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…/ 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.
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Page 1: TOWN OF INNISFIL COMMITTEE OF THE WHOLE MEETING WEDNESDAY ...

…/

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.

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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.

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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

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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

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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

144-146 Front Street West, Suite 460 Toronto, ON M5J 2L7

urbanMetrics inc. market, economic and strategic advisors

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Business Attraction Strategy and Competitive Analysis

urbanMetrics inc.

market, economic and strategic advisors

August 3, 2004

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 144-146 Front Street West, Suite 460

Toronto, ON M5J 2L7 (416) 351-8585 (416) 345-8586 (fax) www.urbanmetrics.ca

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Business Attraction Strategy and Competitive Analysis

urbanMetrics inc.

market, economic and strategic advisors

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

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Business Attraction Strategy and Competitive Analysis

urbanMetrics inc.

market, economic and strategic advisors

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

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urbanMetrics inc.

market, economic and strategic advisors

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

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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.

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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.

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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.

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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;

SOURCE: urbanMetrics inc.

FIGURE 1-1: PARTICIPATING MUNICIPALITIES (“STUDY AREA”)

East Gwillimbury

Georgina

Barrie

Springwater

Richmond Hill

Newmarket

Aurora

Whitchurch-Stouffville

Grey Highlands

MelancthonBradford

West Gwillimbury

New Tecumseth

Mulmur

Shelburne

Markham

King

InnisfilEssa

Adjala-Tosorontio

Caledon

Clearview

HW

Y 10

HWY 89

HW

Y 400 HW

Y 404

HW

Y 48

HWY 9

Amaranth

Mono

OrangevilleStudy Area

Formatted: Font: Bold

Formatted: Font: 8 pt, Bold

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• 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.

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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.

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.

SOURCE: urbanMetrics inc.

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FIGURE 2-1: REGIONAL CONTEXT Formatted: Font: Bold, Fontcolor: White

Formatted: Font: 8 pt

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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.

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

SOURCE: urbanMetrics inc.

FIGURE 2-2: EXPRESSWAY ACCESS Formatted: Font: Bold

Formatted: Font: 8 pt

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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.

4 Canada-US-Ontario-Michigan Border Transportation Partnership (2002) Planning/Need and Feasibility Study.

FIGURE 2-3: BRADFORD BYPASS AND PROPOSED 427 EXTENSION

SOURCE: Ontario Ministry of Transportation

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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.

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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, provided there are sufficient employment opportunities.

In terms of educational attainment, 33% of the population 20 years and older have Trade Certificates or Non-University Diplomas with an additional 11% possessing University Degrees. When compared to the province, the Township has a higher percentage of residents with 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)

FIGURE 3-1ADJALA- TOSORONTIO AGE BREAKDOWN

SOURCE: urbanMetrics inc., based on Statistics Canada 1996 and 2001 Census of Canada

0

500

1,000

1,500

2,000

2,500

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5 to 1

9

20 to

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25 to

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35 to

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54

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64

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75 +

19962001

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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% obtaining a University Degree. When compared to the Province as a whole, New Tecumseth has a slightly higher proportion of its population with a Trade Certificate or Diploma (30.6% vs. 27.3%), and a significantly lower proportion with a University degree (11% vs. 19%).

Similar to the Township of Adjala-Tosorontio the majority of the resident labour force falls into the category of Sale and Service followed by Trades, Transportation and Equipment Manufacturers.

6 Ibid.

FIGURE 3-2NEW TECUMSTH AGE BREAKDOWN

SOURCE: urbanMetrics inc., based on Statistics Canada 1996 and 2001 Census of Canada

0

1,000

2,000

3,000

4,000

5,000

6,000

0 to 4

5 to 1

9

20 to

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25 to

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35 to

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65 to

74 75 +

19962001

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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 the population 20 years and over have obtained a Trade Certificate or Non-University Diploma with an additional 7.2% possessing a University Degree. When compared to the Province as a whole, Innisfil has a higher proportion of its population with a trade certificate diploma (33.8% vs. 27.3%), and a significantly lower proportion with a university degree (7.2% vs. 19%).

The majority of the resident 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.

FIGURE 3-3INNISFIL AGE BREAKDOWN

SOURCE: urbanMetrics inc., based on Statistics Canada 1996 and 2001 Census of Canada

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

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75 +

19962001

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Figure 3-4 illustrates the age breakdown of the population. Between 1996 and 2001, the working age cohort of 24-54 increased by only 1%. 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. In the long term, the 5-19 age cohort, which represents the future employment base, is 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

FIGURE 3-4ESSA AGE BREAKDOWN

SOURCE: urbanMetrics inc., based on Statistics Canada 1996 and 2001 Census of Canada

0

500

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1,500

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2,500

3,000

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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.

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Total Population 15 years and over by Labour Force Activity:25 km radius from Angus, Alliston, Alcona and Beeton

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FIGURE 3-5 AVAILABLE LABOUR FORCE

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 73,330Employed 91,174 59,014 119,062 70,714Unemployed 4,975 2,374 6,134 2,601

Not in the labour force 37,251 21,268 48,422 25,350

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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:

FIGURE 4-1: COMPETITIVE AREA – THE ECONOMIC REGION

Region ofWaterloo

County ofWellington

Essa

County ofDufferin

Adjala-Tosorotio

NewTecumseth

Innisfil l

Simcoe County

Adjala-Tosorotio

NewTecumseth

InnisfillEssa

Kitchener-Waterloo-Barrie Region

Study Area

Barrie Census Agglomeration

Region ofWaterloo

County ofWellington

Essa

County ofDufferin

Adjala-Tosorotio

NewTecumseth

Innisfil l

Simcoe County

Adjala-Tosorotio

NewTecumseth

InnisfillEssa

Kitchener-Waterloo-Barrie Region

Study Area

Barrie Census Agglomeration

SOURCE: urbanMetrics inc.

Formatted: Font: Bold

Formatted: Font: 8 pt

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4.2 Population Comparisons 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 most significant growth followed by Simcoe County as a whole.

Population growth in the Study Area has been consistent with population growth in the Economic Region as a whole.

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 cohort enters the work force, there will be an increase in the local labour force within the region.9 The general age distribution is the same for the four other comparative regions, although the Study Area has the smallest representation within the 20-24 age group. This suggests that the out migration of the 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.

FIGURE 4-2POPULATION GROWTH 1996-2001, COMPETITIVE REGION (%)

SOURCE: urbanMetrics inc. based on Statistics Canada 1996 and 2001 Census of Canada

11.4%

11.1%

25.1%

14.3%

12.1%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Study Area

South Simcoe

Barrie (CA)

Simcoe County

Economic Region

FIGURE 4-3AGE BREAKDOWN - COMPETITIVE REGION

SOURCE: urbanMetrics inc., based on Statistics Canada 1996 and 2001 Census of Canada

0%

5%

10%

15%

20%

25%

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 andover

Study Area South Simcoe Barrie (CA) Simcoe County Economic Region

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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.

Similar to the comparison with the Province, the Study Area is at a comparative disadvantage with regard to the proportion of the population with some form of a university degree. As a result, the Study Area may have difficulty attracting industries that rely on a workforce with a higher level of education. Within the Economic Region, the Kitchener-Waterloo-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

FIGURE 4-4EDUCATION ATTAINMENT - COMPETITIVE REGION

SOURCE: urbanMetrics inc based on Statistics Canada 1996 and 2001 Census of Canada

32.7%9.3%

32.8%9.5%

34.4%11.2%

33.3%10.5%

30.0%14.8%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Study Area

South Simcoe

Barrie (CA)

Simcoe County

Economic Region

With a Trade Cert. or Diploma. With a Univeristy Degree

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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

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

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.

FIGURE 4.5COMPARISON OF KEY LABOUR FORCE INDICATORS (2001)

Labour Force Indicator Study Area South Simcoe Barrie (CA)Simcoe County

Economic 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

FIGURE 4-6

SOURCE: urbanMetrics based on data from Statistics Canada, 2001 Census of Canada

LABOUR FORCE BY OCCUPATION - COMPETITIVE REGION

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Management

Business, finance and administrative

Natural and applied sciences

Health occupations

Social science, education, government and religion

Art, culture, recreation and sport

Sales and service

Trades, transport and equipment operators and related

Primary industry-specific

Processing, manufacturing and utilities

Study Area South Simcoe Barrie, CA Simcoe County Economic Region

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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.

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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.

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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 dominate category, although it is forecasted that forestry and agri-food exports will be leading the rebound in 2004.

Supporting export based producers in the Province are sectors such as construction, wholesale trade, financial and business services, educational services, transportation and warehousing, as well as other sectors servicing regional businesses and households.

12 Bank of Montreal, Regional Outlook, October 30, 2003.

FIGURE 5-1BREAKDOWN OF ONTARIO'S TOTAL EXPORTS BY SECTOR (ACTUAL 2002)

SOURCE: urbanMetrics, based on Export Development Canada (EDC) Global Export Forecast

48%

22%

19%

6% 5%

Automotive

Industrial Goods

Machinery andEquipmentForestry

Agri-Food

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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.

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;

FIGURE 5-2 FIGURE 5-3

Average Growth 2004-2007 Average Growth 2004-2007

Primary Sectors Primary SectorsOil 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 SectorsAdmin. 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%

FORECAST ANNUAL AVERAGE CHANGE IN REAL GDP HIGH GROWTH SECTORS (3.5% AND ABOVE 2004-2007)

SOURCE: urbanMetrics, based on Bank of Montreal (2003) Sectoral Forecasts

SOURCE: urbanMetrics, based on Bank of Montreal (2003) Sectoral Forecasts

FORECAST ANNUAL AVERAGE CHANGE IN REAL GDP MEDIUM GROWTH SECTORS (2.5%-3.5% 2004-2007)

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• 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.

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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-Tosorontio Figure 6-1 shows the calculated LQ’s for the Township of Adjala-Tosorontio. The Township has a significant concentration of labour within the agriculture, fishing and hunting category relative to the Province. Within this category the Township has a relative concentration within pure farming and farm product wholesaler and distributors. The other concentrated

FIGURE 6-1LOCATION QUOTIENTS - ADJALA-TOSORONTIO

LOCATION QUOTIENT

11 Agriculture, forestry, fishing and hunting 12.49 56 Administrative and support, waste management and remediation services 1.54 23 Construction 1.45 41 Wholesale trade 1.41 61 Educational services 1.39 54 Professional, scientific and technical services 1.30 81 Other services (except public administration) 1.26 71 Arts, entertainment and recreation 1.15 48-49 Transportation and warehousing 1.11 72 Accommodation and food services 0.89 91 Public administration 0.72 62 Health care and social assistance 0.67 51 Information and cultural industries 0.62 44-45 Retail trade 0.49 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.

BROAD INDUSTRY SECTOR

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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 for the Town of New Tecumseth. The Town has a concentration of activity within the manufacturing sector. The largest concentration occurs within the transportation equipment manufacturing category (i.e. Honda). Other areas of relative concentration occur in agriculture, forestry, fishing and hunting category of which the majority of concentration occurs within the farming industry. New Tecumseth’s range of concentrated industries is limited, with vehicle manufacturing (Honda) and chemical manufacturing (Baxter) accounting for the majority of the manufacturing concentration.

6.4 Town of Innisfil Figure 6-3 illustrates the LQ’s for the Town of Innisfil. Innisfil’s main concentration is within the arts, entertainment and recreation category, which can attributed to the concentration of tourism and gaming activities. Innisfil also has relative concentrations in agriculture, construction, and retail trade. While Innisfil has a broad base of industry concentrations, a portion of these concentrations represents businesses servicing the local economy and population in general.

FIGURE 6-2LOCATION QUOTIENTS - NEW TECUMSETH

LOCATION QUOTIENT

31-33 Manufacturing 2.69 11 Agriculture, forestry, fishing and hunting 1.25 72 Accommodation and food services 1.00 56 Administrative and support, waste management and remediation services 1.00 41 Wholesale trade 0.92 23 Construction 0.82 81 Other services (except public administration) 0.72 62 Health care and social assistance 0.69 44-45 Retail trade 0.66 61 Educational services 0.63 53 Real estate and rental and leasing 0.46 55 Management of companies and enterprises 0.46 71 Arts, entertainment and recreation 0.45 22 Utilities 0.37 54 Professional, scientific and technical services 0.35 52 Finance and insurance 0.20 21 Mining and oil and gas extraction 0.19 91 Public administration 0.17 51 Information and cultural industries 0.17

SOURCE: urbanmetrics inc., based on data from Statistics Canada 2001 Census of Canada, Place of Work data, custom tab.

TWO DIGIT NAICS INDUSTRY SECTOR

FIGURE 6-3LOCATION QUOTIENTS - INNISFIL

LOCATION QUOTIENT

71 Arts, entertainment and recreation 3.1 11 Agriculture, forestry, fishing and hunting 3.0 23 Construction 2.3 44-45 Retail trade 1.8 53 Real estate and rental and leasing 1.5 81 Other services (except public administration) 1.2 72 Accommodation and food services 1.2 22 Utilities 1.0 61 Educational services 0.9 48-49 Transportation and warehousing 0.9 56 Administrative and support, waste management and remediation services 0.8 41 Wholesale trade 0.7 54 Professional, scientific and technical services 0.6 31-33 Manufacturing 0.6 62 Health care and social assistance 0.6 91 Public administration 0.6 51 Information and cultural industries 0.5 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.

TWO DIGIT NAICS INDUSTRY SECTOR

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6.5 Township of Essa Figure 6-4 illustrates the LQ’s for the Township of Essa. Essa’s relative concentration within the public administration category is based on the defence services located at CFB Borden. The Township also demonstrates a concentration on the agriculture sector.

6.6 Summary Overall, the four regions demonstrate a 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 has an above-average concentration in three industry sectors agriculture, public administration, and manufacturing. The concentration within the public administration category is a function of CFB Borden. Although the base provides an economic stimulus in terms of expenditures within the community there is little benefit afforded the South Simcoe communities in its attraction of new industrial growth. The remaining four industry sectors with LQ’s above one represent businesses servicing the local 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.

FIGURE 6-4LOCATION QUOTIENTS - TOWNSHIP OF ESSA

LOCATION QUOTIENT

91 Public administration 9.0 11 Agriculture, forestry, fishing and hunting 2.1 72 Accommodation and food services 1.2 56 Administrative and support, waste management and remediation services 1.1 22 Utilities 0.9 71 Arts, entertainment and recreation 0.8 23 Construction 0.8 44-45 Retail trade 0.7 53 Real estate and rental and leasing 0.6 61 Educational services 0.6 81 Other services (except public administration) 0.6 48-49 Transportation and warehousing 0.5 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 51 Information and cultural industries 0.1 52 Finance and insurance 0.1

SOURCE: urbanMetrics inc, based on data from Statistics Canada 2001 Census of Canada, Place of Work data, custom tab.

BROAD INDUSTRY SECTOR

FIGURE 6-5LOCATION QUOTIENTS - STUDY AREA

LOCATION QUOTIENT

11 Agriculture, forestry, fishing and hunting 2.22 91 Public administration 2.21 31-33 Manufacturing 1.66 23 Construction 1.11 72 Accommodation and food services 1.07 71 Arts, entertainment and recreation 1.05 56 Administrative and support, waste management and remediation services 1.00 48-49 Transportation and warehousing 0.97 44-45 Retail trade 0.86 81 Other services (except public administration) 0.80 41 W holesale trade 0.79 61 Educational services 0.71 53 Real estate and rental and leasing 0.69 22 Utilities 0.59 62 Health care and social assistance 0.59 54 Professional, scientific and technical services 0.42 55 Management of companies and enterprises 0.26 51 Information and cultural industries 0.23 52 Finance and insurance 0.20 21 Mining and oil and gas extraction 0.11

SOURCE: urbanmetrics inc., based on data from Statistics Canada 2001 Census of Canada, Place of Work data, custom tab.

BROAD INDUSTRY SECTOR

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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 for agriculture and forestry categories are the two sub sectors that show significant employment concentrations. In absolute employment terms, the agricultural 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 LQ’s within the manufacturing category. As expected, the concentration of transportation equipment manufacturing is dominant, as this industry employs 22% of the labour force within the Study Area, (manufacturing as a whole employs 28%)

Non-metallic mineral product manufacturing and chemical manufacturing both exhibit strong concentrations relative to the Province. Baxter Corporation is responsible for the majority of 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.

FIGURE 6-6LOCATION QUOTIENTS - STUDY AREA

LOCATION QUOTIENT

111-112 Farms 2.34 115 Support activities for agriculture and forestry 2.13 113 Forestry and logging 0.46

SOURCE: urbanmetrics inc., based on data from Statistics Canada 2001 Census of Canada, Place of Work data, custom tab.

11 Agriculture, forestry, fishing and hunting

FIGURE 6-7LOCATION QUOTIENTS - STUDY AREA

LOCATION QUOTIENT

336 Transportation equipment manufacturing 7.02 327 Non-metallic mineral product manufacturing 1.37 325 Chemical manufacturing 1.34 321 Wood product manufacturing 0.88 314 Textile product mills 0.60 339 Miscellaneous manufacturing 0.58 326 Plastics and rubber products manufacturing 0.58 332 Fabricated metal product manufacturing 0.57 316 Leather and allied product manufacturing 0.57 337 Furniture and related product manufacturing 0.39 324 Petroleum and coal products manufacturing 0.36 333 Machinery manufacturing 0.30 313 Textile mills 0.27 335 Electrical equipment, appliance and component manufacturing 0.26 323 Printing and related support activities 0.24 311 Food manufacturing 0.20 315 Clothing manufacturing 0.18 334 Computer and electronic product manufacturing 0.16 322 Paper manufacturing 0.06 331 Primary metal manufacturing 0.04

SOURCE: urbanmetrics inc., based on data from Statistics Canada 2001 Census of Canada, Place of Work data, custom tab.

31-33 Manufacturing

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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 categories, Barrie shows a wide array of industry specializations. A number of these concentrations relate to servicing the local economy, although sectors such as wholesale trade and construction represent the export base. While manufacturing activity does not exhibit a significant concentration, at the broad level there are limited concentrations within the select sub-sectors.

Figure 6-9 illustrates the manufacturing concentrations within the City of Barrie. Unlike the Study Area, Barrie has a number of industry specializations including textile product mills, plastics and rubber products manufacturing and machinery manufacturing.

FIGURE 6.8LOCATION QUOTIENTS - BARRIE

LOCATION QUOTIENT

44-45 Retail trade 1.6 72 Accommodation and food services 1.4 53 Real estate and rental and leasing 1.3 62 Health care and social assistance 1.3 23 Construction 1.3 81 Other services (except public administration) 1.2 41 W holesale trade 1.1 61 Educational services 1.0 56 Administrative and support, waste management and remediation services 1.0 51 Information and cultural industries 0.9 48-49 Transportation and warehousing 0.8 31-33 Manufacturing 0.8 54 Professional, scientific and technical services 0.7 52 Finance and insurance 0.7 22 Utilities 0.6 91 Public administration 0.6 71 Arts, entertainment and recreation 0.5 21 Mining and oil and gas extraction 0.2 55 Management of companies and enterprises 0.2 11 Agriculture, forestry, fishing and hunting 0.1

SOURCE: urbanmetrics inc., based on data from Statistics Canada 2001 Census of Canada, Place of W ork data, custom tab.

BROAD INDUSTRY SECTORS

FIGURE 6-9LOCATION QUOTIENTS - BARRIE

LOCATION QUOTIENT

314 Textile product mills 2.5 326 Plastics and rubber products manufacturing 2.1 332 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.

31-33 Manufacturing

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6.9 Township of Bradford West Gwillimbury Figure 6-10 illustrates the broad area location quotients for Bradford West Gwillimbury. Similar to Barrie, Bradford West Gwillimbury has a diverse concentration of industries including construction, manufacturing, and transportation and warehousing. Figure 6-11 examines the manufacturing sub categories in detail.

There are a number of categories that overlap with Barrie, which may indicate a regional competitive advantage. These include, plastics and rubber products manufacturing, fabricated metal product manufacturing and beverage and tobacco product manufacturing.

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.

FIGURE 6-10LOCATION QUOTIENTS - BRADFORD W EST GW ILLIM BURY

LOCATION QUOTIENT

11 Agriculture, forestry, fishing and hunting 4.8 23 Construction 1.5 81 Other services (except public adm inistration) 1.4 72 Accom m odation and food services 1.3 61 Educational services 1.2 31-33 Manufacturing 1.2 48-49 Transportation and warehousing 1.1 41 W holesale trade 0.9 54 Professional, scientific and technical services 0.8 44-45 Retail trade 0.8 62 Health care and social assistance 0.8 56 Adm inistrative and support, waste m anagem ent and rem ediation services 0.8 53 Real estate and rental and leasing 0.7 22 Utilities 0.5 71 Arts, entertainm ent and recreation 0.5 52 Finance and insurance 0.5 51 Inform ation and cultural industries 0.4 91 Public adm inistration 0.3 55 Managem ent of com panies and enterprises 0.0 21 Mining and oil and gas extraction 0.0

SOURCE: urbanMetrics inc, based on data from Statistics Canada 2001 Census of Canada, Place of W ork data, custom tab.

TW O DIGIT NAICS INDUSTRY SECTOR

FIGURE 6-11LOCATION QUOTIENTS - BRADFORD W EST GW ILLIMBURY

LOCATION 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

Work data, custom tab.

31-33 Manufacturing

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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.

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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:

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.

FIGURE 7-1GENERAL 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 RatesHousehold Income (2000) Tax RatesForecast 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.

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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)

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

FIGURE 7-2SITE SELECTION MODEL - GENERAL COMPARATORS

Study Area

Bradford West

Gwillimbury Barrie Newmarket Orillia Orangeville ClaringtonPopulation (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

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

Final Ranked Results

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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;

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• 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

employee wages and statutory benefits (e.g. CPP, UI). These are typically two of the key elements taken into consideration during a site selection exercise. For the purpose of this study, we have not included employer-sponsored benefits, such as group health insurance and employer pensions. Our experience suggests that these elements are driven primarily by firm policy and therefore will differ substantially from one company to another.

• For the purposes of comparing relative wage and benefit costs, the Production Operator position was selected. This staff grouping represents the largest component of a manufacturing operation and thus one of the most significant labour costs to an organization (wages based on data from Ontario Investment Services).

• Figure 7-4 summarizes the gross wage comparison in this labour category. The Study Area is competitive in terms of required compensation. As illustrated by the comparative index, compensation levels in the Study Area are in line with all of the comparative municipalities with the exception of Barrie and Orillia, which are approximately 10% higher.

FIGURE 7-3

Staffing Position Number of Staff

OfficeManaging Director 1Sales Manager 1Procurment 4Marketing 3Information Systems 3Human Resources 3Administration 5

ProductionPlant Manager 1Supervisor 3Production Operator 75Material Handlers 7Maintenance 7Quality Assurance 7Engineering 5

Total Staff 125Source: urbanMetrics Inc.

ASSUMED STAFFING MIX OF HYPOTHETICAL INDUSTRIAL OPERATION

FIGURE 7-4COMPENSATION COMPARISON FOR THE PRODUCTION OPERATOR POSITION

SOURCE: urbanMetrics, based on Ontario Investment Service Community Profiles and Census of Canada 2001

$0.00$2.00$4.00$6.00$8.00

$10.00$12.00$14.00$16.00$18.00$20.00

Barrie

Newmark

et

Orillia

Orangev

ille

Clarington

Bradford

Study Area

Gro

ss H

ourly

Wag

e (C

AD

$)

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7.4 Land Values In lieu of rental rates, the cost of serviced industrial land has been assessed. The price of industrial land is one of the most significant variables in the decision making process for new and relocating firms. Figure 7-5 shows the range in land prices between the various jurisdictions. Costs per acre were determined through conversations with realtors, economic development officers, and an examination of available listings on the Ontario Investment Services site.

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 and water, do not factor as prominently in the site selection process as land costs, but they are a factor when looking to eliminate a community from further consideration. For the purposes of our study we have focused specifically on electricity costs as these represent the largest share of an industrial firm’s utility costs.

Electricity rates are based on the average rate of energy usage (demand) and quantity of power used (consumption) over a one-month period. urbanMetrics utilized the average hydro rate per square foot, as

FIGURE 7-5LAND AREA COST: STUDY AREA vs. COMPARATIVE JURISDICTIONS

SOURCE: urbanMetrics, based on survey of real estate professionals in competitor jurisdictions.

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Barrie

Newmark

et

Orillia

Orangev

ille

Clarington

Bradford

Study Area

Land

Pric

e/A

cre

($)

FIGURE 7-6HYDRO RATE COMPARISON: STUDY AREA vs. COMPARATIVE JURISDICTIONS

SOURCE: urbanMetrics, based on BMA Management Consulting (2003) Municipal Study 2002

3.103.203.303.403.503.603.703.803.904.00

Barrie

Newmark

et

Orillia

Orangev

ille

Clarington

Bradford

Study Area

Hyd

ro R

ate/

Sq.F

t. ($

CA

D)

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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 tax rates for the comparative municipalities. These tax rates represent the total municipal taxes (including education) assessed on a standard occupied industrial building. Of the seven locations only Barrie and Newmarket have lower municipal tax rates than the Study Area

Although the Study Area is well positioned competitively, the fact that both Barrie and Newmarket have lower tax rates is significant 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 7-8SITE SELECTION MODEL - BUSINESS CASE SPECIFIC

Study Area

Bradford West

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

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

Final Ranked Results

FIGURE 7-7TAX RATE COMPARISON: STUDY AREA vs. COMPARATIVE JURISDICTIONS

SOURCE: urbanMetrics, based on BMA Management Consulting (2003) Municipal Study 2002

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Barrie

Newmark

et

Orillia

Orangev

ille

Clarington

Bradford

Study Area

Indu

stria

l Tax

Rat

e

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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.

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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.

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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.

Formatted: Font color: White,English (U.S.)

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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.

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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.

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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.

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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

MANUFACTURING AGRICULTURE TRANSPORTATION

AND WAREHOUSING WHOLESALE TRADE/

RETAIL TRADE

BROAD TARGET SECTOR

TARGETED MESSAGING

FOOD PROCESSING PLASTICS OTHER

MANUFACTURING

CHEMICAL

FABRICATED METAL PRODUCT

MACHINERY

SPECIFIC INDUSTRY SECTORS

SWOT ANALYSIS

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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)

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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:

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

• Cereal products • Biscuits and Crackers

• Snack Foods • Pet Foods

• Sauces and Condiments • Nutraceuticals

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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.

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OPPORTUNITIES

Relocation Activity: Due to increasing expansion costs, smaller firms that initially located in Toronto will likely consider alternative locations when looking to expand.

Marketing Message: A focused approach to marketing needs to occur. Emphasis should be on access to consumer markets, situational advantages for warehousing and distribution facilities, and a low cost business environment.

OMAF is aggressively targeting food processors in Ontario. A FAM tour with Ministry industry staff would be extremely useful in raising the local profile for this type of industry.

THREATS

Alienating Local Businesses: There is a perception that multinationals “get a better deal” (i.e. Honda) and therefore it is essential that the concerns of local firms be addressed in terms of retention and expansion.

Industry Consolidation: Between 1989 and 1996 the number of food processing establishments in Canada dropped by 10% largely due to industry consolidation.

Competition in Ontario: Several urban/rural communities across Ontario are competing for investment attraction in the food-processing sector.

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.

STRENGTHS

Location: Well located in the heart of Canada’s most populated region, with good transportation access to the GTA, the US and Pearson International Airport. Good access to suppliers and competitively priced raw material. Ontario/Toronto area is North America’s second largest and fastest growing food cluster.

Small to medium sized firms often locate closer to the market they serve. Proximity to the GTA will be an important consideration

Labour Force: Competitive wage levels, strong labour force, and population growth.

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.

WEAKNESSES

Labour: 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.

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.

FOOD PROCESSING

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OPPORTUNITIES

Growth Prospects: Average growth (real GDP) within the plastics industry is expected to be 6.4 percent between 2004-2007. This is a full 3 percentage points above the manufacturing industry as a whole.

Provincial Marketing: The Ontario government is 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.

THREATS

Competition: Barrie has successfully attracted a significant number of plastics related industries.

Labour Force: Industries may demand a higher skill level of its employee base than is immediately evident in the Study Area.

STRENGTHS

Industry Profile: Ontario is a leading player in the plastic industry, trailing only California and Ohio in terms of total plastics manufacturing output. The Plastics industry is labour intensive and not heavily unionzed.

Location: Well located in the heart of Canada’s most populated region, with good access to the GTA and the US. Market presence has been established in the Barrie Economic Region.

Automotive Link: Some plastics industries are involved in automotive component manufacturing (tier 2/3 suppliers). The location of Honda within the Study Area should be used as a marketing tool.

WEAKNESSES

Labour: 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.

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 between 6-8 months. A more customer service approach is required to ensure that these timelines are met.

Currently the Study Area does not have enough serviced lands to accommodate such a move.

PLASTICS

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OPPORTUNITIES

Growth Prospects: Solid economic growth in most of the world’s industrialized countries is helping to drive growth globally in the field of machinery manufacturing. There is 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.

THREATS

Labour Force: Manufacturing operations will look to jurisdictions that can provide skilled and semi-skilled labour.

STRENGTHS

Location: Well located in the heart of Canada’s most populated region, with good access to the GTA and the US.

Demographic Suitability: For the most part, these industries require semi-skilled is labour which fits the Study area profile.

WEAKNESSES

Labour: 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.

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

OTHER MANUFACTURING

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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.

MACHINERY MANUFACTURING

SOURCE: urbanMetrics based on data from Bank of Montreal, Small Business Research, A Sectoral View of Small Business

FIGURE 9-2: SMALL BUSINESS MANUFACTURING SECTOR GROWTH PROSPECTS (2003-2007) AND AVERAGE SMALL BUSINESS EMPLOYMENT

LOW GROWTH PROSPECTS

LOW EMPLOYMENT

HIGH EMPLOYMENT

HIGH GROWTH PROSPECTS

METAL FABRICATION

PLASTICS

CHEMICAL

FOOD PROCESSING

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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.

10 Business Attraction Plan

Site Selection FactorsRanking 2002 2003

1 State and local incentives 88.0 92.72 Labour costs 89.9 89.73 Availability of skilled labour 90.9 89.04 Highway accessibility 86.6 88.95 Occupancy costs or construction costs 82.4 86.36 Tax exemptions 88.2 86.27 Corporate tax rate 84.6 85.18 Energy availability and costs 80.9 80.89 Proximity to major markets 83.7 80.0

10 Availability of land 75.2 78.111 Availability of telecommunication services 76.1 77.912 Cost of land 74.0 77.313 Environmental regulations 76.7 72.914 Low union profile 69.4 71.615 Availability of broadband telecom services 66.7 67.416 Right to work state 58.0 60.817 Proximity to suppliers 61.8 58.518 Availability of long term financing 60.0 57.519 Raw materials availability 56.0 55.820 Availability of unskilled labour 55.1 55.821 Accessibility to major airport 54.0 53.122 Training programs 44.7 47.323 Proximity to technical university 33.4 34.024 Rail road service 22.6 27.925 Waterway or oceanport accessibility 19.3 18.5

Table 10-1 2003 Corporate Survey

SOURCE: urbanMetrics inc. and Area Development Magazine, December 2003

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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

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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.

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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.

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Nottawasaga Futures

Business Attraction Strategy

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

(cont'd)

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Appendix A: Comparative Analysis Background

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GENERAL COMPARATORS BACKGROUNDStudy 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 $73,964Change 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 AreaCountry 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 $141,667Land Value (US$/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 $3.8300Electricity Rates (US$/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

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2003 Industrial Land Tax Rates - Selected Ontario MunicipalitiesOCCUPIED/FULL SERVICE VACANT EXCESS

Area Municipal Rate Education Rate TOTAL Municipal Rate Education Rate TOTAL Municipal Rate Education Rate TOTALBarrie 1.653721 2.032655 3.686376 1.074919 1.321226 2.396145 1.074919 1.321226 2.396145Newmarket n/a 2.033891 3.202733 n/a 1.322029 2.081776 n/a n/a n/aOrillia 2.0459925 2.686408 4.732333 1.3229851 1.746165 3.076016 1.3229851 1.746165 3.076016OrangevilleIndustrial n/a n/a 4.800872 n/a n/a 3.36068 n/a n/a 3.36068Large Industrial n/a n/a 4.800972 n/a n/a n/a n/a n/a 3.36068ClaringtonIndustrial 0.00893724 0.02193986 4.586159 0.0056092 0.01426091 2.9810219 0.0058092 0.01426091 2.9810219Large Industrial 0.01110728 0.02726705 5.699718 n/a n/a n/a n/a n/a n/aBradford 4.316348 3.156082 7.47243 2.805639 2.051453 4.857092 2.805639 2.051453 4.857092

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Appendix B: Food Processing Growth Prospects

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APPENDIX BFOOD PROCESSING GROWTH PROSPECTS

DEMOGRAPHIC AND MARKET DRIVERS MARKET DEMANDS PRODUCTS POISED FOR GROWTHModest population growth Healthy Foods (less fat, less salt, low cholesterol) Cereal ProductsAging population (“greying”) Safe and environmentally friendly foods Lean MeatsIncreasing awareness of food safety concerns. High quality (including inputs) Fish and SeafoodIncreased levels of Asian immigration (decreased European) Sensory Appeal Low-fat dairy productsActivity-laden families with time constraints. Sophistication of tastes for international and ethnic foods Sauces and Condiments

Ethnic Cuisine Biscuits/Crackers“Ready-to-eat” Snack foodsFreshness (or perceived freshness) Packaged/Prepared Fruits, Vegetables and Salads

Pre-cooked meal solutionsBeverages (water, juice, wine, beer, distilled spirits)NutraceuticalsPet Foods

SOURCE: urbanMetrics inc adopted from Agriculture and Food Canada: Food Bureau (1998)

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Appendix C: Key Informants

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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

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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

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Slide 1

Nutrient ManagementNutrient Management

Biosolids Beneficial Use ProgramBiosolids Beneficial Use Program

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Slide 2 Municipal Wastewater TreatmentMunicipal Wastewater Treatment

•• 3 products of a municipal Wastewater 3 products of a municipal Wastewater Treatment Plant.Treatment Plant.

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Slide 3 LiquidLiquid

•• Clean water effluent discharged into Lake Clean water effluent discharged into Lake SimcoeSimcoe

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Slide 4 Solids (Solids (InorganicsInorganics))

•• Sent to LandfillSent to Landfill

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Slide 5 BiosolidsBiosolids (Organics)(Organics)

•• Further Treat pathogens and odor by extended Further Treat pathogens and odor by extended biological activity. biological activity.

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Slide 6 What is a Municipal Biosolid?What is a Municipal Biosolid?

•• Treated, quality controlled, byTreated, quality controlled, by--product of product of municipal wastewater treatment.municipal wastewater treatment.

•• Biosolids are organic in nature and contain Biosolids are organic in nature and contain fertilizer constituents including fertilizer constituents including nitrogen, nitrogen, phosphorous andphosphorous and beneficial metalsbeneficial metals..

•• Biologically stabilized through Biologically stabilized through aerobic aerobic digestiondigestion which destroys most of the bacteria which destroys most of the bacteria and reduces odors leaving an organic material and reduces odors leaving an organic material rich in plant nutrients.rich in plant nutrients.

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Slide 7 Town of Innisfil Digestion FacilityTown of Innisfil Digestion Facility

•• Converts organic matter to COConverts organic matter to CO22 & water.& water.•• Able to land apply due to the high nutrient Able to land apply due to the high nutrient

value of the Biosolids.value of the Biosolids.•• Taking advantage of the lack of industry Taking advantage of the lack of industry

chemicals coming in which Reduces chemicals coming in which Reduces Biosolids quality.Biosolids quality.

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Slide 8 Biosolids In StorageBiosolids In Storage

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Slide 9 Does it contain Pathogens?Does it contain Pathogens?

•• Aerobic Digestion significantly reduces the Aerobic Digestion significantly reduces the number of pathogenic organisms present.number of pathogenic organisms present.

•• Guidelines and regulations are designed to Guidelines and regulations are designed to ensure that they don’t risk human health ensure that they don’t risk human health impact the surrounding environment by:impact the surrounding environment by:

-- When and how Biosolids are applied When and how Biosolids are applied -- Types crops receivingTypes crops receiving-- Waiting periodsWaiting periods

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Slide 10 What about the metals?What about the metals?

Regulated limitations of 11 metals Regulated limitations of 11 metals Manganese, iron, zinc, copper, boron Manganese, iron, zinc, copper, boron

--Natural and necessary components of Natural and necessary components of healthy plant growth and are extracted healthy plant growth and are extracted from the soil by plant roots.from the soil by plant roots.

Selenium and CobaltSelenium and Cobalt--Important for animals to aid in the Important for animals to aid in the absorption of vitamins.absorption of vitamins.

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Slide 11 AlternativesAlternatives

•• Landfill (disposal)Landfill (disposal)•• Incineration (disposal)Incineration (disposal)•• PelletizationPelletization (beneficial re(beneficial re--use)use)•• Composting (beneficial reComposting (beneficial re--use)use)

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Slide 12 Ontario Regulation 267/03Ontario Regulation 267/03

•• Revised to put more responsibility on Revised to put more responsibility on generators (us) generators (us)

•• Forcing the requirement of approved Forcing the requirement of approved contingencies/strategiescontingencies/strategies

•• Wider public acceptanceWider public acceptance•• Health and Environmental RisksHealth and Environmental Risks

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Slide 13 Ontario Regulation 267/03Ontario Regulation 267/03

•• What Stays the SameWhat Stays the Same-- Certificates of ApprovalCertificates of Approval-- MOE site inspections, compliance & MOE site inspections, compliance & enforcement.enforcement.

-- Metal CriteriaMetal Criteria-- Separation DistancesSeparation Distances-- Waiting periodsWaiting periods

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Slide 14 Ontario Regulation 267/03Ontario Regulation 267/03

•• What Changes (Generators)What Changes (Generators)-- Nutrient Management Strategy (NMS)Nutrient Management Strategy (NMS)-- Contingency planContingency plan-- Sampling protocol & quality criteriaSampling protocol & quality criteria

-- E.coliE.coli limitslimits-- No more provisions for “marginal” No more provisions for “marginal”

wastewaste-- 240 days storage240 days storage-- Training requirements to complete NMSTraining requirements to complete NMS

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Slide 15 Ontario Regulation 267/03Ontario Regulation 267/03

•• What Changes (Land Application)What Changes (Land Application)-- 20m buffer from water courses20m buffer from water courses-- No high trajectory gunsNo high trajectory guns-- Slope requirements, soil permeabilitySlope requirements, soil permeability

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Slide 16 Manage Our RiskManage Our Risk

•• Best Management PracticesBest Management Practices•• Improved Biosolids qualityImproved Biosolids quality•• Improved Improved application methodsapplication methods•• Field management Field management

-- setbacks, permeability, structure, setbacks, permeability, structure, recordkeeping.recordkeeping.

•• Increase public acceptance with education Increase public acceptance with education and available resources.and available resources.

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Slide 17 Biosolid Injection MethodBiosolid Injection Method

•• Reduce the risk of runoffReduce the risk of runoff•• Less Less volitilevolitile loss of nitrogenloss of nitrogen•• Less Less odourodour•• Disruption of the macro pores to limit Disruption of the macro pores to limit

preferential flow.preferential flow.

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Slide 18 Drag Line ApplicationDrag Line Application

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Slide 19 Field Injection UnitField Injection Unit

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Slide 20 GoalsGoals

•• Gain confidence from the publicGain confidence from the public•• Communication and relationships with Communication and relationships with

farming communityfarming community•• Best management practices.Best management practices.

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Slide 21

Questions?Questions?

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…/

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.

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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)