Vaughan Economic and Business Update- April 2024

Highlights

  • The Consumer Price Index rose 2.8 per cent year-over-year nationally in February following a 2.9 per cent increase in January.
  • The national unemployment rate in March reached 6.1 per cent, up 0.3 per cent from the previous month and one per cent on a year-over-year basis.
  • Canada’s Real Gross Domestic Product (GDP) increased by 0.6 per cent in January.
  • The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in other services, retail trade, accommodation, and food services in March.
  • The latest provincial budget announced Vaughan will be home to a York University medical school set to open in 2028.
  • Menkes Developments Ltd. and QuadReal Property Group break ground on a three-tower community in the VMC.
  • Vaughan-headquartered Martinrea International recently announced the launch of a new software company MiNDCAN.

SELECT Economic Indicators

The Consumer Price Index rose 2.8 per cent year-over-year in February following a 2.9 per cent increase in January.

The Consumer Price Index (CPI) rose 2.8 per cent year-over-year in February nationally following a 2.9 per cent increase in January. In Ontario, the CPI rose 2.4 per cent year-over-year in February after a 2.7 per cent year-over-year increase in January.

Cellular and internet services cost Canadians less in February. The cost of cellular plans was down 26.5 per cent year-over-year, following a 16.4 percent decline in January. These price declines were driven by special offers, and new plans provided by cellular and internet service providers.

Prices for food purchased from stores continues to ease on a year over-year basis, rising 2.4 per cent in February compared to 3.4 per cent increase in January. Slower price growth was broad based with preserved fruit, cereal products and dairy products decelerating in February.

The national unemployment rate in March reached 6.1 per cent, up 0.3 per cent from the previous month and one per cent on a year-over-year basis.

National employment experienced little change in March with the employment rate falling 0.1 per cent to 61.4 per cent. The national unemployment rate increased 0.3 per cent in March to 6.1 per cent. In March there were fewer people employed in accommodation and food services, wholesale, and retail trade, and professional scientific and technical services. Employment gains were noted across healthcare and social assistance, construction and finance, insurance, real estate and rental leasing.

From March 2023 to March 2024 the employment rate has decreased 0.9 percentage points, as employment growth (+324,000) has been outpaced by growth in population (+1.0 million). In March Statistics Canada reported that Canadas population has increased at an annual rate of 3.2 per cent as of January 2024 the fastest annual growth rate since 1957.

In March youth unemployment rose 1.0 per cent to 12.6 per cent. The youth unemployment rate in March 2024 was the highest since 2020. On a year over year basis the unemployment rate was up for both young men (+3.3 per cent) and young women (+2.9 per cent).

Ontario’s unemployment rate increased 0.2 per cent in December to 6.7 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – increased 0.4 per cent to 7.5 per cent.

Average hourly wages among employees rose 5.1 per cent (+$1.69 to $34.81) on a year-over-year basis in March, following growth of 5.0 per cent in February (not seasonally adjusted).

Real Gross Domestic Product (GDP) increased by 0.6 per cent in January.

Real Gross Domestic Product (GDP) increased nationally by 0.6 per cent in January. Growth in January was broad based with 18 of 20 sectors increasing in January. Goods-producing industries contracted 0.2 per cent in January with the utilities, and manufacturing sectors rebounding from declines in previous months.

The public sector (consisting of educational services, healthcare and social assistance and public administration) increased 1.9 per cent In January, rebounding from two previous months of declines.

The manufacturing sector has fully recouped December’s decline with a 0.9 per cent increase in January. Durable goods manufacturing contributed the most to the increase in January, which was largely a result of an increase in the transportation equipment manufacturing subsector. Following four months of declines, the motor vehicle manufacturing sector increased 4.9 per cent in January as production resumed at auto assembly plants following retooling shutdowns.

Advance information indicates that real GDP rose 0.4 per cent in February. Broad-based increases, with main contributions from mining, quarrying, and oil and gas extraction, manufacturing, and finance and insurance, were partially offset by decreases in utilities.

LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in other services, retail trade, accommodation, and food services in March.

Economic Developments Small Business and Entrepreneurship top five industries seeking consultations in March were:

  1. Other services (33 per cent)
  2. Retail trade (20 per cent)
  3. Accommodation and food services (16 per cent)
  4. Professional technical and scientific services (10 per cent)
  5. Health care and social assistance (5 per cent)
The latest provincial budget announced Vaughan will be home to a York University medical school set to open in 2028.

The province announced that York University will open a new medical school focused on family medicine in Vaughan in 2028. The new medical school will be located in the Vaughan Healthcare Centre Precinct (VHCP) and is part of a broader effort to address Ontario’s shortage of healthcare workers. York University estimates that the medical school will help the province meet almost 88 per cent of the projected need for family physicians as well as other primary care doctors in the generalist specialties in Ontario.

The City of Vaughan is leading a collaboration to transform an 82-acre parcel of land at Jane Street and Major Mackenzie Drive into the Vaughan Healthcare Centre Precinct (VHCP). Together with partners Mackenzie Health, York University and ventureLAB, the City is developing a world-class destination for healthcare excellence.

Read more: https://www.vaughan.ca/news/mayor-del-duca-welcomes-approval-and-provincial-funding-york-universitys-school-medicine-vaughan

Menkes Developments Ltd. and QuadReal Property Group break ground on a three-tower community in the VMC.

Menkes and QuadReal have started construction on the next phase of the largest mixed-use development in the VMC. The three-tower community will consist of 32, 41 and 51 storeys, and marks the second phase of the Company’s Festival brand. The development is designed to seamlessly integrate into the growing VMC offering a range of amenities including coworking spaces, grade retail, a pedestrian mews, and a privately-owned public space.

The Vaughan Metropolitan Centre (VMC) is Vaughan’s emerging downtown core that continues to establish its reputation as the premier destination for talent and business. The VMC offers unparalleled access to office space, multimodal mobility and urban amenities – all located within the heart of the Greater Toronto Area (GTA).  More than 783,000 square feet of new office space has been built and approved in the VMC, representing 52 per cent of the 2031 office space target. More than 425,000 square feet of retail use in VMC has been approved, representing 57 per cent of the 2031 retail target. Including pre-application consultations, the VMC has now reached 194 per cent off office targets and 115 per cent of retail targets for 2031.

Vaughan-headquartered Martinrea International recently announced the launch of a new software company MiNDCAN.

Vaughan-headquartered Martinrea International a major automotive supplier recently announced the launch of MiNDCAN. The newly established software company offers solutions to help enhance program management, profit optimization, and sustainability reporting across throughout the private sector. Tailored solutions offered through MiNDCAN have been rigorously tested and applied to operations within Martinrea International offering innovative and specific applications that make organizations operate more efficiently and effectively.

The automotive sector in Vaughan makes up a large part of the advanced manufacturing cluster in the city, contributing $4 billion in real gross domestic product to Vaughan’s economy in 2022.

Vaughan Economic and Business Update – March 2024

Highlights

  • The Consumer Price Index rose 2.9 per cent year-over-year in January following a 3.4 per cent increase in December.
  • The unemployment rate increased by 0.1 per cent in February despite an increase to national employment of 41,000 in February.
  • Real Gross Domestic Product (GDP) was unchanged in December following two months of growth.
  • The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in retail trade, professional, scientific and technical services, and arts, entertainment and recreation in February.
  • Fawn Group Canada announces new head office location in Vaughan to enhance client services and expand product reach.
  • NGen unveils $86.7 million in new advanced manufacturing projects which includes funding to Vaughan-based manufacturer Macrodyne Technologies for a gas oscillation super plastic forming technology project.
  • Fero International Inc., a provincial grant recipient through the Activate!Vaughan health innovation challenge, receives $3.5 million in funding from FedDev Ontario to bring its cost-effective hospital infrastructure to market.

SELECT Economic Indicators

The Consumer Price Index rose 2.9 per cent year-over-year in January following a 3.4 per cent increase in December.

The Consumer Price Index (CPI) rose 2.9 per cent year-over-year in January following a 3.4 per cent increase in December. Deceleration in CPI was largely due in part to lower gasoline prices – there was a 4.0 per cent decrease in January when compared to December.

Gas prices fell for the fifth consecutive month due regular shifts in winter blended gasoline and the extension of Manitoba’s provincial gas tax has also provided further relief to this month’s deceleration.

Grocery prices continue to increase at a slower pace on a year-over year basis. The deceleration of grocery prices was broad-based in January with products such as meat (+2.8 per cent), dairy (+1.5 per cent) and bakery products (+4.0 per cent) leading the deceleration.

The unemployment rate increased by 0.1 per cent in February despite an increase to national employment of 41,000 in February.

National employment increased by 41,000 people despite an increase in the unemployment rate of 0.1 per cent in February. This is a result of population growth (+0.3 per cent) continuing to outpace employment growth (+0.2 per cent). Employment gains for January were spread across multiple sectors including accommodation and food services (+26,000, +2.4 per cent), and professional scientific and technical services (+18,000, +0.9 per cent).

The national employment rate, the proportion of the population aged 15 and older who are employed, decreased for the fifth consecutive month. The consecutive decreases in the employment rate mark the longest period of consecutive decreases since a six-month period ending in April 2009. Rapid population growth largely driven through permanent and temporary immigration is causing record high growth. On October 1, 2023, Canadas population was estimated at 40,528,396 – an increase of 430,635 people since July 1, 2023. This quarterly increase in population growth was the highest recorded growth since the second quarter of 1957.

Ontario’s unemployment rate increased 0.3 per cent in December to 6.5 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – increased 0.3 per cent to 7.1 per cent.

Average hourly wages among employees rose 5.0 per cent on a year-over-year basis in February (+$1.66 to $34.82), following an increase of 5.3 per cent in January (not seasonally adjusted).

Working from home continues to be an important work week feature for many Canadians. In February, nearly 1 in 4 Canadian worked some or part of their time at home – 13.5 per cent of workers usually worked exclusively from home and a further 11.4 per cent had a hybrid arrangement. Compared to November 2023, the proportion of those working exclusively from home had increased 0.9 per cent while hybrid work arrangements saw little change. Sectors such as professional scientific and technical services, finance insurance, real estate and rental and leasing, and public administration had the largest proportion of workers who worked exclusively at home or in a hybrid arrangement.

Real Gross Domestic Product (GDP) was unchanged in December following two months of growth.

Real Gross Domestic Product (GDP) was unchanged in December following two months of growth. Despite 14 of 20 sectors increasing in December, goods-producing industries contracted 0.2 per cent with manufacturing, construction, and utilities accounting for the decline in this industry grouping.

The construction sector declined 0.6 per cent in December due to lower building activity in three of the four subsectors. Residential building construction declined the most at 1.6 per cent.

Manufacturing contracted 0.6 per cent in December in both durable and non-durable goods manufacturing. Transportation and equipment manufacturing saw the largest decrease at 3.1 per cent due to slowdowns for retooling in multiple Ontario assembly plants.

Utilities contracted 3.6 per cent in December as all three sub sectors posted declines. Electric power generation, and natural gas distribution both experienced declines as commercial and residential uses dropped due to unseasonably warm weather in December.

Retail trade grew for the fourth consecutive month. Seven of the twelve subsectors posted increases in December. The largest contributors to growth were general merchandise stores, which rose 3.1 per cent, and food and beverage stores, which increased 1.8 per cent. Motor vehicles and parts dealers have been a key driver in the previous three consecutive monthly gains, and another strong contributor to gains again in December, increasing 1.2 per cent.

Advance information indicates that real GDP rose 0.4 per cent in January. Increases in educational services and health care and social assistance were partially offset by decreases in mining, quarrying, and oil and gas extraction and transportation and warehousing.


LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in retail trade, professional, scientific and technical services, and arts, entertainment and recreation in February.

Economic Developments Small Business and Entrepreneurship top five industries seeking consultations in February were:

  1. Retail trade (38 per cent)
  2. Professional, scientific, and technical services (16 per cent)
  3. Arts entertainment and recreation (11 per cent)
  4. Healthcare and social assistance (9 per cent)
  5. Accommodation and food services (8 per cent)
Fawn Group Canada announced new head office location in Vaughan to enhance client services and expand product reach.

Fawn Group Canada specializes in the import and export of firefighting supplies and offers a comprehensive range of products designed to ensure the safety and efficiency of firefighting professionals. The company recently announced the re-location of its headquarters to 2100 Steeles Avenue West, Unit 101 marking a significant milestone in the company’s expansion strategy. The new location allows Fawn Group Canada to streamline logistics, ensure rapid and reliable delivery of products and increase the company’s commitment to client care.

NGen unveils $86.7 million in New Advanced Manufacturing projects which includes funding to Vaughan-based manufacturer Macrodyne Technologies for a gas oscillation super plastic forming technology project.

Vaughan-based Macrodyne Technologies, the largest North American manufacturer of hydraulic presses, press lines and die handling equipment, was one recipient of the latest cohort of applicants for funding from NGen for new advanced manufacturing projects. The current cohort of projects funded by NGen totals $86.7 million and includes 15 companies from across Ontario.

Next Generation Manufacturing Canada (NGen) is the industry-led non-profit organization responsible for leading the advanced manufacturing cluster in Ontario.

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.

Fero International Inc., a provincial grant recipient through the Activate!Vaughan health innovation challenge, receives $3.5 million in funding from FedDev Ontario to bring its cost-effective hospital infrastructure to market.

Fero International Inc. is a provider of pressurized mobile medical units creating additional capacity for ICUs, operating rooms, long-term care, triage centres and other care needs. Recently announced an investment from the Federal Economic Development Agency for Southern Ontario of an investment of over $3.5 million, This funding will allow Fero to increase its in house manufacturing capabilities to grow production of its modular healthcare infrastructure benefiting hospital an long term care homes across Ontario and Canada.

Fero International Inc. was one of the top eight companies and provincial grant recipient in the Activate!Vaughan Health Innovation Challenge, which ran in 2020. The City, in partnership with presenting sponsors the Province of Ontario and Sterling Industries, and program partners Mackenzie Health, the Mackenzie Innovation Institute (Mi2), SE Health, ventureLAB, York Region and The Hub, called on entrepreneurs to present innovative business solutions that will advance a technology-enabled healthcare system in its delivery of high-quality, effective and patient-focused care. These were centered around four “reverse pitches” identifying opportunities for innovation related to telehealth solutions, improved communication technologies, connected healthcare services and new medical devices.

2023 Building Permit Rankings

Highlights

  • Vaughan had a record development year, issuing more than $2.6 billion in value of building permits in 2023.
  • The City is one of the top development markets in the country, ranking ninth by value of building permits in Canada for all types of buildings.
  • Vaughan’s industrial development market ranks sixth nationally by value of permits in 2023.
  • Vaughan’s residential development activity ranks seventh nationally by value of permits over the same period.
  • Vaughan remains the largest industrial market in York Region and the fourth largest industrial market in the Greater Toronto Hamilton Area after Toronto, Mississauga, and Brampton.

As an economic indicator, building permit values measure current demand in both residential and non-residential real estate markets and estimate future performance of the construction industry. Building permit activity is one indicator of the strength of the local economy, as well as a predictor of population and employment growth.

Vaughan had a record development year, issuing more than $2.6 billion in value of building permits in 2023. The City is one of the top development markets in the country, ranking ninth by value of building permits in Canada for all types of buildings.

According to data released last week from Statistics Canada that included fourth quarter building permit data, Vaughan ranks ninth overall in the country by value of permits across all building types (including both residential and non-residential building permits).

Top 10 Canadian Development Markets (All Buildings) by Value of Permits, 2023:

  1.  Toronto
  2. Calgary
  3. Montréal
  4. Vancouver
  5. Edmonton
  6. Ottawa
  7. Hamilton
  8. Brampton
  9. Vaughan
  10.  Winnipeg
In 2023, Vaughan ranked seventh overall in the country for value of residential building permits. 2023 residential building permits accounted for $1.9 billion in construction value, a 56 per cent increase from 2022.

From the 2023 Construction Activity Summary from Vaughan’s Building Standards Department, the value of residential building permits for 2023 was more than $1.9 billion. This is a 56 per cent increase from 2022 of approximately $860 million in residential building permit value.

Despite the increase in value, the number of residential permits decreased by 0.8 per cent in 2023. Increased costs in materials, labour, profit, overhead or residential building type may be factors. The number of residential building permits decreased from 2,146 in 2022 to 2,129 in 2023. Factors that may contribute to a higher value of residential building permits despite lowered quantity include increased costs in materials, labour, profit, overhead, or residential building type (e.g., detached, semi-detached, condominium).

Top 10 Canadian Residential Markets by Value of Permits, 2023:

  1. Toronto
  2. Calgary
  3. Vancouver
  4. Edmonton
  5. Ottawa
  6. Montréal
  7. Vaughan
  8. Hamilton
  9. Winnipeg
  10.   Surrey
Vaughan remains the largest industrial market in York Region and the fourth largest industrial market in the Greater Toronto Hamilton Area after Toronto, Mississauga, and Brampton.

Vaughan’s industrial market remains one of the busiest in the country by value of industrial permits in 2023, ranking sixth overall.

Top 10 Canadian Industrial Markets by Value of Permits, 2023:

  1. Toronto
  2. Hamilton
  3. Mississauga
  4. Brampton
  5. Vancouver
  6. Vaughan
  7. Montréal
  8. Québec
  9. London
  10.   Kelowna

When looking at only Ontario, Vaughan is in the top ten census subdivisions by value of non-residential building permits, ranking sixth after Toronto, Brampton, Ottawa, Hamilton, and Mississauga which includes industrial, commercial and institutional development.

Vaughan continues to be one of the largest industrial markets in the Greater Toronto Area, with a total industrial inventory of nearly 100 million square feet at the end of the fourth quarter, 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.


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.

Residential buildings are defined as buildings intended for private occupancy whether on a permanent basis or not. Dwellings are divided into the following types: single-family, mobile, cottage, semi-detached, row house and apartment building.

Non-Residential buildings are all buildings not intended for private occupancy whether on a permanent basis or not. This includes buildings used for institutional, commercial, or industrial purposes.

Vaughan Economic and Business Update – February 2024

Highlights

  • On an average annual basis, the Consumer Price Index rose 3.9 per cent in 2023, following an average annual increase of 6.8 per cent in 2022.
  • The Consumer Price Index rose 3.4 per cent year-over-year in December following a 3.1 per cent increase in November.
  • National employment increased by 37,000 people, and the unemployment rate fell 0.1 per cent in January.
  • Real Gross Domestic Product (GDP) grew 0.2 per cent in November, after three consecutive months of no change.
  • The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in retail trade, construction, and professional scientific and technical services in January.
  • Mircom introduces the next-generation fire detection and alarm product range into the U.S. security distribution

SELECT Economic Indicators

On an average annual basis, the Consumer Price Index rose 3.9 per cent in 2023, following an average annual increase of 6.8 per cent in 2022.

The Consumer Price Index (CPI) measures the change in prices of goods and services purchased by Canadians. CPI measures price changes by comparing, through time, the cost of a fixed basket of goods and services. In 2023 the CPI rose 3.9 per cent on an average annual basis following an average annual increase of 6.8 per cent in 2022.

The deceleration of CPI in 2023 was due in part to lower energy prices which fell 4.2 per cent on an average annual basis in 2023 following a 22.5 per cent increase in 2022. The price increase of gasoline in 2022 was due to several factors including increased demand from easing COVID-19 restrictions, supply interruptions and supply uncertainty as crude oil facilities needed time to ramp up production. These challenges settled in 2023 allowing for the overall cost of gasoline to fall.

While all categories of CPI experienced continued price growth in 2023, six of the eight categories of CPI saw slower price growth when compared to 2022.  Food prices remained elevated throughout 2023, however, prices for food purchased from stores rose at 7.8 per cent in 2023 down from the record high in 2022 of 9.8 per cent.

Housing replacement costs in 2023 decreased while mortgage interest costs and rents accelerated. Due to rising interest rates and mortgage renewals in 2023, mortgage interest costs and rent costs increased 28.5 per cent and 6.5 per cent respectively. This index was the largest contributor to the annual average of all items CPI increase in 2023.

The Consumer Price Index rose 3.4 per cent year-over-year in December following a 3.1 per cent increase in November.

The Consumer Price Index rose 3.4 per cent year-over-year in December following a 3.1 per cent increase in November. The acceleration in CPI for December was due to rising costs in airfare, fuel oil, passenger vehicles and rent.

Prices for air transportation rose 31.1 per cent in December following an increase of 1.1 per cent in November. This increase was largely due to increased demand for travel during the holiday season and into the winter months of 2024.

The cost of rent has continued to climb, rising 7.7 per cent year over year following a 7.4 per cent increase in November. A higher interest rate environment has put upward pressure on Canadians’ ability to own a home has will continue to put pressure on rental costs. Ontario (+6.9 per cent), British Columbia (8.6 per cent) and Quebec contributed the most to this index’s increase in December.

National employment increased by 37,000 people, and the unemployment rate fell 0.1 per cent in January.

National employment increased by 37,000 people and the unemployment rate fell 0.1 per cent in January. Population growth (+0.4 per cent) is continuing to outpace employment growth (+0.2 per cent). Employment gains for January were spread across multiple sectors including wholesale and retail trade, finance, insurance, rental and leasing, educational services, and transportation and warehousing.

For the fourth consecutive month, the national employment rate has declined. The employment rate is the proportion of the working-aged population that is employed. In January 2024, the rate fell 0.1 per cent to 61.6 percent marking the fourth month of decline. On a year-over-year basis, the labour force grew by 345,000 while the working-aged population grew by 1.0 million largely driven by permanent and temporary immigration.

The participation rate – which is the number of people who are either employed or unemployed as a percentage of the population aged 15 years and older – fell 0.2 per cent in January 2024 to 65.3 per cent. This decrease was again due to population growth that is outpacing employment growth.

Ontario’s unemployment rate declined 0.1 per cent in December to 6.2 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – increased 0.1 per cent to 6.8 per cent.

On a year-over-year basis, average hourly wages among employees rose 5.3 per cent in January (+$1.74 to $34.75), following an increase of 5.4 per cent in December 2023.

Real Gross Domestic Product (GDP) grew 0.2 per cent in November, after three consecutive months of no change.

Real Gross Domestic Product (GDP) grew 0.2 per cent in November, after three consecutive months of no change. GDP growth in November came from goods-producing industries such as manufacturing and utilities.

The manufacturing sector rose 0.9 per cent in November as both durable and non-durable goods posted increases. Non-durable goods experienced the largest monthly gain since May of 2023, primarily due to increases in chemical manufacturing after several major Canadian plants completed maintenance related shutdowns. Durable goods manufacturing posted increases in 7 of its 10 subsectors with metal manufacturing and machinery equipment manufacturing posting the largest increases.

The wholesale trade sector increased 0.7 per cent for the first time after two consecutive months of declines. Increases in November were primarily due to increased outputs in motor vehicle and motor vehicle parts and accessories wholesalers and building materials and supplies wholesalers.

The information and cultural services sector increased 0.5 percent in November after five consecutive months of decline. Motion picture and sound recording industries and publishing industries posted the highest increases. Sector growth was mainly attributed to media and motion picture companies being able to ramp up operations after the SAG-AFTRA strike ended on November 9.

Advance information indicates that real GDP increased 0.3 per cent in December. Increases in manufacturing, real estate and rental and leasing, and mining, quarrying and oil and gas extraction were partially offset by decreases in transportation and warehousing, construction, and educational services.


LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in retail trade, construction, and professional scientific and technical services in January.

Economic Developments Small Business and Entrepreneurship top five industries seeking consultations in January were:

  1. Retail trade (39 per cent)
  2. Construction 26 per cent)
  3. Professional, scientific, and technical services (17 per cent)
  4. Administrative and support and waste management (9 per cent)
  5. Healthcare and social assistance (4 per cent)
Mircom introduces the next-generation fire detection and alarm product range into the U.S. security distribution market.

Vaughan headquartered Mircom is one of the largest independent fire alarm manufacturers and distributors in Norther America. The company recently introduced their next-generation fire detection and alarm product range into the U.S. security distribution market. This next-generation product line meets the most stringent industry standards and is engineered to be easy to use and cost-competitive.

Vaughan’s advanced manufacturing cluster has a significant impact on the city’s economy accounting for 19 per cent of Vaughan’s real GDP and contributing $4.7 billion in economic output in 2022. As one of Canada’s advanced manufacturing hubs, Vaughan is an integral part of the newly announced Advanced Manufacturing Supercluster, developing next-generation manufacturing capabilities and incorporating technologies, such as advanced robotics and 3D printing. Vaughan’s access to superior end-to-end supply chain solutions, transportation assets and industrial market size makes it a competitive and attractive destination for advanced manufacturing.

Vaughan Economic and Business Update – January 2024

Highlights

  • The Consumer Price Index rose 3.1 per cent year-over-year in November following a 3.1 per cent increase in October.
  • The national unemployment rate held steady in December at 5.8 per cent.
  • Real Gross Domestic Product (GDP) was unchanged in October for a third consecutive month.
  • The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in retail trade, professional, scientific and technical services and accommodation and food services in December.
  • Vaughan-headquartered Drone Delivery Canada completed its first milestone with the Department of National Defense.
  • TPG acquires majority of Oxford Properties Group industrial portfolio in new joint venture worth more than one billion dollars.
  • Metro Supply Chain acquires leading supply chain solutions provider SCI Group.
  • Vaughan-headquartered Screenco Manufacturing Ltd. recently announced the acquisition of two major US manufacturing firms Screens of Mass Construction and Quality Screen Company.

SELECT Economic Indicators

The Consumer Price Index rose 3.1 per cent year-over-year in November following a 3.1 per cent increase in October.

The Consumer Price Index (CPI) rose 3.1 per cent year-over-year in November following a 3.1 per cent year-over-year increase in October. Increases in CPI were mainly due to increases in travel costs which were offset slightly by slower price increases in food, cellular services, and fuel oil.

Grocery prices continue to increase in November but at a slower pace when compared with October. This marked the fifth consecutive month that grocery price growth slowed year-over-year.

Energy prices in November continue to fall, decreasing at a greater rate (5.7 per cent) than in October (5.4 per cent). The temporary suspension of the carbon levy on fuel contributed most to this decline. Electricity prices rose 8.2 per cent year-over-year in November following a 6.7 per cent increase the previous month. This is largely due to the result of higher energy prices in Ontario and as the province saw increased time-of-use rates.

The national unemployment rate is holding steady at 5.8 per cent in December.

The national unemployment rate is holding steady at 5.8 per cent while employment remained unchanged in December at 0.0 per cent. Employment growth slowed in the second half of 2023, averaging gains of 23,000 per month nationally, compared with the first six months of 2023 when it averaged 48,000 per month. Population growth grew by nearly 74,000 in December and is on par with average monthly population growth for 2023 (79,000 per month).

Ontario’s unemployment rate increased 0.2 per cent in December to 6.3 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – increased 0.1 per cent as to 6.7 per cent.

While the unemployment rate continues to hold steady, the participation rate – which is the share of the working-age population that is working or looking for work – declined 0.2 per cent to 65.4 per cent. The decline occurred from a recent peak of 65.7 per cent in June and is attributed to a drop in the youth participation rate, which decreased 2.1 per cent to 63.5 per cent in December.

On a year-over-year basis, average hourly wages rose 5.4 per cent (+$1.78 to $34.45) in December, following an increase of 4.8% in November (not seasonally adjusted).

Real Gross Domestic Product (GDP) was unchanged for a third consecutive month in October.

Real Gross Domestic Product (GDP) was essentially unchanged for the third consecutive month in October. Real GDP measures the inflation-adjusted value of goods and services produced in the economy and is an indicator of economic growth.

The manufacturing sector decreased for the fourth time in five months, declining 0.6 per cent in October. Declines in the sector were largely concentrated in the durable goods manufacturing sub-sector with machinery manufacturing and transportation equipment manufacturing contributing the most to the decline. However, non-durable goods manufacturing experienced a slight increase of 0.2 per cent in October.

Wholesale trade contracted for the second consecutive month. Machinery, equipment and supplies wholesaling contributed the most to the decline with a 1.8 per cent contraction due to rising inventories and decline of sales at the provincial level.

Advance information indicates that real GDP by industry increased 0.1 per cent in November. Increases in manufacturing, transportation and warehousing, and agriculture, forestry, fishing and hunting were partially offset by decreases in retail trade.


LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in retail trade, professional scientific and technical services and accommodation and food services in December.

Economic Developments Small Business and Entrepreneurship top five industries seeking consultations in December were:

  1. Retail Trade (14 per cent), Professional Scientific and Technical Services (14 per cent) and Accommodation and Food Services (14 per cent)
  2. Other Services (12 per cent)
  3. Wholesale Trade (10 per cent)
  4. Healthcare and Social Assistance (7 per cent)
  5. Arts Entertainment and Recreation (9 per cent) and Construction (3 per cent)
Vaughan-headquartered Drone Delivery Canada completes its first milestone with the Department of National Defense.

Vaughan-headquartered Drone Delivery Canada is an award-winning drone technology company focused on the design, development, and implementation of its proprietary logistics software platform using drones. The company recently completed the first of two milestones as part of the company’s contract with the Department of National Defense. The first phase of testing saw the completion of 145 test flights using its canary drone system which can be used for the delivery of goods to remote areas or regions with little to no road access. The company is continuing to revolutionize the transportation of goods and materials using advanced drone technology.

TPG acquires majority of Oxford Properties Group industrial portfolio in new joint venture worth one billion.

TPG, a global alternative asset management firm, has entered a joint venture worth more than one billion dollars to acquire a 75 per cent interest in Oxford Properties Groups two Class-A industrial business parks in the GTA: Brampton Business Park and Vaughan Business Park. Oxford Properties Group will continue to manage both industrial parks. The Vaughan industrial park owned by Oxford Properties Group is on Royal Group Crescent near the intersection of Highway 7 and Highway 27. The business park comprises five industrial buildings that total more than 2.2 million square feet. Notable tenants within the business park include Transcontinental Printing and Targeo.

Metro Supply Chain acquires leading supply chain solutions provider SCI Group.

Metro Supply Chain, which has a presence in Vaughan, is a strategic supply chain solutions partner to many global organizations which recently announced the acquisition of SCI Group Inc, a leading supply chain solutions provider from Canada Post and Purolator Holdings Ltd. Metro Supply Chains recent acquisition will allow the Canadian owned company to better compete in the global supply chain sector.

Vaughan’s logistics, distribution and e-commerce solutions is one of the largest transportation hubs in Ontario. This sector plays a crucial role in moving goods across North America with direct rail connections to air- and sea-ports linking Vaughan to the world. The sector is comprised of more than 1,200 companies that employ nearly 32,000 people.

Vaughan-headquartered Screenco Manufacturing Ltd. recently announced the acquisition of two major US manufacturing firms, Screens of Mass Construction and Quality Screen Company.

Vaughan headquartered Screenco Manufacturing Ltd.is a leading Canadian manufacturer of high-quality roll form and screen products. The company recently announced the acquisition of two major US manufacturing firms Screens of Mass Construction and Quality Screen Company. The acquisition continues the company’s growth and expansion allowing the company to offer an extensive product portfolio across North America.

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 $4.1 billion in real GDP to Vaughan’s economy in 2022.

Vaughan Economic and Business Update – December 2023

Key Highlights

  • The Consumer Price Index rose 3.1 per cent year-over-year in October following a 3.8 per cent increase in September.
  • The national unemployment rate rose 0.1 per cent to 5.8 per cent in November.
  • Real Gross Domestic Product (GDP) increased 0.1 per cent in September, following a 0.0 per cent increase in August.
  • The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in accommodation and food services, other services, and professional and technical services in November.
  • Vaughan-based manufacturer York Metal Products receives Ontario Automotive Modernization Program funding to modernize operations and increase competitiveness.
  • Canadian-owned discount retailer Giant Tiger opens first retail location in Vaughan.
  • Canada’s Top Employers of 2024’, distributed in the Globe and Mail, featured 10 Vaughan-based businesses.

SELECT Economic Indicators

The Consumer Price Index rose 3.1 per cent year-over-year in October following a 3.8 per cent increase in September.

The Consumer Price Index (CPI) rose 3.1 per cent year-over-year in October following a 3.8 per cent year-over-year increase in September. The year-over-year deceleration was largely a result of lower gasoline prices (-7.8 per cent) in October. Mortgage interest costs and food purchased from grocery stores continue to be the largest contributors to year-over-year CPI increases In October consumers paid 7.8 per cent less for gasoline in October after a 7.5 per cent increase in September. The decline in gasoline prices was due to lower refining margins which were driven by producers switching to cheaper winter blends of gasoline.

Rent continues to put upward pressure on consumers as rental prices rose at a faster pace year-over-year in October (+8.2 per cent) than in September (+7.3 per cent). The acceleration in rent prices was largely seen in Nova Scotia, Alberta, British Columbia, Quebec and Ontario.

The national unemployment rate rose 0.1 per cent to 5.8 per cent in November.

The national unemployment rate rose 0.1 per cent to 5.8 per cent in November and the employment rate fell 0.1 per cent to 61.8 per cent as growth in population continues to outpace employment growth. Meanwhile, Ontario’s unemployment rate fell 0.1 per cent in November to 6.1 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – fell 0.1 per cent as well to 6.6 per cent. Employment gains across Canada in November were concentrated in manufacturing, and construction sectors while decreases were seen in the wholesale, retail trade and sectors.

Unemployment increases since earlier this year have been most pronounced among youth – unemployment for youth in Ontario was 13.3 per cent in November, which has risen 1.1 per cent over the same period last year. In contrast, the unemployment rate for adult men and women rose by 0.4 per cent and 0.1 per cent respectively from November 2022 to November 2023.

Compared to this time last year unemployed people were more likely to have been laid off, reflecting more difficult economic and labour market conditions. At the national level more than two-thirds (68.7 per cent) had been laid off from their previous job compared to 62.6 per cent in November 2023.

On a year-over-year basis, average hourly wages rose 4.8 per cent (+$1.57 to $34.28) in November, similar to the increase recorded in October (not seasonally adjusted).

Real Gross Domestic Product (GDP) increased 0.1 per cent in September, following a 0.0 per cent increase in August.

Real Gross Domestic Product (GDP) increased 0.1 per cent following a 0.0 per cent increase in August. Real GDP measures the inflation-adjusted value of goods and services produced in the economy and is an indicator of economic growth.

The manufacturing sector increased 0.9 per cent in September after contracting for three months in a row. Non-durable goods manufacturing grew 0.8 per cent as food manufacturing, meat product manufacturing, and petroleum and coal manufacturing sub-sectors were responsible for the majority of growth in September. Durable goods manufacturing increased for the first time in four consecutive months largely due to growth in machinery manufacturing and mining manufacturing.

Construction activity continued to grow with a 0.1 per cent expansion in September. Residential building construction increased 3.8 per cent in September and was the largest gain since April 2021. Activity in this sub-sector was seen across multi-unit, single family and home alterations and improvements which all contributed heavily to the sector expansion in September.

Advance information indicates that real GDP increased 0.2 per cent in October. Increases in mining, quarrying, and oil and gas extraction, retail trade, and construction were partially offset by decreases in the wholesale trade sector.


LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in accommodation and food services, other services, and professional and technical services in November.

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

  1. Accommodation & Food Services (26 per cent)
  2. Other Services (19 per cent) and Professional Scientific and Technical Services (19 per cent)
  3. Arts Entertainment and Recreation (9 per cent) and Construction (9 per cent)
  4. Retail Trade (6 per cent)
  5. Wholesale Trade (4 per cent)
Vaughan-based manufacturer York Metal Products receives Ontario Automotive Modernization Program funding to modernize operations and increase competitiveness.

The Ontario Automotive Modernization Program (O-AMP) provides financial support to small and medium sized automotive parts suppliers to adopt the tools, technologies and manufacturing practices needed to scale up, modernize and increase competitiveness. The fourth round of O-AMP funding provided 26 Ontario automotive parts suppliers with over $3.5 million in funding creating 111 new jobs across the province. Vaughan-based manufacturer York Metal Products an advanced manufacturing firm that utilizes cutting-edge technology and processes to produce complex metal fabricated components.

With $4 billion in economic output in 2022 and 42,000 workers, Vaughan has one of the most concentrated advanced manufacturing sectors in the GTA. As one of Canada’s advanced manufacturing hubs, Vaughan is also an integral part of the newly announced Advanced Manufacturing Supercluster, developing next-generation manufacturing capabilities and incorporating technologies, such as advanced robotics and 3D printing. Vaughan’s access to superior end-to-end supply chain solutions, transportation assets and industrial market size makes it a competitive and attractive destination for advanced manufacturing.

Canadian-owned discount retailer Giant Tiger opens first retail location in Vaughan.

Giant Tiger, a leading Canadian-owned family discount store, opened its first retail location in Vaughan at 67 Colossus Drive. The 18,000-square-foot retail store opened on December 2 and is dedicated to meeting the needs of the communities its services by providing a suite of affordable products. The privately held company has over 260 locations across Canada and proudly employs over 10,000 members of Team Tiger.

‘Canada’s Top Employers of 2024’, distributed in the Globe and Mail, featured 10 Vaughan-based businesses.

The recent release of Canada’s Top 100 Employers project included 10 Vaughan-based businesses. Canada’s Top 100 Employers project is a national editorial competition highlighted industry-leading employers that offer exceptional workplaces for their employees which is now in its 24th year. The list of winners is published by MediaCorp and distributed in the Globe and Mail. The below businesses included have a location or are headquartered in Vaughan:

Vaughan Economic and Business Update – November 2023

Key Highlights

  • The Consumer Price Index rose 3.8 per cent year-over-year in September following a 4.0 per cent increase in August.
  • The national unemployment rate rose 0.2 per cent to 5.7 per cent in October, marking the fourth increase in the past six months.
  • Real Gross Domestic Product (GDP) remains unchanged in August following a 0.0 per cent increase in July.
  • The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in healthcare and social assistance, professional, scientific and technical services, and retail trade in October.
  • Vaughan-headquartered Martinrea was highlighted through the Global Innovation Clusters program for the success of their industry collaboration with Polyalgorithm Machine Learning’ (PolyML) to harness machine learning.
  • Vaughan-headquartered Martinrea announced a strategic relationship with Yamada Manufacturing to create a broader global manufacturing footprint in Japan.
  • Cedar Fair Entertainment Company the owner and operator of Canadas Wonderland to combine with Six Flags in a merger of equals, creating a leading amusement park operator.

SELECT Economic Indicators

The Consumer Price Index rose 3.8 per cent year-over-year in September following a 4.0 per cent increase in August.

The Consumer Price Index (CPI) rose 3.8 per cent year-over-year in September following a 4.0 per cent year-over-year increase in August. The year-over-year deceleration in CPI stems from lower prices for travel, durable goods, and groceries. However, Gasoline prices rose at a faster pace in September (+7.5 per cent) compared to August (+0.8 per cent), offsetting the deceleration of all-items CPI.

While grocery prices remain elevated, price growth is slowing. Deceleration in grocery prices in September were mainly attributed to slowdowns in the price of meat, dairy products and coffee and tea products. Inversely, items such as fresh fruit, fish, and bakery products increased at a faster pace on year-over year basis in September.

The price of durable goods, which comprises hard goods or items that do not wear out rose at a slower pace year-over-year in September (+0.4 per cent) compared to August (+1.4 per cent). The purchase of new passenger vehicles rose 1.7 per cent in September following a 3.1 per cent increase in August. The price deceleration for new passenger vehicles was largely attributed to improved inventory.

The national unemployment rate rose 0.2 per cent to 5.7 per cent in October, marking the fourth increase in the past six months.

National unemployment rose 0.2 per cent to 5.7 per cent in October, marking the fourth increase in the past six months. Ontario’s unemployment rate also rose 0.2 per cent in October to 6.2 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – rose 0.2 per cent as well to 6.7 per cent.

Meanwhile, employment gains across Canada in October were concentrated in construction, information, culture, and recreation sectors while decreases were seen in the wholesale, retail trade and manufacturing sectors.

On a year-over-year basis, average hourly wages rose 4.8 per cent (+$1.56 to $34.08) in October, following an increase of 5.0 per cent in September.

Real Gross Domestic Product (GDP) saw net-zero growth for second consecutive month in August, following a 0.0 per cent increase in July.

Real Gross Domestic Product (GDP) saw its second consecutive month of zero net growth in August, following a 0.0 per cent increase in July. Real GDP measures the inflation-adjusted value of goods and services produced in the economy and is an indicator of economic growth.

Wholesale trade did experience a second consecutive month of increases in August, driven by growth across nine subsectors. The machinery, equipment and supplies subsector led the growth with a 5.1 per cent gain in August. This increase coincides with an increase in imports of industrial machinery, equipment, and parts.

Manufacturing contracted for the third consecutive month decreasing 0.6 per cent in August. Non-durable and durable goods manufacturing both contributed most to the decrease in August with transportation equipment manufacturing being the only subsector to post an increase.

Advance information indicates that real GDP by industry was essentially unchanged in September. Decreases in mining, quarrying, and oil and gas extraction and utilities were partially offset by increases in the construction and public sectors.


LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in healthcare and social assistance, professional, scientific and technical services, and retail trade in October.

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

  1. Heath Care and Social Assistance (18 per cent)
  2. Professional, Scientific and Technical Services (15 per cent)
  3. Retail trade (12 per cent)
  4. Other services (11 per cent)
  5. Arts Entertainment and Recreation (9 per cent)
Vaughan-headquartered Martinrea was highlighted through the Global Innovation Clusters program for the success of their industry collaboration with Polyalgorithm Machine Learning’ (PolyML) to harness machine learning.

NGen brought together Vaughan-headquartered Martinrea and Waterloo-based Polyalgorithm Machine Learning to harness the power of machine learning to enhance robotic welding and stamping machines. This project exemplifies how the Global Innovation Cluster is enabling NGen to foster practical solutions for Ontario manufactures that increase their competitive advantage.

The Global Innovation Clusters program was established by the Government of Canada and is focused on bringing together academic institutions, not-for-profits, and companies of all sizes to generate bold new ideas that increase Canadian companies’ global competitive advantage. The advanced manufacturing cluster based in Ontario is building up the next generation of manufacturing capabilities including robotics, machine learning and 3D printing.

Next Generation Manufacturing Canada (NGen) is the industry-led non-profit organization responsible for leading the advanced manufacturing cluster in Ontario.

Vaughan’s advanced manufacturing cluster is a major driver of the city’s economy. With $4 billion in economic output in 2022 and 42,000 workers, Vaughan has one of the most concentrated advanced manufacturing sectors in the GTA. As one of Canada’s advanced manufacturing hubs, Vaughan is also an integral part of the newly announced Advanced Manufacturing Supercluster, which is developing next generation manufacturing capabilities and incorporating technologies, such as advanced robotics and 3D printing. Vaughan’s access to superior end-to-end supply chain solutions, transportation assets and industrial market size makes it a competitive and attractive destination for advanced manufacturing.

Vaughan-headquartered Martinrea announced a strategic relationship with Yamada Manufacturing to create a broader global manufacturing footprint in Japan.

Vaughan-headquartered Martinrea is a diversified and global automated parts supplier engaged in the design development, and manufacturing of lightweight structures and engine systems. The company recently announced a strategic relationship with Yamada Manufacturing. Yamada Manufacturing is a Japanese-based automotive parts manufacturing company that designs, develops, and produces, automotive chassis, drives units and powertrains components. The strategic relationship signifies a broader global manufacturing footprint for Martinrea in Japan encompassing Yamada’s production expertise and corporate network. The two organizations have signed a memorandum of understanding allowing the two entities to work together in the Japanese market.

Vaughan is home to many globally recognized tier-one suppliers, including Magna International, Martinrea, Multimatic, Hanon Systems, Litens Automotive, IAC and Woodbridge Foam Corporation, as well as numerous tier-two and tier-three suppliers. The city’s central location is in direct proximity to assembly plants for giants such as Stellantis, Ford, Honda and Toyota, where businesses can plug into a strong and well-connected supply chain.

The automotive sector in Vaughan makes up a large part of the advanced manufacturing cluster in the city, contributing $4 billion in real gross domestic product to Vaughan’s economy in 2022. Vaughan’s automotive sector is comprised of over 660 sector-related businesses employing more than 13,600 people.

Cedar Fair Entertainment Company, the owner and operator of Canada’s Wonderland, to combine with Six Flags in a merger of equals, creating a leading amusement park operator.

Cedar Fair Entertainment Company and Six Flags to combine in a merger of equals to create a leading amusement park operator. The combined company will benefit from an expanded and complementary portfolio of 42 iconic parks and nine resort properties across the US, Canada and Mexico. The merger will also allow for more robust operating models and technology adoption across all parks and resorts to drive improved guest experiences and park efficiencies.

Vaughan recognizes and promotes tourism and the arts as important contributors to quality of life, social vitality and economic growth. Vaughan’s tourism sector is comprised of more than 950 businesses that employ more than 16,500 employees. This includes:

  • more than 25 amusement attractions (e.g., midways, museums, zoos, nature parks) that employ nearly 4,600 people.
  • more than 16 accommodations that employ more than 500 people.
  • more than 750 dining and drinking establishments that employ more than 10,200 people.

Economic and Investment Update – October 2023

Key Highlights

  • The Consumer Price Index rose 4.0 per cent year over year in August following a 3.3 per cent increase in July.  
  • The national unemployment rate was unchanged, remaining at 5.5 per cent in September. Real Gross Domestic Product (GDP) remained unchanged in July following a 0.2 per cent decline in June. 
  • The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in professional scientific and technical services, retail trade, and other services in September. 
  • Novel Biotechnology announced $2.5 million of secured seed funding from the support of private investors and the Ontario Centre of Innovation. 
  • Vaughan is set to host the Automotive Parts Manufacturing Association’s (APMA) annual conference for the next three years beginning in 2024. 
  • Nine Vaughan companies listed in Canada’s Top Growing Companies of 2023. 
  • Legacy Supply Chain announces new omni-channel and e-commerce fulfillment expansion in Vaughan. 

SELECT ECONOMIC INDICATORS

The Consumer Price Index rose 4.0 per cent year over year in August following a 3.3 per cent increase in July.

The Consumer Price Index (CPI) rose 4.0 per cent year-over-year in August following a 3.3 per cent year-over-year increase in July. Headline acceleration in CPI was largely due to increased year-over-year prices in gasoline, energy, and mortgage interest. On a monthly basis, CPI increased 0.4 per cent in August following a 0.6 per cent increase in July. The slowdown in monthly increases in CPI was driven by decreases in costs of travel tours and air transportation as prices typically fall following the peak of summer travel demand in July. 

Gasoline prices increased for the first since January 2023 due to higher global oil production and lower refining margins. On a monthly basis, gasoline prices rose 4.6 per cent further contributing to the year-over-year increase in August 2023. 

Mortgage interest costs and shelter prices are continuing to increase. Shelter costs rose 6.0 per cent on a year-over-year basis in August, with rents making up a considerable portion of this increase. Similarly, mortgage interest costs rose 30.9 per cent when compared to July’s increase of 30.6 per cent.  

Food prices for groceries slowed in August but remained elevated. In August food purchased from stores rose 6.9 per cent compared to 8.5 per cent in July. Prices for fresh fruit, cereal products, and fresh or frozen chicken increased at a slower pace when compared to July, however when combined with an increase in the price of beef, coffee, tea, sugar and confectionery resulted in elevated prices. 

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

National unemployment remained unchanged in September at 5.5 per cent. National employment rose by 64,000 in September following an increase of 40,000 (+0.2 per cent) in August. Employment increases are still mainly attributed to the country’s highest population growth since 1957 

Ontario’s unemployment rate rose 0.1 per cent in September to 6.0 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – remained at 6.5 per cent for the second consecutive month. 

Employment gains in September were concentrated in educational services, transportation and warehousing while declines were noted in construction, finance insurance and real estate, rental and leasing and information culture and recreation industries. 

Employment growth in September was primarily driven by part-time work. Since the beginning of the year, growth in part-time (+1.9 per cent) has outpaced growth in full-time work (1.0 per cent). As part time work may be voluntary or involuntary, the involuntary part-time rate (the proportion of people working less than 30 hours a week) stood at 17.5 per cent and was higher than the involuntary part-time work rate during the same month in 2022. 

On a year-over-year basis, average hourly wages rose 5.0 per cent (+$1.63 to $34.01) in September, following increases of 4.9 per cent in August and 5.0 per cent in July. 

Real Gross Domestic Product (GDP) remained unchanged in July following a 0.2 per cent decline in June. 

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

Manufacturing and the transportation and warehousing sectors both experienced declines in July. Manufacturing had the largest negative contribution to GDP in July declining 1.5 per cent, this was mainly due to issues with lower inventory formation and port strikes in British Columbia negatively impacting the chemical manufacturing subsector. The transportation and warehousing sector posted a decline of 0.2 per cent in July due to adverse weather and effects from forest fires which impacted several regions across the country. 

Oil and gas extraction increased in July due to higher natural gas extraction, this caused a rise in GDP of 1.5 per cent, reporting an increase for the sixth time in the last seven months. Finance and insurance increased 0.3 per cent in July as buying activity on the equity market helped the Toronto Stock Exchange increase 2.3 per cent. Additionally, real estate and rental and leasing continued to grow slightly at 0.1 per cent in July continuing its growth since November 2022. Professional scientific and technical services reported is first contraction in eight months with an overall sector decrease of 0.2 per cent. 

Advance information indicates that real GDP edged up 0.1 per cent in August. Increases in the wholesale trade and finance and insurance sectors were partly offset by decreases in the retail trade and oil and gas extraction sectors. 


LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES 

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in professional scientific and technical services, retail trade, and other services in September. 

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

  1. Professional scientific and technical services (37 per cent) 
  2. Retail trade (17 per cent) 
  3. Other services (13 per cent) 
  4. Health care and social assistance (11 per cent) 
  5. Accommodation and food services (5 per cent) 
Novel Biotechnology announced $2.5 million of secured seed funding from the support of private investors and the Ontario Centre of Innovation. 

Vaughan-based Novel Biotechnology a synthetic biology company focused on developing highly productive plasma DNA manufacturing platforms recently announced $2.5 million in secured seed funding. Novel Biotechnology is dedicated to pioneering a groundbreaking platform technology for the production of plasmid DNA a critical reagent in the modern biopharmaceutical industry.

Vaughan is home to an extensive network of health and healthcare tech and life sciences. The sector comprises all aspects of health and healthcare from services to residents and business-led innovation, Vaughan is a hub and destination for excellence in healthcare and health innovation and is home to major life sciences and healthcare companies/facilities including: Cortellucci Vaughan Hospital, AB Sciex, Alexion, Allergen, argenx, Astellas, Bausch & Lomb, Johnson & Johnson, LGC, Canon Medical, Cardinal Health, Leo Pharma, Chepeid. 

Vaughan is set to host the Automotive Parts Manufacturing Association’s (APMA)annual conference for the next three years beginning in 2024. 

The APMA is set to hold its next three annual conferences in Vaughan. The annual conference brings together leaders across the automotive industry to drive innovation, collaboration and discuss the future of the industry. Vaughan’s automotive sector is comprised of more than 600 sector-related businesses employing nearly 14,000 people. The automotive sector in Vaughan makes up a large part of the advanced manufacturing cluster in the city contributing $4.0 billion in real GDP to Vaughan’s economy. 

Nine Vaughan companies are listed in Canada’s Top Growing Companies of 2023. 

Nine Vaughan-based companies were recently included in the Globe and Mails Canada’s Top Growing Companies of 2023. This list highlights public and privately owned companies that have experienced major three-year growth in revenue. Vaughan businesses include: 

  • Flourish Pancakes 
  • Stack Adapt 
  • Catanzaro Mechanical 
  • My Baskets 
  • Highlight Motor Group 
  • Fastfrate Group 
  • Solutions Stack 
  • Wyse Meter Solutions 
  • Mactrans Logistics 
Legacy Supply Chain announces new omni-channel and e-commerce fulfillment expansion in Vaughan. 

Legacy Supply Chain, a high-growth North American third-party logistics provider has recently announced the opening of a 141,000 square foot omni-channel fulfillment warehouse in Vaughan. Legacy Supply Chain is continuing to expand omni-channel distribution and fulfillment capacity in the US and Canada. The new facility is Legacy’s fourth in the GTA and will build on the company’s hope to establish an integrated network that enables omni-channel brands to deliver their products to end consumers. 

Economic and Investment Update – September 2023

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

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.


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.

Economic and Investment Update – August 2023

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.

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.


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.