Industry leaders are more optimistic than ever about future business prospects in Saskatoon, according to an annual report by the Saskatoon Regional Economic Development Authority (SREDA).

The independent economic development agency sent out surveys to managers of 763 companies in Saskatoon and region, in sectors including food processing, information technology, telecommunications, life sciences, manufacturing, mining, transportation and warehousing. Approximately 37 per cent of companies contacted responded to the survey, which SREDA has conducted since 1994.

The survey - The Saskatoon Region Industry Report 2005 - asked industry managers for their comments on the availability of both skilled and unskilled labour, employee skill level, work ethic, labour-management relations, sales and prospects for growth.

The 2005 survey results have SREDA CEO Ted Mitchell smiling. "What I see as being very positive is the level of enthusiasm by which businesses are embracing the economic upturn in Saskatoon," says Mitchell.

SREDA CEO Ted Mitchell says booming economy shows Saskatoon's time has come.

Sales were up over the previous year for 63.1 per cent of companies responding to the survey. The year before, only 49.8 per cent of survey respondents reported an increase in sales.

Another 29.6 per cent of businesses indicated that sales were holding steady in comparison to last year.

According to the 2005 survey, the vast majority of industrial managers continue to be highly satisfied with their employees' work ethic, skill level and labour-management relations.

The latter were described as either good or excellent by 96 per cent of managers, while 91.3 per cent rated their employees' work ethic as being either good or excellent.

Even more encouraging is the optimism that local industries are expressing regarding their prospects heading into 2006. In the 2004 report, 82.2 per cent of companies described their future prospects as either good or excellent. In the 2005 report, that number increased to 88.7 per cent of companies.

"Saskatoon is having an incredible boom right now," says Mitchell. "We're announcing record expansions in businesses. We're announcing investment. We're announcing job creation. We're announcing new ventures and mergers."

Mitchell says that Saskatoon mayor Don Atchison has played a huge role in the city's economic success. "He's been available for all of the investment discussions we've had. He's been available in helping move things along more quickly than they otherwise would have."

Over the past two years, a record number of companies, from both within and outside Saskatchewan, have invested in Saskatoon, says Mitchell.

These announcements include the construction of a new $160-million processing facility by Maple Leaf Foods, replacing an existing Saskatoon plant. The investment will mean the plant's 1,400 employees will retain their jobs, along with the creation of 350 new jobs. B.C.-based Prairie Pride is building a new $15-million poultry processing plant that will create more than 250 new jobs. Horizon Pet Foods is investing $1.8 million into a new pet-food plant in nearby Rosthern.

On Aug. 10, Marriott Global Reservation Sales and Customer Care announced it will invest $2.7 million to locate a reservation centre in Saskatoon, creating an estimated 200 jobs.

"When you look at the announcements made by Maple Leaf and Prairie Pride alone, Saskatoon will have two of the most state-of-the-art food processing facilities in North America, arguably the world," says Mitchell. "They're not just slaughter facilities, they're value-added processing facilities. This makes Saskatoon somewhat of a magnet as a centre of excellence for food processing.

"Because of these activities, more companies are coming in that are either part of the supply chain or part of the distribution channel."

Mitchell says Saskatoon's economy is firing on all cylinders, with all sectors reporting strong growth. "For example, sectors such as manufacturing, warehousing and transportation are doing very well. Their success goes hand in hand; they rely on each other. The fact that they're all recording strong sales increases and looking at a very positive 2006 is good news."

Mitchell sees unlimited opportunities for Saskatoon within the province's mining sector.

"There's no question that mining is a growth sector for us. We're seeing record results and significant investments in all aspects of the mining industry - including potash, uranium, gold, diamonds and rare earths," he says.

Mining supply and service companies located in the Saskatoon region are reaping the benefits of increased exploration and mine development.

Jim Nowakowski, president and general manager of JNE Welding in Saskatoon, says his company is enjoying a second consecutive year of increased sales. JNE Welding specializes in custom-steel fabrication, including the manufacture of structural steel, processed piping and process equipment.

"Last year, sales were up 30 per cent from the year prior and profits were significantly higher. The last year and a half has been fantastic, beyond what we even expected," says Nowakowski.

"We're expecting the next fiscal year to be every bit as strong as 2004 and 2005, with sales increasing by another 10 to 15 per cent," he says.

"The construction phase of the $450-million Cigar Lake uranium mine is now moving nicely ahead," Nowakowski adds. "We anticipate a fair bit of work coming our way out of that project this winter."

The company will also be kept busy with contracts relating to ongoing potash mine expansions.

This year, three of the province's potash mines have launched expansions valued at close to $400 million.

Like many industry leaders in Saskatoon, Nowakowski is concerned about the availability of skilled labour in the region.

"There aren't enough people that can just step in and work for us without significant training and grooming. That's a challenge for sure."

Mitchell says that a skilled labour shortage is the downside of Saskatoon's economic boom.

"Our biggest challenge is going to be supplying the labour pool that will support the growth we've been having over the past year or so. It's one of my board's No. 1 priorities. We're looking at ways to fill the labour pool, including increasing immigration and establishing stronger linkages with the Aboriginal community.

"Traditionally, what was attracting a lot of businesses to Saskatoon is the fact that we have always had a tremendously strong and reputable labour pool. We have to make sure that we continue to have those numbers in place," says Mitchell.

It's a challenge that Mitchell doesn't mind tackling.

"It's a great problem to have. Would you rather have ... more people wanting to spend money and a diminishing labour pool, or a lot of labour and no investment?" adds Mitchell.

"I have always believed Saskatoon was a city waiting to explode. All the factors are here, all the variables, for this city to take off. Saskatoon's time has come, and it's about time."

(Jeannie Armstrong can be reached at jarmstrong@businessedge.ca)