Vaughan Economic and Business Update – January 2024
- 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:
- Retail Trade (14 per cent), Professional Scientific and Technical Services (14 per cent) and Accommodation and Food Services (14 per cent)
- Other Services (12 per cent)
- Wholesale Trade (10 per cent)
- Healthcare and Social Assistance (7 per cent)
- 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.