April 18, 2006
REPORT TO ECONOMIC DEVELOPMENT
COMMITTEE
SUBJECT: Markham High-Tech Industry and Life
Sciences Cluster
CONTACT/AUTHOR: Darren Ciastko, Sr.
Business Development Officer x 2655
RECOMMENDATION:
That the report entitled “Markham High-Tech Industry and Life Sciences Cluster”
be received.
EXECUTIVE SUMMARY:
Markham’s
high-technology industry and the life sciences sector are the two main areas of
focus for the Economic Development Department’s
activities in business development and marketing. Recognized as Canada’s
“High-Tech” Capital, Markham
has a total of 915 high-tech companies that continue to grow and prosper. Markham’s
life sciences sector is also fast becoming recognized for its innovation and
expertise with an estimated total of 104 companies. Markham’s
High-Tech Industry accounts for employment in excess of 31,800 jobs of which
most are highly skilled and technical in nature.
The demonstrated
growth and diversity of businesses in these two clusters (high-tech and life
science) are indications of Markham’s
continued competitive strength as a preferred location for these enterprises.
This survey information will be a valuable input into the Town’s
“Competitiveness Strategy” study that will examine how best to grow and
strengthen Markham’s market share
in these dynamic sectors of the economy.
FINANCIAL CONSIDERATIONS:
Not Applicable
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Stephen Chait, Ec.D., CMC
Director of Economic Development
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Jim Baird,
M.C.I.P., R.P.P.
Commissioner of Development Services
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In February 1997 York Regional Council directed
York Region staff to develop the York Region Employment Database System in
partnership with Human Resources Development Canada, area municipalities and
the business community. The initial face
to face survey was conducted in the summer of 1998 by students with every
business in the Region’s employment areas. The 1998 survey functioned as the
base year data set for future analyses. Subsequent surveys were conducted in
2001 and 2002 however they were limited in scope due to a lack of continued
area municipal participation. As a result, not all of the Region’s employment
areas were surveyed which meant that updated/new data for all of the Region’s
businesses could not be provided.
In the spring of 2003 York Regional staff
initiated the new Municipal Employment Database Working Group made up of
economic development professionals from each of the Region’s nine
municipalities. The role of the working
group was to redesign the survey, encourage additional municipal funding to
increase the scope of the survey which would effectively create a new base year
data set and finally, design an electronic application which would enable each
municipality and its business community to interact more effectively and allow
for easy updating of company information.
The working group continues to meet annually to set targets, review
progress and ensure that the program remains active and relevant. Data collected in the surveys is made available
for monitoring local economic trends, analyzing and marketing local business
sectors, creating business attraction and retention strategies, forecasting
infrastructure and hard service requirements, and transit service
planning. In addition the data collected
through the survey is used to build Markham’s online business directory, YLMTM (YourLocalMarketplace)
For the past 3 years, the Markham Economic Development Department contributed funding to
the regional business and employment survey in the following manner:
2003
- Funding for a full student surveyor (approx $9,000)
2004
- Funding equivalent to a half student surveyor (approx $4,500)
2005
- Funding equivalent to a half student surveyor (approx $5,000)
For the 2006 York Region business and
employment survey, the Markham Economic Development Department will fund a full time student
surveyor to focus solely on surveying Markham employment areas.
Business and
Employment Survey Results
The 2004 and 2005 surveys have been conducted
and were completed within the period of May to August by a group of summer
students. Attachment 1 “York Region Business and Employment
Survey 2005” is a copy of the survey form which illustrates the type of information
collected. To increase awareness and to help encourage business participation
in the survey, advertisements were run in the local newspapers and students
were equipped with York Region identification and a letter of introduction from
the Mayor and Regional Chair. The survey
results have been analyzed and finalized for 2004. The 2005 results are expected to be available
for presentation to Council in the Fall of 2006.
The survey results for 2004 were
based on the survey of 3,219 businesses of the total 7,150 businesses in the Markham database, approximately 45% of the
total. With the introduction of the
online business directory application and the addition of Statistics Canada
records, there are approximately 12,000 organizations currently in the
database. In 2006 and in subsequent
years as more companies participate in the online business directory program, fewer
resources will be required to maintain or increase the coverage area of the
survey.
High-Tech Industry and
Life Sciences Sector Analysis
The Town’s corporate goal for Economic Development is to establish, promote and support
Markham as the best location for diverse high-tech and
related business. Markham has been Canada’s “High-Tech” Capital since 1997 based on
the fact that Markham has the largest per capita concentration of high-technology businesses. The industry continues to grow and
strengthen with a total of 915 high-tech companies at the end of 2004. Markham is also earning a new reputation for the
rapidly-expanding life sciences sector. With 104 companies involved in the
development, production and distribution of pharmaceuticals, medical devices
and products for the emerging sectors, Markham’s life sciences cluster is fast becoming
recognized for its innovation and expertise.
The Economic Development Department monitors the growth of
the high-tech industry annually and applies an accepted and credible
methodology using industry classification codes established through the North
American Industry Classification System (NAICS) to identify High-Tech and Life
Sciences companies.
Based on the final results of the 2004 employment survey, it is
estimated that there are at least 915 high-tech companies located in the Town
of Markham which generate approximately 31,800
jobs. This represents a 5.6% growth in
companies and a 6% growth in high-tech employment between 2003 and 2004. The following table provides a summary
analysis of Markham’s high-tech industry.
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North
American Industrial Classification
(NAIC)
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Industry
Jobs
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# of
Firms
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Top Industry
Employers in 2004
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Electric Power Generation,
Transmission and Distribution
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140
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2
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Markham Hydro Electric Commission
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Ontario Hydro
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Pharmaceutical and Medicine
Manufacturing
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585
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11
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Novopharm
Ltd.
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Drug
Trading Company
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Computer and Peripheral
Equipment Manufacturing
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3146
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19
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ATI
Technologies Inc.
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Surface
Mount Technologies Centre
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Communications Equipment
Manufacturing
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255
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7
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Kaval
Wireless Technologies Ltd.
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Navtel
Communications Inc.
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Audio and Video Equipment
Manufacturing
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230
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5
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Cabletel
Communications Corporation
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Indigo
Manufacturing Inc.
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Semiconductor and Other
Electronic Component Manufacturing
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1078
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16
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Span
Manufacturing Ltd.
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Adeptron
Technologies Corp.
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Navigational, Measuring,
Medical and Control Instruments Manufacturing
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325
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10
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Creation
Technologies Inc.
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CableTest
Systems Inc.
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Manufacturing and
Reproducing Magnetic and Optical Media
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5
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1
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CYM
Graphics Inc.
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Electrical Equipment
Manufacturing
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79
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14
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Telepanel
Systems Inc.
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Synthane
Taylor Corporation
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Other Electrical Equipment
and Component Manufacturing
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540
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13
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Tyco
Electronics Canada Ltd
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Indigo
Manufacturing
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Medical Equipment and
Supplies Manufacturing
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66
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10
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ADL
Dental Laboratories Inc
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Thumper
Massager Inc.
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Computer and Communications
Equipment and Supplies Wholesaler-Distributors
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3796
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160
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Toshiba
of Canada Ltd.
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Cannon
Canada Inc.
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Apple
Canada Inc.
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Software Publishers
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234
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6
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Data
Mirror
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McAfee
Software Canada Inc.
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Telecommunications
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662
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17
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Cygnal
Technologies Corporation
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Bell Canada
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Pharmaceuticals,
Toiletries, Cosmetics and Sundries Wholesaler-Distributors
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657
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19
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Allergan
Inc.
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Shiseido
Canada Inc
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Internet Service Providers,
Web Search Portals
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221
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12
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BCE
Emergis
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Yellow
Online Inc.
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Data Processing Services
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290
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6
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AJD
Data Services
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Southport Data Systems
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Geophysical Surveying and
Mapping Services and Testing Laboratories
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384
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10
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J.
D. Barnes Ltd.
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Innopharm
– A CPL Company
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Specialized Design Services
- Graphic Design Services
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419
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43
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CMI
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PG
(E) tools
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Computer Systems Design and
Related Services
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13011
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246
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IBM
Canada Ltd.
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Sun
Microsystems of Canada Inc.
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DST
Output Canada Inc.
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Management, Scientific and
Technical Consulting Services
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1113
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96
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The
FSA Group (Fulfillment Solutions Advantage Inc)
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Gartner
Lee Ltd.
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Scientific Research and
Development Services
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680
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17
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Hewlett Packard (Canada) Ltd.
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Wyeth
Canada
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Other Professional,
Scientific and Technical Services
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1436
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58
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Black
Photo Corp.
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Matrix
Research Ltd.
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Management of Companies and
Enterprises
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1187
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11
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Motorola
Canada Ltd.
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Supercom
Canada Ltd
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Medical and Diagnostic
Laboratories
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263
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20
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Vita-Tech
Laboratories
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MDS
Laboratories
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Electronic and Precision
Equipment Repair and Maintenance
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548
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55
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Binney
& Smith Canada
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Service
Results Technology Inc.
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Companies that did not show
an NAIC code
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500
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31
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NEC
- Mitsubishi Electronics Display Canada
· Ironside Technologies Inc
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Total
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31,850
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915
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Due to the recent growth and
focussed effort of staff to grow and support Markham’s life sciences sector, it is
worthy to have a look at the life sciences sector independently. Based on the 2004 survey results there are an
estimated 104 life sciences companies that employ approximately 3,500 people.
Below is a breakdown of Markham’s life science sector. Most of the firms that make up Markham’s life sciences sector are also
considered to be high-tech which demonstrates that Markham is becoming a leader in convergent
technologies.
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North
American Industrial Classification
(NAIC)
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Industry
Jobs
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# of
Firms
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Top
Industry Employers in 2004
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Computer
Systems Design and Related Services
(life sciences)
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168
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11
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GE
Healthcare Technologies
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York-Med
Systems Inc.
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Management of
Companies and Enterprises (life sciences)
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751
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8
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Katz
Group Canada Ltd. (Drug Trading)
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Medical and
Diagnostic Laboratories
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263
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20
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Vita-Tech
Laboratories
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Medical Equipment and
Supplies Manufacturing
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66
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10
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ADL
Dental Laboratories Inc
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Navigational, Measuring,
Medical and Control Instruments Manufacturing
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325
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10
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Creation
Technologies Inc.
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Pharmaceutical
and Medicine Manufacturing
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585
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11
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Novopharm
Ltd.
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Drug
Trading Company Limited
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Pharmaceuticals,
Toiletries, Cosmetics and Sundries Wholesaler-Distributors
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657
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19
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Allergan
Inc.
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Shiseido
Canada Inc
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Scientific Research and
Development Services
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680
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17
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Wyeth
Canada
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Cytochroma
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Total
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3495
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104
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Focussed Efforts to Grow Markham’s Life Sciences Sector
The Town of Markham and York Region together with York University and the National Research Council,
with support from the Ontario government, are founding partners
of the YORKbiotech Regional Innovation Network. YORKbiotech is a powerful
regional innovation network that brings together companies, industry
associations, research and education institutions, hospitals, municipalities
and government organizations to drive economic development in biotechnology and
related industries. It acts as a catalyst to promote industry growth and
convergence among Life Sciences and ICT industries. YORKbiotech can assist
businesses to become established and grow in the region by networking them with
other key stakeholders, enhancing access to business services and financial
support, developing alliances and partnerships among companies and research
institutions and supporting commercialization.
In September of 2005, the YORKbiotech regional
innovation network successfully implemented three key activities: 1) The
arrangement for over 40 York Region high school students and teachers to visit
and see first hand the “Seeing Science in Action” program at 4 companies (three
of which are Markham based): Vita-Tech, the IBM R&D Lab, Pfizer and Sanofi.
The feedback received for the “Seeing Science in Action” tours was extremely
positive and all participants look forward to repeating the tours in 2006. 2) The
Town was the host site for a reception to celebrate National Biotechnology
Week. Over 100 business, academia and government officials attended the
reception and presentations. 3) The Town officially declared September
26 – 30, 2005
as Biotech Week as part of Imagenenation National Biotech Week.
2004 High Tech Industry and Life Science
Sector Analysis – Summary and Activities
Markham’s high-tech industry including the life
sciences sector employs approximately 31,800 people and continues to attract
new technology and life science investment.
In 2004 and 2005 there were a number of new and existing firms that announced
to expand and relocate in Markham. For example: TEVA/Novopharm is investing $20 million into the expansion of
its penicillin production facility; CGI consolidated a large portion of its GTA
offices in Markham and when construction is completed on their second office
building, CGI will employ 2,000 in Markham; Giesecke & Devrient
has begun construction of a new 130,000 sq. ft. security card manufacturing
plant in Markham; leading antivirus software producer, Panda Software which is
based in Spain, has set up its Canadian head office in Markham; Ecotech, a leading environmental engineering
firm formed a joint venture office with Wuhan
University and has set up an office in Markham; Pfizer Canada has made Markham
home to its Consumer Heathcare division employing
over 200 new jobs; and finally, Honeywell has announced that Markham Centre
will be the new home of its new 80,000 square foot Canadian headquarters.