The Economic Impact of Winter/cold weather testing in Thompson, MB

1. Prepared by Thompson UnlimitedPresentation to the Thompson Chamber of Commerce January 20th, 2010 www.thompsonsubzero.ca The Economic Impact of Winter/cold weather testing in Thompson, MB

2. The Economic Impact of Winter Weather Testing in Thompson, MB Different tests conducted on machinery in cold/winter weather are a necessary step in a manufacturer’s product R&D process, as well as for continuous/total quality improvement programs. Cold/winter weather testing under real world conditions offers testers a truer measure of performance, validity and reliability measures using data obtained thru actual functioning as opposed to data collected in a simulated environment (i.e. cold test chambers). Real world testing is acknowledged by manufacturers as being more efficient and effective.

3. The Economic Impact of Winter Weather Testing in Thompson, MB The Cold/Winter Weather Testing Industry – Thompson’s KSFs • Affordable electricity, abundance of water. • Local infrastructure (including hospital, all-season paved road, rail, retail stores, etc.). • Convenient and affordable access to/from Thompson. • Sufficiently removed, yet relatively close. • Dollar exchange rates work in the favour of foreign companies testing in Canada due to exchange rate gains. • Variety of road surfaces to test on; including gravel, paved, ice and winter roads located close to Thompson.  Early season testing. • Thompson is relatively close to the U.S. Midwest - Center of US auto, tire and part manufacturers in comparison to Alaska or European countries having cold weather and capacity to attract/work with winter weather testers. • Climate Change impacting us, and others.

4. The Economic Impact of Winter Weather Testing in Thompson, MB Thompson Unlimited’s Approach to WWT • Use of a local facilitator to work with a client. • WWT Committee & the TU Board of Directors. • Full-time Development Coordinator dedicating a portion of her time to advance this. • Involvement of community (City, businesses). • Growing body of experience & expertise. • Out-of-province travel  global reach – local benefit. • Expanding focus of WWT to include aerospace, off-road, heavy equipment, etc. • Contract administration.

5. The Economic Impact of Winter Weather Testing in Thompson, MB • A Few Words About Economic Impact Measurement . . . . • A Few Words About Confidentiality . . . • What/Why should we be ‘warm’ to WWT? Show me the money!!!

6. Table 1 –Sample of Companies where international Company ‘A’ purchased goods/services from during the 2007/08 Winter Season.

7. The Economic Impact of Winter Weather Testing in Thompson, MB International Company ‘A’ 2007/08 Testing Season

8. The Economic Impact of Winter Weather Testing in Thompson, MB Preliminary Work for International Company ‘A’ 2007/08 Testing Season

9. The Economic Impact of Winter Weather Testing in Thompson, MB International Company ‘A’ 2007/08 Testing Season • Observations of Expenditures • During 2007/08 testing season, $736,328.88was spent locally at 65 different businesses (see Table #1). • 186 one-time and repeat representatives of International Company ‘A’ travelled to Thompson. • 4,035 hotel room nights. • The average length of time a company representative stayed in Thompson was approx 20 days. • Hotels accounted for the largest expense. The range of businesses impacted varied widely.

10. Table 2 - Winter Weather Testing Expenses Incurred in Thompson by 3 Different Testing Companies.

11. The Economic Impact of Winter Weather Testing in Thompson, MB

12. Conclusion