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Town of Okotoks Food & Beverage Manufacturing and Agriculture Services November 2018

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Town of Okotoks Food & Beverage Manufacturing and Agriculture Services November 2018 Town of Okotoks 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 Alberta F&B Mfg. and Ag Services Outlook .................................................................................... 15 1.5.3 Canada 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 Statistics Canada, 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 Calgary 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. Okotoks: Food & Beverage Manufacturing and Agriculture Services Sector Analysis Page 2 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**
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