2018 ECONOMIC UPDATE - EDAC€¦ · Industrial construction values totaled $17.5 million in 2018, a...
Transcript of 2018 ECONOMIC UPDATE - EDAC€¦ · Industrial construction values totaled $17.5 million in 2018, a...
2018 ECONOMIC UPDATE
When I became Mayor, it was with the vision of making Oakville the most livable
town in Canada. We have achieved this goal by focusing on five key principles:
1. Controlling growth to only what fits our environment and our economics;
2. Protecting our cultural and natural heritage resources and greenspaces;
3. Providing high-quality facilities and services our residents need and want;
4. Keeping our finances strong and healthy; and
5. Engaging and expanding mutual understanding with our Provincial counterparts.
In 2018, the town’s efforts to achieve this vision were celebrated when Oakville was selected as Canada’s Best
Place to Live by MoneySense Magazine. We on Town Council believe that livability is the essential ingredient
for Oakville’s economic success and vitality.
The factors that earned the town top ranking are important indicators of the health of our local economy.
Quality jobs, household income, community safety, and high performing schools are all drivers of new investment.
2018 was a year of strong economic growth in Oakville. Several new companies moved operations to town
bringing more than 1,600 new jobs. Existing companies invested in facility expansions, and we welcomed
more than 560,000 sq. ft. of new commercial and industrial development.
Oakville Council is committed to working in partnership with staff and the business community to create an
environment that supports innovation and growth. In 2018, a new Brownfields Community Improvement Plan
was approved to support the redevelopment and remediation of underutilized employment lands. Research
and consultation were undertaken to develop a new economic development strategy for the town. Council
and staff are looking forward to launching the new strategy in 2019 with the goal to further strengthen and
diversify the local economy.
I invite you to explore the Economic Update to gain insight into the innovative companies that have chosen
to call Oakville home, explore the town’s key areas of development activity, and learn more about corporate
initiatives in support of economic growth.
Mayor Rob Burton, BA, MSHead of Council and CEO
MESSAGE FROM THE
MAYOR
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CANADA’S BEST PLACE TO LIVEOakville’s welcoming population, access to education, and strong job market have earned the town the number one spot in MoneySense Magazine’s 2018 Canada’s Best Place to Live ranking.
201,200POPULATION
Source: Town of Oakville, 2018
Canada’s Best Place to Live can also be thought of as Canada’s best place to work, with Oakville companies making headlines as industry-leading innovators, and new and existing companies finding continued success here.
UNEMPLOYMENT RATE
5.03%Source: Environics Analytics, 2018 Estimates
2018 GDP
$10.9 BSource: Conference Board of Canada, $2007
Source: Statistics Canada. 2017. Census Profile. 2016 Census.
AVERAGE HOUSEHOLD INCOME
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WELCOME TO OAKVILLEOakville is proud to welcome new companies to the town each year. The list below highlights major new employers who chose to locate in Oakville in 2018. Together, these companies created more than 1,600 new jobs in the community.
Aviva Canada
Burloak Technologies
ErinoakKids
Farm Boy
GVA Lighting
Gyptech Manufacturing
KPM Industries
Metrolinx
Muir Tapes & Adhesive
Ontario Cannabis Store Distribution Centre
WW (formerly Weight Watchers)
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AVIVA CANADA LOCATES MAJOR OFFICE IN OAKVILLELeading property and casualty insurance company Aviva Canada officially moved into a brand new two-storey office building in June, bringing 700 new jobs.
The new 55,000 sq. ft. building consolidates four locations into one central GTA west location on the North Service Road.
The office was designed to encourage a culture of achievement and collaboration. The building includes carefully planned spaces to spark innovation, and a restaurant onsite to cultivate a sense of community and provide meeting space for larger groups.
ERINOAKKIDS NEW STATE-OF-THE-ART HALTON LOCATION
ErinoakKids officially opened their new Halton location on Glenorchy Road in April.
The 79,000 sq. ft. facility is designed to be a model for all future children’s treatment centres in Canada. The state-of-the-art facility brings therapy, medical and support services under one roof for children and youth with disabilities and special needs.
WW (FORMERLY WEIGHT WATCHERS) OPENS NEW CANADIAN HEADQUARTERS IN OAKVILLE
WW moved into their brand new Oakville location on Joshuas Creek Drive in December.
The new 22,000 sq. ft. corporate headquarters reflects the company’s focus on wellness and health. The office was designed to create an atmosphere of wellbeing and healthy living for WW employees.
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EMERGING CLUSTER: ADDITIVE MANUFACTURINGIn 2018, significant activity occurred in the area of additive manufacturing, signalling the emergence of a new cluster of innovation and expertise in Oakville.
Also referred to as 3D printing, additive manufacturing is a faster and more environmentally friendly manufacturing process. The technology has broad applications spanning several of Oakville’s key sectors, including automotive, aerospace, energy, industrial, and healthcare.
Oakville’s additive manufacturing cluster will play a key role in supporting the sustainability of the town’s manufacturing base. The technology will enhance the manufacturing supply chain locally, and provide an opportunity for Oakville companies to innovate and grow.
HOME TO THE ADDITIVE MANUFACTURING CENTRE OF EXCELLENCE
Burloak Technologies, a division of Samuel, Son & Co. opened a 60,000 sq. ft. state-of-the-art facility specializing in additive manufacturing on the South Service Road in 2018. The Centre of Excellence was established to help companies adopt 3D printing processes by taking additive manufacturing from concept through to design and production.
The project received federal and provincial funding support as the additive manufacturing industry is forecasted to grow fivefold by 2020 and has been identified as a priority area of innovation and job growth for the Canadian economy.
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COMPANY COLLABORATION
Oakville company Javelin Technologies announced an integrated partnership with Cimetrix Solutions in 2018. The partnership combines the specialization of both firms to improve service to the 3D printing market and better position both companies for growth. By coordinating services, the companies can provide support to students, and small to large-scale manufacturers, with plans for a newly expanded industrial 3D printing lab opening in 2019.
NEXT GENERATION MANUFACTURING SUPERCLUSTER (NGEN)
The federal government announced a $230 million investment to support the growth of an Ontario-based Next Generation Manufacturing Supercluster (NGen). The announcement was held in Oakville in November with funding to support next generation manufacturing capabilities, matched dollar for dollar by the private sector.
ADDITIVE MANUFACTURING IN OAKVILLE
INDUSTRY NETWORK PARTNERSHIP
Oakville company Promation joined Canada Makes in 2018, a network of private, public, academic, and non-profit entities dedicated to promoting the adoption and development of advanced and additive manufacturing in Canada.
The company has also partnered with the University of Waterloo’s Multi-Scale Additive Manufacturing Lab to develop the next generation of metal additive manufacturing processes. In 2018, the Government of Canada invested $5.5 million in the University of Waterloo-led initiative through the National Sciences and Engineering Research Council of Canada.
“ Additive manufacturing is a rapidly developing technology that creates much lighter, stronger parts while reducing costs by consolidating multiple manufacturing steps into a single process.”
PETER ADAMS | PRESIDENT AND CO-FOUNDER OF BURLOAK TECHNOLOGIES| 6
TOP PRIVATE SECTOR EMPLOYERS
Ford Motor Company of Canada Suez Water Technologies & Solutions PCL Constructors Canada
Siemens Canada Ltd Innomar Strategies – AmerisourceBergen Canadian Tire Financial Services
Collins Aerospace Wood PwC
Aviva Canada
Source: Halton Region. 2017. Employment Survey Results., Town of Oakville Economic Development Office. 2018. Single-site Employers.
STRONG AND DIVERSE ECONOMYThe strength of the local economy lies in the diverse companies that have chosen to call Oakville home. In 2018, top employers Geotab, Europhins Alphora, McIntosh Perry, and Rock Star Games invested in expanded operations in Oakville.
KEY SECTOR BUSINESSES
Source: Statistics Canada. June 2018. Canadian Business Counts, Total with Employees.
304Life Sciences
1,819Professional and Financial Services
831Digital Media and ICT
293Advanced
Manufacturing
TOTAL OAKVILLE BUSINESSES
8,5607 |
Ipsos’ 100 Most Influential Brands
The Weather Network
Canada’s Top 50 Research Colleges, Research Infosource
Sheridan College
Most Admired CEOs (Waterstone Human Capital)
Mandy Rennehan, Founder and Blue Collar CEO, Freshco
PROFIT Growth 500: Canada’s Fastest-growing Companies
Bronte Construction, DRMG (Direct Response Media Group), Freshco, Geotab, Indellient, Rock Cliff Custom Homes, Rock Star Real Estate, Toronto Custom Concepts
Deloitte Technology Fast 500 (North America)
Geotab, Indellient
Great Place to Work® Institute’s Best Workplaces™
FCT, Geotab, Ian Martin Group, Kiewit, Softchoice
Deloitte Canada’s Best Managed Companies
ASL Distribution Services, ASTOUND Group, Callisto Integration, Geotab, Levitt-Safety
Forbes Canada’s Best Employers
Ford Motor Company, Siemens
Canada’s Top Small & Medium Employers
VelocityEHS Canada
Canada’s Top Employers for Young People
Ford Motor Company, Siemens
Canada’s Greenest Employers
Ford Motor Company, Reunion Island Coffee, Siemens
OAKVILLE COMPANIES MAKING HEADLINES Oakville is home to some of the fastest-growing, best managed companies in Canada. Congratulations to the local companies celebrated as industry leaders in 2018!
2018
The
in Canada
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MAJOR INVESTMENT ACTIVITY
Oakville welcomed more than 560,000 sq. ft. of new industrial and commercial development in 2018. Most new construction took the form of major office developments in both east and west Oakville, creating new space for companies to locate and expand.
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Employment Lands
Nodes and Corridors
Regional Transit Node
Health Oriented Mixed Use Node Study
GO Stations
Hospital
Sheridan College
1 Burloak Drive Grade Separation (Future)
2 Great Lakes Business Park – New Office
3 Oak West Corporate Centre – New Office
4 Burloak Technologies
5 Wyecroft Bridge (Future)
6 ErinoakKids
7 Gyptech Manufacturing
8 Lakeshore Road Reconstruction
9 Metrolinx
10 Shoppers Drug Mart
11 Aviva Canada
12 Melrose Investments – New Office
13 WW Canada
14 Farm Boy
15 Muir Tapes & Adhesives
16 GVA Lighting
17 Geotab
18 Winston Park – New Office
19 Europhins Alphora
Oakville Trafalgar Memorial Hospital
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MAJOR INVESTMENT LOCATIONS
BUILDING PERMIT ACTIVITY
Development activity in Oakville historically follows a cyclical pattern of peaks and valleys, alternating between years of construction and absorption. In 2018, the Oakville office market saw an increase in new development activity following a year of absorption in 2017.
Commercial construction values totaled $105.9 million in 2018, an increase from $90.7 million in 2017.
Industrial construction values totaled $17.5 million in 2018, a decrease from $82 million in 2017, signaling an absorption year following high development activity in 2017.
OFFICE
19.2%Vacancy Rate
REAL ESTATE MARKET
INDUSTRIAL
5.1%Availability Rate
CBRE Marketview Snapshot. Q4 2018. Toronto Office and Industrial – Oakville.
Average Net Rental Rate
$18.99 /SQ.FT
Inventory4.2MSQ.
FTInventory18.2MSQ.
FT
Average Net Rental Rate
$7.27 /SQ.FT
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ANNUAL SQUARE FOOTAGE OF NEW DEVELOPMENT (INCLUDES ADDITIONS)
COMMERCIAL BUILDING PERMIT ACTIVITY – ALL PERMITS ISSUED TOTAL ANNUAL CONSTRUCTION VALUE
INDUSTRIAL BUILDING PERMIT ACTIVITY – ALL PERMITS ISSUEDTOTAL ANNUAL CONSTRUCTION VALUE
Source: Town of Oakville, Economic Development, AMANDA Building Permits
Source: Town of Oakville, Economic Development, AMANDA Building Permits Source: Town of Oakville, Economic Development, AMANDA Building Permits
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DEVELOPMENT HOT SPOTS
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OAKWOODS CENTRE RETAIL
The Carttera development also includes a retail plaza providing amenities to support surrounding neighourhoods and employment growth.
Canadian food retailer Farm Boy celebrated an official opening in the Oakwoods Centre on Ironoak Way in December. The company specializes in fresh produce and food products, and the move to Oakville created 150 new jobs in the community.
OAKWOODS BUSINESS PARK
Carttera’s Oakwoods Business Park is 42-acres of prime employment land bordering the QEW, Highway 403 intersection.
In 2018, construction was completed on a brand new, two-storey 89,000 sq. ft. office building on Joshuas Creek Drive. New tenant WW (formerly Weight Watchers) moved their Canadian corporate headquarters into the new space in August.
New construction activity will continue in 2019 and beyond with a new 55,000 sq. ft. building planned for Samuel, Son & Co.’s move to Oakville.
Once complete, the Oakwoods Business Park will consist of a mix of office, retail, industrial, and hotel uses.
OAKVILLE EAST
OAKVILLE WESTOAK WEST CORPORATE CENTRE
Fengate’s Oak West Corporate Centre is a 41-acre business park in west Oakville. The development brings a mix of modern flex office and industrial space to accommodate a diverse array of tenants.
In 2018, construction was completed on the second building in phase one of the development. 555 Michigan Drive consists of a total of 30,000 sq. ft. of flex office space and is home to KPM industries, a paving and packaged materials company.
Construction also commenced on the third and final building in phase one of the development, totaling 100,000 sq. ft. with occupancy anticipated for Q4 2019.
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The Economic Development department benchmarks Oakville against 17 other Greater Toronto Area (GTA) municipalities in the categories of property taxes, development charges, and industrial land sale values, which are key considerations in locational decisions.
A relative comparison of these three cost factors across the GTA indicates that Oakville is well-positioned for new investment, particularly commercial development.
Municipality Average Land Price ($000s/acre)
HALTON
Oakville $ 1,100
Burlington $ 900
Halton Hills $ 865
Milton $ 1,075
PEEL
Brampton $ 1,710
Caledon $ 1,100
Mississauga $ 1,625
TORONTO
Toronto $ 1,250
YORK
Aurora $ 950
Markham $ 1,400
Newmarket $ 900
Richmond Hill $ 1,400
Vaughan $ 1,500
Whitchurch-Stoufville $ 550
DURHAM
Ajax $ 500
Oshawa $ 350
Pickering $ 600
Whitby $ 400
Source: CBRE Toronto Industrial Summary Q4 2018.
2018 INDUSTRIAL LAND VALUES
COMPETITIVE POSITIONAttracting new investment and supporting the growth of the existing business base are key components to ensuring the health of Oakville’s economy.
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Municipality Industrial Per sq. ft.
Commercial Per sq. ft.
HALTON
Oakville $ 20.34 $ 20.34
Burlington $ 17.87 $ 17.87
Halton Hills $ 12.13 $ 15.97
Milton $ 13.61 $ 13.61
PEEL
Brampton $ 18.92 $ 25.39
Caledon $ 17.80 $ 24.27
Mississauga $ 22.24 $ 30.53
TORONTO
Toronto $ 19.84 $ 19.84
YORK
Aurora $ 22.99 $ 22.99
Markham $ 33.15 $ 33.15
Newmarket $ 28.32 $ 28.32
Richmond Hill $ 29.01 $ 29.01
Vaughan $ 24.30 $ 24.30
Whitchurch-Stoufville $ 23.28 $ 23.28
DURHAM
Ajax $ 16.39 $ 24.90
Oshawa $ 19.74 $ 22.73
Pickering $ 12.45 $ 20.96
Whitby $ 16.23 $ 19.10
Source: Municipal websites. Numbers are rounded.
Municipality Industrial Per cent (%)
Commercial Per cent (%)
HALTON
Oakville 2.65 1.71
Burlington 2.77 1.78
Halton Hills 2.80 1.80
Milton 2.49 1.61
PEEL
Brampton 2.44 2.14
Caledon 2.24 1.92
Mississauga 2.22 1.98
TORONTO
Toronto 2.45 2.40
YORK
Aurora 2.07 1.77
Markham 1.87 1.61
Newmarket 2.13 1.82
Richmond Hill 1.91 1.64
Vaughan 1.93 1.65
Whitchurch-Stoufville 2.01 1.72
DURHAM
Ajax 3.48 2.50
Oshawa 4.04 2.87
Pickering 3.49 2.50
Whitby 3.55 2.54
Source: NRU 2018 GTHA Commercial & Industrial Property Tax Rates, August 2018. Numbers are rounded.
2018 TAX RATES 2018 DEVELOPMENT CHARGES
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DOWNTOWN MITIGATION STRATEGY
Economic Development led a cross-departmental team in the development of a mitigation strategy for the Downtown Lakeshore Reconstruction Project. In September, Council endorsed the strategy, which aims to soften the impact of the Lakeshore Road reconstruction on the business district.
As part of these efforts, the Project Office for the reconstruction project officially opened in July. The office serves as a central location for information related to the reconstruction of Lakeshore Road. Liaison staff, located in the Post Office, will take on implementation of the mitigation strategy through project duration.
In 2018, Economic Development staff led and participated in several key initiatives to support continued economic growth in Oakville.
TOWN INITIATIVES FOR ECONOMIC GROWTH
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NEW FIVE-YEAR ECONOMIC DEVELOPMENT STRATEGY
Research and consultation were conducted to develop a new Economic Development strategy for Oakville with the goal to further strengthen and diversify the local economy. As the current award-winning strategy nears completion, the department is in need of a new strategy to guide work plans and priorities for the next five years. The department was successful in its application for federal funding for this project from the Invest Canada – Community Initiatives fund.
OPPORTUNITIES AND INVESTMENTS VIRTUAL TOUR
The Opportunities and Investments Map was created to provide an overview of new and ongoing economic development activities in Oakville. Using ArcGIS software, the interactive map takes users on a tour of development activity, infrastructure investment, and opportunities for business growth.
The town received an Award of Excellence from the Economic Developers Council of Ontario in the category of Promotional Awards, Technology & New Media for the virtual tour.
BROWNFIELDS COMMUNITY IMPROVEMENT PLAN (CIP)
The Brownfields Community Improvement Plan was approved by Town Council in July of 2018 and includes three financial incentive programs designed to promote private sector reinvestment in brownfields that will bring environmental, economic, and social benefits to the community. The program is being implemented in 2019 with the first application received in January.
INTERNATIONAL BUSINESS
In February a Chinese New Year reception was hosted in partnership with the Oakville Chinese Business Association and the Oakville Chinese Network. The event featured performances, music, and a traditional Lion Dance, enjoyed by more than 600 guests.
As part of the Town’s ongoing relationship with Pengzhou, two local artists participated in an international event and created art work to be exhibited in the Chinese city.
MUNICIPAL ACCOMMODATION TAX
Staff led the external consultation and cross-departmental development and implementation of this new tax on local accommodations that will support the tourism industry.
ONE-WINDOW FOR FILMING
Working with a cross-departmental team, a new web portal and online application were implemented with further review and streamlining of payments, fees, and process to be undertaken in 2019.
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OUR SERVICES BUSINESS RETENTION AND EXPANSIONIndustry network and partnership opportunitiesCorporate calling program
RESEARCH AND ANALYSISEconomic, demographic, and sector data and analysis Competitive positioning research and monitoring Annual economic reporting
SITE SELECTIONRelocation and site selection services Information on land development approvals Database of available sites and buildings
INVESTMENT ATTRACTIONInvestment attraction marketing Lead servicing International Sister Cities initiatives
www.investoakville.ca @InvestOakville Invest Oakville [email protected] 905-845-6601
ECONOMIC DEVELOPMENT OFFICE
Oakville’s Economic Development team is available to provide guidance and support through every stage of business development.