Town of Food & Beverage Manufacturing and Agriculture Services November 2018

Okotoks: Food & Beverage Manufacturing and Agriculture Services Sector Analysis Page i

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 ...... 7 1.2.4 Education and Training...... 8 1.3 Local Businesses ...... 8 1.3.1 Business Establishment Counts ...... 8 1.3.2 Business Establishment Location Quotients ...... 10 1.3.3 Financial Profile of Businesses ...... 11 1.3.4 Major Employers ...... 12 1.4 Trade (Exports & Imports) ...... 13 1.5 Sector Trends & Outlook ...... 14 1.5.1 F&B Mfg. and Ag Services Trends ...... 14 1.5.2 F&B Mfg. and Ag Services Outlook ...... 15 1.5.3 F&B Mfg. and Ag Services Outlook ...... 15

2. The Okotoks Advantage ...... 17 2.1 Core Clusters ...... 17 2.2 Local & Regional Assets ...... 18 2.2.1 Post-Secondary Institutions ...... 18 2.2.2 Research Areas & Facilities ...... 19 2.2.3 Major Land & Infrastructure ...... 19 2.3 Market Position & Competitiveness ...... 19 2.3.1 Strengths & Opportunities ...... 19 2.3.2 Weaknesses ...... 20

3. Appendix ...... 21

Okotoks: Food & Beverage Manufacturing and Agriculture Services Sector Analysis Page ii

1. Sector Overview The food and beverage manufacturing and agriculture services (F&B Mfg. and Ag Services) sector comprises establishments from multiple industry groups, primarily engaged either producing food or beverages for human or animal consumption or support activities for the agriculture sector, such as seed- related services, fertilizer and pesticide manufacturing, veterinary services, etc.

Note this sector is made from a combination of different industry groups and industries and is not officially its own sector through the North American Industry Classification System (NAICS). Also note that due to limitations in the data, industries could not be delineated from their broader industry groups and therefore the broader industry group has been used in some instances. This will mean an overestimation of impact for those specific industries.

1.1 Sector Size & Performance

Canada’s food and beverage manufacturing and agriculture services (F&B Mfg. and Ag Services) sector contributed $55.9 billion to Canada’s overall GDP in 2017. According to , Alberta is the third largest output contributor to total F&B Mfg. & Ag Services GDP in Canada, with a contribution of $7.6 billion in 2017.

Figure 1: Gross Domestic Product for F&B Mfg. and Ag Services Sector by Province 2017 ($CAD Billions) ~† 25.0 $23.4

20.0

15.0 $11.0 10.0 $7.6 $6.6

5.0 $2.4 $2.2 $1.0 $0.9 $0.5 $0.3 0.0 ON QC AB BC SK MB NB NS NL PEI

Source: Statistics Canada GDP by NAICS at Basic Prices, Table 379-0030, 2018 ~wholesale industry groups NAICS 4171 and 4183 were not included due to limitations in data † includes NAICS 3331, 5416, 5417, and 5419 which cannot be delineated to specific industries in F&B Mfg. and Ag Services, therefore numbers will be overstated

Looking at the five-year trend, the F&B Mfg. and Ag Services sector grew in 2013 and 2014, contracted in 2015 and 2016, and recovered in 2017. The sector has grown slightly in the province, with a compound annual growth rate of 0.1% from 2007-2017.

Okotoks: Food & Beverage Manufacturing and Agriculture Services Sector Analysis Page 1

Figure 2: F&B Mfg. and Ag Services Sector GDP Output and Year-Over-Year Growth for Alberta (Billions CAD) * 2013 2014 2015 2016 2017 F&B Mfg. and Ag Services GDP $8.7 $9.0 $7.9 $7.1 $7.6 Y-O-Y Growth (%) 7.6% 4.1% -12.7% -9.3% 6.3% Source: Statistics Canada GDP by NAICS at Basic Prices, Table 379-0030, 2018 *wholesale industry groups NAICS 4171 and NAICS 4183 were not included due to limitations in data

1.2 Workforce & Employment 1.2.1 Employment Data & Projections

The Province of Alberta is the fourth largest employer in the F&B Mfg. and Ag Services sector, employing approximately 11.2 per cent of the total F&B Mfg. and Ag Services sector workforce in Canada. When analyzing these numbers in terms of overall employment in each province, approximately 3.3 per cent of Alberta’s employed workforce is in F&B Mfg. and Ag Services – surprisingly the lowest percentage of all the provinces. PEI has the highest percentage (6.1%) followed by New Brunswick (4.4%).

Figure 3: Employed Labour Force in F&B Mfg. and Ag Services Sector, Provinces, 2016 (Number of People) 300,000

250,000 238,100

200,000

145,765 150,000

100,000 80,050 69,260

50,000 24,485 19,760 14,965 14,885 9,155 4,165 0 ON QC BC AB MB SK NB NS NL PEI

Source: Statistics Canada, Census, 2016

As of the 2016 Census, approximately 620 residents of Okotoks are employed in the F&B Mfg. and Ag Services sector, however the majority of these workers are employed in and other areas surrounding Okotoks. The most common industry groups for Okotoks residents working in F&B Mfg. and Ag Services include management, scientific, technical consulting services (190, 30.6%); meat product manufacturing (135, 21.8%); other professional, scientific, technical services (95, 15.3%); and pesticide, fertilizer, and other agricultural chemical manufacturing (40; 6.5%). See Figure 4 for a detailed breakdown.

When analyzed by place of work, Okotoks has an estimated 260 workers who are employed in F&B Mfg. and Ag Services locally, according to the 2016 Census.

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Figure 4: Employed Labour Force in F&B Mfg. and Ag Services Sector, Communities, 2016 (Number of People)

Industry (NAICS) Okotoks Calgary CMA Alberta

NAICS 1151 & 1152: Support Activities for Farms* 15 390 1965 NAICS 3111: Animal Food Manufacturing 10 105 1035 NAICS 3112: Grain and Oilseed Milling 0 145 675 NAICS 3113: Sugar and Confectionary Product Manufacturing 0 100 360 NAICS 3114: Fruit and Vegetable Preserving and Specialty Food 0 165 1035 Manufacturing NAICS 3115: Dairy Product Manufacturing 10 380 1160 NAICS 3116: Meat Product Manufacturing 135 2135 8740 NAICS 3117: Seafood Product Preparation and Packaging 0 10 50 NAICS 3118: Bakeries and Tortilla Manufacturing 30 1655 3655 NAICS 3119: Other Food Manufacturing 0 695 1630 NAICS 3121: Beverage Manufacturing 25 1180 2475 NAICS 3253: Pesticide, Fertilizer, and Other Agricultural Chemical 40 425 1635 Manufacturing NAICS 3331: Agricultural, Construction, and Mining Machinery 35 1030 4665 Manufacturing** NAICS 4171: Farm, Lawn, and Garden Machinery and Equipment 15 230 2940 Merchant Wholesalers NAICS 4183: Agricultural Supplies Merchant Wholesalers 20 330 1610 NAICS 5416: Management, Scientific, and Technical Consulting 190 11430 22435 Services** NAICS 5417: Scientific Research and Development Services** 0 1610 3420 NAICS 5419: Other Professional, Scientific, and Technical Services** 95 3890 9775 F&B Mfg. and Ag Services Workforce 620 25905 69260 Percentage of Total Employed Workforce 4.2% 3.5% 3.3% Source: Statistics Canada, Census, 2016 *NAICS 1151 and 1152 presented as a combined figure in data **includes industries unrelated to F&B Mfg. and Ag Services sector, therefore numbers will be overstated

Figure 5 showcases the location quotients (LQ)1 for Okotoks in 2016. The LQs measure the concentration of F&B Mfg. and Ag Services employment in Okotoks relative to the Calgary CMA and Alberta.

When compared to both the Calgary CMA and Alberta, Okotoks has a high concentration of their labour force working in animal food manufacturing; meat product manufacturing; pesticide, fertilizer, and other agricultural chemical manufacturing; and agricultural supplies merchant wholesalers.

Okotoks also has high LQs in support activities for farms; dairy product manufacturing; and farm, lawn, and garden machinery and equipment merchant wholesalers against the Calgary CMA specifically.

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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Okotoks has a high concentration of its employed labour force working in F&B Mfg. and Ag Services when compared to the Calgary CMA and an average concentration when compared to the province as a whole.

Figure 5: F&B Mfg. and Ag Services Workforce Location Quotients – Okotoks vs Calgary CMA & Alberta Okotoks / Calgary CMA Okotoks / Alberta Industry (NAICS) LQ Classification LQ Classification

F&B Mfg. and Ag Services LQ Average 1.57 High 1.01 Average NAICS 1151 & 1152: Support Activities for Farms* 1.95 High 1.09 Average NAICS 3111: Animal Food Manufacturing 4.82 High 1.39 High NAICS 3112: Grain and Oilseed Milling 0.00 Low 0.00 Low NAICS 3113: Sugar and Confectionary Product Manufacturing 0.00 Low 0.00 Low NAICS 3114: Fruit and Vegetable Preserving and Specialty Food 0.00 Low 0.00 Low Manufacturing NAICS 3115: Dairy Product Manufacturing 1.33 High 1.24 Average NAICS 3116: Meat Product Manufacturing 3.20 High 2.22 High NAICS 3117: Seafood Product Preparation and Packaging 0.00 Low 0.00 Low NAICS 3118: Bakeries and Tortilla Manufacturing 0.92 Average 1.18 Average NAICS 3119: Other Food Manufacturing 0.00 Low 0.00 Low NAICS 3121: Beverage Manufacturing 1.07 Average 1.45 High NAICS 3253: Pesticide, Fertilizer, and Other Agricultural Chemical 4.77 High 3.51 High Manufacturing NAICS 3331: Agricultural, Construction, and Mining Machinery 1.72 High 1.08 Average Manufacturing** NAICS 4171: Farm, Lawn, and Garden Machinery and Equipment 3.30 High 0.73 Low Merchant Wholesalers NAICS 4183: Agricultural Supplies Merchant Wholesalers 3.07 High 1.78 High NAICS 5416: Management, Scientific, and Technical Consulting 0.84 Average 1.21 Average Services** NAICS 5417: Scientific Research and Development Services** 0.00 Low 0.00 Low NAICS 5419: Other Professional, Scientific, and Technical Services** 1.24 Average 1.39 High Source: Statistics Canada, Census, 2016. Adapted by MDB Insight. *NAICS 1151 and 1152 presented as a combined figure in data **includes industries unrelated to F&B Mfg. and Ag Services sector, therefore numbers will be overstated

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 F&B Mfg. and Ag Services sector for Okotoks between 2016 and 2026.

The most active industry groups for net growth over the projected period include other professional, scientific, and technical services (+28 net jobs); management, scientific, and technical consulting services (+24 net jobs); and bakeries and tortilla manufacturing (+19 net jobs). Only one industry group will see net employment decline; agricultural supplies merchant wholesalers (-2 net jobs).

Overall the F&B Mfg. and Ag Services sector in Okotoks is expected to see a net growth of 70 jobs from 2016-2026.

Okotoks: Food & Beverage Manufacturing and Agriculture Services Sector Analysis Page 4

Figure 6: Projected Okotoks Employment in F&B Mfg. and Ag Services by Industry, 2016-2026 (By Place of Work) Net Industry (NAICS) ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 ‘26 16-26 NAICS 1151 & 1152: Support Activities for 15 15 16 16 16 16 16 16 16 16 16 1 Farms* NAICS 3111: Animal Food Manufacturing 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 3112: Grain and Oilseed Milling 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 3113: Sugar and Confectionary 0 0 0 0 0 0 0 0 0 0 0 0 Product Manufacturing NAICS 3114: Fruit and Vegetable Preserving 0 0 0 0 0 0 0 0 0 0 0 0 and Specialty Food Manufacturing NAICS 3115: Dairy Product Manufacturing 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 3116: Meat Product Manufacturing 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 3117: Seafood Product Preparation 0 0 0 0 0 0 0 0 0 0 0 0 and Packaging NAICS 3118: Bakeries and Tortilla 40 42 44 45 47 49 51 53 55 57 59 19 Manufacturing NAICS 3119: Other Food Manufacturing 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 3121: Beverage Manufacturing 0 0 0 0 0 0 0 0 0 0 0 0 NAICS 3253: Pesticide, Fertilizer, and Other 0 0 0 0 0 0 0 0 0 0 0 0 Agricultural Chemical Manufacturing NAICS 3331: Agricultural, Construction, and 0 0 0 0 0 0 0 0 0 0 0 0 Mining Machinery Manufacturing** NAICS 4171: Farm, Lawn, and Garden Machinery and Equipment Merchant 0 0 0 0 0 0 0 0 0 0 0 0 Wholesalers NAICS 4183: Agricultural Supplies 10 10 9 9 9 8 8 8 8 8 8 -2 Merchant Wholesalers NAICS 5416: Management, Scientific, and 105 106 107 107 108 109 113 117 121 125 129 24 Technical Consulting Services** NAICS 5417: Scientific Research and 0 0 0 0 0 0 0 0 0 0 0 0 Development Services** NAICS 5419: Other Professional, Scientific, 90 93 96 99 102 105 108 110 113 115 118 28 and Technical Services** Total F&B Mfg. and Ag Services 260 266 272 276 282 287 296 304 313 321 330 70 Employment Projections Source: metroeconomics, Okotoks Employment Projections by Industry. Adapted by MDB Insight Inc. *NAICS 1151 and 1152 presented as a combined figure in data **includes industries unrelated to F&B Mfg. and Ag Services sector, therefore numbers will be overstated

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 F&B Mfg. and Ag Services sector occupations for Okotoks between 2016 and 2026.

The most active occupations for net growth over the projected period include pet groomers and animal care workers, business development officers and marketing research and consultants, and labourers in food and beverage processing. No occupations are expected to decline; however, many occupations will

Okotoks: Food & Beverage Manufacturing and Agriculture Services Sector Analysis Page 5

remain stagnant in growth from 2016 to 2026.

Overall the F&B Mfg. and Ag Services sector in Okotoks is expected to see a net growth of 49 workers employed in 36 different F&B Mfg. and Ag Services -related occupations from 2016-2026

Figure 7: Projected Okotoks Employment in F&B Mfg. and Ag Services by Occupations, 2016-2026 (By Place of Work) Occupation Net ‘16 ‘18 ‘20 ‘22 ‘24 ‘26 16-26 Architecture and Science Managers 2 2 2 2 2 2 0 Manufacturing Managers 8 9 9 9 10 10 2 Chemists 2 2 2 2 2 2 0 Other Professional Occupations in Physical Sciences 0 0 0 0 0 1 1 Biologists and Related Scientists 6 6 6 6 7 7 1 Agricultural Representatives, Consultants, and Specialists 3 3 3 3 3 3 0 Chemical Engineers 4 5 5 5 5 5 1 Other Professional Engineers, NEC 1 1 0 1 1 1 0 Chemical Technologists and Technicians 5 5 5 5 5 5 0 Biological Technologists and Technicians 1 1 1 1 2 2 1 Agricultural and Fish Products Inspectors 1 1 1 1 1 1 0 Civil Engineering Technologists and Technicians 6 6 6 7 7 7 1 Landscape and Horticulture Technicians and Specialists 7 8 8 9 9 10 3 Veterinarians 10 11 11 12 13 13 3 Animal Health Technologists and Veterinary Technicians 15 16 17 18 19 20 5 Natural & Applied Science Policy Researchers, Consultants, Program Officers 9 9 9 10 10 11 2 Business Development Officers and Marketing Researchers and Consultants 22 23 24 25 26 27 5 Technical Sales Specialists – Wholesale Trade 20 21 21 22 22 23 3 Pet Groomers and Animal Care Workers 16 19 21 23 25 27 11 Contractors and Supervisors, Mechanic Trades 7 7 7 8 8 8 1 Heavy-Duty Equipment Mechanics 15 15 15 16 16 17 2 Machine Fitters 0 0 0 0 0 0 0 Agricultural Service Contractors, Farm Supervisors and Specialized 5 6 6 6 6 6 1 Livestock Workers 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, Other Mechanical and Metal Products Manufacturing 0 0 0 0 0 0 0 Chemical Plant Machine Operators 1 1 1 1 1 1 0 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 Mechanical Assemblers and Inspectors 1 1 1 1 1 1 0 Labourers in Chemical Products Processing and Utilities 1 1 1 1 1 1 0 Labourers in Food and Beverage Processing 13 14 14 15 16 17 4

Okotoks: Food & Beverage Manufacturing and Agriculture Services Sector Analysis Page 6

Occupation Net ‘16 ‘18 ‘20 ‘22 ‘24 ‘26 16-26 Labourers in Fish and Seafood Processing 0 0 0 0 0 0 0 Total F&B Mfg. and Ag Services Occupation Projections 192 205 208 222 231 241 49 Source: metroeconomics, Okotoks Employment Projections by Occupation. Adapted by MDB Insight Inc.

1.2.3 Wages/Salary Data

F&B Mfg. and Ag Services workers in the Calgary Economic Region (ER), which includes Okotoks, typically make a median hourly wage between $18.00 and $50.48 (depending on the position)2. The average F&B Mfg. and Ag Services median wage in the Calgary ER is $33.04, which is only slightly higher than the Alberta average ($32.15) and higher than the Canadian average ($26.82).

Below are the most current wage estimates for F&B Mfg. and Ag Services professionals in the Calgary ER, Alberta, and Canada using the Government of Canada’s Wage Report:

Figure 8: Median Hourly Wages for F&B Mfg. and Ag Services Occupations Occupation Calgary Alberta Canada

Architecture and Science Managers $58.62 $50.00 $44.23 Manufacturing Managers $43.27 $43.27 $38.46 Chemists $34.62 $34.62 $32.97 Other Professional Occupations in Physical Sciences N/A $51.25 $38.46 Biologists and Related Scientists $38.08 $38.08 $36.06 Agricultural Representatives, Consultants, and Specialists N/A $35.50 $30.29 Chemical Engineers $50.48 $50.48 $40.87 Other Professional Engineers, NEC $48.08 $47.31 $40.87 Chemical Technologists and Technicians $28.00 $28.00 $25.00 Biological Technologists and Technicians $33.78 $30.96 $24.00 Agricultural and Fish Products Inspectors N/A $27.43 $30.67 Civil Engineering Technologists and Technicians $35.00 $35.00 $30.00 Landscape and Horticulture Technicians and Specialists N/A $28.29 $22.50 Veterinarians* $98,417.00 $86,620.00 $81,640.00 Animal Health Technologists and Veterinary Technicians $22.00 $22.00 $17.15 Natural & Applied Science Policy Researchers, Consultants, Program Officers $42.00 $38.22 $38.26 Business Development Officers and Marketing Researchers and Consultants $38.46 $37.00 $33.33 Technical Sales Specialists – Wholesale Trade $33.17 $31.25 $25.00 Pet Groomers and Animal Care Workers $15.80 $15.80 $13.00 Contractors and Supervisors, Mechanic Trades $43.00 $40.00 $31.73 Heavy-Duty Equipment Mechanics $35.00 $34.29 $29.94 Machine Fitters N/A $42.46 $29.30

2 Outliers have been removed.

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Occupation Calgary Alberta Canada

Agricultural Service Contractors, Farm Supervisors and Specialized N/A $18.43 $19.91 Livestock Workers 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, Other Mechanical and Metal Products Manufacturing N/A $36.00 $27.95 Chemical Plant Machine Operators $29.07 $27.89 $20.00 Process Control and Machine Operators, Food and Beverage $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 Mechanical Assemblers and Inspectors $23.00 $22.50 $21.80 Labourers in Chemical Products Processing and Utilities $22.87 $23.70 $18.00 Labourers in Food and Beverage Processing $18.00 $18.00 $15.00 Labourers in Fish and Seafood Processing N/A N/A $13.65 Source: Economic and Social Development Canada, Wage Report, Sept 2017 * Presented as annual salary instead of hourly wage. Not included in average calculation.

1.2.4 Education and Training

Okotoks has approximately 690 people (2.4% of the Town’s total population) educated in F&B Mfg. and Ag Services -related fields. Combined, Okotoks and the Calgary CMA have 40.8 per cent of the people educated in F&B Mfg. and Ag Services -related skills in the province.

Figure 9: Major Field of Study (Number of People, 2016) Major Field of Study Calgary Okotoks + Calgary Okotoks Alberta CMA / Alberta % Agriculture, Agriculture Operations, and Related Sciences 230 5,775 28,440 21.1% Physical and Life Sciences and Technologies 435 35,060 72,850 48.7% Veterinary Medicine, Biomedical, and Clinical Science 25 740 2,185 35.0% Total with F&B Mfg. and Ag-Related Education 690 41,575 103,475 40.8% Source: Statistics Canada, Table 98-400-X2016285, 2016

1.3 Local Businesses 1.3.1 Business Establishment Counts

According to the Canadian Business Counts, there were 149 F&B Mfg. and Ag Services businesses registered in Okotoks as of December 2017.

Approximately 76.5 per cent of businesses in the Town’s F&B Mfg. and Ag Services sector are sole- proprietors (without employees), and the other 23.5 per cent of businesses employ at least 1-4 people.

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The majority of firms are found within the industry groups of other scientific and technical consulting services (99 businesses); veterinary services (14 businesses); support activities for animal production (13 businesses); and support activities for crop production (8 businesses).

Figure 10: F&B Mfg. and Ag Services 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 1151: Support Activities for Crop 6 2 1 1 0 0 0 0 Production NAICS 1152: Support Activities for Animal 11 2 2 0 0 0 0 0 Production NAICS 3111: Animal Food Manufacturing 2 0 0 0 0 0 0 0 NAICS 3112: Grain and Oilseed Milling 0 0 0 0 0 0 0 0 NAICS 3113: Sugar and Confectionary 1 0 0 0 0 0 0 0 Product Manufacturing NAICS 3114: Fruit and Vegetable Preserving 0 0 0 0 0 0 0 0 and Specialty Food Manufacturing NAICS 3115: Dairy Product Manufacturing 0 0 0 0 0 0 0 0 NAICS 3116: Meat Product Manufacturing 0 1 0 0 0 1 0 0 NAICS 3117: Seafood Product Preparation 0 0 0 0 0 0 0 0 and Packaging NAICS 3118: Bakeries and Tortilla 1 2 0 0 1 1 0 0 Manufacturing NAICS 3119: Other Food Manufacturing 1 0 0 0 0 0 0 0 NAICS 3121: Beverage Manufacturing 0 0 0 0 0 0 0 0 NAICS 3253: Pesticide, Fertilizer, and Other 0 0 0 0 0 0 0 0 Agricultural Chemical Manufacturing NAICS 333110: Agricultural Implement 0 0 0 0 0 0 0 0 Machinery NAICS 4171: Farm, Lawn, and Garden Machinery and Equipment Merchant 2 0 0 0 0 0 0 0 Wholesalers NAICS 4183: Agricultural Supplies Merchant 0 3 1 0 1 1 0 0 Wholesalers NAICS 54169: Other Scientific and Technical 85 14 13 1 0 0 0 0 Consulting Services** NAICS 5417: Scientific Research and 2 0 0 0 0 0 0 0 Development Services** NAICS 541940: Veterinary Services 3 11 4 4 1 1 1 0 Total F&B Mfg. and Ag Services 114 35 21 6 3 4 1 0 Business Counts Source: Statistics Canada, Canadian Business Patterns Survey, December 2017. Adapted by MDB Insight Inc. **includes industries not related to F&B Mfg. and Ag Services sector, therefore numbers will be overstated

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1.3.2 Business by Business License Figures According to data derived from the number of business licenses provided by the Town of Okotoks, 11 of these businesses can be classified within the food & beverage manufacturing and agriculture services sector; this represents around 1% of licensed businesses. Figure 111: 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

Figures 12 showcase the location quotients (LQ) for Okotoks in 2016. The LQs measure the concentration of F&B Mfg. and Ag Services businesses in Okotoks relative to the Calgary CMA and Alberta.

When compared to the Calgary CMA and the Province of Alberta, Okotoks has a high concentration of businesses support activities for animal production; animal food manufacturing; sugar and confectionary product manufacturing; bakeries and tortilla manufacturing; other scientific and technical consulting services; and veterinary services.

On average, Okotoks has a high concentration of businesses working in F&B Mfg. and Ag Services when compared to the Calgary CMA and an average concentration when compared to the province as a whole.

Figure 122: F&B Mfg. and Ag Services Business Establishments Location Quotients – Okotoks vs Calgary CMA & Alberta Okotoks / Calgary CMA Okotoks / Alberta Industry (NAICS) LQ Classification LQ Classification F&B Mfg. and Ag Services LQ Average 1.29 High 1.11 Average NAICS 1151: Support Activities for Crop Production 2.28 High 0.75 Average NAICS 1152: Support Activities for Animal Production 2.83 High 2.01 High NAICS 3111: Animal Food Manufacturing 5.52 High 3.15 High

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NAICS 3112: Grain and Oilseed Milling 0.00 Low 0.00 Low NAICS 3113: Sugar and Confectionary Product Manufacturing 3.50 High 6.23 High NAICS 3114: Fruit and Vegetable Preserving and Specialty Food 0.00 Low 0.00 Low Manufacturing NAICS 3115: Dairy Product Manufacturing 0.00 Low 0.00 Low NAICS 3116: Meat Product Manufacturing 2.28 High 0.93 Average NAICS 3117: Seafood Product Preparation and Packaging 0.00 Low 0.00 Low NAICS 3118: Bakeries and Tortilla Manufacturing 1.47 High 1.71 High NAICS 3119: Other Food Manufacturing 0.82 Average 0.72 Low NAICS 3121: Beverage Manufacturing 0.00 Low 0.00 Low NAICS 3253: Pesticide, Fertilizer, and Other Agricultural Chemical 0.00 Low 0.00 Low Manufacturing NAICS 33311: Agricultural Implement Machinery 0.00 Low 0.00 Low NAICS 4171: Farm, Lawn, and Garden Machinery and Equipment 1.94 High 0.69 Low Merchant Wholesalers NAICS 4183: Agricultural Supplies Merchant Wholesalers 2.38 High 1.06 Average NAICS 54169: Other Scientific and Technical Consulting Services** 1.45 High 1.73 High NAICS 54171: Scientific Research and Development Services** 0.41 Low 0.50 Low NAICS 54194: Veterinary Services 2.19 High 2.19 High Source: Statistics Canada, Canadian Business Patterns Survey, December 2017. Adapted by MDB Insight Inc. **includes industries not related to F&B Mfg. and Ag Services sector, therefore numbers will be overstated

1.3.4 Financial Profile of Businesses

The financial data of 493 food manufacturing (figure 13) businesses and 693 veterinary businesses (figure 13), 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 food and beverage manufacturing businesses spend 19 per cent on labour; 13 per cent on taxes, licences, office and travel expenses; 5 per cent on rent; and 3 per cent on utilities and telecommunications.

Figure 133: Financial Performance Data for Alberta F&B Mfg. Businesses 2016 (Based on Food Manufacturing) Major Field of Study Whole Bottom Lower Upper Top Industry Quartile Middle Middle Quartile Total Revenue ($000) $622.6 $59.1 $179.8 $495.3 $1,756.1 Labour & Commissions $115.5 $6.7 $35.4 $117.1 $302.9 Taxes, Licenses, Office & Travel Expenses $82.9 $11.4 $22.7 $55.3 $242.4 Rent $31.6 $5.9 $19.7 $32.4 $68.5 Utilities & Telecommunications $15.8 $2.7 $6.4 $16.3 $37.9

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Major Field of Study Whole Bottom Lower Upper Top Industry Quartile Middle Middle Quartile Other Expenses3 $377.4 $28.4 $78.5 $273.8 $1,128.5 Total Expenses ($000) $623.2 $55.1 $162.7 $494.9 $1,780.2 Net Profit/Loss ($000) -$0.6 $4.0 $17.1 $0.4 -$24.1 Source: Statistics Canada, Small Business Profiles, 2016. Adapted by MDB Insight Inc.

On average, Alberta agriculture professional services businesses spend 29 per cent on labour; 17 per cent on taxes, licences, office and travel expenses; 6 per cent on rent; and 2 per cent on utilities and telecommunications.

Figure 144: Financial Performance Data for Alberta Ag Services Businesses 2016 (Based on Veterinary Services) Major Field of Study Whole Bottom Lower Upper Top Industry Quartile Middle Middle Quartile Total Revenue ($000) $726.4 $66.2 $211.9 $666.6 $1,960.9 Labour & Commissions $172.1 $10.5 $47.6 $162.4 $468.0 Taxes, Licenses, Office & Travel Expenses $102.2 $10.9 $38.7 $101.8 $257.4 Rent $34.4 $1.1 $10.5 $40.6 $85.6 Utilities & Telecommunications $9.5 $1.4 $3.6 $11.1 $21.9 Other Expenses4 $282.1 $10.5 $46.2 $216.3 $855.2 Total Expenses ($000) $600.3 $34.4 $146.6 $532.2 $1,688.1 Net Profit/Loss ($000) $126.1 $31.8 $65.4 $134.4 $272.8 Source: Statistics Canada, Small Business Profiles, 2016. Adapted by MDB Insight Inc. 1.3.5 Major Employers

Major F&B Mfg. and Ag Services employers within Okotoks and the Calgary CMA are listed in Figures 15 and 16.

Some of the most common industry groups of major F&B Mfg. and Ag Services employers in Okotoks include: veterinary services; animal consulting services; and bakeries and tortilla manufacturing.

Figure 155: Major Employers in Okotoks F&B Mg & Ag Services Sector Company Number of F&B Mfg. and Ag Services Industry Group Employees Feedlot Health Management Services Ltd. 51 Animal Consulting Services Okotoks Animal Clinic Ltd. 17 Veterinary Services Tim Hortons 15 Bakeries and Tortilla Manufacturing Cobbs Bread 12 Bakeries and Tortilla Manufacturing Foothills Animal Hospital Ltd. 10 Veterinary Services Atirfarm Help Centre Inc 6 Veterinary Services

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. 4 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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Company Number of F&B Mfg. and Ag Services Industry Group Employees Big Rock Animal Clinic Ltd 6 Veterinary Services Sheep River Veterinary Services Inc. 5 Veterinary Services Brownsugar Bake Shop 5 Bakeries and Tortilla Manufacturing Command Dog College 5 Animal Consulting Services Equilibrium Veterinary Rehabilitation & 5 Veterinary Services Consulting Ltd. Agrifarm Health Centre Inc. 5 Veterinary Services Jim Veterinary Services Ltd. 5 Veterinary Services Home Veterinary Services 5 Veterinary Services Source: Hoovers, 2018

Some of the most common industry groups of major F&B Mfg. and Ag Services employers in Calgary CMA include: beverage manufacturing; meat product manufacturing; bakeries and tortilla manufacturing; and agricultural chemical manufacturing.

Figure 166: Major Employers in Calgary F&B Mfg. and Ag Services Sector Company Number of F&B Mfg. and Ag Services Industry Group Employees Coca-Cola Refreshments Canada Company 400 Beverage Manufacturing Lilydale Inc. 375 Meat Product Manufacturing Agrifoods International Cooperative Ltd. 350 Beverage Manufacturing Agrium Inc. 335 Agriculture Chemical Manufacturing Old Dutch Foods Ltd. 230 Other Food Manufacturing PepsiCo Canada ULC 200 Beverage Manufacturing JBS Canada Inc. 160 Meat Product Manufacturing Cococo Chocolatiers Inc 150 Sugar and Confectionary Product Manufacturing Bayer Cropscience Inc. 120 Agricultural Chemical Manufacturing Big Rock Brewery Inc. 120 Beverage Manufacturing Alberta Distillers Limited 120 Beverage Manufacturing Cinnaroll Bakeries Limited 100 Bakeries and Tortilla Manufacturing Byblos Bakery Ltd. 100 Bakeries and Tortilla Manufacturing Bagos Bun Bakery Ltd. 100 Bakeries and Tortilla Manufacturing Sliced FC Ltd. 95 Fruit and Vegetable Preserving and Specialty Food Mfg. Source: Hoovers, 2018

1.4 Trade (Exports & Imports) In 2017, Alberta exported approximately $6.2 billion dollars in manufactured food and beverage and agricultural supply products. The USA, China, Japan, Mexico, and South Korea were the top five destination markets, with the USA representing the majority share – approximately 58.7 per cent. Top food and beverage and agricultural supply exports from Alberta include: meat products; grain and oilseed products; and fertilizer.

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Figure 177: Alberta F&B Mfg. and Ag Services Exports Value and Y-O-Y Growth (Billions CAD) 2013 2014 2015 2016 2017 $4.8 $5.1 $5.9 $6.0 $6.2 6.9% 16.3% 2.0% 2.4% Source: Statistics Canada, Trade Data Online, 2017

In 2017, Alberta imported approximately $26.0 billion dollars in total manufactured products. The USA, Italy, UK, France, and Mexico were the top five source markets, with the USA representing the majority share – approximately 57.3 per cent.

Figure 188: Alberta F&B Mfg. and Ag Services Import Value and Y-O-Y Growth (Billions CAD) 2013 2014 2015 2016 2017 $2.1 $2.4 $2.5 $2.3 $2.3 12.2% 4.2% -9.7% 1.7% Source: Statistics Canada, Trade Data Online, 2017

1.5 Sector Trends & Outlook 1.5.1 F&B Mfg. and Ag Services Trends Three major trends that are dominating the F&B Mfg. and Ag Services sector worldwide include:

Traceability and Transparency in Food Production: In addition to the trends that are happening in the manufacturing sector as a whole (robotics, automation, etc.) food and beverage manufacturing firms are facing a very specific trend – the consumer’s demand to know the source of their food and how it was processed. The uptake of this trend is partially due to consumer’s increased interest in living sustainably as well as an increased interest in health and food safety. With the use of end-to-end traceability platforms food processors are able to track their supply chain more effectively and can use the information to build greater trust with their consumers. This trend also extends to higher transparency in ingredients and packaging in an effort to be more honest with consumers.

Precision Agriculture: Farms are increasingly using technology in an effort to have more control and precision in growing crops. With the use of satellite imagery, drones, robots, simulation modelling, and wireless sensors networks, farmers are able to observe and manage their farms more efficiently than ever before, allowing them to maximize their yields and preserve resources. The use of these technologies in agriculture not only improve the profitability of farms, they also improve farm sustainability by reducing food loss and waste, water usage, and CO2 emissions. With rising costs for farmers and increased demand for sustainability from consumers, the use and development of technology that allows for more precision in agriculture is expected to increase greatly.

Wearable Devices to Monitor Animal Health: Although wearable technology has been a trend for humans over the past few years, it is now playing an increasing role in disease prevention of livestock. Technologies such as tracking devices and biosensor ear tags can offer real-time data on an animal’s vital signs as well as alert farmers and veterinarians to early warning signs of outbreaks. These devices can also be used to

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monitor an animal’s behaviour, movement, and feeding, and watering habits – giving farmers and vets much more insight into their livestock’s day to day health. These technologies are still in their infancy and it may be some time before they are widely adopted, but opportunity exists for those interested in developing technology and tools for this new market.

1.5.2 Alberta F&B Mfg. and Ag Services Outlook Combined, food and beverage manufacturing are Alberta’s largest manufacturing sub-sector by output and employment, with meat processing and grain and oilseed milling being the top two industry groups. The sub-sector is growing in the province, however very slowly, and its growth rate pales in comparison to what’s happening in Ontario and Quebec. This is partly due to low levels of investment, high costs of labour to compete with the energy sector, and low motivation for innovation and export.5

The Government of Alberta has created a few programs in an effort to change this and improve growth in the sub-sector. In late 2017 the Province announced a $600,000 Craft Brewery Grant with the hope it will further grow the beverage industry. Around the same time, they announced the Farm Energy and Agri- Processing Program which aims to share costs with agricultural and food manufacturing firms on energy efficiency investments with grants up to $250,000 per applicant per year.

According to a 2014 study by Alberta Innovates, the province’s largest research and innovation agency, areas of innovation that are considered opportunities for Alberta’s food and beverage manufacturing sub- sector include: ingredients, functional foods and nutraceuticals, food safety (with a focus on meat), and genomics/metabolomics technology.6 Alberta Innovates continues to advocate for and assist with growing these areas of interest. The 2017-2018 Accelerating Food Innovation in Alberta program is designed to providing funding for applied research and product development in those four areas of innovation. 7

Another key policy the Government of Alberta has put in place recently to assist businesses in all areas of 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.

1.5.3 Canada F&B Mfg. and Ag Services Outlook The food and beverage manufacturing sub-sector is vital to Canada’s economy, as the country is the fifth largest food exporter in the world; some 190 countries receive a variety of food exports from Canada. It is the second largest manufacturing industry group in the Country – in terms of value of production – and is the sub-sector is also the largest buyer of Canadian agricultural products.

The Country’s main advantage in this sub-sector is its access to an abundant and diverse range of agricultural feedstock from coast to coast. The meat product manufacturing is the largest food and

5 Alberta Innovates. (2014). Food Innovation Plan. Source: http://bio.albertainnovates.ca/media/64670/alberta_innovates_food_innovation_plan_2014-17_final.pdf 6 Alberta Innovates. (2014). Food Innovation Plan. Source: http://bio.albertainnovates.ca/media/64670/alberta_innovates_food_innovation_plan_2014-17_final.pdf 7 Alberta Innovates (2017). 2017-18 Food Innovation. Source: http://bio.albertainnovates.ca/funding/2017-18-food-innovation/

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beverage processing industry group in the country and is the most significant food industry in Quebec, Ontario, Alberta, and British Columbia. Other significant industry groups include grain and oilseed milling – the largest food industry in Manitoba and Saskatchewan – and seafood manufacturing – the most significant in New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland.

This sub-sector is a target for growth under the Government of Canada’s Innovation and Skills Plan. The government aims to grow Canada’s food manufacturing exports to at least $75 billion (currently at $31 billion) annually by 2025. Major initiatives to help make that happen include: (1) eliminating tariffs on a broad range of ingredients, covering approximately $700 million in annual imports and (2) improving access through reviewing and improving transportation networks. In addition, under the Superclusters Initiative the Prairie Province will receive funding to focus on the development of plant genomics and innovative in food and beverage processing technology for key Canadian crops, such as canola, wheat and pulses. The economic impact in the region due to this initiative is expected to be more than $4.5 billion in GDP and more than 4,500 jobs created over 10 years. 8

More government funding for both Alberta’s agriculture and food and beverage manufacturing industries was announced in March 2018. Together, the federal and provincial governments will invest $406 million to support 15 strategic programs and activities under the Canadian Agriculture Partnership – a five-year federal-provincial-territorial agreement that focuses on increasing trade, expanding markets, and supporting innovative and sustainable growth. These programs are being phased over the spring, summer, and fall of 2018. The Canadian Agriculture Partnership offers additional funding to agriculture and food and beverage manufacturing businesses under specific federal-run programs, namely: AgriMarketing, AgriCompetitivenss, AgriScience, AgriInnovate, AgriDiversity, and AgriAssurance.9

8 Government of Canada. (2017). Protein Industries Supercluster. Source: http://www.ic.gc.ca/eic/site/093.nsf/eng/00012.html 9 Agriculture and Agri-Food Canada. Canadian Agricultural Partnership: Federal Activities and Programs. Source: http://www.agr.gc.ca/eng/about-us/key-departmental-initiatives/canadian-agricultural-partnership/canadian-agricultural-partnership-federal- activities-and-programs/?id=1511361680577

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2. The Okotoks Advantage 2.1 Core Clusters Agribusiness is a key sector, with Alberta being home to over one-fifth of the total farm land in Canada. Building on the abundance of feedstock Calgary has become a hub for value added food processing and agricultural services. Although Okotoks has a small food and beverage manufacturing base, the Town has a natural competitive advantage on the agri-business services side. Okotoks has an estimated 260 workers and high location quotients in support activities for farms; dairy product manufacturing; and farm, lawn, and garden machinery and equipment merchant wholesalers against the Calgary CMA specifically. On average, Okotoks has a high concentration of businesses working in food and beverage manufacturing and agri-business services, compared to the Calgary CMA and an average concentration compared to the province. Being a major centre for the rural area surrounding it, Okotoks has already shown signs of clusters developing in the following industries: Food and Beverage Manufacturing: As the largest manufacturing sector in Alberta (23% of total manufacturing sales 2016), Calgary is home to multinationals, medium-sized and niche food and beverage processing and manufacturing companies. Global meat processors including Cargill, JBS, Harmony Beef and Sofina Foods have large operations in . This industry group is a major local employer in Okotoks and presents high employment and business count LQs s well as high employment projections. Although comprising only a few local businesses, this industry group has the potential to expand over the long term given the demand created by a large and growing population base within the region. Agribusiness Services: As farms consolidate in the Calgary region and precision agriculture continues to drive farmers and manufacturers to adopt technologies and more sophisticated services significant opportunities are being created in the sector. Significant short-term opportunities include: Veterinary Services and Animal Research/Consulting Services: This industry shows as a strong agriculture services cluster through high employment and business count LQs (falls within the Other Professional, Scientific, and Technical Services), high occupation projections, and several major employers including Feedlot Health Management Services and the Okotoks Animal Clinic. Although most people think of pet health when they think of veterinary services, Okotoks businesses have built their strengths in serving the health of large animals and livestock. As a hub for surrounding smaller towns and agriculture-oriented rural areas, Okotoks also has a large clientele base in niche animal services such as farm animal research and consulting. Fostering existing businesses and targeted attraction of new businesses working in these fields could help Okotoks further develop this area as a strong cluster for the community. Support Activities for Farms: Combined, the industry groups of support activities for crop production and support activities for animal production show as a strong potential agri-business services cluster for Okotoks through high employment and business count LQs. Okotoks has an advantage in these industry groups for much of the same reasons as veterinary and animal consulting service – it is ideally located to supply the agriculture-focused surrounding area.

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Okotoks Investment: Many businesses in the Agri-business Services sector require minimal infrastructure and proximity to agricultural activity such as Veterinary services making them short-term investment opportunities. Food and Beverage Manufacturing represents a longer term opportunity as the infrastructure requirements can be extensive. In Okotoks the current limited inventory of available lands, ongoing planning with the annexation lands and water constraints create significant barriers for the attraction of food and beverage manufacturing in the short term. However once servicing is complete, the sector represents a significant opportunity given its access to feedstock and significant and growing population base in the region.

2.2 Local & Regional Assets 2.2.1 Post-Secondary Institutions Southern Alberta 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.

Programs offered by SAIT that are relevant to the F&B Mfg. and Ag Services sector include: Agricultural Equipment Technician (apprenticeship); Chemical Engineering Technology (diploma); Chemical Laboratory Technology (diploma); Civil Engineering Technology (diploma); and Heavy Equipment Technician (Apprenticeship).

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.

Programs offered at the University of Calgary relevant to the F&B Mfg. and Ag Services sector include:

- Biological Science (BSc, MSc) - Chemical Engineering (BSc, MEng, MSc, PhD) - Chemistry (BSc, MSc, PhD) - Civil Engineering (BSc, MEng, MSc, PhD) - Plant Biology (BSc) - Veterinary Medicine, with areas of emphasis in Production Animal Health, Ecosystem and Public Health, Equine Health, and Investigative Medicine (DVM, MSc, PhD) - Zoology (BSc)

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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 Biological Sciences at the University of Calgary include: animal physiology; biodiversity; biotechnology; and plant biology.

Specialized areas of research within the Faculty of Veterinary Medicine at the University of Calgary include: cattle health; clinical and translational research; infection biology; pain and animal welfare; reproduction and regenerative medicine; wildlife health ecology.

2.2.3 Major Land & Infrastructure According to the 2016 Agriculture Census, Census Division No. 6, which includes Okotoks, has a total of 3,905 farms – the third highest count of all 19 Census Divisions across Alberta.

The Municipal District of Foothills No. 31, i.e. Okotoks’s surrounding region, has approximately 1,083 farms.

2.3 Market Position & Competitiveness In food and beverage manufacturing Okotoks faces major competition from its larger, neighbouring communities that are much more manufacturing-focused and located more conveniently to major transportation facilities and routes. However, in agricultural services, Okotoks has a real advantage by being more conveniently located for farmers in the surrounding area.

2.3.1 Strengths & Opportunities

Regional Hub for Surrounding Communities and Farms: 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. The surrounding area is also one of the most abundant in farmland across the province and therefore Okotoks has an advantage in providing agricultural services.

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.

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,

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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.

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.

2.3.2 Weaknesses

Workforce Retention: According to the 2016 Census commuting patterns, approximately 6,910 residents leave Okotoks for work, with the vast majority working in Calgary. This includes around 58 per cent of the Town’s total employed workforce in F&B Mfg. and Ag Services. 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.

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3. Appendix 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, Irricana, , 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, , Longview, , Black Diamond, Okotoks, Rocky View County, Calgary, Chestermere, Cochrane, Airdrie, Irricana, Beiseker, Crossfield, Mountain View County, Carstairs, Cremona, Didsbury, Olds, , Eden Valley 216, and Tsuu T’ina Nation 145 (Sarcee 145).

3.2 NAICS Codes in this Report Food & Beverage Manufacturing ▪ NAICS 3111: Animal Food Manufacturing ▪ NAICS 3112: Grain and Oilseed Milling ▪ NAICS 3113: Sugar and Confectionary Product Manufacturing ▪ NAICS 3114: Fruit and Vegetable Preserving and Specialty Food Manufacturing ▪ NAICS 3115: Dairy Product Manufacturing ▪ NAICS 3116: Meat Product Manufacturing ▪ NAICS 3117: Seafood Product Preparation and Packaging ▪ NAICS 3118: Bakeries and Tortilla Manufacturing ▪ NAICS 3119: Other Food Manufacturing ▪ NAICS 3121: Beverage Manufacturing

Agriculture Services ▪ NAICS 1151: Support Activities for Crop Production ▪ NAICS 1152: Support Activities for Animal Production ▪ NAICS 3253: Pesticide, Fertilizer, and Other Agricultural Chemical Manufacturing ▪ NAICS 3331: Agricultural, Construction, and Mining Machinery Manufacturing ▪ NAICS 33311: Agriculture Implement Manufacturing ▪ NAICS 4171: Farm, Lawn, and Garden Machinery and Equipment Merchant Wholesalers ▪ NAICS 4183: Agricultural Supplies Merchant Wholesalers ▪ NAICS 5416: Management, Scientific, and Technical Consulting Services ▪ NAICS 54169: Other Scientific and Technical Consulting Services ▪ NAICS 5417 Scientific Research and Development Services

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▪ NAICS 54171: Research and Development in Physical, Engineering, and Life Sciences ▪ NAICS 5419: Other Professional, Scientific, and Technical Services ▪ NAICS 54194: Veterinary Services

3.3 NOC Codes in this Report Food & Beverage Manufacturing and Agriculture Services ▪ NOC 0212: Architecture and Science Managers ▪ NOC 0911: Manufacturing Managers ▪ NOC 2112: Chemists ▪ NOC 2215: Other Professional Occupations in Physical Sciences ▪ NOC 2121: Biologists and Related Scientists ▪ NOC 2123: Agricultural Representatives, Consultants, and Specialists ▪ NOC 2134: Chemical Engineers ▪ NOC 2148: Other Professional Engineers, NEC ▪ NOC 2211: Chemical Technologists and Technicians ▪ NOC 2221: Biological Technologists and Technicians ▪ NOC 2222: Agricultural and Fish Products Inspectors ▪ NOC 2231: Civil Engineering Technologists and Technicians ▪ NOC 2225: Landscape and Horticulture Technicians and Specialists ▪ NOC 3114: Veterinarians ▪ NOC 3213: Animal Health Technologists and Veterinary Technicians ▪ NOC 4161: Natural & Applied Science Policy Researchers, Consultants, Program Officers ▪ NOC 4163: Business Development Officers and Marketing Researchers and Consultants ▪ NOC 6221: Technical Sales Specialists – Wholesale Trade ▪ NOC 6563: Pet Groomers and Animal Care Workers ▪ NOC 7301: Contractors and Supervisors, Mechanic Trades ▪ NOC 7312: Heavy-Duty Equipment Mechanics ▪ NOC 7316: Machine Fitters ▪ NOC 8252: Agricultural Service Contractors, Farm Supervisors and Specialized Livestock Workers ▪ NOC 9212: Supervisors, Petroleum, Gas and Chemical Processing and Utilities ▪ NOC 9213: Supervisors, Food and Beverage Processing ▪ NOC 9226: Supervisors, Other Mechanical and Metal Products Manufacturing ▪ NOC 9421: Chemical Plant Machine Operators ▪ 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 9526: Mechanical Assemblers and Inspectors ▪ NOC 9613: Labourers in Chemical Products Processing and Utilities ▪ NOC 9617: Labourers in Food and Beverage Processing ▪ NOC 9618 Labourers in Fish and Seafood Processing

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