Report to:
SUBJECT: Competitiveness Strategy. Phase One Report
PREPARED BY:
RECOMMENDATION:
That the report entitled “Competitiveness Strategy. Phase One Report” be received;
And that Staff be authorized and directed to take the actions set out in this report;
And Council approve the
expenditure of $26,000.00 for Phase Two (Community Consultation Event) of the
Competitiveness Strategy study to be funded from the Markham Competitiveness
Strategy capital account #86-5399-6776-005;
And that Staff be authorized and directed to do all things necessary to give effect to this resolution.
EXECUTIVE SUMMARY:
A Phase One Report, “Economic
Sectors Analysis” has been prepared by urbanMetrics inc. with input from
members of Council, Town staff and the business community, as input to the
development of a new 10-year Economic Competitiveness Strategy for
The results of the
report confirm that the Town has had measurable success as a centre of
technology-based business and has achieved an enviable reputation as a superior
location for business investment. However, there are challenges confronting
The opportunities for
Phase Two of the
development of
FINANCIAL CONSIDERATIONS:
The cost to host Phase Two of the Competitiveness Strategy will total an estimated $26,000.00 based on the following planned expenditures (minus anticipated revenues and sponsorships):
$15,000.00 Half-day event at Angus Glen Golf Club (for 150 persons)
$ 3,500.00 Promotion and marketing expense (ads and brochure materials)
$ 7,500.00 Event management
$26,000.00
- 10,000.00 Potential sponsorships
$16,000.00
The cost of Phase Three of the
Competitiveness Strategy will be the subject of a separate report to be
presented to Council following the community consultations (in April).
1.
Purpose 2. Background 3. Discussion 4. Financial
5. Others (Environmental,
Accessibility, Engage 21st, Affected Units) 6. Attachment(s)
PURPOSE:
To inform Council regarding the
findings of the Phase One Economic Sectors Analysis report, and to recommend
the next steps for development of the Town’s 10-year
BACKGROUND:
The Town of
A new
10-year Economic Competitiveness Strategy is being developed in a three phase
process.
Phase One. Economic
Sectors Analysis:
The Analysis has been
prepared by a qualified consulting firm, urbanMetrics inc. with input from
members of Council, Town staff and the business community. The purpose of the
Economic Base Analysis has been to critically review the Town’s position as a
high-tech capital/centre for technology, to produce a SWOT analysis (strengths,
weaknesses, opportunities, and threats), and to make recommendations to be
addressed in the development of the 10-year Competitiveness Strategy. The
results of Phase One will serve to inform the following two phases of the
Economic Competitiveness Strategy process.
Phase Two. Community
Consultation Event:
The release of the
Economic Sectors Analysis report begins Phase Two -- Community Consultation.
This consultation will occur over the month of March featuring a significant
community engagement: a half-day of presentations and facilitated workshops
including a luncheon speaker, to be hosted by the Town at Angus Glen Golf Club
on March 21. The half-day event will bring together approximately 150
representatives of the Markham community, including representatives from
business, education, and government, for the purpose of reviewing the
results/outputs thus far of the Phase One Economic Sectors Analysis, and to
provide input and advice on the selection o
Phase Three. Final Research
and Preparation of the 10-year Strategy:
The third phase of the
strategy development process will use the identified priorities to focus on the
development of 2 or 3 Business Plans on the subject of identified opportunities
regarded as critical to
OPTIONS/ DISCUSSION:
In the fall and winter of 2006, the consulting firm
urbanMetrics inc. completed an Economic Sectors Analysis (Phase I to a broader
Competitiveness Strategy study program) in order to provide the Town with an
understanding of the economic sectors
of importance to Markham and to provide context and input to the development of
the Town’s 10-year economic development strategy (targeted for presentation to
Council in September 2007). A central
goal of the Economic Sectors Analysis was the need to better understand
The report’s findings confirm
·
·
·
·
A high
proportion of
·
The dominant fields of post secondary study by
·
A very significant portion of the resident
labour force continues to commute to employment outside of
·
The comparatively high average cost of housing
in
·
While a
higher cost of living and costs to business is evident,
·
The Town of
·
Among service-producing industries, the business
services sector is the single-largest employer in
·
There has been an increase in the number of
Professional, Scientific and Technical Service firms in the Town, now totaling
2,163 firms. While it is anticipated that many of these firms individually
employ a small number of people, this sector continues to represent a
significant opportunity for the Town in terms of investment attraction efforts,
as it re
·
The Finance Services sector also represents a
significant opportunity for the Town of
· The Town performs well against other jurisdictions when consideration is given to a range of business cost variables and key economic and innovation indicators. Business costs are competitive with select jurisdictions within the Greater Toronto Area, and the Town has the capacity to support the growth of innovative firms, institutions and people.
·
There is a positive business climate in
·
The Town has made significant and successful commitments
to strategic collaborations aimed at distinguishing
·
In terms of industrial/employment land
development,
Based on the results of the Economic Sector Analysis, the following recommendations have been provided to the Town for consideration in the development of its economic development strategy:
1. The Town needs to articulate a clear vision
for the community as it transitions from a suburban community to an urban
growth centre. This has implications for the type of housing that needs to be
created, the type of industry it should be trying to attract and the type of
amenities that it will need to provide its residents. This vision also needs to
reflect an appeal to a younger workforce.
2. The Town should focus its business attraction
and support efforts in 4 key sectors, with particular emphasis on pursuing
attraction and investments by value-added functions such as R&D:
o
The convergence of ICT and Life Sciences as
evidenced by Markham’s strength in advanced manufacturing – in particular
electrical equipment and component manufacturing, magnetic and optical media
manufacturing, medical equipment manufacturing, navigational, measuring,
medical and control instrument manufacturing and industrial machinery
manufacturing;
o
Information, Entertainment and Cultural
Industries – in particular software publishers, data processing services,
telecommunication firms and advertising firms, and the advantages inherent in
the diversity of Markham’s population;
o
Professional, Scientific and Technical Services
– in particular computer systems design and related services, architectural,
engineering and related services and other business services;
o
Finance and Insurance – in particular head
office and back office operations.
3.
More direct involvement with the business community is
required to better understand the value that
4. The Town has benefited from its investment in and continued participation in key economic development organizations including the Innovation Synergy Centre (ISCM), YORKbiotech, and the Toronto Region Research Alliance. The Town should make multiple-year commitments (to strengthen the viability of these organizations), and increase its level of involvement with its economic development partners, particularly those that are focused on external investment and attraction e.g. TRRA, GTMA and the Province.
5. In identifying the target markets for these
investment attraction efforts it is apparent that both the GTMA and the
Province are targeting the same jurisdictions. It would be appropriate to have
6. It is important for the Town to retain the
employment lands it currently has for office building and industrial
development. The limited availability of
very large parcels of land is a significant constraint to future world-class
investment in
7. The
8.
In order
to demonstrate the success or effectiveness of the Town’s economic development
program, consideration needs to
be given to a range of metrics that illustrate its progress. These should be
developed in conjunction with the business community, and be made specific to program
delivery objectives.
Next Steps
It is recommended that the Phase One report
be released for review and discussion, and that staff proceed with the
organization of the Phase Two communications and event at Angus Glen Golf Club.
FINANCIAL TEMPLATE: (external link)
None.
ENVIRONMENTAL CONSIDERATIONS:
None.
ACCESSIBILITY CONSIDERATIONS:
None.
ENGAGE 21ST CONSIDERATIONS:
The Economic Competitiveness
Strategy study is designed to be supportive of the Town’s
BUSINESS UNITS CONSULTED AND AFFECTED:
RECOMMENDED
BY: ________________________ ________________________
ATTACHMENTS:
A. Economic Sectors Analysis report
B. Business Survey and Focus Group Results