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Halton RegionEconomic Review 2015

22

Table of contentsMessage from Regional Chair Gary Carr . . . . . . . . . . . . . . 3

Central location . . . . . . . . . . . . . . . . . . . . . . . . . 4

Overview: doing business in Halton . . . . . . . . . . . . . . . . 5

Overview: living in Halton . . . . . . . . . . . . . . . . . . . . . 6

Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Construction activity . . . . . . . . . . . . . . . . . . . . . . 10

Real estate activity . . . . . . . . . . . . . . . . . . . . . . . 16

Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . 23

2015 business news . . . . . . . . . . . . . . . . . . . . . . 27

Living here . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Our services . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Contact us . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Message fromRegional Chair Gary CarrHalton Region is committed to supporting and sustaining a strong local economy and ensuring businesses succeed throughout the region . When businesses locate in Halton, they are choosing one of the best places to do business in Canada . Businesses in our area benefit from a deep talent pool of professionals, proximity to leading educational institutions, easy access to major markets and a high quality of life that is second to none .

On behalf of Regional Council, I am proud to present Halton Region’s Economic Development – Economic Review 2015 report (2015 Economic Review) . This annual review provides an overview of business investment in our region and highlights how we are performing from an economic development perspective . By working together with our local municipalities and key community partners, we have again accomplished impressive results, including:

• Achieving a AAA credit rating for more than 25 consecutive years;

• Achieving a 5 .3 per cent unemployment rate, significantly lower than the rest of the Greater Toronto and Hamilton Area (GTHA), Ontario and Canada;

• Keeping property tax rates low when compared to other GTHA municipalities;

• Creating a confident business outlook, with 83 per cent of businesses surveyed anticipating economic conditions in Halton to remain stable or improve; and

• Investing in infrastructure with an additional $295 million into water, wastewater and transportation projects .

By planning for today and tomorrow, Halton Region will continue to support its vibrant and growing business community . I encourage you to learn more about our thriving economy, an integral part of what makes Halton a great place to live, work, raise a family and retire .

If you have any questions or comments, please contact me by dialing 311 or emailing gary .carr@halton .ca . You can also find me on Twitter @garycarrhalton, LinkedIn or Facebook .

Gary CarrHalton Regional Chair

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Halton

Washington1.5hrs 8hrs

Bu�alo30 min 1hr

Niagara Falls1hr

Toronto30 min

Waterloo30 min

Ottawa1hr 4.5hrs Montreal

1hr 5.5hrs

Boston1.5hrs 8hrs

New York1.5hrs 7hrs

Detroit1hr 3 hrs

Chicago1.5hr 7hrs

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5Overview: doing business in Halton

Population

Land area

Businesses

Jobs in Halton - workforce

Business parks

Credit rating

2015 Gross Regional operating budget

2015 Gross Regional capital budget

543,557

969 km2

13,259*

220,026*

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AAA

$800M

$406M

Halton’s four

municipalities:

City of Burlington

Town of Halton Hills

Town of Milton

Town of Oakville

* Preliminary estimate - Halton Employment Survey 2015

Sources: Statistics Canada Census, National Household Survey, Labour Force Survey, Building Permit statistics, Toronto Real Estate Board .

For more detailed demographics and maps, visit

halton .ca/datacentre

Demographics

Quality of life

In comparison

Population

Post-secondary education

Central location

30 mins to Toronto

1 hr to Niagara Falls

Median age

Average household income

Natural environment

Population growth

Unemployment rate

Diverse and multicultural communities

Growth in total construction value

Great place to live

Halton business owners say quality of life is in line or better than the rest of the GTHA .

544K

$808M

820K

$1 .1B

1M

AmericasEuropeAfricaAsiaOther

$1 .8B

2015

2000

2031

2009

2041

2015

51% 49%

$667,688

Average housing price 2015

39.3

64% $79K

6 .9%

65% $86K

6 .8%

74% $119K

5 .3%

Canada Canada

Canada

Ontario Ontario

Ontario

Halton Halton

Halton

420 km2 of green space

26 km of waterfront

13 conservation parks

Years

Overview: living in Halton

93%

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Employment

“Almost 50% of our employees live in Halton. It’s the perfect spot for our head office. Our customers appreciate that we’re here in the region. We expect to be here for a long time.”

Blake Macaskill – Managing Director, CIT Canada – Burlington, ON

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Employment overview

A strong labour market and a highly-educated

workforce give Halton businesses a

competitive edge.

For more information about Halton’s workforce, visit

halton .ca/whyhalton

Unemployment rateHalton 5.3%Lower than:Greater Toronto Area 7.1%Ontario 6.8% Canada 6.9%

Business growth+ 66new places of employment in 2015(13,259* business count)

Participation rateHalton 70.4%Higher than:Greater Toronto Area 66.8%Ontario 65.2%Canada 65.8%

Job growth+ 1,769new jobs created in 2015(220,026* employment count)

*preliminary estimate - Halton Employment Survey 2015 Source: Statistics Canada, Labour Force Survey – Custom tabulation, three-month moving avg . unadjusted

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Employment overview

Major employment sectors in Halton

Over 1/3of Halton business owners plan on hiring additional

staff in 2016

4 in 5Halton business owners rank availability of skilled labour

favourably

90%of Halton business owners anticipate steady or higher

profits in 2016

Retail Manufacturing Healthcare

Sources: Halton Business Conditions Survey 2015 and Halton Employment Survey 2015

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Construction activity

“The positive relationship between all parties – a.b.m. Canada, our chosen contractor, the Town of Milton and Halton Region – helped us to execute this project [the new head office and plastics manufacturing operation] in a short time period.”Franco Veglio – C .E .O . a .b .m . Canada - Milton, ON

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Development activity

Over the last decade, Halton’s average

annual non-residential development growth increased nearly 20%.

For detailed development statistics visit

halton .ca/datacentre

Halton non-residential construction value 2005-2015 ($ millions)

of Halton business owners plan on investing in growth over the next year .37%

Construction value

Change 2014-2015

Avg. change since 2005

Industrial -27% 22%

Commercial -9% 11%

Institutional 279% 76%

Total non-residential 24% 19%

Sources: Statistics Canada, Building Permits Survey (Publication 64-001-XWF), February 2016 and Halton Business Conditions Survey 2015

2005

439.6395.5

650.8574.8

392.6336.5 352.3

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

1,151.7

707.2

550.0

681.7

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Development activity

Total floor area built (sq. ft.)

2015 total value Growth 2014-2015

Industrial 3,800,278 316%

Office 345,485 -43%

Retail 267,320 -51%

Other* 662,477 8%

Total non-residential 5,075,560 89%

* projected

*Including institutionalSource: Halton Region, Non-Residential Development Charges Database

Halton annual non-residential total floor area (TFA)

built 2005 – 2016 (million sq. ft.)

Learn more at

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2005

5.07

4.02

5.95

3.87

1.68 1.572.02

7.16

2.102.69

5.08

3.30

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

halton .ca/datacentre

Development activity across GTHA

In 2014, 15.3% of Halton’s total assessment base was non-residential (industrial, commercial and institutional). This figure represents a 0.2% annual increase.

Source: Ontario Ministry of Municipal Affairs, Financial Information Returns

Non-residential portion of total assessment – Greater Toronto and Hamilton Area (GTHA), 2014

Halton Hills

Durham Region

Hamilton

Oakville

Halton Region

York Region

Milton

Burlington

Toronto

Peel Region

12.0 %

12.2 %

12.4 %

14.0 %

15.3 %

16.0 %

16.4 %

17.4 %

19.9 %

21.6 %

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Commercial development

Ten-year growth trend in commercial construction value across Halton 2005 – 2015 ($ millions)

2005

300232

364408

234178 190

532

310

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

299 271 Commercial $ value trendline forecast

Source: Statistics Canada, Building Permits Survey (Publication 64-001-XWF), February 2016

For a complete listing of commercial developments over $1M, please visit halton .ca/datacentre

$271MTotal value of new commercial construction

612,805 sq. ft.Total commercial floor area built*

Notable commercial developments:

$15.7MGreat Lakes Business Park, Oakville

$6.4MJoshua Creek Corporate Centre, Oakville

$2MLamenza Investments Corporation, Burlington

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*Includes office and retail

Industrial development

Ten-year growth trend in industrialconstruction value across Halton2005-2015 ($ millions)

Industrial $ value trendline forecast

For a complete listing of industrial developments over $1M, please visit halton .ca/datacentre

$129MTotal value of new industrial construction

3.8M sq. ft.Total industrial floor area built

Notable industrial developments:

$40MEmery Investments Distribution centre, Milton

$30MPrologis Distribution CentreIndustrial warehouse, Milton

$26MBroccolini Construction Inc.Storage warehouse, Halton Hills

2005

80105

156

232

364 118

42178 55

177

129

105 299 271

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

97110

Source: Statistics Canada, Building Permits Survey (Publication 64-001-XWF), February 2016

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Real estate activity

“This location [Oakville] appealed to us because it is a growing business community, is close to public transit and major highways, and has leading green design features, all of which support PwC’s environmental objectives. Our aim is to create a truly unique PwC work space that meets the diverse and long-term needs of the firm, both for our people and our business.”

Raj Kothari – GTA Managing Partner, PwC – Oakville, ON

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Industrial real estate market summary

Key demand drivers such as Halton’s premium

location, proximity to highways and availability

of new real estate continue to spur new development

of industrial space.

For more details about finding the right

location for business investment, visit

halton .ca/siteselection

GTA industrial market vacancy rates (%), 2014 – 2015

GTA industrial market absorption 2015 (sq. ft. millions)

Average net rent (per sq. ft.)

$5.44Representing Burlington, Milton and Oakville

$5.41GTA Source: CBRE Ltd ., MarketView Q4 2015

Toronto Scarborough Markham Vaughan Mississauga Brampton Oakville Milton Burlington Caledon

Q4-2014 Q4-2015

3.32.42.4

1.51.42.22.5

1.41.2

2.92

2.6

54.2

8.8

6

1.71.81 0.2

GTA East

TorontoCentral

GTA North

GTA West

-0.10 0.74

3.34

6.16

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Commercial real estate market summary

Ongoing employment land development and infrastructure advances will ensure that Halton

is well-represented in the GTA West’s office market growth in the

coming years.

For more information, visit

halton .ca/siteselection

$17.39Representing Burlington and Oakville

$17.69GTA

GTA office market vacancy rates (%), 2014 – 2015

GTA office market absorption, 2015 (sq. ft.)

Average net rent (per sq. ft.)

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Toronto Downtown

Toronto Midtown

Scarborough Markham North /

Richmond Hill

North Yonge Vaughan Mississauga City Centre

Brampton Oakville Burlington

5.6 4.7

14.316.3

10.97.97.4

13.612.510.211.5

5.9

16

24.8 26.5

21 1922

7.4 7

Q4-2014 Q4-2015

GTA East

TorontoDowntown

TorontoMidtown

GTA North

GTA West

-193,791

757,025

25,914 119,628-43,259

Residential real estate market summary

88% increase over the past five years

29% increase over the past five years

38% decline over the past five years

Housing sales

Average home price ($)

Average days-on-market

Source: Toronto Real Estate Board, Market Watch

29%

38%

88%

2010 2011 2012 2013 20152014

4,692 5,330 5,8096,982

8,8017,807

2010 2011 2012 2013 20152014

517,811 543,414 556,407 580,954667,688620,467

2010 2011 2012 2013 20152014

40

3127 30 27

25

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Propery taxes

Halton maintains competitive tax rates

for both industrial and commercial landowners.

Commercial tax rates in Halton are among the

lowest in the GTHA.

Contact us to find out more about industrial and

property tax rates

ecdev@halton .ca

Industrial property tax rates 2015 (% of taxable assessment)

Commercial property tax rates 2015 (% of taxable assessment)

Hamilton

Oshawa

Halton Hills

Burlington

Oakville

Milton

Brampton

Mississauga

Vaughan

Markham

5.66%

4.64%

3.13%

3.11%

3.02%

2.80%

2.68%

2.42%

2.03%

1.99%

Hamilton

Oshawa

Halton Hills

Burlington

Oakville

Milton

Brampton

Mississauga

Vaughan

Markham

3.62%

3.13%

2.26%

2.05%

1.9%

1.89%

1.84%

1.74%

1.70%

1.70%

Rates as of July 1, 2015 . Source: BMA Municipal Study, 2015

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Development charges

Competitive development charges and available serviced

employment lands make Halton a desirable

GTHA location.

Contact us for further information about development

charges in Halton.

ecdev@halton .ca

Development charge rates* across Halton, 2015 ($/sq. ft.)

Development charge rates* across GTHA, 2015 ($/sq. ft.)

Source: Halton Region1 Rates as of July 1, 2015 - applies to commercial retail .2 Rates as of July 1, 2015 - applies to non-retail (industrial and office)3 Does not include Milton area-specific charges in Boyne Survey, Sherwood Survey or Derry Green4 Rates as of July 1, 2015 – Non-retail applies to industrial only and retail applies to retail and office

*Includes upper- and lower-tier municipal rates and education charges Source: BMA Municipal Study 2014

HALTON

Halton Hills (Built Boundary) 4

Milton (Built Boundary)

Halton Hills (Green�eld) 4

Milton (Green�eld) 3

Oakville (Built Boundary)

Burlington (Built Boundary)

Oakville (Green�eld)

Burlington (Green�eld)

0 10 20 30 40 50

Retail 1

50 45 40 35 30 25 20 15 10 5 0

Non-retail 2

Toronto

Oshawa

Hamilton

Mississauga

Brampton

Markham

VaughanSelect GTHA

50 45 40 35 30 25 20 15 10 5 0

Industrial

0 5 10 15 20 25 30 35 40 45 50

Commercial

Source: BMA Municipal Study 2015 & Regional Municipality of Halton* Halton Rates as of July 1, 2015. Applies to non-retail (ind. & o�ce)** Does not include Milton area

Source: BMA Municipal Study 2015 & Regional Municipality of Halton* Halton Rates as of July 1, 2015. Applies to Commercial Retail**Does not include Milton Area Specific charges in Boyne Survey, SherwoodSurvey or Derry Green.

HALTON

Halton Hills (Built Boundary) 4

Milton (Built Boundary)

Halton Hills (Green�eld) 4

Milton (Green�eld) 3

Oakville (Built Boundary)

Burlington (Built Boundary)

Oakville (Green�eld)

Burlington (Green�eld)

0 10 20 30 40 50

Retail 1

50 45 40 35 30 25 20 15 10 5 0

Non-retail 2

Toronto

Oshawa

Hamilton

Mississauga

Brampton

Markham

VaughanSelect GTHA

50 45 40 35 30 25 20 15 10 5 0

Industrial

0 5 10 15 20 25 30 35 40 45 50

Commercial

Source: BMA Municipal Study 2015 & Regional Municipality of Halton* Halton Rates as of July 1, 2015. Applies to non-retail (ind. & o�ce)** Does not include Milton area

Source: BMA Municipal Study 2015 & Regional Municipality of Halton* Halton Rates as of July 1, 2015. Applies to Commercial Retail**Does not include Milton Area Specific charges in Boyne Survey, SherwoodSurvey or Derry Green.

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Development activity across GTA

GTA industrial market shares, 2015 GTA comparison of total building permit construction value 2015

($ thousands per capita*)

Second strongest development market by size across the GTA in 2015.

Overall, Halton’s total construction value grew by 17% over 2014.

GTA commercial market shares, 2015

*2011 population estimatesSource: Statistics Canada, Building Permits Survey (Publication 64-001-XWF), February 2016

Halton PeelYork

3.7 3.583.4

2.99

2.37

DurhamToronto

ICI Residential

22

Halton

11%

41%15%

11%

22%

Peel

York

Durham

Toronto

$ 1.1 BGTA Industrial

construction value

Halton

7%14%

16%

3%

60%

Peel

York

Durham

Toronto

$ 3.8 BGTA Сommercial

construction value

Infrastructure

“A review of Greater Toronto Area corridors shows Halton Region as having the least congested corridors compared to other regional municipalities.”CIMA + Consulting, Time Delay Study 2014

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Employment lands: infrastructure

Halton’s inventory of serviced employment land coming on stream over the next several years will help ensure Halton continues to be investment ready.

Regional servicing: $63 .2M trunk

infrastructure (initiated 2014/

completion 2017)

Status: Secondary Plan approved

by Halton Region in 2013, Ontario

Municipal Board (OMB) approval 2015

Regional servicing: $42 .7M trunk

infrastructure (initiated 2011)

Status: Regional Official Plan

Amendment (ROPA) 38 added 240 ha of

employment lands, ROPA 43

re-phased employment areas affected

by GTA West Environmental Assessment

(EA) post 2021

Regional servicing: $8 .3 million trunk

infrastructure

Status: Trunk water and wastewater

servicing completed 2015

Milton Derry Green Corporate Business Park

Halton Hills 401 Corridor

Oakville Winston Park West

For more details about Halton’s business parks, visit halton .ca/businessparks

HaltonHills

Milton

OakvilleBurlington

Milton Derry Green Corporate Business Park

Halton Hills 401 Corridor

Oakville Winston Park West

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In 2015, Halton’s area servicing plans will help ensure that employment land is investment-ready

and that urban growth centres have the necessary infrastructure identified for intensification.

Employment lands: area servicing plans (ASP)

Bronte Meadows, Burlington • Contract awarded; work underway • Final ASP expected by Fall 2016

Halton Hills 401 Corridor• ASP to commence in 2017

Midtown Oakville• Contract awarded; work underway• Final ASP expected by late Fall 2016

Milton Education Village• Timing of the ASP will be determined in line with the Milton Education Village Secondary Plan

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Employment lands: infrastructure highlights

Regional roads• Steeles Avenue reconstruction: Widening of Steeles Ave . between Winston Churchill Blvd .

and Trafalgar Rd . in Halton Hills completed in 2015

• Derry Road underpass: Underpass grade separation on Derry Road in Milton completed in 2015

Water and Wastewater• Mid Halton Wastewater Treatment Plant: Plant upgrades and expansion to increase

capacity and construct a new operations facility

• Skyway Wastewater Treatment Plant: Plant upgrades and expansion to increase capacity and construct a new operations facility and region-wide laboratory

• Britannia West Corridor Project: Extension to service lands from Sixteen Mile Creek to Tremaine Road in Milton

• Zone 1 Watermain: Tunneling watermain from Burloak Water Purification to Kitchen Reservoir to supply future development lands in north Oakville and Milton

FacilitiesPolice headquarters: Construction began on a new, state-of-the-art, 235,000 sq . ft . facility for the Halton Regional Police Service’s Headquarters in October 2015 . The facility is slated to be operational by 2017 and will be a central hub for police training, forensics, evidence management and administration .

In 2015, Halton invested $295 million into water, wastewater and transportation projects. More than $3 billion is planned to be invested over the next 10 years (to 2025).

For more information about infrastructure investment in Halton, visit halton .ca/advancedinfrastructure

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2015 business news

Halton’s competitive edge as a leading business location continues to bring outstanding investment to the region.

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Moody’s Investors Service reaffirms AAA credit rating for Halton Region .

Halton Healthcare Services opens their new, state-of-the-art, $2 .7 billion Oakville-Trafalgar Memorial Hospital .

The 2015 Pan Am/Parapan Am cycling events were held at the new world-class Mattamy National Cycling Centre in July and August .

Ford Motor Company celebrates the global production start of the all-new 2015 Ford Edge at the newly-transformed Oakville Assembly plant and hires an additional 400 employees .

L-3 WESCAM receives $75 million investment from the Federal Government to build next generation surveillance technology .

Laker Energy Products purchases a 65,000 sq . ft . manufacturing facility in Oakville .

Lowe’s opens a state-of-the-art 1 .3 million sq . ft . distribution facility .

Neovia Logistics opens a new state-of-the-art 435,000 sq . ft . facility in Halton Hills .

Three Halton companies named to 2015 Profit 500: Life Science Nutritionals, Secure Sense Solutions and ThreeOFour .

Atlantic Wind & Solar chooses Burlington for a 320 KW Solarpower plant .

Emery Investments breaks ground on new 410,000 distribution centre in Milton .

Carttera Private Equities breaks ground on new business park in Oakville .

2015 Halton business news

halton .ca/business

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The latest economic development information, including an RSS feed, is available at

HaltonHills

Milton

OakvilleBurlington

Neovia Logistics

Halton Healthcare

L-3 WESCAM

Laker EnergyLife SciencesNutritional

* Atlantic Wind & Solar

Lowes Distribution

ThreeOFour

Emery Investments

FordCarttera

Secure Sense Solutions

Mattamy National Cycling Centre

*

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Living here

“Halton offers such a range of high-quality neighbourhoods that it is no surprise many Siemens Canada employees call it home and love to avoid a daily commute downtown.”

Robert Hardt – President and CEO, Siemens Canada – Oakville, ON

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Halton communities rank within top 10

Halton Region is one of the best places in

Canada to live and do business.

For more details why Halton is a great place to live and invest, visit

halton .ca/whyhalton

#1Overall Best Medium-sized City to Live - Burlington

#9Overall Best Small-sized City to Live - Halton Hills

#1Best Place for

Business - Milton

#2Overall Best Places to Raise Kids – Burlington

#6Best Places for New Immigrants – Burlington

#2Overall Best Medium-sized City to Live – Oakville

#4 Best Places for Business – Burlington

#7 Best Places to do Business – Oakville

#10 Best Places to Retire – Burlington

#9Best Places to Raise Kids – Halton Hills

#4Best Places to Raise Kids – Oakville

#8 Best Places to Raise Kids – Milton

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Source : Rogers Media - Profit and MoneySense

Our services

Halton’s Economic Development group can assist with your investment and location needs, offering a one-window approach.

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With a broad range of knowledge and contacts, we can provide you with support services and a detailed response that provides the information you need on our region’s economy, labour force, business costs, infrastructure, real estate and lifestyle.

Halton economic development services

Business development & site selection

Industry news & resources

Online data centre First point of contact

1

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905-825-6000 or 1-866-442-5866

ecdev@halton.ca

1151 Bronte RoadOakville, Ontario

L6M 3L1CANADA

halton.ca/invest

For more information about Halton or to get connected to opportunities,contact Halton’s economic development team:

@haltonbusiness Facebook.com/haltonbusiness Linkedin.com/haltonbusiness

Join the conversation!

Contact us 33