Issues and Strategies Shaping Brampton s Economic Base. Presented by Dennis Cutajar, EcD (F), MSc Brampton Economic Development February 10, 2006

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1 Issues and Strategies Shaping Brampton s Economic Base Presented by Dennis Cutajar, EcD (F), MSc Brampton Economic Development February 10, 2006

2 Introduction In 2005, Brampton Economic Development commissioned a sub-sector study to identify and assess the strengths, weaknesses, opportunities and threats shaping and driving Brampton s local economy now and into the future. With industry input, this study served as a catalyst for the development of an economic competitiveness policy framework for Brampton. 2

3 Premise Why do Cities identify and assess economic clusters? Municipalities have the responsibility to monitor, measure, formulate and enact strategies on local economic competitiveness Employment income generated by economic activity, and associated spin-offs, is a determinant in household formation, consumer spending and demand for municipal services Shape and direction of economic growth determines demand for employment land Alignment with municipal services 3

4 Why Focus on Manufacturing? Dr.Jayson Myers, VP, Canadian Manufacturers and Exports Association Manufacturing is the sector that generates wealth from other countries. It s the single largest investor in research and development. Manufacturing is extremely important and Brampton is well situated to grow even further on the basis of its strong manufacturing sector October 14, 2005 City of Brampton Manufacturing Symposium 4

5 Study Program & Data Sources Spring 2005: Commissioned The Centre for Spatial Economics (Tom McCormack) Summer 2005: Study Completed Fall 2005: Industry Symposium & Blue Ribbon Panel Winter 2005: Policy Framework Defined Data Sources (Place of Work): Statistics Canada, 1996, 2001 Brampton Business Establishment Census (Biannual 2001, 2003, 2005) 5

6 Findings: Employment-Place of Work Manufacturing 33,707 Retail Trade 17,598 Wholesale Trade Health Care & Social Assistance Transportation & Warehousing Admin & Support, Waste Mngt & Remediation Services Accommodation & Food Services* Professional, Scientific & Technical Services Construction Public Administration Other Services (Except Administration) Arts, Entertainment & Recreation Finance & Insurance Real Estate, Rental & Leasing Educational Services Information & Cultural Industries 8,678 8,394 8,271 7,411 6,365 5,315 4,798 4,329 3,558 2,789 2,270 2,152 1, Economic Base Analysis NAICS 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 # of Employees Source: Statistics Canada, 2001 Census (Special Tab); Brampton Economic Development Office, 2003 Brampton Employers Census 6

7 Brampton s Manufacturing Clusters OPPORTUNITIES STRENGTHS 4.0 Chemical Location Quotient Medical Devices Biopharma Precious Metals Production Technology Metal Mfg. Processed Food ITT Automotive Apparel Employment in Brampton

8 Economic Base Analysis: SWOT Transportation & Warehousing 169 Manufacturing 161 Wholesale Trade 145 Retail Trade 124 Construction 116 Waste Mngt & Remediation Services Educational Services Real Estate, rental and leasing Health Care & Social Assistance HIGH CONCENTRATION Other Services (Except Administration) 76 NEAR PROVINCIAL INDEX Accommodation & Food Services* 71 Public Administration 71 LOW CONCENTRATION Professional, Scientific & Technical Services 61 Information & Cultural Industries Arts, Entertainment & Recreation Finance & Insurance Ontario Index Location Quotient: Brampton in Relation to Ontario (Ontario = 100) 8

9 General Economic Base Conclusions Brampton benefits by its location in the GTA a Fortunately, Brampton s location serves to fuel policy premised on positive GTA market growth in the next 15 years a Manufacturing and transportation logistics sectors are vertically integrated, and are the two most important industries in Brampton from a jobs and assessment perspectivea Local economy s most glaring weakness is its foundation on the manufacturing sector. Significant declines in the GTA manufacturing sector, due to international and financial forces, would have profound consequences on employment in Brampton and Peel r Significant under representation in service employment and assessment, namely: professional, technical, science, research and FIRE r 9

10 Opportunity: GTA Employment Projections Industry Present 2011 Manufacturing 545, ,600 Trade 431, ,700 Professional, Technical Services 277, ,100 F.I.R.E. 254, ,500 Health Care 217, ,200 Educational Services 159, ,700 Accommodation and Food 157, ,300 Information, Culture, Recreation 154, ,400 Construction 151, ,400 Transportation and Warehousing 143, ,600 Mgt, Admin Servcies 136, ,400 Other Services 107, ,100 Public Administration 85,600 93,800 Utilities 22,000 23,100 Agriculture, Forestry, Fishing 7,300 8,500 Mining 3,700 3,500 Total 2,856,700 3,257,911 Growth 401, % Approximately 1 million jobs are in Traded Clusters 2011/Present (%) 5.1% 10.0% 28.5% 9.3% 20.2% 4.3% 16.7% 25.6% 9.2% 13.8% 29.9% 22.4% 9.6% 5.0% 16.4% -5.4% 14.0% Source: Centre for Spatial Analysis 10

11 Policy Framework Economic Strategy Brampton s Economic Strategy is focused on two fronts: 1. Retain and grow existing manufacturing, transportation and logistics sector employment; and encourage industries to expand and modernize their operating and capital programs with new technologies/production processes. 2. Diversify local economy by attracting an increased level of Service Sector employment, with a focus on sciencetechnology, information technology, FIRE, and culture, tourism/accommodation sectors in central business district (i.e., Queen Street Corridor and BramWest Mississauga Road and ETR 407 frontage). 11

12 Align Strategy with Municipal Services What Manufacturing Needs from Municipalities: Efficient Transportation and Transit Networks; Reduce Congestion on City and Regional Roads Secured and Uninterrupted Access to Core Physical Services, such as utilities (Water/Wastewater; Power and Gas). Choice of locations in traditional business parks retention of employment land supply is critical to support traded clusters (preserve 407 corridor and Highway 50/427 corridor) Streamline regulation and reduce cost burden: Make it easier and cost effective to do business in Brampton/Region Labour Force Development: Programs to Support New Canadians Investment in education & training, applied research; sharing of best practices which support manufacturing (Need for multi-skilled employees; retraining and innovation demands on the rise) Grow Sheridan Centre for Advanced Manufacturing and Design Technologies Partnership Support Export Development programs for SME s 12

13 Align Strategy with Municipal Services What the Service Sector Needs from Municipalities: A clear delineation, designation and promotion of downtown boundaries Transportation Planning: Access to regularly scheduled transit services near 400 series highway network; Availability of parking in close proximity to office space Community Amenities: Shopping; Recreation; Daycare; Outdoor Parks Cost of doing business: more closely align the cost imbalance between Greenfield and redevelopment/brownfield in strategic locations such as Queen Street Streamlined regulations to encourage office development in priority development locations (all levels of government) Local Political will: Commitment to downtown/central business district Information: land use, real estate and market information to support a firm with its business case analysis Sales and Marketing: actively promote/sell downtown and central corridor Community Planning: Availability of various forms and prices for housing QOL Indicators: Diverse labour pool; education; ethnicity/diversity; etc Entrepreneurship and Innovation Small Business Enterprise Centre 13

14 Thank You! For further information, please contact: Dennis Cutajar, Commissioner Brampton Economic Development City of Brampton, 2 Wellington Street West Brampton, Ontario, L6Y 1L2 T: F: E: dennis.cutajar@brampton.ca Visit is at brampton.ca

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