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NWT Industry Profiles

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NWT Industry Profiles NORTHWEST TERRITORIES OPPORTUNITIES STRATEGY INDUSTRY PROFILES (AND SWOT ANALYSIS) WINTER 2012-2013 NWT Chamber of Commerce Northern Aboriginal Business Association NWT Association of Communities Industry, Tourism and Investment (ITI) TABLE OF CONTENTS Accommodation and Food · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 4 Agriculture · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 10 Arts and Fine Crafts· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 14 Construction· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 18 Film Industry· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 24 Commercial Fisheries · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 28 Fur Harvesting · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 34 Manufacturing · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 38 Retail Trade· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 42 Tourism · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 50 Transportation· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 56 Wholesale Trade· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 62 Non Renewable · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 70 Energy · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 78 A Message from the Governance Committee The Governance Committee of the Economic Opportunities Strategy, in partnership with industry associations, has completed the 14 industry profi les contained in this publication. These profi les are designed to provide a consistent and objective overview of each industry, its current contribution to the economy, its potential, and the actions required to maximize that potential. Although government and industry play important roles, economic development requires the participation of us all; individuals, businesses, communities, Aboriginal organizations and government. We all have to work towards creating an investment climate which encourages growth. We are confi dent these profi les will contribute to this process. Email the panel If you have any comments or observations, please e-mail the Economic Opportunities Strategy Advisory Panel at comments@NWT Opportunities.com. ACCOMMODATION AND FOOD This sector is comprised of This sector is comprised of establishments Within the industry, the food, beverage and establishments primarily primarily engaged in providing short-term drinking component accounts for 61 per cent engaged in providing lodging and complementary services to of employment. Employment growth in food, short-term lodging and travellers. In addition, this sector also includes beverage and drinking places has increased complementary services establishments engaged in preparing meals, by 62 per cent or 412 jobs, a surprisingly high to travellers. In addition, snacks and beverages for consumption on and increase given that overall NWT employment this sector also includes off the premises. growth has decreased over the past fi ve years. establishments engaged in The chart below highlights the trend. preparing meals, snacks and As an industry, accommodation and food beverages for consumption services adds $66 million to the NWT economy on and off the premises. and accounts for about 1,777 jobs. Employment in Accomodation and Food Services, 1999-2011 2,000 1,834 1,777 1,800 1,736 1,600 1,508 1,443 1,433 1,436 1,460 1,406 1,392 1,394 1,400 1,200 1,155 1,086 1,000 800 600 400 200 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Statistics Canada 4 NORTHWEST TERRITORIES OPPORTUNITIES STRATEGY | INDUSTRY PROFILES Accommodation Business Employment As defi ned by Statistics Canada, the The chart refl ects the positive impact of accommodation business sector includes diamond mine investment between 2000 and businesses that provide short-term lodging to 2002, as well as the negative impact of the world travellers, vacationers and others. It includes economic downturn in 2008. Employment hotels, motor hotels, resorts, motels, casino growth has levelled off over the last decade. hotels, bed and breakfast accommodation, housekeeping cottages and cabins, recreational vehicle parks and campgrounds, hunting and fi shing camps, and various types of recreational and adventure camps. Industry growth is correlated to investment and tourism volumes. Employment in Accommodation Businesses, 1999-2011 800 696 700 679 676 658 646 619 628 594 599 600 566 578 500 438 418 400 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Statistics Canada INDUSTRY PROFILES | NORTHWEST TERRITORIES OPPORTUNITIES STRATEGY 5 Restaurant Tavern Sales The Northwest Territories banned smoking in Development of a new mining property, for public places and workplaces in May 2004. As example, will result in signifi cant visitation by shown in the sales chart below this ban has had business people, consultants and specialized a minimal impact as total annual restaurant and construction workers. As investment in the NWT tavern sales have steadily increased since 2004. increases or decreases, one can expect that overall sales for the sector will mirror investment Industry sales are tied to incomes, population activity in the territory. change, tourism and business investment. Restaurant and Tavern Sales, 2000 - 2011 (In Thousands of Dollars) 100,000 90,000 87,804 84,351 83,389 81,409 82,522 82,666 80,000 72,595 73,550 70,000 67,094 68,161 66,726 60,000 50,000 44,454 40,000 30,000 20,000 10,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Statistics Canada 6 NORTHWEST TERRITORIES OPPORTUNITIES STRATEGY | INDUSTRY PROFILES Accommodation Investment and Outlook Capital Expenditures Investment is necessary to maintain a Investment in “accommodation and food business and to expand sales. Investment also services” has experienced a sharp decline over acts as a barometer of business confi dence. the last few years from a high of $15 million in New investment usually indicates growing 2006. Projected capital investment for 2012 is confi dence in the future. $3.4 million. NWT Capital Expenditures (In Millions of Dollars) 2010 2011 2012 TotalCapitalExpenditures 1,247 1,142 1,378 Construction 1,005 869 1,063 Machinery&Equipment 241 272 316 Private 914 849 1,080 Construction 712 622 813 Machinery&Equipment 203 227 267 Public 333 293 299 Construction 294 247 250 Machinery&Equipment 39 46 49 SelectedIndustries: Agriculture,forestry,fishingandhunting 11x Miningandoilandgasextraction x 587 789 Utilities 38 52 51 Construction 18 17 18 Manufacturing 1x0 Wholesaletrade 5x7 Retailtrade 11 10 11 Transportationandwarehousing 51 x 85 Informationandculturalindustries xx17 Financeandinsurance 6x3 Realestateandrentalandleasing 25 26 26 Professional,scientificandtechnicalservices 8x13 Managementofcompaniesandenterprises xx1 Administrativeandsupport,wastemanagement x x 5 Educationalservices x6159 Healthcareandsocialassistance xxx Arts,entertainmentandrecreation xxx Accommodationandfoodservices 533 Otherservices(exceptpublicadministration) 699 Federalgovernmentpublicadministration 10 13 14 Provincialandterritorialpublicadministration 172 129 120 Localpublicadministration 34 32 46 Housing 85 79 85 Source: Statistics Canada INDUSTRY PROFILES | NORTHWEST TERRITORIES OPPORTUNITIES STRATEGY 7 Industry Outlook and food businesses. As long as both the Accommodation and food services growth is tourism and mineral markets are depressed, linked with tourism, population and investment. annual growth in sales for the sector will be The industry has likely already experienced limited. However, both tourism numbers and negative impacts from continuing problems commodity prices have been experiencing with the world economy. In fact, declines in rebounds of late, and as these markets improve, industry investment paralleled problems with sales in the accommodation and food services world economic development. sector are expected to also improve. Industry growth will likely be limited for the near term. Tourism and investment both provide signifi cant spin-off benefi ts to accommodation Accommodation - SWOT Analysis Strengths · Technology adoption. · Rates competitive to southern cities. · Lack of support services - accounting, · High incomes. trades etc. · Tourism market and potential growth. · Aging infrastructure in most centres. · Regional resource investments can stimulate Opportunities signifi cant market demand. · Increasing interest and exposure for the · Many businesses have a well established Northwest Territories - increased tourism reputation and loyal clientele. potential. Weaknesses · Increased interest in the NWT as a destination · Limited population growth - impacts market meeting locale. size and availability
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