Designing a reason to stay

The technology industry in Newfoundland and Labrador is growing rapidly, but employers in the province are having difficulties finding the skilled workers they need

College of the North Atlantic students from the programmer analyst program have one year left before entering the workforce. This is one of several computer programs offered by the college. Tyler Dunne/Kicker

Tyler Dunne Kicker

What’s bigger than tourism, more lucrative than the fishery and creates almost as many job opportunities as the offshore oil and gas industry in Newfoundland and Labrador?

Technology.

The technology sector in this province is a $1.6 billion industry and employs nearly 4,000 people, according to the Newfoundland and Labrador Association of Technology Industries (NATI).

Nancy Andrews is senior communications for NATI. She says the biggest issue employers in the province face is the talent gap. Submitted

Nancy Andrews, the senior communications person for NATI, says although the sector is growing rapidly, there just aren’t enough skilled workers to fill the positions.

“It’s a really interesting dynamic in the province,” said Andrews. “We have a very high unemployment rate and we have a tech sector that is screaming out for talent.”

Andrews says the industry will need to fill another 2,000 positions in the next five years, on top of the already underpopulated workforce.

“I think jobs are always the number one issue in retaining people,” said Andrews. “So, if you have a sector that is presenting jobs that pay 70 K a year and you can do them almost anywhere, that’s a pretty compelling reason to stay.”

The talent gap

So why do so many people leave the province in search of work or remain within the province without employment when there are various opportunities in the technology sector?

“The number one thing we hear from our members and companies is that the talent gap is the number one issue in this province,” Andrews said.

The talent gap refers to a lack of skilled workers for a particular industry, and in Newfoundland and Labrador, this can create a 6-12 month wait for the right employee.

When comparing MUN to Dalhousie, the numbers show a major difference between the number of graduates in computer science related programs in 2018. Information provided by Memorial University and University of Dalhousie.

Andrews says educating kids in the K-12 system is a major part of the solution.

“People don’t necessarily understand the opportunities that exist in the tech sector - that it’s something that can happen here, and we talk about the diversification of the economy. Well, the answer staring us in the face.”

By advocating for technology awareness in early education, Andrews says we can create a prepared workforce to meet the demands of future industries and the digitization of already existing industries.

Emily Bland of SucSeed teaches a classroom about growing fresh food. Her company is in over 80 per cent of schools in the province and partners with Choices for Youth. Submitted

“Not everybody needs to be coders, and not everybody will. But if we create a generation of problem solvers, and a workforce that is digitally savvy, the opportunities are going to open up more for people.

Digitization and future of industries within NL

Newfoundland and Labrador’s workforce was once centered on natural resources and trades, but some of these jobs have become less appealing to the newest generation of workers.

With the growth in the technology industry, the digitization of older industries can create attractive employment opportunities by becoming less labour intensive.

For example, aquaculture is becoming increasingly digitized as new technology emerges. Where feeding fish used to be done manually, it can now be operated from a cellphone.

Lynn Gambin is an associate professor with economy at Memorial University. She says the technology industry shows potential but the workforce will take time to adjust. Tyler Dunne/Kicker

Lynn Gambin, an associate professor of economy at Memorial University, says it's important to have a workforce with the skillset to move into a more digital industry that compliments what the province already does.

“Our strength is our natural resource sector,” said Gambin. “We have quite an abundant endowment of natural resources, so the combination of the two works well together because tech can be used to manage (enterprises) more cheaply, develop green technology or create more sustainable ways to utilize our natural resources.”

What’s already happening?

Seaformatics Systems Incorporated of St. John’s has developed WaterLily, a portable turbine that generates electricity using the running water of rivers or streams for those spending time off the grid.

Andrew Cook, the CEO of Seaformatics, says the province is hugely supportive of new technology and the creation of technology-based startup companies through initiatives such as the Genesis Centre and NATI.

“It’s where the province needs to go, really - I mean, tech is the one thing we have that you can basically attack a global market with,” Cook said. “It’s a lot more difficult in other industries to go after a market globally, but with tech, it’s happened with a bunch of companies here now.”

Andrew Cook of Seaformatics points out some good locations to place the WaterLily. Startups like this one are proving there is room in the province to grow technology businesses. Tyler Dunne/Kicker

The Genesis Centre is an innovation hub located on Signal Hill overlooking downtown St. John’s. There, startup tech companies have a hand taking their first steps, all the way to adulthood, growing to becoming successful businesses.

The centre states the companies they’ve assisted have raised $95 million in private capital, generate $150 million in annual revenues, and have created 1,200 jobs.

One example of a local startup company is Verafin, a software company providing fraud protection to more than 2,600 banks and employing hundreds of people in St. John’s.

Cook says the technology industry has the potential to give people a chance to remain in Newfoundland and Labrador.

“The more companies we can create here, it just creates more and more opportunities,” Cook said. “We (at Seaformatics) were a pretty small team and we’ve probably doubled in size since we’ve started.”

Cook says emerging companies have to focus on technology that is useful internationally, not just here in the province.

“Skills are going to have to switch from probably trades-type jobs to high-tech positions - but that’s all a part of the ebb and flow,” Cook said. “It’s going to change as megaprojects wane or oilfield projects start to disappear. Then the tech and high tech stuff will come back on stream.”

WaterLily

WaterLily was developed by Seaformatics. The WaterLily uses wind or water to generate electricity for outdoor enthusiasts. Tyler Dunne/Kicker

The technology for WaterLily is derived from research at Memorial University, which looked at ways for research vessels to recharge their batteries without having to make a long, costly 200-mile trip back to land.

But, Cook says, the research market was a tough one to break into.

“We did, what they call in startup land, a pivot,” said Cook. “So we took our tech, shrunk it down a little bit for the outdoor enthusiast and went after the consumer market.”

WaterLily has since been featured on TV channels such as CBS and Discovery with customers in 50 countries across six continents.

“Over the long term, we want to become the world leader in personal, portable energy,” said Cook. “That’s where we want the company to go.”