Regional Profile

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Ontario’s Economic Development Strategy

Appendix A Regional Profile

February 2014

Contents

APPENDIX A: REGIONAL PROFILE ...... 1 REGIONAL ECONOMY 1 DEMOGRAPHIC CHARACTERISTICS 1 LABOUR FORCE AND EMPLOYMENT PROFILE 8

INDUSTRY PROFILES 20 LOCATION QUOTIENTS 20 BUSINESS PATTERNS ASSESSMENT 22

EASTERN ONTARIO’S SECTOR PROFILES 24 AGRICULTURE AND AGRI-BUSINESS 25 EDUCATION 27 ENERGY 29 FORESTRY (NATURAL RESOURCE DEVELOPMENT) 31 HEALTHCARE 33 INFORMATION AND COMMUNICATION TECHNOLOGY 34 LOGISTICS AND TRANSPORTATION 36 MANUFACTURING 38 TOURISM AND HOSPITALITY, RURAL CREATIVE ECONOMY 40

List of Tables and Figures Table 1: Population And The Rate Of Population Change In Eastern Ontario (2001-2011) ...... 1 Table 2: Net Increase Of Population In Eastern Ontario (2001-2011) ...... 2 Table 3: Percentages Of Individuals’ Income In 2010, Eastern Ontario Counties And Cities (2011) ...... 6 Table 4: Eastern Ontario’s Labour Force Characteristics (Summary) ...... 9 Table 5: Eastern Ontario’s Labour Force Characteristics (Full) ...... 10 Table 6: Eastern Ontario’s Net Labour Force Growth by Industry (2006-2011) ...... 14 Table 7: Eastern Ontario’s Net Labour Force Growth by Occupation (2006-2011) ...... 17 Table 8: Eastern Ontario’s Employment by Industry (2011) ...... 19 Table 9: Eastern Ontario’s Labour Force Location Quotient (2006 and 2011) ...... 21 Table 10: Eastern Ontario’s Number of Business Establishments by Industry (2008, 2012) ...... 23 Table 11: Eastern Ontario’s Number of Business Establishments by Industry and Employment Size (2012) ...... 23 Table 12: Eastern Ontario’s Agricultural Sector ...... 26 Table 13: Total Agricultural Sector Businesses by Eastern Ontario Counties ...... 26 Table 14: Eastern Ontario’s Education Sector ...... 28 Table 15: Total Education Sector Businesses by Eastern Ontario Counties ...... 28 Table 16: Eastern Ontario’s Energy Sector ...... 29 Table 17: Total Energy Sector Businesses by Eastern Ontario Counties ...... 30 Table 18: Eastern Ontario’s Natural Resources Sector ...... 32

Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Table 19: Total Natural Resource Sector Businesses by Eastern Ontario Counties ...... 32 Table 20: Eastern Ontario’s Health and Wellness Sector ...... 33 Table 21: Total Health and Wellness Sector Businesses by Eastern Ontario Counties ...... 34 Table 22: Eastern Ontario’s ICT Sector ...... 35 Table 23: Total ICT Sector Businesses by Eastern Ontario Counties ...... 36 Table 24: Eastern Ontario’s Logistics Sector ...... 37 Table 25: Total Logistics Sector Businesses by Eastern Ontario Counties ...... 37 Table 26: Eastern Ontario’s Manufacturing Sector ...... 38 Table 27: Total Manufacturing Sector Businesses by Eastern Ontario Counties ...... 39 Table 28: Eastern Ontario’s Tourism Sector ...... 40 Table 29: Total Tourism Sector Businesses by Eastern Ontario Counties ...... 40 Table 30: Eastern Ontario’s Cultural Sector ...... 42 Table 31: Total For-Profit Cultural Sector Businesses by Eastern Ontario Counties ...... 42

Figure 1: Distribution Of Population By Age, Eastern Ontario (Excluding Ottawa And Reserves) (2011) ...... 3 Figure 2: Distribution Of Population By Age, Eastern Ontario Counties (2011) ...... 4 Figure 3: Populations By Educational Attainment, Eastern Ontario (2011) ...... 5 Figure 4: Populations By Educational Attainment, Eastern Ontario Counties (2011) ...... 5 Figure 5: Post-Secondary Fields Of Study By Age Cohort, Eastern Ontario Counties (2011) ...... 6 Figure 6: Percentages Of Individuals’ Income In 2010, Eastern Ontario Counties And Cities (2011) ...... 7 Figure 7: TOTAL Number Of Migrants Aged 20-29 That Moved Into Eastern Ontario Cities ...... 8 Figure 8: Eastern Ontario’s Counties and Separated Cities Unemployment Rates (2011) ...... 10 Figure 9: Proportion of Total Labour Force by Industry (NAICS) (2011) ...... 13 Figure 10: Proportion of Total Labour Force by Occupations (NOCS) (2011) ...... 17 Figure 11: Place of Work Status in Eastern Ontario’s Counties and Separated Cities (2011) ...... 20

Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Appendix A: Regional Profile

Regional Economy

Demographic Characteristics

Population In 2011, Eastern Ontario was home to over two million people. Of the total population, the City of Ottawa accounts for just under half (883,391). Nearly as many people (726,270) live in the eleven counties and two upper tier municipalities. An additional 395,627 live in the separated cities within Eastern Ontario. Eastern Ontario represented 16% of Ontario’s total population in 2011 (2,005,288).

TABLE 1: POPULATION AND THE RATE OF POPULATION CHANGE IN EASTERN ONTARIO (2001-2011)

Pop. Change Pop. Change Pop. Change Population Population Population Geographic Area 2006-2011 2001-2006 2001-2011 2011 2006 2001 (%) (%) (%) Counties of Eastern Ontario 726,270 708,636 684,611 2.49% 3.51% 6.09% (not incl. any separated cities) Separated cities 395,627 384,611 372,069 2.86% 3.37% 6.33% (all except Ottawa) Counties plus separated 1,121,897 1,093,247 1,056,680 2.62% 3.46% 6.17% cities (excluding Ottawa) City of Ottawa 883,391 812,129 774,072 8.77% 4.92% 14.1%

Reserves 4340* 2455* 2043* - - - Total Eastern Ontario 2,005,288* 1,905,376* 1,830,752* 5.24% 4.08% 9.53% Region Ontario 12,851,821 12,160,282 11,410,046 5.69% 6.58% 12.64%

Source: Statistics Canada. Census of Population, 2001, 2006, 2011 *Eastern Ontario Reserve Population does not include all reserves. Due to statistical limitations with Statistics Canada several Reserve populations had data either suppressed or not available throughout the 2001, 2006 and 2011 Census. As such the total reserve populations figures presented here were not accounted in the final Eastern Ontario Region population count. Since 2006, Eastern Ontario has grown over five percent (5.24%), with Ottawa leading the way with a tremendous growth of 8.77% in the five year span. In order of rate of population increase, the fast growing counties (not including separated cities) in Eastern Ontario were: Hastings (8.83%), Prescott and Russell (6.48%), Haliburton (5.44%), Renfrew (4.01%), Lanark (3.78%), Lennox and Addington (3.16%), Peterborough (2.86%), Northumberland (1.44%), Stormont, Dundas and Glengarry (0.61%) and Leeds and Grenville (0.10%). Only three counties (not including separated cities) witnessed net declines in population: Prince Edward (-0.93%), Frontenac (-1.06%) (Note that in Frontenac population growth was over nine percent from 2001-2006 – highest at the time), and Kawartha Lakes (-1.81%).

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Eastern Ontario’s separated cities (not including Ottawa) also witnessed a fair amount of growth. In order of rate of population increase, the fast growing separated cities in Eastern Ontario were: Kingston (5.25%), Peterborough (4.37%), Pembroke (3.09%), Prescott (2.49%), Belleville (1.30%), Quinte West (0.91%), and Cornwall (0.82%). Three separated cities posted net declines in population: Brockville (-0.40%), Gananoque (1.72%) and Smiths Falls (-2.02%). It should be noted that while Eastern Ontario (excluding Ottawa) continues to grow, it is not growing at the same pace as it did from 2001-2006. Table 2, provides a comparison breakdown of the Counties and Separated cities net increases in the two five year periods (2001-2006 / 2006-2011). It can be seen that counties such as Frontenac and Kawartha Lakes each posted negative increases after posting large increases five years prior. This can be a result of Kingston and Peterborough’s continued efforts at attracting new residents (both cities posted the largest increases from 2006-2011).

TABLE 2: NET INCREASE OF POPULATION IN EASTERN ONTARIO (2001-2011)

Net Net Net Increase Net Increase Geographic Area (Counties) Increase Increase Geographic Area (Cities) 2006-2011 2001-2006 2006-2011 2001-2006 Frontenac -283 2,247 Belleville 633 2,792 Haliburton 879 1,062 Brockville -87 582 Hastings 3,438 436 Cornwall 375 325 Kawartha Lakes -1347 5,382 Gananoque -91 118 Lanark 2,067 1,267 Kingston 6,156 3,012 Leeds and Grenville 87 1,948 Pembroke 430 440 Lennox and Addington 1,282 1,081 Peterborough 3,292 3,432 Northumberland 1,163 3,466 Prescott 104 -48 Peterborough 1,561 284 Quinte West 389 1,331 Prescott and Russell 5,197 3,738 Smiths Falls -185 -363

Prince Edward -238 595 Separated Cities w/o Ott 11,016 11,621 Renfrew 3,351 1,967 Ottawa 71,262 38,057

Stormont, Dundas and Glen. 390 552 Total Separated Cities 82,278 49,678

Total Counties 17,634 24,025 EO Reserve Population -215* 412* Eastern Ontario w/o Ott. 28,650 35,646 Total Eastern Ontario 99,912 73,703

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Age Like most regions in Ontario, the population of Eastern Ontario is becoming progressively older. Eastern Ontario is also aging faster in relation to the Province as a whole. In all age categories 45 years old or older, Eastern Ontario has a higher relative percentage of its population in these groups than the Province (Figure 1). The most likely reasons are youth out-migration, coupled with the increasing age of the ‘baby- boomers’ demographic, and in-migration of retirees.

FIGURE 1: DISTRIBUTION OF POPULATION BY AGE, EASTERN ONTARIO (EXCLUDING OTTAWA AND RESERVES) (2011)

Source: Statistics Canada. Census of Population, 2011 All the counties (with the exception of Frontenac) have over 30% of their population in the waning years of their working lifetime. This poses challenges for the future as the counties will face pressures in terms of service delivery and access in allowing seniors to ‘age in place’ - in some counties (Haliburton and Prince Edward) the average age is well above 50. Figure 2 also illustrates that Eastern Ontario’s counties have significantly lower population distributions amongst their young workforce. Presumably this occurs because their population aged 20-24 is either pursuing higher education or employment outside of Eastern Ontario and not returning to Eastern Ontario upon completion of their studies.

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FIGURE 2: DISTRIBUTION OF POPULATION BY AGE, EASTERN ONTARIO COUNTIES (2011)

Source: Statistics Canada, Census of Population, 2011

Educational Attainment and Field of Study Educational attainment is one of the most important socio-economic indicators to consider when evaluating a community’s economic growth potential, as it speaks directly to its ability to staff new and existing businesses. As of 2011, Eastern Ontario had a smaller proportion of its population with post-secondary education (50.07%), when compared to the province (54.58%). Accordingly, the region had a greater proportion of its population with no certificate, diploma or degree compared to the provincial average. Figure 4 provides a closer look at individual counties and reveals that only Frontenac County in Eastern Ontario is above the provincial average for post-secondary education. Frontenac has the greatest access to post-secondary education due to its conglomerate of post-secondary institutions that call Kingston home (Queens University, Royal Military College, and St. Lawrence College). Several other counties are close or near the provincial average (Lanark, Leeds and Grenville, Prince Edward, Peterborough, Northumberland, and Haliburton). Likewise, a few counties fall well below the provincial average (Lennox and Addington, Hastings, Renfrew, Stormont, Dundas and Glengarry, Prescott and Russell, and Kawartha Lakes). Figure 5 illustrates the major fields of study of Eastern Ontario residents with post-secondary qualifications. Based on data from 2011’s National Household Survey, the predominant fields by number of graduates aged (25-64) were: Architecture, Engineering, and Related Technologies (21.25%), Health and Related Fields (17.70%), and Business, Management, and Public Administration (17.67%). These three fields of study comprise over half the post-secondary degrees held in Eastern Ontario. These results have significant bearing on the kinds of businesses and enterprises that are located in Eastern Ontario, the labour pool that can support the attraction of new industry, and the kinds of services and training programs required to meet labour force needs. Graduates and students aged 20-24 in Eastern Ontario are also traditionally rooted within the three predominant fields of study, interestingly however, they are also entering non-traditional fields such as

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Social and Behavioural Sciences and Law, Humanities, Visual and Performing Arts, and Communications Technology.

FIGURE 3: POPULATIONS BY EDUCATIONAL ATTAINMENT, EASTERN ONTARIO (2011)

Source: Statistics Canada. National Household Survey, Catalogue Number 99-012-X201147, 2011

FIGURE 4: POPULATIONS BY EDUCATIONAL ATTAINMENT, EASTERN ONTARIO COUNTIES (2011)

Source: Statistics Canada. National Household Survey, Catalogue Number 99-012-X201147, 2011

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FIGURE 5: POST-SECONDARY FIELDS OF STUDY BY AGE COHORT, EASTERN ONTARIO COUNTIES (2011)

Source: Statistics Canada. National Household Survey, Catalogue Number 99-012-X201147, 2011

Personal Income A community’s socio-economic composition is also determined by the income of its population. Table 3 provide census information on individual income for Eastern Ontario’s counties, separated cities, Ottawa and the province in 2010. Eastern Ontario has a greater percentage of individuals making income between $20,000 - $39,999 on average when compared to Ottawa and Ontario (Table 3). This might be attributed to the number of high quality jobs available in the region (see Business Patterns Assessment).

TABLE 3: PERCENTAGES OF INDIVIDUALS’ INCOME IN 2010, EASTERN ONTARIO COUNTIES AND CITIES (2011)

Und. $5K- $10K– $15K– $20K– $30K– $40K– $50K– $60K– $70K– $80K– $100K Over Geography $5000 9999 14999 19999 29999 39999 49999 59999 69999 79999 99999 –125K $125K Total EO Counties 8.9% 7.0% 9.2% 9.1% 15.0% 12.9% 11.0% 7.9% 9.9% 5.1% 8.9% 2.3% 1.8% Total EO Cities 9.0% 7.4% 10.0% 9.5% 17.0% 12.9% 10.4% 7.1% 8.6% 4.3% 9.0% 2.1% 1.9% Ottawa 9.4% 6.4% 7.7% 7.0% 10.4% 9.5% 9.3% 8.8% 12.7% 8.7% 9.4% 5.1% 5.0% Ontario 10.7% 7.2% 8.8% 8.8% 13.7% 11.5% 9.9% 7.5% 9.7% 5.8% 10.7% 3.0% 3.3%

Source: Statistics Canada. National Household Survey Community Profile, 2011, Percentage of Individuals over the age of 15 In addition to an overview of the region’s income levels, these figures can reveal insights into the social and economic issues facing a region. A high average income suggests high levels of disposable income, and the distribution of individuals across the income groups can indicate income inequality in the region. Figure 6 showcases the average and median income of Eastern Ontario counties and separated cities, along with Ottawa and Ontario’s averages. The median income in Eastern Ontario’s counties ($29,813) differs slightly than their separated cities counterparts ($27,062). This can be attributed to a number of factors including the concentration of social services provided by traditional urban centres and the diversity of housing options available in these centres (more affordable housing). Interestingly, Eastern Ontario (both the counties and separated cities) are behind the provincial average income rate ($42,264). This suggests that other parts of Ontario are receiving a greater share of high-

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paying jobs in comparison to Eastern Ontario. Indicative of this trend can be found in Eastern Ontario communities such as Kingston and Ottawa who both have large institutional presences that often attract high paying knowledge based jobs. Prince Edward and Prescott and Russell counties also demonstrated higher averages in income than other Eastern Ontario communities. This may be a result of an established older population moving into the areas that have carried over into senior positions across several businesses.

FIGURE 6: PERCENTAGES OF INDIVIDUALS’ INCOME IN 2010, EASTERN ONTARIO COUNTIES AND CITIES (2011)

Source: Statistics Canada. National Household Survey Community Profile, 2011, Percentage of Individuals over the age of 15 *EOC = Eastern Ontario Counties, EOS = Eastern Ontario Separated Cities

Young Adult Migration Young adult migration occurs predominantly within Eastern Ontario’s Separated Cities compared to their County counterparts. This may be attributable to the presence of many college and university campuses in those communities. Figure 10 provides a closer look at intraprovincial, interprovincial and external migrants between the ages 20-29 that have moved into Eastern Ontario’s separated cities from 2006-2011. Kingston, Belleville, and Peterborough, demonstrated the largest number of young migrants to enter their city borders. These three cities are known for their post-secondary institutions which gather a significant portion of their student base from surrounding rural communities. Queens University’s international acclaim can also be attributed to Kingston’s ability to attract several young out of country migrants. A healthy young migration of new residents is a good indicator of a strong community able to attract young talent from outside their borders.

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FIGURE 7: TOTAL NUMBER OF MIGRANTS AGED 20-29 THAT MOVED INTO EASTERN ONTARIO CITIES

Source: Statistics Canada. National Household Survey, Community Profiles, 2011

Labour Force and Employment Profile

Statistics Canada collects both labour force and employment data for the Canadian population aged 15 and over; or those considered part of the labour force based on capabilities. Labour force data is concerned with the employed and unemployed resident population of a community, regardless of the community in which the individual is employed. Employment, on the other hand, is concerned with the number of individuals employed within a certain community irrespective of where they live. While not a direct representation of the number of jobs in a community, employment data offers a better estimate of the total number of jobs contained in a community. The following section provides an overview of the characteristics of the labour force, the labour force by industry (North American Industrial Classification Standard - NAICS) and Occupation (National Occupational Classification - NOC), and the employment by industry (NAICS). For most variables and geographies, the most recent data is based on the 2011 National Household Survey.

Labour Force Characteristics The total labour force in Eastern Ontario (excluding Ottawa) grew by approximately 1.5% from 2006 to 2011. This number is even lower when discounting the separated cities in Eastern Ontario (1.2%). Eastern Ontario’s separated cities (excluding Ottawa) fared slightly better with a growth of 2.1% in the five year span. The City of Ottawa saw a tremendous growth in their labour force, a jump of 9.2% from 2006 levels. Comparatively, the province experienced a growth of 4.2%, double the levels witnessed by the separated cities and nearly quadruple that of the counties. While growth in the total labour force in Eastern Ontario (outside of Ottawa) is quite stagnant, it is their ratio of new workers replacing those that are leaving the workforce that is most concerning. Table 4 and Figure 8

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showcases labour characteristics for Eastern Ontario’s counties and separated cities. Eastern Ontario’s counties are experiencing a ratio of 1:4 for every new labourer to retiree; while Eastern Ontario’s separated cities have a slightly better ratio of 1:2 for every new labourer to retiree. Although low ratio levels are common across the province (province’s ratio is 1:4), Eastern Ontario’s counties are at a critical point to lose a significant amount of workforce in the next ten years as the population continues to age. A tight labour force market will reduce the availability of a workforce that meets the demands of business – limiting future business growth in Eastern Ontario.

TABLE 4: EASTERN ONTARIO’S LABOUR FORCE CHARACTERISTICS (SUMMARY)

Total In the Not in the Un- Self Geographic Population Un- Participation Self Labour Employed Labour employment Employed 15 Years and employed Rate (%) Area Force Force Employed (%) Over Rate (%) Counties of Eastern Ontario (not incl. any separated cities)

2011 605030 376400 348765 27455 228655 62.2% 7.3% 49065 13.0%

2006 585145 371990 350940 21025 213165 47.9% 5.7%

Change 19885 4410 -2175 6430 15490 ~ Ratio - 1 Entered Workforce : 4 Left Workforce Separated cities (all except Ottawa)

2011 321450 195140 178135 17190 126280 60.7% 8.8% 15450 7.9%

2006 310540 191125 177500 13625 119415 61.5% 7.1%

Change 10910 4015 635 3565 6865 ~ Ratio – 1 Entered Workforce : 2 Left Workforce City of Ottawa

2011 718960 498370 463625 34745 220590 69.3% 7.0% 45345 9.1%

2006 658495 456480 429575 26905 202020 69.3% 5.9%

Change 60465 41890 34050 7840 18570 ~ Ratio – 3 Entered Workforce : 1 Left Workforce Ontario

2011 10473670 6864990 6297005 567985 3608685 65.5% 8.3% 706425 10.3%

2006 9819420 6587580 6164245 423335 3231840 67.1% 6.4%

Change 654250 277410 132760 144650 376845 ~ Ratio – 1 Entered Workforce : 4 Left Workforce

Source: Statistics Canada. National Household Survey, Community Profiles, 2011 Note: Town of Prescott National Household Survey Community Profile is not available at the time of study due to statistical suppression from a low gross response rate that is required to meet Statistics Canada’s standards of validity. The Town’s numbers have been included within the Leeds and Grenville calculations The unemployment rate of a community’s population can be affected by a number of factors. One of the most central factors influencing an individual’s ability to obtain and sustain employment is educational attainment. In other words, those individuals with more education will typically have lower rates of unemployment than those individuals with less education. With this in mind, Table 4 and Figure 8 provide unemployment rates for Eastern Ontario. Despite Eastern Ontario’s counties having a low growth in labour

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force growth they combine for a 7.3% unemployment rate - a lower figure than both Eastern Ontario’s separated cities (8.8%) and Ontario (8.3%). The counties with a higher (or equal) unemployment rate than the Ontario average are: Haliburton (9.3%), Hastings (8.8%), Kawartha Lakes (8.4%), Prince Edward (8.4%), and Northumberland (8.3%). These counties (minus Hastings) suffer from a larger unemployment rate because unlike the other counties they do not contain separated cities (which act as the other counties’ primary employment centres).

FIGURE 8: EASTERN ONTARIO’S COUNTIES AND SEPARATED CITIES UNEMPLOYMENT RATES (2011)

Source: Statistics Canada. National Household Survey, Community Profiles, 2011 Eastern Ontario’s counties demonstrate a high level of self-employed workers in the labour force (13%). Counties such as Peterborough, Prince Edward and Haliburton each showcased self-employed levels greater than 15%. The strong self-employed labour force is a good indication of a durable entrepreneurial support system set in place. Table 5 provides a breakdown of labour force characteristics by county, separated city and Ontario

TABLE 5: EASTERN ONTARIO’S LABOUR FORCE CHARACTERISTICS (FULL)

Total In the Not in the Un- Self Population 15 Un- Participation Self Labour Employed Labour employment Employed Geographic Area Years and employed Rate (%) Force Force Employed (%) Over Rate (%) Frontenac 2011 21985 13920 13050 695 8065 63.3% 5.0% 1950 14.0% 2006 22095 13970 13215 750 8135 63.2% 5.4% Haliburton 2011 14940 7580 6870 705 7360 50.7% 9.3% 1205 15.9% 2006 13980 7620 7045 570 6360 54.5% 7.5%

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Total In the Not in the Un- Self Population 15 Un- Participation Self Labour Employed Labour employment Employed Geographic Area Years and employed Rate (%) Force Force Employed (%) Over Rate (%) Hastings 2011 35235 19835 18085 1750 15430 56.3% 8.8% 2590 13.1% 2006 32085 18675 17500 1165 13405 58.2% 6.2% Kawartha Lakes 2011 61245 36130 33065 3065 25115 59.0% 8.5% 5025 13.9% 2006 61460 37775 35420 2355 23685 61.5% 6.2% Lanark 2011 46965 30670 28420 2255 16285 65.3% 7.4% 4030 13.1% 2006 44640 29575 27925 1655 15060 66.3% 5.6% Leeds and Grenville (includes Town of Prescott*) 2011 59865 38220 35605 2615 21645 63.8% 6.8% 4855 12.7% 2006 58240 38260 36340 1920 19985 65.7% 5.0% Lennox and Addington 2011 33655 20815 19175 1640 12840 61.8% 7.9% 2155 10.4% 2006 32445 20415 19370 1040 12030 62.9% 5.1% Northumberland 2011 68120 41365 37925 3440 26755 60.7% 8.3% 5860 14.2% 2006 66105 40575 38135 2440 25535 61.4% 6.0% Peterborough 2011 47760 28605 26530 2075 19150 59.9% 7.3% 4620 16.2% 2006 48645 30520 28690 1830 18115 62.7% 6.0% 0 0.0% Prescott and Russell 2011 69075 47930 45390 2540 21150 69.4% 5.3% 5270 11.0% 2006 63785 44045 42180 1865 19745 69.1% 4.2% Prince Edward 2011 21605 11890 10885 1000 9720 55.0% 8.4% 1860 15.6% 2006 212315 12570 11810 760 8745 5.9% 6.0% Renfrew 2011 71160 44820 41310 3515 26340 63.0% 7.8% 4935 11.0% 2006 68145 43500 40595 2900 24645 63.8% 6.7% Stormont, Dundas, and Glengarry 2011 53420 34620 32455 2160 18800 64.8% 6.2% 4710 13.6% 2006 52205 34490 32715 1775 17720 66.1% 5.1% Total Eastern Ontario Counties (without Separated Cities) 2011 605030 376400 348765 27455 228655 62.2% 7.3% 49065 13.0% 2006 776145 371990 350940 21025 213165 47.9% 5.7% Belleville 2011 40530 24875 22905 1965 15655 61.4% 7.9% 2100 8.4% 2006 39925 25340 23695 1650 14590 63.5% 6.5% Brockville 2011 18595 10490 9620 870 8105 56.4% 8.3% 905 8.6% 2006 18310 10465 9665 795 7845 57.2% 7.6%

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Total In the Not in the Un- Self Population 15 Un- Participation Self Labour Employed Labour employment Employed Geographic Area Years and employed Rate (%) Force Force Employed (%) Over Rate (%) Cornwall 2011 37745 20850 18570 2285 16895 55.2% 11.0% 1430 6.9% 2006 37115 20755 19175 1575 16360 55.9% 7.6% Gananoque 2011 4305 2480 2365 115 1825 57.6% 4.6% 200 8.1% 2006 4375 2790 2575 220 1580 63.8% 7.9% Kingston 2011 100835 64935 59470 5645 35895 64.4% 8.7% 5110 7.9% 2006 95520 61235 56940 4300 34280 64.1% 7.0% Pembroke 2011 11560 6965 6460 505 4595 60.3% 7.3% 545 7.8% 2006 11290 6150 5750 400 5140 54.5% 6.5% Peterborough (City) 2011 64950 38840 35035 3805 26110 59.8% 9.8% 3165 8.1% 2006 62355 38350 35260 3090 24010 61.5% 8.1% Quinte West 2011 35505 21620 20010 1615 13855 60.9% 7.5% 1660 7.7% 2006 34570 21975 20780 1195 12590 63.6% 5.4% Smiths Falls 2011 7425 4085 3700 385 3345 55.0% 9.4% 335 8.2% 2006 7080 4065 3660 400 3020 57.4% 9.8% Total Separated Cities without Ottawa 2011 321450 195140 178135 17190 126280 60.7% 8.8% 15450 7.9% 2006 310540 191125 177500 13625 119415 61.5% 7.1% Total Eastern Ontario without Ottawa 2011 926480 571540 526900 44645 354935 61.7% 7.8% 64515 11.3% 2006 1086685 563115 528440 34650 332580 51.8% 6.2% Ottawa 2011 718960 498370 463625 34745 220590 69.3% 7.0% 45345 9.1% 2006 658495 456480 429575 26905 202020 69.3% 5.9% Total Eastern Ontario 2011 1645440 1069910 990525 79390 575525 65.0% 7.4% 109860 10.3% 2006 1745180 1019595 958015 61555 534600 58.4% 6.0%

Labour Force by Industry An understanding of the skills of the resident labour force by industry can provide an indication of the areas in which a community or jurisdiction can provide support to investment attraction and retention initiatives based on the industry-related skills of its labour force. Figure 9 illustrates the 2011 labour force composition

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of Eastern Ontario’s counties, separated cities, Ottawa and Ontario by major industry sector as defined by NAICS. Eastern Ontario’s counties had a total labour force of 369,590 in 2011, concentrated predominantly in the following three industries: Retail Trade (12.55%), Healthcare and Social Assistance (11.83%), and Public Administration (10.53%). Two of these sectors (Retail and Health) account for the highest proportions of labour force across the province as well, but at comparatively lower proportions than in Eastern Ontario’s counties. Eastern Ontario’s counties held a greater proportion of labour force in Agriculture, Forestry, Fishing and Hunting (3.92%) when compared to the separated cities (0.59%) and the province (1.52%), indicating that a great deal of primary industry activity still occurs in Eastern Ontario’s rural side. Eastern Ontario’s separated cities (minus Ottawa) had a total labour force of 190,100 in 2011, concentrated predominantly in the following three industries: Healthcare and Social Assistance (13.54%), Retail Trade (13.10%), and Public Administration (10.42%). While the predominant industries are the same between the counties and separated cities, it should be noted that separated cities had a larger proportion of labour force dedicated to these industries. Eastern Ontario’s separated cities also held a significantly greater proportion of labour force in Educational Services (10.29%), when compared to the counties (7.10%) and Ontario (7.48%). This may be correlated back to the several educational institutions that house campuses within Eastern Ontario’s separated cities. Information and Cultural Industries in Eastern Ontario’s counties and separated cities are proportionally lower (1.46% and 1.67% respectively) than both Ottawa (2.82%) and Ontario (2.68%)

FIGURE 9: PROPORTION OF TOTAL LABOUR FORCE BY INDUSTRY (NAICS) (2011)

Source: Statistics Canada. National Household Survey, Community Profiles, 2011

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Table 6 provides a summary of total net growth in labour force by industry from 2006-2011. As is the case with the rest of the province, the largest industry to lose labour force was manufacturing. During the five year span, Eastern Ontario (excluding Ottawa)’s manufacturing sector lost over thirteen thousand labourers. On the flip side, Eastern Ontario’s public administration sector gained over twelve thousand labourers. Other sectors to see significant loses were: Agriculture, Forestry, Fishing and Hunting (-1950), Administrative and Support, Waste Management and Remediation Services (-1890), and Other Services (except Public Administration) (-1860). Industries with significant growth include: the aforementioned Public Administration (12,385), Educational Services (5190), and Health Care and Social Assistance (4870). Interestingly, the Construction industry saw a healthy growth in Eastern Ontario’s counties. This could be attributable to Canada’s Action Plan towards infrastructure projects in rural communities and corridors.

TABLE 6: EASTERN ONTARIO’S NET LABOUR FORCE GROWTH BY INDUSTRY (2006-2011)

Eastern Ontario Counties without Separated Cities

Industry Front. Hali. Hast. K.L. Lana. L & G L & A NorH. Pete. P & R PE Ren. S.D.G Total (NAICS) All Ind. -65 -65 990 -1995 910 -165 135 330 -2290 3740 -770 1115 140 2010 11 35 -25 -450 35 -205 -75 -185 140 -190 35 -35 -295 -470 -1685 21 5 -10 -15 -90 -65 40 -25 -10 -45 10 0 95 70 -40 22 10 -5 150 -15 -55 65 60 -145 105 70 -5 60 -35 260 23 -70 -270 445 -185 505 295 250 330 -60 910 105 240 385 2880 31-33 -60 -140 -310 -1755 -350 -815 -215 -1510 -805 -755 -410 -1355 -1090 -9570 41 -75 -70 -130 225 -55 330 75 -170 -45 -35 -135 -115 140 -60 44-45 80 55 125 20 15 530 290 140 -50 395 90 500 695 2885 48-49 120 35 -85 -30 -75 -305 -65 25 -300 -240 -95 -310 -105 -1430 51 -15 20 -10 -75 -65 -55 -155 -40 -55 -80 5 135 -25 -415 52 -85 50 105 175 135 35 80 -45 15 165 -105 5 140 670 53 25 -85 -10 -180 95 -60 30 -20 -1020 85 15 75 0 -1050 54 220 25 -5 -105 180 95 30 190 245 70 -120 270 115 1210 55 15 -10 0 0 -20 -20 5 -20 -35 -30 0 0 10 -105 56 -190 -60 -5 -540 185 -190 -100 -105 -65 -190 -75 60 -80 -1355 61 105 55 440 530 30 -5 5 725 -15 905 -245 100 -240 2390 62 135 255 580 -180 925 -95 -30 665 -220 645 105 260 435 3480 71 -80 -20 15 -135 85 -120 -65 160 -65 280 -50 -30 -85 -110 72 -360 -25 -280 -155 -215 -485 -170 -495 -825 -55 -85 -150 -390 -3690 81 25 -100 -10 -180 -385 -130 -40 -190 -155 -250 25 -480 10 -1860 91 105 265 455 650 520 815 355 705 285 1835 240 2045 655 8930

14 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Eastern Ontario Separated Cities with Ottawa

Industry Total Bell. Broc. Corn. Gan. King. Pem. Pete. Q.W S.F Total Ott (NAICS) EO All Ind. -690 25 -250 -295 3380 790 -125 -595 60 2300 4310 39380 11 -95 60 70 -20 -100 -30 -70 -55 -25 -265 -1950 -135 21 -30 -15 0 -10 -10 -30 15 -25 0 -105 -145 -65 22 -20 -20 15 -25 30 20 -155 -85 15 -225 35 180 23 205 150 65 -75 285 -10 -80 -145 135 530 3410 3135 31-33 -985 -330 -645 -70 -250 -275 -790 -810 -150 -4305 -13875 -3630 41 70 -80 0 85 85 -40 110 145 -30 345 285 1645 44-45 -175 290 -280 35 -220 85 -135 -600 170 -830 2055 2355 48-49 -145 50 110 -35 -45 35 -105 0 -55 -190 -1620 -400 51 175 -45 -75 -50 -5 -5 -80 -220 0 -305 -720 -1115 52 -155 95 10 10 210 135 190 110 -40 565 1235 2110 53 -155 10 35 -40 -50 -65 -90 -10 20 -345 -1395 345 54 -275 145 -180 -10 90 115 -370 -145 40 -590 620 -1645 55 25 -20 20 0 -10 0 15 0 0 30 -75 -5 56 -240 -230 -50 10 -95 260 0 -220 30 -535 -1890 -2760 61 135 90 -170 55 1870 25 265 415 115 2800 5190 6035 62 95 -180 355 -55 230 215 465 375 -110 1390 4870 6605 71 40 30 55 45 65 10 30 -10 5 270 160 -605 72 -75 -120 110 -25 780 85 -145 -15 70 665 -3025 2575 81 130 -50 50 -90 -390 25 340 100 -115 0 -1860 1040 91 775 220 280 -60 910 235 480 610 5 3455 12385 23720

Source: Statistics Canada. National Household Survey, Community Profiles, 2011 and Census of Population, 2006 NAIC Categories: 11 - Agriculture, Forestry, Fishing and Hunting, 21 - Mining, Quarrying, and Oil and Gas Extraction, 22 – Utilities, 23 – Construction, 31-33 – Manufacturing, 41 - Wholesale Trade. 44-45 - Retail Trade, 48-49 - Transportation and Warehousing, 51 - Information and Cultural Industries, 52 - Finance and Insurance, 53- Real Estate and Rental and Leasing, 54 - Professional, Scientific and Technical Services, 55 - Management of Companies and Enterprises, 56 - Administrative and Support, Waste Management and Remediation Services, 61 - Educational Services, 62 - Health Care and Social Assistance, 71 - Arts, Entertainment and Recreation, 72 - Accommodation and Food Services, 81 - Other Services (except Public Administration), 91 -Public Administration Overall, labour force growth has been showing positive growth in Eastern Ontario over the last five years, particularly in the public administration sector, and industries with social implications for the overall health of quality of life such as educational services and health care services. From an investment attraction perspective, the growth of labour in the educational and health care sectors speaks to the greater opportunities for development of spin-offs from these sectors, and put Eastern Ontario at the forefront of health care and education in Canada.

Labour Force by Occupation In order to get a more complete picture of the labour force capabilities for a particular area, it is necessary to examine the labour force by occupation, that is, by the core activities associated with an individual’s employment. This is in contrast to the previous section, which outlines the labour force by the industry in which the individual is employed. Examining the labour force by occupation provides a more detailed look at the individual specializations which may not be as evident through industry-based statistics and provide more of an indication of the extent of knowledge workers that may be present in a local economy.

15 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Sales and service occupations accounted for the largest proportional shares of labour force across Ontario, Eastern Ontario counties and separated cities, as well as the City of Ottawa in 2011. Across Eastern Ontario, proportional shares of labour force by occupation differed between counties and separated cities. Eastern Ontario’s counties had a larger proportional share of labour force in Trades, Transport and Equipment Operators and Related Occupations (18%) while their counterparts the cities had (12%). Other significant occupations included Business, Finance and Administration (14%), however when compared to the province (17%) it was proportionally lower. Eastern Ontario’s separated cities (excluding Ottawa) had a 16% proportional share of labour force dedicated to occupations in education, law and social, community and government services. Along with occupations in health care, these two occupational classes were well above the province’s proportional share further supporting the growth that was witnessed in the two industries of Educational Services and Health Care and Social Assistance. Figure 10 provides a further breakdown of proportions of labour force by occupations in Eastern Ontario, Ontario and Ottawa. Table 7 provides a summary of total net growth in labour force by occupation from 2006-2011. The largest occupation classes to lose labour force were those in the service, working and farm, forestry and fishing class (Business, finance and administrative occupations, Sales and service occupations, Trades, transport and equipment operators and related occupations, occupations unique to processing, manufacturing and utilities, and occupations unique to primary industry). During the five year span, Eastern Ontario (excluding Ottawa)’s lost over forty thousand occupations related to the three classes. 10 thousand of those came from working in the primary industry. Comparatively, Eastern Ontario saw a growth of over fifty thousand new labourers in knowledge based occupations. Over twenty-five thousand of those were new labours occupying professions in teaching, law, social support, and policy and program officers. Interestingly, there is one class within the knowledge based sector that is struggling in Eastern Ontario. Occupations in art, culture, recreation and sport saw a decrease of 515 labours across the counties and separated cities, additionally the City of Ottawa also saw a decrease of 1775 labourers in this occupational class. Comparatively, the province added over five thousand labourers in the same occupational class. It has been noted that Art and Culture occupations tend to capture opportunities in response to consumer demands for local place-based products and services such as art trails, natural amenities and tourism experiences. Eastern Ontario’s decline in this occupational class might be in response to art and cultural occupations finding better opportunities elsewhere in the province.

16 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

FIGURE 10: PROPORTION OF TOTAL LABOUR FORCE BY OCCUPATIONS (NOCS) (2011)

Source: Statistics Canada. National Household Survey, Community Profiles, 2011

TABLE 7: EASTERN ONTARIO’S NET LABOUR FORCE GROWTH BY OCCUPATION (2006-2011)

Eastern Ontario Counties without Separated Cities

Occup. Front. Hali. Hast. K.L. Lana. L & G L & A NorH. Pete. P & R PE Ren. S.D.G Total (NOCS) All Occup. -65 -65 985 -1995 905 -170 135 325 -2290 3750 -770 1110 140 1995 A 410 160 910 1035 670 695 435 1265 375 2005 385 1185 1435 10965 B -15 -145 35 -355 240 -200 -155 -290 -130 665 -335 -375 -190 -1250 C 215 80 15 75 85 430 40 -15 35 510 -30 135 215 1790 D 60 120 215 185 455 215 -15 100 195 110 -10 340 125 2095 E 720 350 1045 1765 1065 1240 1110 2085 825 2235 170 4765 1300 18675 F -120 -40 230 -60 5 -125 -30 65 -130 -30 -50 15 -140 -410 G -830 -355 -870 -2070 -555 -855 -655 -875 -1455 -535 -310 -2575 -20 -11960 H -15 -155 505 -600 -40 -585 25 -555 -770 195 145 -750 -220 -2820 I -435 -85 -770 -775 -690 -515 -490 -660 -870 -1055 -555 -1010 -1660 -9570 J -60 0 -330 -1175 -340 -460 -125 -805 -375 -340 -190 -610 -695 -5505

17 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Eastern Ontario Separated Cities with Ottawa

Occup. Total Bell. Broc. Corn. Gan. King. Pem. Pete. Q.W S.F Total Ott (NOCS) EO All Occup. -685 30 -250 -295 3385 795 -125 -590 60 2325 4320 39380 A 190 -30 -70 55 835 55 55 485 90 1665 12630 7850 B -1045 50 -1385 -135 -1275 -115 -1045 -800 125 -5625 -6875 1560 C -415 75 -195 -30 -50 60 290 -45 -20 -330 1460 2725 D -30 -35 310 -15 445 115 385 390 -25 1540 3635 4715 E 1210 225 660 140 4570 670 1555 2110 -40 11100 29775 22795 F 5 55 -155 -20 45 -145 75 10 15 -115 -525 -1775 G -140 135 520 -155 -880 445 -275 -1265 90 -1525 -13485 2990 H 240 -125 100 -230 150 -155 -500 -500 5 -1015 -3835 725 I -130 -15 55 75 -170 5 -105 -345 -55 -685 -10255 -1405 J -575 -300 -95 25 -290 -140 -550 -630 -120 -2675 -8180 -800

Source: Statistics Canada. National Household Survey, Community Profiles, 2011 and Census of Population, 2006 NOC Categories: A - Management occupations, B - Business, finance and administrative occupations, C - Natural and applied sciences and related occupations, D - Health occupations, E - Occupations in social science, education, government service and religion, F - Occupations in art, culture, recreation and sport, G - Sales and service occupations, H - Trades, transport and equipment operators and related occupations, I - Occupations unique to primary industry, J - Occupations unique to processing, manufacturing and utilities.

Employment by Industry In contrast to the labour force, employment in a given community accounts for the individuals who work in that community, regardless of whether or not they live in that community. Due to data limitations at this time, this section will only reflect employment data at the county level. In 2011, the industries that accounted for the largest proportion of total employment in Eastern Ontario included: Health Care and Social Assistance (12.7%), Retail Trade (12.7%), Public Administration (10.8%), Manufacturing (9.1%), Educational Services (8.3%) and Construction (7.7%). When compared to Ontario, Eastern Ontario has a greater proportion of total employment in Agriculture (2.8% compared to 1.5%), Construction, Retail Trade, Educational Services, Health Care and Social Assistance, and Public Administration. In 2011, Eastern Ontario had a significantly lower proportional of labourers employed in the FIRE industries (Finance, Information, Real Estate) and Professional, Scientific and Technical Services when compared to Ontario. Table 8 provides a breakdown of employment by industry at a county level. Both the Retail Trade and Health Care sectors represent the largest proportions of employment across all counties. Counties with educational institutions and large urban centres (Frontenac and Peterborough) had a greater proportion of Educational Services, while rural dominant counties such as Prince Edward and Northumberland had a much higher proportion of employment within the Agricultural industry.

18 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

TABLE 8: EASTERN ONTARIO’S EMPLOYMENT BY INDUSTRY (2011)

Eastern Ontario Counties (Top 3 Industries Shaded)

Industry Front. Hali. Hast. K.L. Lana. L & G L & A NorH. Pete. P & R PE Ren. S.D.G EO (NAICS) 11 0.9% 1.4% 1.9% 4.4% 2.1% 3.0% 2.8% 4.1% 1.9% 3.9% 7.3% 3.0% 4.3% 2.8% 21 0.1% 0.0% 0.2% 0.3% 0.3% 0.2% 0.1% 0.4% 0.6% 0.2% 0.1% 0.4% 0.2% 0.3% 22 0.6% 1.5% 0.9% 1.4% 0.9% 0.5% 1.4% 2.4% 1.4% 0.4% 1.1% 1.6% 0.7% 1.1% 23 5.9% 14.0% 7.1% 9.0% 9.7% 7.6% 9.4% 8.0% 6.9% 10.2% 7.5% 6.7% 7.5% 7.7% 31-33 4.5% 3.9% 11.1% 8.5% 9.6% 11.0% 9.6% 13.4% 8.7% 7.1% 8.7% 8.0% 11.7% 9.1% 41 2.3% 1.7% 3.1% 4.6% 3.5% 4.1% 2.6% 2.6% 3.9% 3.2% 2.1% 2.1% 4.1% 3.2% 44-45 10.9% 15.6% 14.5% 13.9% 13.4% 13.5% 13.7% 11.8% 13.0% 11.2% 12.2% 12.4% 11.9% 12.7% 48-49 3.2% 4.9% 5.2% 4.2% 3.5% 4.7% 4.3% 3.8% 3.6% 4.5% 3.9% 2.3% 7.1% 4.2% 51 1.6% 2.3% 1.5% 1.0% 1.8% 1.3% 1.1% 1.5% 1.8% 1.5% 1.8% 1.7% 1.4% 1.6% 52 3.0% 2.5% 2.1% 3.3% 2.2% 2.2% 2.6% 2.2% 3.2% 2.9% 1.4% 1.9% 2.8% 2.6% 53 1.9% 3.3% 1.5% 1.2% 1.7% 1.4% 1.7% 1.3% 1.7% 1.5% 2.7% 1.2% 1.5% 1.6% 54 4.8% 4.7% 3.5% 4.3% 6.7% 5.0% 3.7% 5.1% 4.8% 4.5% 4.7% 7.5% 3.8% 4.9% 55 0.1% 0.0% 0.1% 0.0% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 56 4.2% 3.8% 5.0% 3.3% 4.4% 4.7% 3.7% 4.6% 4.8% 3.1% 4.7% 3.9% 5.5% 4.4% 61 15.1% 6.3% 7.3% 8.1% 5.9% 6.3% 7.0% 8.2% 9.0% 8.6% 5.6% 6.2% 6.1% 8.3% 62 14.6% 12.7% 11.7% 11.7% 13.9% 12.4% 13.4% 11.9% 13.7% 11.3% 14.7% 12.2% 12.3% 12.7% 71 1.6% 2.2% 1.4% 2.4% 2.1% 2.6% 1.3% 2.3% 2.7% 1.8% 2.0% 1.2% 1.5% 1.9% 72 7.8% 8.2% 6.0% 5.4% 5.1% 5.8% 5.2% 5.2% 6.5% 3.5% 7.2% 5.3% 5.1% 5.8% 81 3.7% 3.8% 4.6% 5.2% 3.6% 4.3% 4.7% 4.8% 5.1% 4.0% 4.6% 3.3% 4.6% 4.3% 91 13.2% 6.9% 11.4% 8.0% 9.7% 9.1% 11.8% 6.6% 6.5% 16.5% 7.6% 18.7% 7.5% 10.8%

Source: Statistics Canada. National Household Survey, Catalogue Number 99-012-X2011052, 2011. NAIC Categories: 11 - Agriculture, Forestry, Fishing and Hunting, 21 - Mining, Quarrying, and Oil and Gas Extraction, 22 – Utilities, 23 – Construction, 31-33 – Manufacturing, 41 - Wholesale Trade. 44-45 - Retail Trade, 48-49 - Transportation and Warehousing, 51 - Information and Cultural Industries, 52 - Finance and Insurance, 53- Real Estate and Rental and Leasing, 54 - Professional, Scientific and Technical Services, 55 - Management of Companies and Enterprises, 56 - Administrative and Support, Waste Management and Remediation Services, 61 - Educational Services, 62 - Health Care and Social Assistance, 71 - Arts, Entertainment and Recreation, 72 - Accommodation and Food Services, 81 - Other Services (except Public Administration), 91 -Public Administration

Place of Work Figure 11 illustrates the proportion of workers within Eastern Ontario’s counties and separated cities, in 2011, by their place of work. The place of work of the counties’ labour force is generally reflective of their separated cities, while there are some notable differences. The county has a much larger proportion of its labour force that works at home when compared to the separated cities. This may be a result of the counties’ high rates of self-employed farmers along with home based businesses involved in professional and scientific services. Furthermore, the county has a larger proportion of its labour force that has no fixed place of work. This may be attributed to the counties’ share of construction workers and trades contractors.

19 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

FIGURE 11: PLACE OF WORK STATUS IN EASTERN ONTARIO’S COUNTIES AND SEPARATED CITIES (2011)

Source: Statistics Canada. National Household Survey, Catalogue Number 99-012-X2011049, 2011

Industry Profiles

Location Quotients

In order to determine the level and degree of industrial specialization that has developed in Eastern Ontario, and thus the diversity of the regional economy, location quotients (LQs) have been calculated to measure the relative concentration of industry/business activity by major industry sector. Location Quotients are a commonly used tool in regional economic analysis. They assess the concentration of economic activities within a smaller area relative to the overarching region in which it resides. Understanding that the Eastern Ontario is within a highly competitive provincial economy, LQs have been calculated to compare the Eastern Ontario’s labour force concentrations relative to the Province of Ontario, to provide an understanding of the areas in which Eastern Ontario imposes a competitive advantage over the rest of the province. Similarly, LQs have also been calculated to compare the counties and separated cities relative to Eastern Ontario to provide an understanding of the areas in which specific communities specialize in. Given the Eastern Ontario is one of Canada’s largest metropolitan areas, LQs have also been calculated relative to Canada as well to provide an indication of areas where the Eastern Ontario can compete on a national scale. A location quotient greater than 1.0 for a given sector indicates a local concentration of economic activity as compared to the overarching region (either Ontario or any other region) and may be an indication of competitive advantage with respect to the attraction of that industry sector. Location Quotients equal to 1.0 for a given sector suggest that the study area has the same concentration of economic activity as the overarching comparator. Finally, a location quotient of less than 1.0 suggests that the region does not have a strong competitive advantage in that sector. In theory, an industrial or business concentration that is greater than the overarching average may also represent the export base of the participating region (both in terms of products or services). Businesses that make up this export base may have chosen to locate in the community due to certain local or regional

20 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

competitive advantages. These competitive advantages can be used to attract additional investment, in the same or complimentary industries. As expected, Eastern Ontario’s counties (excluding separated cities) have a higher concentration of resident labour force in the Agricultural, Forestry and Forestry sector in 2011, reflective of the counties’ rural character. Public Administration also had a very high concentration of resident labour force, reflectively of the significant growth in the sector since 2006. Inevitably, they also experience a very low concentration of finance and insurance labour force typically found predominantly in urban financial centres (i.e. Eastern Ontario’s separated cities). The counties exhibited higher than average concentrations of labour force in a number of other sectors including: Utilities and Construction. This may be a result of Eastern Ontario’s recent infrastructure improvements including the Eastern Ontario Regional Network initiative. Eastern Ontario’s separated cities have a higher concentration of resident labour force in the Public Administration sector in 2011, reflective of the cities being the seat of the provincial government, and home to a number of federal and provincial agencies and departments. Inevitably, they also experience a very low concentration of primary industry sectors, utilities and construction as they already have a fundamental infrastructure network in place. The cities exhibited higher than average concentrations of labour force in a number of other sectors including: Accommodation and Food Services, Health Care and Social Assistance, and Educational Services, reflective of their urban character and role as economic centers within their respective counties. This is further confirmed when comparing the counties and cities against each other. The cities have a larger concentration of labour force in educational services, management, accommodations and administrative support, while the counties have a larger concentration of labour force in agricultural, forestry and fishing, and utilities positions. Table 9 provides a breakdown of Eastern Ontario’s labour force by industry.

TABLE 9: EASTERN ONTARIO’S LABOUR FORCE LOCATION QUOTIENT (2006 AND 2011)

Eastern Ontario Counties without Separated Cities Eastern Ontario Separated Cities

LQ Against Ontario LQ Against EO LQ Against Ontario LQ Against EO Industry % % (NAICS) Change Change LQ LQ LQ LQ 2006- 2006 2011 2006 2011 2006- 2006 2011 2006 2011 Level Level Level Level 2011 LQ LQ LQ LQ 2011 LQ LQ LQ LQ (2011) (2011) (2011) (2011) 11 -10.4% 2.91 2.59 V High 1.39 1.41 High -19.1% 0.49 0.39 V Low 0.23 0.21 V Low 21 -2.8% 0.87 0.83 Mid 1.27 1.35 High -38.2% 0.33 0.20 V Low 0.48 0.32 V Low 22 5.9% 1.36 1.47 High 1.16 1.22 High -16.8% 0.81 0.69 Low 0.69 0.57 Low 23 8.9% 1.46 1.53 High 1.16 1.17 High 5.4% 0.86 0.87 Mid 0.69 0.67 Low 31-33 -21.5% 1.16 0.91 Mid 1.04 1.04 Mid -21.2% 1.03 0.80 Mid 0.92 0.92 Mid 41 -0.5% 0.72 0.72 Mid 1.06 1.04 Mid 6.6% 0.60 0.64 Low 0.88 0.92 Mid 44-45 6.6% 1.06 1.12 Mid 0.95 0.99 Mid -3.2% 1.23 1.17 Mid 1.10 1.03 Mid 48-49 -8.4% 1.00 0.92 Mid 1.04 1.02 Mid -2.5% 0.88 0.86 Mid 0.92 0.96 Mid 51 -7.1% 0.59 0.55 Low 0.94 0.95 Mid -8.8% 0.69 0.63 Low 1.11 1.09 Mid 52 8.0% 0.40 0.45 V Low 0.98 0.97 Mid 12.4% 0.43 0.49 V Low 1.04 1.07 Mid

21 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Eastern Ontario Counties without Separated Cities Eastern Ontario Separated Cities

LQ Against Ontario LQ Against EO LQ Against Ontario LQ Against EO Industry % % (NAICS) Change Change LQ LQ LQ LQ 2006- 2006 2011 2006 2011 2006- 2006 2011 2006 2011 Level Level Level Level 2011 LQ LQ LQ LQ 2011 LQ LQ LQ LQ (2011) (2011) (2011) (2011) 53 -18.8% 0.75 0.61 Low 0.93 0.89 Mid -9.8% 0.92 0.83 Mid 1.14 1.21 Mid 54 6.8% 0.63 0.67 Low 1.03 1.08 Mid -7.1% 0.57 0.53 Low 0.94 0.85 Mid 55 -55.3% 0.52 0.24 V Low 0.97 0.59 Low 28.6% 0.57 0.73 Low 1.05 1.81 V High 56 -8.5% 0.98 0.85 Mid 0.88 0.86 Mid -4.6% 1.39 1.25 High 1.24 1.27 High 61 10.0% 0.86 0.95 Mid 0.89 0.87 Mid 16.7% 1.19 1.38 High 1.22 1.26 High 62 8.6% 1.03 1.14 Mid 0.94 0.95 Mid 5.7% 1.22 1.31 High 1.12 1.09 Mid 71 -1.4% 1.04 0.97 Mid 1.04 1.01 Mid 7.6% 0.93 0.93 Mid 0.92 0.97 Mid 72 -16.7% 1.00 0.79 Mid 0.89 0.81 Mid 4.4% 1.35 1.33 High 1.21 1.36 High 81 -10.3% 1.11 0.99 Mid 1.04 1.00 Mid 0.0% 0.99 0.98 Mid 0.93 0.99 Mid 91 29.8% 1.16 1.53 V High 0.98 1.00 Mid 21.1% 1.24 1.52 V High 1.04 0.99 Mid

Business Patterns Assessment

Statistics Canada’s Canadian Business Patterns Data provides a record of business establishments by industry and size. This data is collected from the Canada Revenue Agency (CRA). The business data collected for Eastern Ontario includes all businesses that meet at least one of the three criteria: Have an employee workforce for which they submit payroll remittances to the CRA; or Have a minimum of $30,000 in annual sales revenue; or Are incorporated under a federal or provincial act and have filed a federal corporate income tax form within the past three years. The Canadian Business Patterns Data records business counts by “Total”, “Indeterminate” and “Subtotal” categories. The establishments in the “Indeterminate” category include the self-employed (i.e. those who do not maintain an employee payroll, but may have a workforce consisting of contracted workers, family members or business owners)1. Tables 10 and 11 provide a snapshot of Eastern Ontario’s Business Patterns Assessment.

1 It should be noted that the Canadian Business Patterns Data uses the CRA as a primary resource in establishment counts; therefore, businesses without a business number or indicated annual sales less than $30,000 are not included. The population of these small, unincorporated businesses is thought to be in the range of 600,000 in all of Canada.

22 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

TABLE 10: EASTERN ONTARIO’S NUMBER OF BUSINESS ESTABLISHMENTS BY INDUSTRY (2008, 2012)

2012 2008 % Change (2008-2012) Industry (NAICS) Indeterminat Indeterminat Indeterminat Total Subtotal Total Subtotal Total Subtotal e e e 11 5336 3800 1536 4797 3517 1280 11% 8% 20% 21 120 31 89 132 43 89 -9% -28% 0% 22 93 40 53 88 27 61 6% 48% -13% 23 9535 4742 4793 9081 4587 4494 5% 3% 7% 31-33 2130 745 1385 2357 882 1475 -10% -16% -6% 41 2313 973 1340 2567 1113 1454 -10% -13% -8% 44-45 7698 2503 5195 7931 2,697 5234 -3% -7% -1% 48-49 2790 1656 1134 3172 2000 1172 -12% -17% -3% 51 628 295 333 619 312 307 1% -5% 8% 52 3074 1844 1230 2959 1792 1167 4% 3% 5% 53 5910 4799 1111 4902 3864 1038 21% 24% 7% 54 6523 3976 2547 6408 3917 2491 2% 2% 2% 55 1585 1340 245 1754 1520 234 -10% -12% 5% 56 2659 1234 1425 2640 1276 1364 1% -3% 4% 61 631 347 284 624 317 307 1% 9% -7% 62 3905 805 3100 3365 492 2873 16% 64% 8% 71 1130 581 549 1152 604 548 -2% -4% 0% 72 3178 835 2343 3172 879 2293 0% -5% 2% 81 5591 2188 3403 5465 2084 3381 2% 5% 1% 91 165 5 160 160 7 153 3% -29% 5% Total 64994 32739 32255 63345 31930 31415 3% 3% 3%

Source: Canadian Business Patterns. December 2012, December 2008 NAIC Categories: 11 - Agriculture, Forestry, Fishing and Hunting, 21 - Mining, Quarrying, and Oil and Gas Extraction, 22 – Utilities, 23 – Construction, 31-33 – Manufacturing, 41 - Wholesale Trade. 44-45 - Retail Trade, 48-49 - Transportation and Warehousing, 51 - Information and Cultural Industries, 52 - Finance and Insurance, 53- Real Estate and Rental and Leasing, 54 - Professional, Scientific and Technical Services, 55 - Management of Companies and Enterprises, 56 - Administrative and Support, Waste Management and Remediation Services, 61 - Educational Services, 62 - Health Care and Social Assistance, 71 - Arts, Entertainment and Recreation, 72 - Accommodation and Food Services, 81 - Other Services (except Public Administration), 91 -Public Administration

TABLE 11: EASTERN ONTARIO’S NUMBER OF BUSINESS ESTABLISHMENTS BY INDUSTRY AND EMPLOYMENT SIZE (2012)

Industry 1-4 5-9 10-19 20-49 50-99 100-199 200-499 500+ (NAICS) Employees Employees Employees Employees Employees Employees Employees Employees 11 1142 235 109 40 8 1 1 0 21 23 16 36 7 6 1 0 0 22 17 8 16 6 3 3 0 0 23 2961 1081 487 210 39 12 3 0 31-33 477 290 233 185 102 49 41 8

23 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Industry 1-4 5-9 10-19 20-49 50-99 100-199 200-499 500+ (NAICS) Employees Employees Employees Employees Employees Employees Employees Employees 41 613 330 236 119 31 9 1 1 44-45 2017 1509 923 467 170 86 22 1 48-49 617 213 120 103 59 14 8 0 51 124 70 89 27 22 1 0 0 52 595 196 130 282 16 6 5 0 53 772 197 87 40 11 2 1 1 54 1870 366 223 65 15 6 2 0 55 163 37 18 18 4 3 1 1 56 800 330 158 84 23 20 6 4 61 128 61 43 19 4 9 4 16 62 1615 653 439 205 77 70 31 10 71 241 130 74 82 16 5 1 0 72 635 583 543 419 135 25 3 0 81 2299 710 285 76 23 5 4 1 91 7 7 29 52 26 15 14 10 Total 17116 7022 4278 2506 790 342 148 53

Eastern Ontario’s Sector Profiles

The assessment that follows provides a detailed perspective of the local economy at a subsector level along with an understanding of industry trends and outlook. Based on this work, select industries are considered through the lens of input – output chain of activities and the broader support system and value chain in place to develop local industries. These include: . Agricultural and Agri-Business . Education . Energy . Forestry (Natural Resources Development) . Healthcare . ICT . Logistics and Transportation . Manufacturing

24 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

. Tourism, Hospitality and Culture In developing an economic development strategy for Eastern Ontario it will be essential to focus on those sectors and subsectors that present the highest potential for growth in both the short and longer term. The following discussion further aligns the findings of the demographic and labour force characteristics with location quotients, business patterns and industry trends to establish the primary sectors of interest for Eastern Ontario.

Agriculture and Agri-Business

Agriculture and agribusiness including food processing have been an important component of Eastern Ontario’s economy since the region was settled. Of the 23 municipalities in Eastern Ontario that have identified key sector targets, 11 have identified agriculture and agribusiness as a key economic driver in their community. Work has been done to develop value-added opportunities in agriculture across Eastern Ontario including agritourism, food-processing and bioproducts. In a 2004 food processing sector study commissioned by Ontario East Economic Development Commission identified that food processing would continue to be a relatively stable employer, although there has been challenges to the food processing industry due to the 2008 recession, the Canadian dollar’s strength and increasing input costs, it still remains an important subsector of the agricultural sector2. In addition to the typical agribusiness and food processing businesses, Eastern Ontario’s rural communities have also been developing innovative ways to capitalize on this traditional sector. Innovations in this sector are quite divergent with one capitalizing on the ‘art of the rural’ through small value-added operations, terroir branding and agritourism and the other focusing on the latest scientific advancements to utilize agricultural products as alternatives for petrochemicals.

‘Art of Rural’ A number of communities across Eastern Ontario are taking advantage of the rural creative economy and local food as a method of economic development, population attraction and tourism. The resurgence of artisan cheese in Eastern Ontario along with the growth of local food stands, wineries, farm tours and gourmet chutney/jam/jelly makers. Value-added agricultural experiences and products have been utilized to increase the income of small family farms across Eastern Ontario and have been packaged as experiences for tourists and residents alike. Building on Eastern Ontario’s strong agricultural heritage these initiatives have been relatively successful in growing small business in agriculture.

Bioproducts Initiatives to develop the local bio-processing have also been highlighted as a potential growth industry in a number of communities across Eastern Ontario. Most notably, the Stormont, Dundas and Glengarry Community Futures Development Corporation commissioned a situational analysis and preliminary implementation plan discussing the feasibility of a bio-processing industrial alliance in the County. The alliance would create a network of industries (both large and small businesses) as well as public sector research facilities and educational institutions to develop

2 WCM Consulting Inc. (2004). Eastern Ontario Food-Processing Sector Competitiveness Study. Prepared for Ontario East Economic Development Commission.

25 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

When taking a look at the number of businesses in the agriculture sector it can be seen that outside of food processing (food & beverage manufacturing) and wholesale distributors, agricultural activity grew substantially. Farm businesses grew 21% since 2008, while support businesses grew 31.1%. This is reflective of Ontario’s recent growth in the sector. When comparing Eastern Ontario’s agricultural sector to the Province’s total agricultural sector we see that despite the growth in farms and their support businesses, Eastern Ontario’s agricultural is on par with other areas of Ontario. As mentioned earlier, Eastern Ontario’s food and beverage manufacturing were not poised to significantly grow and survive the recession. As a result, Eastern Ontario is considered to not have a strong competitive advantage in that sector at this time. However, with efforts placed forward by communities (such as the Stormont, Dundas and Glengarry CFDC’s study on bio-processing) and the region’s healthy agricultural base to draw from, Eastern Ontario can improve their food manufacturing prospects.

TABLE 12: EASTERN ONTARIO’S AGRICULTURAL SECTOR

Total Total % Total ON Industry Bus. Bus. LQ Classification Change Bus. 2012 2012 2008 Farms 5150 4256 21.0% 34329 1.10 Mid Support Activities for Farms 308 235 31.1% 1943 1.16 High Food & Beverage Manufacturing 228 253 -9.9% 2803 0.59 Low Farm Product Wholesaler Distributors 71 68 4.4% 682 0.76 Mid Food, Beverage and Tobacco Wholesaler- 211 271 -22.1% 3885 0.40 Very Low Distributors Total 5968 5083 17.4% 43642

Source: Canadian Business Patterns. December 2012, December 2008. It is also important to note which areas of Eastern Ontario are better positioned to improve the region’s competitive advantage as an agricultural economy. Using the location quotient formula stated earlier, it can be found that three counties have shown considerable growth and concentration of businesses in this sector. Stormont, Dundas & Glengarry, Prince Edward, and Prescott and Russell counties each demonstrated high concentrations of agricultural activity. Together these counties added over 250 businesses to the region. This can be correlated with the recent efforts put on by these counties, such as Prince Edward County’s improved wine region and taste trail, Stormont, Dundas, & Glengarry’s existing cluster of food processing companies such as Kraft Foods, and Prescott and Russell’s Agricultural Advisory Committee which works in close consultation with several key players in order to support the agricultural and agri-food sectors.

TABLE 13: TOTAL AGRICULTURAL SECTOR BUSINESSES BY EASTERN ONTARIO COUNTIES

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Frontenac 251 4.2% 0.33 V. Low 217 34 15.7%

Haliburton 19 0.3% 0.22 V. Low 16 3 18.8%

26 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Hastings 496 8.3% 0.73 Low 432 64 14.8%

Kawartha Lakes 565 9.5% 1.27 High 486 79 16.3% Lanark 300 5.0% 0.80 Mid 238 62 26.1%

Leeds and Grenville 513 8.6% 0.95 Mid 406 107 26.4%

Lennox and Addington 204 3.4% 1.17 High 175 29 16.6% Northumberland 523 8.8% 1.08 Mid 415 108 26.0%

Peterborough 427 7.2% 0.60 Low 403 24 6.0%

Prescott and Russell 760 12.7% 1.53 V. High 685 75 10.9%

Prince Edward 272 4.6% 1.70 V. High 190 82 43.2%

Renfrew 487 8.2% 1.04 Mid 396 91 23.0%

Stormont, Dundas & Glen. 1151 19.3% 1.96 V. High 1024 127 12.4%

Total Eastern Ontario 5968 5083 885 17.4%

Source: Canadian Business Patterns. December 2012, December 2008.

Education

Eastern Ontario has 9 highly regarded educational institutions across the region these include: the University of Ottawa, Carleton University, Algonquin College, Cite Collegiate, St. Lawrence College, Queens University, Fleming College, Trent University, Loyalist College, and the University of Guelph Kemptville Campus. Each of these educational institutions has mandates to engage with the local community and have developed partnerships with industry across the region to develop research and training programming. Specialized training is developed in conjunction with industry partners at all of the colleges in the region and the Universities are actively involved in industry-specific research. For example, Queens University students and staff have been involved in the development of bio-processing in the forestry sector and the Monieson Centre at Queens University has focused on research on the rural economies. The University of Ottawa is heavily involved in the life sciences cluster in Ottawa and Carleton University has been heavily involved in Ottawa’s IT sector cluster. Many of the college’s in Eastern Ontario also have satellite campuses across the region. For example, Algonquin College (based in Ottawa) has campuses in Perth and Pembroke and St. Lawrence College (based in Kingston) has campuses in Cornwall and Brockville. The post-secondary institutions in the region are some of Eastern Ontario’s most valuable assets. These organizations need to be continually engaged by local municipalities to ensure that economic development spinoffs continue to occur. When taking a look at the number of businesses in the education sector it can be seen that the sector has decreased significantly in Eastern Ontario. From 2008 to 2012 the sector lost over 12.1% of their businesses. Of those loses included 7 private post-secondary institutions and nearly 20% of education support services (i.e. educational counselling).

27 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

When comparing Eastern Ontario’s education sector to the Province’s total educational sector we see that despite the decrease, Eastern Ontario’s educational sector is on par with other areas of Ontario. As mentioned earlier, Eastern Ontario’s educational sector is one of their largest assets (particularly the post-secondary institutions). As a result, Eastern Ontario is considered to still have a competitive advantage in that sector at this time. However, the region will need to continue with their current efforts towards securing a strong educational sector.

TABLE 14: EASTERN ONTARIO’S EDUCATION SECTOR

Total Total % Total ON Industry Bus. Bus. LQ Classification Change Bus. 2012 2012 2008 Educational Support Services 59 73 -19.2% 936 1.00 Mid Colleges and Universities 28 35 -20.0% 389 1.14 Mid Business and Trade Schools 139 159 -12.6% 2001 1.10 Mid All Other Schools of Instruction 291 324 -10.2% 4866 0.95 Mid Elementary and Secondary Schools 51 55 -7.3% 839 0.97 Mid Total 568 646 -12.1% 9031

Source: Canadian Business Patterns. December 2012, December 2008. The area of Eastern Ontario excluding Ottawa that is best positioned to improve the region’s competitive advantage as an educational economy is Frontenac (more specifically, Kingston). Frontenac (Kingston) demonstrated the highest concentration of educational activity. As stated earlier this is due to their large concentration of post-secondary institutions. In total 78 businesses based in the educational sector closed from 2008 to 2012. Hastings and Frontenac both saw a combined loss of 34 businesses (43% of the total loss in educational businesses in Eastern Ontario).

TABLE 15: TOTAL EDUCATION SECTOR BUSINESSES BY EASTERN ONTARIO COUNTIES

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Frontenac 110 19.4% 1.53 V. High 126 -16 -12.7%

Haliburton 7 1.2% 0.84 Mid 7 0 0.0%

Hastings 68 12.0% 1.05 Mid 86 -18 -20.9% Kawartha Lakes 32 5.6% 0.75 Mid 38 -6 -15.8%

Lanark 43 7.6% 1.20 High 46 -3 -6.5%

Leeds and Grenville 43 7.6% 0.84 Mid 55 -12 -21.8% Lennox and Addington 18 3.2% 1.08 Mid 17 1 5.9%

Northumberland 43 7.6% 0.93 Mid 45 -2 -4.4%

Peterborough 78 13.7% 1.14 Mid 82 -4 -4.9%

Prescott and Russell 47 8.3% 1.00 Mid 49 -2 -4.1%

28 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Prince Edward 13 2.3% 0.85 Mid 12 1 8.3%

Renfrew 29 5.1% 0.65 Low 36 -7 -19.4% Stormont, Dundas and 37 6.5% 0.66 Low 47 -10 -21.3% Glengarry Total Eastern Ontario 568 646 -78 -12.1%

Source: Canadian Business Patterns. December 2012, December 2008.

Energy

The energy generation and distribution sector consists of coal mining, electric power generation, transmission and distribution, natural gas distribution, oil and gas, petroleum manufacturing and pipeline transportation. In 2012, there were over 90 of these businesses in Eastern Ontario. Much of the sector is composed of a concentration of electric power companies (80 businesses). There has been very strong growth in this industry from 2008 to 2012, which is likely a result of economic opportunities created as part of the Green Energy Act, 2009 and specifically the Feed-in Tariff (FIT) program. Although the province is reviewing the FIT program, the provincial government remains committed to energy generation that focuses on efficient, localized generation from smaller, cleaner sources of electricity.3 This sector of the economy is poised for further growth and prosperity. With Ontario`s population and household formation expected to growth coupled with the Province of Ontario`s push to take coal-burning energy generation off the power grid, there is expected to be an increase in demand for more energy generation sources in Ontario. Table 16 supports that statement as the electric power generation industry grew 37.9% from 2008-2012.

TABLE 16: EASTERN ONTARIO’S ENERGY SECTOR

Total Total % Total ON Industry Bus. Bus. LQ Classification Change Bus. 2012 2012 2008 Coal Mining 2 0 19 1.12 Mid

Electric Power Generation, Transmission and 80 58 37.9% 631 1.35 High Distribution Natural Gas Distribution 7 7 0.0% 142 0.52 Low Oil and Gas 4 9 -55.6% 187 0.23 Very Low Petroleum and Coal Products Manufacturing 3 5 -40.0% 43 0.74 Low Pipeline Transportation 4 3 33.3% 41 1.04 Mid Total 100 82 22.0% 1063

Source: Canadian Business Patterns. December 2012, December 2008.

3 Ontario`s Long-Term Energy Plan, Ministry of Energy, http://www.energy.gov.on.ca/en/ltep/overview/, last modified April 13th, 2012, viewed on May 6th, 2013.

29 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Dividends from the Eastern Ontario Development Fund has begun to surface as places such as Hastings, Leeds and Grenville and Renfrew counties each have seen large growth in the energy sector (Table 17). Clean energy investment created 42 new jobs in Ottawa Valley (Renfrew County) in 20114. Partnering with local business was a key component of the 2011 Ontario Budget - Turning the Corner, to create and support 10,000 new and existing jobs and Ontario’s Long-Term Energy Plan to help keep costs down for families today, while building a clean, modern and reliable electricity system for tomorrow5. Leeds and Grenville supported the Burritts Rapids Renewable Energy Association in 2012 to assist in determining the feasibility of a hydro-generation project in Burritts Rapids6. Hastings County’s Economic Development Action Plan indicated that they were interested in capitalizing on market niche opportunities around sustainable energy7. In 2012, 5 businesses were dedicated to solar, geothermal, biomass, and wind alternatives to energy generation.

TABLE 17: TOTAL ENERGY SECTOR BUSINESSES BY EASTERN ONTARIO COUNTIES

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Frontenac 7 7.0% 0.55 Low 7 0 0.0%

Haliburton 0 0.0% 0.00 V. Low 1 -1 -100.0%

Hastings 13 13.0% 1.14 Mid 10 3 30.0%

Kawartha Lakes 5 5.0% 0.67 Low 2 3 150.0%

Lanark 6 6.0% 0.95 Mid 4 2 50.0%

Leeds and Grenville 13 13.0% 1.44 High 12 1 8.3%

Lennox and Addington 5 5.0% 1.71 V. High 2 3 150.0%

Northumberland 10 10.0% 1.23 Mid 10 0 0.0%

Peterborough 11 11.0% 0.92 Mid 10 1 10.0%

Prescott and Russell 9 9.0% 1.08 Mid 8 1 12.5%

Prince Edward 2 2.0% 0.74 Low 0 2 200.0%

Renfrew 12 12.0% 1.54 V. High 9 3 33.3% Stormont, Dundas and Glen. 7 7.0% 0.71 Low 7 0 0.0%

Total Eastern Ontario 100 82 18 22.0%

Source: Canadian Business Patterns. December 2012, December 2008.

4 Ministry of Economic Development, Trade and Employment, Province of Ontario: http://www.ontariocanada.com/ontcan/1medt/en/news_2011_05_27_en.jsp 5 Ibid 6 Eastern Ontario Network http://www.easternontarionetwork.com/index.php/news/local-news/northgrenville/8457-burritts-rapids-renewable-energy-association- receives-support-from-the-eastern-ontario-development-program 7 Hastings County Economic Development Action Plan 2009-2012

30 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Forestry (Natural Resource Development)

In South and Eastern Ontario the forestry industry is 2% of the GDP and sustains 42,000 jobs. Lumber prices have tripled over the past four years and recruitment campaigns across Canada are searching for skilled workers in the forestry sector. Eastern Ontario is in the center of North America’s most significant hard wood forest region. The Eastern Ontario Model Forest network has been active in the region for over 20 years and has developed partnerships with over 600 private businesses and public organizations. A number of counties across Eastern Ontario have a significant resource of forestry products including Prescott and Russell, Stormont, Dundas & Glengarry, Leeds and Grenville, Lanark County and Renfrew County. In the Ottawa Valley there is over 1 million metric tonnes of pulp wood available, in Renfrew County along, the natural forestry stock could represent $294,000,000 in business.

Bioproducts Like agriculture, there has been significant focus on developing bioproducts products within the forestry sector. Processing wood products’ into biochemical can increase the value of products by six fold. Similar to the work being conducted in Stormont, Dundas & Glengarry related to bioproducts and agriculture, the Ontario East Wood Centre (OEWC) and Eco-Industrial Park located in Spencerville in Leeds and Grenville is currently working to grow and attract eco-industrial activity in Eastern Ontario. Currently business plans are being piloted and developed into full-fledged commercial operations. OEWC works with existing prospects and encourages entrepreneurs and innovators to locate in the business park. The mission of OEWC and the Eco-Industrial Park include: . The development of forest and biomass based and innovation-inspired clusters of industrial, business and demonstration projects in an ecologically sound environment. . A platform for scientific collaboration, business development, demonstration, piloting, commercialization, exporting and marketing of a wide array of innovative value-added wood and biomass products, including but not limited to: solid wood building components, biochemical and bioenergy . Assistance to the forest industry in creating uses for underutilized, lower value wood in Eastern Ontario and the region and . Participation in the restructuring of the forest industry of the Great Lakes/St. Lawrence forest for the benefit of rural communities and in partnership with a variety of other organizations, academic institutions, individuals and agencies with compatible goals. As mentioned earlier, Forestry and Logging are Eastern Ontario’s main strongholds in the province. As Table 18 showcases, Forestry and Logging businesses have a higher concentration in Eastern Ontario than the rest of the province. However, it is important to note that the industry is also quickly losing ground. From 2008-2012 Forestry and Logging operations were down by a quarter of their 2008 levels. Interestingly, support activities for forestry have seen a dramatic spike (42.6%) in activity.

31 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

TABLE 18: EASTERN ONTARIO’S NATURAL RESOURCES SECTOR

Total Total % Total ON Industry Bus. Bus. LQ Classification Change Bus. 2012 2012 2008 Basic Chemical Manufacturing 15 21 -28.6% 138 0.87 Mid Forestry and Logging 264 352 -25.0% 1337 1.58 Very High Mining and Quarrying (except oil and gas) 98 101 -3.0% 537 1.46 High Oil and Gas Extraction 4 9 -55.6% 187 0.17 Very Low Paper Manufacturing 4 6 -33.3% 66 0.49 Very Low Primary Metal Manufacturing 29 32 -9.4% 351 0.66 Low Support Activities for Forestry 77 54 42.6% 465 1.33 High Support Activities for Mining, and Oil and Gas 29 21 38.1% 820 0.28 Very Low Wood Product Manufacturing 133 154 -13.6% 1326 0.80 Mid Total 653 750 -12.9% 5227

Source: Canadian Business Patterns. December 2012, December 2008. Table 19 shows that within Eastern Ontario the largest concentrations of natural resource activity are within Hastings and Renfrew. Over 140 businesses are located within these counties accounting for 44% of the total natural resource businesses in Eastern Ontario.

TABLE 19: TOTAL NATURAL RESOURCE SECTOR BUSINESSES BY EASTERN ONTARIO COUNTIES

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Frontenac 33 5.1% 0.40 V. Low 47 -14 -29.8%

Haliburton 18 2.8% 1.88 V. High 34 -16 -47.1%

Hastings 141 21.6% 1.89 V. High 144 -3 -2.1%

Kawartha Lakes 35 5.4% 0.72 Low 38 -3 -7.9%

Lanark 40 6.1% 0.97 Mid 45 -5 -11.1% Leeds and Grenville 38 5.8% 0.64 Low 43 -5 -11.6%

Lennox and Addington 35 5.4% 1.83 V. High 29 6 20.7%

Northumberland 34 5.2% 0.64 Low 40 -6 -15.0% Peterborough 53 8.1% 0.68 Low 58 -5 -8.6%

Prescott and Russell 27 4.1% 0.50 V. Low 31 -4 -12.9%

Prince Edward 10 1.5% 0.57 Low 15 -5 -33.3% Renfrew 148 22.7% 2.90 V. High 179 -31 -17.3%

Stormont, Dundas and Glen. 41 6.3% 0.64 Low 47 -6 -12.8%

32 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Total Eastern Ontario 653 750 -97 -12.9%

Source: Canadian Business Patterns. December 2012, December 2008.

Healthcare

Health care is an important sector across Eastern Ontario. The healthcare sector in the region can be seen through distinct sector forms: the first is health care services. Many rural hubs, like Pembroke, for example, act as health care service hubs for a number of smaller, remote, rural communities across their region. These service hubs provide family care, emergency services, surgical and diagnostic care. Eastern Ontario’s ageing population will ensure the continued importance of medical service hubs across the region and potentially innovative activities associated with homecare and elder care. The second, type of health care cluster seen in Eastern Ontario is the research and development intensive life sciences clusters in Ottawa and Kingston that are primarily generated through spinoffs from the medical and life sciences programs at the University of Ottawa and Queens University and affiliated hospitals in the cities. In 2011, the Queen’s University’s Business School’s Monieson Centre launched a new research theme: Business Research in Healthcare. This theme examines how traditional business disciplines including strategy, finance, accounting, marketing and organizational behaviour impact the unique challenges facing the healthcare sector. It also addresses issues related to for-profit healthcare businesses including insurance firms, pharmaceutical companies, and retailers. Table 20 provides a great reflection on the impact of for-profit healthcare businesses (i.e. acupuncturists, dental hygienists, dieticians, kinesiologists, midwives, nutritionists, orthotics, podiatrists, registered nurse offices, and speciality hospitals). Over 300 new businesses opened up in Eastern Ontario providing for- profit healthcare options.

TABLE 20: EASTERN ONTARIO’S HEALTH AND WELLNESS SECTOR

Total Total % Total ON Industry Bus. Bus. LQ Classification Change Bus. 2012 2012 2008 Alternative And Complementary Health 533 154 246.1% 7236 0.92 Mid Behavioural And Mental Health 124 92 34.8% 1496 1.04 Mid Fitness, Exercise And Sport 590 642 -8.1% 5140 1.44 High Medical And Pharmaceutical Manufacturing 82 100 -18.0% 1359 0.76 Mid Food, Nutrition And Health Stores 1054 972 8.4% 13455 0.98 Mid Personal Care 1038 893 16.2% 13196 0.99 Mid Pet Wellness 361 342 5.6% 2823 1.60 Very High Physical Medicine And Rehabilitation 3285 3124 5.2% 41117 1.00 Mid Research And Development 453 374 21.1% 8442 0.67 Low Total 7520 6693 12.4% 94264

Source: Canadian Business Patterns. December 2012, December 2008.

33 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Frontenac County is home to the highest concentration of health industries in Eastern Ontario (Table 21). This is a direct response from the strength of healthcare research and development that takes place in Kingston through the post-secondary institutions. Interestingly, Prince Edward has seen an increase in for-profit healthcare businesses as their population continues to age into one of the eldest in Ontario. On the flip side, Haliburton was the only county to see negative growth in their health based industries. In 2011, Haliburton participated in the Healthy Communities Partnership Project which provided the County with some strategic directions on where and how they can improve the county’s overall healthcare sector8. Many residents were found to either move or consider moving to access a greater number of healthcare options.

TABLE 21: TOTAL HEALTH AND WELLNESS SECTOR BUSINESSES BY EASTERN ONTARIO COUNTIES

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Frontenac 1287 17.1% 1.36 High 1129 158 14.0%

Haliburton 95 1.3% 0.86 Mid 110 -15 -13.6%

Hastings 883 11.7% 1.03 Mid 778 105 13.5%

Kawartha Lakes 443 5.9% 0.79 Mid 388 55 14.2%

Lanark 445 5.9% 0.94 Mid 397 48 12.1%

Leeds and Grenville 658 8.8% 0.97 Mid 555 103 18.6%

Lennox and Addington 198 2.6% 0.90 Mid 190 8 4.2%

Northumberland 556 7.4% 0.91 Mid 472 84 17.8%

Peterborough 1033 13.7% 1.14 Mid 928 105 11.3%

Prescott and Russell 537 7.1% 0.86 Mid 461 76 16.5%

Prince Edward 183 2.4% 0.91 Mid 138 45 32.6%

Renfrew 568 7.6% 0.97 Mid 548 20 3.6%

Stormont, Dundas and Glen. 634 8.4% 0.86 Mid 599 35 5.8%

Total Eastern Ontario 7520 6693 827 12.4%

Source: Canadian Business Patterns. December 2012, December 2008.

Information and Communication Technology

The information and communications technology (ICT) sector has become increasingly important; as it has forever changed the way we do business, learn, communicate, access services and live. In order to

8 Haliburton County Community Picture 2011, Health Communities Partnership Project 2011, http://www.hkpr.on.ca/Portals/0/PDF%20Files%20- %20CDIP/Haliburton%20County%20Community%20Picture.pdf

34 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

advance the Canadian Digital Economy, continued ICT integration and innovation will be required. The Digital Economy Consultation paper suggests that Canada lacks a culture of innovation with respect to ICT adoption and that underinvestment in ICT has been linked to Canada's slower productivity growth. Research will be necessary to encourage innovation and adoption of ICT across all industries. Small and Medium Enterprises (SMEs) will need clear incentives to invest in ICT as they are often slow to adopt. Research can lead to innovation if it is done properly. Once research has been completed it is vital that an action plan be developed based on the findings. In recent years, the Canadian government has recognized the importance of ICT infrastructure, application and adoption. Industry Canada's recent Broadband Canada: Connecting Rural Canadians initiative is an example of the Government's commitment. Millions of dollars have been invested into Canada's ICT infrastructure and programs to encourage growth, adoption, application and innovation. More investment is needed and must be accompanied with a comprehensive strategy that addresses the cost of upgrading equipment and networks, the rugged Canadian landscape and the challenges of serving rural and remote areas. In response to the ever growing and changing ICT sector, Eastern Ontario Wardens’ Caucus has created the Eastern Ontario Regional Network (EORN). EORN’s mission is to provide higher speeds and bandwidth to at least 95% of homes and businesses in Eastern Ontario. This involves a 5,500 km network of new and existing fibre optic cable, with 160 new access points for Internet Service Providers. Table 22 has shown an increase in information industries (i.e. software publishers, wired telecommunications carriers, cable distribution, satellite telecommunications, data processing and hosting services) which is a direct response to the newly available service and market access. ICT manufacturing businesses (i.e. computer equipment, wireless communication equipment) also have begun to show a slight increase in Eastern Ontario.

TABLE 22: EASTERN ONTARIO’S ICT SECTOR

Total Total % Total ON Industry Bus. Bus. LQ Classification Change Bus. 2012 2012 2008 ICT - Information Industries 191 149 28.2% 3969 1.46 High ICT - Manufacturing 62 58 6.9% 891 2.11 Very High ICT - Other Services 86 100 -14.0% 1558 1.68 Very High ICT - Professional, Scientific and Technical Services 957 1013 -5.5% 33071 0.88 Mid ICT - Wholesale Trade 73 97 -24.7% 2066 1.07 Mid Total 1369 1417 -3.4% 41555

Source: Canadian Business Patterns. December 2012, December 2008. Leeds and Grenville and Lanark County have the highest concentrations of ICT businesses in Eastern Ontario. Both counties have joined forces with the Valley Heartland Community Futures Development Corporation to access the Eastern Ontario Development Program and focus on Innovation and Information Communication Technology in their part of Eastern Ontario. The Innovation and Information Communication Technology Fund will support innovation and technology initiatives which enhance business development opportunities in the counties’ knowledge based economies. Activities included research and development that enhances technology, improve efficiencies and productivity and is leading edge, providing competitive advantages for local business and organizations.

35 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

TABLE 23: TOTAL ICT SECTOR BUSINESSES BY EASTERN ONTARIO COUNTIES

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Frontenac 197 14.4% 1.14 Mid 222 -25 -11.3% Haliburton 13 0.9% 0.65 Low 23 -10 -43.5%

Hastings 109 8.0% 0.70 Low 110 -1 -0.9%

Kawartha Lakes 74 5.4% 0.72 Low 78 -4 -5.1% Lanark 165 12.1% 1.91 V. High 177 -12 -6.8%

Leeds and Grenville 171 12.5% 1.38 High 170 1 0.6%

Lennox and Addington 24 1.8% 0.60 Low 24 0 0.0%

Northumberland 96 7.0% 0.87 Mid 93 3 3.2%

Peterborough 162 11.8% 0.99 Mid 142 20 14.1%

Prescott and Russell 151 11.0% 1.33 High 159 -8 -5.0%

Prince Edward 30 2.2% 0.82 Mid 31 -1 -3.2%

Renfrew 82 6.0% 0.77 Mid 96 -14 -14.6%

Stormont, Dundas and Glen. 95 6.9% 0.71 Low 92 3 3.3%

Total Eastern Ontario 1369 1417 -48 -3.4%

Source: Canadian Business Patterns. December 2012, December 2008.

Logistics and Transportation

The logistics sector is prevalent among the major transportation corridor across the southern band of Eastern Ontario, mainly Highway 401. This sector is defined as: air, rail and water transportation; truck transportation; pipeline transportation; support activities for transportation; postal, courier and messenger services; and warehousing and storage. There were approximately 350 fewer companies in Eastern Ontario over the four year period from 2008 to 2012 (Table 24). Much of the decline was driven by businesses in the ‘indeterminate’ (i.e. self-employed) and small business categories (i.e. fewer than 20 employees). There has been comparatively strong growth among medium sized logistics companies (e.g. companies with 50-99 employees had a net increase of 12 businesses, or 27%) and large companies (50%). The findings indicate that although the sector declined in number of companies, there is strong and growing presence of larger logistics companies expanding in Eastern Ontario. These large companies are taking advantage of the proximity to three large urban markets and the access to transportation networks and border crossings.

36 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

TABLE 24: EASTERN ONTARIO’S LOGISTICS SECTOR

Total Total % Total ON Industry Bus. Bus. LQ Classification Change Bus. 2012 2012 2008 Air & Rail Transportation 39 44 -11.4% 462 1.40 High Truck Transportation 1716 2039 -15.8% 28617 1.00 Mid Pipeline Transportation 4 3 33.3% 41 1.62 Very High Support Activities for Transportation 213 244 -12.7% 4475 0.79 Mid Postal, Couriers and Messenger Services 253 215 17.7% 3704 1.13 Mid Warehousing and Storage 88 95 -7.4% 1089 1.34 High Total 2313 2640 -12.4% 38388

Source: Canadian Business Patterns. December 2012, December 2008. Areas of significant transportation and storage jobs were observed in the united counties of Stormont, Dundas and Glengarry, Leeds and Grenville County, and Hastings County and Peterborough County. One city that has built up a strong logistics sector is the city of Cornwall. Key location advantages such as the proximity to Montreal, Ottawa and Toronto has resulted in a logistics sector that includes over 150 businesses.

TABLE 25: TOTAL LOGISTICS SECTOR BUSINESSES BY EASTERN ONTARIO COUNTIES

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Frontenac 174 7.5% 0.60 Low 198 -24 -12.1%

Haliburton 25 1.1% 0.74 Low 47 -22 -46.8%

Hastings 359 15.5% 1.36 High 421 -62 -14.7%

Kawartha Lakes 219 9.5% 1.27 High 241 -22 -9.1%

Lanark 108 4.7% 0.74 Low 115 -7 -6.1% Leeds and Grenville 227 9.8% 1.09 Mid 243 -16 -6.6%

Lennox and Addington 94 4.1% 1.39 High 98 -4 -4.1%

Northumberland 207 8.9% 1.11 Mid 214 -7 -3.3% Peterborough 271 11.7% 0.98 Mid 301 -30 -10.0%

Prescott and Russell 141 6.1% 0.73 Low 162 -21 -13.0%

Prince Edward 65 2.8% 1.05 Mid 60 5 8.3% Renfrew 139 6.0% 0.77 Mid 194 -55 -28.4%

Stormont, Dundas and Glen. 284 12.3% 1.25 High 346 -62 -17.9%

Total Eastern Ontario 2313 2640 -327 -12.4%

Source: Canadian Business Patterns. December 2012, December 2008.

37 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Manufacturing

Much of the research that has been conducted on Eastern Ontario’s manufacturing sector was developed before the 2008-2009 recession. Extensive restructuring in the manufacturing sector has taken place across North America since the beginning of the recession and Eastern Ontario has not been immune to these challenges. The decline in manufacturing, however, has been a long-term trend in the economy of Eastern Ontario for the past two decades and has been exasperated by the dollars near parity exchange rate with the U.S. dollar and the restructuring that has taken place over the past five years. With that being said, manufacturing is still an important sector of Eastern Ontario’s economy and there are segments of the manufacturing sector that have historically been strong. Large multi-national manufacturers are located in Eastern Ontario (i.e. DuPont and 3M) and are responsible for thousands of Eastern Ontario jobs. Table 26 showcases that manufacturing businesses declined by 13.3% in the past four years.

TABLE 26: EASTERN ONTARIO’S MANUFACTURING SECTOR

Total Total % Total ON Industry Bus. Bus. LQ Classification Change Bus. 2012 2012 2008 Beverage and Tobacco Product Manufacturing 37 37 0.0% 438 1.27 High Chemical Manufacturing 78 95 -17.9% 1165 1.01 Mid Clothing Manufacturing 34 49 -30.6% 982 0.52 Low Computer and Electronic Product Manufacturing 100 100 0.0% 1378 1.09 Mid Electrical Equipment and Component 42 44 -4.5% 773 0.82 Mid Manufacturing Fabricated Metal Product Manufacturing 283 307 -7.8% 4833 0.88 Mid Food Manufacturing 196 216 -9.3% 2519 1.17 High Furniture and Related Product Manufacturing 149 176 -15.3% 2208 1.01 Mid Leather and Allied Product Manufacturing 17 13 30.8% 197 1.30 High Machinery Manufacturing 169 209 -19.1% 3407 0.75 Low Miscellaneous Manufacturing 258 288 -10.4% 3513 1.10 Mid Non-Metallic Mineral Product Manufacturing 99 125 -20.8% 1161 1.28 High Paper and Printing Manufacturing 154 178 -13.5% 3357 0.69 Low Petroleum and Coal Product Manufacturing 18 21 -14.3% 142 1.90 Very High Plastics and Rubber Products Manufacturing 84 93 -9.7% 1258 1.00 Mid Primary Metal Manufacturing 29 32 -9.4% 351 1.24 High Textile Product Mills 51 64 -20.3% 653 1.17 High Transportation Equipment Manufacturing 85 116 -26.7% 1263 1.01 Mid Wood Product Manufacturing 190 228 -16.7% 1543 1.85 Very High Total 2073 2391 -13.3% 31141

Source: Canadian Business Patterns. December 2012, December 2008.

38 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

A number of projects have been piloted throughout Eastern Ontario to ensure that the manufacturing sector remains stable in the future and grows. Quinte Economic Development Commission, for example, piloted a Productivity and Innovation program. The program consisted selecting manufacturers in the area and developing an assessment of their operations including productivity, delivery, costs, quality, safety and morale. The businesses were presented an interim report and Quinte Business Development Centre would develop a strategy looking at potential financial and incentive programs and other resources that could support the company to develop improved processes. A key recommendation that came out of the report was the funding for the Manufacturing Resource Centre as a regional coordinating body supporting manufacturing productivity and innovation activities as well as for workplace learning and performance activities. Table 27 reflects the strength of the program in Hastings County. The County has the largest amount of manufacturing businesses in Eastern Ontario and saw some of the lowest declines in manufacturing productivity compared to other counties in Eastern Ontario. Interestingly, Prince Edward County saw an increase of five manufacturing companies particularly around Beverage Manufacturing which includes wineries.

TABLE 27: TOTAL MANUFACTURING SECTOR BUSINESSES BY EASTERN ONTARIO COUNTIES

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Frontenac 197 9.5% 0.75 Low 226 -29 -12.8%

Haliburton 34 1.6% 1.12 Mid 45 -11 -24.4%

Hastings 261 12.6% 1.10 Mid 305 -44 -14.4%

Kawartha Lakes 165 8.0% 1.06 Mid 186 -21 -11.3%

Lanark 135 6.5% 1.03 Mid 161 -26 -16.1%

Leeds and Grenville 186 9.0% 0.99 Mid 208 -22 -10.6%

Lennox and Addington 57 2.7% 0.94 Mid 55 2 3.6%

Northumberland 185 8.9% 1.10 Mid 222 -37 -16.7%

Peterborough 246 11.9% 0.99 Mid 297 -51 -17.2% Prescott and Russell 148 7.1% 0.86 Mid 172 -24 -14.0%

Prince Edward 57 2.7% 1.02 Mid 52 5 9.6%

Renfrew 178 8.6% 1.10 Mid 215 -37 -17.2% Stormont, Dundas and Glen. 224 10.8% 1.10 Mid 247 -23 -9.3%

Total Eastern Ontario 2073 2391 -318 -13.3%

Source: Canadian Business Patterns. December 2012, December 2008.

39 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

Tourism and Hospitality, Rural Creative Economy

Tourism is an extremely important sector across Eastern Ontario with 15 out of the 23 municipalities in Eastern Ontario highlighting its significance. Currently, Eastern Ontario is comprised of three provincially- funded RTOs (Regional Tourism Organizations) including: RTO 9: The Great Waterway (St. Lawrence Seaway), RTO 10: Ottawa: Canada’s Capital (City of Ottawa), RTO 11: Ontario’s Highlands Tourism Organization (Renfrew, Algonquin, and Haliburton Highlands) Much of the tourism products being marketed across the region are based on the natural assets of Eastern Ontario. The St. Lawrence Seaway, the Rideau Canal, the Ottawa River, Algonquin Park, fishing, water sports, hiking and cycling are all being marketed in specific areas across the region. Cottaging and recreational opportunities are signature aspects of many municipalities’ tourism strategies. From 2008 to 2012, tourism related businesses increased by 1.6%. The largest growth was in retail and food and drink establishments. In comparison to Ontario, Eastern Ontario has a high concentration of accommodation services. As stated above, this is a direct result of having several tourism products spread out across Eastern Ontario from the southern lake communities to the natural experiences in rivers and parks to the north.

TABLE 28: EASTERN ONTARIO’S TOURISM SECTOR

Total Total % Total ON Industry Bus. Bus. LQ Classification Change Bus. 2012 2012 2008 Entertainment And Recreation 1044 1054 -0.9% 11747 0.99 Mid Retail 293 281 4.3% 2405 1.36 High Transportation 17 17 0.0% 158 1.20 High Travel Services 135 148 -8.8% 2905 0.52 Low Accommodations 815 809 0.7% 4791 1.90 Very High Food And Drink 2457 2377 3.4% 31091 0.88 Mid Total 4761 4686 1.6% 53097

Source: Canadian Business Patterns. December 2012, December 2008. As the gateway to the Algonquin highlands and Provincial Park, Haliburton is one of Eastern Ontario’s main tourism destinations. However, the recent economic depression has taken its toll on Haliburton’s tourism economy. Over 20 % of Haliburton’s tourism based businesses either closed or moved from the area from 2008 to 2012. On the flip side, down south, Prince Edward County saw an increase in tourism based businesses. Prince Edward County saw a tremendous growth in the sector (up 34.6% since 2008). This is a reflection of their improved tourism experiences (art trail, taste trail) and their commitment to preserving tourism experiences and products (attracting wineries and their support industries).

TABLE 29: TOTAL TOURISM SECTOR BUSINESSES BY EASTERN ONTARIO COUNTIES

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Frontenac 614 12.9% 1.02 Mid 653 -39 -6.0% Haliburton 110 2.3% 1.58 V. High 139 -29 -20.9%

40 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Hastings 562 11.8% 1.03 Mid 533 29 5.4%

Kawartha Lakes 337 7.1% 0.95 Mid 322 15 4.7%

Lanark 307 6.4% 1.02 Mid 283 24 8.5% Leeds and Grenville 464 9.7% 1.08 Mid 443 21 4.7%

Lennox and Addington 146 3.1% 1.05 Mid 132 14 10.6%

Northumberland 353 7.4% 0.92 Mid 332 21 6.3% Peterborough 609 12.8% 1.07 Mid 643 -34 -5.3%

Prescott and Russell 271 5.7% 0.68 Low 253 18 7.1%

Prince Edward 175 3.7% 1.37 High 130 45 34.6%

Renfrew 416 8.7% 1.12 Mid 432 -16 -3.7% Stormont, Dundas and 397 8.3% 0.85 Mid 391 6 1.5% Glengarry Total Eastern Ontario 4761 4686 75 1.6%

Source: Canadian Business Patterns. December 2012, December 2008. Cultural industries are an important contributor to regional economies, and can contribute significantly to both economic diversification and enhancing quality of place. This can in turn be important for attracting talented workers and new investment to Huronia. Thus, cultural industries comprise an important segment of a broader creative economy, though they remain specifically focused on creative artistic and aesthetic activity. Eastern Ontario has a strong base of cultural activity from which to attract new cultural workers and businesses, particularly in Prince Edward County, where they are supported by a growing active tourist market. In some places, efforts to qualify and quantify this industry are robust; Prince Edward County, Hastings, Haliburton, and Lennox and Addington have been particularly successful in developing the rural creative economy through efforts such as cultural mapping and planning. Hastings County has undergone its first Cultural Plan that acts as a catalyst for future growth in Cultural Industries not only within the borders of their main cities but as a regional initiative. It should be noted that the large French and Aboriginal populations in the area present opportunities for further growth in the cultural sector. Furthermore, educational programs such as Fleming College’s School of the Arts in Haliburton are equipping the cultural sector with skilled workers adept in new creative technologies and forms of production. To better capture the impact of the cultural sector in Eastern Ontario, the Statistics Canada’s Framework for Cultural Statistics (Table 30), which describes in detail those industries contributing to the creation, production, distribution, manufacturing and provision of support services for the culture sector – referred to as the ‘creative chain’ was used. From this framework, cultural industries are deemed to include the following sectors:

41 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

. Audio-Visual and Interactive Media – Includes motion picture exhibitions, production, and distribution, as well as, website design, and video game development . Education and Training – Includes instructional institutions of arts, crafts, visual media, music and dance . Governance, Funding and Professional Support – Includes government organizations with a cultural development mandate . Heritage and Libraries – Includes for-profit museums, libraries and archives . Live Performance – Includes performing art venues and companies . Sound Recording – Includes music production and recording studios . Specialized Beverages and Food with Live Entertainment – Includes wineries, and other culinary experiences, as well as, restaurants that exhibit cultural activities (music, art, dance, comedy) . Visual and Applied Arts – Includes for-profit art galleries and art dealers . Written and Published Works – Includes for-profit printers, publishers and book stores

TABLE 30: EASTERN ONTARIO’S CULTURAL SECTOR

Total Total % Total ON Industry Bus. Bus. LQ Classification Change Bus. 2012 2012 2008 Audio-Visual and Interactive Media 327 340 -3.8% 9864 0.71 Low Education and Training 43 52 -17.3% 781 1.18 High Governance, Funding and Professional Support 27 14 92.9% 608 0.95 Mid Heritage and Libraries 108 109 -0.9% 734 3.16 Very High Live Performance 182 151 20.5% 3953 0.99 Mid Sound Recording 169 224 -24.6% 4133 0.88 Mid Specialized Beverages and Food with Live 1114 1104 0.9% 13711 1.74 Very High Entertainment Visual and Applied Arts 1901 1971 -3.6% 52242 0.78 Mid Written and Published Works 448 497 -9.9% 6617 1.45 High Total 4319 4462 -3.2% 92643

Source: Canadian Business Patterns. December 2012, December 2008.

TABLE 31: TOTAL FOR-PROFIT CULTURAL SECTOR BUSINESSES BY EASTERN ONTARIO COUNTIES

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Frontenac 587 13.6% 1.08 Mid 621 -34 -5.5%

Haliburton 81 1.9% 1.28 High 106 -25 -23.6%

Hastings 438 10.1% 0.89 Mid 464 -26 -5.6% Kawartha Lakes 257 6.0% 0.80 Mid 259 -2 -0.8%

Lanark 369 8.5% 1.36 High 392 -23 -5.9%

Leeds and Grenville 381 8.8% 0.98 Mid 396 -15 -3.8%

42 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile

LQ Net Businesses Proportion Businesses % Change Geographic Area (Counties) Eastern Class Increase 2012 of Total 2008 2008-2012 Ontario 2008-2012 Lennox and Addington 116 2.7% 0.92 Mid 116 0 0.0%

Northumberland 409 9.5% 1.17 High 394 15 3.8%

Peterborough 586 13.6% 1.13 Mid 603 -17 -2.8% Prescott and Russell 335 7.8% 0.93 Mid 355 -20 -5.6%

Prince Edward 167 3.9% 1.44 High 137 30 21.9%

Renfrew 275 6.4% 0.81 Mid 296 -21 -7.1% Stormont, Dundas and 318 7.4% 0.75 Mid 323 -5 -1.5% Glengarry Total Eastern Ontario 4319 4462 -143 -3.2%

Source: Canadian Business Patterns. December 2012, December 2008.

43 Eastern Ontario Economic Development Strategy: Appendix A – Regional Profile