Nova Scotians Benefit as Shipyard Work Begins
August 21, 2013
Irving Shipbuilding announced today, Aug. 21, that site preparation and preliminary construction is well underway in the Halifax shipyard, as the province gets ready to build Canada’s next fleet of combat ships. Major demolition and construction will begin soon.
Contracts worth $127.7 million have already been awarded, creating around 733 full-time direct and indirect positions within selected suppliers and subcontractors, 370 of those in Nova Scotia.
“Building these ships here means jobs for Nova Scotians — jobs for those who are already here, and those who for so long have had to work away,” said Premier Darrell Dexter. “It means work for local businesses, and a better economy for Nova Scotians to raise their families.”
The contracts for the yard modernization program awarded to date will generate $26 million worth of employment income within the province over the two year period leading up to the beginning of production in 2015, with an additional $32 million across Canada over the two years.
“We can be very proud of the work we are doing to strengthen the Canadian economy while building a world-class facility that will ensure the men and women in our Canadian Forces go to work on the best ships possible. As we have already proven — Nova Scotians are up to the task.”
Irving Shipbuilding will invest about $300 million in yard upgrades, designed to ensure facilities are ready for the production of the Arctic Offshore Patrol Ships (AOPS), scheduled to start in 2015, and the larger combat ship contract scheduled to begin production between 2020 and 2022. There are close to 80 Nova Scotia suppliers involved to date.
“We’re a remediation company, and while we wouldn’t have any involvement in the actual shipbuilding, we can be heavily involved in getting the yard ready to build those ships,” said Glenn Clark, president of Clean Earth Technologies. “This contract gives us the resources and exposure to deliver on this opportunity and to expand our business to serve Quebec and Ontario, and hopefully the rest of Canada. I would encourage other businesses to consider whether there may be opportunity for them too.”
“The selection of suppliers for our modernization program is the result of a rigorous procurement process where we assess quality, reliability, experience and cost to select the company that will help us deliver the best value to Canada,” said Jim Irving, co-CEO, J.D. Irving, Limited.
“Throughout the NSPS contracts, as well as the preparations leading up to them, we are committed to maximizing opportunities and benefits for Canadians and Nova Scotians through subcontracting, employment and the generation of investment and benefits within the broader marine industry.”
Based on an economic impact assessment prepared by Jupia Consultants Inc.,the yard upgrades alone are expected to boost Canadian gross domestic product (GDP) by $235 million, create about 1,720 full time equivalent positions across Canada and generate $136 million worth of employment income in the country over the two-year period. It will also lead to more than $102 million worth of consumer spending. In addition, the economic activity is expected to provide about $50 million worth of taxes for federal, provincial and local governments over the two year period.
Upon completion, the modernization project will result in one of the most modern shipyards in North America.
Overall, according to the Conference Board of Canada, the shipbuilding contracts will mean an additional 11,500 jobs for Nova Scotians and will increase the province’s GDP by almost $900 million during peak production years. The Canadian economy is expected to grow by $1.5 billion, and 4,500 jobs will be created outside of Nova Scotia.
On Monday, Aug. 19, the board released its provincial outlook which highlighted the anticipated impact the shipbuilding project will have on Nova Scotia’s economic growth. The report also noted that the dry-dock expansion and other activities in preparation for the shipbuilding contract will contribute to an expected boost in construction activity in Nova Scotia. According to the board, the yard modernization will help propel Nova Scotia into the top three provinces in economic growth in 2014.