Vaughan Economic and Business Update – November 2023
- 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:
- Heath Care and Social Assistance (18 per cent)
- Professional, Scientific and Technical Services (15 per cent)
- Retail trade (12 per cent)
- Other services (11 per cent)
- 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.