Issues and Strategies Shaping

Brampton’s Economic Base

February 10, 2006

Presented by Dennis Cutajar, EcD (F), MScBrampton Economic Development

☺

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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.

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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

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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

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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 (Bi-

annual 2001, 2003, 2005)

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8,271

8,394

8,678

17,598

33,707

481

1,310

2,152

2,270

2,789

3,558

4,329

4,798

5,315

6,365

7,411

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Information & Cultural Industries

Educational Services

Real Estate, Rental & Leasing

Finance & Insurance

Arts, Entertainment & Recreation

Other Services (Except Administration)

Public Administration

Construction

Professional, Scientific & Technical Services

Accommodation & Food Services*

Admin & Support, Waste Mngt & Remediation Services

Transportation & Warehousing

Health Care & Social Assistance

Wholesale Trade

Retail Trade

Manufacturing

# of EmployeesNAICS

Findings: Employment-Place of Work

Source: Statistics Canada, 2001 Census (Special Tab); Brampton Economic Development Office, 2003 Brampton Employers Census

Economic BaseAnalysis

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Brampton’s Manufacturing Clusters

4000

Employment in Brampton

8000

STRENGTHSOPPORTUNITIES

Loca

tion

Quo

tient

4.0

3.0

1.0

2.0

0.0

Chemical

Processed Food

ITT

Automotive

Biopharma

Production Technology

Metal Mfg.

Apparel

Medical Devices

Precious Metals

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Economic Base Analysis: SWOT

116

124

145

161

169

45

48

52

61

71

71

76

76

87

90

93

0 20 40 60 80 100 120 140 160 180

Finance & Insurance

Arts, Entertainment & Recreation

Information & Cultural Industries

Professional, Scientific & Technical Services

Public Administration

Accommodation & Food Services*

Other Services (Except Administration)

Health Care & Social Assistance

Real Estate, rental and leasing

Educational Services

Waste Mngt & Remediation Services

Construction

Retail Trade

Wholesale Trade

Manufacturing

Transportation & Warehousing

Location Quotient: Brampton in Relation to Ontario (Ontario = 100)

HIGH CONCENTRATION

NEAR PROVINCIAL INDEX

LOW CONCENTRATION

Ontario Index

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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 Peelr

• Significant under representation in service employment and assessment, namely: professional, technical, science, research and FIRE r

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Opportunity: GTA Employment ProjectionsIndustry Present 2011

Manufacturing 545,900 573,600 Trade 431,400 474,700 Professional, Technical Services 277,200 356,100 F.I.R.E. 254,700 278,500 Health Care 217,300 261,200 Educational Services 159,900 166,700 Accommodation and Food 157,900 184,300 Information, Culture, Recreation 154,000 193,400 Construction 151,500 165,400 Transportation and Warehousing 143,800 163,600 Mgt, Admin Servcies 136,600 177,400 Other Services 107,900 132,100 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 401,211

14.0%

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%

Approximately 1 million jobs are in Traded ClustersSource: Centre for Spatial Analysis

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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 ofService Sector employment, with a focus on science-technology, 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).

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Align Strategy with Municipal Services• What Manufacturing Needs from Municipalities:

– Efficient Transportation and Transit Networks; Reduce Congestionon City and Regional Roads

– Secured and Uninterrupted Access to Core Physical Services, suchas 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 andcost 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

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• 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

Align Strategy with Municipal Services

Thank You!For further information, please contact:

Dennis Cutajar, CommissionerBrampton Economic Development

City of Brampton, 2 Wellington Street WestBrampton, Ontario, L6Y 1L2

T: 905-874-2698F: 905-874-2149

E: dennis.cutajar@brampton.caVisit is at brampton.ca