Hamilton's economy?

[Pearlstreet]

All the rental focused properties cater to this as much as I don't want to say it as a landlord... Two of a few apartments I rent are to social assistance system riding donkeys.

[SteelTown]

Biggest building permit growth in the province

http://yourhamiltonbiz.com/biggest-b...sue=2013-07-08

A quarter of a billion dollars in building permits is keeping Hamilton leaps and bounds ahead of the rest of the province.

A report from the Ontario Construction Secretariat (OCS) shows Hamilton issued $267,367,000 worth of building permits in the industrial, commercial and institutional sectors in the first quarter of 2013.

That’s a 46 per cent increase over 2012, and the most growth of anywhere in the province, said Neil Everson, director of economic development during a report made to the city’s General Issues Committee (GIC) on Monday.

It’s an effect of the City having “three or four really good years,” Everson told YourHamiltonBiz after his presentation.

“I think our competitive position compared to the GTA,” he said. “I’m talking about things like development charges, price of land.”

[thistleclub]

From the OCS report:

“The [industrial] increase was concentrated in Hamilton, which recorded its second straight quarter of above-40% growth, thanks to construction of the Maple Leaf Foods processing plant…. There was also a large [commercial] increase in Hamilton – owing to construction of a new office for Union Gas Limited.”

The $14 million ArcelorMittal Dofasco Steel Works Maintenance Program ranks as the city’s largest construction start for Q1 2013.

[thistleclub]

From Meredith Macleod's piece in the June 9, 2013 Spectator:


[Neil] Everson's report to councillors also included a proposal to change the way the city measures economic development progress.

The measures go back to 2008 when council approved a $1.5 million increase to the economic development budget. In exchange for more money and staff, the department was charged with annual reporting based on 2007 benchmarks.

But some of those measures are not effective, says Everson. Some are based on census data, which has a five-year lag and others are not truly reflective of growth, he says. As well, some goals have already been achieved and don't need to be revisited each year.

The committee approved a series of new performance measures, including total employed, total unemployed, unemployment rate, Ontario Works caseloads, airport and port figures, diversity index, housing prices, crime index, annual agriculture economic impact, taxable assessment growth, building permits, vacancy rates and small business startups.

Everson said the changes, which must be approved by council on Friday, bring Hamilton's economic development tracking more in step with national and international practices.


Would also be valuable to have data on total full-time employment, total part-time employment, median full-time wages, median part-time wages, and the economic sectors in which the growth is occurring.

I hope that the talk about the census being out of date isn't just an opening for the city to game the numbers by contracting performance measure surveys out to pliable consultants. The City's data quality standards (along with transparency) are already lax enough without the benefit of improvised workarounds.

[thistleclub]

Hamilton Ontario Works recipients staying in system longer
(CBC Hamilton, Samantha Craggs, July 12 2013)

New figures show that the number of Hamilton residents on social assistance is slowly returning to pre-recession levels. But those receiving it are having a harder time getting off.

The average time spent on Ontario Works before the 2009 recession was 18 months. So far in 2013, it's more than two years- 27.5 months.

The city is spending $5,735,800 over the next two years to try to bring those numbers down. To do that it will keep 30 workers hired to work more intensely with local OW recipients, said Joe-Anne Priel, general manager of community services....

In 2009, the city hired 30 extra staff to deal with the increase, paying for it using an OW reserve. The goal of reducing the caseload has been working. As of May, there are 12,950 Hamiltonians on OW. That number is expected to be about 10,000 by 2016....

Nearly half of OW recipients have been on social assistance for less than one year. Twenty-two per cent have been on it for one to two years, and the remaining — nearly one third — have been on OW longer than two years.


According to another CBC Hamilton story (about "Hamilton's increasingly bright employment picture"), the city's annual OW caseload stood at 10,035 in 2008. At 18 months per OW case on average, that was a pool of 180,630 jobless months. As of May 2013, with 12,950 OW cases in the city at 27.5 months per case on average, we now have a pool of 356,125 jobless months.

[bigguy1231]

Those numbers are small in comparison to the numbers we had in this city back in the late 80's and early 90's when I worked for social services. Back then there was close to 30,000 recipients in this city collecting welfare payments. That's 30,000 case files not individuals. The number included families so there were close to 50,000 depending on payments.

[thistleclub]

An OW "case" may still represent an individual or a family. But the '80s were brutal, no question. The lower city is arguably still recovering.

[SteelTown]

Hamilton bucks national trend with strong quarter in construction investment
Investment in commercial building construction increased by 8 per cent in Hamilton in the second quarter of this year.

http://www.cbc.ca/hamilton/news/stor...g-permits.html

Investment in Hamilton's construction sector is up, bucking a national trend.

Numbers released by Statistics Canada shows that across the country investment in non-residential building construction fell 3.4 per cent to $12.5 billion in the second quarter of the year.

This follows five straight quarters of growth.

Statistics are based on the Building Permits Survey of Canadian municipalities.

StatsCan reports that a strike by construction workers in Quebec was the primary cause of the drop. Investment fell in 23 of 34 census metropolis areas, with the largest declines in Montreal, Edmonton and Toronto, but investment increased in Hamilton and Calgary.

In Hamilton, non-residential investment is up 8 per cent in the second quarter from the first. Since the beginning of 2012, investment in Hamilton's non-residential construction sector has increased six quarters in a row.

Hamilton's director of economic development, Neil Everson, attributes the city's strong showing to the diversification of the local economy and support from city council for economic growth initiatives.

“Over the last few years, building investment has grown significantly. Since 2008, non-residential construction investment has doubled. And in 2012, we set a record with $1.5 billion in building permits.”

Everson cautioned that investment and growth in Hamilton's economy can always be tempered by “external factors” like the value of the Cdn. dollar and demand from U.S. markets, but he sees no reason on the horizon why “the business community will slow its expansion and investment” in Hamilton.

[SteelTown]

Hamilton again tops in corporate construction
Our economic diversification index is the best in Canada

http://www.thespec.com/news-story/40...-construction/

Hamilton has topped the country in corporate construction projects for the second year in a row.

The city logged 35 corporate projects between April 2012 and March 2013, which edged out Quebec City with 34 and handily outdistanced Toronto and Edmonton, which tied for third at 22.

The rankings were produced by Site Selection magazine in its Canada's Best to Invest report. The Atlanta, Ga. publication is aimed at about 44,000 corporate site selectors.
Hamilton also topped the rankings in 2011-2012 and was in second place behind Toronto in 2010-2011.

"I think this shows the whole community is pulling in the same direction," said Neil Everson, the city's director of economic development.

"They're all over the city, which is great, and they are across different industries, which is the diversity we've been pushing for the last 15 to 20 years."

A rough tally of investment comes in at more than $250 million, but Everson cautions that not every company attached a dollar figure to its project.

According to the Conference Board of Canada, Hamilton's economic diversification index is 0.94 out of a possible 1, which is the best in Canada.

The city's submission to Site Selection says Hamilton gained approximately 1,070 jobs over the year.

The number of projects grew significantly across most cities on the list over the June 2011-May 2012 period last studied. Hamilton had 20 projects during that time.

The city's Hamilton Calling program, which interviews and surveys city employers, found close to 65 per cent of 345 visited plan to expand in terms of job, facilities or investment in the next three years. Close to 95 per cent saw an increase in sales over the previous year and almost 70 per cent plan to introduce new products or services in the next two years.

To be eligible for inclusion in the Site Selection tally, projects must be at least a $1-million investment, result in 50 new jobs or be more than 20,000 square feet in area. Data is collected through building permits and from company representatives. It is independently verified by Site Selection staff.

Everson says the data will be vital to the city's marketing push as a corporate destination aimed at the GTA.

"So when people say, 'Why should I look at Hamilton?' There's a reason: because everyone else is."

The city's economic development department was also named among the 10 best in Canada. Rankings aren't assigned to that list.


The rankings

City Project count

1. Hamilton 35

2. Quebec City 34

Tied 3. Toronto 22

T3. Edmonton 22

5. Montreal 19

6. Calgary 17

7. Wood Buffalo, Alta. 14

T8. Winnipeg 12

T8. Vancouver 12

10. London 11

The projects

Ace-Plastix: new, plastics recycling

Adventec Manufacturing: expansion

Agrico Canada Inc.: expansion

Anderson Water Systems: expansion

Albanese Branding: expansion

Baffin Inc.: expansion

Burlington Steel: expansion

Calea & Fresenius Kabi Canada: new compounding facility

Canada Coaster: expansion

Canon Canada: relocation, downtown office

Co-operative Cross Pier Pipeline Rack: new, bulk liquid cargo at port

Coreslab Structures: new, manufacturing of precast components

Costco Ancaster: new/expansion

Ecodyne Limited: new water treatment manufacturing

Empire Steel America: new metals distribution

Fibracast: new water treatment manufacturing

Flynn Canada: expansion

Gateway Ice Centre: new hockey arena

Golden Horseshoe Aviation: new, pilot training

Hilton Homewood Suites: new

Intermodal cargo facility: new at John C. Munro Hamilton International Airport

Kubes Steel: expansion

McMaster University health campus: new

McMaster Automotive Resource Centre: new/retrofit space

National Asset Recovery Specialists: new/retrofit recycling plant

Navistar: new, parts distribution centre

North American Tillage Tools: expansion

Radwell International: new electrical components repair facility

Roux Commercial Kitchen: new

Salerno Dairy Products: expansion

Staalduinen Floral: new warehouse/office

Sylvite AgriServices: expansion

Union Gas: new office/training centre

Yellow Line: new liquid asphalt terminal/plant

[ScreamingViking]

Originally Posted by SteelTown

According to the Conference Board of Canada, Hamilton's economic diversification index is 0.94 out of a possible 1, which is the best in Canada.

I remember noticing this a few years ago for a report I had worked on, pulling together various economic stats for Canadian cities. I was very surprised that Hamilton's economy was among the most diverse.

At the time I wondered if it reflected a loss of activity in some key industrial sectors, and perhaps it did. But given the good news of the past few years (a good chunk of it self-promoted) the consistency of diversity bodes well.

[SteelTown]

City building boom cools, but lots in the works downtown
http://www.thespec.com/news-story/41...orks-downtown/

Building permits issued by the city in August totalled $66 million — a $9 million decline from the month before and one of the lowest months of the year.

The city's economic development director, Neil Everson, said it's a reflection of a bit of a slowdown in development. He said when comparing the figures to past years, it's important to keep perspective.

Hamilton experienced a building boom from 2010 to 2012 when it reached between $800 million and more than $1 billion in permits.

"That's a tough act to follow," he said.

So far this year, about 4,300 permits have been issued worth $669,791. Everson said he expects that figure will come close to hitting $800,000 again this year, helped by the new football stadium permits this fall.

"We do expect to make a number of announcements in the next few months, either late this year or early next — nothing huge, but in that 30,000 to 40,000 square foot range," he said. "A lot will be happening in the downtown."

However, most of that development will be residential and some commercial, he said. The industrial sector year to date is down by 16 per cent, while the commercial sector is up 17 per cent, and institutional (McMaster, Mohawk and schools, for example) has increased by 7 per cent.

Although the residential sector has dropped slightly by 3 per cent, Everson said he expects that will grow.

In August, the residential growth was the strongest sector, accounting for 68 per cent of the month's total permits, valued at $45 million.

"A lot of the growth in the entire GTA is residential. If you see cranes in Toronto, a lot of those are working on condo towers," he said.

In August, the city's commercial activity accounted for 8.4 per cent, industrial activity was at 4 per cent, and institutional activity was at 15 per cent of total permits.

"I would say Hamilton is like the rest of Ontario in that there is a bit of slowing of development. It's not bad, but it is a bit slower," said Everson.

"Last year at this time our building department couldn't keep up, the pace was that crazy."

[SteelTown]

Modest economic growth expected for Hamilton this year
By Steve Arnold
http://www.thespec.com/news-story/41...ton-this-year/

A new Conference Board of Canada study calls for modest economic growth in Hamilton this year, with a better outlook next year.

The Board's annual Metropolitan Outlook report calls for local GDP growth of a modest 1.3 per cent this year, lead by growth in the construction sector. Gains there, however, will be partly offset by continued manufacturing decline.

Weak employment growth will also limit gains in wholesale and retail trade output for 2013. More widespread gains across all sectors should lead to a 2.5 per cent increase in total GDP in 2014.

The growth forecast for 2013 is down slightly from that recorded in 2012 when the economy continued to be held back by weakness in the manufacturing sector, as well as declines in personal services and in public administration and defence.

While both the personal services sector and the public administration and defence sector are expected to post modest growth this year, manufacturing output is forecast to drop by more than 2 per cent.

Strength in 2013 will continue to come from the construction sector and the finance, insurance, and real estate sector, both of which got a boost from the strength in housing starts at the beginning of this year. Hamilton's economy is expected to expand by a stronger 2.5 per cent in 2014.

Hamilton's manufacturing sector expanded by nearly 10 per cent from 2010 to 2011, following a decade of declines up to and including the 2009 recession. Post-recession, the sector enjoyed stronger demand in its traditional steel industry, but also benefitted from the addition or expansion of several new businesses, including the opening of Canada Bread's $100-million bakery in 2011.

But lower demand, both at home and south of the border, reduced manufacturing output in the second half of 2012 and through the first quarter of this year. As a result, manufacturing output increased just 0.5 per cent, in total, in 2012, and is expected to contract by 2.2 per cent this year. Over the coming months, a stronger U.S. economy should help to reverse this trend, as will the opening of Maple Leaf's new $395-million processing plant in 2014, which will employ 670 people to make sliced deli meat and hot dogs. Manufacturing output is forecast to increase by 3.9 per cent next year and 2.3 per cent in 2015.

[markbarbera]

More signs of the turnaround in the North American Auto Industry, as an Ancaster-based international auto parts maker is reaping the rewards.

After just eight months of construction Stackpole International is celebrating a major expansion at one of its local facilities and with it, comes a boost in job creation in the area.

Stackpole International is celebrating an 85,000 square foot expansion of its manufacturing floor in Ancaster bringing it to 150,000 square feet in total.

It cost around $8 million and the company says it will create more jobs in the Hamilton-area.

“We have 300 in this facility, we have 700 in the park close to 500 in next 6 or 7 years,” says Vice President Robert Mooy.

The company manufacturers oil pumps for engines and transmissions.

Its employees in Ancaster say with the expanded facility comes hope for an even brighter future.

“I think it’s really exciting, a lot of new business coming here, the fact that we’re doubling in size now can’t be bad.”

The auto industry in Ontario is booming; Ford recently invested $700 million in its Oakville plant and Stackpole says it expects to see some benefits.

“The success of ford in Oakville will have a filter down effect on our operations.”

http://www.chch.com/major-expansion-...international/

[thistleclub]

City's employment numbers take downward turn
(Hamilton Spectator, Steve Arnold, Oct 11 2013)

Hamilton has lost 14,000 jobs over the past year, according to the most recent figures from Statistics Canada.

The latest issue of the agency's Labour Force Survey shows the area shed 3,000 full-time positions and 11,000 part-time jobs since September of last year.

The loss kicked the Hamilton-Burlington-Grimsby area's unemployment rate to 7.5 per cent, up half a percentage point from the same month last year. The national unemployment rate stands at 6.9 per cent.

Economist Erin Weir of the United Steelworkers said the StatsCan numbers paint a grim picture for Hamilton.

"The numbers for Hamilton strike me as being atrociously bad," he said. "Those numbers are devastating at a time when the working age population is growing."

Specifically, the federal numbers, a three-month moving average not seasonally adjusted, show that between September 2012 and last month the region's population rose by 6,200 while its labour force shrank by 8,800.

Total employment fell to 366,000 from 380,200 while the number not in the labour force rose 19,400 and the number officially unemployed rose by 1,000.

(The most common measure of the unemployment rate only counts people actively looking for work as unemployed. People who've given up the search are not counted.)

Weir speculated part of the loss in Hamilton may be continued job losses in the manufacturing sector. Nationally, that segment shed 26,000 jobs in the most recent report.

Neil Everson, director of the city's economic development department, found the federal numbers "hard to believe" because the area hasn't experienced any large layoffs or plant closings recently.

Instead, it has seen continued development of the Ancaster industrial park and the first hiring for the Maple Leaf Foods plant in Glanbrook.

"We're still seeing good solid activity out there," he said. "The signs say we're doing quite well."

[mattgrande]

The Spec is reporting that Maple Leaf is considering selling the new Canada Bread plant.

http://www.thespec.com/news-story/41...amilton-plant/

[ScreamingViking]

Originally Posted by mattgrande

The Spec is reporting that Maple Leaf is considering selling the new Canada Bread plant.

http://www.thespec.com/news-story/41...amilton-plant/

I was hoping ML would get into the mustard business too, and build a plant there to give them the sandwich trifecta.

If they do decide to sell-off Canada Bread, the fact that plant is new should help make the division more marketable.

[SteelTown]

• Video Link

[beanmedic]

Originally Posted by SteelTown

• Video Link

Whoa.

[SteelTown]

Growth spurt will be a challenge for city to manage, Murray says

http://www.thespec.com/news-story/41...e-murray-says/

Hamilton needs to get everything right to prepare for heavy growth coming its way, city manager Chris Murray told a business breakfast crowd Tuesday.

The province projects the municipalities west of Toronto will outstrip the growth in the megacity by four to one in population and three to one in jobs beginning in 2031.

Projections peg Hamilton's population at 740,000 by 2041, he said, a 42 per cent increase over 2011's census population of 520,000.

"A tremendous amount of growth is coming. We have to get a lot of things right if we are going to maintain our quality of life and take advantage of that growth."

Murray says the city has approved urban and rural official plans that will guide big-picture land use planning, just recently ratified a cultural plan that will build arts and culture into city development, and continue with its healthy neighbourhood program aimed at improving the lives of residents in the city's most challenged areas.

He also talked at length about the city's open-for-business efforts to streamline red tape, and said staff is in place to help applicants negotiate the system.

"I don't wake up in the morning thinking of myself as a bureaucrat," Murray told about 150 people gathered for the city manager's breakfast hosted by the Hamilton Chamber of Commerce.

"I don't morph into a bureaucrat thinking, 'My god, how can I slow things down today? Where's the rule book so I can throw it at people?"

Murray says Hamilton should celebrate the influx of those wanting to live and invest in the city.

"In the past, people were apt to criticize Hamilton and perhaps it was well founded. But the momentum is shifting."

Murray praised grassroots activists who are pushing for change, including the Yes We Cannon, tactical urbanism and open data movements.

Murray said building permit numbers are strong again this year, although they are unlikely to eclipse the record $1.5 billion in value in 2012.

"Hamilton is the place to invest and that's not just us talking about it," Murray said, highlighting recent Toronto media coverage and acknowledgement from a series of organizations about the strength of the city's economy.

"We have more cranes in Hamilton than we've ever seen in the past. There is hundreds of thousands of square feet being developed as we talk this morning."

Murray said the city's economic situation is sound, citing:

•the fastest growing economy in Ontario at 2.5 per cent;

•a solid credit rating;

•an unemployment rate second best in the province for September;

•an all-time low for its industrial vacancy rate;

• an economy that is the most diversified in the nation, according to the Conference Board of Canada

He said the city has managed to keep property tax increases at about 1.5 per cent over the last five years and has removed $60 million to $70 million from the budgets of city departments. But he said that pace will be difficult to continue.

"All I can tell you is we will do our level best to keep taxes low but that low-hanging fruit has been picked and turned into jam already."

But the city faces an aging infrastructure and the prospect of big debt to tackle it. Murray says Hamilton should be spending $200 million more a year to properly rehabilitate and expand affordable housing and road, transit, sewer and water networks.

Adding to the challenge is that the city's tax base is 77 per cent residential and 23 per cent industrial and commercial, which puts a heavy burden on homeowners.

And compounding any possible solution is that the seniors population will double in 10 years, meaning 60 cents of every tax dollar will be spent on health care, up from 50 cents now. That will leave even less money for everything else.

"It is critical we keep our eyes on this. Ten years is nothing in terms of time."

[thistleclub]

This came out back in April/May, but I thought it noteworthy because of the "City of Direct Investment" motif.

Canadian cities fare well in FDI American Cities of the Future 2013-2014 rankings:


Overall American Cities of the Future
Toronto (#3); Montreal (#4); Vancouver (#5)

Overall North American Cities of the Future
Toronto (#2); Montreal (#3); Vancouver (#4); Calgary (#10)


Major American Cities of the Future (Overall)
Toronto (#3); Montreal (#4)

Major American Cities of the Future (Economic Potential)
Toronto (#4)

Major American Cities of the Future (Human Resources)
Toronto (#10)

Major American Cities of the Future (Infrastructure)
Toronto (#6); Montreal (#10)

Major American Cities of the Future (Business Friendliness)
Toronto (#2); Montreal (#3)

Major American Cities of the Future (FDI Strategy)
Montreal (#1); Toronto (#2)


Large American Cities of the Future (Overall)
Vancouver (#1); Calgary (#2); Ottawa (#3); Edmonton (#4)

Large American Cities of the Future (Economic Potential)
Vancouver (#2); Calgary (#3); Ottawa (#7); Edmonton (#9)

Large American Cities of the Future (Infrastructure)
Vancouver (#3); Ottawa (#9); Calgary (#10)

Large American Cities of the Future (Business Friendliness)
Vancouver (#1); Calgary (#2); Edmonton (#3); Ottawa (#4)

Large American Cities of the Future (FDI Strategy)
Ottawa (#1); Edmonton (#2); Calgary (#4)


Mid-Sized American Cities of the Future (Overall)
Mississauga (#1); London (#2); Hamilton (#3)

Mid-Sized American Cities of the Future (Economic Potential)
Mississauga (#2); London (#7)

Mid-Sized American Cities of the Future (Infrastructure)
Mississauga (#4); Surrey (#7); Brampton (#8); Hamilton (#9)

Mid-Sized American Cities of the Future (Business Friendliness)
Mississauga (#1); Brampton (#2); Laval (#3); Quebec City (4); London (#5); Surrey (#6); Winnipeg (#7); Hamilton (#8)

Mid-Sized American Cities of the Future (FDI Strategy)
Hamilton (#1); Quebec City (#2); Mississauga (#3); London (#5); Surrey (#6)


Small American Cities of the Future (Overall)
Victoria (#1); Richmond (#3); Richmond Hill (#5); St. John’s (#9); Sherbrooke (#10)

Small American Cities of the Future (Economic Potential)
Guelph (#6)

Small American Cities of the Future (Cost Effectiveness)
Abbotsford (#10)

Small American Cities of the Future (Business Friendliness)
Victoria (#1); Cambridge (#2); Markham (#3); Richmond Hill (#4); Burlington (#5) ; Oakville (#6); Richmond (#8); Sherbrooke (#9); Guelph (#10)

Small American Cities of the Future (FDI Strategy)
Windsor (#2); Richmond Hill (#3); Sherbrooke (#4); Victoria (#5); Richmond (#6); St. Catharines (#7)


Micro American Cities of the Future (Overall)
Fredericton (#1); Pickering (#4); Kamloops (#5); Waterloo (#6)

Micro American Cities of the Future (Economic Potential)
Waterloo (#2); Fredericton (#6)

Micro American Cities of the Future (Cost Effectiveness)
Saint-Jean-Sur-Richelieu (#7); Nanaimo (#8); Langley (#9); Kamloops (#10)

Micro American Cities of the Future (Infrastructure)
North Vancouver (#2); Delta (#5); Pickering (#6); Langley (#7); Repentigny (#8); Saint-Jean-Sur-Richelieu (#9)

Micro American Cities of the Future (Business Friendliness)
Waterloo (#1); Delta (#2); North Vancouver (#3); Fredericton (#4); Pickering (#5)