Vaughan’s industrial market seeing a record-breaking year

KEY Highlights

  • This year will be a record year by value of industrial permits for Vaughan as permit totals in the third quarter reach $448.1 million
  • Vaughan’s industrial development market ranks fourth nationally by value of permits after the first three quarters
  • Vaughan’s non-residential development activity ranks ninth nationally by value of permits over the same period
  • Vaughan’s commercial market ranks fifth in Ontario despite a reduction of activity from 2021
  • Vaughan remains the largest industrial market in York Region and the fourth largest industrial market in the Greater Toronto Area after Toronto, Mississauga, and Brampton

ANALYSIS

Vaughan’s industrial market is one of the busiest in the country by value of industrial permits, breaking City records with one quarter remaining this year.

Statistics Canada recently released its building permit rankings for the third quarter, which includes previous data from the first two quarters.

The third quarter saw Vaughan move up a ranking from the previous quarter to the fourth industrial market overall in Canada by value of permits. Vaughan’s industrial market is breaking records at the City-level, surpassing 2021 with a quarter of building activity remaining this year. The total value of industrial permits as of the third quarter is $448.1 million compared to $373.3 million in 2021, as reported by the City of Vaughan’s Building Standards department.

Top Ten Canadian Industrial Markets by Value of Permits

  1. Brampton
  2. Montreal
  3. Mississauga
  4. Vaughan
  5. Toronto
  6. Whitby
  7. Laval
  8. Calgary
  9. Vancouver
  10. London

Vaughan continues to be one of the largest industrial markets in the Greater Toronto Area, with a total industrial inventory of more than 96.4 million square feet at the end of the third quarter with an additional 2.3 million square feet under construction, according to a market report by Colliers. Both vacancy rates and availability rates remain very low in Vaughan and across the Greater Toronto Area for industrial properties – York Region was the only region in the third quarter with a reported 0 per cent vacancy rate and had the lowest availability rate of 0.2 per cent.

Vaughan’s non-residential markets remain in the top ten in Canada, in large part due to the strength of its industrial market.

Vaughan ranks ninth overall in the country for value of non-residential building permits. This includes industrial, commercial, and institutional permits. At the end of the third quarter, Vaughan’s building permit values for non-residential permits totaled $593.8 million.

Top Ten Canadian Non-Residential Markets by Value of Permits

  1. Toronto
  2. Vancouver
  3. Montreal
  4. Calgary
  5. Edmonton
  6. Quebec
  7. Mississauga
  8. Brampton
  9. Vaughan
  10. Hamilton
Vaughan’s commercial market remains among the top in Ontario, where commercial market activity has cooled off in 2022.

Vaughan’s commercial market by value of permits was fifth in Ontario behind Toronto, Ottawa, Hamilton, and Mississauga respectively, and 14th in Canada at the end of the third quarter of this year. To date, the value of commercial permits in Vaughan totals $118 million with one quarter remaining, down from the record-setting $362.3 million in commercial development activity seen in 2021.


DEFINITIONS

Industrial buildings are defined as buildings used in the processing or production of goods, or related to transportation and communication.

Commercial buildings are defined as buildings used in the trade or distribution of goods and services.

Institutional buildings are buildings used to house public and semi-public services, such as those related to health and welfare, education, or public administration, as well as buildings used for religious services.

Availability rate is the ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet.

Vacancy rate is a measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations.

2021 Census Insights and Findings – Immigration and Ethnocultural Characteristics

Key highlights

  • 13,030 people immigrated to the City of Vaughan in 2021, an increase of 2,240 people over the 2016 census
  • Vaughan is home to 217 ethnic or cultural origins while Canada reported a total of 450 ethnic or cultural origins
  • The top five ethnic or cultural origins (excluding Canadian) in Vaughan included Italian (85,030), Chinese (27,235), Jewish (25,325), Russian (18,245), and Indian (17,330).
  • One in four people counted during the 2021 census are or have been a landed immigrant or permanent resident of Canada

INSIGHTS and Findings

Canada and Ontario

Canada’s population continues to be a mosaic of nations, races, and religions. In 2021 450 ethnic or cultural origins were reported, top ethnic origins in Canada included English (5.7 million), Irish (4.4 million), Scottish (4.4 million), and French (4.0 million). German, Italian, Ukrainian, Chinese and Indian were each reported by 1 million people in Canada.

In 2021 450 ethnic or cultural origins were reported in Canada.

Racialized groups in Canada have all experienced growth since 2016, South Asian, Chinese and black now represent 16.1% of Canada’s total population. The portrait of racialized groups varies across the country. For example, South Asian, Chinese and black populations are the largest racialized groups in Ontario while British Columbia is home to large populations of Chinese and South Asians.

One in four people counted during the 2021 census are or have been a landed immigrant or permanent resident of Canada.

Immigration makes up the largest share of the population in over 150 years. One in four people counted during the 2021 census are or have been landed immigrants or permanent residents in Canada. Just over 1.3 million new immigrants settled permanently in Canada between 2016 to 2021, the highest number of recent immigrants recorded in a census period. Asia and the Middle East remained the top continents of birth for most recent immigrants (62%). Almost one in five recent immigrants (18.6%) were born in India, making it the leading country of birth for recent immigrants to Canada. In contrast, the share of recent immigrants from Europe has continued to decline, falling from 61.6% in 1971 to 10.1% in 2021.

City of Vaughan

The City of Vaughan is a diverse community home to more than 217 ethnic or cultural origins. The top five ethnic or cultural origins (excluding Canadian) in Vaughan included Italian (85,030), Chinese (27,235), Jewish (25,325), Russian (18,245), and Indian (17,330).

There are more than 217 reported ethnic or cultural origins in the City of Vaughan.

In 2021 13,030 people immigrated to the City of Vaughan an increase of 2,240 people since 2016. Recent immigrants in 2021 have come from the following continents, Asia (9,550), Europe (1,735), Americas (1,075), and Africa (650). The top 5 countries by place of birth for recent immigrants included China (2,395), India (1,595), Pakistan (1,010), Philippines (840) and Iran (730). Recent immigrants make up 4.03 per cent of Vaughan’s total population in 2021 a difference of 0.53 per cent when compared to York Region where recent immigrants represent 4.56 per cent of the region’s population.


2021 CENSUS RELEASE SCHEDULE

Statistics Canada will release 2021 Census topics throughout 2022. Economic Development will continue to monitor and provide Council with information on Vaughan’s growing demographics and economy.

  • November 30, 2022 – Education, labour, the language of work, commuting, and instruction in the official minority language.

Economic and Investment Snapshot – November 2022

Key Highlights

  • The Consumer Price Index (CPI) declined for a third consecutive month, dropping below seven per cent in September
  • The national unemployment rate declined slightly to 5.2 per cent in September while total size of the labour force contracted over summer months
  • Real Gross Domestic Product (GDP) increased slightly in August, rising 0.1 per cent to $2.061 trillion
  • Small Business and Entrepreneurship sees demand for consultations driven by Retail Trade, Professional, Scientific & Technical Services, and Accommodation & Food Services in October
  • Vaughan-headquartered Futurecom Systems Group acquired by Motorola Solutions
  • Vaughan-headquartered Miele Professional launches new appliance for medical instruments and devices in Canada

SELECT Economic Indicators

The Consumer Price Index (CPI) declined for a third consecutive month, dropping below seven per cent in September

The Consumer Price Index (CPI) dropped to 6.9 per cent in September, a third consecutive slowdown from a peak of 8.1 per cent in June. Ontario’s CPI also decreased, to 6.7 per cent in September. On a year-over-year basis, the prices for durable goods rose 6.7 per cent in September faster than the six per cent seen in August. The cost of purchasing a passenger vehicle was the largest contributor to this increase, up 8.4 per cent. The increase of this cost can be attributed to the ongoing shortage of semi-conductor chips which continues to impact supply chains globally.

Canadian continue to pay significantly increased costs for food in September, as prices for

food purchased from stores rose again hitting 11.4 per cent, the fastest pace since August 1981. Food purchased from stores has been increasing the fastest of all items in the CPI for ten consecutive months. Causes of these increases include higher costs of production inputs like energy and fertilizer, unpredictable weather events which are linked to climate change affecting growing conditions, and continued geopolitical instability in Ukraine and Russia.

National unemployment declined slightly in September; total size of the labour force contracted over the summer months

National unemployment declined to 5.2 per cent in September, down slightly from 5.4 per cent in August. In Ontario, unemployment increased very slightly from 5.7 per cent to 5.8 per cent, while the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – increased from 5.9 to 6.3 per cent in September. In the Toronto CMA, employment also decreased in September by 1.9 per cent or 66,000 jobs.

Youth unemployment in Ontario (aged 15 to 24) increased only slightly from 11.4 to 11.5 per cent, and the same slight increase was seen in unemployment for adult men (25 years and over) which rose from 4.5 to 4.6 per cent. Unemployment for adult women (25 years and over) in Ontario remained unchanged at 5.1 per cent.

In Ontario, the drop in workers in the manufacturing industry was most pronounced with a reduction of 2.4 per cent or 19,000 fewer workers. The size of the labour force, which includes those both employed and unemployed has been declining since May of this year, as has the participation rate.

Hourly wages for employees rose 5.2 per cent compared with the previous September, the fourth consecutive rise above five per cent. Despite the increase, the rise in wages still falls behind the rate of inflation (seven per cent for the same period), decreasing purchasing power for Canadians.

Women were more likely than men to have taken career or job-related decisions that prioritized childcare responsibilities despite record-high employment, according to the latest Labour Force Survey. New data focusing on parents with children under 16 became available in the latest Labour Force Survey, which showed that core-aged mothers with a child under 16 were twice as likely (14.9 per cent) to have decided not to apply for a job or a promotion over the previous year than their male counterparts. Similarly, mothers were nearly twice as likely to have turned down a job offer during the previous year due to childcare responsibilities, or 7.6 per cent compared with four per cent of fathers.

Real Gross Domestic Product (GDP) saw another slight monthly increase in August, edging up 0.1 per cent

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

Manufacturing had its fourth contraction in five months, edging down 0.8 per cent in August. This was led by a decrease in durable goods manufacturing. Non-durable goods manufacturing declined by 0.2 per cent in August, although food manufacturing saw a 1.5 per cent increase in the same time frame. Manufacturing accounted for $4.69 billion of economic output and employed nearly 42,000 workers in Vaughan in 2021.

Construction contracted for the fifth consecutive month, down 0.7 per cent with all subsectors experiencing declines. In 2021, the construction sector accounted for $3.94 billion of economic output and employed nearly 33,000 workers in Vaughan.


LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

Small Business and Entrepreneurship sees demand for consultations driven by Retail Trade, Professional, Scientific & Technical Services, and Accommodation & Food Services in October

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

  1. Retail Trade (29%)
  2. Professional, Scientific & Technical Services (27%)
  3. Accommodation & Food Services (23%)
  4. Other (11%)
  5. Other Services (Except Public Administration) (6%)
Vaughan-headquartered Futurecom Systems Group acquired by Motorola Solutions

Vaughan-headquartered Futurecom Systems Group, a leading provider of radio coverage extension solutions for public safety agencies, was acquired by Motorola Solutions, a global leader in public safety and enterprise security. Futurecom and Motorola have collaborated for more than thirty years on integration into Motorola’s radio networks and devices.

As both a manufacturer and wholesaler of communications solutions, Futurecom is in good company with more than 4,500 other Information and Communications Technology (ICT) in York Region, in the heart of Canada’s second-largest Tech Hub.

Vaughan-headquartered Miele Professional launches new appliance for medical instruments and devices in Canada

Vaughan-headquartered Miele, a global leader in state-of-the-art commercial-grade appliances, announced its newest solution for cleaning and disinfecting medical and surgical instruments in Canada. Miele’s PG 8582 and PG 8592 Medical Undercounter offer the ideal solution to medical instrument and device reprocessing for a range of applications, such as Ophthalmology, Ear Nose and Throat, Plastic Surgery and Obstetrics, Gynaecology and Fertility.

Miele is a player in Vaughan’s wholesale trade industry, which accounted for $2.87 billion in economic output and employed more than 14,500 workers in 2021. Vaughan’s proximity to major highways, airports, and intermodal rail and access to the complementary thriving transportation and warehousing industry make it an attractive destination of choice for wholesalers.

Economic and Investment Update – September 2022

Key Highlights

  • The Consumer Price Index (CPI) continued to decline for a second month dropping to seven per cent in August, the decline was largely driven by lower gasoline prices
  • The national unemployment rate increased for the first time in seven months, rising to 5.4 per cent
  • Real Gross Domestic Product (GDP) increased slightly in July, rising 0.1 per cent to 2.056 trillion
  • Small Business and Entrepreneurship sees demand for consultations driven by Professional, Scientific & Technical Services, Retail Trade, and Accommodation & Food Services in September
  • Vaughan-headquartered Fastfrate Group was selected as a 2022 Inbound Logistics Top 100 Trucking Company
  • Vaughan-based Teledyne Geospatial partners with Seabed 2030 to understand underwater impacts of volcanic eruption

SELECT Economic Indicators

The Consumer Price Index (CPI) continued to decline for a second month dropping to seven per cent in August, the decline was largely driven by lower gasoline prices

The Consumer Price Index (CPI) dropped to seven per cent in August, a second consecutive slowdown from a peak of 8.1 per cent in June. Ontario’s CPI also decreased, to 6.9 per cent in August.

Transportation and shelter costs drove down consumer prices in August, which still saw increases of 10.3 per cent and 6.6 per cent.

Food prices for food purchased from stores rose in August to 10.8 per cent, the fastest pace since August 1981.

The national unemployment rate rose for the first time in seven months in August, up 0.5 percentage points

National unemployment increased in August for the first time in seven months, up 0.5 per cent from July where the rate was the lowest since data became available in 1976. In Ontario, unemployment increased slightly from 5.3 per cent to 5.7 per cent, while the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – rose slightly to 5.9 per cent in August.

Youth unemployment in Ontario (aged 15 to 24) increased slightly from 10.7 to 11.4 per cent, while unemployment increased by 0.2 per cent for adult women (25 years and over) in Ontario to 5.1 per cent and by 0.6 per cent to 4.5 per cent for adult men (25 years and over).

Employers will continue to face labour challenges as more workers approach retirement age. Occupations related to transportation and manufacturing had some of the oldest age profiles in August. Specifically, workers in transport and heavy equipment operation, assemblers in manufacturing and processing and manufacturing machine operators had some of the lowest ratios of younger workers to older workers. In Vaughan, transportation accounted for $1.16 billion in economic output and employed more than 15,500 workers in 2021, while manufacturing employed nearly 42,000 workers and accounted for $4.69 billion in economic output for the same time period.

Hourly wages for employees rose 5.4 per cent compared with the previous year in August, slightly above the rate of increase seen in July. Despite the increase, the rise in wages still falls behind the rate of inflation, decreasing purchasing power for Canadians.

In the August Labour Force Survey, the number of Canadians considering a job change in the next 12 months is on the rise. Compared to when this question was asked in January 2022, this number has doubled to 11.9 per cent; when looking only at the bottom 20 per cent of earners, that number jumped to nearly one in five.

Real Gross Domestic Product (GDP) increased in May

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

Manufacturing contracted in 0.5 per cent in July, the third decline in this industry in four months, led by a decrease in durable goods manufacturing. Non-durable goods manufacturing saw its first increase since March of this year, rising 0.7 per cent, although food manufacturing saw a 1.8 per cent decrease.

Wholesale trade and retail trade both contracted in July. Wholesale trade was down for the fifth time within a six-month period, decreasing by 0.7 per cent in July. This was due to a decrease in personal in household goods wholesaling in large part from reduced textile, clothing and footwear wholesaling, as well as a significant decline in building materials and supplies wholesaling. Retail trade dropped by 1.9 per cent in July, the lowest level since December 2021, as gas and food and beverage store purchases decreased.

Wholesale trade accounted for $2.87 billion in economic output and employed 14,500 workers, while retail trade account for $1.7 billion in economic output and employed 35,900 workers in Vaughan in 2021.


LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

Small Business and Entrepreneurship sees demand for consultations driven by Professional, Scientific & Technical Services, Retail Trade, and Accommodation & Food Services in September

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

  1. Professional, Scientific & Technical Services (29%)
  2. Retail Trade (27%)
  3. Professional, Scientific & Technical Services (23%)
  4. Other (11%)
  5. Other Services (Except Public Administration) (6%)
Vaughan-headquartered Fastfrate Group selected as a 2022 Inbound Logistics Top 100 Trucker

Vaughan-headquartered Fastfrate Group, a Canadian leader in providing transportation and logistics services, was selected as one of the 2022 Top 100 Truckers by Inbound Logistics.

Fastfrate Group is comprised of seven companies and 40 locations operating across Canada and the United States which provide end-to-end supply chain solutions.

Vaughan is home to a thriving transportation and warehousing sector, which accounted for $1.16 billion in economic output and employed more than 15,500 workers in 2021.

Vaughan-based Teledyne Geospatial partners with Seabed 2030 to understand underwater impacts of volcanic eruption

Vaughan-based Teledyne Geospatial, a leading developer of hydrographic and marine GIS software, partnered with Seabed 2030 to discover the undersea impacts of the Hunga-Tonga Hunga-Ha’apai (HT–HH) volcanic eruption, which produced the biggest atmospheric explosion recorded on Earth in over a century.

Vaughan is at the heart of York Region’s innovation economy, linking Cortellucci Vaughan Hospital (Canada’s first smart hospital) and the Vaughan Metropolitan Centre (VMC) to Toronto’s renowned research hospitals and some of Canada’s top universities. Vaughan’s technology sector is home to other leading companies such as Mircom, Soroc Technology, SCIEX, Digital Realty, Wirecomm Systems and others.

2021 Census Insights and Findings – Housing Characteristics

Key highlights

  • In 2021 there were 103,915 private households in the City of Vaughan: 89,290 households were owned while 14,620 were rented.
  • Since 2016 the number of owned households in Vaughan increased 6 per cent from 84,490 households to 89,290, and renter households during the same period increased 50 per cent from 9,725 households to 14,620.
  • Between 2016 and 2021 the average value of residential dwellings in Vaughan increased 44 per cent from $893,065 to $1,282,000.
  • In 2021 18,835 occupied dwellings were condominiums. This represents an increase of 41 per cent over 2016 when 13,295 dwellings were condominiums.
  • Since its peak in 2011, the Canadian homeownership rate has declined by 2.5 per cent to 66.5 per cent.
  • Built dwellings in Canada are increasingly more likely to be occupied by renters, with 40 per cent of housing built between 2016 and 2021 now being tenant occupied.

INSIGHTS and Findings

Canada/Ontario

The Canadian housing market has experienced significant changes over the past decade that have led to increased discussions surrounding housing accessibility and affordability.

Since 2011 the proportion of Canadians who own their homes (or the homeownership rate) has been on the decline.

Since its peak in 2011, the Canadian homeownership rate has declined 2.5 percent to 66.5 per cent. This decline can be attributed to several factors and is most prominently connected to the densification of large urban centers.

Built dwellings, which are predominately located within large urban centers. are increasingly more likely to be occupied by renters, with 40 per cent of housing built between 2016 and 2021 now being tenant occupied.

The growth in renter households (+21.5 per cent) was more than double the growth in owner households (+8.5 per cent) from 2011 to 2021. Additionally, shares of people living alone or with roommates have risen. Those who live alone or without roommates are less likely to own their own than other households such as couples with or without children.

In Canadian metropolitan areas, the rising trend of condominium construction continues, with the share of occupied dwellings in condos increasing from 13.3 per cent in 2016 to 15 per cent in 2021.

Most of these condominium construction projects (90 per cent) are located in Canada’s largest metropolitan areas Toronto, Vancouver and Montreal.

City of Vaughan

In 2021 there were 103,915 private households in the City of Vaughan, 89,290 households owned their homes while 14,620 rented. Between 2016 and 2021 the number of renters within Vaughan increased 50 per cent from 9,725 (2016) to 14,620 (2021)

Owned dwellings in the City of Vaughan experienced a significant increase in value since the last census.

In 2021 the average value of dwellings increased 44 per cent from $893,065 in 2016 to $1,282,000 in 2021. Of owned dwellings, 59.6 per cent still had a mortgage, and 24.3 per cent were spending more than 30 per cent of their income on shelter costs. Average monthly shelter costs for homeowners in Vaughan increased 16 per cent from $1,908 in 2016 to $2,214 in 2021. In 2021 renters on average spent $2,048 on shelter costs an increase of 29 per cent or $461 since 2016. Additionally, 50.4 per cent of renters spent more than 30% of their income on shelter-related expenses.

Vaughan is a city on the rise – apartment buildings with five or more storeys accounted for 13 per cent of total occupied dwellings within the city, totalling 13,750 dwellings.

The number of dwellings in apartment buildings with five or more storeys increased by 40 per cent, adding 3,945 dwellings. In 2021 18,835 occupied dwellings were in condominiums an increase of 41 per cent from 13,295 condominium dwellings in 2016.

In 2021 the City of Richmond Hill had the highest average dwelling price at $1,344,000, the City of Vaughan was the second most expensive community for housing in York Region with an average dwelling price of $1,282,000.

Table 1 below highlights the average dwelling and shelter costs of major York Region cities, the City of Toronto, and the Province of Ontario between 2016 and 2021.


DEFINITIONS

Shelter costs refer to the average monthly total of all shelter expenses paid by households. Shelter costs for owner households include where applicable mortgage payments property taxes and condominium fees along with the costs of electricity heat water and other municipal services. For renter households, shelter costs include where applicable the rent and the costs of electricity heat water and other municipal services.


2021 CENSUS RELEASE SCHEDULE

Statistics Canada will release 2021 Census topics throughout 2022. Economic Development will continue to monitor and provide Council with information on Vaughan’s growing demographics and economy.

  • 26, 2022 – Immigration, place of birth, and citizenship; ethnocultural and religious diversity; mobility and migration
  • 30, 2022 – Education, labour, the language of work, commuting, and instruction in the official minority language

Economic and Investment Update – August 2022

Key Highlights

  • The Consumer Price Index (CPI) rose by 7.6 per cent in July, down from the 8.1 per cent increase seen in June
  • The Conference Board of Canada’s Consumer Confidence Index increased for the first time in three months by 2.3 points, rising to 75.1 in August
  • National unemployment rate maintains a record low of 4.9 per cent in July
  • Real Gross Domestic Product (GDP) increases slightly in June, rising 0.1 per cent
  • Small Business and Entrepreneurship sees demand for consultations driven by Professional, Scientific & Technical Services, Retail Trade, and Accommodation & Food Services in August
  • Vaughan-headquartered SpaceRyde’s profile continues to grow following its grand opening in June
  • Trillium Network for Advanced Manufacturing highlights Vaughan-based Prodevco Robotic Solutions

SELECT Economic Indicators

The Consumer Price Index (CPI) rose by 7.6 per cent in July, down from the 8.1 per cent increase seen in June

The Consumer Price Index (CPI) increased by 7.6 per cent in July, a drop from the 8.1 per cent year-over-year basis in June. Ontario’s CPI also increased by 7.6 per cent in July. Gasoline prices dropped 9.2 per cent from June to July but remained 35.6 per cent more than prices paid in July 2021. Ontario drove price increases for natural gas, which saw an increase of 45.3 per cent year-over-year for the same period following the Ontario Energy Board’s approval of rate increases which came into effect at the beginning of July.

Food prices increase more from the previous year in July than in June with an increase of 9.9 per cent, in part due to elevated prices for wheat.

The Conference Board of Canada’s Consumer Confidence Index increased for the first time in three months by 2.3 points, rising to 75.1 in August

The Conference Board of Canada’s Consumer Confidence Index rose to 75.1 in August, indicating that worry over future finances was relieved slightly, likely due to falling fuel prices. However, the prevailing sentiment by consumers remains pessimistic. Pessimism over current finances increased to 33.5 per cent. The index also indicated that Canadians have become less confident about the availability of future jobs, with only 16.8 per cent of Canadians optimistic there will be more job opportunities available in six months – the lowest this indicator has been in 18 months.

As an economic indicator, consumer confidence offers a signal of future households’ spending and saving. The Conference Board of Canada’s Consumer Confidence Index is based on a survey of Canadian households, measuring their optimism about the economy’s health. It is important to note that consumer confidence is often seen as a lagging indicator, as survey results may be largely covered by what has already happened in the economy.

National unemployment rate maintains a record low of 4.9 per cent in July

National unemployment maintains a record low of 4.9 per cent in July, the lowest level since data became available in 1976. In Ontario, unemployment increased slightly from 5.1 per cent to 5.3 per cent, while the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – dropped for the first time since May to 5.7 per cent.

Youth unemployment in Ontario (aged 15 to 24) increase slightly to 10.7 per cent, while unemployment increased by 0.6 per cent for adult women (25 years and over) in Ontario to 4.9 per cent and decreased to 3.9 per cent for adult men (25 years and over).

Ontario saw a fall in employment of 0.4 per cent in July, losing 27,000 jobs. Noteworthy employment losses in the province included wholesale and retail trade and educational services in July. Employment rose in both manufacturing and finance, insurance, real estate, rental and leasing.

Hourly wages for employees rose 5.2 per cent compared with the previous year in July, the same rate of increase seen in June. Despite the increase, the rise in wages still falls behind the rate of inflation, decreasing purchasing power for Canadians.

Workers who spent most of their work hours at home increased slightly in July to nearly 1 in 4 Canadians (24.2 per cent).

Real Gross Domestic Product (GDP) remained unchanged in May

Real Gross Domestic Product (GDP), which measures the inflation-adjusted value of goods and services produced in the economy, increased by 0.1 per cent in June. This increase closes the second quarter of 2022, where the economy expanded by a modest 0.8 per cent as measured by economic output. The quarter’s increase of 1 per cent represents the fourth consecutive quarterly increase of real GDP.

The increase of interest rates caused by the Bank of Canada saw decreases in output for finance and insurance, construction, and real estate and rental and leasing industries.

Client-facing industries increased output in June following the easing of borders as well as the reduction of public health measures. This included the suspension of vaccine mandates for passengers traveling within Canada, the pausing of random testing for fully vaccinated international travelers, and in Ontario, the masking requirements were dropped in high-risk settings in June. Both the accommodation and food services and the arts, entertainment and recreation industries increased in June, with both sectors rising 1.8 per cent.

Transportation and warehousing increased for the fifth consecutive month, up 0.1 per cent in June, In Vaughan, transportation accounted for $1.16 billion in economic output and employed more than 15,500 workers in 2021.


LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

Small Business and Entrepreneurship sees demand for consultations driven by Accommodation & Food Services, Retail Trade, and Professional, Scientific & Technical Services in August

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

  1. Accommodation & Food Services (33%)
  2. Retail Trade (31%)
  3. Professional, Scientific & Technical Services (12%)
  4. Information & Cultural Industries (6%)
  5. Other Services (Except Public Administration) (6%)
Vaughan-headquartered SpaceRyde’s profile continues to grow following its grand opening in June

Vaughan-headquartered Spaceryde, Canada’s first private rocket company and the first company to offer affordable taxi rides for satellites and cargo to space, continues to be profiled following their grand opening in June.

Vaughan’s aerospace and aviation cluster employs more than 600 people within the City, and includes companies such as Merco Industries Ltd., Norcanco Inc.,    Discovery Precision Machining Inc., and Dishon Ltd.

Trillium Network for Advanced Manufacturing highlights Vaughan-based Prodevco Robotic Solutions

Economic Development has partnered with the Trillium Network for Advanced Manufacturing to promote Vaughan’s manufacturing industry by profiling local companies. Trillium is a provincially-funded non-profit organization dedicated to raising awareness of Ontario’s advanced manufacturing ecosystem.

The follwing profile was recently completed:

Previously shared:

2021 Census Insights and Findings – Language Characteristics

Key highlights

  • Vaughan is home to 113 unique foreign languages, an increase of eight languages from the 105 reported languages in 2016
  • The most predominant foreign languages understood by Vaughan residents include, in order of most to least understood, Italian, Russian, Mandarin and Hebrew and Spanish.
  • 85,960 Vaughan residents use a non-official language most often at home this represents 27 per cent of Vaughan’s population.
  • 6 million Canadians spoke a language other than English or French at home representing 13 per cent of Canada’s population.

INSIGHTS and Findings

Canada and Ontario

English and French continue to be the most commonly spoken languages in Canada. Nine out of ten Canadians speak one of the two official languages on a regular basis at home. However, the country’s linguistic diversity is continuing to grow with 4.6 million Canadians speaking a language other than English or French at home representing 13 per cent of our population. When considering all languages 59 per cent of Canadians can converse in one language, 32 per cent are bilingual, 8 per cent trilingual, and 1.5 per cent can converse in four or more languages. Since 2016 a decline was seen in the number of Canadians who spoke predominantly European languages such as Italian, Polish and Greek while Canadians who spoke a South Asian language such as Gujarati, Punjabi, Hindi, or Malayalam grew significantly since 2016. Mandarin and Punjabi remain the two languages other than English and French spoken most often at home.

City of Vaughan

Vaughan continues to be a multicultural community. By “knowledge of language” there are 113 unique languages spoken within the city in 2021, an increase of eight languages since 2016. The most predominant foreign languages understood by Vaughan residents are included below.

  1. Italian – 48,885
  2. Russian – 24,160
  3. Mandarin – 17,645
  4. Hebrew – 14,065
  5. Spanish – 12,675

By languages spoken most often at home 85,960 Vaughan residents indicated they spoke a language other than English or French. When compared nationally 27 per cent of Vaughan’s population speak a non-official language spoken most at home compared to only 13 per cent of the country’s population that speaks a non-official language at home. The top five non-official languages spoken most often at home are included below.

  1. Russian – 12,650
  2. Italian – 10,920
  3. Mandarin – 10,115
  4. Cantonese – 4,705
  5. Spanish  – 4,330

2021 CENSUS RELEASE SCHEDULE

Statistics Canada will release 2021 Census topics throughout 2022. Economic Development will continue to monitor and provide Council with information on Vaughan’s growing demographics and economy.

  • 21, 2022 – Indigenous peoples and housing
  • 26, 2022 – Immigration, place of birth, and citizenship; ethnocultural and religious diversity; mobility and migration
  • 30, 2022 – Education, labour, the language of work, commuting, and instruction in the official minority language

Economic and Investment Update – July 2022

Key Highlights

  • The Consumer Price Index (CPI) continues on a 39-year high, rising to 8.1 per cent in June
  • Bank of Canada raises the policy rate by 100 basis points – the largest increase since 1998
  • National unemployment rate hits another record low, falling to 4.9 per cent in June
  • Real Gross Domestic Product (GDP) remains unchanged in May
  • Small Business and Entrepreneurship sees demand for consultations driven by Professional, Scientific & Technical Services, Retail Trade, and Accommodation & Food Services in June
  • Vaughan-headquartered Bausch + Lomb announces two new collaborations with foreign-based companies to expand services offerings

SELECT Economic Indicators

The Consumer Price Index (CPI) maintains a 39-year high, climbing to 8.1 per cent in June

The Consumer Price Index (CPI) reached 8.1 per cent in June, up from a 7.7 per cent year-over-year basis in May. In Ontario, prices increased 7.9 per cent over the same period last year in June, rising at a faster pace than seen in May and June.

Gasoline prices were the largest driver of inflation over this period – consumers were hit with a 6.2 per cent month-over-month increase in the cost of fuel, which was 54.6 per cent higher than June 2021.

Bank of Canada raises the policy rate by 100 basis points – the largest increase since 1998

The Bank of Canada increased its target for the overnight rate in July to 2.5 per cent,  up by 100 points and the largest single increase since 1998. This increase continues the policy of tightening which began in April, and the Bank of Canada anticipates that interest rates will need to rise further given the rate of economic growth in the country and the persistent levels of inflation.

The Bank also indicated their forecast and are expecting Canada’s economy to grow by 3.5 per cent in 2022, 1.75 per cent in 2023, and 2.5 per cent in 2024. The policy of tightening of monetary conditions combined with fewer supply disruptions should help decrease the rate of inflation. The Bank’s July outlook has inflation easing to about 3 per cent by the end of 2023 and returning to the 2 per cent target by the end of 2024.

National unemployment rate hits another record low, falling to 4.9 per cent in June

National unemployment reaches a new low of 4.9 per cent in June, the lowest level since data became available in 1976. In Ontario, unemployment also dropped from 5.5 per cent to 5.1 per cent, while the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – remained at the same unemployment rate as May, staying at 6 per cent.

Youth unemployment in Ontario (aged 15 to 24) highest decreased to 10.5 per cent, while unemployment dropped 0.3 per cent for adult women (25 years and over) in Ontario to 4.3 per cent, and 0.2 per cent for adult men, decreasing to 4.2 per cent.

Employment in service-producing sectors declined by 0.5 per cent in June, with the largest decline seen in retail trade – dropping 2.5 per cent in one month. Whether this trend continues amidst lower consumer confidence and decreased spending power will be revealed in the coming months. The goods-producing sector saw employment increases, rising 0.8 per cent in June. Manufacturing employment grew in June, increasing 1.5 per cent, up 2.2 per cent compared to the same month last year. Construction employment also grew in June, with Ontario accounting for nearly all of the increase – up 3.3 per cent over the previous month in Ontario. Compared with the same period last year, construction employment has grown by 8 per cent, a faster pace than most industries.

Hourly wages for employees rose 5.2 per cent compared with the previous year in June, which was a higher increase than the 3.9 per cent seen in May. Despite the increase, the rise in wages still falls behind the rate of inflation, decreasing purchasing power for Canadians.

Workers who work all their hours at home dropped slightly in June, from 19.2 per cent to 17.9 per cent. However, changes to work location in summer months may be affected by jobs in tourism and hospitality industries, where fewer workers are able to complete work at home.

Real Gross Domestic Product (GDP) remained unchanged in May

Real Gross Domestic Product (GDP), which measures the inflation-adjusted value of goods and services produced in the economy, remained unchanged in May. This zero per cent change comes after ten consecutive months of growth as measured by economic output.

Growth of 0.4 per cent in services-producing industries was offset by a 1 per cent decline in goods-producing industries.

Transportation and warehousing increased for the fourth consecutive month, up 1.9 per cent in May, but lags significantly (by 7 per cent) behind pre-pandemic levels. In Vaughan, transportation accounted for $1.16 billion in economic output and employed more than 15,500 workers in 2021.

Manufacturing declined in May after seven months of increases, falling by 1.7 per cent. The construction sector also dropped for the second month, decreasing 1.6 per cent in May. This coincides with the strikes seen in Ontario in the construction industry in the month of May, which saw delays in many projects across the province. Construction and manufacturing are two of the largest industries in Vaughan by both economic output and employment – they accounted for nearly 75,000 jobs and $8.6 billion in real GDP for the City.


LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

Small Business and Entrepreneurship sees demand for consultations driven by Accommodation & Food Services, Retail Trade, and Professional, Scientific & Technical Services in July

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

  1. Accommodation & Food Services (28%)
  2. Retail Trade (24%)
  3. Professional, Scientific & Technical Services (17%)
  4. Other (12%)
  5. Other Services (Except Public Administration) (8%)
Vaughan-headquartered Bausch + Lomb announces two new collaborations with foreign-based companies to expand services offerings

Vaughan-headquartered Bausch + Lomb, a leading global eye health company, in partnership with Novaliq GmbH, a German biopharmaceutical company focused on ocular therapeutics, announced in July the submission of a new drug in June to the U.S. Food and Drug Administration for a treatment developed that may treat the signs and symptoms of dry eye disease. Also in July, Bausch + Lomb announced a strategic agreement with Israeli ophthalmic medical device start-up Sanoculis to enter into an exclusive European distribution agreement for a minimally invasive surgical procedure to treat glaucoma.

Vaughan is located in a growing life science and health tech cluster of more than 350 companies in York Region, and the City is home to other global and Canadian industry leaders such as AB Sciex, Cardinal Health, Toronto Research Chemicals (TRC), a division of LGC Group, and Sterling Industries.

2021 Census Insights and Findings – Income Profiles

Key highlights

  • Vaughan’s household after-tax income is 20 per cent higher than the average after-tax income for the Province of Ontario and is 9 per cent higher than York Region.
  • Vaughan’s household average after-tax household income for one-person homes increased 8 per cent since 2015 to $56,250 in 2020.
  • Vaughan’s household average after-tax income for households with two or more people increased 17 per cent since 2015 to $134,800 in 2020.
  • Canadian household average after-tax income grew 15 per cent since 2015 to $87,700 in 2020.

INSIGHTS and Findings

Canada and Ontario

The COVID-19 pandemic resulted in over two-thirds of Canadian adults receiving income from one or more pandemic relief programs. Benefits from COVID-19 relief programs offset losses in employment income, primarily among low-wage earners. From 2015 to 2020, income inequality fell in all provinces and territories, with Alberta recording the largest decline. Specifically, families with children saw faster growth in after-tax income than other family types due to increased government transfers. Nationally, the average after-tax income for households was $87,700 – an increase of 15 per cent since 2015. The median after-tax income in Canada for households was $73,000 – an increase of 9.8 per cent since 2015.

In Toronto, median after-tax income was $85,000 in 2020 – up 14.1 per cent from 2015, Vancouver’s median after-tax income of $79,500 increased 16.1 per cent in 2020 and Montreal’s median after-tax income increased 12.9 per cent to $65,000 in 2020. However, in large urban centres’ downtown cores, median after-tax incomes were generally lower, reflecting the presence of populations with lower levels of income, such as students and immigrants. In these downtown cores, the median after-tax income was $53,600 in 2020 compared to $75,000 in large urban centres overall.

Low-income rates across Canada saw the largest decline from 2015-2020. Overall, 11.1 per cent of Canadians were in a low-income situation in 2020 – down from 14.4 per cent in 2015.

York Region

In York Region, the average after-tax income of one-person households was $51,300 in 2020 – an increase of 11 per cent or $5,120 since 2015. For households with two or more people, the average after-tax income in 2020 was $125,200 – an increase of 16 per cent or $17,279 since 2015. The average after-tax income for an individual within York Region was $59,050 in 2020 – an increase of 16 per cent since 2015.

City of Vaughan

Since 2015, household income in Vaughan has experienced significant growth. The average after-tax income for one-person households in 2020 increased 8 per cent since 2015 to $56,250. For households with two or more people, the average after-tax income increased 17 per cent since 2015 to $134,800. The average after-tax income for an individual within the city of Vaughan was $49,840 in 2020 – an increase of 16 per cent or $6,971 since 2015. Thirty-five per cent or 55,805 households earned more than 100,000 in 2020 – an increase of 34 per cent or 14,230 households since 2015.

When compared to the Province of Ontario, Vaughan’s average after-tax household income is $22,300 or 20 per cent higher than the average after-tax income of Ontario households. Compared to York Region, Vaughan’s average after-tax household income is 9 per cent or $9,900 more than the average after-tax household income of York Region households.

Economic and Investment Update – June 2022

Key Highlights

  • The Consumer Price Index (CPI) reaches a 39-year high, climbing to 7.7 per cent in May
  • Nearly three in four Canadians report that increased prices are affecting their ability to meet day-to-day expenses
  • National unemployment rate drops to a new record low at 5.1 per cent
  • Real Gross Domestic Product (GDP) slows in April, increasing 0.3 per cent
  • Small Business and Entrepreneurship sees demand for consultations driven by Professional, Scientific & Technical Services, Retail Trade, and Accommodation & Food Services in June
  • Vaughan-based Quality Cheese Inc. receives federal investment to increase production, resulting in the addition of 25 full-time jobs
  • Vaughan-headquartered PSP Services Inc. partners with Gratify Pay to integrate Buy Now Pay Later service enhancing in-store and e-commerce solutions

SELECT Economic Indicators

The Consumer Price Index (CPI) reaches a 39-year high, climbing to 7.7 per cent in May

The Consumer Price Index (CPI) rose 7.7 per cent in May, up from a 6.8 per cent year-over-year basis in April. In Ontario, prices increased 7.8 per cent over the same period last year in May, rising at a faster pace than seen in April and March.

Gasoline prices were the largest driver of inflation over this period – consumers were hit with a 12 per cent month-over-month increase in the cost of fuel, which was 48 per cent higher than May 2021. Grocery prices continue to rise, with Canadians paying 9.7 per cent more in May for food purchased from stores compared to the same period last year. This marks the fifth month in a row of increases exceeding 5 per cent, still at the largest increase since September 1981. From 2010 to 2020, there were only five months in the decade where groceries increased by 5 per cent or higher. Rent prices continue to rise nationally, increasing 4.5 per cent in May – the same increase April – compared to the same period the previous year.

Growth continued year-over-year in prices for services, increasing to 5.2 per cent nationally in May following a 4.6 per cent gain in April. As a result of the easing of public health measures, Canadians are seeking out leisure activities. Higher year-over-year prices for traveller accommodations were most notable in Ontario, rising 56.8 per cent – a strong indicator of increased demand.

Inflation remains a concern across the country as Canadians struggle with the rising cost of living. A survey completed between April 19 and May 1 by Statistics Canada indicated that nearly three in four Canadians reported that rising prices are affecting their ability to meet day-to-day expenses such as transportation, housing, food, and clothing. As a result, many Canadians are changing their behaviour due to this new reality, including adjusting their spending habits and delaying the purchase of a home or moving to a new rental.

Average hourly wages for employees rose 3.9 per cent on a year-over-year basis in May, reflecting that on average, Canadians continue to experience a decline in purchasing power as prices rose faster than wages.

More than half of businesses surveyed (55.2 per cent) in the second quarter of 2022 anticipate inflation to be an issue when discussing wage increases with employees over the next 12 months – including over three-quarters of businesses in accommodation and food services – according to the Canadian Survey on Business Conditions. In early 2022, more than 4 in 10 businesses (44.9 per cent) indicated that they plan to increase wages for existing employees over the next 12 months.

National unemployment rate drops to a new record low at 5.1 per cent

National unemployment reaches a new low of 5.1 per cent in May, the lowest level since data became available in 1976. In Ontario, unemployment remained largely unchanged at 5.5 per cent, while the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – maintained a higher unemployment rate than both Canada and Ontario, decreasing from the previous month to 6 per cent.

Unemployment rose slightly in Ontario in May, with youth unemployment (aged 15 to 24) highest, rising to 11.4 per cent. Unemployment dropped 0.3 percent for adult women (25 years and over) in Ontario to 4.6 per cent, rising slightly for adult men from 4.1 per cent to 4.4 per cent.

Employment in service-producing sectors rose slightly by a half per cent in May, while dropping by one per cent in goods-producing sectors in the same period. Manufacturing employment across the country declined by 2.4 per cent, erasing the gains seen in this sector over the fall. Ontario saw a monthly decline of 2 per cent in May in manufacturing employment, although overall employment remained steady for the month.

The participation rate, which measures the total labour force relative to the size of the working-age population, rose slightly remaining at an all-time high for core-aged women (85 per cent) and sat 0.4 per cent below the record in March 2022 for core-aged men, sitting at 91.9 per cent in May. With a large number of Canadians approaching retirement, the labour force participation rate among older adults (aged 55 to 64 years old) will be an important indicator of labour supply, particularly in the context of high unmet demand. The participation was little changed for women in this older age cohort in May at 60.4 per cent, it fell a full percentage point to 71.9 per cent for men in the same age group.

Largely unchanged from April to May, nearly one in five employed Canadians (19.2 per cent) indicated that they usually work exclusively from home, and hybrid work arrangements continue to increase. In May, 27.9 per cent of employees said they were able to choose their work location at least some of the time, which includes 13.9 per cent who said they were able to choose all of the time.

Real Gross Domestic Product (GDP) slows in May, increasing 0.3 per cent in April

Real Gross Domestic Product (GDP), which measures the inflation-adjusted value of goods and services produced in the economy, expanded by 0.3 per cent in April. This represents the tenth consecutive month of growth as measured by economic output, although this represents a smaller expansion than March which saw a 0.7 per cent increase.

Manufacturing continued to rise in April for the seventh consecutive month, increasing by 0.3 per cent and surpassing pre-pandemic levels of activity. The construction sector remained unchanged from March, while transportation and warehousing rose 2.2 per cent for the third consecutive month. Retail trade expanded by 0.9 per cent in April, which offset the previous two months of declines.

Tourism-related industries saw continued increases in real GDP in April, with accommodations and food services expanding by a more modest 4.6 per cent following a 10.9 per cent increase in March. Despite the increase of 7 per cent in April in the arts, entertainment, and recreation industries, they remain 12 per cent below pre-pandemic levels.


LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

Small Business and Entrepreneurship sees demand for consultations driven by Professional, Scientific & Technical Services, Retail Trade, and Accommodation & Food Services in April

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

  1. Professional, Scientific & Technical Services (25%)
  2. Retail Trade (22%)
  3. Accommodation & Food Services (12%)
  4. Arts, Entertainment & Recreation (10%)
  5. Other (9%)
Vaughan-based Quality Cheese Inc. receives federal investment to increase production, resulting in the addition of 25 full-time jobs

Able Innovations secures a total of $7.5 million in funding Announced in June, Vaughan-headquartered Quality Cheese Inc. received an investment of up to $2,038,092 through the federal Dairy Processing Investment Fund, which will result in the addition of 25 full-time positions, bringing total employment to 108 for the company. Quality Cheese uses cow, goat and buffalo milk to make award-winning Italian specialty cheeses and cheese products for the North American market and has three facilities in Vaughan.

The investment allows Quality Cheese to meet the growing demand for its products via the introduction of new production lines, cheese cutting, conditioning, and ripening equipment, and packaging and storage hardware. The $100-million Dairy Processing Investment Fund was created to help Canadian dairy processors modernize their businesses and improve their productivity and competitiveness. The fund has supported dairy processors in adapting to market changes resulting from the implementation of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).

York Region is the fourth-largest food and beverage processing hub in Canada which sees more than $2.7 billion in annual GDP within its agriculture and agri-food sectors. with Vaughan home to more than half of the 270 food and beverage manufacturers and processors in the Region.

As part of its business advisory services, Economic Development can provide guidance on government funding opportunities you may be eligible for to help you expand or modernize your business. To take advantage of this complimentary service, businesses can connect with ed@vaughan.ca.

Vaughan-headquartered PSP Services Inc. partners with Gratify Pay to integrate Buy Now Pay Later service enhancing in-store and e-commerce solutions

Vaughan-headquartered PSP Services Inc. partnered with Gratify Pay  to offer fully integrated solution for in-store and e-commerce shopping. This builds on their recent expansion in the acquisition of Payment Services Interactive Gateway Inc. (PSiGate) further deliver on mobile and ecommerce solutions for merchant through PSiGate’s proprietary gateway. PSP Services Inc. is one of the country’s largest bank-independent payment processors and a leader in payment systems, processing, and integrations, offering centralized, data-rich and multi-channel insights for businesses to optimize operations.

York Region is home to Ontario’s second-largest Finance and Professional Services Industry Cluster, with more than 6,500 businesses employing more than 75,000 workers – this included more than 50 fintech companies.

Vaughan’s Finance, Insurance and Real Estate accounted for $5 billion in local economic output as measured by real GDP and employed nearly 21,500 workers in 2021 and was home to 640 firms in the Finance and Insurance sector.