June 4, 1999
To:Economic Development and Parks Committee
From:Joe Halstead, Commissioner Economic Development, Culture and Tourism
Subject:1999 First Quarter Business Development & Retention Client Activity - All Wards
Purpose:
In accordance with the 1999 Economic Development Division Work Plan this report provides a summary of the Business
Development and Retention Section's first quarter completed investment projects and related business activities.
Recommendations:
It is recommended that:
1.this report be received for information.
Council Reference/Background/History:
The activities of the Business Development and Retention Section during the first quarter were dedicated in part to
administrative duties such as staffing positions and providing training. Nonetheless, staff initiated the requirements of the
1999 Work Plan by undertaking corporate calls and company contacts, providing real estate information, facilitating sector
development activity, representing the City at business associations, Chambers of Commerce and other business groups, as
required.
Comments and/or Discussion and/or Justification:
Business Development and Retention is one of the four core areas of Economic Development's responsibility. The
Program has a crucial role with respect to working directly with the City's major employers, rapidly expanding companies
and key strategic economic sectors which is achieved primarily through a corporate calling program to ensure that
companies are able to successfully grow and operate within the City. Ongoing company contacts with individual
businesses, business and sector associations, other governments and the real estate community allows the Division to
effectively inform our clients about municipal issues, policies and programs that affect business operations, opportunities
for new investment, strategic alliances and export development. In turn, our ongoing relationships with businesses ensure
that Council and other municipal departments receive feedback and intelligence from the business community that will
help maximize the economic development opportunities in the City and safe guard its ongoing prosperity.
It is a general rule of thumb that more than 80% of the business investment is initiated by existing business. Business
retention programs such as corporate calling provides a valuable source of referrals for new business investment and
testimonials to the success of a community. Trends such as, global competition and the introduction of new technologies
has increased importance of business retention and development efforts as business attempts to improve efficiencies and
adapt to a changing competitive environment.
Corporate calling is proactive company visitation undertaken by Business Development & Retention staff and is a primary
source of development leads and opportunities to influence investment decisions. The purpose of the call is to facilitate
communication and to assist Toronto firms with business opportunities. A corporate call is similar to a sales call and
provides an effective opportunity to gain understanding on future corporate plans and to facilitate those plans in a Toronto
location.
The following highlights the Section's activity as it relates to corporate calls, company contacts and major real estate
transactions.
Corporate Calls and Company Contacts
Business Development and Retention staff have monthly corporate calling and reporting targets. Corporate calls are
meetings arranged by staff with senior executives of local companies. The purpose of the corporate call is as follows:
(i)introduce a company to the services the City can provide;
(ii)offer assistance where applicable (e.g.: site selection, export development assistance information on government
programs);
(iii)trouble shoot on issues of concern (e.g.: permits and applications);
(iv)foster a personal relationship between business in the community, City Hall and Senior levels of government through
superior customer service;
(v)determine future follow up and evaluate potential opportunities for new investment or change in status;
(vi)report results on a monthly basis and document activity, trends, intelligence and issues in the Division's contact
management system.
Every month staff target specific companies for corporate calls. Economic Development Officers (EDOs) located in all
four Gateway Offices have pre-assigned Wards for corporate calling. An organization chart, ward map with corresponding
staff responsibilities is attached for your reference. Ward Councillors are encouraged to refer business inquiries to the
appropriate Business Development & Retention staff and are welcome to participate on company visitations with staff. In
addition to calling on companies in the Ward, EDOs are also required to assess and inventory location/development
opportunities, comment on planning and building applications and respond to investment inquires.
In addition to Gateway Offices, Business Development and Retention has Sector and Strategic Partnership staff calling on
companies on a business sector basis. The Sector Development Officers (SDOs) also work with sector associations and
industry experts to gather intelligence, influence policy, export development investment and strategic alliance in the
following business sectors:
(i)Information Technology & Telecommunications
(ii)Biotechnology, Medical and Pharmaceutical
(iii)Fashion, Apparel & Design
(iv)Food, Beverage and Packaging
(v)Tourism
Corporate calling and company contact activity represent approximately 35% to 40% of the time allocation for business
development and retention staff with most EDOs and SDOs having targets of 100-120 corporate calls and 200-220
inquiries (company contacts) annually. Both activities are extremely time intensive to provide an appropriate level of
follow up and customer service. It is quite common that client follow up activity on an individual business investment
decision can take a year or more. Client activity through trade shows, association and networking activity occurs over and
above the targets identified. In addition, most EDOs and SDOs have related research, reporting and sector related activity
included in their work plans. A summary of sector specific initiatives will be highlighted in our 2nd and 3rd quarter activity
reports.
Corporate calls by EDOs and SDOs are strategically determined to maximize the time spent on client activities, to provide
appropriate follow up and build relationships with businesses that will have the greatest impact on the City's economy.
Criteria used to assess targets for corporate calls include the following:
(i)size (companies with more than 10 employees);
(ii)companies requesting a corporate call;
(iii)companies expecting to make a capital investment, or at risk (companies relocating, downsizing or closing);
(iv)companies that serve international and national markets (exported products/services);
(v)companies identified through networking and referrals ie. realtors, business associations and senior levels of
government.
Company contacts are unsolicited business inquiries referred to Economic Development staff requesting assistance or in
response to immediate issues. Company contact activity depends on the ability of Economic Development staff to
communicate our services and problem solving capabilities to the business community as well as other internal and
external stakeholders. Economic Development is committed to providing superior customer service that is reflected in
consistent follow up and time sensitive response. As a result, Economic Development Staff are conducting orientation
sessions with numerous stakeholder groups and have prepared a two-fold business services brochure for distribution to all
clients and stakeholders.
By the end of the first quarter, staff had conducted the following.
Economic Development staff are in the process of building a contact management system to track activity, share and report
on the results across all economic development programs. The system begins with an employer data file that must be
compiled for the City and allows for the recording of specific activity and results of staff intervention. A system currently
in use at the East Gateway Office is to be rolled out across all Economic Development Offices in the third quarter of 1999.
During the first quarter of 1999, corporate calling and company contacts generated several business expansions, relocations
and start up operations. Occupancy of more than 530,000 square feet of industrial space, and the creation of 646 new jobs
and the retention of 528 existing jobs is reported in ten business investment projects. Staff involvement, as well as an
explanation of the nature of the business investment and key contact information, is reported on the attached Investment
Activity sheets.
An example of staff involvement included the provision of assistance to Intergen Biomanufacturing. The sector
development officer responsible for Biotechnology/Pharmaceutical/Medical sector had worked with the company
extensively over the last 3 years assisting with such issues as zoning regulations, Human Resources training and taxation.
Meetings with the CEO from New York to discuss the merits of expanding the operations were also held, resulting in a $10
million investment in a 50,000 square foot facility, creating up to 20 new jobs and retaining 32 existing jobs.
Business Development and Retention is a critical component of the Economic Development Division that effects business
operations and opportunities for new investment. Corporate calling and company contact activity is the most direct method
of intervention by Economic Development staff to influence business investment decisions. With over 80% of the new
business investment being driven by existing business, a significant level of staff and budget resources is being directed to
this program.
The first quarter of 1999 was a transition period as Economic Development staffed up. Future reports will measure
corporate calling and investment activity in relation to performance targets set out in the Work Plan. Councillors are
encouraged to refer business inquiries to appropriate Economic Development staff and to participate on the division's
corporate calling efforts.
