Background:

Nackawic, New Brunswick was considered to be Canada’s forestry capital in 1991. A small yet thriving community of approximately 7000 people relied on the performance of the St. Anne Pulp and Paper Mill. The community struggled in 2004 when economic factors forced the mill to close and 400 millworkers were locked out. Locals such as wood workers, construction workers, truck drivers and suppliers lost jobs as well which led to less economic activity in the area. The townspeople grieved as small businesses closed down and feelings of despair took over the town. In 2006 the Nackawic Regional Economic Development Team formed and decided that it would be in the town's best interest to sell the mill to an Indian company. The mill reopened as AV Nackawic and rehired some of the locked out workers and workers from surrounding areas. The feelings of despair continued as pensioners had lost 35 percent of its funding during the reopening and rivalry between communities grew. There was fear that the forestry market would not hold. Residents of Nackawic and the surrounding area were anxious. In an attempt to alleviate negative attitudes, the Neighborhood Alliance of North York (NANY) was formed. The non-profit organization used a decision making tool called Asset Mapping. The tool was developed to collect information on the positive attributes of a society and determine why people value them. NANY determined that the people of Nackawic valued the natural beauty of the Saint John River Valley as its most valuable asset. NANY also determined that the community had an urban style infrastructure; a world recognized education system, and a well trained ageing workforce. Employer opportunities were also expanding with an expanding call center, a trucking company, a log home manufacturer, and a poker chip plant. The question now is; How can Nackawic develop a mature economy going forward?

The Problem

The main problem occurred for Nackawic, when the first economic downturn happened. The economic loss left 400 factory workers without jobs. This was detrimental to the economic growth of the community, leaving small businesses to close down and left many people without income. Once the plant was sold to the Indian company, which became AV Nackawic, managers rehired some of their old workers and then proceeded to hire others from the community and surrounding communities. This left the people of Nackawic bitter as well as families and friends feuding for the small amount of jobs available. Not only were workers locked out of the plant, but there were also insufficient funds for the pension plan. Pensioners took a 35 percent cut to their retirement funds. This left the citizens of Nackawic anxious, as they did not know if the community had the economy to keep the mill sustained while there was a downturn in the forestry industry.

Questions

1. Do you believe that tourism and promoting natural resources like the valley river will sustain the community?

2. What else can be considered as an alternative for the community if the tourism and education does not go well?

3. Do think that the community could have prevented the plant from closing in 2004 by increasing education and tourism like they are now?

Answer rating: 100% (QA)

1 I think tourism and promoting natural resources are good strategies of shifting the community prac... View the full answer