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Sandy and Judy Hines
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" Halifax Wins $25 Billion Shipbuilding Contract "
Halifax Shipbuilding Contract Information


On October 19 2011 Irving Shipyards was awarded a $25 billion ship building contract for the construction of over 20 ships for the Canadian navy.
The ships to be built include Combatant surface vessels including 3 destroyers, 12 frigates and 6-8 arctic patrol vessels. These ships will be built in Halifax. The contract will last for 30 years and according to a study by the Conference Board of Canada is expected to provide 11,500 jobs at it's peak. The contract is expected to generate $500-$600 million in personal income during peak and add 2.4% to provincial GDP. Jupia Consultants said that average income in the province will rise by $447 annually helping residents buy 750 more cars and 450 more houses.

Will this have a positive impact on real estate in Halifax Regional Municipality?
This is a question we have been asked many times since Irving was awarded the shipbuilding contract. The answer is yes but it is hard to say how much of an impact. Time will tell. There is one thing for sure it has created a "buzz" in the real estate industry and it has caused some buyers who were on the fence to move forward with their purchase. There is no doubt that the creation of thousands of jobs that will last over 25 years will keep the real estate market very strong for many years to come and will likely cause prices to rise. People have told us that some agents are saying that prices will rise 30-50% a year and personally we don't think that will be the case. A good year in Halifax price will rise 5%. It is conceivable that prices will rise at least that for several years. That is assuming the world economic climate doesn't worsen or interest rates rise. It is our opinion that the average price will rise between 5-10% over the next few years and will have a steady increase for several years afterwards. We don't believe that the increases will be high double digits but we do see the potential for increases of over 10% next year if the "buzz" continues and buyers start buying a faster rate that they have in the past.
If you are considering moving to Halifax for a job with Irving on the Shipbuilding Contract , we would like to represent you in your purchase.
If you would like to receive a Free Home Buyer;'s Package click here Request a Home Buyers Package

Best Locations to buy if you are working at Irving Shipyards
The irving Shipyard is located in at 3990 Barrington Street in downtown Halifax. If you live in downtown Halifax or the North End of Halifax you will be able to walk or take a short bus ride to work. The South End or West End of Halifax are also very close and would be a long walk or short drive. The prices are higher in the city of Halifax with the south end being most expensive, west end next and north end the lower of the three. See my Real Estate Prices page for more information,
There are many locations that would be a good commute. Clayton Park, Timberlea and Bedford are a short drive away as are most areas of Dartmouth. if you are looking for more space areas such as Hammonds Plains and Fall River would be a good bet.
Price and personal requirements often determine where people will locate. Contact us anytime to discuss what areas will be best for you if you are working at Irving Shipyards.

Shipbuilding Schedule

1) Negotiation of Umbrella agreement to be completed by end of 2011
2) Negotiation of Arctic Offshore Patrol Vessels contract- start in 2012 and end by end of 2012
3) Arctic Offshore Patrol Vessels design and engineering 2012-2013
4) Arctic Offshore Patrol Vessels production 2013 to 2020
5) Canadian Surface Combatant ships design and engineering 2015 to 2018
6) Canadian Surface Combatant ships  -2018-2041


Irving Comments about winning Halifax Shipbuilding Contract:

We are absolutely honoured to have been chosen by the National Shipbuilding Procurement Strategy to negotiate the right to build Canada’s next generation federal combat vessel fleet.
These past months leading up to the bid decision have been exhilarating and amazing. So many people from all over Canada have encouraged us and believed in us. Our incredible employees – the best shipbuilders in Canada, bar none – have been touched by the overwhelming support. We have so many people and organizations to thank.We’d like to thank our employees, first of all, because their excellence is a large part of why we were successful in this bid. As they put their expertise and skills to work for our customers every day, we will continue to build the quality vessels for our country’s men and women in uniform.
To every Nova Scotian and Canadian who supported us by displaying a lawn sign, wearing a lapel pin, clicking a link or sending us pictures and words of encouragement: we can’t thank you enough.
To the Province of Nova Scotia, Premier Darrell Dexter and all his colleagues, and to every member of the ShipsStartHere partnership: you have led a monumental community effort that truly demonstrates our pride, strength and confidence. Thank you for showing the world that ships start here.
We want to recognize our competitors for their professionalism, and for being worthy and respected colleagues in a demanding industry.
Thank you to the federal government for its leadership and vision in establishing the National Shipbuilding Procurement Strategy in June, 2010. This Strategy has now resulted in the creation of two centres of excellence for the construction of large vessels to deliver sustained value, productivity and skilled employment to Canada. This long term commitment to shipbuilding will avoid the boom/bust cycles seen in the past and will ensure sustained investments in the industry.
And thank you to all Canadians. As we move forward, negotiating the necessary contracts with the Government of Canada, preparing to build a bright future for our people and our region, and preparing to build the Navy’s new combat vessel fleet, we will not forget that you believed in us and supported us all along. We will work every day to continue to be worthy of your confidence.

Thank you,
Jim Irving, CEO & Steve Durrell, President
Irving Shipbuilding Inc.


Premier Darrell Dexter Press release re Shipbuilding Contract:

Thank you.
You showed the country that we were built to build.
To everyone who supported our winning bid - thank you.
Congratulations to Irving Shipbuilding and all of its employees. This win is a defining moment in Nova Scotia’s history, and your experience and skills are what clinched this victory.
The Ships Start Here Partnership knows winning is just the beginning. We’re ready.
The future starts here.

Darrell Dexter


Future of shipbuilding is high-tech
Plenty of jobs for white collar workers

By JOHN McPHEE

When you think of shipbuilding, images of burly guys and heavy equipment likely come to mind.But much of the work that will go into the $25-billion contract to build combat ships at Halifax Shipyard will be done at computer terminals and research labs.It is expected that about 1,000 people will be working in “white collar" positions for Irving at the peak of the contract, said company spokeswoman Mary Keith. This will include positions such as engineers, planners and accountants, Keith said in a recent email.That is likely just the tip of the iceberg when it comes to technological and related spin offs, education and marine sector experts said in recent interviews.
“I think some of the real benefits will come from the support and the companies that sprout up to provide the needed services outside the shipyard," said Greg Hebb, director of Dalhousie University’s school of business administration.“That would provide a huge opportunity for companies in Nova Scotia and Atlantic Canada to provide the services and the electronics, the technology part to it." The 30-year contract to build six to eight Arctic patrol ships and 15 Canadian surface combat ships will create about 11,500 new jobs, said the Conference Board of Canada. That will translate into more than $500 million in personal in­come during peak years and a $900-million boost to the gross domestic product.
Halifax Marine Research Institute, which acts as a liaison between the academic world, private industry and government on particular projects, helped Irving with its bid on the shipbuilding contract.The Dalhousie University institute gathered information on the number of local people who have expertise in specific fields such as information technology, said interim executive director Kevin Dunn.For example, like every mechanical object, a ship has a lot of moving parts.Each part will have a sensor to track its movement and computer programs must be created to handle that data, and all the other electronic information generated by a modern warship, Dunn said.“In computer science, (you have) visualization systems, data mining. If you’re interested in finding out about one little bit of information, you have to sift through terabytes of information to get to that one; you want to do that effectively as possible." In the physical world, there are the engineers who must come up with ways of manufacturing components as quickly as possible, Dunn said.
“Irving isn’t going to manufacture everything. There’s going to be a lot of components, high tech devices, monitors and systems that, in essence, the shipyard will be bolting together, but those components will be built by others."
This project is unprecedented, at least for Halifax, in that the work will be spread out over 30 years, said Bruce Tawse of the Nova Scotia Community College.“Certainly, there will technology changes, there will be advances in materials over the next few decades," said Tawse, vice-president of academic services. “So the companies and educational institutions will have to work together to try and address those (changes)."
For now, he is confident that the con­tract represents a huge opportunity for graduates of its programs, which range from business administration to information technology to occupational health and safety.
“It will certainly give a lot of focus for people who are looking to be part of that new economy," Tawse said. “And we’ll always be working with industry and government to make sure we’re offering the right programs at the right time and the right place."


Future for young workers is bright
Contract has potential to be game-changer, say experts

By BRETT BUNDALE--Business Reporter

She is the next generation of Nova Scotia shipbuilders.Dressed in steel-toed boots, safety glasses and a heavy-duty leather apron, Amanda Lohnes cuts through metal with a fuel torch.“Fire and sparks," she says, her eyes lighting up as she laughs, her blond dreadlocks falling over her shoulders.
Lohnes started a two-year metal fabrication diploma at the Nova Scotia Community College this fall after a brief introduction to the trade through Women Unlimited, a career program for unemployed or under-employed women.
Although the 29-year-old was worried that being in a male­dominated trade would be awkward, she says she is treated like “one of the guys."“I get to wake up every morning, drop my two little boys off at daycare and come here to play with fire all day," Lohnes says. “I love it. What more could a girl ask for?"A multibillion-dollar naval contract that guarantees good­paying jobs for over 30 years is a good start, she admits.“The shipbuilding contract means there will be good jobs for me right here in Nova Scotia."
Irving Shipbuilding Inc.’s $25-billion contract to build the Royal Canadian Navy’s next fleet of warships at the Halifax Ship­yard will double its workforce, sending demand for trades such as metal fabrication, welding and pipefitting soaring.
Jim Irving, chief executive of the shipyard, says the contract will create “the next generation of shipbuilders" and years of prosperity for the region.
For decades, Nova Scotian's have watched once glorious resource based industries fade into the sunset, with many forced to pack their bags and move out west for work.
But Nova Scotia young people now have promising job prospects on the horizon. Jim Muzzerall, academic chairman of the school of trades and technology at the community college’s Akerley campus, says many students are now hopeful they will find work in Nova Scotia.“I think it’s exciting for youth in Nova Scotia because it’s an opportunity for them to be employed here and not have to move around with the skills they have," says Muzzerall, a retired navy commander who wears a crisp shirt and tie under his industrial shop coat.“If there is no work here, they’ll go where the work is. But the big shipbuilding contract for 30 years means there is a solid chance skilled trades people will be able to stay here."
But beyond the thousands of jobs and countless spin offs, the epic contract has the possibility of changing a deep-seated have­not mentality that holds much of the Maritimes firmly in its grip, says Michael Haan, an associate professor at the University of New Brunswick.
“The more subtle implication is that it starts to reverse a mentality," says Haan, the Canada Research Chair in Population and Social Policy.“It starts to change a deeply rooted mindset that it’s hard to do well here."
Indeed, Donald Savoie, who wrote a report last year on economic development in Nova Scotia, called the shipbuilding contract a “game changer."“It will be a boost of confidence to the next generation," says Savoie, a professor of public administration at the University of Moncton.“It will be an anchor for the Maritimes."
The contract can “instil in Maritimers a sense of pride and accomplishment that they can do it here," he says.“This contract has the potential to give rise to an entrepreneurial spirit among youth." For Charles Cirtwill, president of the Atlantic Institute for Market Studies, success will come once Irving Shipbuilding gets contracts with someone other than the government of Canada and new businesses are launched as a result.
“Not everybody builds ships, so to really have a lasting impact we need to take advantage of this guaranteed workforce and solid base and maximize the economic potential."Elizabeth Beale, president of the Atlantic Provinces Economic Council, says the blockbuster shipbuilding contract is a boon to the next generation of workers. “What an opportunity to bring a lot of highly productive young people into the labour force quickly and allow them to just bolt ahead."
But Beale says as the “optimism and exuberance settles down," the focus will be on the shortage of skilled labour.The community college, designed to quickly respond to labour market demands, already has plans to ramp up training in high demand trades.
Yet Ellen Farrell, an associate professor at the Sobey School of Business at Saint Mary’s University, says it is important the workforce has skilled manual workers and highly trained technical workers. “The tradition has been to display shipbuilders as these brawny, strong steelworkers, but it’s really quite a high tech industry, so we need to make sure we have the entire gamut of workers trained and ready to go." However, Farrell said local colleges and university’s still have a fair amount of lead time to train workers. “It will be awhile before you will actually begin to cut steel."That is just fine for Tyler and Cory Bernard.
The 18-year-old twins started at the Akerley campus this fall in welding and metal fabrication, respectively.
“Ever since the contract came through, I feel like there is something out there for me to do after this," Tyler says. “Before, I was thinking I’d be heading out west after school, but now there are going to be so many jobs. I’m so excited to be done here."

Links to Halifax Shipbuilding Sites:

Irving Shipyards Halifax
Careers at Irving Shipyards
Ship Building Careers on Career Beacon.com
Shipbuilding Training Opportunities at Nova Scotia Community College (NSCC)

Google Map showing location of Irving Shipyards

 

 

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