London Inc. Weekly

Weekly Regional Business Intelligence

Written by Kieran Delamont, Associate Editor, London Inc.

Mass timber manufacturer Element5 gets provincial cash injection

The provincial government is investing $3.46-million in St. Thomas-based mass timber manufacturer Element5. The announcement was made on Tuesday morning, where company and political officials said they expect the investment, earmarked to expand Element5’s production facility by 68,000 square feet, to triple production and revenues, increase exports sixfold and create 32 new jobs. “With more space and new equipment, Element5 will be able to meet growing demand for their high-quality products and get more building projects done quickly and efficiently,” said Ontario Natural Resources and Forestry Minister Graydon Smith. Element5 president and CEO Patrick Poulin said the provincial investment “reflects our shared vision to position Ontario as a leader in advanced wood construction and manufacturing, not only in Ontario, but across Canada and North America.”

The upshot: Element5 has been strategically positioning itself for what it hopes will be a boom in mass timber construction for residential towers. Also on Tuesday, the province made some moves on that front, opening a public feedback process on its Advanced Wood Construction Action Plan, which reports suggest will alter the building code for all-wood mass timber towers, allowing them to be built up to 18 storeys (the current limit is 12). “It is a massive market now, and becoming more commonplace in the industry,” Poulin told The London Free Press earlier this year, speaking about growing interest in mass timber construction. “Market demand now is very strong, and with the building code and engineering methods and guidelines to allow building to 18 storeys, it will boost demand. It is a tailwind for a growing market.”

Read more: Ontario.ca | CTV News London

Tourism spending in London on the rise

The local tourism economy looks to be rebounding, according to a report from the Conference Board of Canada. Tourism spending in London increased by 11 per cent in 2023, hitting $1.08 billion for the year. The report also stated that the city saw 2.1 million overnight visitors. “We knew London was poised to recover sooner than other destinations across the country and now we have the data that proves it,” said Tourism London general manager Cheryl Finn. “With Sunfest and Rock the Park having celebrated milestone years [in July], and as we get set to welcome [this weekend’s] Ontario Summer Games to London, this announcement couldn’t come at a better time.” Mayor Josh Morgan said the report “is a testament to the dedication of our industry, our partners, our entire community and especially the team at Tourism London.”

The upshot: The years 2020 through 2022 are hardly benchmark comparisons ― tourism spending cratered during the early years of the pandemic ― but the stat that will most please tourism officials is that tourism spending is up more than 32 per cent in the city compared to 2019. It’s also the first time we’ve topped $1 billion in annual tourist spending. Finn explained to CBC News London that she believes London’s tourism offerings are becoming more well-rounded, reflected in a more even distribution throughout the year of tourists. “We used to say that we had busy seasons,” she said. “What we’re finding now is every season is busy.” A lot of that tourism spending is owed to hungry visitors, too – food and beverage spending accounted for 38 per cent of all tourism spending last year.

Read more: Tourism London | CBC News London

LBMX announces partnership expansion with largest U.S. buyers of lumber and building materials

London-based tech company LBMX Inc. and LMC, the largest forest products and building materials cooperative in the U.S., have finalized a significant upgrade to existing LBMX services, which will result in “a full end-to-end LBMX Group Platform for LMC and its members.” LBMX (the company provides a platform that connects independent businesses, buying groups and suppliers, offering services such as real-time analytics, rebate management and e-commerce) and LMC have been partnered for the past nine years, and last year LMC announced it was looking to overhaul its billing platform. “We looked at a number of options, including building a solution in-house,” said LMC’s vice-president of IT, Jack Phipps. “However, the current and future capabilities of the LBMX platform and the vision of the LBMX team for future enhancements, particularly in the area of AI and machine learning, ultimately made LBMX the right choice.” The upgrades are set to begin rolling out this month.

The upshot: Founded in 2001, LBMX primarily serves sectors such as building materials, HVAC, plumbing, sporting goods, industrial supply, manufacturing and agriculture. Alison Fulton, chief revenue officer at LBMX, said the significance of this announcement is that it brings the largest U.S. buyer of lumber and building materials “fully into our ecosystem, marking us as the premiere solution in this industry.” LBMX CEO Greg Dinsdale added that “our focus on member-driven organizations and our deep industry experience in lumber and building materials has resulted in a solution that drives real value for everyone: LMC members, LMC suppliers and LMC.”

Read more: CTV News London

FSRA imposes penalties against London mortgage brokerage, president

A local mortgage broker accused of deceptively using a second company to finance down payments has struck a settlement with the provincial watchdog that will see him and his firm paying over $82,000 in fines. The Financial Services Regulatory Authority of Ontario (FSRA) alleged in May that William Handsaeme (pictured) and his company, Forest City Funding, gave “false or deceptive information and documents when dealing in mortgages.” The authority was focused on five suspicious transactions and proposed fines of over $110,000. This week, Handsaeme, Forest City Funding and the FSRA struck a settlement that will see Handsaeme’s license suspended for one year and fines totalling $82,500 ($75,000 issued against the company, $7,500 issued against Handsaeme himself).

The upshot: This always looked like an open-and-shut case from the get-go ― the only real development here is that the punishment has been reduced. Local mortgage broker Mark Mitchell told The London Free Press that he felt the penalty was a “slap on the wrist,” and that he was “not sure to what extent that is going to stop anybody that was going to do it anyway.” On the other hand, it might be a sign that the FSRA is getting serious about document fraud. According to Equifax, mortgage fraud stands out among the various forms of financial deception, occurring at a rate 30 per cent higher than pre-pandemic levels.

Read more: London Free Press | CBC News London

Fanshawe seeks automotive partners for pre-apprenticeship programs

Fanshawe College is seeking placement partners for its two automotive service technician pre-apprenticeship programs this year, as the school looks to train workers in the growing auto sector here. The college launched its pre-apprenticeship program last year and brought it back this year with two cohorts of students ― and it is now reaching out to employers to take on students. “We encourage all employers in the automotive service and repair sector, including dealerships, independent repair shops and specialty automotive businesses to consider hosting one of our employment-ready participants,” said Heather Carey, senior manager of the school’s corporate training solutions department. “It’s a win-win scenario where participants gain valuable hands-on experience and employers have the opportunity to shape skilled workers who can help their service teams and their business.” Employers that sign up are eligible for a $250 per week wage subsidy.

The upshot: This will be the second iteration of a program launched last June by the province, which provides free pre-apprentice technician programs in carpentry, welding and automotive service, with a focus on underrepresented populations. Last year, the programs realized around 50 sign-ups locally. The program almost certainly has the longer-term future of the region’s automotive industry in mind, as there’s been a lot of focus on building the training base necessary for when the Volkswagen-backed PowerCo SE gigafactory project and related suppliers start looking to staff up with local talent.