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2016 Annual Economic Report

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2016 Annual Economic Report ECONOMIC REVIEW 2016 BRAMPTON ECONOMIC DEVELOPMENT Building the Future & CULTURE Contents Linda Jeffrey Mayor of Brampton 01 Messages from Mayor and Chair, Economic Development & Culture Committee 02 Opportunity adds up in Brampton Brampton continues to prosper, led by sustained economic growth. Brampton also has the advantage of being located right in the centre of the Innovation Super Corridor. 03 Economic Overview As Brampton moves onto the global stage, there are exciting That’s one of the reasons companies like Canon choose developments setting the stage for innovation and growth. 05 Key Developments and Investments to set up operations here. Our location and infrastructure 07 Key Industry Snapshot A university is the single greatest incubator and catalyst for more jobs, advantages, along with our youth and diversity, make development and investment in our city. On October 26, 2016, Finance a compelling story as we partner in Toronto Global’s 11 Central Area Minister Charles Sousa announced a Provincial commitment to build pitch to international business communities. a university in Brampton. Brampton will be home to a unique centre 12 Entrepreneurship New developments and expansion only give more reason for education, innovation and collaboration – to build industry for businesses to invest in our city, and for our future 13 Cultural Services partnerships, promote research and commercialization, and deliver leaders and innovators to establish their roots here. 14 Milestone Event and the skills needed to be successful today and in the future. Let’s work together to explore new opportunities in the Strategic Partners A significant health and life sciences cluster is starting to take shape area of innovation and together we will become a beacon around the new Peel Memorial Centre for Integrated Health and that will attract new economic development, disrupt Wellness. Businesses in this sector are already investing in this the status quo and move our city forward. growth opportunity. Jeff Bowman City Councillor Wards 3 & 4 Chair, Economic Development & Culture Committee Brampton is moving to take a prominent place as a major urban centre, Our Economic Development model is based on Brampton’s and our Economic Development approach is transforming to match. transformation story. We’re modernizing, collaborating, partnering and innovating to reflect our City’s reality Acknowledging the role culture plays in the vibrancy of the local and the best path to greater economic success. economy, the new Economic Development and Culture office is building on a history of client service and now positioning Brampton as a significant competitor to other Canadian and global cities. Talent and transportation are critical factors when companies make the choice to invest in a city. Brampton’s growth, youth and diversity provide a pipeline of talent to fill the jobs of tomorrow, and our location and access to amenities and infrastructure make Brampton a clear winner. 1 In Brampton, opportunity always adds up 89+ 290 NEW BUSINESSES LANGUAGES SPOKEN created per year (average) by 209 different cultures 2,400 NEW JOBS LOWEST MEDIAN AGE created per year (average) IN CANADA 34.7 2ND FASTEST RANKED FOR SALE GROWING CITY TOP 10 OVERALL MID-SIZED CITY The largest supply of IN CANADA TOP 10 BEST BUSINESS FRIENDLINESS vacant land adjacent Approx.14,000 new & CONNECTIVITY to Canada’s largest residents per year FDI Magazine airport YYZ HOME TO CN The largest Intermodal AAA Railway terminal HEADQUARTERS Credit Rating – 11 years in Canada 80 (Over 100 employees) (Standard & Poor’s) 51% OF WORKFORCE HAVE POST-SECONDARY EDUCATION 7 TRANSCONTINENTAL HIGHWAYS Highly skilled talent accessing 158 million North American consumers 2 INDUSTRIAL COMMERCIAL INSTITUTIONAL economic overview $176M $65M $97M TOTAL (DOLLARS) GREATER GREATER GREATER CANADA TORONTO AREA CANADA TORONTO AREA CANADA TORONTO AREA CONSTRUCTION 5TH 2ND 24TH 7TH 16TH 5TH 2.4M ft2 212K ft2 372K ft2 The City of Brampton industrial base is one In 2016, new commercial construction After a banner year in 2015, adding over one of the largest in the Greater Toronto Area, added close to 212,000 square feet of floor million square feet of new institutional space, accounting for 12 per cent of all industrial space to the commercial inventory for largely due to the new Peel Memorial Centre, space (approx.100 million square feet). a total of close to 26 million square feet. institutional development in 2016 slowed, Eight new retail developments began decreasing the total investment market by In 2016, there were substantial expansions construction, most notably Audi Brampton 61 per cent. to existing industrial facilities, most notably at 25 Coachworks Crescent (63,000 square Orlando Corp. (422,720 square feet), Similar to commercial development, the feet), Michaels Arts and Crafts located at The Gap (357,717 square feet) and institutional market is sensitive to the 120 Resolution Drive (22,000 square feet). Amazon (868,121 square feet), totaling over residential cycle. As residential development 1.7 million square feet. New development increases, the number of schools and other came in at close to 700,000 square feet total. institutional services also increase soon after. DEVELOPMENT (SQUARE (SQUARE FEET ADDED) 3 National rankings Source: Statistics Canada, Catalogue no. 64-001-XIE, Dec 2016. Development measurement source: City of Brampton Building Permit Data RESIDENTIAL OVERVIEW Growth plus. $1.6B $2B The Canadian economy has not been immune to the global slowdown as the Bank of Canada reported Canadian GDP growth of 1.3 per cent for 2016, down from its target range of 2-3 per cent. The City of Brampton has also felt the global economic pressures. The Region of Peel unemployment rate has increased from 6.8 percent in 2015 to 7.1 per cent in 2016, but remains lower than the 10-year average for the region. Still, Canada is once again the fastest growing country in the G7 according to Statistics Canada, and the Brampton economy continues to demonstrate growth. According to the 2016 census, the population of Brampton is close to 600,000, a growth of over 13 per cent since 2011. Brampton had a 4.8 per cent increase in new businesses GREATER GREATER from 2015, and those businesses provided 2,400 additional CANADA TORONTO AREA CANADA TORONTO AREA jobs within the community. More than 97 per cent of these TH ND TH ND new businesses employed less than 75 people and are able 6 2 7 2 to adapt quickly to changing economic circumstances. Brampton remains in a strong competitive position because of its diverse and resilient economic base and has transformed 2 2 its economic development approach to target high growth 9.6M ft 12.5M ft business sectors. Our location in the middle of the Innovation Super Corridor, and new strategic investments, like a university, Residential development in Brampton has will have a significant and positive impact on the regional been a strong construction market for the labour force and long-term job growth in Brampton. past decade. Residential construction has averaged $1.3 billion each year, for the past According to Statistics Canada, Brampton placed 7th 10 years, adding approximately 4,000 new 220 2,400 in the country for total construction value in 2016, generating housing units each year. NEW BUSINESSES NEW JOBS $2 billion in investment. With high growth expected to (4.8% increase) (64% increase) The demand on housing in Brampton continue until 2041, the City of Brampton is in a strong has increased in the residential resale position to attract investment and will remain among the market. Brampton, recorded 10,964 sales country’s most active markets in the coming decades. of residential dwellings, which equates to $6.4 billion, with an average selling price of *Source: $584,676 (an increase of 19.7 per cent from 4,000 $584,676 1. IMF World Economic Outlook (WEO) Update, 2015). On average, Brampton has one of NEW RESIDENTIAL AVERAGE HOME RESALE January 2017: A Shifting Global Economic Landscape 2. Bank of Canada Monetary Policy Report, January 2017 the lowest “numbers of days on the market” UNITS (19.7% increase) 3. Statistics Canada, Catalogue no. 64-001-XIE, December 2016 in 2016. Brampton continues to have one of 4. Brampton Economic Development Office the lowest home prices among the Greater 5. Statistics Canada Labour Force Survey, December 2015-December 2016 Toronto Area. 6. Brampton Building Division, December 2016 4 7. Monthly MarketWatch (Toronto Real Estate Board) December 2016 8. GTA Q4 2015/2016 Industrial Statistics – (Colliers International) key investments+ developments $2B Investment in Brampton 12 11 13 4 7 16 8 10 2 1 3 9 15 5 6 14 COMMERCIAL & RETAIL INSTITUTIONAL MIXED USE INDUSTRIAL 5 01 07 12 Orlando Corporation Redwood Properties Audi Dealership Churchill Business Community One 25-storey tower and New 62,700 sq. ft. facility 422,720 sq. ft. addition one 27-storey residential tower $7 million* $35 million* investment on top of a three-storey podium 25 Coachworks Cres. 7825 Winston Churchill Blvd. with 387 dwelling units and 10,800 sq. ft. of commercial 03. CANON CANADA INC. 13 02 $140 million** investment Springdale Public Library Orlando Corporation 45 Railroad St. – Opening 2018 New 27,500 sq.ft. facility Churchill Business Community $17 million* investment on 4 acres New spec building, one million sq. ft. 08 10705 Bramalea Rd. $43 million* investment Cumberland Development 8050 Heritage Rd. One five-storey office tower 14 – Amazon Opened 2016 55,700 sq. ft. and one 23-storey Taro Pharmaceuticals residential tower (156 units) 2,500 sq. ft. addition 145-147 Queen St. E. 09. PEEL MEMORIAL CENTRE FOR 03 $294,000* investment INTEGRATED HEALTH AND WELLNESS Canon Canada Inc. 130 East Dr. New Canadian head office 09 Three buildings, 190,000 sq. ft.
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