Learning technology sector shuns recession
Published Tuesday December 23rd, 2008
FREDERICTON - As some sectors of the economy get hammered by one of the deepest downturns in decades, parts of the tech world are booming.
The recession-proof niche of advanced learning technology - part of the information and communication technology sector - promises to remain solid despite the economic downturn, especially for companies that focus on defence and aerospace training, according to business leaders.
And many companies with a focus on military training have sprung up around Fredericton in the last few years, feeding off contracts with the Canadian Forces base in Gagetown.
"I actually think there's a built-in global meltdown-proofing in some areas of advanced learning technology," said Emad Rizkalla, president and chief executive of Bluedrop Performance Learning.
Bluedrop recently received a $2-million contract with the Department of National Defence to work with the combat training centre in Gagetown on the development of electronic and simulated training. The contract will more than double the size of the Fredericton office from 12 to 40 employees over the next few years, Rizkalla said. Bluedrop's head office is in St. John's, N.L., but the company also has offices in Ottawa, Calgary, Toronto and Washington, D.C.
While traditional soft-skills training gets slashed as soon as companies hit hard times, Rizkalla said, training related to productivity, safety and efficiency - as well as military training - continue to see a demand during slowdowns.
"Business can benefit from training," he said. "They can improve operations and increase their margins and produce returns on investment."
Other advanced learning technology companies in Fredericton are also experiencing growth, largely based on military training demands and the availability of a skilled workforce in the area.
Larry Sampson, vice-president of knowledge management for Acron Capability Engineering, a firm specializing in serious gaming, simulation and modelling, said New Brunswick is experiencing a resurgence in the field of e-learning.
"Frank McKenna put us on the e-learning map," Sampson said, referring to the former premier. "We were the Silicon Valley of the east on the e-learning front, but then we started to see companies merging and closing their offices."
Sampson said in the last three years the curve has started to shoot back up.
"The Gagetown base is hungry for this kind of stuff," Sampson said. "Soldiers can't do all their training in a classroom. But there are challenges associated with training with real guns and tanks," he added. "We're applying technology to come up with training solutions and it's a natural fit because the base is here."
Brian Dick, Business New Brunswick's deputy minister, said the province has been developing an expertise in learning and training over a long period of time.
"The focus on advanced learning technology is just the new piece," he said. "It's an opportunity to take the assets we have and focus more clearly on one area to try and gain enough mass to get something going."
As the baby boomers retire, more companies will have to focus on training and transferring knowledge to new employees, he said.
"You don't want people sitting in a classroom doing this, because then you're off-line and not productive," Dick said. But if technology can he harnessed to deliver training more effectively, "that's dollars and cents to companies," he said.
Business New Brunswick has hired a consultant to make an "asset map" of the advanced learning technology sector and the results should be ready in early 2009. This will help the government pinpoint how many companies are in the field, how many employees they employ, and what kind of revenue they bring to the province.
The province also hopes to strengthen the e-learning and training sector by creating more links between the government, universities and the private sector.
"You can't put a cocoon around these companies," Dick said. "But we're deepening and strengthening the cluster so support systems for companies are better."
Dave Grebenc, director of sales, marketing and finance for Innovatia, a knowledge management firm, said that while the defence sector is a "huge user of learning technology and solutions," he added that the field of information and communication technology in the province goes far beyond advanced learning technology.
"There are huge opportunities in the energy and health sectors," said Grebenc, who is also the chair of LearnNB. "It's about bridging capabilities with sectors that have need. There is great potential for collaboration."
Disabled
Search Articles
More CE Network Sites & Partners:
