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Clustering promoted as a way to gain a competitive advantage

Silicon Valley is known for high-tech electronics, Antwerp for diamonds and Napa Valley for wine.

Silicon Valley is known for high-tech electronics, Antwerp for diamonds and Napa Valley for wine.

If Jeff Hanger and Judy McMillan-Evans have their way, Central Alberta might one day be widely recognized for its manufacturing.

On Thursday, the two officials with Community Futures Network Alberta — a community economic development program funded by Western Economic Diversification Canada — led a talk on “clustering.”

Speaking to a gathering of local manufacturers and others involved in the industry, Hanger, who’s an economic development officer with Community Futures East Parkland, described how clusters involve related companies, as well as government, educational institutions and other organizations in a region. By “singing from the same song sheet,” he explained, they can gain a competitive advantage.

In addition to the likes of Silicon Valley, Antwerp and Napa Valley, many other regions have enjoyed success through clustering, said Hanger. The small Italian city of Udine, for example, supplies about 30 per cent of Europe’s chairs — thanks to companies there collaborating.

Central Alberta, which already has a thriving manufacturing sector, can learn from Udine’s success, he said. Participants in a local cluster could share ideas and resources in such areas as hiring, training and retaining employees, discuss innovation and best practices, work together to bring in consultants, and increase their awareness of local supply networks, said Hanger. They could also interact with government to overcome common issues, and work with educators to bring in valuable training programs.

“This project gives us an opportunity in Red Deer, and the outlying communities, to address what you need and to make those structural changes that are required.”

A cluster is something McMillan-Evans would have appreciated during her 18 years in the manufacturing sector.

“In 1976, when my husband and I started an electronic manufacturing company in Calgary, there was no other electronic manufacturing in the province and it was a very lonely world,” she said, recalling the challenges of finding suppliers and other resources.

“There was no Internet in the beginning, so we’d have to accidentally trip into buyers locally.

“There were no associations; there was no collaboration. It was like working with both hands and feet tied behind your back all the time.”

The Central Alberta manufacturing cluster is one of three such projects that McMillan-Evans is spearheading on behalf of Community Futures. A tourism cluster is planned for the Lethbridge area and a metal manufacturing cluster around Brooks.

Funding is coming from the Community Futures Rural Diversification Initiative and the Rural Alberta Development Fund, with $420,000 earmarked for the Central Alberta cluster.

“This is an area that’s always stood out in my mind,” said McMillan-Evans of the attraction of the manufacturing sector in the Red Deer region.

“This part of Alberta has been known for a very long time as the core for manufacturing.”

Working closely with Community Futures on the local cluster project is the Central Alberta Rural Manufacturers Association, which will help organize and run events related to the initiative.

“We want the Central Alberta area to be known as experts in manufacturing,” said Ryan Gaunce, an engineer with Lee Specialties Ltd. and a director with CARMA.

A number of events are already planned, and McMillan-Evans said local manufacturers are interested.

“Many of them have already said, ‘I’m in.’”

Those at Thursday’s meeting spent time discussing strategies for moving forward. But Hanger said the broader process will take time.

“They take about 10 years to develop, so this will only be the beginning seeds of it.”

He added that more than one cluster could result. Manufacturers in the oil and gas sector could form one themselves, he suggested.

hrichards@www.reddeeradvocate.com