Invest in Middlesex Summer 2010

Thursday July 29, 2010

Welcome to the Invest in Middlesex 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.

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Innovation Key for Stanton Bros. Farms

Stanton FarmsJust north of Ilderton, on a sprawling 1,200 acres of farmland, the 19th Century and 21st Century have come together at the Stanton Bros. Farms.

The farm is home to about 2,000 Holstein cattle and employs about 20 people, including various members of the Stanton family. Laurie Stanton and his wife, Sandy, are third generation farmers. Their three adult sons, Jim, Jeff and Greg, represent the fourth generation working on the farm, as does their daughter, Amy, who is earning her PhD at the University of Guelph and consults on farm matters as needed.

Although the basic act of milking the herd daily hasn’t changed a lot over time, everything else about the Stanton farm has changed dramatically in the last decade or so, including the location of the farm itself.

For many years, the farm was in London, but as the city filled in around them, the family started looking for greener pastures.

“We started way back in 1988 assembling this parcel of land,” says Sandy. “It really worked out well that we were able to put this amount of land together because there are certain minimum distances you have to maintain between the farming operation and other land owners.”

The family started building their state-of-the-art farm in 2005 and moved the first cows into the facility in July 2006. The modern buildings offer a hint about the farm itself, which is a three-pronged operation that does not rely entirely on selling milk to sustain itself.

The Stantons milk about 650 cows on a regular basis, enough to meet their quota from the milk marketing board. “We could milk a lot more, but it’s very difficult to get more quota,” says Laurie.

Instead of relying entirely on the milk quota, the farm has teamed up with Guelph-based Semex to build an international reputation in elite genetics. Dairy farms from around the world visit the Stanton farm and buy embryos and semen to propagate and improve their herds.

“This is the growth area of the business,” Laurie says. “We are known for genetics, and we continue to expand that part of the business.”

The farm is also known for a variety of cutting-edge environmentally friendly techniques, most of which relate to the way the Stantons dispose of the manure produced every day by their herd.

When they built the new facility, they installed a series of eight anaerobic biodigesters that break the manure down into solid, liquid and gas waste. The solid waste is odour-free and looks a bit like ground up tobacco. It can be used as bedding material for the animals and much more. The farm has research agreements with five universities, each exploring different uses for the solid waste. Among the possibilities: fibre board that could be used in construction or activated carbon to help purify water.

The liquid waste is used to feed algae, which the farm uses for biodiesel power. The process also captures methane gas, which is used to power a diesel generator and create electricity – so much that the farm can power itself and has plenty left over to sell back to the province. Negotiations with the Ontario Power Authority have been slow, but Laurie is hopeful they can strike a deal to sell excess power back to the province.

There’s a lot going on at Stanton Bros., much of it involving technology to reduce or eliminate any effects the farm has on its neighbours and the environment and capitalize on the province’s need for reliable, renewable energy sources.

“We see this as a template for other farms. Ten years from now, we think most farms will be doing this kind of thing,” Laurie says.

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Armatec Invests in Thames Centre

Davinci Business Park - new home of ArmatecA dozen years after it began humbly in a residential basement, Armatec Survivability Corp. was operating in four separate locations throughout London. Founder and chief executive Karl Pfister decided it was time to consolidate the entire operation under one roof, bringing not only all Armatec operations together but also attracting some of its suppliers to a kind of high-tech campus.

The company sent out proposals across Southwestern Ontario, looking for the right mixture of land, infrastructure and tax rates. Competition was stiff, but in the end the decision was easy: Middlesex County had everything the company was looking for.

Last November, Armatec broke ground on a 300,000-square-foot facility in the brand new DaVinci Business Park, a 68-acre location in Dorchester. Construction is nearly complete and the company will move in later this year. It will bring about 350 employees from existing facilities and hire about 50 more as part of the move and expansion.

“This has long been a dream of mine, a vision, and I am very happy it is happening,” said Pfister last November at the ground breaking ceremony. “The responsiveness of council and their competitiveness made this possible.”

Armatec builds light armoured vehicles and related equipment for military customers around the world, including the Canadian Department of National Defence and the U.S. Marine Corps. Most recently, it won a $302-million contract to add armour protection to 113 Australian LAVs, built by General Dynamics Land Systems in London.

The Dorchester site offered Armatec the best value and opportunity to grow. The tax rate for new industry there is 2.98 per cent - very competitive for the region.  Land costs were also lower – a half to a third as much as comparable land elsewhere.

“We are thrilled Armatec chose Thames Centre as its new home,” said Thames Centre Mayor Jim Maudsley. “We see this initial investment as the beginning of a substantial area of growth. Council and staff have pursued an aggressive strategy to attract investments like this.”

Armatec has plans for a second phase in the form of an additional 120,000 square feet, as it continues to grow. As suppliers and other high-tech businesses are attracted to the location, the hope is it will create a hub of high-tech jobs and investment. 

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Invest in Middlesex Initiative

Aileen Murray, Manager of Economic DevelopmentThere’s a new economic wind blowing through Middlesex County, ready to fill the sails of businesses, large, small, established or brand new.

The most visible sign of the economic initiative is a new website, www.investinmiddlesex.ca, but that is just part of the story. Behind the scenes Middlesex County has been working for months to take stock of its resources, both material and human, and set up a system to promote investment and growth across the county.

“It’s very exciting. Middlesex County has so much to offer, and we’re going to spread that message throughout the county and well beyond it,” says Aileen Murray, Middlesex County Manager of Economic Development.

Middlesex County offers a small town community feeling, where businesses can find affordable land for expansion and inviting tax rates. They also can find an educated and talented workforce, a benefit of being so close to the University of Western Ontario and Fanshawe College, both world-class schools.

County staff kicked off the renewed commitment to economic development with a Corporate Visitation Exercise – holding a series of visits and meetings with more than three dozen businesses in the county. The visits also included various municipal staff, elected and county officials. The goal was to provide businesses with information on a variety of issues, including staff retention, skills training, business retention/expansion, access to capital and access to better information.

One of the first things to come out of the project was the investinmiddlesex.ca website, which was created based on input by county businesses.

The County’s Economic Development Department has also conducted an exhaustive survey of all properties available for industrial and commercial development within the County. The results form a database that will be updated regularly and is available on the new investinmiddlesex.ca website, under Available Property.

“Anyone from anywhere can easily see what we have to offer,” says Murray. “There are so many premium properties and opportunities, so it was important to compile them all in a database and make it available to prospective investors.”

“Our goal is to attract new business and investment but also to help businesses already here,” says Murray. “These projects were geared to exactly that, and the feedback we’ve had so far has been very encouraging. People love living and working in Middlesex County, and they are more than happy to tell their stories and help attract more investment. We’re here to help make that happen.” 

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Middlesex Tourism on the Way

It’s a case of perfect timing.

Helen Keenliside and Sheila Devost, Middlesex TourismJust as Middlesex Tourism received funding to expand its operations in the coming years, the province announced plans to create a series of regional tourism organizations that promise to boost the marketing efforts of tourist attractions across the province.

As a result, Middlesex County is ready to participate as a full partner in the Southwestern Ontario tourism region, known as Region 1.

“There are 13 regions across the province, starting here in the Southwest and stretching up to Northern Ontario,” says Sheila Devost, tourism development officer with Middlesex Tourism. “It’s a great opportunity for Middlesex to work with other communities in this region and help some of our tourist attractions market themselves.”

For several years, Middlesex promoted its tourism on a small budget, without a separate organization dedicated to the task. That changed in April, when Middlesex Tourism was incorporated. With funding from the Province’s Sand Plains Community Development Fund, the County was able to open its first independent tourism board, with a mandate to nurture and promote tourism across the county.

Middlesex Tourism operates from Community Futures Development office space in Kilworth, which helps keep costs down. Its three employees are working flat-out on at least two fronts: Firstly, they are contacting and working with as many tourist attractions and destinations across the County as possible, letting them know how the new office can assist them. Secondly, they are representing Middlesex at meetings of the new Region 1 organization, a collaboration of nine counties, each of which is represented by four individuals, two from the public sector and two from the private sector.

“We have 36 people making decisions,” says Devost, laughing. “So it will take some time to get organized, but already we’ve decided to go ahead with priority projects in each County.”

Devost is passionate about the county’s tourism sector. Prior to heading up Middlesex Tourism, she completed an extensive survey of the County’s tourism assets and wrote a business plan outlining the benefits that could accrue from a concerted effort at promoting tourism. Now she has her chance to make it happen, along with the other members of her team, Angie Johnston and Helen Keenliside.

Together, they work every day to organize and promote tourism attractions and events in Middlesex. The first steps, however, had largely been organizational. “We’ve been going to events and destinations, getting the word out about our new organization and also about the new Region 1 initiative,” Devost says. “It’s all about education and communication, both of which are very important. We’d love to help places coordinate their schedules so big events don’t occur on the same day or the same weekend.”

That’s the first step, but the mandate goes well beyond simple education and coordination. Working within Region 1, Devost looks forward to helping numerous tourist businesses secure provincial funds to promote themselves. “It’s a great opportunity, and we want to help people take advantage of it.”

There is lots of evidence that tourism in Middlesex is a vibrant industry. Devost and her colleagues are reminded of that every time they get a call for more Tourism Guides. The glossy, 54-page guide highlights many area attractions and has grown substantially since its 2004 inception. That year, it was black-and-white and only 36 pages. The current version is in high demand; nearly all 25,000 copies printed early in the year are gone. 

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Regional Strength in Southwest Economic Alliance

Serge LavoieThis summer’s Southwest Economic Alliance (SWEA) annual conference was the fifth in the short history of the organization, and it may well have been the most important. SWEA is now poised to deliver on the promise held in the people and resources of Southwestern Ontario.

Located right in the middle of the 15-county alliance is Middlesex County, itself poised to reap the benefits of SWEA.

“Our primary goal is to build the economy of Southwestern Ontario through regional leadership and cooperation,” says Serge Lavoie, president of the organization. “We’re trying to create a story, a voice for Southwestern Ontario.”

After a 30-year career working with a variety of trade and professional associations, Lavoie joined SWEA in August, 2009. His hire marked a turning point for the organization, which began in 2006 but didn’t incorporate as a non-profit group until 2008. Initially, it ran on the goodwill of volunteers, which was an affordable way to get started but not a realistic way to push forward and develop the organization fully.

Lavoie embarked on a two-year plan, spending the first year communicating with all the partners in the organization and moving toward the common goal of boosting the regional economy.

June’s annual conference was the unofficial launch of the second half of the plan, when SWEA tells the world about all the opportunities available within its borders. The conference featured several speakers, one of whom was pollster Allan Gregg. He presented the results of a study that polled Ontario business leaders about their perceptions of the SWEA region. Based on that information, Gregg recommended SWEA market itself as the talent centre of Canada, focusing on the educated workforce, affordable industrial land, low tax rates and easy access to U.S. markets.

Another speaker was marketing expert Terry O’Reilly, known by many for his
Age of Persuasion show on CBC Radio. He talked about the challenge of managing the multiple brands of the SWEA region. Within the 15 counties, there are six large cities, dozens of smaller municipalities and a diverse array of industrial development, agriculture and residential land use. It’s quite a mixture, much like Middlesex County itself, and Lavoie was taken by an analogy O’Reilly used when discussing the marketing of such a diverse area.

“He talked about a shish kabob, with a metal skewer holding together many diverse elements that make up the whole,” Lavoie says. “Each item on the shish kabob has its own unique qualities, and they retain them. But when you put them all together, you have a complete meal, with many elements that mix and match. Within SWEA, each part can work together with the other parts and we can concentrate on what links us together -- the quality of life and economic opportunities of the area.”

While many media reports have focused on the loss of industrial jobs within SWEA, Lavoie is determined to tell a different story. “There is so much growth in technology and R&D, with a talented workforce making it happen. The economy is in transition, and this area is adapting to that change very well. We have to get that story out and let people know what’s really happening here.” 

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Featured Property

Veltri Plant Glencoe73 Main Street, Glencoe

Sale Price: $2,200,000

  • 80,000 sf facility on 12 acres
  • Includes 4,000 sf office,and
  • 76,000 sf manufacturing / warehouse
  • 20' ceiling height

Contact: Carlos Petrilli, Flex-n-Gate (519.999.9656)

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