Economic Development Division

Transcription

1 ECONOMIC DEVELOPMENT Q4 REPORT Halton Region s Economic Development Division October December 2010 Halton Creating New Economic Development Strategy In This Issue Halton Creating New Economic Development Strategy Housing Halton s Small Business Quick Facts The Regional Municipality of Halton is in the process of creating a new ten-year Economic Development Strategy. The economic development strategy is a reflection of the Halton community s aspirations for the region s economic future and will provide direction for Halton Region s priorities in economic development and service delivery. In December 2009, Regional Council adopted Regional Official Plan Amendment No. 38 (ROPA 38) Halton s response to conform to Ontario s policy planning initiatives. ROPA 38 plans for 780,000 residents and 390,000 jobs in Halton by ROPA 38 outlines the goal for Economic Development in Halton is to achieve sustainable economic prosperity on the basis of its competitive location, innovative businesses, skilled labour force, high quality infrastructure, sustainable natural resources, a positive business environment, and a diversified economic base. The new Economic Development Strategy will incorporate these principles and objectives. The Economic Development Strategy project will be completed in four phases over a ten month period ending November 2011: Phase 1 involves establishing Background Material; Phase 2 involves performing Stakeholder Consultations; Phase 3 identifies and reports on Strategic Directions; and finally, an Implementation Plan and Marketing Communications Plan will be developed in Phase 4. The Implementation Plan will outline the strategic goals and objectives, action items and performance measures that will be the focus of the Economic Development Strategy over the short, medium and longer term horizons. The project will be undertaken partly in-house in combination with multiple consulting assignments. The Region has awarded Millier Dickinson Blais the role of lead consulting firm with responsibility for Phase 1 to 3, in combination with Watson & Associates, Queen s School of Business and DTZ Barnicke. It is anticipated that a separate consulting firm will assist in the creation of the Marketing and Communications Plan in Phase 4. If you would like to participate in public discussions and workshops, receive notifications, or if you have any questions about the Halton Economic Development Strategy, contact Economic Development at , toll free at HALTON ( ), or economicstrategy@halton.ca.

2 2 Q4 REPORT ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT Q4 REPORT 3 Charles Sturt University Expands in Burlington Australia s Charles Sturt University (CSU) is expanding its Burlington offerings to create three new undergraduate business degrees and another in forensic biotechnology, targeting local college graduates looking to top up their qualifications. The non-profit university is waiting on approval for a new nursing program and looking into other fields. CSU s philosophy is to identify and fill gaps in Ontario s post-secondary landscape, and works co-operatively with Mohawk and Sheridan colleges and McMaster University. Starting in September, College business grads will study an additional two years at CSU to convert their three-year diplomas into degrees under a plan recently approved by Ontario s ministry of colleges and universities. The forensic biotechnology program starts in January, bridging Mohawk biotech graduates to university degrees. CSU s growing curriculum means the university needs more space. The university is now completing a $1.5 million, 11,000 square foot expansion to its existing space on Harrington Court in Burlington. The expansion will bring its capacity to 500 students, which may soon be full. The three new business programs alone are expected to bring in 50 students each in the first years, with another 30 in each year of the biotechnology program. The university hopes to expand them in future years. CSU is also seeking approval to form a degree-completion partnership with Sheridan in nursing, similar to the partnership between McMaster and Mohawk. CSU also hopes to establish programs in social work and digital media. With CSU projecting a total student body of as many as 3,000 within the next five years, the university is already looking at its next expansion, possibly to a free-standing, purpose-built facility. Source: Hamilton Spectator, November 17, 2010 Maple Leaf Closes Sale of Burlington Pork Processing Plant Maple Leaf Foods Inc. announced that it has closed the sale of its Burlington pork processing operation to an affiliate of Sun Capital Partners Inc., Fearmans Pork. Proceeds of from the sale are estimated to be approximately $20 million. The transaction includes a long-term contract with Maple Leaf Foods rendering operations. The Company s prepared meat operations in Canada will continue to be an important customer for the facility. The Ontario pork processing business is an impressive facility with significant potential to increase production levels. We are fully committed to growing the business, brining our investment experience in the food processing industry to bear, working closely with hog suppliers and serving the markets with top-quality products. We believe there is an opportunity to further expand into international markets and built out the company s market share for specialty and value-added products, said Anthony Polazzi, Principal at Sun Capital Partners. Maple Leaf Foods will continue to be an important customer as we move forward. Maple Leaf Consumer Foods will maintain a very strong relationship with the Burlington business which will supply its eastern Canadian operations. There will also be a continued relationship with the Rothsay rendering business, which will continue to provide services to the Burlington operation. Source: CNW Group November 9 & 10, 2010 GO Transit Expands Rail Service to Acton Metrolinx has announced the expansion of the GO Transit rail service on the Georgetown GO line to Acton. The two morning and two evening trains are scheduled to begin service by the end of The expansion of the rail service is part of GO Transit s expansion from Georgetown to Kitchener-Waterloo, which includes stops in Guelph and Acton. An Environmental Assessment for this expansion was completed in 2009 and approved by the Minister of the Environment in January Sun Products Corporation Leases New Warehouse Distribution Facility in Milton The Sun Products Corporation has recently leased the entire 405,000 square foot facility at 8690 Escarpment Way in Milton. Sun Products is a leading North American manufacturer and marketer of fabric care and household products with annual sales of more than $2 billion. While Sun Products has made the investment, the new manufacturing/warehouse facility will be operated by DB Schenker Logistics. Schenker Logistics is one of the top Logistics Services Providers in Canada, and one of the world s leading providers of integrated logistics services, offering land operations, air and ocean freight as well as comprehensive logistics solutions and global supply chain management from a single source. Additional land adjacent to the existing building allows for further expansion up to 580,000 square feet. Source: Milton Economic Development Q Report Two Companies Establish Offices in Milton Oxi-Brite and Vector Group have established offices in a new multi-unit facility on Escarpment Way. Oxi-Brite, who moved their head office from an industrial plaza on Industrial Drive in Milton, is a green ideas company. Its green products include household and automotive cleaners. Vector Group is new to Milton and is based out of Winnipeg. Vector is a recognized leader in the areas of concrete restoration and protection, and corrosion technologies for reinforced concrete masonry structures. The 110,000 square foot Escarpment Way facility was built by the Hospitals of Ontario Pension Plan (HOOP). Future phases of the Escarpment Business Community will see development occur further west of Highway 25 and north of Highway 401. Source: Milton Economic Development Q Report Physician Recruitment program gets top marks Halton Region s Physician Recruitment program has attracted and retained an impressive number of physicians. Since 2003, the program has helped bring over 130 new family doctors to Halton. In addition, several family physicians have been recruited to cover long term locums, such as maternity leaves, and several other new family physicians have established part time practices in the area. The Physician Recruitment program addresses the issue of family medicine physician recruitment, ensuring the delivery of effective health services to Halton residents today and in the future, said Gary Carr, Halton Regional Chair. The program has enjoyed tremendous success: over 20 family physicians have established their practice in Halton over the past year. An increased patient demand, an ageing population, planned physician retirement, changing physician practice patterns and a projected population growth in Halton of 25 per cent by 2019, mean that the need for new physicians will continue.

3 4 Q4 REPORT ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT Q4 REPORT 5 Recent changes by the Ministry of Health and Long- Term Care (MOHLTC) bode well for the program. All four of Halton s Local Municipalities meet the eligible community criteria for the Ministry s Postgraduate Return of Service Program (ROS Program). The Program enables communities to recruit international medical graduates who completed their medical degree outside Canada and who are receiving their postgraduate residency training in an Ontario medical school. These physicians are able to fulfil their ROS in eligible communities across the province, including Halton. According to Halton Region s Physician Recruitment Coordinator, Angela Sugden-Praysner, Over 50 per cent of all new family physicians recruited to Halton in the past three years are physicians who trained internationally and who have a ROS to fulfil. Maintaining access to this pool of available physicians is an important part of physician recruitment in Halton. The program continues to support the Halton McMaster Family Health Centre family medicine teaching unit, which opened in May The Centre will have six family medicine residents in July 2011, with an anticipated 10 to 12 in subsequent years. Training will take place in Burlington, Oakville and Milton. The Physician Recruitment program also provides on-going support, along with the Town of Halton Hills, to the (MOHLTC) funded Nurse Practitioner program at the Acton Medical Clinic. Halton Hosts Community Meeting to Discuss Potential Location of Provincial Niagara to GTA Corridor Highway On December 13, over 800 citizens from the City of Burlington attended a community meeting to discuss the potential location of the Provincial Niagara to GTA Corridor Highway. The community meeting, hosted by Regional Chair Gary Carr, Burlington Mayor Rick Goldring, City of Burlington and Regional Councillor Blair Lancaster and City of Burlington and Regional Councillor John Taylor heard a wide range of views from citizens regarding recent provincial documents that include the potential Provincial highway in the Region of Halton and the City of Burlington s official plans. Official Plans are the land use planning documents required to guide growth in municipalities. The Ontario Ministry of Transportation (MTO) has initiated Phase 1 of the Niagara to GTA Corridor Planning and Environmental Assessment Study. This study is being carried out within the context of the Growth Plan for the Greater Golden Horseshoe (June 2006) released by the Ontario Ministry of Public Infrastructure Renewal. Phase 2 will include refining the study area, assessing alternative transportation methods, selecting the preferred transportation method(s), and developing concept designs. Halton Economic Development and Partners Travel to Brazil for Foreign Direct Investment Business Sales Initiative In November, Halton s Economic Development Director, John Davidson joined marketing partner, the Greater Toronto Marketing Alliance and other key economic development representatives from the Greater Toronto Area (GTA) on a foreign direct investment initiative to Brazil. The purpose of the mission was to provide the GTA economic development community with an opportunity to obtain firsthand knowledge of the business climate in Brazil and the potential for attracting investment into Halton and the GTA. The focus was on key sectors, including Information Technology (IT) Interactive Media; Life Sciences; Clean- Technology/Renewable Energy; Food Processing and Building and. Source: Greater Toronto Area Marketing Alliance Hot News November/December 2010 & Halton Economic Development Division Halton Economic Indicators Economic Indicator Q Q Percentage (%) or Percentage Point (pp) Change Total Population 1 480, , % Population Density (per sq km) % Labour Force 3 296, , % Unemployment Rate (Toronto CMA) 4 9.0% 8.4% 0.6pp Unemployment Rate (Hamilton 7.9% 6.7% 1.2pp CMA) 4 Employment Insurance Beneficiaries 5 5,507 4, % Number of Businesses 6 36,587 37, % Employment 1 254, , % Business Bankruptcies % Total Value 8 $434,307,098 $202,636, % Industrial $16,173,500 $5,964, % Commercial $41,490,480 $20,672, % Institutional $74,966,760 $51,824, % Residential $288,150,622 $113,022, % Industrial Vacancy Rate (4th Qtr) 9 6.8% 6.6% 0.2pp Office Vacancy Rate (4th Qtr) % 10.7% 0.7pp Average Household Income 3 $125,900 $122, % Occupied Dwelling Units 1 171, , % Housing Sales 11 1, % Average Housing Price 11 $492,929 $628, % Average Days on the Market % Sources: 1 Halton Region Best Planning Estimates, April 2007 (forecasted) 2 Based on Halton s land area of 967 square kilometres 3 Financial Post Markets, Canadian Demographics, 2009 and Statistics Canada, Labour Force Survey Estimates (Table , 3 month moving average, unadjusted), January Statistics Canada, Employment Insurance Statistics (Table , average number of beneficiaries receiving regular benefits), February Statistics Canada, Canadian Business Patterns. As of June 2009 and June Office of the Superintendent of Bankruptcy Canada, Local Municipal building departments and Halton Economic Development 9 CBRE, Q and Q Based on rates in Burlington, Milton and Oakville. 10 CBRE, Q and Q Based on rates in Burlington and Oakville. 11 Toronto Real Estate Board, Market Watch, December 2009 and December 2010 Halton s fourth quarter economic indicators suggest some cooling off in the recovery Halton has experienced since 2009, with development activity declining in all major building sectors. Halton s housing market also cooled slightly as sales dropped 18% from the same period in 2009 and the average number of days listings were on the market rose 8%. However, there were some positive economic indicators as the unemployment rates within the Toronto and Hamilton CMAs dropped slighted and the average number of Halton residents receiving regular employment insurance benefits fell 18%.

4 6 Q4 REPORT ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT Q4 REPORT 7 Halton s total value of new construction and expansions was down by 53% during the fourth quarter from the same period in 2009, declining to $202.6 million. The overall decrease in permit values was evident across all four Halton municipalities and in each construction type, with the steepest declines occurring in the residential, institutional and commercial classes, while industrial construction values were at minimal levels in the quarter. The only substantive increases recorded in the fourth quarter from the same period a year ago, include residential construction values in Oakville and increases in both industrial and institutional building permit values in Milton. There were a few noteworthy industrial and commercial developments which got underway during the fourth quarter, including a new multi-tenant commercial building in Milton, valued at $1.6 million, and two bank buildings in Oakville and Milton. Other significant investments that occurred during the period include a new elementary school and secondary school valued at $10.5 million and $25 million, respectively, and a new $12 million midrise retirement residence all located in Milton. Overall, there were 1,151 building permits issued in Halton during the fourth quarter, which represents a decrease of 41% from the same period in Residential permits accounted for 51% of all building permits issued and 19% were Industrial, Commercial or Institutional (ICI) permits. Number of Building Permits Issued in Halton by Development and Municipality, Q vs Q Residential* Non-Residential** Miscellaneous*** Total Q Q Q Q Q Q Q Q Burlington Halton Hills Milton Oakville HALTON REGION 1, ,963 1,151 * includes apartment registrations, renovations and additions ** includes industrial, commercial, institutional (ICI) *** excluding signs Source: Local Municipal building departments Value ($ thousand) of New Developments, Q vs Q4 2010* Burlington Oakville Milton Halton Hills Halton Q Q Q Q Q Q Q Q Q Q Residential 95, , , , , , , , , ,022.1 Industrial 3, , , , , , , ,964.1 Commercial 19, , , , , , , , , ,672.7 Institutional 2, , , , , , , ,824.2 Other 7, , , , , , ,153.4 Total Value 128, , , , , , , , , ,636.4 * Figures may not add due to rounding Top Industrial and Commercial Developments, Q4 2010* Name of Development Location Building Type Area (sq ft) Value ($) Derry Scott Developments Milton New Multi-Tenant Building 13,900 $1,600,000 CIBC Oakville New Office 6,394 $1,188,000 Scotiabank Milton New Office 5,060 $1,000,000 Javelin Technologies Oakville Office Renovation 11,205 $500,000 Ecosynthetix Burlington Industrial Warehouse Renovation 8,890 $500,000 Phoenix Contact Canada Milton New Headquarters and Warehouse 860 (foundation) $500,000 * Listing of all non-residential, non-institutional and non-retail developments in excess of $500,000 in construction value. Source: Local Municipal building departments. Value ($ thousand) of New Developments, 2009 vs 2010* Burlington Oakville Milton Halton Hills Halton Gross Floor Area (square feet) of Non-Residential Developments, Q4 2010* Residential 146, , , , , , , , , ,846.3 Industrial 13, , , , , , , , , ,210.2 Commercial 56, , , , , , , , , ,380.6 Institutional 60, , , , , , , , , ,040.4 Other 23, , , , , , , , , ,024.9 Total Value 300, , , , , , , , ,144, ,387,502.5 * Figures may not add due to rounding Burlington Oakville Milton Halton Hills Halton Region Industrial 28, , ,103 7, ,175 Commercial 306, ,485 60,009 53, ,311 Institutional 27,801 39, , ,026 Total ICI GFA 362, , ,133 60,447 1,405,512 * Excludes site servicing, heating and plumbing. Both new construction, additions and internal alterations are included.

5 8 Q4 REPORT ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT Q4 REPORT 9 Gross Floor Area (square feet) of Non-Residential Developments, 2010* Development Activity in Halton by Type, * Burlington Oakville Milton Halton Hills Halton Region Industrial 314, , , ,355 1,615,388 Commercial 1,209, , , ,157 2,548,506 Institutional 540, , ,784 44,782 1,742,389 Total ICI GFA 2,063,617 1,644,963 1,643, ,294 5,906,283 * Excludes site servicing, heating and plumbing. Both new construction, additions and internal alterations are included. Residential Non-Residential Residential Trendline Non-Residential Trendline * Including both residential and non-residential (industrial, commercial and institutional) building construction. ** Reporting final results for October and November 2010 and preliminary results for December Source: Statistics Canada, Building Permits Survey (Publication XWF), February Trends in Halton by Municipality, * Burlington Halton Hills Milton Oakville * Including both residential and non-residential (industrial, commercial and institutional) building construction. ** Reporting final results for October and November 2010 and preliminary results for December Source: Statistics Canada, Building Permits Survey (Publication XWF), February 2011.

6 10 Q4 REPORT ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT Q4 REPORT 11 Housing Industrial by Municipality, Q Burlington Milton Oakville Inventory (sq ft) 20.7 million 12.9 million 18.1 million Vacancy Rate 6.6% 8.5% 4.6% Absorption (sq ft) 434, ,346 95,771 Average Land $525,000 $575,000 $625,000 Price (per acre) Net Rental Rate $4.52 $5.02 $5.16 (per sq ft) Average Sale Price (per sq ft) $56.75 $ $77.01 Note: Information is not available for Halton Hills Source: CBRE, Q South Halton Office, Q Burlington Oakville Inventory (sq ft) 3.3 million 2.3 million Vacancy Rate 10.3% 11.1% Absorption (sq ft) 11,502 11,894 Under (sq ft) 0 140,468 Net Rental Rate (per sq ft) $15.43 $18.73 Source: CBRE, Q Available industrial space in Burlington, Milton and Oakville remained stable at a combined 1.7 million sq.ft. in the fourth quarter. Industrial vacancy rates meanwhile dropped significantly in Burlington (8.4% in Q3 to 6.6% in Q4) and Milton (11.4% in Q3 to 8.5% in Q4). Oakville s industrial vacancy rate remained the lowest at 4.6% in the fourth quarter. Combined, Halton industrial markets absorbed nearly 1.03 million sq.ft. of industrial space during the last quarter of 2010, an increase of 75% over the previous quarter and 126% higher than the same period in Overall, the cost of industrial space in Halton decreased slightly during the fourth quarter of In Burlington, net rental rates fell 10% from the previous quarter and the average sale price dropped 17%. Milton s net rental rate decreased 3% during the period, while the average selling price fell 35%. In Oakville, however, net rental rates increased 3% during the fourth quarter and there was a 27% increase in the average selling price of industrial space. South Halton s office market remained relatively stable during the fourth quarter of The amount of reported office space under construction remained unchanged from the previous quarter and the amount of office space absorbed fell back from the higher than average levels seen during the third quarter. In Burlington, 11,500 sq.ft of office space was absorbed ( 69% from the previous quarter) and Oakville s absorption fell 62% to nearly 11,900 sq.ft. Office vacancy rates dropped slightly from the third quarter in both Burlington (from 10.7% to 10.3%) and Oakville (from 11.6% to 11.1%). Net rental rates for office space remained virtually unchanged at $18.73/ sq.ft. in Oakville and dropped 2.7% to $15.43/sq.ft. in Burlington. Housing Starts and Completions in Halton Region, Q vs. Q Municipality Housing Starts % Change Housing Completions % Change Q Q Q Q Burlington % % Halton Hills % % Milton % % Oakville % % Halton Total 1, % % Note: Data is collected through the Starts and Completions Survey, which involves site visits of new self-contained single and multiple dwelling units. Housing starts are defined as the beginning of construction of a building, usually when the concrete foundation or footings have been poured. Source: Canada Mortgage and Housing Corporation, Housing Market Information, January 2011 Housing sales in the Greater Toronto Area (GTA) continued to drop during the fourth quarter, following super-charged sales activity during the first four months of The Toronto Real Estate Board reported 17,586 housing sales in the GTA between October and December, which is down 8% from the previous quarter and a decline of 18% from the same quarter in In Halton, there were 883 reported sales during the fourth quarter of 2010, representing an 18% decline from the same period last year. Housing units were also on the market slightly longer, averaging 53 days. The market cooling did not, however, translate into a decline in home prices in Halton s as average Halton Housing Overview,December 2010 Municipality Total Supply Under prices climbed to approximately $628,400 from $493,000 during the same period in New housing starts also dropped a considerable 36% in Halton during the fourth quarter from the previous year. The Canada Mortgage and Housing Corporation reported that 689 new single or multiple dwelling units began construction in Halton between October and December 2010, compared to 1,072 during the same period in Meanwhile, housing completions in Halton remained relatively stable, rising only 4% over the same quarter in mos. Average Absorption Burlington 1, Halton Hills Milton 1, Oakville 1,358 1, Halton Total 3,879 3, Note: Data is collected through the Starts and Completions Survey and Market Absorption Survey, which involves site visits of new self-contained single and multiple dwelling units. Absorption occurs after a unit has been completed and either sold or rented. Source: Canada Mortgage and Housing Corporation, Housing Market Information, January 2011

7 12 Q4 REPORT ECONOMIC DEVELOPMENT Small Business Centre Quick Facts Halton Small Business Centre Outreach Quick Facts Category Q Q %Change Total Inquiries (telephone/ /walk-in 2,105 1,636-22% visitors) Client Consultations % Seminars and Workshops % Seminar and Workshop attendance % Source: Enterprise Centre Reporting System Follow us: Halton Region Dial 311 or Toll free HALTON ( ) TTY Small Business Centre LPS-10087