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TOWN OF INNISFIL COMMITTEE OF THE WHOLE MEETING WEDNESDAY ... TOWN OF INNISFIL COMMITTEE OF THE WHOLE MEETING WEDNESDAY ... Document Transcript

  • TOWN OF INNISFIL COMMITTEE OF THE WHOLE MEETING WEDNESDAY, SEPTEMBER 15, 2004 IMMEDIATELY FOLLOWING COUNCIL MEETING AGENDA _____________________________________________________________ 1. OPENING OF MEETING BY THE MAYOR 2. NOTIFICATIONS OF PECUNIARY INTEREST 3. DEPUTATIONS 3.1 The Innisfil Community Events Corporation will make a presentation to the Stroud Skate Board Park Committee. 3.2 The South Simcoe Economic Alliance will present their “Business Attraction Strategy & Competitive Analysis”. 3.3 Mr. Wes Cyr, Wastewater Services, will update Council on the Town of Innisfil Nutrient Management System. …/
  • COMMITTEE OF THE WHOLE 09/15/04 Page 2 of 4 4. COMMUNICATIONS AND PETITIONS 4.1 Correspondence regarding concerns over the lighting at the corner of Hwy 89 and the 5th Sideroad in Cookstown. Recommendation (Utilities Services) That the correspondence be received and advise that a request for lighting at the corner of Hwy 89 and the 5th Sideroad will be forwarded to the Ministry of Transportation. 4.2 Correspondence from the Township of Essa re: Late School Bus for Secondary Schools and a request to appoint one member to sit on the SEAT Committee Correspondence from the Innisfil Accessibility Advisory Committee requesting Council to appoint Councillor Gord Wauchope as the Town of Innisfil representative. Recommendation (General Government) That the correspondence be received and advise Council agrees to appoint Councillor Gord Wauchope from the Town of Innisfil to sit on the “SEAT” Committee which will be addressing busing issues at Secondary Schools. 4.3 Correspondence from E. Byron, a resident of Innisfil regarding concerns over unsafe road conditions as a result of trucks parking on Hwy 89 in front of the Tim Horton’s Restaurant in Cookstown. Recommendation (Roads Services) That the correspondence be received and advise Council will forward this request to the Ministry of Transportation, the Director Planning and Development and the South Simcoe Police Service to review and report.
  • COMMITTEE OF THE WHOLE 09/15/04 Page 3 of 4 5. REPORTS FROM AD HOC COMMITTEES 5.1 Report from the Innisfil Accessibility Advisory Committee regarding an accessibility audit of the Churchill Community Centre. Recommendation (Councillor Wauchope) That the accessibility audit of the Churchill Community Centre be received and forwarded to the Director of Community Services for consideration in the 2005 budget process. 6. REPORTS OF MUNICIPAL OFFICIALS - VARIOUS BOARDS & COMMISSIONS Councillor Pring – South Simcoe Alliance – Sept. 7/04 Councillor Van Berkel – Library Board – Sept. 13/04 Councillor Dollin – Nottawasaga Valley Conservation Authority – Sept. 10/04 Councillor Wauchope – Innisfil Accessibility Advisory Committee – Sept. 7/04 Deputy Mayor Baguley – County Council/Human Services – Sept. 14/04 7. UNFINISHED OR NEW BUSINESS 7.1 Staff Report from the Director of Planning and Development re: Response to “Places to Grow” Discussion paper Recommendation (Planning and Development) That the staff report submission paper titled “Response to Places to Grow Discussion Paper” be received, endorsed as the position of the Town of Innisfil and forwarded to the Province with the discussion paper submitted by the Director of Planning and Development. *Note: Report will be provided September 13, 2004
  • COMMITTEE OF THE WHOLE 09/15/04 Page 4 of 4 8. ANNOUNCEMENTS AND ENQUIRIES - MEMBERS OF COUNCIL 9. COMMENTS ON INFO-LIST ITEMS Recommendation (General Government) That the Information List be accepted as printed. 10. QUESTION PERIOD FOR MEDIA AND PUBLIC - RE: AGENDA ITEMS 11. ADJOURNMENT September 19/04
  • BUSINESS ATTRACTION STRATEGY & COMPETITIVE ANALYSIS Town of Innisfil Town of New Tecumseth Township of Adjala – Tosorontio Township of Essa FINAL REPORT: AUGUST 2004 Prepared for: Nottawasaga Futures Corporation urbanMetrics inc. market, economic and strategic advisors 144-146 Front Street West, Suite 460 Toronto, ON M5J 2L7
  • Business Attraction Strategy and Competitive Analysis urbanMetrics inc. market, economic and strategic advisors 144-146 Front Street West, Suite 460 Toronto, ON M5J 2L7 (416) 351-8585 (416) 345-8586 (fax) August 3, 2004 www.urbanmetrics.ca Valerie Ryan Nottawasaga Futures P.O. Box 184, 233 Church St. S Alliston, On L9R 1V5 Dear Ms. Ryan SUBJECT: Final Report As requested, please find attached fifteen copies of our South Simcoe Business Attraction Strategy and Competitive Analysis - Final Report. Based on our analysis, we are confident that South Simcoe is competitively positioned to attract new business investment. The Area is able to satisfy a wide range of locational requirements of industry and its proximity to the Barrie and Greater Toronto Area will be of considerable benefit to the area in its efforts to attract both interest and investment. We would note however, that much of the anticipated success will depend on the developing a consistent marketing message that profiles a positive local business environment and the introduction of fully serviced, high quality industrial land. We welcome the upcoming opportunity to speak with your local Councils, at which time we will present our results and recommendations as to how best to position local economic development activities. Yours truly, Lauren Millier Principal urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Table of Contents 1 INTRODUCTION .......................................................................................................................... 1 1.1 BACKGROUND ..........................................................................................................................5 1.2 OUR APPROACH.......................................................................................................................6 2 REGIONAL PROFILE................................................................................................................... 7 2.1 REGIONAL CONTEXT.................................................................................................................7 2.1.1 Transportation Networks.................................................................................................7 3 LOCAL DEMOGRAPHIC PROFILES......................................................................................... 11 3.1 TOWNSHIP OF ADJALA-TOSORONTIO .......................................................................................11 3.2 TOWN OF NEW TECUMSETH ....................................................................................................12 3.3 TOWN OF INNISFIL ..................................................................................................................13 3.4 TOWNSHIP OF ESSA ...............................................................................................................13 3.5 DEMOGRAPHIC SUMMARY .......................................................................................................14 4 MACRO DEMOGRAPHIC COMPARISONS............................................................................... 17 4.1 COMPARATIVE REGIONS DEFINED ...........................................................................................17 4.2 POPULATION COMPARISONS ...................................................................................................18 4.3 AGE COMPARISONS................................................................................................................18 4.4 EDUCATION COMPARISONS .....................................................................................................19 4.5 LABOUR FORCE INDICATORS ...................................................................................................19 4.6 LABOUR FORCE BY OCCUPATION COMPARISONS ......................................................................20 4.7 SUMMARY..............................................................................................................................21 5 TARGET SECTOR IDENTIFICATION – PROVINCIAL CONTEXT ............................................ 22 5.1 SUMMARY OF MACRO ECONOMIC TRENDS ...............................................................................22 5.2 IDENTIFICATION AND FORECAST PERFORMANCE OF KEY EXPORT SECTORS ...............................24 6 TARGET SECTOR IDENTIFICATION – LOCAL CONTEXT...................................................... 26 6.1 ANALYSIS OF INDUSTRY SPECIALIZATION..................................................................................26 6.2 TOWNSHIP OF ADJALA-TOSORONTIO .......................................................................................26 6.3 TOWN OF NEW TECUMSETH ....................................................................................................27 6.4 TOWN OF INNISFIL ..................................................................................................................27 6.5 TOWNSHIP OF ESSA ...............................................................................................................28 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 6.6 SUMMARY..............................................................................................................................28 6.7 STUDY AREA INDUSTRY CONCENTRATIONS ..............................................................................28 6.7.1 Agriculture.....................................................................................................................29 6.7.2 Manufacturing ...............................................................................................................29 6.8 REGIONAL LOCATIONAL QUOTIENTS ........................................................................................30 6.8.1 City of Barrie .................................................................................................................30 6.9 TOWNSHIP OF BRADFORD WEST GWILLIMBURY ........................................................................31 6.10 BROAD TARGET SECTOR IDENTIFICATION .............................................................................31 7 COMPARATIVE ANALYSIS....................................................................................................... 33 7.1 GENERAL COMPARATORS .......................................................................................................34 7.1.1 Overall Results .............................................................................................................35 7.2 BUSINESS CASE-SPECIFIC COMPARATORS ..............................................................................35 7.3 EMPLOYEE COMPENSATIONS COSTS .......................................................................................36 7.4 LAND VALUES ........................................................................................................................37 7.5 ELECTRICITY RATES ...............................................................................................................37 7.6 MUNICIPAL TAX RATES ...........................................................................................................38 7.7 BUSINESS CASE SUMMARY .....................................................................................................38 7.8 OVERALL CONCLUSION ...........................................................................................................39 8 COMMUNITY SWOT ANALYSIS ............................................................................................... 40 9 INDUSTRY SWOT ANALYSIS ................................................................................................... 45 9.1 SPECIFIC TARGET SECTORS ...................................................................................................46 10 BUSINESS ATTRACTION PLAN ............................................................................................... 53 10.1 WHAT DRIVES SITE SELECTION? .........................................................................................53 APPENDIX A – COMPARATIVE ANALYSIS BACKGROUND APPENDIX B – FOOD PROCESSING GROWTH PROSPECTS APPENDIX C – KEY INFORMANTS urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Executive Summary In the spring of 2004, Nottawasaga Futures completed a Business Attraction Strategy and Competitive Analysis for the communities of South Simcoe. The objective of this work was to develop key messaging aimed at recruiting new businesses and entrepreneurs to the area and to identify the necessary actions on the part of both Nottawasaga Futures and the participating communities to further this effort. In promoting economic growth in the region, Nottawasaga Futures is ensuring that local communities remain vibrant and competitive, and have the tools necessary to respond to a marketplace that has become increasingly global in nature. The approach in completing this study has included a range of efforts: o Community and Economic Profiling; o Sectoral and Employment Concentration Analysis; o Stakeholder Consultation with Municipalities, Local Business Leaders and Provincial Agencies; o Community Comparative Analysis; o SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis; and o Target Sector Identification. Having completed this work an action plan was developed that included marketing messages to assist with ongoing local economic development activities and a longer-term framework for successfully attracting future investment. The following discussion summarizes the key findings as it relates to the positioning of South Simcoe for future business attraction. Summary of Findings o Broadly defined the South Simcoe area demonstrates a significant concentration in agriculture, public administration and manufacturing. Based on a review of industry concentration in the study area and an analysis of the economies of agglomeration and linkages in Simcoe County, target industries for the region were identified as Food Processing, Plastics and Manufacturing in particular fabricated metal manufacturing, machinery manufacturing and chemical manufacturing. o Based on Ontario’s export base and the pattern of business investment in the province over the last 5 years, the Province of Ontario, through the Ministry of Economic Development and Trade 1 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis and the Ontario Investment Service is promoting Ontario as having locational and competitive advantages in Automotive, Chemicals, Food, Machinery and Plastics. In discussion with provincial representatives, there is keen interest in communities outside of the traditional urban areas. The promotion of smaller urban/rural locations across the Province further supports the investment attraction efforts of Nottawasaga Futures and the communities of South Simcoe. o A comparative analysis of the study area with a six other ‘competitive’ jurisdictions suggests that South Simcoe is well positioned in its efforts to attract business investment based on key site location factors. The small margin of difference between the Study Area and the select municipalities however, heightens the importance of the marketing message and the positive business environment that is required to advance interest and investment in the area. o From the perspective of attracting and retaining business investment, the South Simcoe area is well connected to Central Ontario because of its access to Highway 400, a key artery for the shipment of goods by truck into and out of the GTA. In addition, there is the network of County roads that provide for alternate east west routes around the GTA to markets in Eastern and Southwestern Ontario and the northern U.S. o Businesses situated in South Simcoe are also strategically located to take advantage of inter- modal rail services offered by Canada’s two international rail systems – the CP terminal in Etobicoke and the CN terminal in Brampton. o South Simcoe is approximately 60 kilometres from Toronto’s Pearson International Airport, Canada’s busiest airport, which in 2002 handled more than 308,000 tonnes of commercial cargo. o In targeting Food Processing, Plastics and manufacturing, the study area of New Tecumseh, Innisfil, Essa and Adjala-Tosorontio has a competitive advantage relative to other jurisdictions in the supply of skilled and semi-skilled labour to prospective businesses. o Access to available labour force is a major consideration in selecting a business location. Within 25 kilometres of the communities of Beeton, Angus, Alliston and Alcona there is a labour force pool that approaches 170,000 people. o The most significant impediment to future economic development efforts however, is the lack of zoned and serviced industrial land in a variety of parcel sizes. The lack of availability of vacant rental/leaseable space is a barrier to attracting industry to the area. o Comparative jurisdictions all benefit from an inventory of serviced, ready to go industrial land as well as municipally operated industrial parks. 2 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis o Both the Ministry of Economic Development and Trade and the Ministry of Agriculture and Food have indicated that the majority of leads that they will respond to require serviced ready to go industrial sites. o Due to the lack of industrial locations, the study area is not benefiting from the economies of agglomeration – the concentration of products and services in the study area. A significant number of businesses import products and services from outside the region, citing the lack of availability locally and the perception of higher costs. o The current inventory of industrial land in the study area, if serviced, would prove very attractive to new and existing businesses, particularly those looking to relocate from the GTA. A significant number of local businesses have indicated their concern over the lack of serviced industrial to accommodate future expansion. o The study area needs to develop a more focused approach to its’ marketing and investment attraction efforts. More attention must be given to developing a consistent and relevant marketing message with respect to the advantages and opportunities for doing business in the area. o Understanding the decision-making imperatives that govern site selection is fundamentally important to developing a communication/marketing strategy. At the outset, Nottawasaga Futures needs to develop its marketing proposition around as many of the basic industry requirements as possible and couple this with success stories as they happen as well as key profiles of companies already in the South Simcoe market. o It is equally important that staff and resource persons, business ambassadors and key municipal officials communicate these messages clearly when meeting with clients, site selectors as well as other influencers. 3 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 1 Introduction Nottawasaga Futures is dedicated to the promotion of economic growth in the South Simcoe area (the “Study Area”), a jurisdiction that is comprised of the following municipalities: • Town of Innisfil; • Town of New Tecumseth; • Township of Adjala-Tosorontio. • Township of Essa; and, • Town of Bradford West Gwillimbury. urbanMetrics inc. has been retained by Nottawasaga Futures to undertake a Business Attraction Strategy and Competitive Analysis and develop the key messaging to be contained in a business attraction strategy for the following four municipalities (“Study Area” see Figure 1-1) located within the South Simcoe area:1 • Town of Innisfil; • Town of New Tecumseth; • Township of Adjala-Tosorontio; and, • Township of Essa. On-going initiatives aimed at recruiting new businesses and entrepreneurs to these municipalities will help to ensure that the region remains vibrant and competitive within an increasingly global context. Nottawasaga Futures is focused on ensuring that the entire South Simcoe area has the infrastructure, the labour force, and “the right message” to meet the needs of the future. 1 Bradford West Gwillimbury, which is also represented by the NCEDC, declined to participate. 4 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Formatted: Font: Bold FIGURE 1-1: PARTICIPATING MUNICIPALITIES (“STUDY AREA”) Springwater Clearview Barrie Grey Highlands Innisfil Essa Georgina Mulmur Adjala- Melancthon Tosorontio Bradford HWY 48 West East Gwillimbury Gwillimbury 89 HWY New Tecumseth Shelburne Newmarket HWY 1 Mono Whitchurch- HWY 40 Stouffville 0 Aurora Amaranth HWY 404 0 9 King HWY Orangeville Richmond Hill Study Area Caledon Markham Formatted: Font: 8 pt, Bold SOURCE: urbanMetrics inc. 1.1 Background In light of the range and nature of enterprises representing the “new economy”, coupled with the pressures for business to compete globally, communities throughout Ontario find themselves increasingly competing on a global stage for new business investment. In an effort to sustain and expand local economic activity, Ontario communities must deal with a series of local issues. These include demographic shifts, an aging workforce, labour skills development, an aging infrastructure of hard services, the lack of “new economy” infrastructure, the suitability of existing industrial lands and the opportunities for additional growth, the availability of built commercial and industrial real estate as well as other economic constraints. In addressing the situation, as it relates to constituent members of the South Simcoe Economic Development Committee, it is important to consider the following issues: • Between 60 and 80% of increased industrial output and associated employment originates with existing local businesses. As a result, these businesses provide most of the investment for new community economic initiatives and infrastructure and often serve to attract new competitive and/or complimentary industrial investment; 5 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis • Although the primary engine of local and regional economic development is shifting from one based on mass production industries and low skill service jobs to a more sophisticated technology and knowledge-intensive economy of goods and services, there are a number of opportunities within the “traditional” economy. Municipalities seeking to improve their economic position must develop a comparative advantage relative to competitor jurisdictions in the provisioning of an adequate labour force, hard and soft services and other infrastructure that allow locally based firms to effectively compete in the local, regional and global marketplaces; • Infrastructure, amenities, and quality of life within communities are becoming increasingly important location factors in retaining and attracting private sector investment; • The availability of skilled labour is the most complicated factor a company considers when making a location decision; and • The private sector is increasingly becoming a partner with municipalities in economic development and marketing. This is especially true with regard to the development of public-private partnerships in the delivery of services and development of infrastructure that would not be possible using municipal financing mechanisms alone. 1.2 Our Approach In completing this report, urbanMetrics inc. has assembled relevant information made available through direct community consultation, a review of background material provided to us by the Nottawasaga Futures, as well as other industry sector information. We have also drawn on our experience in the area of corporate site selection and economic development. The Report was completed in two phases. Phase I of this study comprised: 1. Community and Economic Profiling; 2. Sectoral and Employment Concentration Analysis (Location Quotients); 3. Stakeholder Consultation with Municipalities, Local Business Leaders and Provincial Agencies; and; 4. Preliminary Target Sector Identification. Phase II of this report comprised: 5. Community Comparative Analysis; 6. Community based SWOT Analysis; 7. Target Industry SWOT Analysis; and 8. Action Plan and Marketing Messages. 6 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 2 Regional Profile The following section examines the regional profile of the Study Area with particular attention being paid to the locational context. 2.1 Regional Context South Simcoe is well positioned within South Central Ontario and is within 600 kilometres or less from key urban markets in Ontario and in the United States. Formatted: Font: Bold, Font color: White FIGURE 2-1: REGIONAL CONTEXT 600 Kilometres MAT AGAMI / VAL-DOR / LA T UQUE E 300 Kilometres / / QUEBEC / SAULT ST E MARIE SUDBURY // / < / / NORT H BAY MANIW AKI / / / PLESSISVILLE / SOREL / / / / ASBEST OS / / / 100 Kilometres / / /// / / SHERBROOKE / / : // IBERVILLE / / / // / / OTTAWA / / PERT H / / / BARRIE AUGUSTA / < < KINGST ON / / BELLEVILLE / MONTPELIER TORONTO KIT CHENER / <// HAMILT ON CONCORD / < BRANT FORD < MADISON / / / / ST CAT HARINES ALBANY < LANSING < SARINA CHAT HAM / / W INDSOR < BOSTON HARTFORD < PROVIDENCE < / ORILIA BARRIE / HARRISBURG < < TRENTON Cities INDIANAPOLIS < COLUMBUS / Cities < SPRINGFIELD < BRADFORD / / NEW MARKET < Provincial / State Capital < DOVER : National Capital / : < ANNAPOLIS CLARINGT ON / ORANGEVILLE WASHINGTON Study Area Formatted: Font: 8 pt SOURCE: urbanMetrics inc. < 2.1.1 Transportation Networks The South Simcoe area is linked to these urban markets through a myriad of accessible transportation options, including a sophisticated system of expressways, rail corridors and airports. These are summarised below. 7 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Expressway Access The Study Area is well connected to the rest of South Central Ontario primarily through Highway 400. Highway 400 is a key artery for the shipment of goods by truck between Simcoe County and the GTA. Formatted: Font: Bold FIGURE 2-2: EXPRESSWAY ACCESS Formatted: Font: 8 pt SOURCE: urbanMetrics inc. On an average day, almost 9,000 trucks carry over $200 million worth of goods on Highway 400 between Simcoe County and the GTA, representing an increase of 40% from 1995.2 In addition to the movement of goods, Highway 400 (and by extension Highway 11) plays an important role in the tourist/recreational industry. Based on an MTO study, the Broader Georgian Lakelands region (Muskoka, Simcoe, Grey and Huron Counties) accounted for almost 10 million visitors, 26,000 jobs and almost $1 billion in tourism expenditures in 1999.3 In a regional context, Highway 400 gives South Simcoe and the population in general, access to Highways 401 and 407, which in turn provides the Canadian link to the “NAFTA Super-highway” 2 Ontario Ministry of Transportation, Simcoe Area Transportation Network Needs Assessment, Executive Summary June 2002, p.2 3 Ibid, p.2 8 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis connecting Ontario with the I-69, I-94, 1-75 and numerous other associated corridors that facilitate the movement of goods between Mexico, US, and Canada. Highway 401 is the spine of the Canadian manufacturing sector and plays a vital role in facilitating trade and tourism between Canada and the US. Since the signing of NAFTA in 1994, truck traffic across the US-Canadian border has doubled. Current forecasts suggest that traffic volumes will double again by 2010. Within Southern Ontario, the significance of truck traffic is underscored by cross-boarder shipping activity at the Ontario-Michigan border via the Windsor-Detroit and Sarnia-Port Huron crossings. In 2002, bi-national surface trade at these two points amounted to US$146-million, or 42% of the total bi-national trade. By 2015 the total value of shipments through Windsor-Detroit are forecast to increase to US$193 billion.4 In order to accommodate the significant amount of future growth within Simcoe County as a whole, there are a number of highway improvements planned within the Simcoe County area in the mid to long term. Figure 2-3 shows the proposed alignment of the Bradford Bypass from the extended Highway 404 to Highway 400. It is anticipated that extension and widening of Highway 404 and the Bradford Bypass will both be completed by 2011. In addition, it is anticipated that Highway 400 will also have to widen from 6 to 8 lanes by 2011 and expand to 8 to 10 lanes by 2021. In addition, figure 2-3 also shows the proposed extension of Highway 427 northward from Highway 7 to Barrie as well as the proposed Bradford Bypass connecting Highway 400 to Highway 427. FIGURE 2-3: BRADFORD BYPASS AND PROPOSED 427 EXTENSION SOURCE: Ontario Ministry of Transportation 4 Canada-US-Ontario-Michigan Border Transportation Partnership (2002) Planning/Need and Feasibility Study. 9 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Rail Access Rail is utilized for the transportation of larger bulky goods that are not time-sensitive. With today’s “just in time” based economy rail transport will continue to play a secondary role to the trucking of goods. Businesses located in the South Simcoe are strategically located to take advantage of inter-modal rail services offered by Canada’s two international rail systems: Canadian National and Canadian Pacific Railways. South Simcoe is in proximity to the CN intermodal terminal in Brampton and the CP terminal in Etobicoke. Furthermore, industries in South Simcoe can utilize BCRY’s trans-loading facility at Utopia, thus providing access to CPR’s North American network. Air Access While South Simcoe is serviced by a small local airport (Lake Simcoe Regional Airport), the area is not serviced with regularly scheduled cargo or passenger services. However, businesses are approximately ±60 kilometres from Toronto Pearson International Airport, Canada’s busiest airport. In 2002, over 308,000 tonnes of cargo were processed at Pearson. 10 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 3 Local Demographic Profiles Nottawasaga Futures has prepared comprehensive community profiles for the participating municipalities. This section briefly describes the individual community profiles 3.1 Township of Adjala-Tosorontio Of the four participating municipalities, Adjala-Tosorontio has the smallest population (10,082) in part due to its rural nature. Despite this, Adjala-Tosorontio still posted a higher growth rate than the province overall (7.7% vs. 6.1%) between 1996-2001. By 2026, the population of Adjala-Tosorontio is projected to increase to 14,200 persons, an increase of 41% or 1.6% per year. This growth rate is below that of Simcoe County as a whole, which is projected to grow by 64% over the 2001-2026 period.5 Figure 3-1 examines the breakdown of the population by age. Overall between 1996-2001 the main working age cohort of 24-54 increased by 5%. Within the distinct age cohorts, the largest population increase occurred in the 55 to 64 age cohort with the largest decrease occurring in the 25-34 age cohort which is typically viewed as the labour force feeder group. With the ageing of the baby boom population, labour shortages are anticipated in the mid to longer term. However, the 5-19 age cohort, which represents the future employment base, is increasing suggesting that in the longer term there may be an improvement in the labour force supply, FIGURE 3-1 provided there are sufficient ADJALA- TOSORONTIO AGE BREAKDOWN employment opportunities. 2,500 In terms of educational attainment, 33% of the 2,000 population 20 years and 1,500 older have Trade 1996 Certificates or Non- 1,000 2001 University Diplomas with an 500 additional 11% possessing University Degrees. When 0 19 24 34 44 54 64 74 4 + compared to the province, to 75 to to to to to to to 0 5 20 25 35 45 55 65 the Township has a higher percentage of residents with SOURCE: urbanMetrics inc., based on Statistics Canada 1996 and 2001 Census of Canada a trade certificate (33% vs. 27.3%) than those possessing university degrees (10.9% vs. 19%). Of all the participating municipalities Adjala-Tosorontio has the second highest labour force participation rate and the highest employment-participation ratio. 5 Hemson Consulting Ltd., Population, Households & Employment Forecasts Update Simcoe County, January 2004 (Draft) 11 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis The resident labour force base is largely comprised of persons within the Sales and Service category followed by Trades, Transportation and Equipment Operators. 3.2 Town of New Tecumseth In 2001, the population of the Town of New Tecumseth reached 26,140 persons. Between 1996 and 2001, New Tecumseth recorded a population increase of 14.1%, which was significantly higher than the Provincial average, which was 6.1%. According to a recently released draft report by Hemson Consulting, by 2026 New Tecumseth is projected to reach a population of 37,200, which translates into an average annual growth rate of 1.7% 2001-2026. New Tecumseth’s share of Simcoe County’s total growth between 2021-2026 is expected to be 4.6%.6 Figure 3-2 illustrates the age breakdown of the population. Overall between 1996 and 2001 the main working age cohort of 24-54 increased by 14%. Within the distinct age cohorts, the largest population increase occurred in the 75+ age cohort with the largest decrease occurring in the 25-34 age cohort. This is likely attributed to the fact that residents leave the area for education and employment opportunities elsewhere. The 15-19 age cohort, which represents the future employment base, is increasing, suggesting improved labour force capacity, should employment opportunities be available. In terms of education, 30.6% of the population aged 20 years and over, obtained at least a Trade Certificate or Non-University Diploma with just over 11% FIGURE 3-2 NEW TECUMSTH AGE BREAKDOWN obtaining a University Degree. When compared to the Province as a whole, New Tecumseth has a 6,000 slightly higher proportion of its 5,000 population with a Trade Certificate 4,000 or Diploma (30.6% vs. 27.3%), and a significantly lower proportion with 3,000 1996 a University degree (11% vs. 19%). 2001 2,000 Similar to the Township of Adjala- 1,000 Tosorontio the majority of the resident labour force falls into the 0 + 4 19 24 34 44 54 64 74 category of Sale and Service to 75 to to to to to to to 0 5 20 25 35 45 55 65 followed by Trades, Transportation and Equipment Manufacturers. SOURCE: urbanMetrics inc., based on Statistics Canada 1996 and 2001 Census of Canada 6 Ibid. 12 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 3.3 Town of Innisfil Of the four municipalities, Innisfil has the largest population 28,665 (2001). Between 1996-2001, Innisfil posted a population increase of 16%, the highest among the participating South Simcoe municipalities. By 2026, Innisfil is projected to reach a population of 44,800 persons, which translates into an average annual growth rate of 2.3% between 2001-2026.7 Figure 3-3 illustrates the age breakdown of the population. Overall between 1996 and 2001 the main working age cohort of 24-54 increased by 18%. Within the distinct age cohorts the largest population increase occurred in the 45-54 age cohort with the largest decrease occurring in the 25-34 age cohort. In the long term the 5-19 age cohort, which represents the future employment base, is increasing suggesting improved labour force capacity should employment opportunities be available. In terms of education, 33.8% of FIGURE 3-3 the population 20 years and INNISFIL AGE BREAKDOWN over have obtained a Trade Certificate or Non-University 7,000 Diploma with an additional 7.2% 6,000 possessing a University Degree. 5,000 When compared to the Province 4,000 as a whole, Innisfil has a higher 3,000 1996 proportion of its population with 2001 a trade certificate diploma 2,000 (33.8% vs. 27.3%), and a 1,000 significantly lower proportion 0 with a university degree (7.2% + 4 19 24 34 44 54 64 74 to 75 to to to to to to to 0 5 20 25 35 45 55 65 vs. 19%). The majority of the resident SOURCE: urbanMetrics inc., based on Statistics Canada 1996 and 2001 Census of Canada labour force is contained within the Sales and Service followed by Trades, Transportation and Equipment Manufacturers. 3.4 Township of Essa In 2001 Essa’s population was 16,800 which was an increase of 2.7% over is 1996 population. Historically of the four participating municipalities, Essa has shown the slowest growth rate. It is projected that Essa’s population will increase to 21,100 in 2026, a growth rate of 1% per annum over the 2001-2026 period. Essa is expected to contribute 1.8% of Simcoe County’s overall population growth between 2001-2026.8 7 Ibid. 8 Ibid. 13 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Figure 3-4 illustrates the age FIGURE 3-4 breakdown of the population. ESSA AGE BREAKDOWN Between 1996 and 2001, the working age cohort of 24-54 4,500 increased by only 1%. Within 4,000 the distinct age cohorts, the 3,500 3,000 largest population increase 2,500 occurred in the 75+ age 2,000 1996 cohort with the largest 1,500 2001 decrease occurring in the 25- 1,000 34 age cohort. In the long 500 0 term, the 5-19 age cohort, 19 4 24 34 44 54 64 74 + to 75 which represents the future to to to to to to to 0 5 20 25 35 45 55 65 employment base, is SOURCE: urbanMetrics inc., based on Statistics Canada 1996 and 2001 Census of Canada increasing suggesting there will likely be a sufficient labour base should employment opportunities be available. Of the four municipalities, the Township of Essa has the highest proportion of its population aged 20 years with a Trade Certificate or Non-University Diploma (34%). An additional 8.5% have a University Degree. As with the other three participating municipalities, the proportion of the population with a Trade Certificate of Non-University Diploma is slightly higher than the provincial average whereas the proportion of the population with a University Degree is significantly lower than the provincial average. 3.5 Demographic Summary Of the four municipalities, the two more urbanized municipalities have shown the strongest population growth. Of potential concern however, is that in all four municipalities the population within the 25-34 age cohort has decreased between 1996-2001 by an average of 17%. This is most likely the result of many individuals migrating out of the area in order to take advantage of educational or employment opportunities in other regions. If this trend continues, area businesses could begin to experience recruiting and retention issues for entry and mid-level positions. This may also present itself as an issue for business attraction as it will detract from the overall quality of the local labour force (e.g. capacity and sustainability). In terms of educational attainment, the Study Area is arguably at a comparative disadvantage relative to the Province as a whole, with respect to the number of people who have completed some form of university education. As a result, firms within the area may encounter difficulty recruiting individuals locally for senior positions, such as managers, engineers and scientific researchers. In contrast to individuals with university education, the Study Area relative to the Province has a higher percentage of residents with post-secondary education gained through non-university programs, including those related to trade certificates or diplomas. Thus, the Study Area may have a comparative 14 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis advantage relative to other jurisdictions in the supply of skilled and semi-skilled labour to prospective businesses. With respect to the availability of labour in each of the local municipalities, it is also appropriate to consider the labour force pool within a reasonable commuting distance of each of the South Simcoe ‘urban’ centres. Based on data provided by Statistics Canada we see evidence of a labour force that commutes from Barrie, Wasaga Beach, Clearview and Bradford-West Gwillimbury into the communities of South Simcoe. Based on a 25-kilometre radius of Alcona, Angus, Alliston and Beeton the study area has a potential resident labour as high as 173,000 people (Figure 3-5). In terms of labour force dynamics, the Study Area compares very favourably. The participation rate in 2001 for the Study Area was 70.9% compared to 67.3% for the province. A higher participation rate indicates that a large proportion of the working age population is either employed or actively looking for work. A higher participation rate may also reflect optimism towards the availability of jobs. The employment-population ratio of the Study Area is also higher than that of the Province (68% vs. 63.2% respectively). A high employment-population ratio usually reflects that an economy is creating jobs and employing a large percentage of its working age population. The high participation rate and employment-population ratio in the Study Area is reflected in the relatively low unemployment rate compared to the Province (4% vs. 6.1% respectively), suggesting a stable, healthy local economy. 15 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis FIGURE 3-5 AVAILABLE LABOUR FORCE Total Population 15 years and over by Labour Force Activity: 25 km radius from Angus, Alliston, Alcona and Beeton 2001 CensusLabour Force by Sex Angus Alliston Alcona Tottenham Total Population 15 years and over by Labour Force Activity 133,390 82,679 173,557 98,675 In the labour force 96,100 61,438 125,156 73,330 Employed 91,174 59,014 119,062 70,714 Unemployed 4,975 2,374 6,134 2,601 Not in the labour force 37,251 21,268 48,422 25,350 urbanMetrics inc. market, economic and strategic advisors 16 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 4 Macro Demographic Comparisons 4.1 Comparative Regions Defined In completing a competitive analysis, it is important to identify the locational elements that demonstrate the strengths and weaknesses of the Study Area relative to other comparative municipalities. This often focuses on select demographics and labour force statistics. For comparative purposes we have positioned the Study Area within the Kitchener-Waterloo-Barrie Economic Region, which is a standard unit classified by Statistics Canada. An Economic Unit is defined as an area that contains similar socio-economic characteristics and contains counties which define the zone of influence of a major urban centre or metropolitan area. Figure 4-1 illustrates the component municipalities/counties of the Kitchener-Waterloo-Barrie Economic Region: Formatted: Font: Bold FIGURE 4-1: COMPETITIVE AREA – THE ECONOMIC REGION Simcoe County Essa Innisfill Innisfill Essa Adjala- Adj ala- Tosorotio Tosorotio New County of Tecumseth Tecumseth Dufferin County of Wellington Region of Waterloo Study Area Barrie Census Agglomeration Kitchener-Waterloo-Barrie Region Formatted: Font: 8 pt SOURCE: urbanMetrics inc. 17 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 4.2 Population Comparisons FIGURE 4-2 POPULATION GROWTH 1996-2001, COMPETITIVE REGION (%) Figure 4-2 examines the population growth (1996-2001) of the Study Area in comparison to the broader economic region. Of the areas examined, the Barrie CA has exhibited the Economic Region 12.1% 14.3% most significant growth followed by Simcoe Simcoe County Barrie (CA) 25.1% County as a whole. South Simcoe 11.1% Population growth in the Study Area has been 11.4% consistent with population growth in the Study Area 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Economic Region as a whole. SOURCE: urbanMetrics inc. based on Statistics Canada 1996 and 2001 Census of Canada 4.3 Age Comparisons Figure 4-3 examines the age breakdown of the 2001 population. As with the other comparative areas, the largest component of the population is the 5-19 age group. The age structure suggests that there will likely be a shortage of labour in the short term as the aging of the workforce coincides with a very small immigration of people aged 20-24 years. As the 5-19 year age FIGURE 4-3 cohort enters the work AGE BREAKDOWN - COMPETITIVE REGION force, there will be an increase in the local labour force within the region.9 The general age 25% distribution is the same for 20% the four other comparative 15% regions, although the Study Area has the 10% smallest representation 5% within the 20-24 age 0% 0 to 4 years 5 to 19 years 20 to 24 years 25 to 34 years 35 to 44 years 45 to 54 years 55 to 64 years 65 to 74 years 75 to 84 years 85 years and group. This suggests that over the out migration of the Study Area South Simcoe Barrie (CA) Simcoe County Economic Region SOURCE: urbanMetrics inc., based on Statistics Canada 1996 and 2001 Census of Canada labour force feeder group should be a concern for the Study Area in the short term. With limited public data available from Statistics Canada with regard to mobility we are not able to determine where this out migration is going. Based on the Economic Regions and Barrie CAs larger proportion of 20-24 year olds within their overall populations it is fair to suggest that the Barrie CA and portions of the Economic Region may be a recipient of a portion of this out migration. 9 Based on their population forecasts for Simcoe County, Hemson Consulting projects a net out migration in the 20-24 age cohort. 18 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 4.4 Education Comparisons Figure 4-4 examines the education attainment of the population 20 years and over. In terms of university attainment, the Study Area is comparable to the rest of South Simcoe and Simcoe County but lower than the Barrie CA and notably lower than the Economic Region as a whole. The proportion of the Study Area holding a trade certificate or non-university diploma is similar to the rest of South Simcoe and Simcoe County; lower than the Barrie CA, but higher than the Economic Region as a whole. FIGURE 4-4 Similar to the comparison with EDUCATION ATTAINMENT - COMPETITIVE REGION the Province, the Study Area is at a comparative disadvantage with regard to 14.8% Economic Region 30.0% the proportion of the 10.5% Simcoe County 33.3% population with some form of 11.2% a university degree. As a Barrie (CA) 34.4% 9.5% result, the Study Area may South Simcoe 32.8% have difficulty attracting industries that rely on a 9.3% Study Area 32.7% workforce with a higher level 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% of education. Within the Economic Region, the With a Trade Cert. or Diploma. With a Univeristy Degree Kitchener-Waterloo- SOURCE: urbanMetrics inc based on Statistics Canada 1996 and 2001 Census of Canada Cambridge triangle has benefited from a highly educated labour force in terms of establishing a technology concentration. The City of Guelph and surrounding region have also taken advantage of their highly educated labour force and have become a leader in the advanced manufacturing and agri-food/biotechnology industries. Both communities also benefit from the presence of a University, which can often act as a catalyst for cluster based industrial growth. The Study Area is at a comparative advantage with regard to the supply of skilled and semi-skilled labour. Although this positions the Study Area well in attracting economic activity in the area of manufacturing and agriculture, the surrounding regions such as the Barrie CA, the remainder of Simcoe County and Dufferin County all have similar educational characteristics. 4.5 Labour Force Indicators Figure 4.5 examines the key labour force indicators within the component areas of the Economic Region. The Study Area compares relatively well against the Economic Region with a slightly higher participation rate and employment-population rate and a significantly lower unemployment rate. The 19 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis labour force indicators for the Study Area suggest that job creation and overall optimism within the economy the Study Area was on par with its competitive region.10 FIGURE 4.5 COMPARISON OF KEY LABOUR FORCE INDICATORS (2001) Simcoe Economic Labour Force Indicator Study Area South Simcoe Barrie (CA) County Region Participation rate 70.9% 72.0% 71.2% 68.0% 70.6% Employment-population ratio 68.0% 69.2% 67.4% 64.5% 67.0% Unemployment rate 4.0% 3.9% 5.3% 5.2% 5.1% SOURCE: urbanMetrics inc. based on Statistics Canada, 2001 Census of Canada 4.6 Labour Force by Occupation Comparisons Figure 4.6 illustrates the labour force by occupation for the Study Area and the other component areas of the Economic Region.11 Of interest is the large concentration within the management and business, finance, and administrative categories. This would appear to be contradictory to the premise of limited FIGURE 4-6 LABOUR FORCE BY OCCUPATION - COMPETITIVE REGION Processing, manufacturing and utilities Primary industry-specific Trades, transport and equipment operators and related Sales and service Art, culture, recreation and sport Social science, education, government and religion Health occupations Natural and applied sciences Business, finance and administrative Management 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Study Area South Simcoe Barrie, CA Simcoe County Economic Region SOURCE: urbanMetrics based on data from Statistics Canada, 2001 Census of Canada 10 It should be noted that these indicators are based on the 2001 Census of Canada and given the fluid nature of the economy it is expected that these indicators may have changed although there is no indication that the position relative to the Economic Region should have changed. 11 It should be noted that the labour force by occupation relates to the residents of the area and does not necessarily imply that these people also work in the area. 20 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis management jobs due to the lower proportion of university degrees within the population. Upon closer examination, the types of management jobs are mainly “specialist” relating to individual enterprises and industries while, the types of business, finance and administrative jobs are mainly clerical. Overall, the Study Area does have a distinct advantage within the primary industry-specific (agriculture) and trades, transport and equipment operators and related (specifically in transportation equipment operators and construction trades). Furthermore, the Study Area has a disproportionate percentage of its labour force within the “assemblers in manufacturing” category. 4.7 Summary Overall, the Study Area comprises population and labour characteristics that are competitive in relation to Simcoe and Dufferin Counties. The balance of the economic region (Region of Waterloo and Wellington County) have labour force demographics that are consistent with the types of industries that have historically been attracted to these areas. Given the consistent characteristics of South Simcoe County, (i.e. no locational disparities and access to serviced industrial land), the Study Area would be competitive in terms of select demographics such as the supply, and type (skilled/semi-skilled) of labour available. 21 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 5 Target Sector Identification – Provincial Context There are a number of primary considerations that must be addressed in the identification and selection of target industry sectors for the Study Area. These criteria include the following: • Identified sectors should tie into target initiatives supported by provincial investment attraction agencies – The Study Area should recognize broader marketing initiatives undertaken by the Province of Ontario, through the Ministry of Economic Development and Trade and the related Ontario Investment Service, as well as the Ministry of Agriculture and Food, in relation to its economic development and marketing initiatives centred around the various sectors of the economy. Nottawasaga Futures should continue to actively communicate with these agencies, in order to share information and benefit from economic development networks already established. • Target sectors should represent a realistic business opportunity – There may be limited opportunity, in the Study Area, to develop around certain knowledge-intensive industries, such as biotechnology, information, communications and telecommunications (ICT) and some areas of electronic/electrical equipment manufacturing. Companies operating in these industries generally locate in areas where a distinct comparative advantage has developed around existing firms and support infrastructure. • Target sectors should compliment the existing local industrial base – To the extent possible, investment attraction opportunities should be tied to the competitive position of existing businesses and labour force skill sets. It will also be important to distinguish between opportunities afforded to the Study Area and competitive municipalities such as Barrie. • Target sectors should have a significant and sustaining impact on the Study Area economy Targets should be labour-intensive sectors that demonstrate medium to high future growth potential. • The attraction of chosen target sectors should not require excessive capital investment on the part of area municipalities and/or the County of Simcoe. The first section concerned with target sector identification presents a high-level overview of the Ontario economy including exports, forecast growth and provincial target sectors. Section 6 that follows considers the development of the local economic base and identifies and profiles a preliminary set of target sectors, based on quantitative and qualitative analysis. 5.1 Summary of Macro Economic Trends Ontario accounts for approximately 40.7% of Canada’s gross domestic product (GDP), or over $470- billion in 2002. Between 1998 and 2002, the province’s GDP increased at an average annual rate of 3.7%, which is above the annual Canadian average of approximately 3.0% for the same 5-year period. 22 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis The outlook in the short term is not very optimistic, National GDP advanced only 1.7% in 2003 (compared to 3.3% in 2002) and although provincial figures have not been released yet, it has been estimated that Ontario GDP grew only 1.4% in 2003 and is projected to increase by 2.7% in 2004, which is below the national forecast, and 3.4% in 2005 which is on par with national GDP growth.12 It is generally held that regional economic growth and development is primarily the result of export trade, around which regional service sectors grow. Export Development Canada (EDC), in its Global Export Forecast for spring 2003, indicates that Ontario’s export base grew by 1.6% in 2002 – a positive result in comparison to the overall 2.8% drop in exports nation-wide. Estimates for Ontario’s 2003 exports show a significant decline, (-3%) although forecasts for 2004 are more optimistic with an increase of 5%. The value of total exports from Ontario, in 2002, amounted to upward of $317-billion. Figure 5-1 depicts the percentage breakdown of these exports by broad industrial category. As can be seen, motor vehicle exports are by far the FIGURE 5-1 dominate category, although it is BREAKDOWN OF ONTARIO'S TOTAL EXPORTS BY SECTOR (ACTUAL forecasted that forestry and agri- 2002) food exports will be leading the rebound in 2004. Automotive Supporting export based 6% 5% producers in the Province are Industrial Goods sectors such as construction, 19% 48% Machinery and wholesale trade, financial and Equipment business services, educational Forestry services, transportation and 22% Agri-Food warehousing, as well as other sectors servicing regional businesses and households. SOURCE: urbanMetrics, based on Export Development Canada (EDC) Global Export Forecast 12 Bank of Montreal, Regional Outlook, October 30, 2003. 23 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 5.2 Identification and Forecast Performance of Key Export Sectors Figures 5-2 and 5-3 summarize the sectors that are expected to experience medium to high economic growth over the next three years from 2004 through 2007. The sectors contained within these tables represent a “long-list” of potential target sectors for the Study Area. FIGURE 5-2 FIGURE 5-3 FORECAST ANNUAL AVERAGE CHANGE IN REAL GDP HIGH FORECAST ANNUAL AVERAGE CHANGE IN REAL GDP GROWTH SECTORS (3.5% AND ABOVE 2004-2007) MEDIUM GROWTH SECTORS (2.5%-3.5% 2004-2007) Average Growth 2004-2007 Average Growth 2004-2007 Primary Sectors Primary Sectors Oil and Gas Services 10.2% Oil and Gas Extraction 3.1% Agriculture 4.5% Mineral Extraction 4.4% Manufacturing Sectors Non-Metallic Mineral Products 3.4% Manufacturing Sectors Food and Beverages 3.3% Electronic Products 7.3% Electrical Equipment and Appliances 3.3% Plastic Products 6.4% Aerospace Products 3.3% Motor Vehicle Parts 4.8% Fabricated Metals 3.0% Non-Electrical Machinery 4.7% Other Transport. Equipment 2.8% Furniture 4.6% Miscellaneous Manufacturing 2.8% Primary Metals 2.7% Services Sectors Motor Vehicles 2.7% Communication and Information 7.0% Rubber Products 2.6% Wholesale Trade 6.1% Refined Petroleum and Coal Products 2.6% Cultural Services 5.7% Professional Services 5.6% Services Sectors Admin. And Waste Mgmt Services 4.8% Personal Services 3.3% Arts, Entertainment and Rec. 4.1% Pipelines 3.2% Finance and Insurance 3.9% Construction 2.7% Tranportation and Warehousing 3.6% Health and Social Services 2.7% Retail Trade 3.6% Accomodation and Food 3.6% SOURCE: urbanMetrics, based on Bank of Montreal (2003) Sectoral SOURCE: urbanMetrics, based on Bank of Montreal (2003) Sectoral Forecasts Forecasts The Province of Ontario, through the Ministry of Economic Development and Trade (MEDT) and the Ontario Investment Service (OIS) are directly responsible for marketing and attracting industrial investment to the province, from within Canada and internationally. In doing so, MEDT and the OIS have narrowed the broad industrial categories summarized above to specific target sectors and/or sub- sectors to be promoted for industrial attraction in the Province. These target sectors include the following: • Aerospace; • Automotive; • Biomedical; • Call Centres; 24 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis • Chemicals; • Environment; • Food; • Forestry; • Information Technology; • Machinery; • Mining; and • Plastics. These sectors and/or sub-sectors have been chosen for promotion based on Ontario’s established export base, and the pattern of business investment across the Province over the past 5 to 10 years. Much of this business investment has been in reaction to the marketing of regional comparative advantages in the production of certain goods and/or services, on the part of the Province and individual municipalities/counties/regions. The way in which the Study Area fits within the broader provincial investment attraction context is discussed in the following section. 25 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 6 Target Sector Identification – Local Context 6.1 Analysis of Industry Specialization In order to determine the type and degree of industrial specialization/diversity that may be occurring in the Study Area, location quotients (“LQ’s”) have been calculated to identify and measure the concentration of industries. Results are provided for the Study Area as well as the participating municipalities. Location Quotients are a commonly used tool in regional economic analysis. They assess the concentration of economic activities within a smaller area relative to the overarching region in which it resides. In this case, location quotients will be used to indicate which industry sectors in the Study Area have a greater labour force concentration relative to the overall average for the Province of Ontario. A location quotient greater than 1.0 for a given sector indicates a local concentration of economic activity as compared to the Provincial average. Location Quotients equal to 1.0 for a given sector suggest that the Study Area has the same concentration of economic activity as the Province. Finally, a location quotient of less than 1.0 indicates a concentration of economic activity that is less than the Provincial average. In theory, industrial concentration that is greater than the provincial average represents the export base of the participating municipalities. Businesses that make up this export base have likely chosen to locate in the area due to certain regional competitive advantages. These competitive advantages can be used to attract further investment in the future, in the same or complimentary industries. The following sections detail the results of the participating municipalities as well as the Study Area. 6.2 Township of Adjala- FIGURE 6-1 LOCATION QUOTIENTS - ADJALA-TOSORONTIO Tosorontio LOCATION BROAD INDUSTRY SECTOR QUOTIENT Figure 6-1 shows the calculated LQ’s for 11 Agriculture, forestry, fishing and hunting 12.49 56 Administrative and support, waste management and remediation services 1.54 the Township of Adjala-Tosorontio. The 23 Construction 1.45 Township has a significant concentration 41 Wholesale trade 1.41 61 Educational services 1.39 of labour within the agriculture, fishing and 54 Professional, scientific and technical services 1.30 81 Other services (except public administration) 1.26 hunting category relative to the Province. 71 Arts, entertainment and recreation 1.15 48-49 Transportation and warehousing 1.11 Within this category the Township has a 72 Accommodation and food services 0.89 91 Public administration 0.72 relative concentration within pure farming 62 Health care and social assistance 0.67 51 Information and cultural industries 0.62 and farm product wholesaler and 44-45 Retail trade 0.49 distributors. The other concentrated 53 Real estate and rental and leasing 0.47 31-33 Manufacturing 0.13 SOURCE: urbanmetrics inc., based on data from Statistics Canada 2001 Census of Canada, Place of Work data, custom tab. 26 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis sectors – administrative and support and construction, while above the provincial average, represent businesses servicing the local economy and population in general located within a local area. The Township has a very weak concentration of manufacturing activity compared to the province, which is expected given its rural nature. 6.3 Town of New Tecumseth Figure 6-2 illustrates the calculated LQ’s FIGURE 6-2 LOCATION QUOTIENTS - NEW TECUMSETH for the Town of New Tecumseth. The LOCATION Town has a concentration of activity within TW O DIGIT NAICS INDUSTRY SECTOR QUOTIENT the manufacturing sector. The largest 31-33 Manufacturing fishing and hunting 11 Agriculture, forestry, 2.69 1.25 concentration occurs within the 72 Accommodation and food servicesmanagement and remediation services 56 Administrative and support, waste 1.00 1.00 41 W holesale trade 0.92 transportation equipment manufacturing 23 Construction 0.82 81 Other services (except public administration) 0.72 category (i.e. Honda). Other areas of 62 Health care and social assistance 0.69 44-45 Retail trade 0.66 relative concentration occur in agriculture, 61 Educational services 0.63 53 Real estate and rental and leasing 0.46 forestry, fishing and hunting category of 55 Management of companies and enterprises 0.46 71 Arts, entertainment and recreation 0.45 which the majority of concentration occurs 22 Utilities 0.37 54 Professional, scientific and technical services 0.35 within the farming industry. New 52 Finance and insurance 0.20 21 Mining and oil and gas extraction 0.19 Tecumseth’s range of concentrated 91 Public administration 0.17 51 Information and cultural industries 0.17 industries is limited, with vehicle SOURCE: urbanmetrics inc., based on data from Statistics Canada 2001 Census of Canada, Place of manufacturing (Honda) and chemical W ork data, custom tab. manufacturing (Baxter) accounting for the majority of the manufacturing concentration. 6.4 Town of Innisfil FIGURE 6-3 Figure 6-3 illustrates the LQ’s for the Town LOCATION QUOTIENTS - INNISFIL of Innisfil. Innisfil’s main concentration is LOCATION within the arts, entertainment and recreation TWO DIGIT NAICS INDUSTRY SECTOR QUOTIENT 71 Arts, entertainment and recreation 3.1 category, which can attributed to the 11 Agriculture, forestry, fishing and hunting 3.0 23 Construction 2.3 concentration of tourism and gaming 44-45 Retail trade 1.8 53 Real estate and rental and leasing 1.5 activities. Innisfil also has relative 81 Other services (except public administration) 1.2 72 Accommodation and food services 1.2 concentrations in agriculture, construction, 22 Utilities 1.0 61 Educational services 0.9 and retail trade. While Innisfil has a broad 48-49 Transportation and warehousing 0.9 56 Administrative and support, waste management and remediation services 0.8 base of industry concentrations, a portion of 41 Wholesale trade 0.7 54 Professional, scientific and technical services 0.6 these concentrations represents businesses 31-33 Manufacturing 0.6 62 Health care and social assistance 0.6 servicing the local economy and population 91 Public administration 0.6 51 Information and cultural industries 0.5 in general. 52 Finance and insurance 0.4 SOURCE: urbanMetrics inc, based on data from Statistics Canada 2001 Census of Canada, Place of Work data, custom tab. 27 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis FIGURE 6-4 6.5 Township of Essa LOCATION QUOTIENTS - TOWNSHIP OF ESSA Figure 6-4 illustrates the LQ’s for the LOCATION QUOTIENT BROAD INDUSTRY SECTOR Township of Essa. Essa’s relative 91 Public administration 9.0 11 Agriculture, forestry, fishing and hunting 2.1 concentration within the public 72 Accommodation and food services 1.2 56 Administrative and support, waste management and remediation services 1.1 administration category is based on the 22 Utilities 0.9 71 Arts, entertainment and recreation 0.8 defence services located at CFB 23 Construction 0.8 44-45 Retail trade 0.7 Borden. The Township also 53 Real estate and rental and leasing 0.6 61 Educational services 0.6 demonstrates a concentration on the 81 Other services (except public administration) 0.6 48-49 Transportation and warehousing 0.5 agriculture sector. 41 Wholesale trade 0.4 62 Health care and social assistance 0.3 54 Professional, scientific and technical services 0.3 31-33 Manufacturing 0.2 6.6 Summary 51 Information and cultural industries 52 Finance and insurance 0.1 0.1 Overall, the four regions demonstrate a SOURCE: urbanMetrics inc, based on data from Statistics Canada 2001 Census of Canada, Place of Work data, custom tab. broad base of specializations from manufacturing, tourism and agriculture. The next section will examine the concentrations of the Study Area as whole. 6.7 Study Area Industry Concentrations From a broad perspective, the Study Area FIGURE 6-5QUOTIENTS - STUDY AREA LOCATION has an above-average concentration in LOCATION three industry sectors agriculture, public BROAD INDUSTRY SECTOR QUOTIENT 11 Agriculture, forestry, fishing and hunting 2.22 administration, and manufacturing. The 91 Public administration 2.21 31-33 Manufacturing 1.66 concentration within the public 23 Construction 1.11 72 Accommodation and food services 1.07 administration category is a function of 71 Arts, entertainment and recreation 1.05 56 Administrative and support, waste management and remediation services 1.00 CFB Borden. Although the base provides 48-49 Transportation and warehousing 0.97 44-45 Retail trade 0.86 an economic stimulus in terms of 81 Other services (except public administration) 0.80 41 W holesale trade 0.79 expenditures within the community there is 61 Educational services 0.71 53 Real estate and rental and leasing 0.69 little benefit afforded the South Simcoe 22 Utilities 0.59 62 Health care and social assistance 0.59 communities in its attraction of new 54 Professional, scientific and technical services 0.42 55 Management of companies and enterprises 0.26 industrial growth. The remaining four 51 Information and cultural industries 52 Finance and insurance 0.23 0.20 industry sectors with LQ’s above one 21 Mining and oil and gas extraction 0.11 represent businesses servicing the local SOURCE: urbanmetrics inc., based on data from Statistics Canada 2001 Census of Canada, Place of W ork data, custom tab. economy and in some cases (i.e. arts, entertainment and recreation) the LQ’s are close to the Provincial average indicating only a slight competitive advantage. The following section examines the agricultural and manufacturing industry sector concentrations in greater detail. 28 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 6.7.1 Agriculture Figure 6.6 examines the sub-level LQ’s within the agriculture, forestry, fishing and hunting category. Farms and support activities FIGURE 6-6 LOCATION QUOTIENTS - STUDY AREA for agriculture and forestry LOCATION categories are the two sub QUOTIENT 11 Agriculture, forestry, fishing and hunting sectors that show significant 111-112 Farms 2.34 115 Support activities for agriculture and forestry 2.13 employment concentrations. 113 Forestry and logging 0.46 In absolute employment SOURCE: urbanmetrics inc., based on data from Statistics Canada 2001 Census of Canada, Place of terms, the agricultural Work data, custom tab. industry only accounts for 4.6% of the total labour force working within the Study Area. Although agriculture is considered a high growth sector (characterized nationally by crop production, see Figure 5-2) and is expected to post real GDP growth of 4.5% between 2004-2007, it is unlikely that the Study Area will be able to increase employment opportunities in this sector given the trend towards larger farms, fewer employees and more automation. However, there may be opportunities to attract equipment manufacturing, support industries and food processing operations to the Study Area. 6.7.2 Manufacturing Figure 6.7 examines the sub-level FIGURE 6-7 LQ’s within the manufacturing LOCATION QUOTIENTS - STUDY AREA category. As expected, the LOCATION 31-33 Manufacturing QUOTIENT concentration of transportation 336 Transportation equipment manufacturing 7.02 equipment manufacturing is 327 Non-metallic mineral product manufacturing 1.37 325 Chemical manufacturing 1.34 dominant, as this industry 321 Wood product manufacturing 0.88 314 Textile product mills 0.60 employs 22% of the labour force 339 Miscellaneous manufacturing 0.58 within the Study Area, 326 Plastics and rubber products manufacturing 0.58 332 Fabricated metal product manufacturing 0.57 (manufacturing as a whole 316 Leather and allied product manufacturing 0.57 337 Furniture and related product manufacturing 0.39 employs 28%) 324 Petroleum and coal products manufacturing 0.36 333 Machinery manufacturing 0.30 313 Textile mills 0.27 Non-metallic mineral product 335 Electrical equipment, appliance and component manufacturing 0.26 323 Printing and related support activities 0.24 manufacturing and chemical 311 Food manufacturing 0.20 manufacturing both exhibit strong 315 Clothing manufacturing 0.18 334 Computer and electronic product manufacturing 0.16 concentrations relative to the 322 Paper manufacturing 0.06 331 Primary metal manufacturing 0.04 Province. Baxter Corporation is responsible for the majority of SOURCE: urbanmetrics inc., based on data from Statistics Canada 2001 Census of Canada, Place of Work data, custom tab. concentration within the chemical manufacturing category and there are a number of cement and concrete product manufacturing facilities within the Study Area that further contribute to this concentration. 29 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 6.8 Regional Locational Quotients Although location quotients are important considerations in identifying current industry concentrations, they can also assist in targeting future economic growth that may not currently be evident within the Study Area. The most significant factor limiting growth of industrial activity within the Study Area is the lack of serviced and “ready to go” industrial land to accommodate industrial uses. However, there is intent to provide additional serviced industrial in the future both in Innisfil and New Tecumseth. Given the existing economies of agglomeration within Simcoe County, it is useful to examine the location quotients in Barrie and Bradford West Gwillimbury as a means of identifying potential target sector growth suited to the Study Area. Both of these areas currently have serviced industrial lands that accommodate a variety of industrial uses. 6.8.1 City of Barrie When examining the broad industry FIGURE 6.8 LOCATION QUOTIENTS - BARRIE categories, Barrie shows a wide array of LOCATION industry specializations. A number of BROAD INDUSTRY SECTORS QUOTIENT 44-45 Retail trade 1.6 these concentrations relate to servicing 72 Accom m odation and food services 1.4 53 Real estate and rental and leasing 1.3 the local economy, although sectors 62 Health care and social assistance 1.3 23 Construction 1.3 such as wholesale trade and 81 Other services (except public adm inistration) 41 W holesale trade 1.2 1.1 construction represent the export base. 61 Educational services 56 Adm inistrative and support, waste m anagem ent and rem ediation services 1.0 1.0 51 Inform ation and cultural industries 0.9 While manufacturing activity does not 48-49 Transportation and warehousing 0.8 31-33 Manufacturing 0.8 exhibit a significant concentration, at the 54 Professional, scientific and technical services 0.7 52 Finance and insurance 0.7 broad level there are limited 22 Utilities 0.6 91 Public adm inistration 0.6 concentrations within the select sub- 71 Arts, entertainm ent and recreation 0.5 21 Mining and oil and gas extraction 0.2 sectors. 55 Managem ent of com panies and enterprises 0.2 11 Agriculture, forestry, fishing and hunting 0.1 SOURCE: urbanm etrics inc., based on data from Statistics Canada 2001 Census of Canada, Place of Figure 6-9 illustrates the manufacturing W ork data, custom tab. concentrations within the City of Barrie. Unlike the Study Area, Barrie has a FIGURE 6-9 LOCATION QUOTIENTS - BARRIE number of industry specializations LOCATION including textile product mills, plastics 31-33 Manufacturing QUOTIENT and rubber products manufacturing and 314 Textile product mills 2.5 326 Plastics and rubber products manufacturing 2.1 machinery manufacturing. 332 Fabricated metal product manufacturing 1.2 333 Machinery manufacturing 1.2 322 Paper manufacturing 1.1 312 Beverage and tobacco product manufacturing 1.0 SOURCE: urbanmetrics inc., based on data from Statistics Canada 2001 Census of Canada, Place of Work data, custom tab. 30 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 6.9 Township of Bradford West Gwillimbury Figure 6-10 illustrates the broad area FIG U R E 6-10 LO CAT IO N Q U O T IE NT S - B R AD FO RD W EST G W ILLIM B U RY location quotients for Bradford West LO C AT IO N Gwillimbury. Similar to Barrie, Bradford T W O DIG IT NA IC S IN DU ST R Y SEC T O R Q UO T IEN T 11 Agriculture, forestry, fishing and hunting 4.8 West Gwillimbury has a diverse 23 C onstruction 1.5 81 O ther services (except public adm inistration) 1.4 concentration of industries including 72 Accom m odation and food services 1.3 61 Educational services 1.2 construction, manufacturing, and 31-33 M anufacturing 1.2 48-49 T ransportation and warehousing 1.1 transportation and warehousing. Figure 6- 41 W holesale trade 54 Professional, scientific and technical services 0.9 0.8 11 examines the manufacturing sub 44-45 R etail trade 62 H ealth care and social assistance 0.8 0.8 56 Adm inistrative and support, waste m anagem ent and rem ediation services 0.8 categories in detail. 53 R eal estate and rental and leasing 0.7 22 U tilities 0.5 71 Arts, entertainm ent and recreation 0.5 52 Finance and insurance 0.5 There are a number of categories that 51 Inform ation and cultural industries 0.4 91 Public adm inistration 0.3 overlap with Barrie, which may indicate a 55 M anagem ent of com panies and enterprises 0.0 21 M ining and oil and gas extraction 0.0 regional competitive advantage. These S O U RC E : urbanM etrics inc, based on data from Statistics C anada 2001 Census of Canada, Place of include, plastics and rubber products W ork data, custom tab. manufacturing, fabricated metal product FIGURE 6-11 LOCATION QUOTIENTS - BRADFORD W EST GW ILLIMBURY manufacturing and beverage and tobacco product manufacturing. LOCATION 31-33 Manufacturing QUOTIENT 326 Plastics and rubber products manufacturing 3.0 336 Transportation equipment manufacturing 2.9 325 Chemical manufacturing 1.7 332 Fabricated metal product manufacturing 1.5 337 Furniture and related product manufacturing 1.1 312 Beverage and tobacco product manufacturing 1.1 SOURCE: urbanMetrics inc, based on data from Statistics Canada 2001 Census of Canada, Place of W ork data, custom tab. 6.10 Broad Target Sector Identification Based on the provincial target sector analysis, the Study Area and surrounding area location quotient analysis as well as preliminary conversations with numerous industry/government contacts the following list of broad sector targets have been identified. • Agriculture; • Manufacturing; • Transportation and Warehousing; and • Wholesale Trade/Retail Trade. 31 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis The discussion that follows includes a SWOT (Strengths, Weaknesses Opportunities and Threats) analysis that examines each of these broad sectors individually and refines the target sectors based on qualitative and quantitative inputs. 32 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 7 Comparative Analysis In order to assess comparative position of the Study Area relative to other Ontario jurisdictions data was collected for relevant demographic and operating cost elements. To ensure a comprehensive comparison of jurisdictions, urbanMetrics has identified 13 criteria typically considered as part of a site location exercise. These comparative elements are characterised as either “General” comparators or “Business Case Specific” comparators, and go to the capability and capacity of the Study Area to attract business investment are summarized in Figure 7-1: FIGURE 7-1 GENERAL AND BUSINESS CASE SPECIFIC COMPARATORS General Growth Business Case Specific Population (2001) Employee Compensation Costs % of Total Population 20-24 (2001) Land Value Costs % of Total Population 25-34 (2001) Electricity Rates Household Income (2000) Tax Rates Forecast Population Growth (2001-2011) Total Labour Force (15+ Years, 2001) Labour Force Growth ('00-'11) Unemployment Rate (2001) % of Workforce with Post Secondary College / University Degree / Certificate Source: urbanMetrics inc. based on data from various municipalities. For the purposes of the analysis, the Study Area was compared with six municipalities in Ontario, as determined through conversations with local stakeholders, Nottawasaga Futures Economic Development Corporation, select government officials, and professional experience. The comparative areas are summarized as follows: • Barrie; • Newmarket; • Orillia; • Orangeville; • Clarington; and • Bradford West Gwillimbury. 33 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 7.1 General Comparators Figure 7-2 illustrates the general comparators within a site selection model format and assigns relative rankings to each of the nine attributes against the strongest municipality in each category. The municipality with the highest value within each category is assigned a value of 10. The other municipalities are then indexed against that municipality. The maximum score any municipality can achieve is 90 (a detailed breakdown of the calculation and indices are found in Appendix A) FIGURE 7-2 SITE SELECTION MODEL - GENERAL COMPARATORS Bradford West Study Area Gwillimbury Barrie Newmarket Orillia Orangeville Clarington Population (2001) Rank 2 7 1 4 5 6 3 % of Total Population 20-24 (2001) Rank 7 2 1 4 3 5 6 % of Total Population 25-34 (2001) Rank 5 3 1 6 7 2 4 Forecast Population Growth (2001-2011) Rank 5 6 1 3 7 4 2 Total Labour Force (15+ Years, 2001) Rank 2 7 1 4 5 6 3 Labour Force Growth ('00-'11) Rank 6 5 1 2 7 4 3 Unemployment Rate (2001) Rank 5 6 2 7 1 4 3 Household Income (2000) Rank 4 3 6 1 7 5 2 % of Workforce with Post Secondary College / University Degree / Certificate Rank 7 5 3 1 6 4 2 TOTAL SUM OF CRITERIA (Maximum Score of 90) 60 54 86 68 50 57 68 OVERALL RANKING 4 6 1 3 7 5 2 Final Ranked Results 1 - Barrie, 2 - Clarington, 3 - Newmarket, 4 - Study Area, 5 - Orangeville, 6 - Bradford West Gwillimbury, 7 - Orillia SOURCE: urbanMetrics based on data from various municipalities and 2001 Census of Canada Although the Study Area contains favourable demographics (2001) in terms of total population and labour force, when compared against the other municipalities the Study Area is ranked towards the lower end of the spectrum in terms of population growth and labour force growth. Overall Barrie is ranked first in the population and labour force growth categories. Barrie has experienced significant growth over the past decade and will continue to grow at an accelerated rate. Furthermore, labour force growth is a function of population growth, so as the population grows the labour force is expected to grow proportionately. It is important to note that although the Study Area does not rank high in terms of population and labour force growth, its proximity to the labour pools of Barrie and Newmarket should be viewed as an asset in terms business retention and attraction. This element will be important from a messaging perspective. Of the comparative municipalities, Newmarket is ranked first with respect to household income and the proportion of the population with a post secondary degree/certificate. The Study Area is ranked last in the post-secondary education category and fourth in terms of household income. The weaker showing 34 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis as it relates to the percentage of the population having achieved a post secondary degree/certificate is in part because comparative areas such as Newmarket and Barrie have an established diversity within their industry/service categories. It should be noted however, that a significant proportion of the labour force in communities like Barrie and Newmarket commute to employment in other jurisdictions. 7.1.1 Overall Results Based on the general qualitative indicators, the Study Area is ranked in the middle (4th) with Barrie ranked first followed by Clarington and Newmarket. Orangeville, Bradford West Gwillimbury and Orillia are ranked in the bottom half. 7.2 Business Case-Specific Comparators As part of our comparative analysis, urbanMetrics has also analysed some of the overlying costs of business operation in the Study Area compared with the other selected municipalities. Our analysis is based on the costs associated with operating a hypothetical industrial plant in each community. (Detailed assumptions are provided in Appendix A). For the purposes of this discussion, we have focused on the following business case-specific elements: • Employee Compensation Costs; • Land Value Costs; • Electricity Rates; and, • Municipal Property Tax Rates. Building Lease Rates have not been included, as the Study Area does not have a sufficient inventory of industrial buildings to calculate an average rent for industrial buildings. In lieu of rents, land values were used. Assumptions for our analysis are a follows: • Overall employee compensation costs are based on the employee mix summarised in Figure 7.3 that follows; • Facility size is assumed to be 120,000 sq. ft. which at 35% coverage equates to approximately 7.8 acres; 35 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis • Electricity costs are considered on a per square foot basis, as detailed in the BMA Management Consulting Inc. Municipal Study – 2002; and, • Municipal taxes on industrial building are based on a standard occupied industrial building. 7.3 Employee Compensations Costs • Compensation costs include both FIGURE 7-3 ASSUMED STAFFING MIX OF HYPOTHETICAL employee wages and statutory benefits INDUSTRIAL OPERATION (e.g. CPP, UI). These are typically two of the key elements taken into consideration Staffing Position Number of Staff during a site selection exercise. For the purpose of this study, we have not Office Managing Director 1 included employer-sponsored benefits, Sales Manager 1 such as group health insurance and Procurment 4 Marketing 3 employer pensions. Our experience Information Systems 3 suggests that these elements are driven Human Resources 3 Administration 5 primarily by firm policy and therefore will differ substantially from one company to Production another. Plant Manager 1 Supervisor 3 Production Operator 75 • For the purposes of comparing relative Material Handlers 7 Maintenance 7 wage and benefit costs, the Production Quality Assurance 7 Operator position was selected. This staff Engineering 5 grouping represents the largest Total Staff 125 component of a manufacturing operation Source: urbanMetrics Inc. and thus one of the most significant labour FIGURE 7-4 costs to an organization (wages based on COMPENSATION COMPARISON FOR THE PRODUCTION OPERATOR POSITION data from Ontario Investment Services). $20.00 • Figure 7-4 summarizes the gross wage $18.00 Gross Hourly Wage (CAD$) $16.00 comparison in this labour category. The $14.00 Study Area is competitive in terms of $12.00 $10.00 required compensation. As illustrated by $8.00 the comparative index, compensation $6.00 $4.00 levels in the Study Area are in line with all $2.00 of the comparative municipalities with the $0.00 a on d rie t lia lle exception of Barrie and Orillia, which are ke re or vi ril ar gt A ar df e O rin B m y ng ra ud ew la B ra approximately 10% higher. St C N O SOURCE: urbanMetrics, based on Ontario Investment Service Community Profiles and Census of Canada 2001 36 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 7.4 Land Values In lieu of rental rates, the cost of serviced FIGURE 7-5 LAND AREA COST: STUDY AREA vs. COMPARATIVE JURISDICTIONS industrial land has been assessed. The price of industrial land is one of the most $300,000 significant variables in the decision making $250,000 process for new and relocating firms. Land Price/Acre ($) $200,000 Figure 7-5 shows the range in land prices $150,000 between the various jurisdictions. Costs $100,000 per acre were determined through $50,000 conversations with realtors, economic $- development officers, and an examination a on rd rie ia e t ke re ill l fo of available listings on the Ontario ril ar gt ev A ar d O r in B m y ng ra ud ew la B ra St C Investment Services site. N O SOURCE: urbanMetrics, based on survey of real estate professionals in competitor jurisdictions. As illustrated in Figure 7-5 serviced industrial land values within the Study Area are approximately $140,000 per acre. Industrial land values in Newmarket, Barrie and Bradford are higher, whereas industrial land values in Orillia, Clarington, and Orangeville are lower. It should be noted that we have not reviewed the quality of available industrial land. Conversations with realtors and industry specialists suggest that the price for serviced industrial land in the Study Area is over priced and represents an impediment to industrial attraction. 7.5 Electricity Rates Utility costs, which comprise electricity, gas FIGURE 7-6 and water, do not factor as prominently in HYDRO RATE COMPARISON: STUDY AREA vs. COMPARATIVE JURISDICTIONS the site selection process as land costs, but they are a factor when looking to eliminate a 4.00 community from further consideration. For 3.90 Hydro Rate/Sq.Ft. ($CAD) 3.80 the purposes of our study we have focused 3.70 specifically on electricity costs as these 3.60 3.50 represent the largest share of an industrial 3.40 firm’s utility costs. 3.30 3.20 3.10 Electricity rates are based on the average a e t on rd rie ia ke re ill l fo ril ar gt ev A ar rate of energy usage (demand) and quantity d O B rin m y ng ra ud w la B ra Ne St C O of power used (consumption) over a one- month period. urbanMetrics utilized the SOURCE: urbanMetrics, based on BMA Management Consulting (2003) Municipal Study 2002 average hydro rate per square foot, as 37 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis provided in the BMA Management Consulting Municipal Study – 2002. The results of this comparison are provided in Figure 7-6. Of the comparative municipalities, the Study Area along with Barrie and Bradford West Gwillimbury have the highest electricity rates. 7.6 Municipal Tax Rates Figure 7-7 examines the municipal FIGURE 7-7 tax rates for the comparative TAX RATE COMPARISON: STUDY AREA vs. COMPARATIVE JURISDICTIONS municipalities. These tax rates represent the total municipal taxes 6.00% (including education) assessed on a standard occupied industrial 5.00% Industrial Tax Rate building. Of the seven locations only 4.00% Barrie and Newmarket have lower 3.00% municipal tax rates than the Study 2.00% Area 1.00% 0.00% Although the Study Area is well a e on d t rie lia ke re ill or ri l ar gt v A ar positioned competitively, the fact df ge O B rin m y ra ud n ew la B ra St C N O that both Barrie and Newmarket have lower tax rates is significant SOURCE: urbanMetrics, based on BMA Management Consulting (2003) Municipal Study 2002 given their proximity to the Study Area. 7.7 Business Case Summary Figure 7-8 provides an overall summary and ranking of the preceding analysis. Based on the business case variables the Study Area is ranked third most competitive (low cost) amongst the selected municipalities. FIGURE 7-8 SITE SELECTION MODEL - BUSINESS CASE SPECIFIC Bradford West Study Area Gwillimbury Barrie Newmarket Orillia Orangeville Clarington Labour Cost Rank 1.0 1.0 2.0 1.0 3.0 1.0 1.0 Facilities Cost Rank 4.0 5.0 6.0 7.0 1.0 3.0 2.0 Electricity Cost Rank 2.0 2.0 2.0 1.0 2.0 6.0 7.0 Tax Rates Cost Rank 3.0 7.0 2.0 1.0 5.0 6.0 4.0 TOTAL SUM OF CRITERIA (Maximum Score of 40) 32.49 35.53 36.34 34.39 31.57 32.72 31.20 OVERALL RANKING (Lower Score = More Competitive) 3 6 7 5 2 4 1 Final Ranked Results 1 - Clarington, 2 - Orillia, 3 - Study Area, 4 - Orangeville, 5 - Newmarket, 6 - Bradford West Gwillimbury, 7 - Barrie (1) Low Cost High Cost SOURCE: urbanMetrics based on data from various municipalities and 2001 Census of Canada 38 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 7.8 Overall Conclusion Based on the business case and the general comparators the Study Area is competitive with the selected municipalities. However, the slim margin of difference between the municipalities heightens the importance of the marketing message and the positive business environment that is required to advance the interest and investment in the region. A further consideration will be what ‘weight’ a prospective company may give to any of these factors. As is often the case, one or two of these factors may drive the site selection process for a company. The following section will highlight the general strengths, weaknesses, opportunities and threats (SWOT analysis) for the Study Area as a whole. 39 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 8 Community SWOT Analysis The community SWOT analysis examines the community’s overall ability to attract retain and expand businesses in a general context. The SWOT analysis identifies the current Strengths and Weaknesses, as well as future Opportunities and Threats affecting the Study Area’s ability achieve this goal. In conducting the SWOT analysis, a significant number of interviews were conducted with the following groups: • Municipal staff and members of Council; • Representatives of local and regional service providers; • Local business representatives; • Community organizations, such as the Chamber of Commerce; and • Provincial Ministry Representatives. The findings of the consultations are summarized in the following tables. 40 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Formatted: Font color: White, English (U.S.) STRENGTHS • One of the Study Area’s strengths is its proximity to a variety of road and rail transportation options. Access to Highway 400 and connections to Highway 401, in turn provide access to the major Canadian and US markets. East-west routes such as Highways 88 & 89 and Highway 9 are considered equally important as they provide important links to other parts of the province. • As proof of the areas locational strengths, a number of multinational companies have already established a presence in select communities. • The area demonstrates strong population and labour force growth and has a good supply of semi-skilled labour. It also benefits from ready access to the larger labour markets (i.e. Barrie and the GTA) for additional skilled and semi-skilled labour as well as management staff. • Commuting patterns confirm that the Study Area has employment opportunities that are attractive to a broad labour force base. • The Simcoe County SCAN (Simcoe Community Access Network) initiative has provided the community with a solid platform for attracting industries that rely on a sound telecommunications network infrastructure. • A high percentage of businesses have indicated that they are satisfied with the source and availability of electrical energy. • Industries benefits from the positive support of local residents and business community • There is increasing interest in the area as a location for business investment. This interest will only increase with the introduction of serviced industrial land. Projected population growth in the Barrie area, as well as, the Study Area will reinforce the overall quality of the local labour force. 41 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Formatted: English (U.S.) WEAKNESSES • The most significant weakness/impediment to future economic development efforts is the lack of zoned and serviced industrial land in a variety of parcel sizes. The lack of availability of vacant rental/leased space is also seen as a barrier to attracting industry to the area. • There is a perception that the Study Area lacks a supply of skilled and semi-skilled labour. With the exception of New Tecumseth, all of the other municipalities are net exporters of jobs (i.e. there are more people in the labour force than jobs in the municipality), • The presence of Honda can be viewed as a deterrent to industry. There is the perception that Honda pays high wages creating employment recruiting and retention issues for industry. • In the mid to long term, the Study Area, similar to many municipalities around the Province will face structural labour shortages for skilled and semi-skilled occupations. This is due to the retirement of existing workers coupled with the fact that many younger people have chosen different career paths outside of the skilled and semi-skilled trades. • Due to the lack of industrial locations, the Study Area does not benefit from the economies of agglomeration in terms of products and services. A significant number of businesses import products and services from outside the region, citing the lack of availability locally and perceptions of higher costs. • The Study Area is perceived to have high transportation costs, high municipal taxes, and slow approval process for municipal permits. • There is an inadequate balance between commercial/industrial and residential growth. The lack of employment within an area transfers into lost revenues through taxes as well as the outflow of expenditure dollars. • A considerable number of area businesses only serve the local community and therefore there are no linkages to the outside markets that would help fuel economies of agglomeration – ‘clustering’. • For the most part the Study Area’s “Main Streets” are in need of revitalization and do not provide a point of attraction for new businesses. • There is a lack of awareness as to the variety/diversity of industries in the area. Need to be more aggressive in demonstrating the viability of the area as a location option. 42 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Formatted: Font color: White, English (U.S.) OPPORTUNITIES • The Study Area has a large amount of Industrial land that, if serviced, would prove very attractive to new and expanding/re-locating businesses, particularly companies that are looking to relocate from the GTA. Within the Study Area, a significant number of businesses have reported plans to expand and increase employment over the next two years. • The Study Area would be well positioned for business attraction, if the development of both the New Tecumseh and Doral Business Parks were to proceed. • Marketing efforts should more aggressively focus on industries that will be sensitive to cost in their business operations. • The City of Barrie continues to experience phenomenal population growth, with a corresponding growth in employment also expected. As it currently stands the lack of available industrial in the City of Barrie, suggests the demand for future employment lands will likely not be met. The Study Area has the opportunity to capitalize on the growth potential and the demand for serviced development land. • The Study Area has the opportunity to market all four municipalities in their diverse nature and hence cater to a very broad range of industries. Furthermore, due to the various locational strengths/weaknesses of industrial sites, the Study Area will also be able to offer a range of industrial land prices and corresponding visibility/accessibility. • With the intense pressure for residential development pushing northward from the GTA the Study Area has the opportunity to provide not only residential development but corresponding employment uses that will ensure that the Study Area does not become a net exporter of jobs to other municipalities. This would also tie into the Province’s Smart Growth initiative. • Provide support for the development of public transit along the north-south corridor. • Provide greater support assisting local businesses to develop existing and new markets and in particular how to market and promote their businesses. • The Study Area needs to develop a focused approach to its marketing and investment attraction efforts. More attention should be given to developing a consistent and relevant message with respect to the advantages and opportunities for doing business in the area. 43 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Formatted: Font color: White, English (U.S.) THREATS • The inability to provide serviced industrial land will be the most significant impediment to executing any business attraction strategy. As such, water and sewer availability and costs are seen as an important factor in ensuring the area’s competitiveness in the future. • Competitive and comparative jurisdictions all benefit from an inventory of serviced ready to go industrial land as well as municipally operated industrial parks. • Ministry representatives with MEDT and OMAF have indicated that more than 80% of the leads they are responding to require serviced, ready to go industrial land. • A number of businesses have indicated that they will be expanding. Without an adequate choice of serviced industrial lands, the Study Area runs the risk of loosing businesses. A number of businesses also anticipate difficulties expanding related to finding available buildings, labour and financing. • There is a possibility that the commercial character of Highway 400 may discourage industrial business investment, although demand for industrial land may negate such concerns. • The existence of Honda in New Tecumseth will likely preclude the creation of an automotive industrial cluster (especially within New Tecumseth), in part due to the high wages paid by Honda and its anti-union stance. Therefore, the proximity of New Tecumseh’s planned industrial park to the existing Honda operation may be a deterrent for some industries. • Currently serviced industrial land (especially in Innisfil and New Tecumseth) is priced very high in comparison to other municipalities with similar locational characteristics. • Of 111 Census Agglomerations researched by the Bank of Montreal, Barrie is ranked 15th in terms of projected small business output between 2002-2007. Although the proximity to Barrie provides many advantages, Barrie’s attractiveness to small business is seen as significant competition to the Study Area. • The lack of a focused approach to investment attraction will undermine efforts to attract industry. 44 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 9 Industry SWOT Analysis This section provides the results of our industry cluster SWOTs. These SWOTs represent a more focused industry analysis based on the four broad sectors identified earlier in report. Figure 9-1 shows the broad target sectors, as well as the specific industry that are recommended for the Study Area. The broad target sectors defined within Figure 9-1, (Agriculture, Manufacturing, Transportation and Warehousing and Wholesale Trade/Retail Trade) are a result of the first phase of this report. The specific industries recommended for the Study Area are based in part on an analysis of the economic development efforts in comparative communities, an understanding of the growth fundamentals for each of the four broad sectors and specific industry sectors, as well as information from one-on-one interviews. As can be seen in Figure 9-1, each of the specific industry sectors has a linkage to the broad target sectors. For example, the Food Processing industry has links to the Agricultural sector (primary inputs), the Manufacturing sector (processing), Transportation and Warehousing (distribution) and Wholesale Trade/Retail Trade (end user). Therefore, each of the specific industries recommended for the Study Area, will have the opportunity to create numerous forward and backward linkages to new and existing businesses in the Study Area. The ensuing SWOT analysis on the specific industry sectors will result in FIGURE 9-1: TARGETED MESSAGING BROAD TARGET SECTOR TRANSPORTATION WHOLESALE TRADE/ AGRICULTURE MANUFACTURING AND WAREHOUSING RETAIL TRADE SPECIFIC INDUSTRY SECTORS OTHER FOOD PROCESSING PLASTICS MANUFACTURING FABRICATED METAL PRODUCT MACHINERY CHEMICAL SWOT ANALYSIS TARGETED MESSAGING 45 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis the targeted messaging for the Study Area. 9.1 Specific Target Sectors As detailed in Section 5, the specific target sectors recommended for the Study Area fulfil set criteria: 1. The identified sectors tie into the target initiatives supported by the provincial investment attraction agencies. 2. The identified sectors represent a realistic business opportunity. 3. The identified target sectors compliment the existing local industrial base. 4. The identified target sectors compliment the existing local industrial base and labour force. 5. The identified target sectors are anticipated to have a significant and sustaining impact on the Study Area economy. 6. The attraction of the identified target sectors will not require excessive capital investment on the part of the municipalities. Based on our research, it is expected that the majority of firms that would be attracted to the Study Area will be Small and Medium Sized Enterprises (known collectively as the SME sector). Small businesses are defined as firms with less than 50 employees and medium-sized enterprises are defined as firms with 50 or more employees but less than 500. The SME sector in Canada accounts for 99% of the firms and 63% of the employment, and therefore plays a significant role within the economy as a whole. Since 1983, 78% of all new jobs in Canada have been created by SMEs.13 As indicated in Figure 9-1 our findings suggest opportunities for business attraction in the following sectors:14 Food Processing This sub sector comprises establishments primarily engaged in producing food for human or animal consumption. The principal activities within this industry relate to food processing, warehousing and 13 “SME Job Engine Drives Canadian Employment Growth”, Small Business Research Volume 3, October 2003. BMO Financial Group, Economics Department 14 Definitions are based on the North American Industrial Classification Structure 2002 (NAICS) 46 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis distribution and retailing and food service. As seen in Appendix B there are a number of products within the food market poised for growth, including: • Cereal products • Biscuits and Crackers • Snack Foods • Pet Foods • Sauces and Condiments • Nutraceuticals Plastics This sub sector comprises establishments primarily engaged in making goods by processing plastics materials. The plastics industry caters to a wide range of mid and end users including the automotive sector, food packaging and household goods. • Automotive – Plastics are increasingly being used within the automotive sector, where they are replacing metal parts. • Packaging – Plastics play a significant role in the packaging industry where they provide a lighter and smaller (weight and volume) solution to traditional packing materials. • Construction – Foamed plastic insulation, vinyl windows, and doors are all standard products within the construction industry. Other Manufacturing The other manufacturing sector as defined by urbanMetrics is a broader sector containing three sub sectors that share similar locational characteristics and provide a host of additional forward and backward linkages to supply and retail sectors. • Machinery Manufacturing - This sub sector comprises establishments primarily engaged in manufacturing industrial and commercial machinery. These establishments assemble parts into components, subassemblies and complete machines. They may make the parts themselves, using general metal-working processes, or purchase them. Establishments tend to specialize in producing machinery designed for particular applications, and this is reflected in the structure of the industry groups and industries. A broad distinction exists between general-purpose machinery, that is designed to be used in a variety of industrial applications, such as pumping or machining, and special-purpose machinery, that is designed to be used in a particular industry, such as agriculture or printing. • Chemical Manufacturing - This sub sector comprises establishments primarily engaged in manufacturing chemicals and chemical preparations, from organic and inorganic raw 47 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis materials. Chemical manufacturing spans a broad range of activities. The activities considered relevant to this discussion are smaller in nature catering to the household applications such as soaps and cleaning solvents. • Fabricated Metal Products - This sub sector comprises establishments primarily engaged in forging, stamping, forming, turning and joining processes to produce ferrous and non- ferrous metal products, such as cutlery and hand tools, architectural and structural metal products, boilers, tanks and shipping containers, hardware, spring and wire products, turned products, and bolts, nuts and screws. 48 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis FOOD PROCESSING STRENGTHS WEAKNESSES Location: Well located in the heart of Canada’s most Labour: In the mid to long term, the Study Area, similar to populated region, with good transportation access to the many municipalities around the Province will face structural GTA, the US and Pearson International Airport. Good labour shortages for skilled and semi-skilled occupations. access to suppliers and competitively priced raw material. This is due to the retirement of existing workers coupled Ontario/Toronto area is North America’s second largest with the fact that many younger people have chosen and fastest growing food cluster. different career paths outside of the skilled and semi- skilled trades. Small to medium sized firms often locate closer to the market they serve. Proximity to the GTA will be an Land: Lack of serviced industrial land ready for important consideration investment. Generally, the time between making a decision to locate and the actual initiation of the move takes between 6-8 months. Currently the Study Area does not Labour Force: Competitive wage levels, strong labour have enough serviced lands to accommodate such a force, and population growth. move. Demographic Suitability: For the most part, the food industry is labour intensive (semi-skilled) jobs. Cost: Ontario has a jurisdictional advantage with regard to cost over the US. Larger multinationals often prefer smaller urban/rural locations that offer a lower cost environment. Access to markets remains an important consideration. OPPORTUNITIES THREATS Relocation Activity: Due to increasing expansion costs, Alienating Local Businesses: There is a perception that smaller firms that initially located in Toronto will likely multinationals “get a better deal” (i.e. Honda) and therefore consider alternative locations when looking to expand. it is essential that the concerns of local firms be addressed in terms of retention and expansion. Marketing Message: A focused approach to marketing needs to occur. Emphasis should be on access to Industry Consolidation: Between 1989 and 1996 the consumer markets, situational advantages for warehousing number of food processing establishments in Canada and distribution facilities, and a low cost business dropped by 10% largely due to industry consolidation. environment. Competition in Ontario: Several urban/rural communities OMAF is aggressively targeting food processors in Ontario. across Ontario are competing for investment attraction in A FAM tour with Ministry industry staff would be extremely the food-processing sector. useful in raising the local profile for this type of industry. Serviced Land Requirement: While population threshold is not an impediment to attracting food processors, the lack of a supply of “ready to go” industrial land is seen as an impediment in the context of other communities. 49 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis PLASTICS STRENGTHS WEAKNESSES Industry Profile: Ontario is a leading player in the plastic Labour: In the mid to long term, the Study Area, similar to industry, trailing only California and Ohio in terms of total many municipalities around the Province will face structural plastics manufacturing output. The Plastics industry is labour shortages for skilled and semi-skilled occupations. labour intensive and not heavily unionzed. This is due to the retirement of existing workers coupled with the fact that many younger people have chosen different career paths outside of the skilled and semi- Location: Well located in the heart of Canada’s most skilled trades. populated region, with good access to the GTA and the US. Market presence has been established in the Barrie Economic Region. Land: Lack of serviced industrial land ready for investment. The time between making a decision to locate in a community and the actual initiation of the move takes Automotive Link: Some plastics industries are involved in between 6-8 months. A more customer service approach is automotive component manufacturing (tier 2/3 suppliers). required to ensure that these timelines are met. The location of Honda within the Study Area should be used as a marketing tool. Currently the Study Area does not have enough serviced lands to accommodate such a move. OPPORTUNITIES THREATS Growth Prospects: Average growth (real GDP) within the Competition: Barrie has successfully attracted a plastics industry is expected to be 6.4 percent between significant number of plastics related industries. 2004-2007. This is a full 3 percentage points above the manufacturing industry as a whole. Labour Force: Industries may demand a higher skill level of its employee base than is immediately evident in the Provincial Marketing: The Ontario government is Study Area. aggressively marketing the province as a “top-of-mind” location for the plastics industry. Three major product lines dominate the plastics industry packaging, construction, and automotive. Another fast growing component of this sector is telecommunication and electronic parts. Costs: With the industry being labour intensive, low cost jurisdictions with access to large consumer markets will factor prominently. 50 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis OTHER MANUFACTURING STRENGTHS WEAKNESSES Location: Well located in the heart of Canada’s most Labour: In the mid to long term, the Study Area, similar to populated region, with good access to the GTA and the many municipalities around the Province will face structural US. labour shortages for skilled and semi-skilled occupations. This is due to the retirement of existing workers coupled with the fact that many younger people have chosen Demographic Suitability: For the most part, these different career paths outside of the skilled and semi- industries require semi-skilled is labour which fits the Study skilled trades. area profile. Land: Lack of serviced industrial land ready for investment. Generally the time between making a decision to locate and the actual initiation of the move takes between 6-8 months. Currently the Study Area does not have enough serviced lands to accommodate such a move OPPORTUNITIES THREATS Growth Prospects: Solid economic growth in most of the Labour Force: Manufacturing operations will look to world’s industrialized countries is helping to drive growth jurisdictions that can provide skilled and semi-skilled globally in the field of machinery manufacturing. There is labour. also a large domestic market for process machinery. Average growth (real GDP) within the machinery industry are expected to be 4.7 percent between 2004-2007, which is above the overall average for the sector as a whole. 51 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Figure 9-2 illustrates the growth and employment prospects within the targeted sectors. The growth prospects are based on the growth in output between 2003-2007 relative to other manufacturing sectors. Average employment is based on small enterprises and is ranked within the manufacturing sector only. Therefore, as indicated in Figure 9-2, all of the recommended specific industries have mid to high growth prospects and are fairly labour intensive. FIGURE 9-2: SMALL BUSINESS MANUFACTURING SECTOR GROWTH PROSPECTS (2003-2007) AND AVERAGE SMALL BUSINESS EMPLOYMENT HIGH EMPLOYMENT PLASTICS METAL FABRICATION FOOD PROCESSING HIGH GROWTH PROSPECTS LOW GROWTH PROSPECTS MACHINERY MANUFACTURING CHEMICAL LOW EMPLOYMENT SOURCE: urbanMetrics based on data from Bank of Montreal, Small Business Research, A Sectoral View of Small Business 52 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 10 Business Attraction Plan The attraction plan contained in this section is intended to build on strategies that work. It is not a promotional document designed as a sales piece but rather as a road map to help the South communities achieve their objectives of fostering a healthy and dynamic economy. 10.1 What Drives Site Selection? Factors driving the site selection process are governed by general trends taking place in the economy. The U.S. based Area Development Magazine, conducts a comprehensive annual survey of companies from all sectors of the economy, to gauge the location-criteria that drive investments in new plants and facilities. Based on the most recent survey (published in December 2003), the following is a list of the Top-25 site selection factors in rank order. Table 10-1 2003 Corporate Survey Site Selection Factors Ranking 2002 2003 1 State and local incentives 88.0 92.7 2 Labour costs 89.9 89.7 3 Availability of skilled labour 90.9 89.0 4 Highway accessibility 86.6 88.9 5 Occupancy costs or construction costs 82.4 86.3 6 Tax exemptions 88.2 86.2 7 Corporate tax rate 84.6 85.1 8 Energy availability and costs 80.9 80.8 9 Proximity to major markets 83.7 80.0 10 Availability of land 75.2 78.1 11 Availability of telecommunication services 76.1 77.9 12 Cost of land 74.0 77.3 13 Environmental regulations 76.7 72.9 14 Low union profile 69.4 71.6 15 Availability of broadband telecom services 66.7 67.4 16 Right to work state 58.0 60.8 17 Proximity to suppliers 61.8 58.5 18 Availability of long term financing 60.0 57.5 19 Raw materials availability 56.0 55.8 20 Availability of unskilled labour 55.1 55.8 21 Accessibility to major airport 54.0 53.1 22 Training programs 44.7 47.3 23 Proximity to technical university 33.4 34.0 24 Rail road service 22.6 27.9 25 Waterway or oceanport accessibility 19.3 18.5 SOURCE: urbanMetrics inc. and Area Development Magazine, December 2003 53 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis The annual survey revealed a number of observations that are noteworthy. • About 75% of the respondents were with manufacturing firms, with the most significant number of respondents classified as manufacturers of fabricated metal products and electrical equipment & components. • For the first time, state and local incentives were identified as the most important site location factor. This is largely in response to companies looking for ways to reduce operating costs and address the steady loss of jobs to offshore locations. Between mid-2000 and mid-2003, the United States had a net decrease of 2.7 million manufacturing jobs. • It was also noted that technology has shifted the way in which a site selection analysis is completed. Technology enables more and more organizations to function and communicate remotely and this in turn means that communities once considered remote are now being considered and selected as locations for corporate expansion. Of interest too, was the fact that 51% of respondents indicated that they do not use consultants when making a site/location decisions. • Labour costs and labour availability continue to rank as a very important consideration in the selection of a suitable location. • Desktop technology and the increasing availability of on-line data also means that more and more corporations are conducting site location analysis using consultants for strategic advice and to implement the decisions being made. • The availability of sites and buildings remains one of the priority factors. A major factor hindering growth and investment in many communities is the inability to deliver a buildable site immediately. Occupancy and construction costs as well as the cost of land saw an increase in importance over last year. • Highway accessibility also increased in importance but the proximity to market and suppliers dropped in overall importance. This attests to the earlier statement that technology enables companies to function more remotely than before. Understanding the decision-making imperatives that govern site selection is fundamentally important to developing a communication/marketing strategy. At the outset, the Nottawasaga Futures needs to develop its marketing proposition around as many of the basic industry requirements as possible and couple this with success stories as they happen, as well as key profiles of companies already in the South Simcoe market. It is equally important that staff and resource persons (e.g. Business 54 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Ambassadors, Key Municipal Officials) communicate these messages clearly when meeting with clients, site selectors, government officials, corporate executives and other influencers. The following section sets out the recommended approach to Nottawasaga’s business attraction efforts. 55 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Nottawasaga Futures Business Attraction Strategy Timeline 3 to 5 years Resources Nottawasaga Futures, Economic Development Officer Key Partners Representatives from Local Industry, Key Municipal Officials, Local Utilities, Public Works/Engineering Government Resources Ministry of Agriculture and Food, Ministry of Economic Development and Trade, Ministry of Municipal Affairs Marketing Efforts The development of an integrated business attraction plan and marketing strategy should: - Present a clear and consistent message to industry and influencers - Be premised on improved levels of customer service and a more timely response to investment enquiries - Be endorsed/supported by each of the South Simcoe municipalities - Be supported by web content that informs the reader as to the strengths of the local business environment Content for Marketing Marketing material should include (can be used on an as required basis): (General) - Accurate information on the cost and availability of land and buildings in the South Simcoe communities, including the timing associated with full servicing - Accurate information on local construction/design build costs - Mapping of available industrial lands to show transportation routes and access to 400 series highways - Accurate information on local labour force costs for a range of employment categories - Labour force availability that includes the South Simcoe communities and a catchment area of 25 kilometres - Prospects for both population and employment growth in the South Simcoe area and the broader economic region - Information from all municipalities and utilities as to the state of upgrades as well as recent and ongoing capital investment to local hydro facilities, sewage treatment facilities, water capacity, road capacity, etc (Food Processing) - Information pertaining to a range of transportation options - north/south and east/west routes - Access to suppliers and competitively priced, high quality raw materials - Cost of electricity and telecommunication costs - Proximity to major consumer markets - Cost competitive business environment - Productive local labour force - participation/retention rates (Manufacturing) - Information pertaining to a range of transportation options - north/south and east/west routes - Cost competitive business environment - Local market presence - Oetiker International, Honda, F&P Manufacturing, Baxter Corporation - Proximity to U.S. and GTA markets - Competitive wage levels - Low cost serviced/partially serviced land (Plastics) - Information pertaining to a range of transportation options - north/south and east/west routes - Ready access to a large labour force - Greater Barrie area - Competitive wage levels - Proximity to Barrie/GTA automotive industry manufacturers - Proximity to Ontario and Northern US customer market and suppliers - Cost of electricity and telecommunication costs - Local market presence - e.g. Tempo Plastics Ltd. Content Maintenance The development and maintenance of all marketing material content should be the responsibility of the NF with regular updates provided by the municipalities. 56 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Nottawasaga Futures Business Attraction Strategy (cont'd) Business Development All Business Attraction efforts should be co-coordinated through Nottawasaga Futures. Efforts should focus on: (General) - Expediting the approval and introduction of serviced industrial land - Maintaining regular contact with trade and industry specialists at the Ministry of Agriculture and Food, Ministry of Municipal Affairs, and Ministry of Economic Development and Trade. It is critically important that the region's approach to business attraction is understood and supported - Reinforcing the South Simcoe brand through all collateral materials (brochure, community profile, envelopes, business cards, website etc. Ensure that your audience is always left with the same message - Acquiring 5-6 testimonials from local industry for use in an marketing/promotional material and for inclusion on the website - particular focus should be given to industries in the target sectors - Showcasing your best companies in all collateral material - Formally recruit the leading members of your business community to "talk up" the advantages of doing business in the South Simcoe communities when meeting with clients or as appropriate participating in trade shows. Establish "South Simcoe Ambassadors". Profile ambassadors in marketing material and on web site as appropriate - Advertising/promoting the services provided to business and industry as a way to develop local business/industry capacity - Co-ordinate lead follow-ups through direct phone conversations, official letters from the local mayors (if possible) and distribution of collateral material - Develop "positive" business news stories for inclusion in local papers, and web site - Feed success stories to EDCO for their Annual Directory or use in the EDCO Perspective Newsletter Business Development (Food Processing) - Pursue discussions with representatives of the Ministry of Agriculture and Food to organize a "FAM Tour" with OMAF industry specialists. Focus should be given to profiling the food producers, local infrastructure, timing for serviced land, capacity of water and sewer, and the need for one voice for the area - Consider the completion of a Food Cluster Study similar to what was completed for Ontario East and GTA - As appropriate, coordinate trade show attendance with Ontario Ministry of Agriculture and Food - Pursue opportunities to launch a "Farm Fresh" initiative and roadside sale of local cash crops, as a way to draw attention the area and build capacity for local agricultural community and tourism - In conjunction with Ontario Ministry of Agriculture and Food, host an information session for local businesses and municipal staff on the 'fundamentals of business attraction' (Manufacturing) - Pursue discussions with representatives of the Ministry of Economic Development and Trade as to the information requirements for investment leads - Establish a roundtable group to explore ambassador program feasibility and logistics - Achieve support and commitment from local Mayors and Council for an Ambassador Program - In conjunction with Ontario Ministry of Agriculture and Food, host an information session for local businesses and municipal staff on the Fundamentals of Business Attraction - As appropriate coordinate trade show attendance through Ministry of Economic Development and Trade (Plastics) - Pursue discussions with representatives of the Ministry of Economic Development and Trade as to the information requirements for investment leads. - As appropriate, coordinate trade show attendance through Ministry of Economic Development and Trade - Establish a roundtable group to explore ambassador program feasibility and logistics. - Achieve support and commitment for Ambassador Program from local Mayors and Council 57 urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Appendix A: Comparative Analysis Background urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis GENERAL COMPARATORS BACKGROUND Study Area Bradford Barrie Newmarket Orillia Orangeville Clarington Population (2001) 81,695 22,225 103,710 65,785 29,120 25,245 69,830 % of Total Population 20-24 (2001) 4.6% 6.0% 7.0% 6.0% 6.0% 5.0% 5.0% % of Total Population 25-34 (2001) 12.5% 14% 15% 12% 12% 15% 13% Population (2011) 95,200 26,700 154,400 87,000 31,330 32,700 92,780 Forecast Population Growth (2001-2011) 16.5% 20% 49% 32% 8% 25% 33% Household Income (1995) $69,259 $73,630 $63,151 $84,148 $51,201 $65,704 $73,964 Change in Population (1996-2001) 10.20% 9% 24% 13% 4% 15% 13% Total Labour Force (15+ Years, 2001) 62,460 16,890 78,275 49,220 22,780 18,490 51,705 Total Labour Force (15+ Years, 2011) 70,448 19,758 112,712 63,510 23,811 22,563 66,802 Forecast Labour Force Growth (2001-2011) 13% 17% 44% 29% 5% 22% 29% Unemployment Rate (2001) 4% 3.5% 5.7% 3.3% 6.3% 4.8% 4.9% Total Population with Post Secondary Qualifaications 24,935 6,870 34,150 23,660 9,260 7,635 22,980 % of Workforce with Post Secondary College / University Degree / Certificate 40% 41% 44% 48% 41% 41% 44% SOURCE: urbanMetrics based on data from various municipalities and 2001 Census of Canada Business Case Model Data Information Category Barrie Newmarket Orillia Orangeville Clarington Bradford Study Area Country C C C C PRODUCTION OPERATOR (CDN$/US$) $ 36,718 $ 33,287 $ 36,718 $ 33,287 $ 33,287 $ 33,287 $ 33,287 Gross Salary $ 43,000 $ 38,900 $ 43,000 $ 38,900 $ 38,900 $ 38,900 $ 38,900 PLANT MANAGER (CDN$/US$) $ 77,839 $ 70,566 $ 77,839 $ 70,566 $ 70,566 $ 70,566 $ 70,566 Gross Salary $ 91,100 $ 82,600 $ 91,100 $ 82,600 $ 82,600 $ 82,600 $ 82,600 SUPERVISOR (CDN$/US$) $ 54,526 $ 49,431 $ 54,526 $ 49,431 $ 49,431 $ 49,431 $ 49,431 Gross Salary $ 63,800 $ 57,800 $ 63,800 $ 57,800 $ 57,800 $ 57,800 $ 57,800 MATERIAL HANDLERS (CDN$/US$) $ 36,718 $ 33,287 $ 36,718 $ 33,287 $ 33,287 $ 33,287 $ 33,287 Gross Salary $ 43,000 $ 38,900 $ 43,000 $ 38,900 $ 38,900 $ 38,900 $ 38,900 QUALITY ASSURANCE (CDN$/US$) $ 52,755 $ 47,825 $ 52,755 $ 47,825 $ 47,825 $ 47,825 $ 47,825 Gross Salary $ 61,700 $ 56,000 $ 61,700 $ 56,000 $ 56,000 $ 56,000 $ 56,000 MAINTENANCE (CDN$/US$) $ 56,210 $ 50,958 $ 56,210 $ 50,958 $ 50,958 $ 50,958 $ 50,958 Gross Salary $ 65,800 $ 59,600 $ 65,800 $ 59,600 $ 59,600 $ 59,600 $ 59,600 ENGINEERING (CDN$/US$) $ 64,779 $ 64,450 $ 64,779 $ 64,450 $ 64,450 $ 64,450 $ 64,450 Gross Salary $ 75,800 $ 75,400 $ 75,800 $ 75,400 $ 75,400 $ 75,400 $ 75,400 HUMAN RESOURCES (CDN$/US$) $ 48,800 $ 44,240 $ 48,800 $ 44,240 $ 44,240 $ 44,240 $ 44,240 Gross Salary $ 57,100 $ 51,800 $ 57,100 $ 51,800 $ 51,800 $ 51,800 $ 51,800 ADMINISTRATION (CDN$/US$) $ 33,714 $ 36,129 $ 33,714 $ 36,129 $ 36,129 $ 36,129 $ 36,129 Gross Salary $ 39,400 $ 42,300 $ 39,400 $ 42,300 $ 42,300 $ 42,300 $ 42,300 INFORMATION SYSTEMS (CDN$/US$) $ 56,343 $ 61,012 $ 56,343 $ 61,012 $ 61,012 $ 61,012 $ 61,012 Gross Salary $ 65,900 $ 71,400 $ 65,900 $ 71,400 $ 71,400 $ 71,400 $ 71,400 SALES MANAGER (CDN$/US$) $ 80,840 $ 85,029 $ 80,840 $ 85,029 $ 85,029 $ 85,029 $ 85,029 Gross Salary $ 94,600 $ 99,500 $ 94,600 $ 99,500 $ 99,500 $ 99,500 $ 99,500 MARKETING (CDN$/US$) $ 56,637 $ 59,950 $ 56,637 $ 59,950 $ 59,950 $ 59,950 $ 59,950 Gross Salary $ 66,300 $ 70,100 $ 66,300 $ 70,100 $ 70,100 $ 70,100 $ 70,100 PROCUREMENT (CDN$/US$) $ 46,395 $ 42,060 $ 46,395 $ 42,060 $ 42,060 $ 42,060 $ 42,060 Gross Salary $ 54,300 $ 49,200 $ 54,300 $ 49,200 $ 49,200 $ 49,200 $ 49,200 MANAGING DIRECTOR (CDN$/US$) $ 136,177 $ 123,453 $ 136,177 $ 123,453 $ 123,453 $ 123,453 $ 123,453 Gross Salary $ 159,300 $ 144,400 $ 159,300 $ 144,400 $ 144,400 $ 144,400 $ 144,400 Land Value (C$/per acre.) $250,000 $200,000 $70,000 $120,000 $75,000 $175,000 $141,667 Land Value (US$/sq.ft.) $185,000 $148,000 $51,800 $120,000 $75,000 $175,000 $141,667 Electricity Rates (C$/US$/kWh) $3.8300 $3.3750 $3.7100 $3.6700 $3.8800 $3.8300 $3.8300 Electricity Rates (US$/kWh) $2.8342 $2.4975 $2.7454 $2.7158 $2.8712 $2.8342 $2.8342 SOURCE: urbanMetrics based on www.2Ontario.com, BMA Consultants Municipal Study 2002 , and conversations with various Realtors A-i urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis 2003 Industrial Land Tax Rates - Selected Ontario Municipalities OCCUPIED/FULL SERVICE VACANT EXCESS Area Municipal Rate Education Rate TOTAL Municipal Rate Education Rate TOTAL Municipal Rate Education Rate TOTAL Barrie 1.653721 2.032655 3.686376 1.074919 1.321226 2.396145 1.074919 1.321226 2.396145 Newmarket n/a 2.033891 3.202733 n/a 1.322029 2.081776 n/a n/a n/a Orillia 2.0459925 2.686408 4.732333 1.3229851 1.746165 3.076016 1.3229851 1.746165 3.076016 Orangeville Industrial n/a n/a 4.800872 n/a n/a 3.36068 n/a n/a 3.36068 Large Industrial n/a n/a 4.800972 n/a n/a n/a n/a n/a 3.36068 Clarington Industrial 0.00893724 0.02193986 4.586159 0.0056092 0.01426091 2.9810219 0.0058092 0.01426091 2.9810219 Large Industrial 0.01110728 0.02726705 5.699718 n/a n/a n/a n/a n/a n/a Bradford 4.316348 3.156082 7.47243 2.805639 2.051453 4.857092 2.805639 2.051453 4.857092 A-ii urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Appendix B: Food Processing Growth Prospects urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis APPENDIX B FOOD PROCESSING GROWTH PROSPECTS DEMOGRAPHIC AND MARKET DRIVERS MARKET DEMANDS PRODUCTS POISED FOR GROWTH Modest population growth Healthy Foods (less fat, less salt, low cholesterol) Cereal Products Aging population (“greying”) Safe and environmentally friendly foods Lean Meats Increasing awareness of food safety concerns. High quality (including inputs) Fish and Seafood Increased levels of Asian immigration (decreased European) Sensory Appeal Low-fat dairy products Activity-laden families with time constraints. Sophistication of tastes for international and ethnic foods Sauces and Condiments Ethnic Cuisine Biscuits/Crackers “Ready-to-eat” Snack foods Freshness (or perceived freshness) Packaged/Prepared Fruits, Vegetables and Salads Pre-cooked meal solutions Beverages (water, juice, wine, beer, distilled spirits) Nutraceuticals Pet Foods SOURCE: urbanMetrics inc adopted from Agriculture and Food Canada: Food Bureau (1998) B-i urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Appendix C: Key Informants urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Nottawasaga Futures Valerie Ryan – Chief Executive Officer Margo Cooney – Community Economic Development Officer Simcoe County Ian Bender – Director of Planning Town of New Tecumseth – Elected Officials James W. Smith – Councillor Dennis Egan – Councillor Town of New Tecumseth - Staff Terri Caron – Chief Administrative Officer J.J. Paul Whiteside – Chief Financial Officer Ian Goodfellow – Manager of Finance/Deputy Treasurer Eric Taylor – Manager of Planning Andrew D. Pearce – Manager of Engineering Town of Innisfil – Elected Officials Bill Pring – Councillor Town of Innisfil – Staff John Skorobohacz – Chief Administrative Officer R. Wayne Young – Manager of Operational Services Grant W. Shellswell – Engineering Technologist Jim Hosick – Principal Planner Township of Essa – Elected Official Terry Dowdall – Deputy Mayor C-i urbanMetrics inc. market, economic and strategic advisors
  • Business Attraction Strategy and Competitive Analysis Township of Essa – Staff Greg Murphy – Chief Administrative Officer Colleen Phillips – Manager Planning and Development Township of Adjala -Tosorontio – Elected Officials Tom Cook – Councillor Mary Small Brett – Councillor Margaret Bricknell – Public Member Province of Ontario Cheryl Brine – Ministry of Municipal Affairs and Housing Martin Bohl – Ministry of Agriculture and Food Marilyn Bidgood – Ministry of Agriculture and Food Greg Wooten, Ministry of Economic Development and Trade David Aldersley, Ministry of Economic Development and Trade Industry Stakeholders (Representatives from the following firms were interviewed) Tarpin Lumber Loretto Inn Canoe Springs Wardlaw Farms Tempo Plastics Lefroy Harbour Resorts Doral International South Simcoe Potato Growers Association Baxter Oetiker Innisfil Hydro Honda Home Life Realty Prudential Realty C-ii urbanMetrics inc. market, economic and strategic advisors
  • Slide 1 ___________________________________ ___________________________________ ___________________________________ Nutrient Management ___________________________________ Biosolids Beneficial Use Program ___________________________________ ___________________________________ ___________________________________ Slide 2 ___________________________________ Municipal Wastewater Treatment ___________________________________ ___________________________________ • 3 products of a municipal Wastewater Treatment Plant. ___________________________________ ___________________________________ ___________________________________ ___________________________________ Slide 3 ___________________________________ Liquid ___________________________________ • Clean water effluent discharged into Lake Simcoe ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________
  • Slide 4 ___________________________________ Solids (Inorganics) (Inorganics) ___________________________________ • Sent to Landfill ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ Slide 5 ___________________________________ Biosolids (Organics) ___________________________________ • Further Treat pathogens and odor by extended biological activity. ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ Slide 6 ___________________________________ What is a Municipal Biosolid? ___________________________________ • Treated, quality controlled, by-product of by- municipal wastewater treatment. ___________________________________ • Biosolids are organic in nature and contain fertilizer constituents including nitrogen, phosphorous and beneficial metals. ___________________________________ • Biologically stabilized through aerobic digestion which destroys most of the bacteria and reduces odors leaving an organic material ___________________________________ rich in plant nutrients. ___________________________________ ___________________________________
  • Slide 7 ___________________________________ Town of Innisfil Digestion Facility ___________________________________ • Converts organic matter to CO2 & water. • Able to land apply due to the high nutrient ___________________________________ value of the Biosolids. • Taking advantage of the lack of industry ___________________________________ chemicals coming in which Reduces Biosolids quality. ___________________________________ ___________________________________ ___________________________________ Slide 8 ___________________________________ Biosolids In Storage ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ Slide 9 ___________________________________ Does it contain Pathogens? ___________________________________ • Aerobic Digestion significantly reduces the number of pathogenic organisms present. ___________________________________ • Guidelines and regulations are designed to ensure that they don’t risk human health ___________________________________ impact the surrounding environment by: - When and how Biosolids are applied - Types crops receiving ___________________________________ - Waiting periods ___________________________________ ___________________________________
  • Slide 10 ___________________________________ What about the metals? ___________________________________ Regulated limitations of 11 metals Manganese, iron, zinc, copper, boron ___________________________________ -Natural and necessary components of healthy plant growth and are extracted from the soil by plant roots. ___________________________________ Selenium and Cobalt -Important for animals to aid in the ___________________________________ absorption of vitamins. ___________________________________ ___________________________________ Slide 11 ___________________________________ Alternatives ___________________________________ • Landfill (disposal) • Incineration (disposal) ___________________________________ • Pelletization (beneficial re-use) re- • Composting (beneficial re-use) re- ___________________________________ ___________________________________ ___________________________________ ___________________________________ Slide 12 ___________________________________ Ontario Regulation 267/03 ___________________________________ • Revised to put more responsibility on generators (us) ___________________________________ • Forcing the requirement of approved contingencies/strategies ___________________________________ • Wider public acceptance • Health and Environmental Risks ___________________________________ ___________________________________ ___________________________________
  • Slide 13 ___________________________________ Ontario Regulation 267/03 ___________________________________ • What Stays the Same - Certificates of Approval ___________________________________ - MOE site inspections, compliance & enforcement. - Metal Criteria ___________________________________ - Separation Distances - Waiting periods ___________________________________ ___________________________________ ___________________________________ Slide 14 ___________________________________ Ontario Regulation 267/03 ___________________________________ • What Changes (Generators) - Nutrient Management Strategy (NMS) ___________________________________ - Contingency plan - Sampling protocol & quality criteria - E.coli limits ___________________________________ - No more provisions for “marginal” waste - 240 days storage ___________________________________ - Training requirements to complete NMS ___________________________________ ___________________________________ Slide 15 ___________________________________ Ontario Regulation 267/03 ___________________________________ • What Changes (Land Application) - 20m buffer from water courses ___________________________________ - No high trajectory guns - Slope requirements, soil permeability ___________________________________ ___________________________________ ___________________________________ ___________________________________
  • Slide 16 ___________________________________ Manage Our Risk ___________________________________ • Best Management Practices • Improved Biosolids quality ___________________________________ • Improved application methods • Field management ___________________________________ - setbacks, permeability, structure, recordkeeping. • Increase public acceptance with education ___________________________________ and available resources. ___________________________________ ___________________________________ Slide 17 ___________________________________ Biosolid Injection Method ___________________________________ • Reduce the risk of runoff • Less volitile loss of nitrogen ___________________________________ • Less odour • Disruption of the macro pores to limit ___________________________________ preferential flow. ___________________________________ ___________________________________ ___________________________________ Slide 18 ___________________________________ Drag Line Application ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________
  • Slide 19 ___________________________________ Field Injection Unit ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ Slide 20 ___________________________________ Goals ___________________________________ • Gain confidence from the public • Communication and relationships with ___________________________________ farming community • Best management practices. ___________________________________ ___________________________________ ___________________________________ ___________________________________ Slide 21 ___________________________________ ___________________________________ Questions? ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________
  • PRIVACY DISCLAIMER: Please note that, pursuant to the Municipal Freedom of Information and Protection of Privacy Act, personal information contained within correspondence attached to this list (and any correspondence received) is considered private information, unless explicit permission to share the information is received. As such, please do not share this information. Thank You TOWN OF INNISFIL INFORMATION LIST Page 1 DATE: September 15, 2004 LIST NO.: 24-04 TO: Council Members and Management Staff FROM: Clerk’s Office Attached is the list of items along with a copy for your information. These items will not be put on the Council or Committee of the Whole agenda for public discussion, unless requested by Council. ACTION TAKEN ON VARIOUS ITEMS: A) THE FOLLOWING CORRESPONDENCE HAS BEEN RECEIVED AS INFORMATION AND FILED. 1. Building and Plumbing Division Analysis, August 2004. 2. The Greater Innisfil Chamber of Commerce received Aug 30/04, re: Community Reinvestment Fund and the Greater Innisfil Chamber of Commerce. 3. Association of Municipalities of Ontario re: Province Consults on Ending Mandatory Retirement. 4. News Release from the Ministry of Labour re: McGuinty Government Providing Fairness and Choice for Employees 65 and Over. 5. OSPCA, Monthly Report of Animal Control Operations – July 2004. 6. County of Simcoe re: Implementation of 2 bag limit/week for waste plus bag tag system as of January 1, 2005. …/
  • PAGE 2 OF 2 INFORMATION LIST NO. 24-04 SEPTEMBER 15, 2004 B) THE FOLLOWING CORRESPONDENCE HAS BEEN RECEIVED AND REFERRED TO THE SERVICE AREA INDICATED FOR REPLY, WITH A COPY TO COUNCIL AS INFORMATION BY DATE INDICATED. 1. Correspondence from E. Axelrod, a resident of Innisfil, dated Aug 26/04 regarding several items of concern with respect to road issues. (Director of Community Services – Oct 15/04) 2. Correspondence from D. Bradshaw, a resident of Innisfil outlining concerns over the quality of water on Innisfil Beach Road. (Director of Community Services – Oct 1/04) C) THE FOLLOWING CORRESPONDENCE HAS BEEN RECEIVED AND REFERRED TO THE SERVICE AREA INDICATED FOR REVIEW AND REPORT BY DUE DATE. 1. Correspondence from I. Webb, received Aug 27/04, regarding a request to have an automatic door installed that the Stroud Library. (Director of Community Services – Oct 20/04) D) THE FOLLOWING CORRESPONDENCE HAS BEEN RECEIVED AND REFERRED TO THE SERVICE AREA INDICATED FOR REPLY/ACTION. 1. Ministry of Municipal Affairs and Housing re: Building code Change: Amendment to prevent builder-appointed RCAs. (Director of Planning and Development/Inspection Services) 2. Lake Simcoe Region Conservation Authority notice of completion of class environmental assessment which studied the phosphorus input to Lake Simcoe from the Holland Marsh. (Director of Planning and Development) 3. Lake Simcoe Region Conservation Authority re: Development of a Stormwater Project using New Technology. (Director of Planning and Development) 4. Town of Bradford West Gwillimbury notice of public meeting on proposed zoning by- law amendment in respect to Lot 5, Concession 13, known as 4422 5th Sideroad. (Director of Planning and Development) 5. The Competitive Institute 7th Annual Global Conference, Sept 27 – Oct 1, 2004 re: Building Innovative Clusters for Competitive Advantage. (Economic Development Committee) 6. Lake Simcoe Region Conservation Authority re: Bill 26 Strong Communities Planning Reform Initiatives. (Director of Planning and Development). 7. Ministry of Municipal Affairs re: Service Delivery Guides. (CAO, Directors & Treasurer)