City of Vaughan

Key Highlights

• The Consumer Price Index rose 3.3 per cent year-over-year in July following a 2.8 per cent increase in June.
• The national unemployment rate was unchanged in July, holding at at 5.5 per cent.
• Real Gross Domestic Product (GDP) decreased 0.2 per cent in June following a 0.2 per cent increase in May.
• The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in Retail Trade, Other Services and Accommodation and Food Services in August.
• Growth continues in Vaughan: the City ranked top 10 in Canada by total value of all building permits at the end of the second quarter, with the City’s residential market ranking fourth and its industrial market ranking tenth.
• Vaughan-headquartered Macrodyne Technologies announced a $5 million investment to adopt new technology at their Vaughan facility, which will create 25 new jobs.
• Drone Delivery Canada was awarded their first contract for their canary drone delivery solution from the Canadian Department of National Defense.
• Vaughan-headquartered Gracious Living announced their U.S. expansion into Morgantown, Kentucky

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SELECT Economic Indicators

The Consumer Price Index rose 3.3 per cent year over year in July following a 2.8 per cent increase in June.

The Consumer Price Index (CPI) rose 3.3 per cent year-over-year in July following a 2.8 per cent year-over-year increase in June. Mortgage interest costs continue to be the largest contributor to headline inflation, rising 30.6 per cent year over in July.

In July, grocery prices remained elevated but grew at a slower pace year-over-year, rising 8.5 per cent in July after a 9.1 per cent increase in June. Prices of fresh fruits and bakery products rose at a slower pace in July (increasing by 4.1 per cent) compared to June, when price rose 10.4 per cent.

The CPI for Ontario followed a similar trend, rising 3.2 per cent year over year in July compared to June at 2.6 per cent. Mortgage interest costs, food and electricity continue to put pressure on consumer prices in the province.

The national unemployment rate was unchanged, remaining at 5.5 per cent in July.

National unemployment remained unchanged in July at 5.5 per cent. National employment rose by 40,000 in August but was outpaced by population growth (+103,000 people). Ontario’s unemployment rate rose 0.3 per cent in August to 5.9 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – rose slightly to 6.5 per cent.

Employment gains in August were concentrated in professional, scientific, and technical services and construction industries, while declines were led by the education services and manufacturing industries. Since January 2023, employment has increased by the addition of 174,000 jobs across Canada, representing an approximate average increase of 25,000 per month.

In August, the involuntary part-time employment rate was 18.9 per cent – up from 17.2 per cent in August 2022. Youth aged 15 to 24 made up the largest portion of this increase. Involuntary part-time work (or underemployment) refers to individuals who work part-time because they could not find work with 30 hours or more.

On a year-over-year basis, average hourly wages rose 4.9 per cent (to $33.47) in August, following an increase of 5.0 per cent in July.

Real Gross Domestic Product (GDP) decreased 0.2 per cent in June following a 0.2 per cent increase in May.

Real Gross Domestic Product (GDP) decreased 0.2 percent in June, following a 0.2 per cent increase in May. Real GDP measures the inflation-adjusted value of goods and services produced in the economy and is an indicator of economic growth.

Public administration, real estate and rental and leasing, oil and gas were main contributors to the increase in GDP for June. Wholesale trade, which was one of the strongest contributors to May GDP increase, contracted 3.0 per cent in June, while the equipment and supplies wholesale subsector contributed the most to June’s decline.

Construction activity decreased for the second consecutive month as residential and non-residential building activity declined 0.6 per cent in June.

Advance information indicates that real GDP was essentially unchanged in July. Increases in the public, finance and insurance, and professional, scientific and technical services sectors were offset by decreases in the manufacturing, transportation and warehousing, and construction sectors.

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LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in Retail Trade, Other Services and Accommodation and Food Services in August.

ED’s Small Business and Entrepreneurship top five industries seeking consultations in August were:

1. Retail Trade (29 per cent)
2. Other Services (29 percent)
3. Transportation and Warehousing (14 per cent)
4. Accommodation and Food Services (14 per cent)
5. Construction (10 per cent)

Unprecedented growth in the City of Vaughan shows no signs of slowing in 2023, with Vaughan’s residential market ranking fourth nationally by value of building permits during the first two quarters.

Statistics Canada recently released its building permit rankings for the second quarter of 2023. Year to date value of building permits for residential construction ranked Vaughan fourth while Vaughan’s industrial market ranked tenth.

Unprecedented growth shows no signs of slowing in 2023, as residential construction sets records this year. The total value of residential permits has surpassed previous records despite only being halfway through the year – at the end of the second quarter of 2023, residential permits were in excess of $1.1 billion in construction value as reported by the City of Vaughan’s Building Standards department. In 2022, the value of all permits issued from the City totaled $1.7 billion in building construction value.

Vaughan continues to be one of the largest industrial markets in the Greater Toronto Area, with a total industrial inventory of more than 98.4 million square feet at the end of the second quarter with an additional 2.06 million square feet under construction, according to a market report by Colliers.

Vaughan-headquartered Macrodyne Technologies announces $5 million investment to modernize facility and create 25 new jobs.

Vaughan-headquartered Macrodyne Hydraulic Presses & Automation announced a $5 million investment into its Vaughan facility to adopt new technology, creating 25 jobs. This announcement was enhanced by 750,000 from the Ontario Government Regional Development Program.

Vaughan has one of the most concentrated advanced manufacturing hubs in the GTA. The City is home to global leaders across many sectors – including automotive, food processing and more – contributing more than $4 billion in local economic output and employing 30,000 workers.

Drone Delivery Canada was awarded first contract for its canary drone delivery solution from the Canadian Department of National Defense.

Vaughan-headquartered Drone Delivery Canada, a leader in drone delivery technology, was recently awarded its first contract for its canary drone from the Canadian Department of National Defence. The contract was signed in part with the Innovation for Defence Excellence and Security (IDEaS) program to operate and evaluate Drone Delivery Canada’s canary delivery platform.

Vaughan-headquartered Gracious Living announced a U.S. expansion in Morgantown, Kentucky.

Gracious Living, a leading Canadian manufacturer of proprietary and contract plastic products, announced the acquisition of an active injection molding company in Morgantown, Kentucky. This expansion into the U.S. continues Gracious Living’s steady growth – the newly acquired facility includes a 160,000 square foot facility approximately one hour north of the Nashville Metropolitan Area.

In 2022, 325 businesses reported they had head offices in the City. Those head offices reflect the diversity of Vaughan’s economy, and include Gracious Living, Coreio Inc., Recipe Unlimited, Grand & Toy Ltd., Anatolia Tile and Stone Inc., Condrain Group, Kohl & Frisch, Miele, Ganz,Yum! Brands, SmartCentres, GFL Environmental, Martinrea International and more. These headquartered companies have facilities around the world with access to a number commercial markets.

Key Highlights

• The Consumer Price Index rose 2.8 per cent year over year in June following a 3.4 per cent increase in May.
• The national unemployment rate rose 0.1 per cent in July to to 5.5 per cent, marking the third consecutive increase.
• Real Gross Domestic Product (GDP) increased 0.3 per cent in May following a 0.1 per cent increase in April.
• The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in Professional, Scientific & Technical Services, Retail Trade, and Accommodation and Food Services in July.
• Canada welcomed more than 32,000 tech workers between April 2022 and March 2023
• Former Activate!Vaughan participant B12Give has diverted 15,000kg of food waste by connecting businesses with shelters across the Greater Toronto Area.

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SELECT Economic Indicators

The Consumer Price Index rose 2.8 per cent year over year in June following a 3.4 per cent increase in May.

The Consumer Price Index (CPI) rose 2.8 per cent year-over-year in June following a 3.4 per cent year-over-year increase in May. For the second consecutive month, CPI has reported a significant year-over-year deceleration. However, grocery prices and mortgage interest costs are continuing to contribute the most to CPI’s year-over-year increase. In June, grocery prices increased 9.1 per cent compared to the same period in 2022. Meat, bakery, and dairy products were the largest contributor to increased grocery prices in June.

The national unemployment rate rose to 0.1 per cent to 5.5 per cent in July, marking the third consecutive increase.

National unemployment rose 0.1 per cent to 5.5 per centin July, which was a third consecutive increase in unemployment. Ontario’s unemployment rate dropped in July to 5.6 per cent, and unemployment in the Toronto Census Metropolitan Area (which includes Vaughan) increased to 6.5 per cent, up from 6.3 per cent in June.

Employment gains in July were concentrated in healthcare and social assistance, educational services, finance, insurance, and real estate and agriculture. Employment declines were led by the construction industry, concentrated in British Columbia, Quebec, and Ontario. Significant employment declines were noted in core-aged men aged 25 to 54 years of age (-27,000). However, employment amongst youth aged 15 to 24 increased by 13,000.

In Ontario, employment growth held steady in July following a cumulative gain of 236,000 from September 2022 to June 2023.

On a year-over-year basis, average hourly wages rose 5.0 per cent (+$1.59 to $33.24) in July, following increases of 4.2 per cent in June and 5.1 per cent in May (not seasonally adjusted).

The summer is an opportunity for many students to gain valuable work experience. In July 2023, new data collected as part of the labour force survey found that among youth aged 18 to 24 years of age who had been a post-secondary student at some point since January 2023 reported that nearly one in three (30.6 per cent) work in a field that is closely related to there postsecondary studies. The study also found that 48.1 per cent of youth who were not returning to post-secondary studies would be making specific efforts to find employment related to their field of study.

Vaughan Economic Development offers a number of programs and initiatives supporting youth talent development across the City. Summer Company, funded by the Ministry of Economic Development, Job Creation and Trade (MEDJCT), is the City’s student business training, grant, and mentorship program. The program accepted 11 of Vaughan’s future business leaders who launched their businesses across a number of industries, including professional services, retail, and recreation. Additionally, the Talent City Vaughan Youth Careers Expo was hosted on May 31, 2023,in partnership with COSTI and Next Steps Employment Centre and saw more than 160 youth participating and establishing connections with potential employers. The City of Vaughan was also able to provide 40 youth aged 15 to29 years of age employment across numerous City departments as part of the Canada summer jobs program.

Real Gross Domestic Product (GDP) increased 0.3 per cent in May following a 0.1 per cent increase in April.

Real Gross Domestic Product (GDP) increased 0.3 per cent in May, following a 0.1 per cent increase in April. Real GDP measures the inflation-adjusted value of goods and services produced in the economy and is an indicator of economic growth. Manufacturing, wholesale trade, and public administration drove the increase in GDP for May. Continued easing of supply chain issues particularly with semiconductor chip suppliers, led to increases in manufacturing and whole trade activity specifically within the automotive sector.

Vaughan’s automotive cluster is home to more than 660 businesses employing more than 13,600 workers. Notably, the City has more than 45 automotive parts manufacturing businesses which employ more than 7,200 people. The manufacturing industry, of which automotive is a key driver, contributes $4 billion (16 per cent) to Vaughan’s total GDP.

For a fourth consecutive month, offices of real estate agents and brokers and activities related to real estate increased 7.6 per cent in May. This increase was led by higher reselling activity of residential properties in the Greater Toronto Area, Montreal, Quebec, Greater Vancouver, Calgary and Alberta.

Advance information indicates that real GDP decreased 0.2 per cent in June. The decrease was driven by the wholesale trade and manufacturing sectors, whose downward movements more than offset the increases recorded in May.

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LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in Professional, Scientific & Technical Services, Retail Trade, and Accommodation and Food Services in July.

ED’s Small Business and Entrepreneurship top five industries seeking consultations in July were:

1. Professional Scientific and Technical Services (17 per cent)
2. Retail Trade (15 percent)
3. Accommodation and Food Services (13 per cent)
4. Other Services (13 per cent)
5. Education Services (11 per cent)

Canada welcomed more than 32,000 tech workers between April 2022 and March 2023.

The Technology Council of North America (TECNA) and Canada Tech Network (CTN) recently released a report titled “Tech Workforce Trends: The Migration of Tech Workers and Tech Jobs Since the pandemic” which highlighted that between April 2022 and March 2023, 32,115 new workers came to Canada with most migrating from India and Nigeria. This migration is due in part to a more immigration-friendly national policy and labour cost advantages.

Amid this massive migration, Canada also had a net loss of 1,672 tech workers to the United States. Considering the total tech workforce of each, this demonstrates Canada’s competitiveness for tech talent, despite large disparities in earning power relative to the U.S. The average compensation for U.S. tech occupations per the report is $175,600 CAD ($133,500 USD), with a salary range of from $72,600 to $313,000, while the average compensation for the same tech occupations in Canada is $100,400 CAD ($73,897 USD), ranging from $72,600 to $313,000.

The Ministry of Immigration’s new tech talent strategy promises to bring 10,000 new highly-skilled tech workers to Canada with H1B visas. Through this new strategy, the federal government also plans to promote Canada as a destination for digital nomads.

Vaughan is located in the second-largest tech hub in the country. York Region’s tech community, which boasts more than 4,600 ICT companies, is a complete eco-system where tech multinationals operate alongside leading Canadian industry leaders focused on all areas of innovation including enterprise software, IT services, cloud computing, hardware, microelectronics, and more.

Former Activate!Vaughan participant B12Give has diverted 15,000kg of food waste by connecting businesses with shelters across the Greater Toronto Area.

B12Give (Be One To Give), a purpose-driven social enterprise and former participant and grant recipient under Activate!Vaughan was recognized for its accomplishments to date, notably cutting enough waste since its inception to feed 25,000 people. Founded in 2019 to fight hunger in the Greater Toronto Area, B12Give has diverted 15,000 kilograms of food waste. The company operates like an UberEats-style delivery platform dedicated to combating food waste, with restaurants and businesses notifying B12Give of available food surplus that can be diverted to local shelters and charities.

Activate!Vaughan is an innovation program that connects high-potential start-ups and scale-ups to market-driven entrepreneurship opportunities and mentorship from industry leaders and multinationals. Vaughan Economic Development continues to support purpose-driven initiatives for businesses within the City through programs like Better Your Business: Tap into Social and Environmental Sustainability Program, which is currently accepting applications until October 25, 2023. The Better Your Business Program is a new initiative that supports cohorts of five Vaughan-based businesses in incorporating the United Nation’s 17 Sustainable Development Goals into their corporate practices.

KEY HIGHLights

• Vaughan remains the largest economy in York Region – accounting for 35 per cent of all businesses, 36 per cent of all employment and 36 per cent of all economic output in York Region in 2023.
• Vaughan’s diverse economy has many industries with substantial economic output which drive outbound trade in York Region. In fact, Vaughan’s businesses accounted for 47 per cent of all York Region exports in 2019.
• Vaughan continues to be a city on the rise and a destination for investment. In 2022, the City issued nearly $1.75 billion in building permits.
• Vaughan’s industrial market is one of the busiest in the country – ranking 4th nationally by value of industrial permits – and breaking City records with a record construction value of $556.5 million in 2022.
• Home to more than 19,500 businesses, small business continues to drive Vaughan – 87 per cent of the City’s businesses have fewer than 20 employees.
• Vaughan’s employment has surpassed pre-pandemic levels with average annual employment growth of 4.54 per cent since 2020. Since 2013, the City’s average annual employment growth rate is 1.58 per cent.
• In 2022, Vaughan was home to nearly 345,000 diverse and highly educated residents – that number is expected to increase by 66 per cent to more than 576,000 by 2051.
• While both Vaughan and York Region saw a 3.9 per cent increase in economic output as measured by real GDP in 2022, this strong economic performance is expected to taper in 2023, recovering to see modest growth in the medium-term.

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Vaughan’s key economic indicators continued to grow in 2022, highlighting the City’s economic resilience and continued choice as a destination for business and investment.

Real GDP

The City’s real gross domestic product (GDP) since 2013 has grown steadily and recovered fully from economic losses that occurred due to the COVID-19 pandemic. Figure 1 illustrates real GDP growth over a 10-year period, amounting to an average annual growth rate of 2.94 per cent.

Key sectors help to drive economic growth. For example, a leader in both goods movement and goods production in the Greater Toronto Area (GTA), Vaughan is responsible for 56 per cent and 50 per cent, respectively, of economic output in these sectors in York Region.

Vaughan’s diverse economy has many industries with substantial economic output which drive outbound trade in York Region. In fact, Vaughan’s businesses accounted for 47 per cent of all York Region exports in 2019.

The top three industries as measured by real GDP in 2022 were:

1. Finance, Insurance and Real Estate (25.0 per cent)
2. Construction (16.7 per cent)
3. Manufacturing (16.2 per cent)

Figure 1: Real Gross Domestic Product, Vaughan 2013-2022 (Source: Conference Board of Canada)

Employment

Vaughan’s employment continues to grow steadily. The City’s employment has rebounded and surpassed pre-COVID-19 pandemic employment levels. Vaughan’s employment by place of work has continued to increase steadily over the last decade with an annual average growth of 1.58 per cent. After declines seen at the onset of the pandemic, employment has shown a dramatic rebound, now surpassing pre-pandemic levels – the average annual growth rate of employment since 2020 is 4.58 per cent.

Vaughan’s top three industries by employment in 2022 were:

1. Construction (17.0 per cent)
2. Manufacturing (14.7 per cent)
3. Finance, Insurance and Real Estate (13.9 per cent)

Business Counts

Economic diversification is an important aspect of building a resilient economy. With more than 19,500 business in 2022 (Figure 2), Vaughan’s businesses span a variety of sectors and reflect a well-diversified economy as evidenced by its strong economic performance as measured by real GDP.

Small business continues to drive Vaughan – 87 per cent of the City’s businesses have fewer than 20 employees.

Vaughan’s top three industry sectors by number of businesses were:

1. Professional (16.8 per cent)
2. Construction (15.2 per cent)
3. Finance Insurance and Real Estate (14.8 per cent)

In 2022, 325 businesses reported they had head offices in the City. Those head offices reflect the diversity of Vaughan’s economy, and include Coreio Inc., Recipe Unlimited, Grand & Toy Ltd., Anatolia Tile and Stone Inc., Condrain Group, Kohl & Frisch, Miele, Ganz,Yum! Brands, SmartCentres, GFL Environmental, Martinrea International and more.

Figure 2: Business Counts, Vaughan, 2022 (Source: Statistics Canada, Canadian Business Counts)

Building Permits

Vaughan is a city on the rise – since 2013, the City has issued nearly 42,000 building permits totalling $13.7 billion (Figure 3). In 2022, Vaughan issued permits for $1.7 billion in building construction value and ranked top 10 in Canada by value of permits for non-residential construction.

Vaughan’s industrial market is one of the busiest in the country – ranking 4th nationally by value of industrial permits – and breaking City records with a record construction value of $556.5 million in 2022.

Vaughan continues to be one of the largest industrial markets in the Greater Toronto Area, with a total industrial inventory of more than 98.4 million square feet at the end of the second quarter of 2023, with an additional 2 million square feet under construction, according to the latest industrial market report by Colliers.  In 2022, the top five cities by value of industrial permits in Canada were:

1. Toronto
2. Montreal
3. Mississauga
4. Vaughan
5. Brampton

Figure 3: Building Permits, Vaughan, 2013-2022 (Source: City of Vaughan)

Population

In 2022, Vaughan was home to nearly 345,000 residents – that number is expected to increase by 66 per cent to more than 576,000 by 2051.

Since 2012, Vaughan’s population has grown at a steady pace. Ambitious federal immigration targets will sustain modest population growth, and Vaughan’s population is expected to follow this growth trend – climbing to nearly 365,000 people, and accounting for 27 per cent of the Region’s population by 2026.

Vaughan is home to a diverse population. The City’s residents are a mosaic of more than 217 ethnic or cultural origins and there are 113 unique languages spoken in Vaughan. The top five ethnic or cultural origins (excluding Canadian) in Vaughan are Italian, Chinese, Jewish, Russian, and Indian.

The City of Vaughan’s residents are also highly educated, constituting a highly skilled local talent pool. Seventy-three per cent of Vaughan’s population over 25 years old has a post-secondary certificate, diploma or degree – surpassing both the provincial (68 per cent) and national (67 per cent) average.

Figure 4: Population Estimates, Vaughan, 2012-2022, (Source: York Region Long Range Policy Planning)

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Economic Development is the go-to source for insight into Vaughan’s economic community – as knowledge brokers, the department collects and utilizes a variety of data sources that are used to support our research and intelligence services for both the City of Vaughan and its business community.

From supporting small businesses through the business planning process, to end-to-end site selection assistance, to research and business intelligence, Economic Development is here to support businesses of all sizes to succeed in Vaughan and is your go-to source for insight into Vaughan’s economic community. Connect with us today.

Key Highlights

• The Consumer Price Index rose 3.4 per cent year over year in May following a 4.4 per cent increase in April.
• The national unemployment rate rose by 0.2 percent to 5.4 per cent in June.
• Real Gross Domestic Product (GDP) is unchanged in April following a 0.1 per cent increase in March.
• The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in May led by Retail Trade, Professional, Scientific & Technical Services, Information and Cultural Industries
• ventureLAB announces the launch of the Hardware Angel Network to support the growth of the hardware and deep-tech sectors in York Region by catalyzing investment in early-stage hardware and MedTech.
• Vaughan-headquartered Kontrol Technologies is selected by new customer in the USA for emissions monitoring solutions.

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SELECT Economic Indicators

The Consumer Price Index rose 3.4 per cent year over year in May following a 4.4 per cent increase in April.

The Consumer Price Index rose 3.4 per cent year-over-year in May following a 4.4 per cent year-over-year increase in April. This was the smallest increase in inflation since June 2021. April’s consumer price index increase was primarily driven by mortgage interest costs – excluding mortgage interest cost, the CPI rose 2.5 per cent in May, following a 3.7 per cent increase in April.

The deceleration of inflation in May was attributed to smaller increases in the prices of durable goods such as furniture and passenger vehicles, coinciding directly with easing supply chain pressures. Grocery and food prices remain elevated; notably, with restaurant food prices accelerating at a faster year-over-year pace in May, rising by 6.8 per cent.

The national unemployment rate rises to 0.2 per cent to 5.4 per cent in June.

In June employment increased by 60,000, driven by increases in full-time work, with unemployment rising 0.2 per cent from May. Employment gains in June were concentrated among men aged 15 to 24 years of age (+31,000). Industries which saw employment gains were wholesale and retail trade, manufacturing, healthcare and social assistance, and transportation and warehousing.

In Ontario, employment grew 0.7 per cent in June following a decline in May. Overall employment gains since September 2022 totalled 236,000, or 3.1 per cent, in Ontario. Census Metropolitan Areas (CMAs) recorded higher shares of total employment growth which coincided with the growth of the number of people searching for work, which increased to 65.9 per cent. The Toronto CMA, which includes Vaughan, saw employment increases in June of 42,000.

Average hourly wages rose 4.2 per cent (+$1.32 to $33.12) on a year-over-year basis in June, following an increase of 5.1 per cent in May (not seasonally adjusted).

Real Gross Domestic Product (GDP) is unchanged in April following a 0.1 per cent increase in March.

Real Gross Domestic Product (GDP) was unchanged in April, following a 0.1 per cent increase in March. Real GDP measures the inflation adjusted value of goods and services produced in the economy and is an indicator of economic growth.

Construction activity increased by 0.4 per cent in April driven by increases in non-residential building construction, where engineering and other construction activities drove the increase. Non-residential building construction rose for the fifth month by 1.4 per cent in April.

Vaughan remains a city on the rise and a destination for investment. In 2022, the City issued nearly $1.75 billion in building permits and ranked top 10 in Canada by value of permits for non-residential construction. In fact, Vaughan’s industrial market is one of the busiest in the country – ranking 4th nationally by value of industrial permits – and breaking City records with a record value of $556.5 million in 2022

Manufacturing declined for the first time in four months in April by 0.6 per cent with declines seen in both durable and non-durable manufacturing.

Advanced estimates indicate that GDP is expected to increase 0.4 per cent in May, with increases in manufacturing, wholesale and retail trade, and real estate leading the month-over-month increase.

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LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in May by Retail Trade, Professional, Scientific & Technical Services, and Information and Cultural Industries.

ED’s Small Business and Entrepreneurship top five industries seeking consultations in May were:

1. Retail Trade (19 per cent)
2. Professional Scientific and Technical Services (17 per cent)
3. Information and Cultural Industries (13 per cent)
4. Accommodation and Food Services (10 per cent)
5. Arts Entertainment and Recreation (8 per cent)

ventureLAB announces the launch of the Hardware Angel Network to support the growth of the hardware and deep-tech sectors in York Region by catalyzing investment in early-stage hardware and MedTech companies.

The Hardware Angel Network was announced in June, and is the only hardware and deep-tech focused investor network in Canada supporting pre-seed and seed-stage startups. The network will support the growth of the hardware and deep-tech sectors in York Region by providing opportunities for mutually beneficial partnerships, syndication of deals, and collaboration on due diligence to support investment in early-stage Canadian companies throughout the ecosystem. ventureLAB is the provincially designated regional innovation centre (RIC) for York Region and is Canada’s only lab and incubator for hardware and semiconductor companies.

In March 2023, ventureLAB unveiled its Hardware Catalyst Initiative (HCI) for MedTech, in collaboration with Sterling Industries, to support the growth of medical hardware companies in Vaughan. The new MedTech incubator, located within Vaughan-based Sterling Industries, offers growing technology companies access to critical resources, product development support and medical device design expertise. As an end-to-end contract manufacturer and assembler of medical devices and components, Sterling Industries is a proven industry leader with manufacturing facilities and distribution channels in the U.S. and Europe. Sterling Industries is contributing essential equipment, top technical talent, and industry-leading mentorship to the project.

By establishing the MedTech HCI and creating this new investment network, ventureLAB is introducing critical resources and support for the growth and development of innovative medical device companies in Vaughan.

Kontrol Technologies is selected by new customer in the USA for emissions monitoring solutions.

Vaughan-headquartered Kontrol Technologies is a leader in smart building technology through IoT, Cloud and SaaS technology. Kontrol Technologies provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings.

The company was recently selected by a large medical facility in the USA for a Continuous Emission Measurement (CEM) solution. “Continuous emission compliance is a source of organic growth for Kontrol as we continue to add new customers and applications,” says Paul Ghezzi, CEO Kontrol Technologies.

KEY HIGHLIGHTS 

• The Consumer Price Index rose 4.4 per cent year over year in April following a 4.3 per cent increase in March. 
• The national unemployment rate rises to 5.2 per cent, the first increase since August 2022. 
• Real Gross Domestic Product (GDP) is unchanged in March following a 0.1% increase in February. 
• The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in May by Retail Trade, Professional, Scientific & Technical Services, Accommodation and Food Service, Education Services, Other Services. 
• The Government of Canada invested $5 million in leading automotive parts manufacturer ArcelorMittal Tailored Blanks Americas Limited (AMTB) to green operations and create 65 jobs at its Vaughan facility. 
• Noble launches industries first AutoStore warehouse automation system that revolutionizes order picking and customer service excellence. 

SELECT ECONOMIC INDICATORS 

The Consumer Price Index rose 4.4 per cent year over year in April following a 4.3 per cent increase in March.  

The Consumer Price Index rose 4.4 per cent year over year in April following a 4.3 per cent increase in March. Home mortgage interest costs and rent prices contributed the most to 0.1 per cent increase seen in April. Grocery prices are continuing to increase at a slower pace with year over year grocery prices in April at 9.1 per cent, compared to March at 9.7 per cent. The slowdown in grocery prices was mainly due to smaller price increases for fresh vegetables, coffee and tea.  

The national unemployment rate rises to 5.2 per cent, the first increase since August 2022. 

In May employment experienced little change, as employment fell by 77,000 for youth aged 15 to 24 years and increased by 63,000 among people 25 to 54 years of age. Business, building and other support services (-31,0000), as well as professional scientific and technical services (-13,000) had fewer people employed in May. However, increases in employment were noted for Manufacturing (+13,000), other services (+11,000) and utilities (+4,200).  

The number of employees held steady in the private and public sector, while there was a decline in the number of self-employed workers (-40,000). 

On a year-over-year basis, average hourly wages rose 5.1% (+$1.61 to $33.25) in May (not seasonally adjusted). 

Real Gross Domestic Product (GDP) is unchanged in March following a 0.1% increase in February. 

Real Gross Domestic Product (GDP), which measures the inflation-adjusted value of goods and services produced in the economy, was unchanged in March following a 0.1 per cent increase in February. For the third consecutive month oil and gas extraction expanded, with a 1.2 per cent increase in March. Manufacturing and accommodation and food services contracted in May by 0.6 per cent and 2.2 per cent. Main causes for the contractions included decline in durable goods manufacturing and food services and drinking places. 

Advanced estimates indicate that GDP is expected to increase 0.2 per cent in April with increases in mining, and oil and gas extraction, and transportation and warehousing being responsible for the month over month increase. 

LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in May by Retail Trade, Professional, Scientific & Technical Services, Accommodation and Food Service, Education Services, Other Services. 

ED’s Small Business and Entrepreneurship top five industries seeking consultations in May were: 

1. Retail Trade (32 per cent) 
2. Professional Scientific and Technical Services (28 per cent)
3. Accommodation and Food Service (11 per cent) 
4. Education Services (9 per cent) 
5. Other Services (7 per cent)  

The Government of Canada invested $5 million in leading automotive parts manufacturer ArcelorMittal Tailored Blanks Americas Limited (AMTB) to green operations and create 65 jobs at its Vaughan facility. 

Vaughan-based ArcelorMittal Tailored Blanks America Limited (AMTB) a leading automotive parts manufacturer is receiving a $5 million dollar investment from the Government for Canada to green its operations and create 65 jobs at its Vaughan facility. Funding will be utilized to modernize its equipment and technologies to fully transition its Concord facility from producing fuel powered components to 100 per cent electric vehicle components. This funding will also support the company as they collaborate with many leading EV Original Equipment manufacturers (OEM). 

Noble launches industries first AutoStore warehouse automation system that revolutionizes order picking and customer service excellence. 

Noble, a leading trade supplier in plumbing, HVAC, industrial and fire protection based in Vaughan announced a fully automated warehouse solution operated by autonomous robots. The new system is set to redefine inventory management, order processing operations and service excellence. Noble is the first in the industry to implement an AutoStore solution, developed and installed by Dematic – the global supplier of integrated automated technology, software and services. 

Key Highlights

• The Consumer Price Index rose 4.3 per cent year over in March following a 5.2 per cent increase in February. Marking the smallest increase in CPI since August 2021.
• The national unemployment rate continues to remain at 5.0 per cent in April.
• Real Gross Domestic Product (GDP) increased by 0.1 per cent in February.
• The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in April by Retail Trade, Professional, Scientific & Technical Services, Education Services, and Construction.
• Vaughan-headquartered Blue-Zone Technologies signs agreement with Respirair Global to install its patented capture technology in Respirairs manufacturing facility.
• Metro Supply Chain named one of Canada best managed companies.

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SELECT Economic Indicators

The Consumer Price Index rose 4.3 per cent year over in March following a 5.2 per cent increase in February. Marking the smallest increase in CPI since August 2021.

The Consumer Price Index rose 4.3 per cent year over in March following a 5.2 per cent increase in February. This marks the smallest increase in CPI since August 2021. Mortgage costs and grocery prices remain key drivers of inflationary pressure. In March the homeowner’s replacement cost continued to slow at 1.6 per cent year over year compared with a 3.3 per cent increase in February highlighting a general cooling of the national housing market. However, mortgage interest costs rose at a faster rate in March (+26.4 per cent) when compared to February (23.9 per cent) due to the number of Canadians renewing and initiating mortgages at higher interest rates. Grocery prices rose to a lesser extent in March (+9.7 per cent) than in February (+10.6 per cent) due to lower prices for fresh fruit and vegetables. Price growth for durable goods slow in March (+1.6 per cent) compared with February (+3.4 per cent) with Furniture prices leading the declaration in durable goods prices falling 0.3 per cent year over year in March.

The national unemployment rate continues to remain at 5.0 per cent.

In April employment rose by 41,000 with the unemployment rate continuing to hold steady at a 5.0 per cent. Gains in employment for April were predominantly in part time work. Employment gains were noted in the following industries, wholesale trade (+24,000); transportation and warehousing (+17,000), information, culture and recreation (+16,000) and education services (+15,000). Employment however decreased in business, building and other support services (-14,000). On a year-over-year basis, average hourly wages rose 5.2 per cent (+$1.66 to $33.38) in April (not seasonally adjusted).

Real Gross Domestic Product (GDP) increased by 0.1 per cent in February.

Real Gross Domestic Product (GDP), which measures the inflation-adjusted value of goods and services produced in the economy, rose by 0.1 per cent in February. Both services-producing industries and goods-producing industries edged up 0.1 per cent. Overall, GDP in 12 of 20 subsectors increased.

The public sector which includes educational services, health care and social assistance, and public administration combined expanded 0.2 per cent in February, for the thirteenth consecutive month.

For the third consecutive month the GDP of professional, scientific, and technical services sector rose 0.6 per cent in February as seven out of nine subsectors posted gains in February. The construction sector expanded for the third consecutive month (+0.3 per cent) with the top contributor to the sectors growth being residential construction.

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LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in April by Retail Trade, Professional, Scientific & Technical Services, Education Services, and Construction.

ED’s Small Business and Entrepreneurship top five industries seeking consultations in April were:

1. Retail Trade (40 per cent)
2. Professional Scientific and Technical Services (17 per cent)
3. Education Services (10 per cent)
4. Construction (7 per cent)
5. Accommodation and Food Services (5 per cent)

Vaughan-headquartered Blue-Zone Technologies signs agreement with Respirair Global to install its patented capture technology in Respirairs manufacturing facility.

Vaughan-headquartered Blue Zone Technologies a clean tech pharmaceutical company that leverages technology to capture waste anesthetic gases (WAGs) from healthcare facilities, recently entered into an agreement to install its technology in Respirair’s manufacturing facility. Respirair is a UK – based manufacturing of high quality environmentally friendly anesthesia vaporizers and accessories. This agreement marks the first contract for Blue Zone with an anesthesia machine manufacturer and aligns with the organizations mission to create greener facilities by providing creative solutions to reduce businesses GHG footprints.

Metro Supply Chain named one of Canada best managed companies.

Metro Supply Chain a strategic supply chain solutions partner to many global organizations with operations in Vaughan, was named one of Canadas best managed companies. The 2023 Canadas Best Managed Companies award recognizes excellence in private Canadian-owned companies that demonstrate leadership in the areas of strategy, culture, commitment, capabilities, innovation, governance, and financial performance. This is the third time Metro Supply Chain has received the award. The company received high accolades for its strategy and capabilities and focus on continuously improving how customers’ needs are met.

Key Messaging

• LandPRO Conference is an annual premier “how-to” conference for land, condo, real estate and development professionals in the GTA and throughout Ontario, now in its seventh year.
• Key macroeconomic trends currently affecting Canadians include, continued pressure from inflation, the Canadian economy’s sensitivity to high-interest rates, and the complexity of the Canadian labour market.
• Given the upcoming transit and infrastructure investments happening in the GTA, opportunities exist for third parties to help deliver Transit Oriented Communities (TOC) and create dynamic and vibrant complete communities focused around these investments.
• The Ontario Government’s Bill 109 and 23 have provisions currently in effect, that impact existing and proposed development applications including refund provisions, ministerial zoning tool, parklands requirements, and development charges updates.
• Accessibility in new housing supply given the aging population is a top-of-mind emerging trend and opportunity for land and real estate professionals, with a number of supports available to support the creation of truly inclusive communities.
• Economic Development can support your business – the department provides Vaughan’s business community with research on national, provincial, regional and local economic trends and offers business intelligence through key activities such as including data analysis, market research, and the provision of data to support business operations, expansion and workforce development.
• Interested in hosting your next conference or event in Vaughan? Tourism Vaughan can support your planning needs – the City offers quality venues to host a wide range of meetings, conferences or events at a convenient location accessible by road, rail or transit.

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Weren’t able to attend the 2023 LandRO Conference this spring? Whether you are a developer, real estate professional, or interested in what trends and emerging issues are top of mind in land and development in the Greater Toronto Area (GTA), Economic Development has what you missed.

What is the LandPRO conference and who attends?

LandPRO Conference is an annual premier “how-to” conference for land, condo, real estate and development professionals in the GTA and throughout Ontario, now in its seventh year. The conference sees more than 1,000 top land professionals for a day of learning and insights, strategies, and issues that are affecting the land industry.

The conference is organized by Krcmar Surveyors Ltd., a full-service professional land surveying company specializing in expansive, multi-faceted commercial, residential, retail and hotel land development projects and Protect Your Boundaries, a comprehensive online resource for realtors and land professionals in the Greater Toronto Area, providing land and property boundary knowledge, tools and services.

Vaughan’s construction and building materials sector is integral to supporting residential, commercial, and industrial building growth across Ontario and Canada. Vaughan’s Construction industry contributed $3.9 billion in Real GDP to Vaughan’s economy in 2021.

The construction and building materials sector in Vaughan is home to many of Canada’s top builders, developers, contractors and building material suppliers, this sector is supported by a large and concentrated workforce in the construction trades and engineering. The sector comprises work in residential, industrial and commercial construction at a provincial and national level.

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What to watch out for in 2023

Economic Development has curated highlights on emerging trends and issues that are top of mind for 2023 from presentations presented throughout the conference. Here’s what caught our eyes and ears:

1. Economic Update

While inflation continues to place pressure on Canadians, the availability of jobs for educated workers has grown substantially due to economic diversification into knowledge-based economies.

Benjamin Tal, Managing Director and Deputy Chief Economist CIBC Capital Market delivered an economic update highlighting key macroeconomic trends affecting Canadians. Highlights included:

• Global supply chain pressure is slowly returning to pre-pandemic levels.
• Inflation continues to place pressure on Canadian consumers.
  • Canada’s sensitivity to increased interest rates, when compared to the U.S., is due to a variety of factors, with mortgage renewal rates at 5 years in Canada and 30 years in the U.S. being one of the predominant factors.
  • It is expected that interest rates will hold steady throughout 2023 with potential cuts in 2024.
• Labour market conditions continue to be a complex issue in developed nations, In Canada:
  • Availability of jobs for educated workers has grown substantially between 2020- and 2023, primarily due to economic diversification into knowledge-based economies.
  • Participation rates are increasing and have improved drastically among new immigrants between 2020 and 2023.
  • Job vacancies continue to be an issue felt across many industry sectors, with those offering lower wages facing higher vacancy rates.
  • Seventy-three per cent of Vaughan’s population over 25 has a post-secondary certificate, diploma or degree – surpassing both the provincial (68 per cent) and national (67 per cent) average.

2. GO-Metrolinx Expansion and Impact on the GTA

A panel exploring GO-Metrolinx expansion and the impact on the GTA was moderated by Lindsay Dale-Harris from Bousfields Inc., with representation from Metrolinx, WSP Canada, Emblem Development and Brattys LLP.

Vaughan is a city on the rise – by 2051, its population is expected to more than double, increasing by 66%. Regional linkages via an integrated transportation system is one of the building blocks to a complete urban community. Transit connections enable economic growth, enhance quality of life and create a sustainable future.

Opportunities exist city-wide to capitalize on these major investments as a catalyst for business growth, connecting businesses directly with clients and highly-educated local talent.

Highlights included:

• There are nearly 3.5 million cars owned within the GTHA, and the region grows by 150,000 new residents annually, with an estimated 41 per cent population growth expected by 2041.
  • Vaughan’s population is expected to increase 66% by 2051.
• One in every four trips crosses a regional boundary, and 79 per cent of trips are currently made by car.
  • Metrolinx projects that will impact connectivity in Vaughan include the proposed Queen Street-Highway 7 BRT, the North Yonge Subway Extension, and the Barrie Line GO Expansion.
• Employment growth in Toronto has significantly outpaced recent projections.
• The Province has directed a focus on higher density with Major Transit Station Areas (MTSAs)[1], Protected Major Transit Station Areas (PMSTAs)[2], Transit Oriented Communities (TOC) and beyond.
• Opportunities exist for third parties to deliver Transit Oriented Communities (TOC) at new and existing transit stations along the GO network to build vibrant, complete communities at and around transit.
  • Development considered under a TOC approach is designed to increase transit ridership, promote other modes of access to stations through optimizations of land use close to transit stations, bring housing and employment in closer proximitiy to transit, and that reduces congestion and emissions.
  • The TOC approach allows Metrolinx to leverage third-party investment to explore new funding avenues.
• For development to deliver TOCs, it is best to engage with Metrolinx and Infrastructure Ontario early on and at due diligence.

3. Bill 109 and 23 Update

Patrick Harrington, a partner and member of Aird Berlis’ Municipal & Land Use Planning Group, delivered a presentation to provide technical updates on Bills 109 and 23.

The presentation highlighted specific provisions from Bills 109 and 23 that are currently in force and how these changes impact existing and proposed development applications. The province is also undertaking a review of A Place to Grow and the Provincial Policy Statement.

Bill 23, the More Homes Built Faster Act, was introduced by the Minister of Municipal Affairs and Housing. It is described by the Ministry as an action to advance the province’s plan to address the housing crisis by building 1.5 million new homes over the next 10 years.

Bill 109, the More Homes for Everyone Act, brings about changes to the Development Charges Act, 1997 and the Planning Act, and was the first major legislative response to the recommendations of the Housing Affordability Task Force Report.

• Refunds provision from Bill 109 is in force and consequently, municipalities are required to refund all or part of planning application fees if decisions on applications are not made within prescribed timelines. However, the government has committed to introducing legislation that, if passed, would delay the implementation of development application refund requirements set out in Bill 109 by six months, from January 1, 2023 to July 1, 2023.
• The introduction of a new ministerial zoning tool, the Community Infrastructure and Housing Accelerator (CIHA) from Bill 109 is in force. From an economic development perspective, if used wisely, the CIHA can be a great tool to expedite highly significant employment and economic development projects.
• Conservation Authorities are now unable to provide a program or service related to reviewing and commenting on a proposal under various Acts including the Planning Act. In addition, they are now unable to appeal a Planning Act decision unless it involves natural hazards.
• The maximum interest rate that can be charged by municipalities in respect of a “frozen” development is a prime rate plus one percent.
• Municipalities are required to spend at least 60 percent of their development charge reserve funds at the beginning of each year starting in 2023 on the following: water supply services, wastewater services and services related to highways.
• Municipalities’ DC by-law is to be updated at least once every 10 years compared to the current requirement to update at least once every 5 years.
• Official plans and zoning by-laws may not prohibit up to three residential units with no minimum unit size and no more than one parking space required per lot.
• Residential development with 10 or fewer residential units are exempt from site plan control. In addition, municipalities can no longer regulate exterior design through the site plan control process with the exception of matters related to grading and site integration and matters covered by a sustainable design by-law.
• The maximum amount of parkland that can be conveyed or paid in lieu is 10 percent of the value of the land for sites under five hectares and 15 percent of sites greater than five hectares. Also, the maximum alternative dedication rate has been reduced to one hectare per 600 new units for land and one hectare per 1,000 new units for cash in lieu. New parkland rates do not apply if parkland requirement was imposed as a condition of subdivision and subdivision approval occurred before Nov. 28, 2022. New parkland rates apply to new units development without a parkland-related subdivision condition.

The City of Vaughan’s 2022 City-wide Development Charges are coming into effect as of June 1, 2023 in accordance with the Province’s transitional provisions as included in Bill 23.

4. Accessibility in residential construction and supports available

One in five (22 per cent) of Canadians aged 15 years and over identified as having at least one disability, with more than half identifying as having a physical disability. Of those with a physical disability, nearly half required at least one type of aid or assistive device or accessibility feature in their home.

Accessibility is an important aspect of fully inclusive communities. In Vaughan, 16 per cent of the population is aged 65 years or older, with that number expected to nearly double as another 44,310 residents will be turning 65 or older in the next 10 years. The ability to age in place or in the community will become an issue as populations age, given most new and existing homes do not meet the needs of Canadians who require accessibility accommodations.

Creating inclusive and accessible communities requires collaboration among businesses, organizations, and government.

On the heels of the province’s goal of 1.5 million new homes by 2031 to accommodate shortfalls and population growth, Identifying and removing barriers for people with disabilities extends to ensuring available housing supply in both urban and suburban settings incorporates physical accessibility into built form.

Jake Cohen, Chief Operating Officer of The Daniel Corporation delivered a presentation on ‘Accelerating Accessibility – Design, Development, and Construction Initiatives’ to promote inclusionary building practices and provide an overview of supports available to increase the supply of accessible housing. Key takeaways included:

• Accessibility is behind where it needs to be to meet the needs of those with disabilities and move forward as a truly inclusionary society where people of all ages and abilities can fully participate in society.
• In 2021, 78 per cent of Canadians want to age in place in their current homes, but only
  • Only 26 per cent feel they will be able to do so, as most new and existing homes do not meet the needs of Canadians who require accessibility accommodations.
• Accessibility features are easier when built-in – not bolted on after the fact. Daniels’ offers an Accessibility Designed Program, where standard accessible layouts are available at no additional cost to buyers. These include features such as: roll-in showers, roll-out balconies with swing doors, power operated entry door, wider doors, and clearance under sinks.
  • More than 100 units have been sold to date in high-rise projects under this program, which is also now integrated into purpose-built rental communities
• Supports available for businesses:
  • AccessNow is an accessibility technology company looking to make it easier for people with disabilities to navigate communities in over 35 countries
    • Their free app allows residents and visitors to search, rate and discover locations in their community that meet their accessibility needs.
    • Businesses can register for free to begin engaging with the accessibility community – establishing trust, helping to stand out competitively, and to showcase accessible experiences. Businesses are also able to receive valuable feedback on how they’re doing.
  • The Accelerating Accessibility Coalition (AAC) was launched in partnership with ULI and Access Now in 2022, dedicated to changing the face of accessibility in real estate.
    • ULI Toronto serves as the secretariat for the coalition.
    • This coalition is made of real estate development and accessibility leaders, initially focused on supporting accelerating the supply of new accessible buildings and homes in the Greater Toronto and Hamilton Area (GTHA) – the AAC has more than 30 members since launching late last year, including EllisDon, Daniels, and Cadillac Fairview.
    • The first phase of the coalition is about increasing awareness and understanding of why and how to build housing that is accessible at little to no additional cost.
    • Members can access the AAC Accessibility Toolbox, an open source and evolving asset to use as a point of reference or direction, with recommended actions organizations can use to guide them on their accessibility commitment. This could be used by anyone who works land and real estate development – from architects, to developers, to builders.

Are you interested in becoming a member of the AAC? To join as a member, all that is needed is to apply with a statement of support that states why accessible housing is important to an organization. You can see others’ statements here. For more information, or to submit a statement and join as a member, write to Linda Weichel at linda@lweichel.ca with Accessibility Coalition in the subject line. Read more about the Coalition, its mission and toolbox.

Once an organization becomes a member, there are four ways to start engaging:

1. Explore the tools in the Accessibility Toolbox, and consider how to implement one or more in upcoming projects.
2. Contribute to the Toolbox if they have any research, case studies or helpful templates that other developers/builders can benefit from.
3. Promote the coalition on social media and directly with peers and potential signatories.
4. Stay tuned to sign up for the education & awareness sessions that will be offered by AccessNow in the coming months.

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From supporting small businesses through the business planning process, to end-to-end site selection assistance, to research and business intelligence, Economic Development is here to support businesses of all sizes to succeed in Vaughan and is your go-to source for insight into Vaughan’s economic community. Connect with us today.

Interested in hosting your next conference or event in Vaughan? Tourism Vaughan can support your planning needs – the City offers quality venues to host a wide range of meetings, conferences or events at a convenient location accessible by road, rail or transit. Get the support you need – connect and learn more about all Vaughan has to offer.

[1] MTSAs are lands generally within a 500 to 800 metre radius (10 minute-walk) of a transit station or stop, primarily located along existing or planned transit corridors. MTSAs are one component of the new York Region Official Plan which was approved by the Province.

[2] Some or all of the City’s MTSAs may be identified as PMTSAs. To be identified as a PMTSA, the following must be identified in the specific area: the number of people and jobs/hectare to be accommodated; the permitted uses of land and buildings; the minimum densities that are allowed in buildings developed in the area; An Official Plan Amendment is required to implement PMTSAs and must be approved by the Province. A municipality may use a tool known as Inclusionary Zoning to help increase the supply of affordable housing locally within a PTMSA.

Key Highlights

• The Consumer price index rose 5.2 per cent year over in February following a 5.9 per cent increase in January. Making it the largest deceleration in CPI since April 2020.
• The national unemployment rate continues to remain steady at 5.0 per cent in March.
• Real Gross Domestic Product (GDP) increased by 0.5 per cent in January.
• The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in March by Professional, Scientific & Technical Services, Accommodation & Food Services Industries, Other Services, and Retail Trade.
• Drone Delivery Canada awarded its first contract with the Government of Canada for a heavy lift Condor drone.
• Kontrol Technologies selected by a Fortune 100 customer for energy monitoring and facility optimization technology.

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SELECT Economic Indicators

The Consumer Price Index rose 5.2 per cent year over in February following a 5.9 per cent increase in January. Making it the largest deceleration in CPI since April 2020.

The Consumer price index rose 5.2 per cent year over in February following a 5.9 per cent increase in January. Making it the largest deceleration in CPI since April 2020. While inflation has slowed, prices for certain items remain elevated. Food prices continue to increase with food purchased from grocery stores rising 10.6 per cent year over year in February marking the seventh consecutive month of double-digit increases. Food prices in grocery stores are continuing to face pressure due to high input costs, supply constraints, and unfavourable weather in growing regions.

Shelter prices continue to increase at a slower pace for the third consecutive month rising 6.1 per cent in February after an increase of 6.6 per cent in January. These movements indicate a general cooling of the real estate market.

Energy prices fell 0.6 per cent year over year in February following a 5.4 per cent increase in January. Prices for fuel oil and other fuels rose at a slower pace year over year in February (+24.3 per cent) compared with January (+36.5 per cent).

The unemployment rate continues to remain near record low.

In March employment rose by 35,000 with the unemployment rate continuing to hold steady at a near record low (5.0 per cent). National employment has continued on an upward trend since the Fall of 2022, over that period of time the number of employed people increased by 383,000.

Three industry sectors experienced increased employment growth in March. Transportation and warehousing rose by 41,000 (+4.2 per cent), business, building and other support services were up by 31,000 (+4.4 per cent) and finance insurance real estate, rental and leasing increased by 19,000 in March.

On a year-over-year basis, average hourly wages rose 5.3 per cent (+$1.68 per cent) to reach $33.12 in March. Wage growth was similar to February (+5.4 per cent), and there was little change between men and women (not seasonally adjusted).

Real Gross Domestic Product (GDP) increased by 0.5 per cent in January.

Real Gross Domestic Product (GDP), which measures the inflation-adjusted value of goods and services produced in the economy, rose by 0.5 per cent in January. Both goods-producing and service-producing industries were up in January as 17 out of 20 sectors posted increases.

Growth in real GDP for January was attributed to the wholesale trade, transportation and warehousing, and mining, quarrying and oil and gas extraction sectors which all rebounded from previous declines in 2022.

Manufacturing grew 0.5 per cent in January due to increases in durable goods manufacturing. Motor vehicle manufacturing posted the largest increase in the manufacturing sector up 20 per cent since December 2022.

The construction sector posted its largest gain since March 2022 with a 0.7 per cent increase since December 2022. More specifically increases in the sector were due to Engineering and other construction activities, residential building, and non-residential building growth.

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LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in March by Professional, Scientific & Technical Services, Accommodation & Food Services Industries, Other Services, and Retail Trade.

ED’s Small Business and Entrepreneurship top five industries seeking consultations in March were:

1. Professional, Scientific & Technical Services (45 per cent)
2. Accommodation & Food Services and Other Services (13 per cent respectively)
3. Retail Trade (9 per cent)
4. Information and Cultural industries (7 per cent)
5. Wholesale Trade (5 per cent)

Drone Delivery Canada awarded contract with the Government of Canada for heavy lift Condor drone

Vaughan-headquartered Drone Delivery Canada a leader in drone delivery technology was recently awarded their first contract for their heavy lift Condor drone from the Government of Canada. Drone Delivery Canada will be working with Transport Canada to operate and evaluate the proprietary drone delivery solution until December 2023.

The Condor heavy lift drone is designed to carry approximately 20 cubic feet of cargo, measuring 22 feet long, 5 feet wide and 7 feet tall and is capable of vertical take-off and landing. The drone will be assessed for its potential to support sectors such as mining, oil and gas, inspection, and emergency preparedness.

Kontrol Technologies was selected by a Fortune 100 customer for energy monitoring and facility optimization technology

Vaughan-headquartered Kontrol Technologies is a leader in smart building technology through IoT, Cloud and SaaS technology. Kontrol Technologies provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings.

The company was recently selected by a Fortune 100 customer for the company’s energy monitoring and facility optimization technology. Kontrol Technologies will deploy technology in a 1.6 million square foot facility to optimize the operation and management of complex heating, ventilation and building automation systems.

The recently released 2023 Ontario budget outlines a responsible and targeted approach that supports both people and businesses. The budget is comprised of six core pillars:

1. Building Ontario’s Economy for Today and Tomorrow
2. Building Highways, Transit, and Infrastructure Projects
3. Working for Workers
4. Keeping Your Cost Down
5. Better Services for You
6. Protecting You and Your Family

Core pillars of the 2023 Ontario budget comprise a comprehensive plan by the Government of Ontario to support residents and businesses across the province. Most notably the 2023 Ontario budget plans to support businesses and talent by:

• Launching the new Ontario Made Manufacturing Investment Tax Credit, which provides a 10 per cent refundable corporate income tax credit to help manufacturers in Ontario lower their costs, invest in works innovate and become more competitive.
• Advancing Ontario’s Critical Mineral Strategy to better support connections between industries, resources and workers in northern Ontario and manufacturing in Southern Ontario.
• Improving competitiveness by planning to enable an estimated $8 billion in cost savings and support for some Ontario employers in 2023, with $3.6 billion going to small businesses. That includes expanding access to the small business Corporate Income Tax rate by increasing the phase-out range. This would provide Ontario’s small businesses with additional Ontario income tax relief of $265 million from 2022–23 to 2025–26.
• Launching a voluntary clean energy credit registry that provides businesses with a tool to meet their environmental and sustainability goals and demonstrate that their electricity has been sourced from clean resources, such as hydroelectric, solar, wind, bioenergy, and nuclear power.
• Attracting over $16 billion in investments by global automakers and suppliers of EV batteries and battery materials to position Ontario as a global leader on the EV supply chain, even before the most recent announcement that a subsidiary of Volkswagen AG will establish an EV battery manufacturing facility in St. Thomas, Ontario.
• Providing $224 million in 2023–24 for a new capital stream of the Skills Development Fund to leverage private-sector expertise and expand training centres, including union training halls to provide more accessible, flexible training opportunities for workers.
• Enhancing the Ontario Immigrant Nominee Program with an additional $25 million over three years to attract more skilled workers, including in-demand professionals in the skilled trades, to the province.
• Expanding access to dual credit opportunities in healthcare-related courses for an additional 1,400 secondary students with an additional investment of $3.3 million over the next three years.
• Helping close to 27,000 students earn credits towards both their Ontario Secondary School Diploma and a postsecondary degree, diploma, certificate, or Certificate of Apprenticeship at the same time through dual credit opportunities.
• Expanding the Ontario Bridge Training Program with an additional $3 million in 2023–24 to help internationally trained immigrants find employment in their fields and get faster access to training and supports towards a license or certificate.
• Building the healthcare workforce with $22 million to hire up to 200 hospital preceptors to provide mentorship, supervision, and training to newly graduated nurses, $15 million to keep 100 mid‐to‐late career nurses in the workforce and $4.3 million to help at least 50 internationally trained physicians get licensed in Ontario.

Vaughan Economic Development remains committed to business retention, expansion, and attraction efforts that focus on a variety of industries to encourage further diversification of Vaughan’s economy. Economic Development continues to provide businesses with advisory services through direct business strategy consultations and corporate calls, seminars and events, and assistance to businesses expanding in Vaughan. In coordination with the Corporate and Strategic Communications department, Economic Development will continue to promote services, programs, and initiatives that support Vaughan businesses as they navigate changes in the economy. Economic Development offers a suite of programming tailored towards supporting new and existing businesses:

• B2B Industrial Tour – Vaughan-based companies with 20 employees or more and operating within the industrial facility sector, such as a warehouse, factory or distribution centre, can register to be matched with a company to tour each other’s facilities and share operational best practices, policies and business challenges.
• Better Your Business – The Better Your Business program is designed to increase awareness of the resources available to help Vaughan’s business community improve their processes, practices and policies and ensure they are socially and environmentally responsible.
• Better Your Business | Tourism Diversity Program – Tourism Vaughan provides up to 24 tourism-related businesses with an opportunity to plan and develop more inclusive and diverse tourism products, services and experiences.
• Talent City Vaughan – The program helps residents and Vaughan-based businesses access and undertake opportunities to enhance workforce skills. Talent City Vaughan provides micro-grants of up to $10,000 for eligible non-profit community and social service organizations delivering skills development and training to Vaughan talent.
• Starter Company Plus – The Vaughan Starter Company Plus program is designed to help businesses start, grow, or expand. Qualified program participants will receive tailored training and mentorship and will also have the opportunity to apply for a provincial grant of up to $5,000.
• Summer Company Plus – Access mentorship from Vaughan’s business community, tools, services and workshops to make your goals a reality. This is your opportunity to get up to $3,000 in provincial grant funding to kick-start your business. Apply now to the Summer Company program that prepares young entrepreneurs with a pipeline of tools, skills, connections and resources required to succeed.

Vaughan’s Economic Development team can help keep you up to date with Provincial programs that will flow from these investments. Connect with an Economic Development Officer to discuss opportunities to work with the Province.

Key Highlights

• The Consumer Price Index (CPI) rose to 5.9 per cent year-over-year in January.
• The national unemployment rate remains steady at 5.0 per cent in February.
• Real Gross Domestic Product (GDP) decreased slightly by 0.1 per cent in December.
• The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in February by Professional, Scientific & Technical Services, Retail Trade, and Accommodation & Food Services industries.
• Vaughan continues to be home to ground-breaking innovative companies – Vaughan-headquartered Drone Delivery Canada was awarded funding from the Downsview Aerospace Innovation and Research (DAIR) Green Fund for its clean energy drone delivery solution.
• Teledyne Geospatial continues to revolutionize land surveying with the release of the Galaxy Onboard workflow solution to support airborne land surveying.
• PICCO Group receives the 2022 Grande Pinnacle award from Natural Stone Institute, for their work on the Utopia Project in Grand Rapids, Michigan.

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SELECT Economic Indicators

The Consumer Price Index (CPI) rose to 5.9 per cent year-over-year in January.

The Consumer Price Index (CPI) rose to 5.9 per cent year-over-year in January. Food prices which include groceries and food from restaurants have risen at a slightly faster pace in January (+10.4 per cent) than in December (+10.1 per cent). The continued rising cost of groceries was driven primarily by meat prices which increased 7.3 per cent since December, which has resulted in the largest month-over-month increase in grocery costs since June 2004.

Shelter prices have increased at a slower rate on a year-over-year basis rising 6.0 per cent in January after a 7.0 per cent increase in December. However, mortgage interest costs have continued to rise at a faster pace on a year-over-year basis rising 21.2 per cent in January, the largest reported increase since September 1982.

The unemployment rate remains near a record low.

In February employment continues to hold steady (+22,000 jobs) with the unemployment rate remaining unchanged at 5.0 per cent. For the second consecutive month employment growth in health care and social assistance has risen, adding 15,000 jobs in February 2023. According to the 2022 York Region Employment Survey, Vaughan’s health care and social assistance sector was the fastest growing industry between 2019 and 2022 adding 3,030 jobs.

Employment for women aged 55 to 64 rose by 30,000 jobs in February with 6 in 10 (60.8 per cent) women in the age group being employed. This was the highest proportion on record for this age group rising 1.2 percentage points from the preceding high in January (59.6 per cent).

The employment rate continues to remain at near record lows, with the recorded low being 4.9 per cent which was observed in June and July of 2022. The labour force participation rate continues to hold steady at 65.7 per cent, an increase of 0.5 percentage points when compared to September 2022. Increases in labour force participation during this period were mainly attributed to increases in employment by core-aged women (25 to 54 years of age) and women aged 55 to 64 years of age.

Real Gross Domestic Product (GDP) decreased slightly in December.

Real Gross Domestic Product (GDP), which measures the inflation-adjusted value of goods and services produced in the economy, decreased by 0.1 per cent in December.

The transportation and warehousing sector experienced a contraction in December 2022 due to adverse weather conditions. These conditions resulted in this industry sector recording a decrease (-2.3 per cent) for the first time since January 2022.

Public sector industries (Education, health care and social assistance and public administration) combined grew 3.0 per cent in 2022 and contributed the most to increases in service-producing industries. Client-facing industries (Accommodation and food services) grew substantially in 2022 mainly due to the removal of pandemic-related restrictions. Growth in these industries was 23.2 per cent in 2022 and was primarily driven by gains in food services and drinking place establishments.

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LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in February by Professional, Scientific & Technical Services, Retail Trade, and Accommodation & Food Services industries.

ED’s Small Business and Entrepreneurship top five industries seeking consultations in February were:

1. Professional, Scientific & Technical Services (31 per cent)
2. Retail Trade (25 per cent)
3. Accommodation & Food Services and Other Services (13 per cent respectively)
4. Health Care & Social Assistance (8 per cent)
5. Administrative & Support & Waste Management (6 per cent)

Vaughan continues to be home to groundbreaking innovative companies – Vaughan-headquartered Drone Delivery Canada was awarded funding from the Downsview Aerospace Innovation and Research (DAIR) Green Fund for its clean energy drone delivery solution.

Vaughan-headquartered Drone Delivery Canada a leader in drone delivery technology was recently awarded $75,000 in funding from the DAIR Green Fund for its clean energy drone delivery solution. The DAIR Green fund which is funded by the Federal Economic Development Agency of Southern Ontario provides financial support for collaborative projects that can demonstrate an impact on the future of aerospace through sustainable solutions.

Drone Delivery Canada intends to utilize funding to support their Care by Air project and costs associated with regulatory approvals to allow Drone Delivery Canada to conduct beyond visual line of sight operations. This would allow Drone Delivery Canada to operate more complex delivery routes with fewer human resources required.

Teledyne Geospatial revolutionizes land surveying with the release of the Galaxy Onboard workflow solution to support airborne land surveying.

Teledyne Geospatial is a Vaughan-based designer and manufacturer of lidar and geospatial technologies used to create highly detailed three-dimensional maps of the earth’s surface. Teledyne products are used in applications such as land surveying, forestry, urban planning, archeology, and space exploration. The recently released Galaxy Onboard workflow solution lowers the barrier of entry for organizations venturing into airborne mapping. The solution offers surveyors the ability to deliver quality controlled processed data in real-time.

The City of Vaughan is also a smart, sustainable, and resilient community and a Smart City leader. The City achieved the Smart Cities Early Adopter International Organization of Standardization (ISO) 37122 certifications from the World Council on City Data. Vaughan is among the first cities worldwide to be certified under this new Smart City standard, joining an early adopter cohort of 10 cities globally.

PICCO Group receives 2022 Grande Pinnacle award from Natural Stone Institute

PICCO Group a Vaughan-based structural engineering firm provides unmatched expertise in stone, structural, and residential engineering. The organization was recently presented with the Grand Pinnacle award by the Natural Stone Institute at StonExpo in Las Vegas for work on the Utopia Project in Grand Rapids, Michigan.

“PICCO Group’s considerations for material extraction and handling, cubic geometry studies, stone engineering, installation, and fabrication proved intrinsic to meeting the delicate project requirements and high standards. The sculpture’s design required precision engineering and innovation with every solution. With stone panels up to 4,200 kgs and thicknesses exceeding 700 mm, a robust but simple steel frame system was designed for primary lateral support. Disc-shaped lateral connections proved efficient and timesaving. The essence of this sculpture will endure as a testament to Women & Humanity and Art & Architecture for generations to enjoy.”

-Natural Stone Institute, StonExpo, Las Vegas