The city’s famous steel mills fall under the strengthening morning light. Further west, Hamilton’s industrial harbourfront gives way to parkland. The sun shimmers on calm recreational waters as sailboat enthusiasts greet the new day.

        Behind the city skyline, past lower city parks and neighbourhoods, a stretch of the Niagara Escarpment emerges from shadow, its steep sides and rocky cliffs reminding everyone why this section of escarpment is better known as Hamilton Mountain.

        Visitors to Hamilton are often struck by how attractive the city is. Its vistas, parks and pleasant neighbourhoods can quickly dispel any lingering, outdated images of Hamilton as a gritty centre of heavy industry.

        Yes, the city is proud of its heavy industrial heritage, prouder still that it remains home to many heavy and light industries. And Canada’s Steel City is more than a little proud that it’s home to the nation’s two largest steelmakers, Stelco Inc. and Dofasco Inc. Many millions of dollars in technology investments have made the steel giants efficient, high tech companies that produce more tons of steel per man-hour than most of their rivals.

        Yet, while the steel industry and support industries remain a major source of employment in Hamilton, the city’s economy has steadily diversified over the years. The health care services sector now employs more people in Hamilton than any other sector.

        And this is one of the most livable cities in the world. It boasts an abundance of parks, numerous festivals, a recreational waterfront, relatively little traffic congestion, less pollution than many other major cities, low unemployment, affordable housing and an overall quality of life that is the envy of many communities.

        The city is also a major centre of commerce and has seen a proliferation of shopping malls and ‘box’ stores spring up in recent decades within the city proper and its suburban communities, which include Ancaster, Dundas, Flamborough, Glanbrook and Stoney Creek. With Hamilton itself, they comprise Hamilton-Wentworth region, a regional municipality with a population approaching half a million people. Burlington and Grimsby are also often included as part of Greater Hamilton.

        By the late 1990s, the population of Hamilton-Wentworth approached 470,000 people – more than 320,000 of them residing in Hamilton itself.

        Add in the interdependent and interconnected regions of Halton and Niagara and it’s apparent Hamilton is the economic and geographic hub of an economic region of more than 1 million people.

        The borders of this vast economic region are also somewhat elastic and can include Hamilton-Norfolk lands to the south, Grimsby to the east and Brant County to the West, increasing the population to more than 1.2 million.

        Hamilton is at the heart of a community of communities, a Hamilton-centred hinterland of shared geography and economic interests. And this economic region boasts a highly diversified economy, including everything from soft fruit growing and winemaking, to heavy industry and high tech companies.

        Nick Catalano, economic development director for Hamilton-Wentworth region, is at the forefront of efforts to help Greater Hamilton realize its rich potential.

        Catalano is focusing on how Hamilton can best take advantage of its enviable position at the hub of one of North America’s most densely populated international markets. Within a 500-mile radius of Hamilton, about a day’s drive, is a total market population of 120 million people.

        “We’re successfully getting the message out that, as proud as we are of our steel industry, there’s a whole lot more to Hamilton than steel,” Catalano asserts in an informative interview at his downtown Hamilton offices.

        Catalano notes international business ties are being developed through the Bordernet organization promoting importing and exporting with the U.S.

        “Hamilton companies now export more than 50 per cent of the goods and services produced in this city,” he states with pride. “Most of these exports are to the United States. There’s a tremendous about of cross border trade that takes place here.”

        Indeed, Hamilton is also a major shipping centre with one of the nation’s busiest harbours. U.S. Air at Hamilton Airport continues to service the city’s international air traffic needs and the airport is today a major hub for cargo/courier services. Hamilton’s international connections appear destined to continue growing in years to come.

        Catalano also points to emerging opportunities within Hamilton itself.

        Brownfields, vacated or underused lands that once housed industries, are giving rise to new companies and new sources of employment, he notes.

        One of the most striking examples of a virtual brownfield being transformed into a bustling centre of commerce can be found on Hamilton’s industrialized waterfront.

        An entire community of small businesses has now found a home in old, previously vacated factories and warehouses that once were used by industrial giants.

        This industrial park space is now being leased by the Hamilton Harbour Commissioners at low rental rates to an array of tenants, including De Feo’s Auto Service Ltd.

        Owner Sergio De Feo has steadily expanded his business, establishing several service bays in a former industrial warehouse. De Feo’s, at the foot of Hillyard Street, has become a favoured location for expert auto repairs at reasonable rates.

        Numerous other businesses have made their home in the immediate area, including McKeil marine and Heddle Marine. Both firms are given profile treatment later in this chapter.

        The new, information age, economy is also bringing new job opportunities. Montreal-based Media Express has set up a Hamilton fibre optic call centre operation at Lloyd D. Jackson Square, creating 450 jobs.

        Catalano notes efforts are underway to develop Hamilton’s ‘smart community’ potential, via uplinks to satellite linkages, allowing doctors many miles apart to have a fibre optic consultation on television screens. A diagnosis or patient information can be shared instantly via multimedia, telecommunication uplink technology.

        John Dolbec, executive director of the Hamilton & District Chamber of Commerce, notes two other firms, Cogeco and Union Energy, are joining Media Express in establishing call centres in Hamilton.

        “Altogether, between the three companies, we’re looking at something in order of 900 jobs,” Dolbec smiles in an interview at the Hamilton & District Chamber of Commerce office.

        “That level of job growth is impressive,” Dolbec adds. “It means that even with the lose of hundreds at Procter & Gamble, M.A. Henry and J.I. Case, we still have a net gain of jobs from call centres alone.”

        That such dynamic endeavours would locate in downtown Hamilton shouldn’t be surprising. The city’s core boasts an abundance of available space at relatively low rates.

        Although still struggling in places, Hamilton’s downtown is seeing many millions of dollars in investment, including the renovated John Sopinka Unified Family Court House, renovations to the old Spectator building and the development of downtown condominium buildings.

        The Royal Connaught, Howard Johnson Plaza Hotel has also undergone millions of dollars worth of renovations and the Sheraton Hamilton is playing a vital economic role in revitalizing the downtown core. Both hotels are profiled later in this chapter and further information on these and other companies can be obtained by calling the telephone numbers listed in the directory at the back of this book.

        “Hamilton’s downtown will eventually reinvigorate itself,” Catalano suggests, “because it offers reasonable lease rates, it’s a destination location for entertainment and its economy continues to diversify.”

        “There are phenomenal opportunities downtown,” he adds. “The realty prices are low, the problems are solvable and the potential is great.”

        Catalano also notes the city’s entire economy has diversified. After years of downsizing, the big industries seem to have found an employment balance and they remain a secure source of existing jobs. The Manufacturing sector is vibrant, the health care and education sectors are growing and the entire services sector is expanding.

        Hamilton’s unemployment rate – just 4.2 per cent in the summer of 1999 – is often the lowest in Canada. Labour force participation rates are growing and the local economy generated 13,000 new jobs in the first few months of 1999 alone.

        “We’re certainly doing everything possible to foster the image that Hamilton is a good community to invest in,” says Catalano. “We have the lowest unemployment rates anywhere, a highly skilled labour force, a great quality of life and, compared to many other centres, the cost of doing business here is low. We also offer fast, convenient access to other markets in Toronto and the U.S.”

        To Catalano, Hamilton offers all of the amenities of a major city without many of the often-attendant problems of congestion and stress.

        “In every area you can possible think of, Hamilton continues to provide an enviable place to live, work and play.”

        Catalano also observes that the community has become a well-organized whole with once-distant institutions regularly conferring with each other to devise programs that can best exploit the new commercial and employment opportunities a changing business world is offering.

        His own department is in regular contact with the Hamilton & District Chamber of Commerce, Mohawk College, McMaster University and the Greater Hamilton Technology Enterprise Centre (GHTEC) which is 98 per cent leased and serves as an incubator for start-up high-tech firms.

        “It’s a terrific alliance - there are no turf wars anymore,” Catalano proudly states, “just a common desire to work together to solve our problems and help our community prosper.”

        Lee Kirkby, a former executive director at the chamber, agrees.

        “There’s a strong sense of everyone working together to face common challenges – you don’t find that in very many communities.”

        Dolbec, the 1999 executive director, concurs and stresses the importance of finding ways to match job skills with job needs.

        “We’re frequently faced with shortages of skilled labour,” Dolbec notes. “Anyone with marketable skills – particularly skilled trades people such as tool and die makers, electricians, carpenters and machinists - are finding it relatively easy to find work,” he adds.

        Dolbec notes many skilled trades people are middle-aged or older and there is no new generation of skilled trades to replace them.

        “The demand for new skilled trades people is there – the supply isn’t. It’s important that we find ways, develop programs, to create the skills that are needed in our community.”

        Dolbec notes Ontario Flightcraft could have expanded but it was unable to take on more orders because the company needed 45 to 50 skilled people and couldn’t find them. Instead, the firm turned away the orders and laid off some of its staff.

        “It’s unfortunate that some firms are losing business because they lack skilled trades people and the jobs are going begging.”

        Dolbec says the Ontario-wide shortage of skilled trades presents a huge opportunity for those people willing to learn a trade.

        “Unfortunately, not many young people are eager to get into the trades. There seems to be a stigma about working with your hands, despite the fact that many of these jobs have starting salaries of $50,000 or more.”

        He says Europe’s strengthening economies have made immigration less of a solution than ever to the skilled trades shortage.

        “Business hasn’t done enough to train future generations and it’s coming back to haunt us,” he adds.

        “However, there are genuine efforts underway to address this problem. Businesses are working closely with community colleges to create and promote programs to create the skills.”

        Dolbec takes heart in the work being done to ensure a new generation has the option of going into a trade.

        “There’s more of a willingness and effort to address these problems than there perhaps has been in some time.”

        Catalano likes the community spirit he’s encountering.

        “The general mood in this community is one of confidence and optimism,” Catalano asserts. “With all the downsizing and upheaval that has occurred everywhere, Hamilton has emerged with a stronger, more diversified economy. We’re in a good position to take on any challenges the new millennium may bring.”

        Dolbec says Hamilton’s favorable position is owed in part to it geographical location in the huge Southern Ontario market with access to the even greater U.S. market.

        He says the Canada-U.S. Free Trade Agreement and North American Free Trade Agreement have succeeded in giving Hamilton companies unfettered access to the American market.

        “There were concerns from some that free trade would cost jobs. What we’ve found instead is that free trade has saved jobs and created jobs.”

        Dolbec observes that one of the primary beneficiaries of the FTA has been Hamilton’s manufacturing sector.

        “Hamilton still has a very strong manufacturing sector,” he notes. “Manufacturing is still the leading source of existing jobs and new jobs throughout Hamilton-Wentworth.”

        But the service sector is experience phenomenal growth, he adds.

        “Services oriented companies have gone from accounting for 34 per cent of the chamber’s membership to 50 per cent in the past four years while manufacturing members account for 16 per cent,” he notes. “Yet manufacturing overall is still the leading source of all jobs.”

        “That may sound surprising,” Dolbec admits, “because Stelco and Dofasco only employ half the number of people they employed in the early 1980s. But a lot of the new jobs are coming from young and growing manufacturers.”

        “For example,” he explains, “Décor Pre-cast, which makes patio stones, has gone from 40 employees to 130 and its sales to the U.S. have quintupled in past four to five years.”

        Dolbec asserts that most of the growth in manufacturing jobs has occurred outside the steel industry via an abundance of small manufacturers each employing fewer than 100 people.

        “We’re also seeing growth in services in general, high tech industries and, information services,” he adds.

        “And entrepreneurs are creating many of these new jobs. People getting into business on their own are creating their own job plus additional jobs for other people.”

        The chamber has 2,700 members, of which 1,100 are companies and 1,600 are individuals. Small businesses, including home-based businesses, now constitute the fastest growing source of members at the chamber and this has led the organization to devote more time and energy representing the concerns of small business.

        That change in approach reflects a societal reality: Small businesses dominate the new age economy.

        Dolbec observes that small business remains the primary source of new jobs “and that’s probably a good thing. It would seem to be healthier to depend on many small companies for jobs than rely on one or two big firms to create employment.”

        He says that with growing numbers of entrepreneurs and small businesses starting up and thriving, the economy is becoming more and more diverse.

        “Diversity is a real strength. You’re not as dependent on one or two sectors of the economy or one or two companies to keep you going. Economic changes that hurt some companies may not hurt others. Having a diversified economy means you’re in a better position to withstand an inevitable recession.”

        Dolbec says diversity is just one of the competitive advantages enjoyed by the Greater Hamilton area.

        “Some of our other strengths include the ability of many of our companies to make specialized products and services for niche markets,” he notes.

        “We also benefit from a low-valued dollar which helps our exports compete abroad, our low real estate costs, and our lower costs of doing business,” he adds.

        “When you look at all of our strengths, it’s apparent that our economy is healthier now than perhaps it’s ever been. We seem to be in pretty good shape going into the new millennium.”