Dieppe, NB, June 24, 2024

In February the New Brunswick Business Council (NBBC) commissioned David Campbell of Jupia Consulting to perform an analysis of the province’s export and manufacturing sectors, its historical impact and its declined position in today’s economy. Mr. Campbell presented the findings of the report before nine of the province’s leading business and economic development agencies. 

These include:

• The Conseil économique du Nouveau-Brunswick.

• The province’s leading chambers: Saint John Region Chamber of Commerce, the Fredericton Chamber of Commerce, the Chamber of Commerce for Greater Moncton.

• The leading economic development agencies: Envision Saint John: The Regional Growth Agency, Ignite Fredericton, Economic Development: Southeast Regional Service Commission 

• Canadian Manufacturers & Exporters.

Mr. Campbell’s Report, Growing the export economy: Key to New Brunswick’s future prosperity (NBBC Campbell Report), is a call to action for government and the private sector that business investment is vitally needed to improve productivity in our export and manufacturing sectors. The NBBC is concerned by the state of the provincial economy. Economic growth has been lackluster in recent years and private sector investment is insufficient to foster growth. 

“The Council is troubled by the ongoing absence of discussion on economic issues within the public discourse, which, in part, caused the Council to engage Jupia Consulting to undertake this work,” stated Denis Caron, CEO of the Port of Belledune and next Chair of the NBBC .

The NBBC Campbell Report provides key data points on the state of the NB Economy as well as a number of key recommendations. The Report’s findings conclude that significant capital expenditures (capex) in equipment, robotics, and digitization is required for New Brunswick to return to a competitive position that addresses the province’s deficit in trade. 

The Council and the nine business and economic development groups who support the messages found in the NBBC David Campbell Report, are concerned by the underlying challenges within the economy. “These challenges are masked by the growth in population and the accompanying Federal transfers from equalization that are allocated on a per capita basis, meanwhile, private sector growth is lacking,” stated Blair Hyslop, Co-CEO of Mrs. Dunsters.  

Mr.Hyslop added: “The report though is just the start of the conversation, it is meant as a vehicle to start conversations around the findings and create dialogue about how we can collectively, industry and government and agencies, focus on GDP growth In the province. The conversation is just beginning. We see this an opportunity to amplify the good efforts of ONB and others and to create a better New Brunswick.” 

The ten highlights from the Report are found below. The Council, and its partners, however agree that the province to needs to accelerate its efforts on item 9 to support existing industries in the short term.  

For further information: New Brunswick Business Council 506-650-1372

Denis Caron, CEO Port of Belledune, 506-522-8048

Blair Hyslop, Co-CEO of Mrs. Dunsters,  506-343-4335

Report highlights

1. For nearly two decades, the public sector has been growing faster than the private sector in New Brunswick. 

2. Average annual private sector economic growth dropped from an average of 3.3% from 1997 to 2006 to only 0.5% over the next 17 years through 2023.  

3. A main reason for the weak private sector has been weak exports growth.  The trade ‘deficit’ in New Brunswick is now in excess of $8 billion (the value of imports exceeds exports by more than $8 billion).  Between 1980 and 2005, New Brunswick’s trade position was essentially even.

4. Over the long term, exports growth in New Brunswick is highly correlated with private sector economic growth.

5. Business investment is also well below the long run average in New Brunswick with specific industries such as food manufacturing, fishing, transportation and utilities considerably under-investing compared to their peers across the country. 

6. Many of these same industries are considerably less productive than their peers across the country and in the United States. 

7. The workforce in New Brunswick is growing again but there is still some misalignment between supply and demand particularly with immigrants to the province. 

8. Other jurisdictions are spending a lot more money on economic development.  New Brunswick ranks 10th among the provinces for subsidies to industry relative to economic output. 

9. To support existing industries in the short term, government should 1) create an investment tax credit for companies that invest in automation  and  digitization; 2) ensure there is an accelerated path for employers to recruit specialized workers from outside the country and 3) match the housing incentives that other Maritime Provinces are using to stimulate housing development.

10. In addition to supporting the growth of local firms, the provincial government should be looking at new economic opportunities that could have a significant GDP, income and tax impact similar to growth industries of the past.  These could include mining, green energy, AI/data centres and other opportunities. \