International exports increase in 2007

February 28, 2008

(Red Deer, Alberta) – An increase in Red Deer’s international exports is helping to build a strong foundation for economic growth, according to a Red Deer Regional Economic Development (RDRED) 2007 Manufacturing Survey.

“The study shows manufacturers have capitalized on new technology and are expanding their sales market despite recent economic challenges,” said Cyril Cooper, Land & Economic Development Officer for The City of Red Deer. Some of these challenges include a strong Canadian Dollar and a slowdown in the natural gas industry.

In 2006, 18 per cent of survey respondents were exporting internationally while in 2007 this number had increased to 50 per cent. Sales to international markets increased 33 per cent to $1.27 billion from $950 million.

Overall manufacturing sales of $6.2 billion remained constant through 2007 with a growth rate of 0.03 per cent or $2.1 million more than the sales reported in 2006. Dental and health, primary metal/fabrication metal, and wood and furniture experienced the most sales growth in 2007. Manufacturing sales increased 89 per cent over the five years when they were reported at just under $3.3 billion.

“Manufacturing is an integral part of the Red Deer economy and the increase over the past five years sets our region apart. We will continue to work to establish the Red Deer Corridor as Canada’s economic capital. It supports our plan to move forward with a three-year strategy to attract and retain investment, business and labour in the Red Deer region,” said Cooper.

The study also shows the Red Deer region developed significantly over the past five years with a 48 per cent growth in payroll; 26 per cent increase in the number of manufacturing jobs; and 25 per cent increase in average annual and hourly wages.

In the last year, manufacturing purchases have remained stable with a 0.03 per cent increase to $3.1 billion. Even with a slow down in the economy, local purchases of $1.45 billion remained strong with 47 per cent of total purchases in 2007. Alberta purchases have increased 9 per cent to $1.26 billion. Fewer than 5 per cent of suppliers’ goods were bought from the United States and international markets.

“Red Deer companies are encouraged to purchase goods locally to improve import replacement opportunities, retain dollars within the community, and save on transportation costs. Business retention and expansion means encouraging companies to stay and grow in the Red Deer region,” said Cooper.

Red Deer manufacturers paid out nearly $388 million dollars in salaries in 2007, an increase of 2 per cent. This increase is due to critical labour shortages and companies increasing salaries to attract and retain employees. Average salary and average hourly wages both increased 5 per cent.

The survey is published each year to give business leaders a broad view of trends and developments in the local manufacturing industry. It was distributed to 219 local manufacturing companies with a 68 per cent response rate. More information about the 2007 Manufacturing Survey is available in the Red Deer Prospects Newsletter at www.RedDeerCorridor.com.

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For more information, please contact:

Cyril Cooper
Land & Economic Development Officer
The City of Red Deer
(403) 342-8105