2015 Annual Economic Report

BRAMPTON ANNUAL ECONOMIC REPORT 2015 Canon Canada Inc., Headquarter, Brampton TABLE OF CONTENTS 1 Messages from Mayor and Chair, Economic Development Committee 2 Economic Highlights 3 Industrial Market Overview 6 Commercial Market Overview 8 Key Developments and Investments 10 Institutional Market Overview 13 Residential Market Overview 15 Entrepreneurship 16 Social Media 17 2015 Achievements Brampton has a strong economy and is well-positioned for business investment. Its stable marketplace offers competitive energy prices, streamlined regulations and a low-risk investment climate. Brampton has maintained a AAA credit rating from Standard and Poor’s for ten consecutive years. We view Brampton’s economy as very strong, given its diversification and track record of strong growth. The city is one of three lower-tier municipalities of Peel. It is a high-growth municipality, with a population of more than 520,000 according to the 2011 Census, up 21% from 2006. Although municipal GDP data are not available, we believe that the city generated GDP per capita comparable with the provincial average of about US$48,600 in 2012-2014, with an average household income estimated at more than C$92,000 in 2013, which was close to the provincial average. In addition, the presence of high valued-added sectors and very healthy population growth also support economic growth. Source: Standard and Poor’s Financial Services – Ratings Direct First city in the Greater Toronto Area (GTA) and one of only 10 in North America to be designated an International Safe Community by the World Health Organization (WHO). TABLE OF CONTENTS MAYOR’S MESSAGE Brampton is a world-class city strategically located near the Toronto Pearson Airport — one of the three most significant employment mega zones in the Greater Toronto Area. When leading international brands such as Canon Inc. choose Brampton as their Canadian base, it’s not only for our business-conducive environment and regional connectivity, but also because we are powered by a young, diverse and well-educated workforce. Brampton continues to grow and prosper, led by sustained economic growth. At the Linda Jeffrey same time we are building momentum by seeking specialized opportunities in foreign Mayor of Brampton direct investment. Our strategic partnership with TO Health! combined with the upcoming Peel Memorial Centre for Integrated Health and Wellness, and ErinoakKids Centre for Treatment and Development, along with the existing Brampton Civic Hospital are crucial to expanding employment and development opportunities in leading-edge and innovative healthcare and research. To build talent from the ground up, Brampton is well on track to attracting a post-secondary university. Capital, knowledge and innovation – we have the necessary ingredients to build a better Brampton. There’s no better time than now to invest in Brampton. CHAIR’S MESSAGE Exciting things are happening in Brampton. From world-class developments to the expansion and retention of existing business operations – Brampton is demonstrating that it is a people-powered economy on the move. The pages of this Annual Report are full of facts and examples highlighting the continuous growth in Brampton. We have built partnerships across governments, businesses and communities to move our city forward. We have innovators with new ideas and approaches, creating new opportunities. Investment in infrastructure and target sectors like Human Health and Sciences are laying the groundwork for continued growth and expansion. Jeff Bowman Brampton is the ninth largest city in Canada, and across many measures of City Councillor Wards 3 & 4 Chair, Economic economic development activity – we’re exceeding our position. Development Committee This is the right time, and Brampton is the right place to do business. 1 ECONOMIC HIGHLIGHTS 208 NEW BUSINESSES | 1,466 NEW JOBS | 6TH LARGEST CONSTRUCTION MARKET IN CANADA Brampton’s economy is fundamentally sound positive demand in the Brampton real estate Brampton’s anticipated growth is supported by and strong. With continued population and sector. Brampton has sustained a top six position its Official Plan and a diverse economic base. employment growth, Brampton is expected to in Canada with respect to total construction The City’s vision and strategy continues to be continue on its positive economic growth curve activity, a fourth position in industrial focused on the redevelopment of the Queen going into 2016, although at a modest pace. construction activity and fifth place in total Street Corridor and on the attraction of new residential construction activity. industrial-commercial development in its While the Canadian economy has been facing strategically located business parks. challenging times in numerous sectors and Within the GTA (Toronto CMA*), Brampton struggling for growth, the real estate market once again finished strong, second only to Brampton’s population and employment has been holding steady and showing resilience. the City of Toronto in total construction, growth supports economic expansion over In spite of the Canadian dollar and crude oil institutional construction, residential the next 25-years. Brampton has and will prices simultaneously dropping, and construction, and number of residential continue to maintain its place as an important employment cutbacks, the industrial- units under construction. Overall in the GTA, and strategic location in the strong commercial real estate market continues to Brampton ranked third in non-residential GTA marketplace – one of Canada’s key achieve modest but steady growth in the activity, third in industrial activity and fifth economic engines. Greater Toronto Area (GTA). in commercial activity. *Toronto CMA (Toronto Census Metropolitan Area) Brampton’s unemployment rate has dropped to 6.8 per cent, the lowest level since 2008. The total number of new businesses in ECONOMIC INDICATORS 2015 was up 5.6 per cent from 2014, while VARIANCE BRAMPTON INDICATORS 2015 2014 new employment was down 32.5 per cent with (15/14) Brampton attracting 208 new businesses and Total New Employment1 1,466 2,171 -32.5% 1,466 new jobs. Brampton’s total Total New Business1 208 197 5.6% construction value was strong in 2015 at Unemployment Rate % (Region of Peel)2 6.8 8.5 -20% over $2.7 billion, up over 20 per cent. Total Construction Value3 $2,731,790,832 $2,260,648,985 20.8% Industrial construction activity was up Residential Construction Value3 $2,199,427,993 $1,610,833,913 36.5% almost 100 per cent, while commercial Industrial Construction Value3 $210,476,550 $105,285,725 99.9% construction activity was down over 42 per Commercial Construction Value3 $83,493,369 $145,475,986 -42.6% cent, and institutional construction was down Institutional Construction Value3 $233,386,668 $395,503,901 -41% 41 per cent. Brampton’s residential construction Housing Resale Activity4 9,365 8,332 12.4% market, at close to $2.2 billion, was up over Average House Price4 $488,497 $444,007 10% 36 per cent from 2014. This decrease in the Housing Permits (units)3 5,449 4,366 24.8% commercial construction market was due in part Industrial Vacancy Rate % (Q4 2015/2014)5 3.9 5.5 -29.1 to the strong showing in residential construction 1 2 in 2015. Commercial construction is expected to Source: Brampton Economic Development Office. Statistics Canada Labour Force Survey, December 2014-December 2015 3 Brampton Building Division, December 2015. 4 Monthly MarketWatch (Toronto Real Estate Board) December 2015 gain strength in the subsequent years. 5 GTA Q4 2015/2014 Industrial Statistics – (Colliers International) Brampton’s industrial sector showed confidence TOTAL CONSTRUCTION VALUE IN CANADA in the future of the economy by building 2015 (in $ ‘000s) 11 significant expansions led by Gap Inc.’s 333,000 square foot, $20 million addition to 1 $7,808,400 Toronto, ON their distribution centre. Four new industrial 2 $6,152,740 Calgary, AB 3 $4,320,790 Edmonton, AB speculative buildings totalling close to 790,000 4 $3,083,873 Vancouver, BC square feet added to the city’s inventory. 5 $2,904,932 Montréal, QC 6 $2,736,529 Brampton, ON Brampton’s competitive tax rates and regulatory 7 $2,101,610 Ottawa, ON environment, extensive transportation network, 8 $1,436,441 Surrey, BC close proximity to major labour and consumer 9 $1,392,726 Winnipeg, MB markets (specifically the GTA market of 10 $1,378,922 Vaughan, ON 2 6 million), and availability of land has created Source: Statistics Canada, Catalogue no. 64-001-XWF. Compiled by the Brampton Economic Development Office INDUSTRIAL MARKET OVERVIEW In 2015, Brampton’s industrial construction According to Statistics Canada’s national Some of our leading businesses such as Gap market consisted of seven new buildings, construction value rankings, Brampton’s Inc., Canadian Blood Services, Maplehurst totaling over 875,000 square feet and industrial construction activity ranked third in Bakeries and Coca-Cola Refreshments Canada additions, to 11 existing industrial facilities the Greater Toronto Area (Toronto CMA) and reinvested with significant expansions to totaling close to 550,000 square feet. At over was fourth overall in Canada, up from ninth existing industrial facilities, adding over 400,000 $210 million* in construction value, the total position in 2014. square feet in total and nearly $35 million in industrial investment market was up almost construction value. This degree of investment in 100 per cent from 2014. the city is a testament to the value businesses * Total includes: new

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