Greater Halifax Economic Background


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Halifax, Nova Scotia, is renewing its Economic Strategy for 2011-2016 in collaboration with all three levels of government, business and community.

This presentation provides economic background

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Greater Halifax Economic Background

  1. 1. Renewal of Halifax Regional Municipality’s <br />Economic Strategy <br />Economic BackgroundJune, 2010<br />
  2. 2.
  3. 3. 3<br />
  4. 4. Halifax Snapshot<br />Halifax Quick Facts<br />Population – Over 370,000<br />Labour Force Size – 230,000<br />400,000 people within 30 miles<br />Unemployment rate – 6.5%<br />Real GDP 12,909(million) 1.4% growth<br />Conference board forecasted that Real GDP in Halifax in 2009 grew by 1.4%, ahead of cities such as: Calgary, Toronto and Vancouver.<br />Halifax’s GDP represents 47% of Provincial GDP<br />4<br />
  5. 5. 10-year Economic Overview<br />Sources: Statistics Canada, CMHC, MPHEC<br />5<br />
  6. 6. New Jobs in Greater Halifax<br />Financial Services<br />• Butterfield Fund Services – 400 jobs<br />• Olympia Capital – 150 jobs<br />• CITCO Fund Services – 350 jobs<br />• Marsh – 150 jobs<br />• Admiral Insurance – 150 jobs<br />• Meridian Fund Services (Canada) Ltd – 50 jobs<br />• ADP Canada – 122 jobs<br />• Manulife Bank – 150 jobs<br />Aerospace and Defense<br />• IMP Aerospace Ltd. – 350 jobs<br />• General Dynamics – 110 jobs<br />• L-3 Electronics System – 210 jobs<br />Oil & Gas/Energy<br />•Deep Panuke Project – 35 jobs<br />Nearshore Outsourcing<br />•Minacs – 300 jobs<br />• Hogg Robinson Group – 250 jobs<br />Information Technology<br />• xwave – 250 jobs<br />• CGI Group Inc. – 23 jobs<br />• SportsDirect Inc. – 110 jobs<br />Other<br />•Halifax Regional Police – 36 jobs<br />• Scorpio Mining Corporation – 40 jobs<br />6<br />
  7. 7. <ul><li>60 million people within 2 hours
  8. 8. Closer to Boston than to Montreal
  9. 9. Closer to New York than to Toronto</li></ul>Halifax – Globally Well-Positioned<br /><ul><li> 60 million people within 2 hours
  10. 10. Closer to Boston than to Montreal
  11. 11. Closer to New York than to Toronto</li></ul>7<br />
  12. 12. Population by Age – Halifax 2006<br />Source: Statistics Canada<br />8<br />
  13. 13. Education Attainment<br />67%of the population of Halifax have trade, college or university qualifications –the 4th highest in Canada.<br />Source: 2006 Census of Canada, Nova Scotia Perspective, Release #7, <br />Nova Scotia Department of Finance, Statistics Division<br />9<br />
  14. 14. 10<br />
  15. 15. Recent Economic Performance<br />11<br />
  16. 16. Halifax’s labour force growth <br />has outperformed other areas of <br />Nova Scotia by a wide margin<br />12<br />
  17. 17. Wagons East<br />13<br />
  18. 18. Employment Comparison <br />Unlike the rest of Canada, Nova Scotia, and the Atlantic Provinces, Halifax has continued to create jobs throughout the recent recession<br />14<br />
  19. 19. CIBC’s index of 9 indicators places Halifax as the top performing economy in Canada<br />15<br />
  20. 20. CFIB Confidence Survey: February 2010<br />At the beginning of 2010 – Nova Scotia has the highest level of small business confidence in Canada<br />16<br />
  21. 21. Halifax’s Average Earnings Trend<br />Average earnings in Halifax have been increasing steadily over the last 4 years <br />17<br />
  22. 22. Halifax’s NSCC Campus Enrollment Trend<br />NSCC enrollment in Halifax campuses are increasing sharply and consistently.<br />18<br />
  23. 23. Halifax’s University Enrollment Trend<br />University enrollment has continued to decrease but saw a rebound in 2009.<br />19<br />
  24. 24. 20<br />
  25. 25. Quantitative Results<br />Our population has increased by more than 15,000. <br />More than 18,000 net new jobs have been created. <br />The average income has jumped by more than $4,000 <br />The jump in outmigration so evident in 2006-07 has reversed.<br />At the beginning of 2010, Nova Scotia and Halifax had the highest level of small business confidence in Canada and that index was at its highest level in four years.  <br />By the end of 2009 CIBC’s Metro Monitor told us that by a measure of 9 different indicators, Halifax had the strongest economy in Canada<br />21<br />
  26. 26. Qualitative Results<br />HRM by design has been approved and several new projects have been approved or are under construction in the Capital District<br />HRM has set infrastructure spending priorities<br />Young professionals are engaged in their community, thanks to FUSION Halifax. <br />22<br />
  27. 27. Sector Results<br />Both Port and Airport gateways have made major investments and have begun to rebound from the world recession.<br />Substantial strenthing of the finance and insurance sector…HRM’s highest wage sector<br />Stabilization of Defense and other Federal Government Employment<br />HRM is on the brink of a major investment in a new convention centre…the private component of which will add to the stock of class A downtown office space.<br />Several additional class A office projects have been proposed for the downtown core.<br />A gateway strategy has been developed but implementation is slow. <br />23<br />
  28. 28. Business Climate<br />Measurable improvements in processing times for development agreements and project approvals have been achieved.<br />However Nova Scotia’s tax and regulatory burden seems to be among the most burdensome in Canada.<br />24<br />
  29. 29. Chamber Scorecard<br />The Chamber accepted the substantial role of developing a yearly community progress report on the strategy based on established outcome measures.<br />Outcomes were mixed. Notably population, university enrolment, and public and private investment targets did not meet their stretch goals. However, significant progress was achieved in regulatory reform and most of the top 11 priority actions.<br />25<br />
  30. 30. 26<br />
  31. 31. Hub City Defined<br />The Conference Board Of Canada’s research shows that 9 Canadian cities drive an even faster rate of growth in smaller communities within the same province or region.<br />The Conference Board demonstrates growth convergence between the cities and surrounding areas…in other words gaps in GDP growth between the hub city and surrounding areas are declining rapidly. <br />The gap between GDP per capita in Halifax, surrounding centres of Nova Scotia and other Atlantic provinces shows the strongest convergence of any hub city in Canada<br />In other words, Halifax not only pulls along the economies of surrounding communities, it helps them grow even faster than the hub. <br />27<br />
  32. 32. Hub City Facts<br />Over 13,000 people from outside HRM commute to the community daily for employment. These workers bring about $600 million in income back to their communities each year from their jobs in Halifax.<br />Aside from declines in primary and manufacturing sectors employment in most other sectors was up outside of Halifax.<br />28<br />
  33. 33. Halifax is Atlantic Canada’s Economic Hub<br />Gateway<br />Digital Industries<br />Finance & Insurance <br />Ocean Industry<br />Life Science<br />Education <br />Hospitality –Tourism<br />Green-Tec<br />Real Estate – Development<br />Aerospace & Defence<br />Advanced Manufacturing<br />Hub city assets drive the economic growth of Halifax and all of Nova Scotia<br />29<br />
  34. 34. 30<br />
  35. 35. 31<br />
  36. 36. Labour market shifts demand different and new skills.<br />
  37. 37. Labour Market Outlook: Nova Scotia<br />*YTD Estimate <br />**Projection<br />33<br />
  38. 38. Population Growth 2001-2006<br />Halifax has not kept pace with growth in neighbouring cities<br />34<br />
  39. 39. Net Youth Migration<br />Aged 20 – 34 <br />2001 - 2006<br />While Halifax has had net improvement in youth migration our performance is no longer the best among medium sized cities<br />Source: Statistics Canada, Census 2006<br />35<br />
  40. 40. 36<br />
  41. 41. A Green Community<br />HRM Harbour Solutions<br />$333 million<br />First coastal city in Atlantic Canada to move to full treatment<br />Solid waste diversion at over 60%<br />Highest of any city in Canada<br />Pesticide by-law<br />Green Energy Plan<br />37<br />
  42. 42. Quality of Life<br />Vibrant arts and culture environment - symphony, theatre, art galleries, museums, historic sites, major junior hockey <br />Hub city, pub & club city<br />Variety of recreation - parks, beaches, hiking, boating, golf <br />Physical beauty<br />Over 10% of Halifax workers walk to work<br />Harbour Solutions, Recycling, Pesticide By-Law<br />38<br />
  43. 43. Quality of Life Factors, by Indicated Frequency of Importance<br />39<br />
  44. 44. 40<br />
  45. 45.
  46. 46. Myth 1: HRM’s population thinks growth is bad. <br />
  47. 47. Attitudes To Economic Growth (mean ratings; 10 = “strongly agree”)(7 is considered strong approval of a statement)<br />43<br />
  48. 48. Change Over Last 10 - 15 Years Has Been: (Total Sample: 1371)<br />44<br />
  49. 49. Myth 2: People don’t support the idea of a densely developed urban core. <br />
  50. 50. Development In Downtown Halifax (Total Sample: 1371)<br />46<br />
  51. 51. Note: Scale is 0% – 50%<br />Downtown Halifax Should Be The Location For Future Development: By Type Of Development (among those stating strong preference for town or city)<br />47<br />
  52. 52. Note: Scale is 0% – 50%<br />Downtown Halifax Should Be The Location For Future Development: By Type Of Development<br />48<br />
  53. 53. Myth 3: People don’t recognize and support downtown Halifax as ‘the showroom’ of the regional municipality. <br />
  54. 54. Development In Downtown Halifax(Total Sample: 1371)<br />50<br />
  55. 55. Who Will Benefit From (Further) Growth And Development In Downtown Halifax<br /> (Total Sample: 1371)<br />51<br />
  56. 56. n= 516 376<br />I Will Personally Benefit From Further Growth And Development In Downtown Halifax(among those stating strong preference for town or city)<br />52<br />
  57. 57. My Neighborhood Will Benefit From Further Growth & Development In Downtown Halifax (among those stating strong preference for town or city)<br />53<br />
  58. 58. Myth 4: People are opposed to tall buildings. <br />54<br />
  59. 59. A Building’s Visual Appeal Is Very Important(Total Sample: 1371)<br />55<br />
  60. 60. Support For Developments In The Downtown Core (Total Sample: 1371)<br />56<br />
  61. 61. Developments That Are 10 Stories Or Taller In The Downtown Core (among those stating strong preference for town or city)<br />57<br />
  62. 62. Developments That Are 4 to 10 Stories Tall In The Spring Garden Road Area (among those stating strong preference for town or city)<br />58<br />