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Transportation and Warehousing Sector Profile November 2018

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Transportation and Warehousing Sector Profile November 2018 Town of Neepawa Transportation and Warehousing Sector Profile November 2018 Table of Contents 1. Sector Overview ........................................................................................................... 1 1.1 Sector Size & Performance ....................................................................................................... 1 1.2 Workforce & Employment........................................................................................................ 2 1.3 Local Industry ........................................................................................................................... 9 1.4 Trade (Exports & Imports) ...................................................................................................... 13 1.5 Sector Trends & Outlook ........................................................................................................ 14 2. The Neepawa Advantage ............................................................................................ 16 2.1 Core Cluster ............................................................................................................................ 18 2.2 Local & Regional Assets .......................................................................................................... 19 2.3 Market Position & Competitiveness ....................................................................................... 21 3. Appendix (Definitions) ................................................................................................ 23 Town of Neepawa: Transportation and Warehousing Sector Profile Page i 1. Sector Overview The Transportation and Warehousing sector is defined by firms providing the following: transportation of passengers and cargo, warehousing and storage for goods, scenic and sightseeing transportation, and support activities related to modes of transportation. Establishments in these industries use transportation equipment or transportation related facilities as a production assets. The type of equipment depends on the mode of transportation be it air, rail, water, road or pipeline. The Transportation and Warehousing sector is distinguished by three basic types of activities: subsectors for each mode of transportation, a subsector for warehousing and storage, and a subsector for establishments providing support activities for transportation. In addition, there are subsectors for establishments that provide passenger transportation for scenic and sightseeing purposes, postal services, and courier services1. Many of the establishments in this sector often operate on networks, with physical facilities, labour forces, and equipment spread over an extensive geographic area. Warehousing establishments in this sector are distinguished from merchant wholesaling in that the warehouse establishments do not sell the goods. 1.1 Sector Size & Performance Canada’s Transportation and Warehousing sector contributed over $78 billion to Canada’s overall GDP in 2017. According to Statistics Canada, Manitoba is the fifth largest output contributor to total Transportation and Warehousing GDP in Canada, with a contribution of more than $3.8 billion in 2017. Figure 1: Gross Domestic Product for Transportation and Warehousing Sector by Province 2017 ($CAD Billions) 30.0 $26.5 25.0 20.0 $14.7 15.0 $13.8 $13.0 10.0 5.0 $3.8 $3.0 $1.4 $1.2 $0.8 $0.1 0.0 ON QC BC AB MB SK NB NS NL PEI Source: Statistics Canada GDP by NAICS at Basic Prices, Table 379-0030, 2018 1 NAICS Sector 48-49: Transportation and Warehousing Source: classcodes.com/lookup/sector-48-49 Town of Neepawa: Transportation and Warehousing Sector Profile Page 1 The Transportation and Warehousing sector saw slower growth for 2015 and 2016, but recovered in 2017 with a growth in output for 2017. Table 1: Transportation and Warehousing Sector GDP Output and Year-Over-Year Growth for Manitoba (Millions CAD) 2013 2014 2015 2016 2017 Transportation and Warehousing GDP 3,271.50 3,492.40 3,552.70 3,643.40 3,821.50 Y-O-Y Growth (%) 7% 2% 3% 5% Source: Statistics Canada GDP by NAICS at Basic Prices, Table 379-0030, 2018 1.2 Workforce & Employment 1.2.1 Employment Data & Projections The Province of Manitoba has the fifth largest number of employees in the Transportation and Warehousing sector, employing approximately 4% of the total Transportation and Warehousing sector workforce in Canada. In terms of overall employment, approximately 6.3% of Manitoba’s employed workforce is in Transportation and Warehousing – the largest percentage of all provinces. Followed by Alberta (6.1%) and Saskatchewan (6.1%). Figure 2: Employed Labour Force in Transportation and Warehousing Sector, Provinces, 2017 (Number of People) 400,000 350,000 335,525 300,000 250,000 192,499 200,000 150,000 135,517 129,163 100,000 38,874 50,000 26,304 19,419 18,519 11,696 3,064 0 ON QC BC AB MB SK NS NB NL PEI Source: Employees & Self-Employed - Emsi 2018.1 Town of Neepawa: Transportation and Warehousing Sector Profile Page 2 As of 2017, approximately 243 residents of Neepawa are employed in the Transportation and Warehousing sector. The most common Transportation and Warehousing sub-sectors for Neepawa residents working in the Transportation and Warehousing sector are Water transportation (159 workers, 65%), Truck transportation (29, 12%) and Couriers and messengers (17, 7%) See Table 2 for a detailed breakdown. *Note Inland Water Transportation can include multiple sub sectors including boat rentals, full list available in footnote. Table 2: Employed Labour Force in Transportation and Warehousing Sector, Communities, 2017 (Number of People) NAICS Description Neepawa Division 15 Manitoba 481 Air transportation <10 <10 3,729 482 Rail transportation 0 69 3,529 4832 Inland Water transportation2 159 194 341 484 Truck transportation 29 149 14,592 485 Transit and ground passenger transportation <10 19 3,042 486 Pipeline transportation 0 0 0 487 Scenic and sightseeing transportation <10 <10 63 488 Support activities for transportation <10 57 3,462 491 Postal service 11 130 4,866 492 Couriers and messengers 17 29 2,721 493 Warehousing and storage <10 10 2,529 Total 243 666 38,874 Source: Employees & Self-Employed - Emsi 2018.1 *Data note employment numbers are based on estimates by Statistics Canada and may not total exactly 2 All Examples of Businesses within this sector: canal barge operations; canal transportation, freight canal transportation, passengers chartering of commercial boats with operator, inland water (freight) chartering of commercial boats with operator, inland water (passengers) chartering vessels with crew, inland water transportation of passengers (except Great Lakes) chartering vessels with crew, inland waters, freight transportation (except Great Lakes) intracoastal water transportation, freight intracoastal water transportation, passengers lake (except Great Lakes) transportation (except ferries), passengers lake (except Great Lakes) transportation of freight (except ferries) log rafting and towing, inland waters (except Great Lakes) river freight transportation (except using the St. Lawrence seaway) river passenger transportation (except ferries) ship chartering with operator, inland (freight) ship chartering with operator, inland (passengers) water taxi service, inland waterways Source: statcan.gc.ca/imdb/p3VD.pl?Function=getAllExample&TVD=307532&CVD=307548&CPV=483213&CST=01012017& CLV=5&MLV=5&V=290110&VST=01012017 Town of Neepawa: Transportation and Warehousing Sector Profile Page 3 From 2007-2017 Neepawa gained 210 Transportation and Warehousing jobs, two thirds of Division 15’s 3303. Both regions have had significant positive growth, which aligns with the Province of Manitoba’s 5,452 gain in jobs. Table 3: Change in Employed Labour Force in Transportation and Warehousing Sector, Communities, 2007-2017 (Number of Jobs) Industry (NAICS) Description Neepawa Division No. 15 Manitoba Transportation Total 210 330 5,452 and Warehousing Source: Employees & Self-Employed - Emsi 2018.1 Table 4 showcases the location quotients (LQ)4 for Neepawa in 2017. The LQs measure the concentration of Transportation and Warehousing employment in Neepawa, Manitoba Division 15 and Manitoba compared to the national rate. When compared to Canada and Province of Manitoba, Division 15 and Neepawa have a high concentration of their labour force working in food and wood product Transportation and Warehousing. Table 4: Transportation and Warehousing National Workforce Location Quotients – Neepawa, Division 15 & Manitoba Industry Description Neepawa Division No. 15 Manitoba (NAICS) 481 Air transportation 0.55 0.16 1.37 482 Rail transportation 0.00 2.69 2.15 4832 Inland Water transportation 65.86 23.47 0.64 484 Truck transportation 0.60 0.90 1.37 485 Transit and ground passenger transportation 0.30 0.20 0.49 486 Pipeline transportation 0.00 0.00 0.00 487 Scenic and sightseeing transportation 2.17 2.49 0.92 488 Support activities for transportation 0.39 0.82 0.78 491 Postal service 0.87 3.12 1.82 492 Couriers and messengers 1.61 0.79 1.16 493 Warehousing and storage 0.36 0.35 1.39 Total 1.61 1.29 1.17 Source: Employees & Self-Employed - Emsi 2018.1 3See Definition of Census Division 15 in Appendix 4 An LQ of 1.25 and over suggests a high concentration of local activity in an industry and a LQ of less than 0.75 suggests a low concentration of local activity or gap area, in relation to the area being compared against. From a labour force perspective, LQs may offer insight into where local concentrations of industry-relevant
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