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HomeMy WebLinkAboutOS 01-13 Report to Executive Committee - PICKERING ReportNumber: os o1-13 Date: March 4, 2013 From: Thomas Melymuk Director, City Development ~ Subject: Marketing & Business Development Program - 2012 Year End Summary - File: D-1400-005 Recommendation: 1. That Council receive for information, the 2012 Marketing & Business Development Year End report. Executive Summary: The City of Pickering's Economic Development Office ' delivers a strategic Marketing & Business Development work program with the goal of retaining and attracting desired investment, jobs, and assessment growth in our community. The work program recognizes current trends in business development and relies on both internal and external expertise in the economic development sector. Through implementation of this program, the Economic Development Office strives to meet the needs of our existing business base, while looking to attract new business investment that is desirable to, and supportive of, the sustained economic health of our community. In 2012, the City of Pickering celebrated 34 new business openings including 4 new developments, being the Pickering Learning Site, V!VA Retirement Community, the Trench Ltd. (Siemens) industrial plant and a Long & McQuade retail store. Search Engine People also opened up an office in our downtown and is now reported to be the fastest growing company in Canada in the Information & Communications Technology sector. Over 900 new jobs were created in 2012, representing a range of sectors including industrial manufacturing, information and communication technology, commerciat office, retail and hospitality. Marketing of our businesses and community was expanded to include a new employee guide - Your City. Right Now. Content on web pages in the Business section were enhanced with 2 promotional videos and 3 new Corporate Testimonials, while the real estate community was engaged to actively participate in the updating of our on-line Available Land & Space inventory tool. A total of 6.75 ha of employment land was absorbed during 2012. Until employment lands in the Seaton Community are available for development, the City's ability to offer up shovel ready lands for new industrial investment is now constrained by the limited supply of desirable parcels in our Brock Employment Park. i Report OS 01-13 March 4, 2013 Subject: Marketing & Business Development Program - 2012 Year End Summary Page 2 Financial Implications: Not applicable. Discussion: The City's Economic Development Office develops and delivers a work program designed to address three key areas of Economic Development including - Business Retention & Expansion, Business Attraction and Investment Readiness. The goal of the program is to assist in the retention and attraction of desirable investment that results in jobs and assessment growth to our community. 1. Corporate Calling Program identifies a strong diversity of business sectors in Pickering. , A key component of the 2012 Business Retention & Expansion program is Corporate Calling. Foremost, this program provides a platForm for our businesses to share their successes and identify challenges to their business growth. Further, the program provi-des staff an opportunity to inform our companies of current City activities, connect them to business programs and support services, and engage our corporate leaders in the promotion of our City as a preferred . place to do business. The 2012 Corporate Calling Program reviewed the diversity of our business community, conducting interviews with companies in the following sectors: • Businesses with Pickering headquarters • Manufacturing • EN3 (Energy, Environmental and Engineering) • ICT (Information and Communication Technology) • Logistics ~ During the course of the program, staff identified multiple instances of Pickering businesses that are committed to supporting the Pickering supply chain by - buying goods and services locally. In 2012, we were also informed by 2 companies that Pickering offers a preferred business environment that is safe, attractive and efficient for both employees and clients. As a result, one company chose to remain and expand in Pickering, while another chose to move their operations from Scarborough, establishing a new, expanded base of operations in Pickering. 2. City of Pickering staff delivers effective business support services. It is not sufficient to identify the challenges to business development facing our companies. Practical, day to day business support is a prime function of the Economic Development Office at the City of Pickering and establishing a working relationship with our business owners is key to providing this support. Understanding of the products and services produced and distributed by our businesses contributes to Economic Development's staff ability to identify opportunities for growth in our business community. Report OS 01-13 March 4, 2013 Subject: Marketing & Business Development Program - 2012 Year End Summary Page 3 Throughout the course of the 2012 program, this office facilitated introductions and meetings between Pickering business owners and a wide range of business support service providers, such as, The Ministry of Economic Development and Innovation, The National Research Council, Durham College, Spark Centre for Innovation, Durham Region Unemployed Help Centre, the Business Development Bank, and more. Further, we arranged for peer to peer meetings between operations staff at Pickering based manufacturing companies where process information was shared and opportunities for local supply chain purchases were identified. 3. Economic Development partnerships support City business growth. Despite limited staff and resources, the Economic Development Office succeeds in providing professional services to our business community. This is often achieved through the various partnerships this Office participates in, with a variety of Economic Development experts, organizations and services. a) Ajax-Pickering Board of Trade (APBOT) We continue to actively support the efforts of the Ajax-Pickering Board of Trade (APBOT) through activities and services, such as: • Presence on the Board of Directors and at the Government Relations Committee. • Attendance at Board of Trade meetings and events to establish and maintain positive working relationships with our local business leaders. • Sponsorship and delivery of The Next Generation of Manufacturing Seminar Series. • Recognition of Pickering business leaders through the annual APBOT Business Excellence Awards. • Presentations to the APBOT membership, as needed. In 2012, this office delivered a presentation promoting the roles and responsibilities of Municipal Economic Development offices. b) Durham Economic Development Partnership (DEDP) Ongoing participation and collaboration with the Durham Economic Development Partnership (DEDP) work program gives Pickering the opportunity to respond to investment enquiries received by the Greater Toronto Marketing Alliance, the Ministry of Economic Development and Innovation and the Region of Durham Economic Development Office. The 2012 work program included an event hosting key US site selectors during which a reception was held at The Lake House in Pickering and was followed by a tour of DurFiam Region, featuring a flyover of the Seaton Employment Lands. Report OS 01-13 March 4, 2013 Subject: Marketing & Business Development Program - 2012 Year End Summary Page 4 Pickering staff also provided practical training and advice to support the delivery of the Region of Durham "Business Count" survey program. Funding provided through the DEDP also afforded the opportunity for Pickering staff to attend the Canadian Nuclear Association conference where we promoted the City of Pickering as a premier nuclear host community. We were also able to represent the City of Pickering at a national commercial realtor conference and an international realtor and site selector conference. c) Ministry of Economic Development and Innovation (MEDI) This office works with staff at MEDI to deliver support to our business community specifically related to understanding and accessing provincial funding programs and business expansion best practices. In 2012, funding opportunities were identified for Pickering businesses in the areas of software development and implementation training, as well as R&D tax credits and process improvements in manufacturing. d) Greater Toronto Countryside Mayors Alliance (GTCMA) The GTCMA is made up of fourteen municipalities in the Greater Toronto Area. The mandate of the Alliance is to monitor and discuss rural economic issues, federal and provincial programs and legislation affecting countryside communities; undertake research and analysis on matters of interest affecting the membership, and advocate for provincial support and/or changes to Provincial Policies that affect Alliance membership. In 2012, the GTCMA completed Phase 2 of the Rural Economic Development study and will be - presenting the findings and recommendations of the strategy to various provincial ministries for comment and action in the Spring of 2013. 4. Pickering celebrates business expansions in 2012. A number of Pickering businesses expanded operations in 2012, including: • Purdue Pharma, 630 Granite Court, completed the final phase of their ' expansion project occupying an 18,000 square-feet, 2 storey office space. They also received OPA approval and completed the installation of a 250KW solar array on their warehouse rooftop under the Provincial FIT Program. • Pharmaceutical Advertising Advisory Board (PAAB) moved within Pickering . to expanded offices at 1305 Pickering Parkway. • RBRO Solutions moved within Pickering to expanded offices at 1101 Kingston Road. RBRO Solutions provides document management solutions to a global clientele in the legal, architectural, engineering and construction industries. • Long & McQuade established a retail presence in Pickering opening a store at 1887 Kingston Road. Long & McQuade now operate their head office, 2 warehouses and a retail storefront in the City of Pickering. Report OS 01-13 March 4, 2013 Subject: Marketing & Business Development Program - 2012 Year End Summary ' Page 5 • Miratec Inc. at 1895 Clements Road expanded their facilities by 50%, in preparation fo.r expected growth in their industry sector in 2013. Miratec designs and manufactures electronic cabling systems for manufacturing and alternative energy products. 5. Marketing a key component to Business Retention and Investment Attraction. The Economic Development Office currently produces 7 online and print publications, the contents of which include statistics, labour force data, demographics, community and business sector promotions and site selection data. These publications are updated annually and are made available in print and online. We also produce an electronic newsletter to promote business success stories and business support services offered by the City and upper tier Economic Development offices. In 2012, we expanded our publications to include a resource guide for new employees entitled Your City. Right Now. Created for delivery to employees of companies new to Pickering, the guide provides information on recreational activities in Pickering, as well as practical information such as locations of financial institutions, medical clinics, ServiceOntario offices, train and bus services and more. To date, copies have been delivered to Search Engine People and Trench Ltd. 6. Investors review municipal websites before they consider investment. Providing accurate information through online tools is critical to supporting the Business Retention & Expansion and Investment Attraction programs. Research says that new investors look to municipal websites for information on lifestyle, demographics, infrastructure and incentives before making direct contact with municipal staff or local real estate service providers. The City maintains an online inventory of available land and space, presented through the eSpace Listings website tool. In order to help maintain the accuracy of the inventory, in 2012 a protocol was developed whereby realtors provide this office with monthly updates of available land and space listings. This has served to enhance the number and accuracy of listings on the inventory site. Three new Corporate Testimonials were developed and posted to the Advantage Pickering section of the website. Ellis Packaging, Long & McQuade and Purdue Pharma are long standing members of the Pickering community and are considered Ambassadors of our business community. Economic Development staff also developed 2 new videos for the website, showcasing Downtown Pickering and the Nautical Village. Report OS 01-13 March 4, 2013 Subject: Marketing & Business Development Program - 2012 Year End Summary Page 6 7. Economic Development staff responds to new investment in 2012. The Economic Development Office responded to 26 investment enquiries, including 3 confidential enquiries for significant industrial manufacturing and office space development. These enquiries were received from the GTMA, Ministry of Economic Development & Innovation, OMAFRA (Ontario Ministry of Agriculture, Food and Rural Affairs), and various private real estate brokerages. In 2012, 2 major employers, Search Engine People and Trench (Canada) Ltd. opened their doors in Pickering. In both cases, the Economic Development Office led a Development Response Team to coordinate the efforts of multiple municipal and external development approval authorities. As a result of the team . effort, both businesses received their necessary approvals in time to meet aggressive construction schedules, allowing them to occupy their facilities, bring over 400 new jobs to Pickering, and begin work in their sectors without any significant delays. 8. City of Pickering celebrates at 34 Grand Openings in 2012. Economic Development staff coordinated the support of 34 business openings in 2012. Services provided included information on appropriate protocols and media contacts, the provision of ceremonial scissors and ribbons, and the presentation ~i of certificates of appreciation and/or plaques to commemorate the event. When I, appropriate, an editorial with accompanying photography is posted to the City's Business website to promote the grand opening. A few Grand Openings to highlight in 2012 are: • The Pickering Learning Site - 1340 Pickering Parkway • Search Engine People - 1305 Pickering Parkway • V!VA Retirement Community - 1880 Glengrove Road • Long & McQuade retail store - 1887 Kingston Road • Aspect Retail Logistics - 200,00 square foot expansion at 1400 Church Street 9. Economic Development Office promotes the City of Pickering as a preferred place to invest. Each year, the Economic Development Office identifies opportunities to market our community as a preferred place to invest. To augment the Economic Development budget allocation for marketing, this office will, from time to time, participate in joint marketing opportunities with other Economic Development groups such as: • Greater Toronto Marketing Alliance (Foreign Direct Investment attraction) • Durham Economic Development Partnership (Regional and National investment) • Durham Region Tourism (for promotion of the Pickering Museum Village, our waterfront, Nautical Village and community events) Report OS 01-13 March 4, 2013 Subject: Marketing & Business Development Program - 2012 Year End Summary Page 7 In 2012, this office coordinated the design and production of 2 new pop up banners entitled `Advantage Pickering' and `Smart Energy. Smart Choice'. These promotional banners are used to showcase Pickering at various trade shows and business events. Print advertising pieces were placed in a number of publications, including the following: • Durham Tourism Discovery Guide - annual print and online publication. • Perspectives Canada Magazine - international circulation. • Canadian Business Magazine - annual economic development issue. • EDCO Investors Guide (Economic Developers Council of Ontario). • Expansion Solutions Magazine, Canadian feature; North American circulation and online presence in the Ontario Directory. 10. Collection and analysis of data and statistics, necessary to support Business Retention, Expansion and Attraction programs. The chatlenge of any economic development office is to source accurate, current demographic data for their community. This data is necessary in order for the City's Economic Development Office to respond effectively to requests for information that support a potential investor's decision to choose Pickering as their preferred location to start and/or grow their business. In 2012, staff contributed significant time and expertise to the roll out of the Region of Durham `Business Count' Employment survey. Results will be released to this office in early 2013. This comprehensive employment data will allow us to establish a current set of boiler plate statistics such as the number of businesses operating in Pickering, the sector in which they operate, the size of businesses both by employees and square footage and other information critical to understanding our business base. Information collected in this program will provide a baseline set of data for the ongoing tracking of business data and trends in our community. This information can then be used to determine supply chain and labour force gaps, to accurately promote the skills and services available from our business community and to review the level of job creation. Further, this data will enable the Economic Development Office to develop more effective support programs for business retention, expansion and new investment. 11. Gauging the Economic Health of Pickering through Labour Force tracking and Employment Land Absorption. a) Labour Force Tracking job gains and losses is a difficult, yet necessary activity in gauging the economic health of a community. This office collects labour force data at corporate calls, through discussions with business owners, and from information available through other economic development agencies that interact with Pickering businesses (such as the Region of Durham Business Count Employment survey). Report OS 01-13 March 4, 2013 Subject: Marketing & Business Development Program - 2012 Year End Summary Page 8 Pickering experienced minimal job losses in 2012 and enjoyed a number of significant job gains. It is estimated there were over 900 new jobs created in the City in 2012, in a variety of sectors including industrial manufacturing, information and communication technology; commercial office, retail and hospitality. Another area of employment that should be considered when reviewing the g'ains or losses in labour force is jobs created by construction projects. Whether private sector or government infrastructure projects, they create temporary jobs within our City that have a significant economic impact on the community. Construction jobs vary from general labourers to highly skilled technicians, engineers and architects. While in our City, these workers are a source of revenue to local businesses and service providers. Significant developments such as the pedestrian bridge, the Pickering Learning Site, Siemens/Trench Ltd., York/Durham Pipeline, Duffin Creek Water Pollution Control Plant and new residential construction in Duffin Heights have brought hundreds of workers into the City of Pickering on a daify basis over the last 2-3 years. b) Employment Land Absorption Total employment land absorption for the year 2012 was approximately 6.75ha or 17 acres. This absorption was represented by the Nivlog mixed use development under construction at 1735 Bayly Street, and the 192,000 square- foot industrial facility at 1865 Clements Road, now occupied by Trench Ltd. (division of Siemens). Currently, the Brock Employment Park has approximately 100 acres of serviced, developable land available, represented by approximately 7 separate parcels. Nearly three quarters of this land is owned by Runnymede Development Corp. Five of the parcels available for development are 5 acres or less, with one of the smaller parcels being subject to significant environmental screening. The lack of vacant, shovel ready employment land in urban Pickering is now affecting the City's ability to respond to investment enquiries that have a potential for significant job creation. ! Until employment lands are serviced and available for development in the Seaton Community, this office expects to be constrained in the number of opportunities to which we wilt be able to offer shovel ready development opportunities in the City of Pickering. Report OS 01-13 March 4, 2013 Subject: Marketing & Business Development Program - 2012 Year End Summary . Page 9 12. Film Productions on the rise in Pickering. 2012 was a record-breaking year for production in Ontario with over $1.3 billion dollars in direct expenditures to the provincial economy. Ontario is now the largest film and television jurisdiction in Canada. Pickering continues to experience a growing share of this increased filming activity. During 2012, Pickering issued permits for 64 film days collecting $3,700 in permit fees. A further $8,778.81 in revenue was collected for productions shot at the Pickering Recreation Complex and another $17,890 for film productions shot at Pickering Museum Village. Residents and businesses in Pickering also benefit from local film expenditures. An example of this was the Wolves production that filmed in north Pickering for 17 days, paying $126,500 in location fees, goods and services. Prepared By: Approved/Endors By: i Catherine Hodge Lynn Winters in Coordinator, Economic Development Manager, M rketing & Business Development - ~nlw,61 V J adoon Tho ' as Melymuk rdinator, conomic Development Director, City Dev lopment CH:Id Recommended for the consideration of Pickering City ouncil 20, 201„3 - Tony Prevedel, P.Eng. Chief Administrative Officer