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City of Toronto Customized Global Template STAFF REPORT June 18, 2001 To: Economic Development Committee From: Joe Halstead, Commissioner Economic Development, Culture and Tourism Subject: South Etobicoke Employer Cluster Capacity Study Etobicoke-Lakeshore - Ward 6 Purpose: The purpose of this report is to provide an overview on the findings and recommendations contained in the South Etobicoke Employer Cluster Capacity Study. Financial Implications and Impact Statement: There are no financial implications resulting from the adoption of this report. Recommendations: It is recommended that: (1) the findings and recommendations of the South Etobicoke Employer Cluster Capacity Study be endorsed by the Economic Development and Parks Committee and Council; (2) this report be forwarded to the Planning and Transportation Committee and Etobicoke Community Council for their information and consideration when reviewing land use options for the New Toronto Secondary Plan; (3) the Commissioner of Economic Development, Culture and Tourism be requested to monitor and report on implementation of the South Etobicoke Employer Cluster Capacity Action Plan; and (4) the appropriate City officials be authorized and directed to take necessary action to give effect thereto. - 2 - Background: South Etobicoke is located in the southwest quadrant of the City and includes the area south of the Queen Elizabeth Highway to Lake Ontario and west of the Humber River to the Etobicoke Creek, as shown on Attachment No. 1. In 1999, South Etobicoke was identified as an “Employment Revitalization Program Area” and private and public resources (including funds from Human Resources Development Canada) were successfully leveraged to revitalize the area. This initiative has facilitated a collaborative community based process designed to encourage reinvestment in the community. The South Etobicoke Regeneration Program (SERP) is the largest and most comprehensive of eleven active Employment Revitalization project areas in the City. The strength and breadth of stakeholder participation is demonstrated by the many signatories to the Human Resources Development Canada (HRDC) agreement, which include Lakeshore Area Multi-Services Project, Vacant Industrial Landowners, local Business Improvement Areas (BIAs), Lakeshore Ratepayers Association, the Community Social Planning Council of Toronto, the Assembly Hall, Canadian National Railway, Citizens Concerned about the Future of the Etobicoke Waterfront (CCFEW), Castrol Canada Inc., Humber College, the Lakeshore Planning Council, the South Etobicoke Industrial Employers Association (SEIEA) and Lakeshore Arts. In spring 2000 SERP completed its Blueprint For Action, a broad strategy to increase local employment through community capacity building, partnership development, reinvestment advocacy and area marketing and promotion. This document was approved by Council and referred to various City departments for action. An implementation framework was subsequently created under the direction of the SERP Steering Committee and four work groups were formed: Business Attraction and Retention; Physical Infrastructure; Social Infrastructure; and Marketing & Promotions. Each work group is co-chaired by a community and City staff representative. One of the action items identified by the Business Attraction and Retention (BAR) Work Group was an analysis of economic cluster activities and labour force adjustments/ requirements in South Etobicoke, building on the findings and recommendations outlined in the City of Toronto report entitled “Toronto Competes” and the City’s recently released Economic Development Strategy. Similarly, the work was intended to complement the efforts undertaken in the Toronto Official Plan Directions Report, Toronto At The Crossroads: Shaping Our Future, where Urban Development Services reference the GTA forecast of 540,000 additional jobs and articulate the need to accommodate this job growth within the City structure. Comments: The South Etobicoke Employer Cluster Capacity Study, provided in Attachment No. 2, was prepared under the direction of the Business Attraction and Retention Work Group of the South Etobicoke Regeneration Project (SERP). Perhaps the most significant finding of the report is that South Etobicoke is a viable employment area and an important and growing manufacturing - 3 - centre in the City of Toronto. The findings of the study are summarized below under the headings of employment growth and characteristics, dominant business clusters and area advantages. Employment Growth Characteristics in South Etobicoke: (a) Following the economic restructuring and recession of the early 1990s, South Etobicoke made a successful transition, adapting well to the forces of globalization and modern production processes. This is evident by the large number of firms that have made recent investments in plant and machinery. As an example, the nine companies that currently comprise the South Etobicoke Industrial Employers Association are collectively investing at a rate of almost $17 million per year in capital improvements. This is projected to grow provided there is a stable investment environment. (b) Over the past five years, manufacturing employment has grown more quickly in South Etobicoke than in the City (18 percent compared to 14 percent). (c) Total employment in South Etobicoke has increased 5 percent in the past 4-5 years. (d) There are 24,365 people employed in South Etobicoke, including a large number of skilled trades and crafts people. (e) Approximately 33 percent of the labour force live in the area. (f) Over 40 percent of the local labour force are involved in manufacturing. Dominant Business Clusters in South Etobicoke: (a) Food processing and automotive manufacturing are highly concentrated, with 14 and 22 percent, respectively, of total City employment for these sectors. (b) Over the past five years, food and beverage processing grew by 16 percent, compared to 5 percent in the City overall and automotive parts manufacturing grew by 34 percent, compared to 7 percent in the City overall. (c) The media cluster (photography, graphics, communications, program and film distribution, radio and TV, advertising, printing, and reproduction of tapes, films, and records) grew by 111 percent in South Etobicoke compared to 11 percent across the City over the past 4-5 years. (d) There are very strong inter-firm linkages in the area, particularly with respect to packaging, machinery manufacturers and repair shops, transportation/logistics operations and chemical manufacturers. - 4 - Area Advantages: (a) The area possesses excellent road and rail infrastructure and is in close proximity to the airport and downtown. (b) There are excellent opportunities for meeting the City’s population targets within the South Etobicoke area without jeopardizing the current supply of employment lands. There is a substantial amount of land currently designated and zoned for residential uses, but currently not built out (approx. 4,500 units) and significant “Avenues” intensification along Lakeshore Boulevard, both consistent with the policy framework established in the Toronto Official Plan Directions Report, Toronto At The Crossroads: Shaping Our Future. (c) There is an increasing supply of new housing units in the area, particularly to the east, that provides accommodation for a range of household types and incomes to meet the City’s housing objectives. (d) South Etobicoke has a robust and scalable telecommunication network that provides a full complement of services to business customers in all employment areas. (e) South Etobicoke is served by a well developed fibre optic network. (f) Deregulation of the telecommunications industry has provided an extremely competitive marketplace decidedly in the customer’s favour in South Etobicoke compared to other jurisdictions in North America. (g) There is an active and innovative business community willing to work in partnership with the City, Province and Federal governments. The report identifies an Action Strategy designed to build on the strengths of the area to contain employment sprawl, ensure employment and assessment growth and retention and provide for the efficient use of existing infrastructure. The main themes of the Action Plan are described below. Create a Positive Investment Climate for South Etobicoke: The report indicates that the most important issue related to the continuing vitality of the employment area is the need for employers and investors to have a greater degree of land use certainty. Decisions need to be made as quickly as possible on the New Toronto Secondary Plan to ensure the integrity of this manufacturing centre. Food/ Automotive/ Media Cluster Initiatives: Several initiatives are identified in the Action Plan to build capacity in the dominant and emerging cluster groups, specifically, food, automotive and media. These initiatives involve the - 5 - participation of numerous stakeholders, including community groups, educational institutions, employment agencies, as well as the municipal and provincial government. Skills Development: The Action Plan also addresses skill development and readiness. The employers in South Etobicoke recognize that modern work environments have increased demand for more computer literate and technically sophisticated employees to operate machinery and equipment. SERP’s current project application to HRDC includes partnership initiatives with local industry, employment agencies, and the federal government to increase labour market skill development and labour force
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