Halton Economic Quarterly Reports header

Q2 2011 Report

Economic Development 

April - June 2011

Province Invests Millions in Burlington Eco-Company

EcoSynthetix Logo   

The Ministry of Research and Innovation has announced that it is investing $3 million in Burlington's EcoSynthetix Inc. EcoSynthetix is a bio-based polymer company providing environmentally friendly alternatives to petroleum based products in the paper industry.

 

Currently, the industry standard for chemically-coated marketing and packaging materials is petrochemical-based polymers. EcoSynthetix is changing the game with its EcoSphere biolatex binder, a starch-based feedstock which is carbon neutral and sustainable polymer.

 

That is why Ontario is investing in EcoSynthetix through the Innovation Demonstration Fund (IDF). The funds will go to the creation of a Global Innovation and Technology Centre in Burlington which will house a biolatex pilot plant. This is where the eco-friendly chemical will be developed and commercialized.

 

"The IDF was a major component in the decision to consolidate our headquarters and research and development offices from Michigan to Burlington. Government funding has been a major catalyst to making significant growth," said EcoSynthetix CEO, John van Leeuwen.

 

The company has already grown from just 5 employees to 20, and has seen more than 650 per cent revenue growth.

 

"We expect to hire about 20 more employees as a direct result of the pilot plant," said EcoSynthetix CFO Robert Haire.

 

(Source: Ministry of Research and Innovation, April, 2011)

Preferred Proponent Selected for New Oakville Hospital Project

    

Infrastructure Ontario and Halton Healthcare Services announced Hospital Infrastructure Partners is the preferred proponent selected to design, build, finance and maintain the new replacement Oakville Hospital.

 

The Hospital Infrastructure Partners team includes: 

  • Developer: Carillion Canada Inc., Ellis Don Corporation, Fengate
  • Capital Management Limited
  • Design: Parkin Architect in joint venture with Adamson Associates Architects
  • Construction: Carillion Canada Inc., Ellis Don Corporation
  • Facilities Advisor: Fengate Capital Management Limited, Scotia Capital

The new Oakville Hospital will be a state-of-the-art facility with a full range of healthcare services. The hospital will be designed and built with a goal of achieving LEED Silver certification.

 

Construction, which is expected to begin in summer 2011, will create spin off jobs in the community and will stimulate economic development in the region.  

 

(Source: Canadian News Wire, June 7, 2011)

Green Technology Business Centre Proposed in Milton

    

DelRidge Homes and GreenLife Energy have joined forces to bring Canada's most progressive office building in the field of sustainable technology to Milton. GreenLife Business Centre, located on 450 Bronte Street will demand approximately 22% of the normal amount of operational energy at about 137,500 kwh of energy per year.  It will also produce approximately 328,000 kwh/year from a dynamic fully oriented 250,000 watt PV array.

 

Through the use of their own well developed and evolving building system called EnerBuild 7000e, DelRidge employ the latest technologies in conservation and energy monitoring.

 

GreenLife Energy, a wholly owned sub company of DelRidge, operates remote solar arrays as well as their own remote wind facilities producing any shortfalls on sites which require the seal of "net zero".

 

This project, geared to professionals in the field of green technology, goes far beyond the target making it the only "net-positive" facility of its kind in Canada. Through allocation, the surplus energy of approximately 195,500 kwh/year will be assigned to residential projects which are harder to achieve the "net zero" status on their own site.

 

(Source: Town of Milton)

Small Business Centre Quick Facts

CategoryQ1
2011
Q2
2011
% Change
Total Inquiries
(telephone/email/ walk-in visitors)

2,126

2,321+9%
Client Consultations284251-11%
Seminars & Workshops810+25%
Seminar & Workshop attendance106116+9%
Source:
Enterprise Centre Reporting System
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f you have any comments or questions about the Q2 2011 Economic Development Report, contact Halton Economic Development at 905-825-6000, toll free at 1-866-4HALTON (1-866-442-5866), or by e-mail to

ecdev@halton.ca

   

www.halton.ca/business 

 

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Construction Activity

 

Halton's total value of new construction and expansions increased marginally from the same period in 2010, rising 2.6% to just over $382 million. Much of the increase in construction values was attributable to an increase in industrial development activity in Oakville and Burlington. In Oakville, permits were issued for several large developments including a new industrial building in Oakville, renovations at Ford Motor Company and Min-Chem Canada, and a Regional wastewater treatment plant. In Burlington, a new industrial facility on Corporate Drive got underway during the quarter and a permit was issued for a renovation at Ecosynthetix Adhesives Inc.   Chudleigh's in Milton also initiated a significant warehouse expansion.

 

Investment in the commercial market meanwhile was similar to the same period last year and institutional and residential developments declined somewhat. Significant commercial development initiated during the 2nd quarter included a new Fortinos on Appleby Line ($8.6 million) and renovations at Mapleview Mall in Burlington and Guelph Street Commercial Plaza in Halton Hills.

 

Despite the decline in institutional and residential construction values, permits were issued during the period for several large developments, including a new apartment on Ironstone Drive in Burlington ($34 million) and secondary school on Westoak Trails in Oakville ($27 million).      

 

Overall, there were 1,469 building permits issued in Halton during the 2nd quarter, which represents a 17% decline from the same period in 2010. Residential permits accounted for 53% of all building permits issued and 15% were Industrial, Commercial or Institutional (ICI) permits.

  

Construction Value ($ thousand) of New Developments, Q2 2010 vs Q2 2011*

Type of Construction

BurlingtonOakvilleMiltonHalton HillsHalton Region
Q2 2010Q2 2011Q2 2010Q2 2011Q2 2010Q2 2011Q2 2010Q2 2011Q2 2010Q2 2011
Residential100,401.877,872.0120,369.780,095.649,871.647,750.75,698.217,286.0276,341.4223,004.4
Industrial2,402.47,206.2728.39,413.71,150.02,617.53,718.244.57,998.819,281.8
Commercial19,706.718,237.48,234.68,216.62,183.51,546.5973.53,582.031,098.331,582.6
Institutional919.53,671.03,609.528,072.632,270.0370.04,387.55,792.041,186.537,905.6
Other8,908.37,061.7887.5483.32,354.02,345.43,849.06,764.115,998.816,654.5
Total Value132,338.7114,048.3133,829.6126,281.887,829.154,630.118,626.433,468.7372,623.8382,428.9
* Figures may not add due to rounding
Source: Local Municipal building departments and Halton Economic Development

Number of Building Permits Issued in Halton by Type of Development and Municipality, Q2 2010 vs Q2 2011
 Residential*Non-Residential**Miscellaneous***Total
Q2 2010Q2 2011Q2 2010Q2 2011Q2 2010Q2 2011Q2 2010Q2 2011
Burlington190898410896106370303
Halton Hills5157151028149481
Milton275680443710648425765
Oakville180588726815895410751
HALTON REGION6961,4142152233382631,2991,900

* includes apartment registrations, renovations and additions
** includes industrial, commercial, institutional (ICI)
*** excluding signs
Source: Local Municipal building departments


Gross Floor Area (square feet) on Non-Residential Developments, Q1 2010 vs Q1 2011*
 IndustrialCommercialInstitutionalTotal ICI
Q1 2010Q1 2011Q1 2010Q1 2011Q1 2010Q1 2011Q1 2010Q1 2011
Burlington108,79873,404205,021563,067115,95171,324429,770707,795
Halton Hills52,04539,19138,3989,80601,05590,44350,052
Milton292,9299,11756,25287,3923,778191,178352,959287,687
Oakville45,48130,503307,748140,798300,9721,496654,201172,797
HALTON REGION499,253152,215607,419801,063420,701365,0531,527,3731,218,331

* Excludes site servicing, heating and plumbing.  Both new construction, additions and internal alterations are included.
Source: Local Municipal building departments

 
Economic Conditions

 

Ontario's real Gross Domestic Product (GDP) increased 0.8% in the first quarter of 2011, the seventh consecutive quarterly gain. Ontario real GDP surpassed the pre-recession level, set in the second quarter of 2008 by 0.3%. Production by goods-producing industries advanced 0.6%, while services-producing industries grew by 0.8%. The financial, manufacturing, professional and administrative services and wholesale trade sectors all posted solid growth in the quarter. Production was lower in the utilities and information and cultural services sectors.  

 

Employment in Ontario was up by 40,000 jobs in June 2011, following a slight decline in May.  Over the past 12 months, employment in the province increased 114,000 (+1.7%), almost entirely in full-time work.  The provincial unemployment rate fell by 0.2 percentage points in June to 7.7%.

  

Halton's economic conditions during the 2nd quarter were similar to the same period last year. The market rebounds observed throughout 2009 and 2010 appears to have moderated as the level of construction activity increase by just over 2%. The industrial sector reported the largest gains during the quarter, with an increase of 141% over 2010. 

 

In the residential sector, new construction appears to have slowed somewhat and Halton's resale housing market reported a 14% increase in sales, however, listings were staying on the market longer on average. Housing prices rose 11% over the same period in 2010, reaching just over $560,000, on average.

 

The labour market in Halton weakened during the 2nd quarter with the region's unemployment rate rising to 7.2% from 5.5% during the same period in 2010 and 5.6% recorded in the 1st quarter of this year.  The number of Halton residents participating in the labour force also decreased from a rate of 77.6% in 2010 to 74.6% in 2011.

 

Halton's industrial vacancy rates during the quarter dropped to 5.9%, while vacancy rates in the office market rose slightly to 13.9%. At the same time, there was negative absorption in both Halton's industrial market (-11,540 sq. ft.) and office market (-49,545 sq.ft.).

Halton Economic Indicators, Q2 2010 vs Q2 2011
Economic Indicator

Q2 2010

Q2 2011

Percentage (%) or
Percentage Point
(pp) Change

Total Population1

492,100503,600+2.3%
Population Density (per sq km)2509521+2.4%
Labour Force3291,200302,321+3.8%
Unemployment Rate45.5%7.2%+1.7pp
Participation Rate477.6%74.6%-3.0pp
Employment Rate473.4%69.3%-4.1pp
Employment Insurance Beneficiaries55,293

4,030

-23.9%

Number of Businesses637,50138,307+2.1%
Employment1262,073269,000+2.6%
Business Bankruptcies71621+31.3
Total Construction Value8$372,623,807$382,428,868+2.6%

Industrial

$7,998,825$19,281,838+141.1%

Commercial

$31,098,327$31,582,601+1.6%

Institutional

$41,186,500$37,905,595-8.0%

Residential

$276,341,351$223,004,353-19.3%
Industrial Vacancy Rate98.6%5.9%-2.7pp
Office Vacancy Rate1012.4%13.9%+1.5pp
Average Household Income3$122,400$122,700+0.2%
Occupied Dwelling Units1176,222180,987+2.7%
Housing Sales111,5041,713-13.9%
Average Housing Price11$506,058$562,835+11.2%
Average Days on the Market112934+17.2%

Sources:
1 Halton Region Best Planning Estimates, April 2007 (forecasted)
2 Based on Halton's land area of 967 square kilometres
3 Financial Post Markets, Canadian Demographics, 2010 and 2011
4 Statistics Canada, Labour Force Survey Estimates (Custom Tabulation, 3 month moving average, unadjusted)
5 Statistics Canada, Employment Insurance Statistics (Table 276-0006, average number of beneficiaries receiving regular benefits)
6 Statistics Canada, Canadian Business Patterns.  As of December 2009 and December 2010
7 Office of the Superintendent of Bankruptcy Canada
8 Local Municipal building departments and Halton Economic Development
9 CBRE, Q2 2010 and Q2 2011.  Based on rates in Burlington, Milton and Oakville
10 CBRE, Q2 2010 and Q2 2011.  Based on rates in Burlington and Oakville
11 Toronto Real Estate Board, Market Watch, March 2010 and March 2011