Town of Manufacturing Sector Analysis November 2018

Table of Contents

1. Sector Overview...... 1 1.1 Sector Size & Performance ...... 1 1.2 Workforce & Employment ...... 2 1.2.1 Employment Data & Projections ...... 2 1.2.2 Occupational Data & Projections ...... 5 1.2.3 Wages/Salary Data ...... 8 1.2.4 Education and Training...... 10 1.3 Local Industry ...... 10 1.3.1 Business Establishment Counts ...... 10 1.3.2 Business Establishment Location Quotients ...... 12 1.3.3 Financial Profile of Businesses ...... 13 1.3.4 Major Employers ...... 14 1.4 Trade (Exports & Imports) ...... 15 1.5 Sector Trends & Outlook ...... 15 1.5.1 Manufacturing Trends ...... 15 1.5.2 Manufacturing Outlook ...... 16 1.5.3 Manufacturing Outlook ...... 16

2. The Okotoks Advantage ...... 18 2.1 Core Clusters ...... 18 2.2 Local & Regional Assets ...... 19 2.2.1 Post-Secondary Institutions ...... 19 2.2.2 Research Areas & Facilities ...... 19 2.2.3 Major Land & Infrastructure ...... 20 2.3 Market Position & Competitiveness ...... 20 2.3.1 Strengths & Opportunities ...... 20 2.3.2 Weaknesses ...... 21

3. Appendix (Definitions) ...... 22

Okotoks: Manufacturing Sector Analysis Page i

1. Sector Overview The manufacturing sector comprises establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. These products may be finished, in the sense that they are ready to be used or consumed, or semi-finished, in the sense of becoming raw material for an establishment to use in further manufacturing. Under and the North American Industry Coding System (NAICS), this consists of 21 different sub-sectors.

1.1 Sector Size & Performance

Canada’s manufacturing sector contributed $1.8 trillion to Canada’s overall GDP in 2017. According to Statistics Canada, Alberta is the third largest output contributor to total manufacturing GDP in Canada, with a contribution of more than $17.7 billion in 2017.

Figure 1: Gross Domestic Product for Manufacturing Sector by Province 2017 ($CAD Billions) 90.0 $82.2 80.0 70.0 60.0 50.0 $46.1 40.0 30.0 $17.7 20.0 $16.8

10.0 $5.5 $4.4 $3.0 $2.6 $1.0 $0.5 0.0 ON QC AB BC MB SK NB NS NL PEI

Source: Statistics Canada GDP by NAICS at Basic Prices, Table 379-0030, 2018

Due to Alberta’s manufacturing sector being primarily driven by the needs of the oil and gas industry, the growth or decline of manufacturing output typically follows the performance of the energy sector. In 2015 Alberta experienced an economic downturn due to a global drop in oil prices, impacting the province’s industries across the board. The manufacturing sector saw contraction in output for 2015 and 2016, however as energy recovered as did manufacturing with a growth in output for 2017. Overall, the compound annual growth rate from 2007-2017 has been -0.4 percent.

Figure 2: Manufacturing Sector GDP Output and Year-Over-Year Growth for Alberta (Billions CAD) 2013 2014 2015 2016 2017 Manufacturing GDP $18.3 $18.8 $17.6 $16.3 $17.7 Y-O-Y Growth (%) 3.0% 2.9% -6.6% -7.1% 8.6% Source: Statistics Canada GDP by NAICS at Basic Prices, Table 379-0030, 2018

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1.2 Workforce & Employment 1.2.1 Employment Data & Projections

The Province of Alberta is the fourth largest employer in the manufacturing sector, employing approximately 7.7 per cent of the total manufacturing sector workforce in Canada. When analyzing these numbers in terms of overall employment in each province, approximately 5.6 per cent of Alberta’s employed workforce is in manufacturing – the second lowest percentage of all the provinces, after Saskatchewan. Quebec employs approximately 11.0 per cent of their workforce in manufacturing – the highest percentage of all the provinces – followed by Ontario (9.8%) and New Brunswick (8.5%).

Figure 3: Employed Labour Force in Manufacturing Sector, Provinces, 2016 (Number of People) 700,000 651,835

600,000

500,000 436,045 400,000

300,000

200,000 149,455 116,760 100,000 52,450 29,160 28,715 25,070 13,010 5,725 0 ON QC BC AB MB NS NB SK NL PEI

Source: Statistics Canada, Census, 2016

As of the 2016 Census, approximately 785 residents of Okotoks are employed in the manufacturing sector, however the majority of these workers are employed in and other areas surrounding Okotoks. The most common manufacturing sub-sectors for Okotoks residents working in manufacturing include, food manufacturing (190 workers, 24.2%); fabricated metal products manufacturing (100, 12.7%); and machinery manufacturing (85 workers, 10.8%). See Figure 4 for a detailed breakdown.

When analyzed by place of work, Okotoks has an estimated 160 workers who are employed in manufacturing locally, according to the 2016 Census.

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Figure 4: Employed Labour Force in Manufacturing Sector, Communities, 2016 (Number of People)

Industry (NAICS) Okotoks Calgary CMA Alberta

NAICS 311: Food 190 5395 18340 NAICS 312: Beverage and Tobacco Product 25 1215 2525 NAICS 313: Textile Mills 0 120 270 NAICS 314: Textile Product Mills 0 215 600 NAICS 315: Clothing 0 345 900 NAICS 316: Leather and Allied Product 0 25 130 NAICS 321: Wood Product 40 1555 8045 NAICS 322: Paper 10 725 2915 NAICS 323: Printing and Related Support Activities 30 1950 4175 NAICS 324: Petroleum and Coal Products 50 2320 7785 NAICS 325: Chemicals 70 2100 8520 NAICS 326: Plastics and Rubber Products 30 1550 5245 NAICS 327: Non-Metallic Mineral Product 35 2355 6055 NAICS 331: Primary Metal 15 935 3600 NAICS 332: Fabricated Metal Product 100 4490 17155 NAICS 333: Machinery 85 3795 11215 NAICS 334: Computer and Electronic Product 35 2280 3855 NAICS 335: Electrical Equipment, Appliance, and Component 0 1015 2040 NAICS 336: Transportation Equipment 25 1175 3435 NAICS 337: Furniture and Related Product 20 2450 4655 NAICS 339: Miscellaneous 25 1930 5305 Manufacturing Employed Workforce 785 740235 116765 Percentage of Total Employed Workforce 5.4% 5.1% 5.6% Source: Statistics Canada, Census, 2016

Figure 5 showcases the location quotients (LQ)1 for Okotoks in 2016. The LQs measure the concentration of manufacturing employment in Okotoks relative to the Calgary CMA and Alberta.

When compared to the Calgary CMA, Okotoks has a high concentration of their labour force working in food, wood product, and chemical manufacturing. When compared to the Alberta, Okotoks has a high concentration of their labour force working in food, beverage, and computer and electronic products manufacturing.

On average, Okotoks has an average concentration of its employed labour force working in manufacturing when compared to the Calgary CMA and a low concentration when compared to Alberta as a whole.

1 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 skills may exist.

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Figure 5: Manufacturing Workforce Location Quotients – Okotoks vs Calgary CMA & Alberta Okotoks / Calgary CMA Okotoks / Alberta Industry (NAICS) LQ Classification LQ Classification

Manufacturing LQ Average 0.77 Average 0.72 Low NAICS 311: Food 1.78 High 1.49 High NAICS 312: Beverage and Tobacco Product 1.04 Average 1.42 High NAICS 313: Textile Mills 0.00 Low 0.00 Low NAICS 314: Textile Product Mills 0.00 Low 0.00 Low NAICS 315: Clothing 0.00 Low 0.00 Low NAICS 316: Leather and Allied Product 0.00 Low 0.00 Low NAICS 321: Wood Product 1.30 High 0.71 Low NAICS 322: Paper 0.70 Low 0.49 Low NAICS 323: Printing and Related Support Activities 0.78 Average 1.03 Average NAICS 324: Petroleum and Coal Products 1.09 Average 0.92 Average NAICS 325: Chemicals 1.69 High 1.18 Average NAICS 326: Plastics and Rubber Products 0.98 Average 0.82 Average NAICS 327: Non-Metallic Mineral Product 0.75 Average 0.83 Average NAICS 331: Primary Metal 0.81 Average 0.60 Low NAICS 332: Fabricated Metal Product 1.13 Average 0.84 Average NAICS 333: Machinery 1.13 Average 1.09 Average NAICS 334: Computer and Electronic Product 0.78 Average 1.30 High NAICS 335: Electrical Equipment, Appliance, and Component 0.00 Low 0.00 Low NAICS 336: Transportation Equipment 1.08 Average 1.04 Average NAICS 337: Furniture and Related Product 0.41 Low 0.62 Low NAICS 339: Miscellaneous 0.66 Low 0.68 Low Source: Statistics Canada, Census, 2016. Adapted by MDB Insight.

Based on place of work data and metroeconomics’ national/provincial/municipal projection system, employment projections were prepared for Okotoks. These projections show net employment growth in the manufacturing sector for Okotoks between 2016 and 2026.

The most active sub-sectors for net growth over the projected period include food manufacturing (+19 net jobs), non-metallic mineral product manufacturing (+10 net jobs), and miscellaneous manufacturing (+7 net jobs). Two sub-sectors which will see net employment decline include printing and related support activities (-3 net jobs) and primary metal manufacturing (-1 net job).

Overall the manufacturing sector in Okotoks is expected to see a net growth of 37 jobs from 2016-2026.

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Figure 6: Projected Okotoks Employment in Manufacturing by Industry, 2016-2026 (Place of Work Status) Net Industry (NAICS) ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 ‘26 16-26 NAICS 311: Food 40 42 44 45 47 49 51 53 55 57 59 19 NAICS 312: Beverage and Tobacco Product 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 313: Textile Mills 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 314: Textile Product Mills 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 315: Clothing 10 10 10 10 10 10 10 10 10 10 10 0 NAICS 316: Leather and Allied Product 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 321: Wood Product 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 322: Paper 10 10 10 11 11 11 11 11 11 11 11 1 NAICS 323: Printing and Related Support 10 9 9 8 8 7 7 7 7 7 7 -3 Activities NAICS 324: Petroleum and Coal Products 15 16 16 17 17 18 18 18 19 19 19 4 NAICS 325: Chemicals 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 326: Plastics and Rubber Products 15 15 15 15 14 14 14 14 15 15 15 0 NAICS 327: Non-Metallic Mineral Product 20 21 22 24 25 26 27 27 28 29 30 10 NAICS 331: Primary Metal 10 10 10 9 9 9 9 9 9 9 9 -1 NAICS 332: Fabricated Metal Product 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 333: Machinery 10 10 10 11 11 11 11 11 11 12 12 2 NAICS 334: Computer and Electronic Product 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 335: Electrical Equipment, Appliance, 0 0 0 0 0 0 0 0 0 0 0 0 and Component NAICS 336: Transportation Equipment 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 337: Furniture and Related Product 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 339: Miscellaneous 20 20 21 21 22 22 23 24 25 26 27 7 Total Manufacturing Employment Projections 160 164 167 171 174 178 182 186 189 193 197 37 Source: metroeconomics, Okotoks Employment Projections by Industry. Adapted by MDB Insight Inc.

1.2.2 Occupational Data & Projections

Based on place of work data and metroeconomics’ national/provincial/municipal projection system, occupation projections were prepared for Okotoks. These projections show net growth in manufacturing sector occupations for Okotoks between 2016 and 2026.

The most active occupations for net growth over the projected period include labourers in food and beverage processing, general/miscellaneous labourers in manufacturing, manufacturing manager, supervisors in mineral and metal processing, and supervisors in food and beverage processing. No occupations are expected to decline; however, most occupations will remain stagnant in growth from 2016 to 2026.

Overall the sector in Okotoks is expected to see a net growth of 15 workers employed in 70 different manufacturing-related occupations from 2016-2026

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Figure 7: Projected Okotoks Employment in Manufacturing by Occupations, 2016-2026 (Place of Work Status) Occupation Net ‘16 ‘18 ‘20 ‘22 ‘24 ‘26 16-26 Manufacturing Managers 8 9 9 9 10 10 2 Supervisors, Mineral and Metal Processing 1 1 1 1 2 2 1 Supervisors, Petroleum, Gas and Chemical Processing and Utilities 4 4 4 4 4 4 0 Supervisors, Food and Beverage Processing 1 2 2 2 2 2 1 Supervisors, Plastic and Rubber Products Manufacturing 1 1 1 1 1 1 0 Supervisors, Forest Products Processing 1 1 1 1 1 1 0 Supervisors, Textile, Fabric, Fur and Leather Products Processing 0 0 0 0 0 0 0 Supervisors, Motor Vehicle Assembling 0 0 0 0 0 0 0 Supervisors, Electronics Manufacturing 0 0 0 0 0 0 0 Supervisors, Electrical Products Manufacturing 0 0 0 0 0 0 0 Supervisors, Furniture and Fixtures Manufacturing 0 0 0 0 0 0 0 Supervisors, Other Mechanical and Metal Products Manufacturing 0 0 0 0 0 0 0 Supervisors, Other Products Manufacturing and Assembly 1 1 1 1 1 1 0 Central Control and Process Operators, Mineral and Metal 0 0 0 0 0 0 0 Central Control and Process Operators, Petroleum, Gas and Chemical 7 7 7 7 7 7 0 Pulping, Papermaking and Coating Control Operators 1 1 1 1 1 1 0 Machine Operators, Mineral and Metal Processing 1 1 1 1 1 1 0 Foundry Workers 0 0 0 0 0 0 0 Glass Forming and Finishing Machine Operators and Glass Cutters 1 1 1 2 2 2 1 Concrete, Clay and Stone Forming Operators 1 1 1 1 1 2 1 Inspectors and Testers, Mineral and Metal Processing 0 0 0 0 0 0 0 Metalworking and Forging Machine Operators 1 1 1 1 1 1 0 Machining Tool Operators 0 0 0 0 0 0 0 Other Metal Products Machine Operators 1 1 1 1 1 1 0 Chemical Plant Machine Operators 1 1 1 1 1 1 0 Plastics Processing Machine Operators 2 2 2 2 2 2 0 Rubber Processing Machine Operators and Related Workers 0 0 0 0 0 1 1 Sawmill Machine Operators 1 1 1 1 1 1 0 Pulp Mill Machine Operators 0 0 0 0 0 0 0 Papermaking and Finishing Machine Operators 0 0 0 0 0 0 0 Other Wood Processing Machine Operators 0 0 0 0 0 0 0 Paper Converting Machine Operators 1 1 1 1 1 1 0 Lumber Graders and Other Wood Processing Inspectors and Graders 0 0 0 0 0 0 0 Woodworking Machine Operators 0 0 0 0 0 0 0 Textile Fibre and Yarn, Hide and Pelt Processing Machine Operators 1 1 1 1 1 1 0 Weavers, Knitters and Other Fabric Making Occupations 1 1 1 1 1 1 0 Fabric, Fur and Leather Cutters 1 1 1 1 1 1 0 Industrial Sewing Machine Operators 4 4 4 4 4 4 0 Inspectors and Graders, Textile, Fabric, Fur, Leather Products Manuf. 0 0 0 0 0 0 0

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Occupation Net ‘16 ‘18 ‘20 ‘22 ‘24 ‘26 16-26 Process Control and Machine Operators, Food and Beverage 4 4 4 5 5 5 1 Industrial Butchers at Cutters, Poultry Preparers and Related Workers 1 1 1 1 1 1 0 Fish and Seafood Plant Workers 0 0 0 0 0 0 0 Testers and Graders, Food and Beverage Processing 1 1 1 1 1 1 0 Plateless Printing Equipment Operators 2 2 2 2 2 2 0 Camera, Platemaking and Other Prepress Occupations 0 0 0 0 0 0 0 Binding and Finishing Machine Operators 1 1 1 1 1 1 0 Photographic and Film Processors 2 2 2 2 2 2 0 Aircraft Assemblers and Aircraft Assembly Inspectors 0 0 0 0 0 0 0 Motor Vehicle Assemblers, Inspectors and Testers 1 1 1 1 1 1 0 Electronics Assemblers, Fabricators, Inspectors and Testers 1 1 1 1 1 1 0 Assemblers and Inspectors, Electrical Appliance, Apparatus and Equip. 2 2 2 2 2 2 0 Assemblers, Fabricators, Inspectors, Electrical Motors & Transformers 0 0 0 0 0 0 0 Mechanical Assemblers and Inspectors 1 1 1 1 1 1 0 Machine Operators and Inspectors, Electrical Apparatus 0 0 0 0 0 0 0 Boat Assemblers and Inspectors 0 0 0 0 0 0 0 Furniture and Fixture Assemblers and Inspectors 1 1 1 1 1 1 0 Other Wood Products Assemblers and Inspectors 1 1 1 1 1 1 0 Furniture Finishers and Refinishers 1 1 1 1 1 1 0 Plastic Products Assemblers, Finishers and Inspectors 1 1 1 1 1 1 0 Industrial Painters, Coaters and Metal Finishing Process Operators 2 2 2 2 2 2 0 Other Products Assemblers, Finishers and Inspectors 6 6 6 7 7 7 1 Labourers in Mineral and Metal Processing 1 1 1 1 1 1 0 Labourers in Metal Fabrication 1 1 1 1 1 1 0 Labourers in Chemical Products Processing and Utilities 1 1 1 1 1 1 0 Labourers in Wood, Pulp and Paper Processing 1 1 1 1 1 1 0 Labourers in Rubber and Plastic Products Manufacturing 1 1 1 1 1 1 0 Labourers in Textile Processing 0 0 0 0 0 0 0 Labourers in Food and Beverage Processing 13 14 14 15 16 17 4 Labourers in Fish and Seafood Processing 0 0 0 0 0 0 0 Other Labourers in Processing, Manufacturing and Utilities 11 11 12 12 12 13 2 Total Manufacturing Occupation Projections 99 102 103 107 110 114 15 Source: metroeconomics, Okotoks Employment Projections by Occupation. Adapted by MDB Insight Inc.

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1.2.3 Wages/Salary Data

Manufacturing workers in the Calgary Economic Region (ER), which includes Okotoks, typically make a median hourly wage between $18.00 and $39.42 (depending on the position)2. The average manufacturing median wage in the Calgary ER is $23.69, which is slower than the Alberta average ($24.35) and higher than the Canadian average ($20.90).

Below are the most current wage estimates for manufacturing professionals in the Calgary ER, Alberta, and Canada using the Government of Canada’s Wage Report:

Figure 8: Median Hourly Wages for Manufacturing Occupations Occupation Calgary Alberta Canada

Manufacturing Managers $43.27 $43.27 $38.46 Supervisors, Mineral and Metal Processing $32.88 $34.05 $26.50 Supervisors, Petroleum, Gas and Chemical Processing and Utilities $35.00 $35.00 $31.00 Supervisors, Food and Beverage Processing $25.32 $25.32 $22.50 Supervisors, Plastic and Rubber Products Manufacturing $29.36 $26.00 $22.85 Supervisors, Forest Products Processing $37.68 $37.68 $27.40 Supervisors, Textile, Fabric, Fur and Leather Products Processing N/A N/A $18.25 Supervisors, Motor Vehicle Assembling N/A N/A $30.25 Supervisors, Electronics Manufacturing $26.50 $28.19 $30.77 Supervisors, Electrical Products Manufacturing N/A N/A $27.50 Supervisors, Furniture and Fixtures Manufacturing N/A N/A $20.19 Supervisors, Other Mechanical and Metal Products Manufacturing N/A $36.00 $27.95 Supervisors, Other Products Manufacturing and Assembly N/A $30.36 $23.08 Central Control and Process Operators, Mineral and Metal N/A $38.70 $27.50 Central Control and Process Operators, Petroleum, Gas and Chemical $39.42 $39.42 $37.00 Pulping, Papermaking and Coating Control Operators N/A N/A $36.06 Machine Operators, Mineral and Metal Processing $27.84 $43.00 $33.65 Foundry Workers N/A $24.10 $20.89 Glass Forming and Finishing Machine Operators and Glass Cutters $19.51 $19.51 $16.15 Concrete, Clay and Stone Forming Operators $24.25 $26.00 $22.00 Inspectors and Testers, Mineral and Metal Processing N/A $27.00 $22.79 Metalworking and Forging Machine Operators $26.57 $25.38 $19.00 Machining Tool Operators $25.00 $25.00 $21.00 Other Metal Products Machine Operators $20.19 $21.56 $17.54 Chemical Plant Machine Operators $29.07 $27.89 $20.00 Plastics Processing Machine Operators $19.50 $19.50 $17.65 Rubber Processing Machine Operators and Related Workers $19.85 $21.50 $20.00 Sawmill Machine Operators $26.60 $26.60 $24.04

2 Outliers have been removed.

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Occupation Calgary Alberta Canada

Pulp Mill Machine Operators N/A N/A $30.00 Papermaking and Finishing Machine Operators N/A N/A $25.00 Other Wood Processing Machine Operators N/A $31.25 $22.50 Paper Converting Machine Operators $28.07 $27.39 $20.00 Lumber Graders and Other Wood Processing Inspectors and Graders N/A $25.00 $21.00 Woodworking Machine Operators $18.28 $19.58 $17.00 Textile Fibre and Yarn, Hide and Pelt Processing Machine Operators N/A $19.88 $15.94 Weavers, Knitters and Other Fabric Making Occupations $15.63 $15.63 $15.00 Fabric, Fur and Leather Cutters N/A $16.12 $14.75 Industrial Sewing Machine Operators $16.75 $16.75 $13.00 Inspectors and Graders, Textile, Fabric, Fur and Leather Products Manuf. N/A $14.53 $12.00 Process Control and Machine Operators, Food and Beverage Processing $20.33 $20.33 $17.98 Industrial Butchers at Cutters, Poultry Preparers and Related Workers $20.00 $20.00 $18.30 Fish and Seafood Plant Workers N/A N/A $13.56 Testers and Graders, Food and Beverage Processing N/A $20.45 $20.00 Plateless Printing Equipment Operators $20.00 $20.00 $18.00 Camera, Platemaking and Other Prepress Occupations $26.00 $26.00 $25.00 Binding and Finishing Machine Operators $20.00 $20.00 $17.00 Photographic and Film Processors N/A $15.00 $14.25 Aircraft Assemblers and Aircraft Assembly Inspectors N/A N/A $29.74 Motor Vehicle Assemblers, Inspectors and Testers N/A $25.48 $25.00 Electronics Assemblers, Fabricators, Inspectors and Testers $20.49 $20.00 $17.00 Assemblers and Inspectors, Electrical Appliance, Apparatus and Equip. $18.00 $19.30 $17.50 Assemblers, Fabricators, Inspectors, Electrical Motors and Transformers $20.00 $21.50 $17.00 Mechanical Assemblers and Inspectors $23.00 $22.50 $21.80 Machine Operators and Inspectors, Electrical Apparatus Manufacturing $17.58 $19.99 $20.52 Boat Assemblers and Inspectors N/A N/A $17.00 Furniture and Fixture Assemblers and Inspectors $20.08 $20.00 $16.00 Other Wood Products Assemblers and Inspectors $20.50 $19.83 $16.70 Furniture Finishers and Refinishers $19.00 $20.00 $17.00 Plastic Products Assemblers, Finishers and Inspectors $20.27 $20.27 $16.00 Industrial Painters, Coaters and Metal Finishing Process Operators $24.72 $26.50 $20.23 Other Products Assemblers, Finishers and Inspectors $20.00 $20.00 $15.55 Labourers in Mineral and Metal Processing $20.48 $23.50 $21.00 Labourers in Metal Fabrication $21.00 $21.00 $17.00 Labourers in Chemical Products Processing and Utilities $22.87 $23.70 $18.00 Labourers in Wood, Pulp and Paper Processing $25.61 $25.61 $18.36 Labourers in Rubber and Plastic Products Manufacturing N/A $18.00 $15.50 Labourers in Textile Processing N/A N/A $12.00

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Occupation Calgary Alberta Canada

Labourers in Food and Beverage Processing $18.00 $18.00 $15.00 Labourers in Fish and Seafood Processing N/A N/A $13.65 Other Labourers in Processing, Manufacturing and Utilities $18.00 $18.00 $13.00 Source: Economic and Social Development Canada, Wage Report, Sept 2017

1.2.4 Education and Training

Okotoks has approximately 3,195 people (11.1% of the Town’s total population) educated in manufacturing-related fields. Combined, Okotoks and the Calgary CMA have 35.2 per cent of the people educated in manufacturing-related skills in the province.

Figure 9: Major Field of Study (Number of People, 2016) Major Field of Study Okotoks + Calgary/ Okotoks Calgary CMA Alberta Alberta % Architecture & Related Services 75 5,750 11,330 51.4% Engineering & Engineering Technologies 1,265 93,160 195,150 48.4% Construction Trades 935 26,090 100,370 26.9% Mechanical and Repair Technologies 635 23,330 103,880 23.1% Precision Production 285 11,375 52,405 22.2% Total with Manufacturing-Related Education 3,195 159,705 463,135 35.2% Source: Statistics Canada, Table 98-400-X2016285, 2016

1.3 Local Industry 1.3.1 Business Establishment Counts

According to the Canadian Business Counts, there were 80 manufacturing businesses registered in Okotoks as of December 2017.

Approximately 62.5 per cent of businesses in the Town’s manufacturing sector are sole-proprietors (without employees), and the other 37.5 per cent of businesses employ at least 1-4 people.

The majority of firms are found within the sub-sectors of machinery manufacturing (13 businesses), miscellaneous manufacturing (10 businesses), and printing and related support activities (10 businesses).

Figure 10: Manufacturing Sector Business Establishments Count in Okotoks Without Total with Industry (NAICS) 1-4 5-9 10-19 20-49 50-99 100+ Employees Employees NAICS 311: Food 5 3 0 0 1 2 0 0 NAICS 312: Beverage and Tobacco Product 0 0 0 0 0 0 0 0 NAICS 313: Textile Mills 0 0 0 0 0 0 0 0 NAICS 314: Textile Product Mills 1 0 0 0 0 0 0 0

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NAICS 315: Clothing 4 0 0 0 0 0 0 0 NAICS 316: Leather and Allied Product 2 1 1 0 0 0 0 0 NAICS 321: Wood Product 1 1 1 0 0 0 0 0 NAICS 322: Paper 0 0 0 0 0 0 0 0 NAICS 323: Printing and Related Support 7 3 3 0 0 0 0 0 Activities NAICS 324: Petroleum and Coal Products 0 0 0 0 0 0 0 0 NAICS 325: Chemicals 0 2 0 2 0 0 0 0 NAICS 326: Plastics and Rubber Products 0 1 0 0 1 0 0 0 NAICS 327: Non-Metallic Mineral Product 0 3 1 1 1 0 0 0 NAICS 331: Primary Metal 0 1 1 0 0 0 0 0 NAICS 332: Fabricated Metal Product 5 3 1 2 0 0 0 0 NAICS 333: Machinery 8 5 2 3 0 0 0 0 NAICS 334: Computer and Electronic Product 1 2 2 0 0 0 0 0 NAICS 335: Electrical Equipment, Appliance, 0 0 0 0 0 0 0 0 and Component NAICS 336: Transportation Equipment 2 0 0 0 0 0 0 0 NAICS 337: Furniture and Related Product 6 3 2 1 0 0 0 0 NAICS 339: Miscellaneous 8 2 2 0 0 0 0 0 Manufacturing Total 50 30 16 9 3 2 0 0 Source: Statistics Canada, Canadian Business Patterns Survey, December 2017. Adapted by MDB Insight Inc.

1.3.2 Business by Business License Figures According to data derived from the number of business licenses provided by the Town of Okotoks (Figure 11), 28 of these businesses can be classified within the manufacturing sector; this represents around 1% of licensed businesses. This number does not include manufacturing businesses captured in other sectors such as food and beverage manufacturing and computers manufacturing among others.

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Figure 11: Business Licenses by Industry Sectors. Okotoks

Others 164 Retail 136 28 Professional, Scientific, and Technical 43 Services 39 Information, Culture, Communications, & 1523 Technology Manufacturing* 11 Food & Beverage Manufacturing and Agriculture Services

*excluding manufacturing industries related to ICCT, PSTS and food and beverage production

Source: Business License Figures. Town of Okotoks.

1.3.3 Business Establishment Location Quotients

Figure 12 showcases the location quotients (LQ) for Okotoks in 2016. The LQs measure the concentration of manufacturing businesses in Okotoks relative to the Calgary CMA and Alberta.

When compared to the Calgary CMA and Alberta, Okotoks has a high concentration of businesses that manufacture leather products, clothing, furniture, printing, machinery, primary metal, food and textile.

On average, Okotoks has a high concentration of its businesses working in manufacturing compared to the Calgary CMA and the province as a whole.

Figure 12: Manufacturing Business Establishments Location Quotients – Okotoks vs Calgary CMA & Alberta Okotoks / Calgary CMA Okotoks / Alberta Industry (NAICS) LQ Classification LQ Classification

Manufacturing LQ Average 1.40 High 1.37 High NAICS 311: Food 1.58 High 1.35 High NAICS 312: Beverage and Tobacco Product 0.00 Low 0.00 Low NAICS 313: Textile Mills 0.00 Low 0.00 Low NAICS 314: Textile Product Mills 1.34 High 1.30 High NAICS 315: Clothing 2.84 High 3.43 High NAICS 316: Leather and Allied Product 8.74 High 7.90 High NAICS 321: Wood Product 0.63 Low 0.55 Low NAICS 322: Paper 0.00 Low 0.00 Low NAICS 323: Printing and Related Support Activities 1.91 High 2.30 High NAICS 324: Petroleum and Coal Products 0.00 Low 0.00 Low

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NAICS 325: Chemicals 0.80 Average 0.73 Low NAICS 326: Plastics and Rubber Products 0.62 Low 0.51 Low NAICS 327: Non-Metallic Mineral Product 1.34 High 1.14 Average NAICS 331: Primary Metal 1.64 High 1.40 High NAICS 332: Fabricated Metal Product 0.87 Average 0.61 Low NAICS 333: Machinery 1.79 High 1.52 High NAICS 334: Computer and Electronic Product 1.12 Average 1.44 High NAICS 335: Electrical Equipment, Appliance, and Component 0.00 Low 0.00 Low NAICS 336: Transportation Equipment 1.17 Average 1.15 Average NAICS 337: Furniture and Related Product 2.06 High 2.31 High NAICS 339: Miscellaneous 0.99 Average 1.06 Average Source: Statistics Canada, Canadian Business Patterns Survey, December 2017. Adapted by MDB Insight Inc.

1.3.4 Financial Profile of Businesses

The data from 6,065 Alberta manufacturing businesses, with revenues ranging from $30,000 to $5 million, was collected through Statistics Canada’s Small Business Profiles program to showcase average earnings and costs to businesses. Select financial performance data is outlined below, with a breakdown of operating expenses into major areas of interest.

On average, Alberta manufacturing businesses spend 19 per cent on labour; 9 per cent on taxes, licences, office and travel expenses; 6 per cent on rent; and 2 per cent on utilities and telecommunications.

Figure 13: Financial Performance Data for Alberta Manufacturing Businesses 2016 Major Field of Study Whole Bottom Lower Upper Top Industry Quartile Middle Middle Quartile Total Revenue ($000) $638.5 $57.7 $153.6 $431.0 $1,911.5 Labour & Commissions $123.1 $11.1 $31.1 $103.3 $346.9 Taxes, Licenses, Office & Travel Expenses $58.7 $11.9 $22.8 $48.6 $151.6 Rent $37.5 $4.8 $11.1 $31.4 $102.8 Utilities & Telecommunications $13.1 $2.6 $5.3 $10.4 $34.3 Other Expenses3 $416.3 $27.6 $63.3 $239.4 $1,334.4 Total Expenses ($000) $648.7 $58.0 $133.6 $433.1 $1,970.0 Net Profit/Loss ($000) -$10.2 -$0.3 $20.0 -$2.2 -$58.5 Source: Statistics Canada, Small Business Profiles, 2016. Adapted by MDB Insight Inc.

3 Includes expenses such as amortization and depletion; repairs and maintenance; interest and bank charges; professional and business fees; advertising and promotion; and delivery shipping, and warehousing.

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1.3.5 Major Employers

Major manufacturing employers within Okotoks and the Calgary CMA are listed in Figures 14 and 15. Note these lists are not exhaustive and the employment numbers may be estimates in some cases.

Some of the most common sub-sectors of major manufacturing employers in Okotoks include: metal products, food manufacturing, and wood manufacturing.

Figure 14: Major Employers in Okotoks Manufacturing Sector Company Number of Manufacturing Sub-Sector Employees Altrek Industries Ltd. 30 Non-Metallic Mineral Product Manufacturing Rolco Rollshutters Inc. 20 Fabricated Metal Products Manufacturing Burnco Rock Products Ltd. 15 Cement and Concrete Product Manufacturing Tim Hortons 15 Food Manufacturing Sibro Technologies Ltd. 12 Fabricated Metal Products Manufacturing Cobbs Bread 12 Food Manufacturing McLean Contracting 11 Fabricated Metal Products Manufacturing Spring Creek Woodworking 10 Wood Product Manufacturing Taylor Toolworks Ltd. 7 Machinery and Equipment Manufacturing Western Tank & Lining Ltd. 6 Fabricated Metal Products Manufacturing Alberta Stairworks 6 Wood Product Manufacturing Cycle Works Foothills Ltd. 6 Motor Vehicle Parts Manufacturing McAsphalt Industries Ltd. 6 Petroleum Product Manufacturing Source: Hoovers, 2018 Some of the most common sub-sectors of major manufacturing employers in the Calgary CMA include: petroleum product manufacturing, food manufacturing, and metal products manufacturing.

Figure 15: Major Employers in Calgary Manufacturing Sector Company Number of Manufacturing Sub-Sector Employees Foremost Universale LP 1,300 Machinery & Equipment Manufacturing Imperial Oil Ltd. 700 Petroleum Product Manufacturing Centennial 2000 Inc. 645 Food Manufacturing Suncor Energy Inc. 621 Petroleum Product Manufacturing SMART Technologies ULC 600 Semiconductor & Electronic Component Manufacturing Gienow Windows & Doors Inc. 600 Wood Product Manufacturing Sobeys West Inc. 550 Food Manufacturing Standen’s Management Inc. 501 Motor Vehicle Parts Manufacturing Evraz Inc. NA Canada 500 Metal Products Manufacturing CM: International Inc. 500 Clothing & Apparel Manufacturing Canexus Ltd. 500 Basic Chemical Manufacturing Adaptive Engineering Inc. 500 Miscellaneous Manufacturing Source: Hoovers, 2018

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1.4 Trade (Exports & Imports) In 2017, Alberta exported approximately $27.6 billion dollars in total manufactured products. The USA, China, Japan, Mexico, and South Korea were the top five destination markets, with the USA representing the majority share – approximately 70 per cent. Top manufacturing exports include: resin and synthetic rubber products; petrochemical products; and meat products.

Figure 16: Alberta Manufacturing Exports Value and Y-O-Y Growth (Billions CAD) 2013 2014 2015 2016 2017 $23.7 $26.5 $25.6 $23.7 $27.6 11.7% -3.4% -7.4% 16.5% Source: Statistics Canada, Trade Data Online, 2017

In 2017, Alberta imported approximately $26.0 billion dollars in total manufactured products. The USA, China, Mexico, Germany, and Italy were the top five source markets, with the USA representing the majority share – approximately 65 per cent. Top manufacturing imports include: petrochemical products; aerospace product and parts; fabricated metal products and parts; and navigational, measuring, medical and control instrument products.

Figure 17: Alberta Manufacturing Import Value and Y-O-Y Growth (Billions CAD) 2013 2014 2015 2016 2017 $26.5 $30.0 $26.6 $23.1 $26.0 13.2% -11.3% -13.2% 12.6% Source: Statistics Canada, Trade Data Online, 2017

1.5 Sector Trends & Outlook 1.5.1 Manufacturing Trends Three major trends that are dominating the manufacturing sector worldwide include:

Robotics & Automation: The use of robotics and automated systems in the manufacturing sector is nothing new, in fact, RBC Economics reports that manufacturing productivity growth in Canada has averaged 2.8 per cent a year since 1961 – meaning fewer workers are needed to produce the same or greater output, primarily thanks to the adoption of automation.4 With skilled labour shortages being one the greatest challenges facing the sector, the integration of automation and robotics in manufacturing processes will need to grow for manufacturing companies to maintain their competitiveness in the global market.

Internet of Things (IoT) and Data Integration: To put simply, the Internet of Things (IoT) combines the idea of internet connectivity with physical devices, whether they be traditionally connective devices, such as computers and cellphones, or non-traditional devices, such as thermostats, toasters and washing machines. From a manufacturing perspective, IoT technology allows workers to monitor the performance

4 RBC Economics. (February 2017). The Decline in Manufacturing’s Share of Total Canadian Output — A Source of Concern? Source: http://www.rbc.com/economics/economic-reports/pdf/other-reports/Manufacturing%20Trends-Feb2017.pdf

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of operations and processes. IoT devices used to track manufacturing operations can not only showcase efficiency in real time, but also have the potential for predictive analytics – the ability to use captured data to predict potential mechanical failures and maintenance needs. The use of these devices will continue to grow as they provide manufacturers the ability to processes to increase productivity, reduce costs, and even improve safety.

Additive Printing & Rapid Prototyping: Additive printing, more commonly known as 3D printing, has been growing in its potential to serve the manufacturing industry. The idea of using additive printing for rapid prototyping (quick fabrication of a scale model to test concept) has allowed manufacturers to reduce the time and cost it takes to test and troubleshoot parts prior to manufacturing them. Additive printing is also being used to create molds, jigs, and fixtures, reducing the time and cost associated with tooling as well. It has potential in manufacturing across all sub-sectors, but has already proven itself vital in automotive, aerospace, and medical device manufacturing application.

1.5.2 Alberta Manufacturing Outlook Major challenges face businesses in Alberta’s manufacturing sector, including barriers to diversification away from energy-related manufacturing, lack of competitiveness, and difficulties with scaling and exporting. These are just a few of the barriers listed by the Alberta Chambers of Commerce in their Strengthening Manufacturing in Alberta and Canada report. 5

One key policy the Government of Alberta has put in place recently to assist businesses in the manufacturing sector is the Alberta Export Expansion Package (including the Export Support Fund), which aims to increase the number of Alberta companies actively seeking export opportunities and expand the awareness of Alberta’s SME community in export-oriented activities. In addition, the Government of Alberta is implementing smaller funding initiatives to promote diversification for the province and help SMEs thrive (ex. Craft Brewery Grant).

Areas of manufacturing innovation and diversification the Government of Alberta is currently pursing through investment and incentives include petrochemical manufacturing, food manufacturing, biomaterials/ bio-composites manufacturing, and alternative energy development.

1.5.3 Canada Manufacturing Outlook Overall the growth of Canada’s manufacturing sector will depend on two major areas: (1) its ability to innovative and improve efficiency to compete with a global market and (2) the county’s ability to maintain and increase trade relations across the globe.

Unfortunately, both areas are under major threat to both the country and the province.

KPMG reports the majority of Canadian manufacturing companies spent three per cent or less of their revenue on R&D and innovation – trailing their global counterparts.6 In response to Canada’s low rates of

5 Alberta Chambers of Commerce. (2016). Strengthening Manufacturing in Alberta and Canada. Source: http://www.ourcommons.ca/Content/Committee/421/INDU/Brief/BR8338846/br-external/AlbertaChambersOfCommerce-e.pdf 6 KPMG. (2016). Canadian Manufacturing Outlook 2016.

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R&D and innovation, the Government of Canada announced its Innovation and Skills Plan in their 2017 Budget. Their plan includes providing businesses innovation-specific programming and grants (the Strategic Innovation Fund); supercluster funding and development; increasing venture capital for innovation through the Business Development Bank of Canada; and specific investments to clean technology development and innovation. 7

The success of Canada’s manufacturing sector is also highly attached to trade – and with the current geopolitical landscape growing increasingly nationalistic and territorial, Canadian manufacturing businesses are facing some of the highest levels of uncertainty and risk over the next few years. In response to new tariffs placed on aluminum and steel by the USA, the Government of Canada has allocated $250 million from the Strategic Innovation Fund to minimize the losses to Canadian manufacturers and to bolster their competitiveness. Moves by the federal government to alleviate uncertainty in trade include exploring new and increased trade agreements with other nations. However, with the USA being Canada’s largest export market for manufacturing (accounting for 80% of Canada’s total manufacturing exports), the ongoing trade dispute between the USA and Canada has the potential to put the sector and country into recession.

Source: https://assets.kpmg.com/content/dam/kpmg/ca/pdf/2016/09/ca-canadian-manufacturing-outlook-2016.pdf 7 Government of Canada. (2017). Budget 2017: Canada’s Innovation and Skills Plan Source: https://www.budget.gc.ca/2017/docs/themes/innovation-en.html

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2. The Okotoks Advantage 2.1 Core Clusters Although Okotoks has a small manufacturing base when compared to Calgary, there are some preliminary signs about what potential exists for growth and clustering of manufacturing businesses given its proximity to Calgary and major transportation infrastructure. 785 residents of Okotoks are employed in the manufacturing sector, with the majority of these workers employed in Calgary and other areas surrounding Okotoks and 160 employed locally. Potentially competitive manufacturing sub- sectors for Okotoks have been outlined: Food Manufacturing: This sub-sector shows as a strong long term potential manufacturing cluster for Okotoks through high employment and business count LQs as well as promising employment projections. Food manufacturing is booming across Alberta, with much of its advantage coming from the abundant, local agriculture feedstock, which supplies many businesses with cost-effective ingredients. In addition, unique food-related facilities and incubators within the province, as well as growing support for the sub-sector through government grants and programs, give entrepreneurs their footing in the industry to help them launch their products, locally, nationally, and internationally. The agri-business sector, which includes food manufacturing, is the focal point of a separate profile for Okotoks, however, it bears repeating that this specific sub-sector of manufacturing has the potential to be a strong contributor to Okotoks’s economy over the long term subject to the availability of serviced industrial land. Fabricated Metal Manufacturing: This sub-sector of manufacturing is one of the largest in Alberta, due to its vital importance in Alberta’s energy industry; the need for valves, tanks, containers, bolts, nuts, screws and other fabricated metal products is necessary for the oil and gas industry to function. However, fabricated metal manufacturing businesses in Okotoks are diverse in their offerings, with top employers in the community providing products that have application outside of the energy sector. This has the potential to create a cluster that can withstand the turbulence of Alberta’s energy sector. Okotoks Investment: Many modern advanced manufacturing facilities can be established with minimal physical infrastructure beyond power and fibre in small commercial or industrial locations making these sub-sectors short term investment opportunities. While the current limited inventory of available lands, ongoing planning with the annexation lands and water constraints do create barriers for some manufacturing, particularly those with high water usage (e.g. breweries), there are investment opportunities for the municipality over the long-term. The key investments Okotoks will need to make are in the development and promotion of serviced industrial and commercial land and buildings with a wide variety of permitted uses.

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2.2 Local & Regional Assets 2.2.1 Post-Secondary Institutions Institute of Technology (SAIT): SAIT offers students practical experience and theoretical knowledge through more than 100 programs in technology, trades, and business. Students benefit from hands-on learning in unique labs and classrooms, participation in applied research on campus with industry partners and, in many programs, workplace practicums that enable students to apply their learning to meet current industry needs.

The School of Manufacturing and Automation is one of eight industry-focused schools at SAIT. It provides skills-based training and development to prepare individuals for careers in oil and gas, transportation, manufacturing and automation. In recent years, the School has opened the Gene Haas Foundation Labs. These new project-based labs contain state-of-the-art computer-numerical-control (CNC) machining equipment – aiming to put SAIT’s training for manufacturing and automation at the forefront of Alberta.

Programs offered by the School of Manufacturing and Automation include welding engineering technology (diploma) and mechanical engineering technology (diploma) as well as several relevant apprenticeship programs such as industrial mechanic /millwright, ironworker, machinist, and welder.

University of Calgary: The University of Calgary, Alberta’s second largest post-secondary institution, provides high-quality education to more than 30,000 students annually and undertakes research that addresses society’s most persistent challenges. Through it’s 14 faculties, the University offers more than 250 academic programs and houses more than 50 research institutes and centres.

Residing within the University of Calgary, the Schulich School of Engineering is a leader in engineering education and research innovation. Their Department of Mechanical and Manufacturing Engineering is one of the most active research-focused mechanical engineering departments in Canada. It has 36 faculty members, 6 research chairs, over 200 graduate students and 500 undergraduate students.

Programs offered by the Department of Mechanical and Manufacturing Engineering include a Bachelor of Science in Mechanical Engineering with minor options in manufacturing engineering, mechatronics engineering, petroleum engineering, and entrepreneurship and enterprise development.

2.2.2 Research Areas & Facilities Research institutes and centres within Canada often exist within the academic realm. These groups aim to solve or understand world problems as well as further the skills of students who will one day apply the knowledge they’ve gained within their careers.

Specialized areas of research within the Department of Mechanical and Manufacturing Engineering at the University of Calgary include: applied mechanics; automation, control, and robotics; design and materials; manufacturing engineering; nano-MEMS; and thermo-fluids, energy systems and environment.

Activities within the scope of manufacturing engineering research include: system modeling, intelligent

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manufacturing systems, production planning and control, supply chain management, machinery and process diagnosis, process control systems analysis & design, reconfigurable and environment adaptable manufacturing systems, micro machining, and discrete-event systems.

The Department of Mechanical and Manufacturing Engineering also houses extensive and unique research laboratories and facilities. Facilities relevant to manufacturing include:

- Autonomous Reconfigurable Robotic Systems Laboratory - BOSE Biomaterials and Tissue Engineering Technology Development Centre - Corrosion Science and Electrochemical Technology Research Lab - Diffusion Bonding and Joining Laboratory - Microsystems Dynamics Laboratory (MDL) - Materials Testing Laboratory - Micro Engineering Dynamics and Automation Lab (MEDAL) - Nano/Micro-Sensors and Sensing System (NMSSS) Laboratory - Nanoscale Technology and Engineering Laboratory - Product Design and Realization Laboratory 2.2.3 Major Land & Infrastructure Okotoks Business Park: The Okotoks Business Park is a heavy industrial park located on the east side of Okotoks and borders primarily on N Railway Street, Don Seaman Way, and 32nd Street (a key transportation route). The Business Park has municipally serviced industrial lots for sale in its most recent expansion area.

Southbank Business Park: The Southbank Business District is bordered by high traffic Highway 7 to the south and Okotoks’ recently upgraded 32nd Street to the east. Southbank is within the Okotoks town limits and is in easy reach for to all Okotoks and surrounding community residents. They have fully serviced light industrial lots (1-4 acres) available for purchase as well as leasable light industrial space within a multi-unit building (2,000+ sq. ft units).

2.3 Market Position & Competitiveness In manufacturing, Okotoks faces major competition from its larger, neighbouring communities. Although it cannot compete with Calgary or Airdrie in size and location (being closer to the international airport and routes to northern Alberta), it can compete in areas of quality of life, affordable living, and affordable business and land costs.

2.3.1 Strengths & Opportunities

Near Major City with Key Assets & Attraction Potential: Although being on the outskirts of a major city can have its downfalls (i.e. - bedroom community status) it also creates opportunity. The Calgary CMA is home to key post-secondary and research assets that are beneficial to creating a highly-skilled workforce. In addition, there is potential for Okotoks to attract businesses who are looking to leave or expand from the Calgary CMA, something the Town has already benefited from with companies like Mullen Group.

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Quality of Life & Affordable Living: Many choose to live in Okotoks due to the quality of life the town offers them in terms of family-sized housing affordability as well as the benefits that come from living in a mid-sized urban center vs a major city. These benefits include having all necessary amenities close-by, being more family-oriented in its amenities and activities, being closer to the outdoors, and typically having a stronger-knit community vibe. According to the 2016 Census, the average dwelling value in Okotoks was $472,200, approximately $55,000 less than the average dwelling value in the Calgary CMA.

Regional Hub for Surrounding Communities: In addition to its residents, the Town of Okotoks serves over 250,000 people from surrounding smaller towns and rural areas, providing a strong customer base for businesses choosing to locate in Okotoks.

Lower Business Costs than Calgary CMA (Land & Tax): Okotoks has some of the lowest non-residential tax rates in the Calgary Region and does not charge a business tax for the majority of businesses, allowing them to operate in an affordable environment while being located in a sustainable community. In addition, industrial land is much more affordable in Okotoks with a $499,000 per acre cost at Southbank Business Park vs the average industrial land cost in the Calgary CMA ranging from $600,000 to $790,000 an acre.8

Potential for Industrial Land Capacity to Grow with Development of Highway 2A Industrial Corridor: Following the results of the AFICA Report, the industrial development potential for the approximately 8,5450 acres of land between the Town of Okotoks and the Town of along Highways 2A and the 7 could provide strong population and employment growth for Okotoks in the manufacturing sector.

2.3.2 Weaknesses

Workforce Retention: According to the 2016 Census, approximately 6,910 residents leave Okotoks for work, with the vast majority working in Calgary. This includes around 80 per cent of the Town’s total manufacturing employed workforce. Okotoks is a desirable place to live with a reasonable commute to Calgary; however, this outflow of people can have a significant impact on local businesses and the vibrancy of the community. Thus, the focus needs to be on attracting businesses, growing local businesses, and encouraging potential entrepreneurs.

8 City of Calgary. Calgary Commercial and Industrial Properties. Source: http://www.calgary.ca/CS/realestate/Pages/search.aspx

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3. Appendix (Definitions) 3.1 Geography Okotoks Census Subdivision (CSD): Census Subdivision is the general term for municipalities (as determined by provincial/territorial legislation) or areas treated as municipal equivalents for statistical purposes. The Okotoks CSD includes the Town of Okotoks.

Calgary Census Metropolitan Area (CMA): A census metropolitan area (CMA) is formed by one or more adjacent municipalities centred on a population centre (known as the core). A CMA must have a total population of at least 100,000 of which 50,000 or more must live in the core. To be included in the CMA other adjacent municipalities must have a high degree of integration with the core, as measured by commuting flows derived from previous census place of work data. The Calgary CMA includes the following CSDs: , Calgary, , Cochrane, Airdrie, , , Crossfield, and Tsuu T’ina Nation 145 (Sarcee 145).

Calgary Economic Region: An economic region (ER) is a grouping of complete census divisions (CDs) (with one exception in Ontario) created as a standard geographic unit for analysis of regional economic activity. The Calgary Economic Region corresponds to Division No. 6 (CD), which includes the following CSDs: Foothills No. 31, High River, Longview, , Black Diamond, Okotoks, Rocky View County, Calgary, Chestermere, Cochrane, Airdrie, Irricana, Beiseker, Crossfield, , Carstairs, Cremona, Didsbury, Olds, , Eden Valley 216, and Tsuu T’ina Nation 145 (Sarcee 145).

3.2 NAICS Codes in this Report Manufacturing ▪ NAICS 311: Food Manufacturing ▪ NAICS 312: Beverage and Tobacco Product Manufacturing ▪ NAICS 313: Textile Mills ▪ NAICS 314: Textile Product Mills ▪ NAICS 315: Clothing Manufacturing ▪ NAICS 316: Leather and Allied Product Manufacturing ▪ NAICS 321: Wood Product Manufacturing ▪ NAICS 322: Paper Manufacturing ▪ NAICS 323: Printing and Related Support Activities ▪ NAICS 324: Petroleum and Coal Products Manufacturing ▪ NAICS 325: Chemical Manufacturing ▪ NAICS 326: Plastics and Rubber Products Manufacturing ▪ NAICS 327: Non-Metallic Mineral Product Manufacturing ▪ NAICS 331: Primary Metal Manufacturing ▪ NAICS 332: Fabricated Metal Product Manufacturing ▪ NAICS 333: Machinery Manufacturing ▪ NAICS 334: Computer and Electronic Product Manufacturing ▪ NAICS 335: Electrical Equipment, Appliance, and Component Manufacturing ▪ NAICS 336: Transportation Equipment Manufacturing ▪ NAICS 337: Furniture and Related Product Manufacturing ▪ NAICS 339: Miscellaneous Manufacturing

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3.3 NOC Codes in this Report

▪ NOC 0911: Manufacturing Managers ▪ NOC 9211: Supervisors, Mineral and Metal Processing ▪ NOC 9212: Supervisors, Petroleum, Gas and Chemical Processing and Utilities ▪ NOC 9213: Supervisors, Food and Beverage Processing ▪ NOC 9214: Supervisors, Plastic and Rubber Products Manufacturing ▪ NOC 9215: Supervisors, Forest Products Processing ▪ NOC 9217: Supervisors, Textile, Fabric, Fur and Leather Products Processing and Manufacturing ▪ NOC 9221: Supervisors, Motor Vehicle Assembling ▪ NOC 9222: Supervisors, Electronics Manufacturing ▪ NOC 9223: Supervisors, Electrical Products Manufacturing ▪ NOC 9224: Supervisors, Furniture and Fixtures Manufacturing ▪ NOC 9226: Supervisors, Other Mechanical and Metal Products Manufacturing ▪ NOC 9227: Supervisors, Other Products Manufacturing and Assembly ▪ NOC 9231: Central Control and Process Operators, Mineral and Metal Processing ▪ NOC 9232: Central Control and Process Operators, Petroleum, Gas and Chemical Processing ▪ NOC 9235: Pulping, Papermaking and Coating Control Operators ▪ NOC 9411: Machine Operators, Mineral and Metal Processing ▪ NOC 9412: Foundry Workers ▪ NOC 9413: Glass Forming and Finishing Machine Operators and Glass Cutters ▪ NOC 9414: Concrete, Clay and Stone Forming Operators ▪ NOC 9415: Inspectors and Testers, Mineral and Metal Processing ▪ NOC 9416: Metalworking and Forging Machine Operators ▪ NOC 9417: Machining Tool Operators ▪ NOC 9418: Other Metal Products Machine Operators ▪ NOC 9421: Chemical Plant Machine Operators ▪ NOC 9422: Plastics Processing Machine Operators ▪ NOC 9423: Rubber Processing Machine Operators and Related Workers ▪ NOC 9431: Sawmill Machine Operators ▪ NOC 9432: Pulp Mill Machine Operators ▪ NOC 9433: Papermaking and Finishing Machine Operators ▪ NOC 9434: Other Wood Processing Machine Operators ▪ NOC 9435: Paper Converting Machine Operators ▪ NOC 9436: Lumber Graders and Other Wood Processing Inspectors and Graders ▪ NOC 9437: Woodworking Machine Operators ▪ NOC 9441: Textile Fibre and Yarn, Hide and Pelt Processing Machine Operators and Workers ▪ NOC 9442: Weavers, Knitters and Other Fabric Making Occupations ▪ NOC 9445: Fabric, Fur and Leather Cutters ▪ NOC 9446: Industrial Sewing Machine Operators ▪ NOC 9447: Inspectors and Graders, Textile, Fabric, Fur and Leather Products Manufacturing ▪ NOC 9461: Process Control and Machine Operators, Food and Beverage Processing ▪ NOC 9462: Industrial Butchers and Meat Cutters, Poultry Preparers and Related Workers ▪ NOC 9463: Fish and Seafood Plant Workers ▪ NOC 9465: Testers and Graders, Food and Beverage Processing ▪ NOC 9471: Plateless Printing Equipment Operators ▪ NOC 9472: Camera, Platemaking and Other Prepress Occupations ▪ NOC 9473: Binding and Finishing Machine Operators ▪ NOC 9474: Photographic and Film Processors ▪ NOC 9521: Aircraft Assemblers and Aircraft Assembly Inspectors ▪ NOC 9522: Motor Vehicle Assemblers, Inspectors and Testers ▪ NOC 9523: Electronics Assemblers, Fabricators, Inspectors and Testers ▪ NOC 9524: Assemblers and Inspectors, Electrical Appliance, Apparatus and Equipment Manufacturing ▪ NOC 9525: Assemblers, Fabricators and Inspectors, Industrial Electrical Motors and Transformers ▪ NOC 9526: Mechanical Assemblers and Inspectors

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▪ NOC 9527: Machine Operators and Inspectors, Electrical Apparatus Manufacturing ▪ NOC 9531: Boat Assemblers and Inspectors ▪ NOC 9532: Furniture and Fixture Assemblers and Inspectors ▪ NOC 9533: Other Wood Products Assemblers and Inspectors ▪ NOC 9534: Furniture Finishers and Refinishers ▪ NOC 9535: Plastic Products Assemblers, Finishers and Inspectors ▪ NOC 9536: Industrial Painters, Coaters and Metal Finishing Process Operators ▪ NOC 9537: Other Products Assemblers, Finishers and Inspectors ▪ NOC 9611: Labourers in Mineral and Metal Processing ▪ NOC 9612: Labourers in Metal Fabrication ▪ NOC 9613: Labourers in Chemical Products Processing and Utilities ▪ NOC 9614: Labourers in Wood, Pulp and Paper Processing ▪ NOC 9615: Labourers in Rubber and Plastic Products Manufacturing ▪ NOC 9616: Labourers in Textile Processing ▪ NOC 9617: Labourers in Food and Beverage Processing ▪ NOC 9618: Labourers in Fish and Seafood Processing ▪ NOC 9619: Other Labourers in Processing, Manufacturing and Utilities

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