education this year, letting people know what was happening. A lot of people did know, but there were lots who didn’t, so we hope to reach more people next year.”

She is hopeful Middlesex will participate in the festival again next year. The theme is likely to be the 200th anniversary of the War of 1812, a topic that has people across the province planning for Doors Open 2012 already.

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Featured Property

5611 McGillivrary Drive, Lucan, Ontario
Sale Price:  $199,900

• 5,115 sq ft facility on 1.4 acres
• Zoning M2-3