Today, the Nanaimo Economic Development Corporation (NEDC) released its analysis of the economic impact of Tilray, one of Canada’s leading producers of medical cannabis, on the region as both a private sector investor and one of the area’s top 10 employers.
The report, chronicling the almost 2-year old relationship between NEDC and Tilray, examines the company’s impact on the region through its construction and subsequent operation of a 60,000 square foot, state-of-the-art research and production facility and the proposed expansion of its operation and workforce. The results of the study, prepared by accounting firm MNP LLP, were unveiled today in Nanaimo by Mayor Bill McKay and NEDC CEO Sasha Angus.
In his remarks, Mayor McKay spoke about the importance of attracting investment to the area. “The relationship between Tilray and NEDC is not only a Nanaimo success story,” says Mayor McKay. “It is a tremendous case study for successful collaboration between local and regional governments and a dynamic and growing corporate citizen.” He described Tilray’s current expansion plans as representing the region’s largest private sector investment in recent memory.
The report suggests that the total direct, indirect and induced economic impacts of the construction and operation of Tilray’s Nanaimo facility in 2014 are estimated to be $48.1 million in total economic output in BC and $27.4 million in total provincial GDP. To date, Tilray has contributed just over $3.2 million in direct wages and salaries in the local market place, total employment of 357 full time equivalents (FTEs) in BC and $8.5 million in tax revenue for all three levels of government.
“We have been privileged to work closely with Tilray to bring them to the region,” said Sasha Angus, CEO of the Nanaimo Economic Development Corporation. “Tilray has proven themselves to be incredible corporate citizens and the household sustaining jobs that they have created support literally hundreds of families across the region.”
“Nanaimo welcomed us with open arms and we are delighted that our operations have had such a positive impact on the community,” said Greg Engel, Tilray’s Chief Executive Officer. “We look forward to continuing to invest millions of dollars and create hundreds of jobs in Nanaimo pending necessary regulatory approvals needed for our proposed expansion.”
Last December, the Nanaimo City Council approved a rezoning application that, pending additional regulatory approvals from Health Canada, sets the stage for Tilray to amplify its impact, not only in helping patients and physicians, but through additional investment, job creation, tax payments and increased manufacturing capacity. On the drawing board are plans for a second facility that is 4-5 times the size of Tilray’s existing facility that has the potential to create hundreds of new direct and indirect jobs in Nanaimo, along with millions of dollars in economic output.
Job creation, economic output and tax revenue may be the quantifiable measures of Tilray’s financial contribution but Nanaimo’s economic impact study does not ignore the human impact that Tilray has on the local community, home to generations of some of Tilray employees. The growing enterprise has also attracted new residents thanks to employment opportunities for a diverse pool of professionals. Tilray’s expert team includes PhD research scientists, professional managers, botanists and horticulturalists, all committed to the production of premium-quality products and delivery of exemplary patient-centered service.
The full economic analysis is available here.