economy at a glance calgary's advantages march 2015
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Economy at a Glance Calgary's Advantages March 2015TRANSCRIPT
January 2015
Slide 1
March 2015
January 2015
Slide 2
Where is Calgary?
Strategic location
• Western Canada’s business centre
• 132 head offices in Calgary
• Western Canada’s distribution hub
• Highway 1 and Canamex
• Canadian Pacific Railway and Canadian National Railway
• Calgary International Airport has connections to 100 destinations
• 50 million people accessible by ground transportation within 24 hours
January 2015
Slide 3
About Calgary Economic Development
• Calgary Economic Development is a conduit, a connector and a catalyst
• Promotional agency
• Lead economic development agency
• Non-profit organization
• Arms length to City of Calgary
• Funded via Government, Industry and Community partnerships
• Mandated to support / connect business
• Business expansion, investment and attraction
• Trade development
• Workforce development
• Research and information
January 2015
Slide 4
10-year Economic Development Strategy
A strategy to make a global city – competitive, successful and unique
Focus on People and Community
• Educate and exchange
• Remove barriers to meaningful employment
• Enhance the city’s sense of place and experience
Focus on Business and Enterprise
• Strategically develop Calgary’s economy
• Provide smart infrastructure
• Create an environment for smart ideas and innovation
Focus on International Reach
• Promote the Calgary brand and identity
• Diversify tourism and convention activity
• Enhance international business development and connections
January 2015
Slide 5
Source: MoneySense Magazine
Calgary’s rankings
MoneySense Magazine - Canada’s best places to live, 2014
• Calgary ranked #1 in “top 10 large cities”
• Calgary ranked #2 out of 201 small, medium and large Canadian cities over 30 categories
• Calgary ranked #2 in “top 10 places to raise kids”
• Calgary ranked #9 in “top 10 best places for new immigrants”
• Calgary ranked #9 in “top 10 places to retire”
January 2015
Slide 6
Source: Economist Intelligence Unit, Mercer
Calgary’s rankings
Economist Intelligence Unit – Most livable city in the world
• Calgary #5 in 2014 (#5 for 2009, 2010, 2011, 2012 and 2013 )
• Ranking of 140 global cities with 30 indicators
• Criteria: stability, healthcare, culture and environment, education, infrastructure
Mercer – Quality of living survey
• Calgary is #31 in the world in 2014 (up from #32 in 2012, #33 in 2011 ranking)
• Ranking of 223 global cities with 39 criteria grouped into 10 categories ranked against New York as base city
• Criteria: political, social, economic and environmental factors
January 2015
Slide 7
Source: Conference Board of Canada, City Magnets III, 2014
Calgary’s rankings
City Magnets III: Benchmarking the attractiveness of 50 Canadian cities, 2014
- Assessment of 43 features in 7 categories that make cities attractive to migrants
- For Attractiveness to Migrants Report card, Calgary ranked #2 (out of 50 cities) with Grade A
Calgary ranked:
• Grade A in Overall Ranking
• #1 with Grade A for Economy
• #1 with Grade A for Innovation
• #5 with Grade A for Housing
• #17 with Grade B for Society
• #25 with Grade C for Education
• #30 with Grade C for Health
• #36 with Grade B for Environment
•
January 2015
Slide 8
Enviable lifestyle
A focus on family and a sense of community
• Calgary schools consistently top performers in Alberta
• Boasts one of the most successful transit systems in the world (ridership of 94.4 million; 4,205 route kilometres)
• 50 per cent of Albertans volunteer -- higher than the national average of 44 per cent (2013)
• Albertans reported the highest financial donations with an average of $863 in 2013 (the national average was $531)
January 2015
Slide 9
Enviable lifestyle
Active and healthy lifestyle
• An hour’s drive to spectacular Banff and the Rocky Mountains
• The most extensive urban pathway and bikeway system in North America (700 km along rivers; 290 km on-street bikeways)
• World-class attractions and sporting amenities, including: Calgary Stampede, Calgary Zoo, WinSport Canada’s Canada Olympic Park, National Sports Hall of Fame, Telus Spark Science Centre
• Abundant green space and parks (3,000 sites)
• A community rich in the arts, culture, entertainment and leisure activities and venues
January 2015
Slide 10
Global Scorecard on Prosperity
Sixth annual report benchmarking 24 global metropolitan areas (including five Canadian cities) with 33 indicators in two domains:
Economic performance - (18 indicators)
Labour attractiveness – (15 indicators)
• Overall ranking: Calgary ranks #3 in 2015 (ranked #2 in 2014)
• Economy overall ranking: Calgary ranks #7 with Grade B
• Labour attractiveness: Calgary ranks #5 with Grade B
Source: Toronto Region Board of Trade. Toronto as a Global City: Scorecard on Prosperity, 2015
January 2015
Slide 11
Calgary demographics
• Median age is 36.0 with 74.3 per cent aged 20 and older; 48.5 per cent of Calgarians are within core working age group of 25 – 54 (CMA,
2013)
• 26.2 per cent of population of Calgary CMA are immigrants with 1.9 per cent non-permanent residents (2011 NHS)
• Top three countries of birth for immigrants to Calgary CMA –Philippines (10.9 per cent), India (10.0 per cent) and China (9.5 per cent) (2011 NHS)
• 28.1 per cent of population is a visible minority with South Asian, Chinese and Filipinos leading (2011 NHS)
• Most frequently reported ethnic origins for Calgary CMA: English (24.1 per cent), Canadian (20.0 per cent), Scottish (18.5 per cent) (2011 NHS)
• Median total income 2010 – $89,490 (all Census families)
• Average household size – 2.6 people (2011 Census)
• Second highest level of educational attainment of population aged 25 – 64 of major Canadian cities (after Ottawa) (2011 NHS)
Source: Statistics Canada
January 2015
Slide 12
Source: Statistics Canada, Conference Board of Canada
Economic indicator summary
*Seasonally adjusted 3 month moving average
Indicator Date ValueChange / Rate (%)
Geography
PopulationChange over year July 1, 2014 1,511,755 3.5% CER
Inflation rate Change over year Mar. 2015 1.1% CMA
Employment*Change over year Mar. 2015 817,900 3.3% CMA
Unemployment rate* Mar. 2015 5.0% CMA
Average hourly wage* (hourly employees)
Change over year Jan. 2015 $27.55 5.0% Alberta
Average hourly wage* (salary employees)
Change over year Jan. 2015 $39.89 4.6% Alberta
Average weekly earningsChange over year Jan. 2015 $1,170.84 4.0% Alberta
Gross domestic productChange over year (Real GDP growth) Q4 2014
$117,002.00(2007 $ Millions) 3.1% CMA
Retail sales Change over year Q4 2014
$28,071.00($ Millions) 7.8% CMA
January 2015
Slide 13
Source: Statistics Canada, Alberta Advanced Education and Technology
Educated population
Calgary has a higher degree of learning
• Second highest level of educational attainment of population aged 25 – 64 of major Canadian cities at 69.6 per cent (after Ottawa) (2011 NHS)
• One of the best educated populations in North America
Headcount (2012/2013)
University of Calgary 34,474
SAIT Polytechnic 26,815
Mount Royal University 15,168
Bow Valley College 10,727
ACAD 1,250
Olds 2,573
Calgarians are connected
• All Calgarians have access to broadband Internet connectivity
• 91.8 per cent of Calgary households have access to the Internet
at home, compared to 82.5 per cent of Canadians (2012)
January 2015
Slide 14
High wages and salaries
$69,444
$60,455
$52,637 $52,537
$45,452 $44,553
Calgary Edmonton Ottawa Toronto VancouverMontreal
Wages and salaries
per employee
2014
Canadian CMAs
• Consistently highest wages and salaries per employee in Canada for the past 10 years -- $69,444 per employee in 2014
• Second highest total growth in wages and salaries per employee over the past 5 years (2010-2014) at 14.8 per cent
• Second highest total growth in wages and salaries per employee over the past 10 years (2005-2014) at 34.9%
• Second highest average annual growth in wages and salaries per employee over the past 10 years (2005-2014) at 4.4%
Source: Conference Board of Canada
January 2015
Slide 15
High personal income
$56,178
$49,464$46,388
$41,898 $42,651$40,109
Calgary Edmonton Ottawa Toronto VancouverMontreal
Personal income per capita
2014
Canadian CMAs
• Highest personal income per capita in 2014 at $56,178.21
• Third highest (tied with Vancouver) five-year average annual change in personal income per capita at 2.8% (2010-2014)
• Second highest average annual growth in personal income per capita over the past 10 years (2005-2014) at 3.5%
Source: Conference Board of Canada
January 2015
Slide 16
Calgary’s millionaires
152.9
86.4
58.849.8
36.8
23.3
Calgary Toronto EdmontonVancouverMontreal Ottawa
Millionaires per capita
(100,000 population)
2012
Canadian CMAs
• Highest number of millionaires in Canada on a per capita basis in 2012 (152.9 per 100,000)
• The number of Calgary millionaires has increased by 2.0 per cent over the past year to 2,000
• Calgary millionaires reported a median income of $1,548,640 in 2012
Source: Statistics Canada
January 2015
Slide 17
Calgary and region population
Source: City of Calgary Civic Census, City of Calgary Corporate Economics, Statistics Canada
1,065,455
1,071,515
1,090,936
1,120,225
1,156,686
1,195,1941,219,194
1,240,158
1,264,460
1,307,854
1,364,8271,313,919
1,338,010
1,363,595
1,409,064
1,468,689
900,000
1,100,000
1,300,000
1,500,000
2009 2010 2011 2012 2013 2014
Calgary’s population -
City, CMA, Economic Region
City of
Calgary
Calgary
CMA
Calgary
Economic
Region
• City of Calgary population is forecast to be 1.343 million by 2019 (City of Calgary Corporate Economics, Fall
2014)
• Calgary CMA is forecast to have a population of 1.529 million by 2018 (Conference Board of Canada, Autumn 2014)
• Calgary Economic Region is forecast to have a population of 1.732 million in 2019 (City of Calgary
Corporate Economics, Fall 2014)
January 2015
Slide 18
Population growth
13,677
25,557
17,631
12,44112,920
-4,154
9,563
19,658 19,067
28,017
8,906
9,887
10,552
9,695 9,643
10,214
9,858
9,361 10,260
10,491
-10,000
-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Population growth
2005-2014
City of Calgary
Natural Increase
Net Migration
Annual populationgrowthrate (%)
3.3%
3.3%2.7%
1.8%
0.6%
2.2%
2.3%
2.8%
3.7%
2.4%
Source: City of Calgary Civic Census
January 2015
Slide 19
Leading population growth
29.3%
27.5%
15.4%14.4%
13.6%
10.2%
Calgary Edmonton Toronto Vancouver Ottawa Montreal
Total population growth
2005-2014
Canadian CMAs
• Highest population growth in 2014 at 3.6 per cent (2014)
• Highest total population growth and average annual population growth over the past ten years (2005-2014), at a rate of 29.3 per cent and 2.9 per cent respectively
• City of Calgary’s population is 1.195 million (April 1, 2014)
• Calgary CMA’s population is 1.407 million (July 1, 2014)
• Calgary Economic Region’s population is 1.512 million (July 1, 2014)
Source: Statistics Canada
January 2015
Slide 20
Attracting migrants
• Boasts a net gain of 122,761 migrants over the past five years (2010-2014) and 237,687 migrants over the past 10 years (2005-2014)
• First in Canada in the number of overall net migrants per capita in 2014, at 17.5 migrants per 1,000 population
Source: Statistics Canada
20,615
21,449
23,348
25,002
24,512
13,901
11,341
30,794
42,138
24,587
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Overall net migration
Calgary CMA
2005-2014
January 2015
Slide 21
Coming from across Canada
75,151
66,474
17,08315,082
-42,425
-64,919
Calgary Edmonton Vancouver Ottawa Toronto Montreal
Total 10-year net
interprovincial migration
2005-2014
Canadian CMAs
• Maintained its lead in number of net interprovincial migrants over the past 10 years – a staggering 75,151 from 2005-2014, equal to an annual average of 7,515
Source: Statistics Canada
January 2015
Slide 22
Coming from within Alberta
403
3,085
3,565
2,855 2,855
2010 2011 2012 2013 2014
Net intraprovincial
migration
2010-2014
Calgary CMA
• Calgary has experienced increased migration into Calgary from other Alberta cities and rural areas over the the past five years
Source: Statistics Canada
January 2015
Slide 23
Source: Statistics Canada
Coming from around the world
12,845
6,494
18,580
21,497
19,740
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
2010 2011 2012 2013 2014
Net international migration
2010-2014
Calgary CMA• Over the past 5 years (2010-
2014), the number of net international migrants has increased by 79,156
• In 2014, Calgary placed fourth in the number of net international migrants after Toronto, Montreal and Vancouver
January 2015
Slide 24
Attracting newcomers
Top source countries for permanent residents2013
Calgary CMA
Source countryNumber of permanent
residentsDistribution (%)
All source countries 17,602 100.0
Philippines 3,000 17.0
India 2,361 13.4
People’s Republic of China 1,624 9.2
Pakistan 1,137 6.5
United States of America 714 4.1
Nigeria 628 3.6
United Kingdom and Colonies 611 3.5
Iran 464 2.6
Republic of Korea 330 1.9
United Arab Emirates 269 1.5
Top 10 source countries 12,449 70.7
Other source countries 5,153 29.3
Source: Citizenship and Immigration Canada
January 2015
Slide 25
Diverse population
47.0%45.2%
28.1%
22.8% 22.4%20.3%
Toronto Vancouver Calgary Ottawa Edmonton Montreal
Visible minority rate
2011 National Household
Survey
Canadian CMAs
• Among the highest visible minority rates in Canada
• Third after Toronto and Vancouver
• Calgary’s top visible minorities groups: South Asian, Chinese, Filipino
• Only 20.0 per cent of Calgarians identify Canada as location of origin/ancestry
• Most prevalent origins: English, Scottish, German, Irish
Source: Statistics Canada, 2011 National Household Survey
January 2015
Slide 26
Labour force growth
33.4%
30.3%
14.9% 14.3%13.5%
9.8%
Edmonton Calgary Ottawa Toronto VancouverEdmonton
Total labour force growth
2005-2014
Canadian CMAs
• Highest in labour force growth in 2014 at 2.8 per cent
• Second highest total labour force growth over the past 10 years (2005-2014) at 30.3 per cent
• Second highest average annual labour force growth over the past 10 years (2005-2014) at 2.8 per cent
Source: Statistics Canada
January 2015
Slide 27
Employment growth
32.6%
28.8%
14.7%13.3% 13.0%
10.4%
Edmonton Calgary Ottawa Vancouver Toronto Montreal
Total employment growth
2005-2014
Canadian CMAs
• Highest in employment growth in 2014 at 2.6 per cent
• Second highest total employment growth over the past 10 years (2005-2014) at 28.8 per cent
• Second highest average annual employment growth over the past 10 years (2005-2014) at 2.8 per cent
Source: Statistics Canada
January 2015
Slide 28
Engaged workforce
73.4%73.0%
69.9%
66.8%66.1%
64.7%
Calgary Edmonton Ottawa Toronto MontrealVancouver
Participation rate
2014
Canadian CMAs
• Consistently highest labour force participation rate every year for the past decade – 73.4% in 2014.
• Highest labour force participation rate over the past 10 years (2005-2014) with an average annual rate of 75.1 per cent
Source: Statistics Canada
January 2015
Slide 29
Low unemployment rate
5.0% 5.1%
5.8%
6.7%
8.0% 8.2%
Calgary EdmontonVancouver Ottawa Toronto Montreal
Unemployment rate
2014
Canadian CMAs
• Second lowest unemployment rate in 2013 at 4.9 per cent (after Edmonton with 4.8 per cent)
• Lowest average annual unemployment rate over the past 10 years (2004-2013) at 4.8 per cent
• Second lowest average annual unemployment rate over the past five years (2009-2013) at 5.8 per cent (after Edmonton with 5.7 per cent)
Source: Statistics Canada
January 2015
Slide 30
Large working-age population
• 47.7 per cent of Calgarians within the core working age group of 25 – 54 (Calgary
Economic Region, 2014)
• Highest employment-to-population ratio among major Canadian CMAs at 69.7
• Second youngest population among Canada’s major CMAs with a median age of 36.1 (2014)
Source: Statistics Canada
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70+
Population distribution
2014
Calgary Economic Region
January 2015
Slide 31
Productive workforce
$145,523
$118,376
$92,255 $91,469 $89,723$82,981
Calgary Edmonton Toronto Ottawa VancouverMontreal
Labour force productivity
2014
Canadian CMAs
• Consistently the highest labour force productivity in Canada -$145,523 in real GDP per worker in 2014
• Labour force productivity is a measure of the economic value of output per employee
Source: Statistics Canada, Conference Board of Canada
January 2015
Slide 32
Source: Statistics Canada
Employment diversityHistorical employment by industry
2010-2014Calgary Economic Region
Industry2010
Persons (000s)
2014 Persons(000s)
Change 2010-2014
(%)
Agriculture 10.4 4.9 -52.9%
Forestry, fishing, mining, quarrying, oil and gas 48.4 65.6 35.5%
Utilities 5.7 6 5.3%
Construction 72.2 93.2 29.1%
Manufacturing 48.1 52.6 9.4%
Trade 113.9 117.9 3.5%
Transportation and warehousing 42.9 52.5 22.4%
Finance, insurance, real estate and leasing 49.2 46.3 -5.9%
Professional, scientific and technical services 78.8 99.2 25.9%
Business, building and other support services 27.6 35.4 28.3%
Educational services 44.3 46 0.0%
Health care and social assistance 75 88.3 17.7%
Information, culture and recreation 36.3 31.1 -14.3%
Accommodation and food services 42.3 54.9 29.8%
Other services 34.8 39.1 12.4%
Public administration 23.4 24.1 3.0%
Other services 37.4 37.1 -0.8%
Public administration 26.3 25.6 -2.7%
All Industries 817.0 919.8 12.6%
January 2015
Slide 33
Source: Statistics Canada
Industry wages
Average overall wages by industry2014
Calgary CMAIndustry Hourly Rate
Agriculture, forestry, logging, fishing and hunting N/A
Mining, quarrying, and oil and gas extraction $43.66
Utilities $43.48
Construction $29.22
Manufacturing $28.31
Wholesale trade $29.94
Retail trade $16.99
Transportation and warehousing $26.88
Information and cultural industries $30.51
Finance, insurance, real estate and leasing $31.61
Professional, scientific, and technical services $35.95
Management of companies and enterprises N/A
Administrative and support, waste management and remediation services $21.17
Educational services $32.61
Health care & social assistance $29.80
Arts, entertainment and recreation $21.91
Accommodation and food services $15.04
Other services $22.80
Public administration $38.32
All industries $29.05
January 2015
Slide 34
Calgary’s economy
5.6%
4.5%
2.9%
2.4%
2.1%
0.5%
EdmontonCalgaryVancouverToronto Montreal Ottawa
Real GDP growth
2014
Canadian CMAs
• Second among major Canadian cities in real GDP growth in 2014 at 4.5 per cent
• Second highest total real GDP growth over the past 10 years (2005-2014) at 32.4 per cent
• Second highest 10-year average annual real GDP growth rate of 3.4 per cent (2005-2014)
• Conference Board of Canada forecasts a real GDP growth rate of 1.5 per cent for 2015, 2.8 per cent for 2016-2019, and 3.5 per cent for 2010-2019 (Winter 2015)
Source: Conference Board of Canada
January 2015
Slide 35
Highest retail sales
59.8%
52.6%
38.8%36.1% 35.3%
33.5%
Edmonton Calgary Ottawa Toronto Vancouver Montreal
Total retail sales growth
2005-2014
Canadian CMAs
• Second highest total growth in retail
sales over the past 10 years (2005-
2014) at 52.6 per cent
• Second highest average annual retail
sales growth over the past 10 years
(2005-2014) at 5.8 per cent
• Highest retail sales per capita in 2014
at $19,573
• Second highest average annual
growth in retail sales per capita over
the past 10 years (2005-2014) at 2.8
per cent
Sources: Conference Board of Canada, Statistics Canada
January 2015
Slide 36
Small business drives economy
39.5 38.536.7
34.1
28.025.0
Calgary Vancouver Edmonton Toronto Montreal Ottawa
Small business per capita
(per 1,000 Population)
2014
Canadian CMAs
• Largest concentration of small businesses among Canadian cities on a per capita basis at 39.5 (per 1,000 population) in 2014
• Highest number of self-employed per capita in Canada in 2014 at 91.2 per 1,000 population
• Young entrepreneurs
• The largest group of Calgary entrepreneurs were in the 45-54 age group (28.2 per cent), followed by 35-44 age group (24.2 per cent)
Source: Statistics Canada
January 2015
Slide 37
Successful businesses
• Calgary CMA experienced a dramatic decrease of 87.2 per cent in business bankruptcies over a 10-year period (2004-2013) to 74 in 2013 from 579 in 2004
• Of Alberta's 230 business bankruptcies in 2013, 32.2 per cent were from Calgary CMA
Source: Industry Canada
579
419
267
190
176147116
95 8674
0
100
200
300
400
500
600
700
2004200520062007200820092010201120122013
Business bankruptcies
2004-2013
Calgary CMA
January 2015
Slide 38
Low rate of business bankruptcies
• Of Canada’s major CMAs, Calgary ranked third in terms of lowest business bankruptcy rates per 1,000 businesses in 2013, at 0.6 per cent
Source: Industry Canada
0.2%0.3%
1.0%
1.7%
3.6%
Edmonton Vancouver Calgary Toronto Ottawa Montreal
Business bankruptcy rates
(per 1,000 businesses)
2013
Canadian CMAs
0.7%
January 2015
Slide 39
Western Canada’s head office centre
10.3
4.33.9
2.0 1.9
1.1
Calgary Toronto Vancouver Montreal Edmonton Ottawa
Corporate head offices
(per 100,000 population)
2013
Canadian CMAs• 132 Calgary-based companies
on the FP500 list; eight are among the top 50 in Canada
• Calgary has experienced a 48.3 per cent growth in head offices over past ten years (2004-2013)
• Highest concentration of head offices per capita in Canada, at 9.7 per 100,000 population
• Highest head office per capita growth for the period 2004–2013, at 14.5 per cent
Source: FP500 2013 Database; FP500 2004 Database
January 2015
Slide 40
Source: Statistics Canada
Calgary’s economic diversity
Business establishments by industry2010-2014
Calgary Economic RegionIndustry 2014
Agriculture, forestry, fishing and hunting 622
Mining, quarrying and oil and gas extraction 1,614
Utilities 114
Construction 7,791
Manufacturing 1,850
Wholesale trade 2,753
Retail trade 5,232
Transportation and warehousing 2,417
Information and cultural industries 507
Finance, insurance, real estate and rental and leasing 4,533
Professional, scientific and technical services 13,236
Management of companies and enterprises 849
Administrative and support, waste management & remediation services 2,943
Educational services 714
Health care and social assistance 4,172
Arts, entertainment and recreation 529
Accommodation and food services 3,236
Other services (except Public administration) 4,753
Public administration 86
All industries 57,951
January 2015
Slide 41
Source: Conference Board of Canada
Calgary’s economic diversityHistorical GDP by industry
2010-2014Calgary CMA
Industry2010
(2007 $ Millions)2014
(2007 $ Millions)
Total Change 2010-2014
(%)
Goods-producing industries 44,233 53,596 21.2%
Manufacturing 5,778 6,848 18.5%
Construction 7,985 11,347 42.1%
Primary and utilities 30,470 35,401 16.2%
Services-producing industries 53,533 62,470 16.7%
Transportation and warehousing 4,186 5,095 21.7%
Information and cultural industries 3,116 3,275 5.1%
Wholesale and retail trade 7,548 9,447 25.2%
Finance, insurance and real estate and leasing 15,270 17,408 14.0%
Business services 9,429 11,629 23.3%
Personal services 3,786 4,453 17.6%
Non-commercial services 6,979 8,024 15.0%
Public administration and defence 3,218 3,139 -2.5%
All industries 97,766 116,066 18.7%
January 2015
Slide 42
Source: Conference Board of Canada
Calgary’s economic diversityForecast GDP by industry
2015–2019Calgary CMA
Industry2015
(2007 $ Millions)2019
(2007 $ Millions)
Total change2015-2019
(%)
Goods-producing industries 51,579 54,397 5.5%
Manufacturing 6,917 7,846 13.4%
Construction 10,076 10,349 2.7%
Primary and utilities 34,586 36,203 4.7%
Services-producing industries 63,142 70,948 12.4%
Transportation and warehousing 4,937 5,213 5.6%
Information and cultural industries 3,307 3,598 8.8%
Wholesale and retail trade 9,334 10,292 10.3%
Finance, insurance and real estate and leasing 17,874 20,227 13.2%
Business services 11,826 13,349 12.9%
Personal services 4,524 5,395 19.2%
Non-commercial services 8,185 9,419 15.1%
Public administration and defence 3,155 3,455 9.5%
All industries 114,721 125,345 9.3%
January 2015
Slide 43
Economic indicator summary
Sources: Statistics Canada, Conference Board of Canada, CREB, CB Richard Ellis, CMHC, Alberta Enterprise and Advanced Education
Summary of current real estate / construction indicators - Calgary
Indicator Date ValueChange/Rate
(%)Geography
Housing starts - numberChange over year
Year-to-date Feb. 2015
1,538 -40.8% CMA
Building permit values Change over year
Year-to-dateJan. 2015
$359.7 Million -33.9% CER
Major Calgary project values 1Change over year
Mar. 2015 $19.5 Billion 4.3% City of Calgary
Benchmark Calgary house price (single family)Change over year
Dec. 2014 $510,900 8.2% City of Calgary
Downtown office vacancy rateQ4 2014 9.8% City of Calgary
Suburban office vacancy rateQ4 2014 13.1% City of Calgary
Industrial real estate vacancy rate Q4 2014 3.4% City of Calgary
1 On hold projects removed from total value
January 2015
Slide 44
Strong construction activity
122.1%
86.9%
54.7%
47.4%
34.6%
26.3%
Edmonton Calgary Montreal Ottawa Toronto Vancouver
10 year total growth in
total building permits
2005-2014
Canadian CMAs
• Second highest total growth in total building permits over the past ten years (2005-2014) at 86.9 per cent
• Second highest total growth in residential building permits over the past ten years (2005-2014), at a rate of 96.5 per cent
• Second highest total growth in non-residential building permits over a 5 year period (2010-2014) at 108.4 per cent
Source: Statistics Canada
January 2015
Slide 45
Source: Alberta Innovation and Advanced Education
Calgary major projects (as at March 2015)
Company name Project descriptionProject cost ($ Millions)
Timing Status
WAM Development Group / AIMCo'Stonegate Landing' Retail, Office and Industrial $3,000 2010-2021 Under Construction
Calgary Airport Authority International Transborder Concourse $1,427 2011-2015 Under Construction
ENMAX Energy Corp. / Capital Power Corp. 'Shepard Energy Centre' Power Plant $1,400 2011-2015 Under Construction
Government of Alberta / Alberta Cancer Foundation Calgary Cancer Project $1,200 2016-2020 Announced
Brookfield Properties Ltd. 'Brookfield Place Calgary' Office Towers $1,000 2013-2017 Under Construction
Alberta Health and WellnessFoothills Medical Centre Upgrade (McCaig Tower) $550.6 2006-2016 Under Construction
Shepard Development Corp. Office Building Campus (Ten Buildings) $500 2014-2019 Announced
Oxford Properties Oxford Airport Business Park $500 2011-2019 Under Construction
ATCO Pipelines High-pressure natural gas pipeline network $450 Completion by 2018 Announced
Calgary projects
January 2015
Slide 46
Source: CB Richard Ellis
Office and industrial market
5.1%
9.8%
12.9%
15.7%
9.8%
13.2%
12.1%
17.3%
13.1%
3.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Class AA Class A Class B Class C Total
Vacancy rates by market: Calgary
Q4 2014
Downtown Office
Suburban Office
Industrial
January 2015
Slide 47
Source: City of Calgary
Non-residential taxes - 2014
Calgary’s non-residential municipal tax rate 0.0106938
Calgary’s non-residential provincial tax rate 0.0034170
Calgary’s total non-residential tax rate 0.0141108
Calgary’s business tax rate* 0.0758
Alberta has no inventory tax, no machinery and equipment tax, and no payroll tax
* It should be noted that the City of Calgary is consolidating the business tax with the non-residential
property tax. This is an incremental process, culminating with the elimination of the business tax by
2019.
January 2015
Slide 48
Housing market affordability
Census metropolitan
area
Average price
Qualifying
income
Affordability measure
Vancouver $906,400 $164,400 85.6
Toronto $725,600 $141,500 65.6
Montreal $399,900 $82,700 48.1
Ottawa $413,800 $93,600 37.7
Edmonton $410,000 $86,400 36.3
Calgary $500,300 $98,200 33.9
Canada $449,900 $92,200 48.1
• On average, Calgary still offers more affordable* housing than Vancouver, Toronto, Montreal, Ottawa, Edmonton and the national average.
* The Royal Bank Housing Affordability Index measures a house price in relation to the total payments required for a mortgage, utilities and property tax. The higher the measure, the more difficult it is to afford a house.
Standard two-storey house Q4 2014
Source: RBC Economics. Housing Trends & Affordability, March 2015
January 2015
Slide 49
Low property taxes
$1,587
$1,842 $1,913
$2,212
Calgary Vancouver Edmonton Toronto
Municipal property tax for
a representative*
single family house
2013
Select Canadian CMAs
• Calgary’s residential property taxes are among the lowest of any major Canadian city
* Representative single family house is defined as 25-35 years old, 3 bedroom bungalow, main floor 1,200 square feet, double car garage, finished basement located in average neighbourhood of city
Source: City of Calgary, 2013 Residential Property Taxes and Utility Charges Survey
January 2015
Slide 50
Low property taxes
$4,866
$4,984
$5,226
Toronto Calgary Edmonton
Total property tax and utility
charges for a
representative*
single family house, 2013
Select Canadian CMAs• Calgary’s residential property
taxes are among the lowest of any major Canadian city
* Representative single family house is defined as 25-35 years old, 3 bedroom bungalow, main floor 1,200 square feet, double car garage, finished basement located in average neighbourhood of city
Source: City of Calgary, 2013 Residential Property Taxes and Utility Charges Survey
January 2015
Slide 51
Alberta’s tax advantages
Most competitive provincial corporate tax jurisdiction in Canada
• Corporate income tax 10 %
• Sales tax 0 %
• Payroll tax 0 %
• Inventory tax 0 %
Lowest provincial personal income tax rate in Canada
• Marginal personal income tax rate 10 %
January 2015
Slide 52
Source: Alberta International and Intergovernmental Relations
Alberta’s trade strength
Alberta’s exports in 2012 ($95.9 billion)
• Oil (including oil sands) - $57.9 billion
• Gas & natural gas liquids - $8.6 billion
• Chemicals - $6.9 billion
• Food, feed & beverage - $3.5 billion
• Energy (including mining) - $69.7 billion (72.7 per cent of total Alberta exports)
United States - $83.0 billion
China - $3.7 billion
Japan - $2.0 billion
Mexico - $1.0 billion
January 2015
Slide 53
Source: Alberta International and Intergovernmental Relations,
Alberta’s trade strength
Alberta’s imports in 2012 ($27.4 billion)
• Mineral fuels, oil fuels etc. - $5.6 billion
• Machinery - $5.4 billion
• Iron/steel products - $2.2 billion
• Electrical machinery - $2.0 billion
United States - $18.0 billion
China - $2.8 billion
Mexico - $1.5 billion
Germany - $0.5 billion
Note: Imports are direct into Alberta and does not include imports going to another province before entering Alberta
January 2015
Slide 54
Source: Alberta Innovation and Advanced Education
Alberta projects
Alberta major projects summary (as at March 2015)
Sector # of projectsValue of all projects
($ millions)
Agriculture and Related 5 $384.8
Commercial / Retail 81 $9,441.2
Commercial / Retail and Residential 18 $4,016.0
Infrastructure 161 $9,838.6
Institutional 108 $6,484.1
Oil and Gas 12 $5,955.0
Oil Sands 47 $103,409.0
Other Sectors 14 $2,011.8
Pipelines 28 $20,986.2
Power 19 $11,592.8
Residential 112 $3,996.4
Tourism / Recreation 100 $4,218.6
Total 705 $182,334.5
January 2015
Slide 55
Source: Canadian Association of Petroleum Producers (CAPP)
Canadian oil sands and conventional oil production outlook
Oil and oil sands
January 2015
Slide 56
Source: Canadian Association of Petroleum Producers (CAPP)
Western Canadian oil sands and conventional oil production outlook
Oil sands in Western Canada
January 2015
Slide 57
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