Economy: Atlantic Canada’s information and communication technologies sector rapidly expanding, but region must spend more, latest APEC report reveals
By John Pollack
For the Telegraph-Journal
Atlantic Canada’s information communication technology sector has expanded by almost 50 per cent over the last decade, but the rgion needs to spend more on technologies, states an Atlantic Provinces Economic Council report released Tuesday.
The ICT industry contributed an estimated $2.65 billion to the regional economy in 2008, 3.7 per cent of GDP, up from 2.5 per cent in 1997, a 48 per cent increase.
New Brunswick was slightly ahead of the average at 3.9 per cent, up from 2.7 per cent.
But the East Coast lagged behind the national average of 4.4 per cent of GDP in 2008, up from 2.9 per cent in 1997.
Despite the comparative position, David Chaundy, the think-tank’s chief economist, said the regional growth is a positive trend that must continue.
“Where is the potential growth in this region coming from?” Chaundy said. “ICT is going to be an increasingly important part of the global economy.”
As the world becomes more computerized and technology becomes more advanced, companies producing the goods and services will generate more wealth for their region.
These technologies can also make any business more productive, but some companies in Atlantic Canada aren’t buying enough of the products and services, Chaundy said.
Organizations spent $1,690 on ICT per worker on average in 2007, only 80 per cent of the national $2,110 ICT investment per worker.
“We’ve slipped behind the rest of the nation in terms of investments on software, computers and other technologies,” Chaundy said. “We’re going to slide further behind if we don’t catch up.”
New Brunswick spent the least on technology at $1,630 per worker, but Nova Scotia helped bring the average down as well only spending $1,670 per employee, while Newfoundland and Labrador and P.E.I. spent $1,770 and $1,860 per worker, respectively.
“New Brunswick has had a history of leadership in the telecommunications sector,” Chaudy said referring to the McKenna-era call centre boom. “But are we still seeing the broader ICT investment?”
This is a top concern for the New Brunswick IT Council.
The three-month old organization will develop a program throughout this quarter to encourage more ICT investment.
“We’re going to work on communicating the opportunities technology can bring,” said Scott MacIntosh, co-chairman of the council.
Richard LeBlanc, president and chief executive of the New Brunswick Business Council, said ICT workers are important to all businesses.
“It’s not just ICT companies but ICT positions within various sectors,” he said.
He wouldn’t comment how much ICT investment is needed because his organization hasn’t studied it, but he said it is important.
“We have to look at ways we can retain our employees and one of the ways is to invest in on-going education, leadership training and IT,” he said. “I would see investment in IT as investment in the future growth of our sectors in New Brunswick.”
The APEC report said that the region has 2,000 firms employing 32,000 people, paying them about 20 per cent higher wages than the average for all other industries.
Given these numbers, LeBlanc said the sector’s growth is encouraging and needs to continue.
“Do we need more high paying jobs?” he said. “Absolutely.”
New Brunswick’s ICT share of provincial GDP, 3.9 per cent, is ahead of Newfoundland and Labrador, 2.8 per cent and P.E.I., 3.0 per cent, but behind Nova Scotia, 4.3 per cent.
The IT council is happy with the growth so far and is planning programs to help continue to expand the sector.
Statistics Canada puts New Brunswick’s ICT percentage of the GDP at 3.8 per cent while the province quotes nine per cent.
The numbers can vary depending on what is considered ICT. Larger figures often include contact centers, which provide services over the phone and internet, but many of those products and services may not considered information communication technologies.
