Economic Development Action Plan

Transcription

1 Economic Development Action Plan Presented by Kyle Benham, Director, Economic Development Services January 2019

2 Oshawa s Economy Has Seen Steady Growth 69,900+ Jobs in Oshawa Year Over Year Change: 2.8% 5 Year Change: 10.3% Historically Low Unemployment Rates Strongest GDP Growth in Canada 2.6% Growth Projected for 2018 Record Construction/Permit Levels 10,600+ Businesses Year Over Year Change: 6.7% 5 Year Change: 38.42% 15,000 10,000 5, ,000 68,000 64,000 60,000 Number of Jobs Number of Companies

3 Economic Transformation Accompanied Growth Established a Balanced/Diverse Economic Base Top Ten Industries in 2017 Transformation Was Driven by Healthcare, Education, and Professional Services Health Care is Now the Largest Sector Small Business Growth, Increasing Student Population and Downtown Revitalization Also Added Dynamic Dimensions to the Economy 1% 3% 3% 7% 19% 8% 8% 18% 14% 10% 9% Health Care Retail Trade Educational Services Manufacturing Admin and Support Public Administration Accomodations & Food Services Professional Services Finance and Insurance Information and Cultural Other

4 Result: Top Ten Most Diverse Economies in Canada Conference Board of Canada: Economic Diversity Index

5 Challenges: General Motors General Motors Now Plays a Smaller Role in the City s Economy All Employment - City of Oshawa Over the Past 10 Years, GM Has Reduced Its Workforce (From 8,300 to 2,500). GM Jobs Account for 3.6% of Oshawa s 70,000 Jobs and 2.4% of Automotive Jobs in Ontario 3.6% 96.4% Oshawa is Not a Single Industry Economy GM Manufacturing Jobs - Oshawa All Other Jobs - Oshawa

6 On-going Challenges Lack of Marketable Employment Land Only 70 Acres Available for Immediate Development No Large Sites Little Industrial Space for Lease (1% vacancy) Flat ICI Assessment/Tax Growth Private Sector Growth Dominated by Lower-Value Service Jobs Imbalance Between Residents Skills and Type of Jobs High Downtown Vacancy Rates Office (30%), Retail (11%) Old Image as a One Industry Town

7 Available Land is Fraction of What s Needed Oshawa s Employment Land Base - Percentage 80% 69.90% 70% % Total Emp. Land 60% 50% 40% 30% 20% 41.60% 17.85% 10% 0% 2.04% Developable Vacant Shovel Ready Available

8 ICI Tax Yield Has Been Flat 300,000, ,000, ,000, ,000, ,000,000 Commercial Tax Levies Residential Tax Levies Industrial Tax Levies Total 50,000,

9 Fit Between Jobs and Labour Force Local Jobs Vs. Residents Working in the Sector - 2,000 4,000 6,000 8,000 10,000 12,000 Construction Manufacturing Wholesale trade Finance and insurance Retail trade Transport and warehousing Prof., scientific and tech services Information and cultural industries Other services (except public admin) Public administration Accommodation and food services Arts, entertainment and recreation Educational services Real estate and rental and leasing Management of companies Health care and social assistance Labour Force Jobs

10 Two Economic Imperatives Economic Recovery Strengthen Oshawa s Economic Fundamentals Increasing the Supply of Marketable Employment Land Supporting the Scale-up of Small-Medium Sized Enterprises Continuing Downtown Revitalization Growing/Attracting Higher-Value Jobs Improving Oshawa s Image 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 To Meet Official Plan Job Targets: 22,400 Total New Jobs 1,600 per year 11,200 Emp. Land Jobs 800 per year 975 per year (post GM) 68,270 75,305 34,135 37,653 84,660 86,835 42,330 43,418 90, ,395 OP Employment Target Employment Target - Emp Lands

11 Economic Recovery Preferred Solution - Save the Plant/Jobs Ramp-up Economic Development Activities To: Maintain the Confidence of Investors - Proceed with Existing and Proposed Projects Support the Transition Reengagement of the Labour Force Leverage the Attention we are Receiving to Drive Short and Longer Term Interest in Investing Create Real and Immediate Employment Development Opportunities Advance Initiatives to Support the On-going Growth and Diversification of the Economy

12 Strengthen The Economic Base Economic Development Priorities Establish a Pipeline Of 500,000+ SF of New ICI Development Per Year Support Existing Businesses Ability to Operate and Grow Improve the Balance Between the Labour Force Skills in the Community and Type of Available Jobs Establish Oshawa s as the East GTA s Growth Centre Move the Downtown to Its Renaissance Tipping Point Establish Innovation/Entrepreneurship as an Economic Engine

13 ICI Development Pipeline Action Items Increase the Supply of Investment Ready Land Complete Northwoods Zoning Push for Regional Servicing Extend Broadband Backbone Target and Engage Owners of Underutilized Sites Attract New ICI Developers to the Market

14 Labour Force Skills Balance Action Items Target and Attract Companies in Sectors Better Aligned with the Local Talent Pool Professional and Technical Services Health Care Autonomous/Connected Vehicles Applied Artificial Intelligence Lift Industry 3S Lighting International One of Canadas Fastest Growing Companies Deliver Business Retention and Expansion Activities to Help Existing Companies to Grow-in-Place Engage UOIT, Durham College, Trent to Align Their Programs with Oshawa s Growth Objectives

15 Reputation Action Items Use Social Media and Direct Marketing to Reach Target Audiences Highlighting Oshawa as the East GTA s Growth/ Innovation Centre Tech and Prof. Services Companies Family Owned Companies Development Community Niche Sectors Capture/Create a Steady Flow of Local Business Content for Use Across Multiple Channels Engage Community Partners to Co-Market and Increase Earned Media

16 Downtown Renaissance Action Items Improve the Physical Environment and Downtown Experience Implement Multi-Year Streetscape Enhancement Program Support a Widening Range of Events and Activities Explore WiFi Opportunities Engage Reticent Property Owners Work with BIA/Others on Image/Safety Issues Directly Market our Vision to Companies that Would Benefit from the Location (IT, Prof. Services, Culinary, Entertainment, Specialty Retail) Continue to Support the Growth of the Population Base

17 Innovation/Entrepreneurship Action Items Partner with Entrepreneurial Ecosystem Players to Promote and Strengthen Strategic Initiatives Spark Program Expansion and Foreign Business Engagement Lakeridge Innovation Centre ACE Facility Expansion Artificial Intelligence Hub Complete the Business Case and Assess Implementation Options for Proposed Downtown Innovation Hub Partner with BACD and the Region to Build the Capacity of Small Companies to Scale Their Operations.

18 The Economic Development Team Sue Lupton - Downtown/Business Development Brett Murphy Marketing/Investment Attraction Workplan Examples: Company outreach & engagement Entrepreneurship partnerships Innovation hub business case Lift sector development initiative AVIN initiatives AI hub initiatives Broadband implementation Smart cities support Workplan Examples: Social media & advertising Marketing campaigns - lift industry - ai/innovation hub - professional services Web site enrichment Content/materials development Co-marketing partnerships (tech talks) Mary Cousineau Economic/Sector Development Workplan Examples: Company outreach & engagement Entrepreneurship partnerships Innovation hub business case Lift sector development initiative AVIN initiatives AI hub initiatives Broadband implementation Smart cities support Laraib Arshad Business Intelligence Workplan Examples: Investment support Economic base analysis Downtown vacancy survey Employment lands inventory Available properties system Film permitting Tour of growth and development Sector and economic policy research