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City of Vaughan

Vaughan Economic and Business 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.