the county of wellington socio economic profile · 2017-11-28 · establishment of the wellington...

THE COUNTY OF WELLINGTON SOCIO‐ECONOMIC PROFILE

AS PREPARED FOR THE

COUNTY OF WELLINGTON CREDIT REVIEW JUNE 2011

PREPARED BY JANA REICHERT

WELLINGTON WATERLOO COMMUNITY FUTURES DEVELOPMENT CORPORATION JUNE 9, 2011

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TABLE OF CONTENTS

INTRODUCTION .................................................................................... 3 LOCATION ............................................................................................ 4 DEMOGRAPHIC CHANGES .................................................................... 5 HOUSEHOLD INCOME CHANGES .......................................................... 6 LABOUR FORCE .................................................................................... 7 EDUCATION ......................................................................................... 8 DEVELOPMENT ACTIVITY ..................................................................... 9 WELLINGTON COUNTY’S COMPETITIVE ADVANTAGES ....................... 14 WELLINGTON COUNTY MUNICIPAL ECONOMIC DEVELOPMENT GROUP (WCMEDG) .......................................................................................... 17 COUNTY OF WELLINGTON – TOP PRIVATE SECTOR EMPLOYERS ........ 18 COUNTY OF WELLINGTON – TOP PUBLIC SECTOR EMPLOYERS .......... 20 LABOUR FORCE GROWTH 2006 – 2009 ESTIMATES and 2011 Q1 TOP EMPLOYER PHONE INTERVIEWS ......................................................... 21

Centre Wellington ............................................................................ 22 Erin ................................................................................................. 22 Guelph/Eramosa .............................................................................. 22 Mapleton ......................................................................................... 23 Minto .............................................................................................. 23 Puslinch ........................................................................................... 23 Wellington North ............................................................................. 24 Real Estate ...................................................................................... 24 Farming ........................................................................................... 25

COMMUTING PATTERNS .................................................................... 27 COUNTY OF WELLINGTON: 2010 ‐2011 HIGHLIGHTS ............................ 30 COUNTY OF WELLINGTON: INDUSTRY SURVEY 2011 ........................... 31

Why Wellington? .......................................................................... 32 Wellington’s Economy .................................................................. 33 Wellington County for Investment ................................................. 35 The Economic Downturn: Impacts on Employers ............................ 36 Wellington Employer’s 6 month Outlook ........................................ 38 Information to Assist Local Business .............................................. 39 Growth Restraints ......................................................................... 39 Wellington’s Top 2 Strengths ........................................................ 41 Wellington’s Top 2 Weaknesses ..................................................... 42

INDUSTRY SURVEY 2011 ‐ CONCLUSION ............................................. 43

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INTRODUCTION

This report provides an overview of Wellington County with respect to its demographics, the economy and growth activities in the period between 2006 and 2010. The overview will be followed by results of the Wellington County Industry Survey 2011 where a section of employers were interviewed on the local business environment. This report uses 2009 estimates obtained from Manifold Data Mining Inc. to compare with 2006 Census data from Statistics Canada and other sources where noted. 1 Highlights for the County of Wellington 2011: 1. Population increase 2006 ‐2009 on par with province 8%. 2. Labour force growth 2006 ‐2009 12% greater than provincial growth of 9%. 3. Household median incomes increased range of 7.1% to 13.7% 4. Development activities: investments in 4 bridges, a new OPP station, 55 unit affordable

housing construction, renovations and additions to the Museum and Archives and 2 libraries. Steady growth in residential construction and commercial expansions.

5. Establishment of the Wellington County Municipal Economic Development Group (WCMEDG) and submission of Federal funding application to conduct a $130,000 Wellington County Economic Development Strategic Plan.

6. First ever Wellington County Industry Survey 2011. 7. Incorporation of Wellington County into Regional Tourism Organization 4. 8. Successful application to hire a Wellington County Rural Development Officer for tourism

development in Wellington County (feasibility of a Wellington Destination Marketing Office)

9. County of Wellington High‐speed Internet build‐out and outreach completion September 2011.

10. New health clinics in Erin and Guelph/Eramosa. 11. United Nations recognition of 1 million trees planted Wellington County Green Legacy

Programme.2 The turbulent period which began in 2008 and stretched around the globe has also in varying degrees, affected every business and household in the County of Wellington. As we now distance ourselves from the economic downturn and make strategic and cautionary decisions for the next year, it is promising that there are many employers expressing confidence and optimism for 2011/2012. Thank you to the municipal and county contacts who shared their information for this report and a sincere thank you to the employers within Wellington who provided their time and a wealth of contextual knowledge.

1 http://www.ontario.ca/siteselection/WebPages/Map/FundyViewer.aspx?selectedTab=SEARCH 2 Since 2004, the Green Legacy Programme has planted over one million trees with the help of the community, making it the largest municipal tree planting programme in North America. Nov. 25, 2010, United Nations recognized the county’s Green Legacy Program under its International Billion Tree campaign. The Green Legacy was honoured for its exceptional contribution towards improving efficiency in the United Nations.

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LOCATION

The County of Wellington spans 2,569 km2 and borders the Counties of Grey, Bruce, Huron, Perth and Dufferin, the City of Hamilton and the Regions of Waterloo, Halton and Peel. Wellington County is composed of the following municipalities:

• Centre Wellington • Erin • Guelph/Eramosa • Mapleton • Minto • Puslinch • Wellington North

The 14 urban centres are shown below. Wellington’s population can be evenly split into thirds between the north, centre and the south. The city of Guelph is a separated municipality not included within the County of Wellington and covers 86km2 across the southern portion of the County.

With respect to land size, Wellington’s largest township is Mapleton, followed by Wellington North. The most densely populated municipality is Centre Wellington, followed by Guelph/Eramosa.

LAND Land (sq km) Popln density per km2

Centre Wellington 407 64Erin 297 37.5Guelph/Eramosa 292 41.4Mapleton 535 18.4Minto 300 28.3Puslinch 214 31.2Wellington North 524 21.3Wellington County 2570 34.6ONTARIO 907574 13.4

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AGE GROUPS 2006-2009 est. % under 29 b/w 30-59 % over 60

Centre Wellington 1% 3% 3%Erin -1% 0% 1%Guelph/Eramosa -2% 0% 1%Mapleton -1% -1% 2%Minto -2% 0% 2%Puslinch -1% 0% 1%Wellington North -1% 0% 1%Wellington County -7% 2% 11%

DEMOGRAPHIC CHANGES

The total 2009 estimated population of the County Wellington is 92,131. This represents an estimated increase of 7.8% over 2006 and growth on par with the provincial rate of 22% since 1996. The median age of citizens is on par with the rest of Ontario at 40 years, ranging from a low of 30 years in Mapleton to a high of 44 in Puslinch. Slightly more than 50% of Wellington’s citizens reside in the rural regions, attesting to the high quality of life available in the County and its close proximity to products and services.3

Centre Wellington 21,307 24,260 26,049 7.4% 28,042 22.3% 7.7%Erin 10,657 11,052 11,148 0.9% 11,953 4.6% 7.2%Guelph/Eramosa 10,444 11,174 12,066 8.0% 13,139 15.5% 8.9%Mapleton 8,594 9,303 9,851 5.9% 10,710 14.6% 8.7%Minto 7,854 8,164 8,504 4.2% 9,283 8.3% 9.2%Puslinch 5,416 5,885 6,689 13.7% 7,260 23.5% 8.5%Wellington North 11,302 11,305 11,175 -1.1% 11,744 -1.1% 5.1%Wellington County 75,574 81,143 85,482 5.3% 92,131 13.1% 7.8%ONTARIO 10,753,573 11,410,046 12,160,282 6.6% 13,119,251 13.1% 7.9%

%▲ 2006 - 2009 est.POPULATION 1996 2001 2006 2001 - 2006 2009 est.

%▲ 1996- 2006

Source: 1996‐2006 Statistics Canada Census data, 2009 Estimates Manifold Data Mining Inc

Consistent with the national trend of an aging population, Wellington’s labour force as a per cent of the total population has increased by 2%, while younger populations are not increasing at a rate with which to supplement those soon to retire. Wellington’s demographics show that its population has lived here for several generations. For example, over 60% of the population is third generation Canadian and almost 70% have lived at the same address 5 years prior. In line with this, less than 1% of the County’s citizens are non‐permanent residents. 9,630 foreign born residents comprise 11.4% of the total population.

3 The Province of Ontario definition of rural refers to communities with populations of less than 10,000 people which are

circa 80 kilometres from a population centre of 50,000 people or more.

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Centre Wellington $80,895 2.3%Erin $97,430 6.2%Guelph/Eramosa $95,236 2.1%Mapleton $72,442 3.8%Minto $64,419 7.2%Puslinch $104,487 4.3%Wellington North $67,071 9.7%ONTARIO $68,604 2%

▲2008 - 2010 est. Median Private Household Incomes

2010 est. Median Private Hshld Incomes

COUNTY OF WELLINGTON: HOUSEHOLD INCOME LEVELS ($)

HOUSEHOLD INCOME CHANGES

Between 2005 and 2008, Wellington’s median household income growth ranged from a low of 7.1% in Erin to a high of 14.2% in Minto. Just as with its population, Wellington median private household income can be categorized for the north ($63,000), center ($80,000) and south Wellington ($95,000). Minto experienced the greatest household income growth between 2005 and 2008 at 14.2%, followed by Wellington North at 13.7%. This may be attributed to a growth in the number of well‐paid positions in non‐traditional industries, for example. It is estimated that 145 more management occupation and 267 more business, finance and administration occupations exist in the two municipalities since 2006. Puslinch remains the municipality with highest median private household incomes of $100,200 as it is an attractive place to locate for many working in the GTA.

Centre Wellington $69,740 $79,097 13.4%Erin $85,618 $91,734 7.1%Guelph/Eramosa $83,414 $93,240 11.8%Mapleton $64,237 $69,798 8.7%Minto $52,634 $60,092 14.2%Puslinch $90,414 $100,200 10.8%Wellington North $53,781 $61,145 13.7%ONTARIO $60,455 $67,075 11.0%

COUNTY OF WELLINGTON: HOUSEHOLD INCOME LEVELS ($)

2005 Med. Private Hshld Incomes

2008 Median Private Hshld Incomes

▲2005 - 2008 Median Private Household Incomes

The estimated 2010 median private household incomes show that since 2008, household incomes have again increased in the County of Wellington. Each municipality has an estimated greater growth rate than the provincial rate. These estimates are provided by Manifold Data Mining Inc.

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Wellington County: 2005 Median Household Income

$49,912

$51,910

$54,403

$55,312

$57,217

$60,455

$62,181

$64,522

$69,014

$69,244

$‐ $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000

Grey County

Huron County

Bruce County

Hamilton

Canada

Ontario

Peel

Waterloo Region

Halton

Wellington County

Source: Statistics Canada Community Profiles and Custom Tabulation

The following chart illustrates that in 2005, Wellington surpasses not only its neighbouring municipalities in household incomes, but also the province and the Canadian level.

LABOUR FORCE

The total number of Wellington residents over the age of 15 years and either employed or looking for work is estimated to be 53,915. An estimated 20,475 are not intending to find a job as they may be gaining an education, raising a family or retired. Wellington’s labour force has grown an estimated 12% since 2006 which is 3% more than Ontario’s growth rate.4 The participation rate for the County is also above that of the province. Minto, Erin, Wellington North and Mapleton show the greatest growth in labour force participation rates. The Workforce Planning Board of Wellington, Waterloo and Dufferin has just shared 2004‐2009 immigration data showcasing Wellington’s working age population to have attracted the largest influx of immigrants, a healthy sign for Wellington’s labour force.

4 Source: Statistics Canada, 2006 Census of Population. May 2009 Ontario Labour Force Survey CANSIM table 282‐0087.

COUNTY OF WELLINGTON: LABOUR FORCE PARTICIPATION RATES (%)

2006 Part. Rate (%)

2009 est. Part. Rate (%)

▲ 2006 - 2009 est. Labour Force Part. Rate

Centre Wellington 70.3% 70.9% 0.8%Erin 74.9% 75.9% 1.4%Guelph/Eramosa 74.4% 74.7% 0.3%Mapleton 75.5% 76.3% 1.1%Minto 67.8% 68.8% 1.5%Puslinch 73.5% 73.7% 0.2%Wellington North 68.3% 69.2% 1.3%WELLINGTON COUNTY - average 72.1% 72.8% 0.9%ONTARIO 67.1% 67.3% 0.3%

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Educational Attainment (15 years and over) 2006 Highest level of schooling Wellington County OntarioNo certificate or diploma or degree 27.50% 22.20%High school certificate or diploma 28.50% 26.80%Apprenticeship or Trades Certificate or diploma 9.50% 8.00%College or other non‐university certificate or diploma 18.00% 18.40%University certificate or diploma below the bachelor leve 3.30% 4.10%University certificate, diploma or degree 13.20% 20.50%Source: Statistics Canada, 2006 Census

© 2011 The Fraser Institute

Wellington County High Schools

EDUCATION

In 2010, the Fraser Institute released a report that compares, rates and ranks Ontario’s schools based on standardized math and literacy test results. The intent is to identify schools that are particularly effective and determine the tools of success. Results showed that 86% of students in the Upper Grand District School Board who wrote the Ontario Secondary School Literacy Test were successful. Four of Wellington’s high schools also contributed to the Upper Grand and Wellington Catholic schools not only meeting provincial standards but exceeding them. The success rate for the Wellington Catholic District School Board is 91%, compared with the provincial rate of 85%. Since 2008, the achievement results has remained constant for the public board, and increased 1% for the Catholic board.3 The chart below shows that while Wellington’s population has less university educated persons, it does have a higher than provincial number of persons with trades, apprenticeships and diplomas, relevant to employers in its dominant industries.

Labour Force Changes (absolute numbers) 2006 – 2009 estimates: • Manufacturing (1,318 increase, 2009 total: 10,738) • Health Care (642 increase, 2009 total: 4,667) • Agriculture (634 increase, 2009 total: 4,539) • Retail (536 increase, 2009 total: 4,716) • Construction (414 increase, 2009 total: 4,119)

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County of Wellington: Residential Building Permits 2006 ‐ 2010

0

100

200

300

400

500

2006 2007 2008 2009 2010

DEVELOPMENT ACTIVITY

Regional Perspective

Compared with Q1 (Jan‐Mar) 2010, Q1 2011 showed weaker housing starts in Kitchener, Cambridge, Waterloo and Guelph Census metropolitan areas.5 One must consider however, that housing starts were unusually high last year because of the anticipated mortgage rate increase and the anticipated introduction of the HST. In the beginning of 2011, demand for less expensive alternatives to single detached homes had occurred, showcased by a double in the number of condominium and apartment starts. Prices for single family detached (SFD) homes increased 2.8% in Kitchener but more so in the Wellington and Guelph region due to the construction of higher priced homes.6 The past year was witness to a growing number of bungalow starts and sales in the Kitchener and Guelph area. Bungalows accounted for one quarter of all SFD sales in 2010 in the resale market where this trend in housing may be linked to an aging population.7 Wellington County Perspective8

In the last five years residential building permit activity peaked in 2007 and declined with the economic slowdown in 2008. There are indications of a turnaround as residential permits increased slightly from 2009 to 2010 and as new development applications come forward. In the past the County typically saw single detached subdivision development but this trend has been changing. In the past two years, just over one quarter of residential building permits issued were for multiples including semi‐detached, townhouse and apartment units. Source: Statistics Canada Publication 64‐001‐XWF

Residential Building Permits Issued in Wellington County Single Cottage Double Row Apt Conversion Total 2006 289 0 8 7 28 5 357 2007 332 0 16 46 10 2 418 2008 261 1 15 44 10 6 350 2009 208 0 10 31 58 4 316 2010 250 0 11 23 39 3 330

Source: Statistics Canada: Building Permits, Publication 64‐001‐XWF

5 Housing Now – Kitchener and Guelph CMAs – Second Quarter 2011. Canada Mortgage and Housing Corporat ion. p.1 6 Housing Now – Kitchener and Guelph CMAs – Second Quarter 2011. Canada Mortgage and Housing Corporat ion. p.3 7 Housing Now – Kitchener and Guelph CMAs – Second Quarter 2011. Canada Mortgage and Housing Corporat ion. p.4 8 Development Activity Information is based on discussions with County and Municipal staff.

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Status of PlanNumber of

Developments

Number of Vacant and Potential Residential

UnitsRegistered and building out 35 807

Draft Approved 25 1,807

Currently under review 15 1,426

Total 75 4,040

Source: County of Wellington Planning and Development

Residential Subdivision and Condominium Activity

Wellington County

March 2011

There are approximately 800 vacant residential units in 35 registered plans of subdivision or condominium that are building out across the County. An additional 1,800 potential residential units are in draft approved plans. There are also 1,400 potential units currently under review in 15 development applications. Of these 15 applications, 6 were received in either 2009 or 2010 illustrating a climate of confidence for residential development in

Wellington County.

Total Industrial, Commercial and Institutional (ICI) permit values show steady development activity taking place in Wellington County since 2006 and peaking in 2007. Cumulatively, the total value of permits in ICI sectors did not fall below the 2006 value of $160.4 million after the economic slowdown. Building activity in the industrial sector was highest in 2006 while the institutional and commercial sectors peaked in 2007.

County of Wellington: Value of Institutional Building Permits 2006 ‐ 2010

$0

$10,000

$20,000

$30,000

$40,000

$50,000

2006 2007 2008 2009 2010 County of Wellington: Value of Commercial Building Permits 2006 ‐ 2010

$0$5,000

$10,000$15,000$20,000$25,000$30,000$35,000

2006 2007 2008 2009 2010 County of Wellington: Value of Industrial Building Permits 2006 ‐ 2010

$0

$10,000

$20,000

$30,000

$40,000

$50,000

2006 2007 2008 2009 2010 Source: Statistics Canada: Building Permits, Publication 64‐001‐XWF

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ICI Building Permit Activity in Wellington County Unadjusted Values $(000)

Commercial Industrial Institutional Total 2006 14,347 43,204 8,534 160,417 2007 31,295 37,090 41,669 223,629 2008 29,118 25,488 13,809 168,867 2009 16,464 41,121 17,124 167,959 2010 16,042 33,664 16,719 171,174 Source: Statistics Canada: Building Permits, Publication 64‐001‐XWF

Much of the recent institutional building permit activity in Wellington County has been due to substantial investments made by the County in building new facilities and upgrading existing facilities. For example since 2009, the County invested $33.8 million in the construction of the following new facilities:

Project Value ($000)

Rockwood OPP Station (Guelph Eramosa) 5,100 Elora Library (Centre Wellington) 1,200 Drayton Library (Mapleton) 2,700 Arthur Library‐medical centre (Wellington North) 3,000 Mount Forest Child Care Centre (Wellington North) 3,100 Mount Forest Library (Wellington North) 1,600 Rehabilitation of the Rae Bridge (Centre Wellington) 1,600 County Archives Building 3,860 55‐unit Apartment Building (Affordable Housing Development in Fergus) 9,600 Puslinch Library (Puslinch) 2,000 Aboyne OPP Station (Centre Wellington) 5,500 The County currently has a tender out for a new library in Harriston with an approximate construction value of $2.4 million. Council has approved $3 million in 2012 and $4 million in 2013 through its budget process for a new North Wellington OPP centre. In addition to County investments, the Province of Ontario is presently constructing an OPP Forensics Centre in Mount Forest valued at $6.2 million. Many local municipalities have also invested in their communities by constructing new facilities and upgrading existing infrastructure.

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The Industrial sector rebounded from a low of $25.5 million in permit activity in 2008 to $41.1 in 2009 and $33.7 million in 2010. Since 2008, major industrial investment in the County includes: Project Value ($

millions)

Expansion of Royal Canin (pet food manufacturer in Puslinch) 7.3

New Industrial warehouse in Drayton Industrial Park 1.25 wind turbine towers outside Arthur 7.5Addition to Musashi (car parts manufacturing in Arthur) 1.5TG Minto Corporation Expansion (car parts manufacturing in Palmerston)

2.7

Nestle Waters Expansion (Puslinch) 10.5

New Waste Management Recycling Plant in Mount Forest 1.3Solowave Expansion (manufacturer of playground equipment in Mount Forest)

1.0

14,000 square foot expansion of Norwell Dairy (Mapleton) N/A

New anticipated industrial development in the short term includes a 60,000 ‐ 70,000 sq foot expansion of the WC Smith warehouse business in Clifford with further expansions in Mapleton and Erin. An application was submitted to the County Planning and Development Department in late 2010 to rezone approximately 20 hectares of lands for industrial uses at MacLean Road and County Road 46 in Puslinch. This application is currently under review and if approved will result in a new industrial subdivision to the north of the existing Nicholas Beaver Industrial Park. In 2006, Mapleton Township purchased 25 acres on a 50 acre parcel of land. The Township has since then serviced and zoned the land as industrial, with all Planning Act approvals in place. In June 2011, the Township exercised an option to purchase the remaining 25 acres of land as they have already received commitments from employers to fill half of the entire 50 acre parcel by 2012.

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Commercial building activity slowed down noticeably after 2008. However, 2009 and 2010 levels remain above the 2006 level. Major recent commercial developments include:

Project Value

($ millions)

2 storey office building in Elora 2.7 Greater Toronto Transit bus storage facility in Puslinch 2.7

Ren's Pet Supplies (new commercial/retail/warehouse facility in Puslinch) 2.6 Commercial mall, restaurant and car wash in Arthur 1.0 Boot Hill Auto Centre in Erin Industrial Park n/a

2 new warehouses in Home Hardware Mount Forest (approx 5,000 sf each) 0.4 Retail, gas station and fast food development in Puslinch 1.0

Hortico Garden Centre in Puslinch re‐use of existing buildings

The development outlook for 2011 and 2012 includes: • 20,000 square foot car dealership (Milburn's) in Puslinch

• Completion of new 27 hole golf course (Victoria Park Valley) in Puslinch

• Review of Golf course and residential development in Drayton • Discussions underway for development in north end of Fergus

for WalMart, Best Western, Swiss Chalet and TSC in Elora • Catholic School Hwy 7 north in Elora • Industrial expansion of existing building in Fergus • Tim Hortons in Erin • Wellington County tree nursery being built in Wellington North • Expecting 60 of 115 residential unit to be completed in

Rockwood by end 2011

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MAJOR NODE km milesBarrie 125 78Fort Erie/Buffalo 174 108Hamilton 72 45Kitchener 29 18London 142 88Montreal 642 399Orangeville 41 26Oshawa 160 99Ottawa 551 342Sarnia/PortHuron 239 149Toronto 119 74Waterloo 30 18Windsor/Detroit 317 197

Distances to Major Nodes from Wellington County

WELLINGTON COUNTY’S COMPETITIVE ADVANTAGES

A region has a competitive advantage when it has resources and capabilities that make it superior relative to surrounding regions. Wellington County has several advantages which distinguish it from other counties in the province as a superior place to both live and work. A few of these reasons are outlined below. 1) Proximity to urban cores Wellington County has access to 130 million people within a day’s drive and is within a half hour of major urban cores – Guelph, Kitchener, Waterloo, Cambridge, Milton, Brantford and Hamilton. Businesses experience the advantages of locating on the rim of many of its urban cores, as the complementarities between the rural‐urban economic activities are countless. For example, the short distance to Canada’s Technology Triangle allows many spin‐off ventures to locate within the County while providing the green space, healthy lifestyle and full amenities that mobile, skilled workers demand. The short distance to the GTA also provides the County with access to over 5.1 million potential customers and visitors. For residents of Wellington, this translates into greater dynamism in goods and services available and a variety of housing and recreational choices. The recent construction of Marden Park community centre in Guelph/Eramosa is tribute to the development associated with such growth. 2) Transportation access In addition to its many access routes (ie: Highways 6, 7, County road 124) and its adjacency to the 401 corridor, Wellington County is also close to both Toronto’s Pearson Airport and Hamilton Airport. The County’s population also benefits from nearby Waterloo Region International Airport which has expanded significantly over the last decade and has three airlines operating – Westjet, Bearskin and Sunwing, providing domestic and international flights. Rail access is available by the Canadian National Railway and the Canadian Pacific Railway. In addition, there is a new GO Bus and Greyhound service together with a Park and Ride/Carpool lot in Puslinch (Aberfoyle Station) on County Rd 46 just north of 401. GO Bus service from Aberfoyle is available to:

• Downtown Toronto • Milton, Cooksville, and Meadowvale Bramalea GO Train Stations • Square One in Mississauga • York University in Toronto and Sheridan College in Oakville • McMaster University in Hamilton • Waterloo Region including downtown Kitchener, Cambridge at Hespeler Road and Hwy

401, Waterloo University and Laurier University • University of Guelph

Voyageur provides direct link to Downtown Toronto from Aberfoyle. GO Bus service is also available in Wellington County eastbound along Highway 7 through Guelph/Eramosa with stops in Rockwood, Acton, Georgetown Go Train and downtown Brampton. Westbound, the bus links with downtown Guelph.

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3) Numerous reputable educational institutions Wellington is close to a network of renowned educational institutions including the University of Waterloo, University of Guelph, Wilfrid Laurier University and Ontario’s leading polytechnic institute, Conestoga College, as well as several trades and satellite trades colleges. 4) Agriculture Wellington has a strong local farming sector framed by a rich agricultural history and close proximity to a large customer base nearby. This is harnessed with collaboration with the University of Guelph, the Ontario Ministry of Agriculture and Food, Wellington Federation of Agriculture, EastGen livestock genetics facility (formally Gencor) and commodity partners. The market for fresh, quality local food products is growing, as are opportunities in the food producing and processing industry. Many local organizations such as the Workforce Planning Board, FarmStart, Guelph Wellington Local Food and the new Taste Real partnership, are recognizing the need to ensure that skill sets exist for such employers. Conestoga College has recently opened its doors to the new Institute for Food Processing facility in Kitchener. As of December 2010, 62 food manufacturers exist in Wellington County and Guelph. 5) Natural amenities Wellington is gifted with many of the province’s most beautiful natural sites of historical significance such as Rockwood Conservation Area’s unique geological history and towering limestone cliffs, a park that brings 70,000 visitors a year. From a tourism perspective, these assets in addition to the many festivals, events, heritage structures and outdoor experiences present many economic growth opportunities. This sector is projected to increase in 2011/2012 as people continue spending more at the regional level following the market

downturn. The newly established Regional Tourism Organization for Region 4 (RTO4 encompassing Huron, Perth, Waterloo and Wellington counties) will further enhance the industry in Wellington with its accessibility of marketing, product development and workforce development opportunities. Though Wellington County is the only partner in RTO4 without a Destination Marketing Office, the newly acquired Rural Development Officer9 is conducting research into such an tourism office as her priority project.

6) Green business opportunities The Canadian Federal government aims to have 50,000 people working in the ‘green’ manufacturing sector by the end of 2012.10 Canadian Solar Inc., one of the world`s largest solar companies, is currently establishing a new solar module manufacturing facility in Guelph. This facility will employ approximately 500 workers when it commences operation this year and will be one of the largest solar panel module manufacturing plants in North

9 The Rural Development Officer resulted as a successful application for the one year position funded by the Foundation for Rural Living to promote community economic development in rural Ontario communities.

10 For solar, ‘Ontario is the California of Canada’ P. Gorrie, The Globe and Mail, Tuesday, Apr. 26, 2011 2pmEDT

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America. The energy challenge will persist and Wellington has the potential to become a hotspot for this industry. There is an opportunity for assembly within Wellington of solar arrays from locally manufactured tubular steel and photovoltaic cells imported from Asia. SunSations Energy Inc. is a manufacturer of 100% Ontario‐made and Ontario engineered certified ground‐mount tracking systems designed to meet the Ontario Farm Building Code. SunSations manufactures solar panel systems and has recently begun operations in an existing industrial building in Centre Wellington. In 2010 the Green Jobs Strategy project was funded by the regional office of Training, Colleges and Universities. This study is to identify the strength of the Green Economy in Bruce, Grey, Huron, Perth, Middlesex and Wellington counties. Highlighted for future development were several strategies including the development of an implementation strategy for three focuses: Green Business/Jobs, Green Communities, and Climate Change Adaptation. The development of a Green Jobs Profile and implementation plan will be completed in 2011. It is anticipated that the plan will be adopted by organizations within the region to champion each focus.11

11 Four County Labour Market Planning Board TOP UPDATE 2011

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WELLINGTON COUNTY MUNICIPAL ECONOMIC DEVELOPMENT GROUP (WCMEDG)

In August 2009, one member from each of the seven municipalities of Wellington County, the County and the Wellington Waterloo Community Futures Development Corporation (WWCFDC) created the Terms of Reference to establish an economic development Group for Wellington. The Group’s mandate is to collaborate, communicate, foster, research, develop and implement economic development and to promote a business enabling environment within Wellington County. Members include the CAO or the Economic Development Officer from each of the seven municipalities in addition to two members from the County of Wellington and the WWCFDC Economic Development Officer. Supporting organizations include the Ontario Ministry of Agriculture, Food and Rural Affairs, Saugeen Business Development Corporation, Workforce Planning Board Waterloo Wellington Dufferin, Wellington Federation of Agriculture and the Grand River Conservation Authority. The Group meets the first Tuesday of each month in the WWCFDC boardroom to share information and events particular to each municipality and to engage in regional initiatives, such as the County of Wellington Festivals and Events Guide. This roundtable process allows Group members to learn about opportunities and resources in neighbouring communities. In January, the Group submitted a funding application to the Rural Secretariat to create a Wellington County Municipal Economic Development Strategic Plan. The opportunity to conduct a Strategic Plan will empower the seven municipalities which have never before had the opportunity to discuss joint initiatives or been aware of the various issues and events beyond their township borders. The Plan will engage its communities, industries, labour force and citizens and ensure collective input on the features of the County, including its strengths, competitive advantages and priorities, gaps and the many subjects which bind them as a unique region.

The creation of a Strategic Plan will provide the County with a better position to apply for funding to conduct projects on either a municipal or regional level. The Plan will also establish a set of accountability principles where everyone is clear of “who does what with what resources.” In the long run the Group hopes to build a strong local workforce and a resilient business community. It also hopes to collaborate with existing organizations to align resources and implement strategies for targeting key sectors of growth.

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CENTRE WELLINGTON IndustryAO Smith ManufacturingJefferson Elora Corporation ManufacturingNexans Canada Inc. ManufacturingRR Donnelly Other services-

communicationsZehrs Markets Retail TradeZellers Retail TradeLegrande - Wiremold ManufacturingGrand River Raceway Arts, entertainment

and recreationCanadian Tire Retail TradeHeritage River Health care and social

assistanceGund ManufacturingGuelph Utility Pole ManufacturingOLG Slots ManufacturingArtic Clear 1993 Inc. Retail TradeKitras Art Glass ManufacturingHerwynen Saw Mill Wholesale TradeERIN IndustryActon Precast Concrete Ltd. ManufacturingMorette's Ltd. Retail TradeKennedy's Specialty Sewing Ltd. ManufacturingRespan Products Inc ManufacturingDenny's Busline Transportation and

warehousingCentral Wire ManufacturingChantler's Portable Services Ltd Retail TradeBrennan Haulage Other servicesCanadian Custom Stainless Equipment Ltd.

Manufacturing

Mundell Lumber Retail Trade

GUELPH/ERAMOSA IndustryW.C.Wood ManufacturingLinamar Corporation DistributionWalinga ManufacturingSynnex Canada Wholesale tradeDrexler Construction ConstructionGencor Other ServicesUPI Inc. Retail TradeEden House Care Facility Health care and social

assistanceMann Construction ConstructionSwanston Farm Equipment Retail TradeLa Farge Canada Inc. ManufacturingCrawford Transport Ltd. Transportation and

warehousingSuperior Propane Inc. Retail TradePurity Plus (Purity Life Health Products)

Knapp's Country Market and Nursery RetailLeslie Sand and Gravel Mining and oil and

gas extractionMeadowville Garden Centre Inc. RetailWoodrill Farms Ltd Agri, forestry, fishing

and huntingMAPLETON IndustryRothsay Concentrates ManufacturingHerron's Home Hardware Retail TradeNieuwland Feed and Supply Wholesale TradeSMB ManufacturingThe Murray Group ConstructionDrayton Entertainment Arts, entertainment

and recreationHusky Farm Equipment Ltd. ManufacturingNorwell Dairy Wholesale TradeWellington Construction ConstructionConestogo Dairy Supply Ltd. Wholesale TradeInland Cooperatives- [name change to Farm Supply (FS) Partners]

Manufacturing

Wallenstein Feed & Supply Manufacturing

COUNTY OF WELLINGTON – TOP PRIVATE SECTOR EMPLOYERS

Following is a comprehensive list of the top employers (highest employment numbers) within each of the seven municipalities within Wellington County. Relating back to the competitive advantages of Wellington, it is no surprise that the main industries are manufacturing, construction, retail, wholesale trade, transport and agriculture.

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MINTO IndustryTG Minto Corporation ManufacturingRoyal Terrace Health care and social

assistanceCaressant Care Health care and social

assistancePike Lake Golf and Country Arts, entertainment

and recreationWightman Telecom Ltd Other services-

communicationsFarm Fresh Poultry ManufacturingJim Harkness Equipment Transportation and

warehousingWellington Construction ConstructionC&M Seeds Wholesale TradeNorth Wellington Co-op Retail TradeHarriston Motors Retail TradeB.E.Grein Lumber Ltd. ManufacturingMcPhails of Harriston Retail TradeBrenmar Transit Transportation and

warehousingPUSLINCH IndustryNestle Waters Canada Wholesale,

Transportation and Warehousing

Laidlaw Carriers Van LP Transportation and logistics

Cascade Canada ManufacturingCherry Forest Products ManufacturingWeyFreight Holdings Transportation and

logisticsSt Marys Cement ManufacturingSt. Lawrence Cement ManufacturingAberfoyle Metal Treaters ManufacturingHammond Power Solutions ManufacturingLaFarge Canada ManufacturingTri City Services Transportation and

logistics-scrap tiresSloot Construction ConstructionCon-Cast Pipe Ltd. ManufacturingRoyal Canin ManufacturingContract Express Transportation and

logistics

WELLINGTON NORTH IndustryMusashi Auto Parts Canada ManufacturingDana Long Manufacturing ManufacturingQuality Engineered Homes Manufacturing

Viking-Cives Ltd ManufacturingVintex Inc. ManufacturingAll Treat Farms ManufacturingGolden Valley Farms Wholesale,

Transportation and Warehousing

Copernicus Educational Products ManufacturingExcell Stamping ManufacturingPremier Caskets ManufacturingWellington Wood Products ManufacturingNostalgic Wood ManufacturingLudachris Hats ManufacturingPine Ridge Timber Frame ManufacturingArbro Concrete Forming ConstructionWaste Mgt of Canada Waste ServicesH Bye Construction Limited ConstructionReeves Construction Limited ConstructionW. Schwindt & Sons Building Contractors Construction

J.J. McLellan & Sons Wholesale, Transportation and Warehousing

Solowave Industries ManufacturingMarcc Apparel ManufacturingCanadian Tire Corporation Retail tradeFoodland Mount Forest Retail tradeNo Frills Mount Forest Retail tradeRona Retail tradeTim Hortons (2 locations) Accommodation and

food servicesHome Hardware (2 locations) Accommodation and

food servicesBill's Stabling Manufactuing (BSM) Manufacturing

COUNTY OF WELLINGTON – TOP PRIVATE SECTOR EMPLOYERS… continued

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CENTRE WELLINGTON IndustryTownship of Centre Wellington Public AdministrationUpper Grand District School Board Educational ServicesGroves Memorial Hospital Health care and social

assistanceOntario Min. of Agriculture & Food Public AdministrationWellington Terrace Health care and social

assistanceOntario Provincial Police Government/Public Sector

Centre Wellington Hydro UtilitiesGrand River Conservation Area Other servicesERIN IndustryTownship of Erin Public AdministrationErin Family Health Clinic Health and WellnessGUELPH/ERAMOSA IndustryTownship of Guelph Eramosa Public AdministrationGrand River Conservation Authority Federal GovernmentCanada Post Outlet Postal ServiceOntario Provincial Police Government/Public SectorRockwood Family Health Clinic Health and WellnessMINTO IndustryTown of Minto Public AdministrationNorth Wellington Health Care Health care and social

assistanceUpper Grand District School Board Educational ServicesPUSLINCH IndustryTownship of Puslinch Government/Public Sector

WELLINGTON NORTH IndustryTownship of Wellington North Government/Public Sector

Ontario Provincial Police Government/Public Sector

Louise Marshall Hospital* Health and WellnessClaire Stewart Medical Team* Health and WellnessMount Forest Family Health Team Health and WellnessMcFarlane Health Facility Health and WellnessUpper Grand District School Board Government/Public Sector

Wellington Catholic School Board Government/Public Sector

North Wellington Health Care Health and WellnessArthur Family Health Team Health and WellnessMAPLETON IndustryTownship of Mapleton Government/Public Sector

Canada Post Outlet Postal ServiceMapleton Health Centre Health care and social

assistance

COUNTY OF WELLINGTON – TOP PUBLIC SECTOR EMPLOYERS

The list below details the top public sector employers (highest employment numbers) in each of the seven municipalities in the County of Wellington.

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2006 Actual - 2009 Estimated total experienced labour force 15 years and over by Industry (CHANGE)

Centre Wellington Erin

Guelph/ Eramosa Mapleton Minto Puslinch

Wellington North

Wellington County

Agriculture, forestry, fishing and hunting 14% 5% 18% 23% 19% -4% 13% 16%Mining and oil and gas extraction 10% -3% -12% -13% 60% 53% 60% 16%Utilities 39% -100% -48% -4% 2% -53% -52% -14%Construction 9% 4% 15% 14% 9% 20% 13% 11%Manufacturing 15% 10% 13% 15% 15% 13% 15% 14%Wholesale trade 4% 12% 16% 11% 19% 3% -5% 9%Retail trade 15% 5% 10% 17% 20% 14% 11% 13%Transportation and warehousing 4% 15% 27% 27% 30% 9% 20% 16%Information and cultural industries 40% 3% -29% 4% 51% 46% 3% 21%Finance and insurance 8% 9% -3% 5% -3% 5% -10% 3%Real estate and rental and leasing 31% 21% -1% 10% 30% 33% 27% 23%Professional, scientific and technical services 11% 10% 14% -27% 20% 15% 4% 10%Management of companies and enterprises Not avail Not avail Not avail Not avail Not avail Not avail Not avail N/AAdministrative and support, waste management and remediation service 14% -4% 20% 19% 6% 32% 20% 14%Educational services 16% 0% 17% 15% -5% 20% 23% 13%Health care and social assistance 20% 8% 17% 4% 21% 13% 15% 16%Arts, entertainment and recreation 5% 21% 13% -51% 20% 15% -38% 6%Accommodation and food services 7% 22% 14% 12% 14% 5% 6% 11%Other services 7% 9% 14% -20% 15% 9% 12% 7%Public administration -4% 24% 4% 46% 38% -13% -8% 6%All Industries 13% 8% 13% 13% 16% 12% 11% 12%

LABOUR FORCE GROWTH 2006 – 2009 ESTIMATES and 2011 Q1 TOP EMPLOYER PHONE INTERVIEWS

The figure below outlines the sectors in which Wellington County’s labour force is employed. Manufacturing, agriculture, health care and retail represent the largest fields of employment. 2009 estimates are obtained via Manifold Data Mining Inc. while contextual data comparing the same period last year was acquired by telephone interviews with the County’s top employers. 2009 Estimated total experienced labour force 15 years and over by Industry

Centre Wellington Erin

Guelph/ Eramosa Mapleton Minto Puslinch

Wellington North

Wellington County

Agriculture, forestry, fishing and hunting 631 373 400 1606 703 149 677 4539Mining and oil and gas extraction 22 29 22 13 24 23 24 157Utilities 97 0 21 43 61 14 12 248Construction 1017 544 708 610 365 300 575 4119Manufacturing 3696 1078 1357 1152 1170 653 1632 10738Wholesale trade 582 494 534 273 262 330 257 2732Retail trade 1399 656 657 444 467 435 658 4716Transportation and warehousing 621 466 433 280 259 299 372 2730Information and cultural industries 293 134 50 57 106 102 67 809Finance and insurance 471 212 256 142 63 163 104 1411Real estate and rental and leasing 308 151 109 44 52 120 57 841Professional, scientific and technical services 1124 610 519 77 66 397 167 2960Management of companies and enterprises 54 12 Not avail Not availNot avail Not avail Not avail 66Administrative and support, waste management and remediation service 658 303 252 119 165 211 318 2026Educational services 1141 356 654 293 232 319 197 3192Health care and social assistance 1578 421 717 292 580 355 724 4667Arts, entertainment and recreation 373 218 187 22 54 46 28 928Accommodation and food services 889 390 285 207 222 204 285 2482Other services 762 436 489 216 225 288 335 2751Public administration 428 291 311 153 62 105 119 1469All Industries 16144 7174 7961 6043 5138 4513 6608 53,581 The second figure summarizes the percent changes in the labour force encountered between 2006 and 2009. While the greatest absolute changes continue to be in the dominant fields of employment as noted above, the second figure is interesting because it illustrates that certain municipalities are undergoing a growth of their labour force into new sectors.

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2006‐2009 est. Change in Labour Force ‐ Centre Wellington

Health, 14%

Unique to processing, manufacturing and

utilities, 10%

Trades, transport and equipment operators

and related occupations, 15%

Business, finance, admin occupation, 15%Management, 9%

Natural, applied sciences and related occupation, 10%

Unique to primary industry, 23%

Sales and service, 11%

Art, culture, recreation and sport, 5%

Social science, education, government service and religion,

11%

2006‐2009 est. Labour Force Change ‐ Erin


utilities, 8%





9%

Health, 18%


Business, finance, admin occupation, 12%

Management, 5%



2006‐2009 est. Labour Force Change ‐ Guelph/Eramosa





19%

Health, 23%



Management, 15%Unique to processing, manufacturing and

utilities, 6%



Centre Wellington

Between 2006 and 2009, it is estimated that Centre Wellington experienced a 40% (83 persons) increase in the number of persons working in the information and cultural industries. This sector has been growing steadily in almost every municipality in Wellington, as the region has an advantageous infrastructure, both tangible and intangible, to support the production of creative products. For example, there are over 800 people in Wellington’s labour force manufacturing, distributing and/or retailing creative artistic materials, professional design or software. Both the health care and education labour force grew by 280 and 161 persons respectively. Phone interviews with health care sector employers illustrated a growth of 143% in the labour force over the same period last year, attributed to new health clinics in Erin and Guelph/Eramosa as well as greater demand for staff in retirement homes. Between 2006 and 2009, it is estimated that Centre Wellington’s business, finance and administration labour force grew by an estimated 323, a growth rate of 15%. Top employers in the retail industry noted that their labour force had declined 39% over last year. Greatest estimated increase in labour force between 2006‐2009:

1) Manufacturing: 481 2) Health care: 263

Erin

Given its charming downtown and rolling hills, Erin’s tourism sector continues to grow. Between 2006 and 2009, the accommodation and food services labour force grew by an estimated 70 persons, while arts, entertainment and recreation grew by an estimated 38 persons. Manufacturers in Erin had no significant change in the number of staff while construction, which experienced a federal spending boost, grew in jobs as did its complementary sectors (portable septics). Greatest estimated increase in labour force between 2006‐2009:

1) Manufacturing: 98 2) Accommodation and Food: 70

Guelph/Eramosa

The manufacturing and health workforce in Guelph/Eramosa grew by an estimated 157 and 102 persons respectively. One health facility hired 30 additional staff members over

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2006‐2009 est. Labour Force Change ‐ Minto

Health, 5%Sales and service, 13%

Art, culture, recreation and sport, ‐12%



utilities, 16%


9%

Natural, applied sciences and related occupation, ‐16%


Management, 24%



2006‐2009 est. Labour Force Change ‐ Mapleton

Natural, applied sciences and related

occupation, ‐5%

Health, 10%



Sales and service, 14% Art, culture, recreation and sport, 23%

Social science, education, government service and religion, ‐

3%

Management, 0%


utilities, 21%



2006‐2009 est. Labour Force Change ‐ Puslinch

Health, 11%



Management, 14%


8%







utilities, 7%

2009 while a wholesaler grew 68% over the same period last year. Greatest estimated increase in labour force between 2006‐2009:


Mapleton

Mapleton saw its agricultural labour force grow by approximately 296 persons, with 108 residents entering the sector unique to agricultural processing and manufacturing. Employer interviews showed that the wholesale sector fared well compared to the same period last year, one employer saw no change to his 61 staff, while another wholesaler hired 11. One manufacturer saw a decrease of 40% to his staff. Greatest estimated increase in labour force between 2006‐2009:

1) Agriculture: 296 2) Manufacturing: 147

Minto

The town of Minto saw a growth of 36 persons working in the information and cultural industries. Its agricultural labour force grew by 113. One agricultural retailer created 10 new positions over the same period last year. Mining is used in a broad sense to include any crushing, screening or washing in addition to the extraction of natural minerals and the labour force in this sector is estimated to have grown by 9 persons. Between 2006 and 2009, Minto experienced an estimated 67 new management positions (24% over 2006) and 156 new business, finance and administrative jobs (29% over 2006). One local manufacturer hired 80 new staff (17% increase), another agricultural manufacturer hired 10 (19%), while a construction company lost 13 jobs (18%). Greatest estimated increase in labour force between 2006‐2009:

1) Manufacturing: 150 2) Agriculture: 113

Puslinch

Between 2006 and 2009, it is estimated that the labour force in Puslinch grew by 32 persons in the information and cultural industry, 55 in the retail sector, 54 in education and 52 in the professional, scientific sector. From employers’ perspectives, one transportation company

24

2006‐2009 est. Labour Force Change ‐ Wellington North


utilities, 10%





Art, culture, recreation and sport, 24% Health, 16%

Natural, applied sciences and related

occupation, 28%


Management, 10%

Social science, education, government service and religion, 5%

consolidated and moved operations outside of the County, while another saw a loss in 40% of the workforce. Greatest estimated increase in labour force between 2006‐2009:

1) Manufacturing: 73 2) Retail: 55

Wellington North

In Wellington North it is estimated that the labour force working in the business, finance and administrative sector grew by 16% or 111 persons, while natural and applied sciences grew by 74 persons (24%) and art, culture, recreation and sport grew by 22 persons (24%). Employer phone interviews showed that one agricultural wholesaler increased staff by 15 jobs (19%), manufacturing experienced a 60% growth in jobs and the health care sector increased by 150% with 58 new health care jobs. Greatest estimated increase in labour force between 2006‐2009:


Across the board for Wellington, the greatest increase in the labour force has been in the manufacturing sector with an estimated growth of 1,318 persons followed by health care and social assistance (642) and agriculture (634). Real Estate

The Workforce Planning Board recently released data to show that the Real Estate sector saw 163 new employers in Wellington and Guelph between 2008 and 2010.12 This sector includes appraisers, those managing or providing real estate services, leasers, as well as real estate agents. Interviews show Wellington’s real estate brokers associate this with an increase in the number of starter homes being built and sold around the County.13 Another reason cited is a surprising growth in the number of investors purchasing rental properties, where the majority of the investors are from within the County. One realtor noted that “it used to be that one person owned one rental but since 2009, with low interest rates, there has been a growth in the number of group investors raising funds to own larger buildings for rental purposes.” It was also noted that there are more residential starts than commercial due to commercial being more economy‐driven and less financially secure than residential, hence why since 2008, most commercial units are expanding rather than investing in new lots and facilities. Another industry professional noted “we have enough land available but we need to be more aggressive in providing reasons for why businesses should locate here – specifically, incentivizing development charges to attract employers. While Mapleton Township is growing

12 Statistics Canada Business Patterns via Workforce Planning Board Waterloo Wellington Dufferin (December 2008 - June 2010) 13 Interviews with two real estate brokers in Wellington County April 28, 2011

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“We only make money on cash crops when other countries have a disaster. Last summer it was Russia, so that is where our barley has been shipped to. Our future focus should be on energy production from waste.. what we need is an ethanol plant.”

and its township has a business‐friendly permit process, other townships make this process more difficult.” Farming

The sector which experienced the greatest decline was around animal production (those establishments which are primarily engaged in raising animals, total of 614 jobs lost in Wellington County14). An interview with the President of the Wellington Federation of Agriculture (WFA) provided insight as to reasons for why large farming operations are growing in Wellington County while medium to small farms are facing difficulties. Below are factors contributing to the decline in animal production: 1) 2009 pig industry crushed by H1N1, made worse by the media because it was referred to as swine flu. For example, one farmer in Belwood was forced to take the Federal government buyout. He used to raise 750 sows (producing 8 piglets each and farrowing twice per year) at an average 5 year price of $50, causing a loss of $600,000 to the local community. Chicken and dairy farms are doing relatively well through supply management commodity boards. 2) Interest rate increases have increased farm debts. 3) The urban sprawl (GTA expanding to the west as Wellington has beautiful properties which are close to the 401 corridor) 4) The average farmer is 56 years of age. Many farmers are left to make the decision to shift to cash cropping. This is also a risky decision because Wellington’s grain production is not for human consumption and the decline in animal production lessens the demand for animal grain. Most of Wellington’s grain is thus exported outside of the County, but some farmers are feeling the pinch on their margins with freight costs increasing. 5) Industry volatility: Compared to 30 years ago, Wellington’s beef industry has significantly declined. Ten years ago Mad Cow Disease dropped prices and only now, a decade later, beef cows are again profitable. The farming industry is a volatile one and many farmers are facing difficulties with succession planning. The volatility was described by one farmer who grew barley and because he could not make a profit on its sale all winter, he stored it until receiving a ‘lucky’ call from an exporter in Hamilton who was willing to pay top dollar and clear the shipment within 48 hours. Sector Opportunities: Since 2006, Wellington’s agricultural labour force has grown by circa 1000, a 16% increase. According to the Workforce Planning Board, food services and drinking places increased by 2.4% in Wellington and Guelph between June 2009 and June 2010. This is in contrast to Grey, Bruce, Huron and Perth counties, all of which showed declines.

14 Statistics Canada Business Patterns via Workforce Planning Board Waterloo Wellington Dufferin (December 2008 - June 2010)

26

Canada’s population growth is being driven by immigration.15 New consumers means new needs and this translates into new product opportunities and new business imperatives. Wellington is adjacent to the GTA, which spends $9 million worth of food per day and where 47% of the people living in the GTA are not Canadian born.16 The market for ethnic foods is one that has not been taken advantage of by Wellington County’s ag‐industry. A futurist speaking in Guelph recently noted that “by 2031, 30% of all Canadians will be visible minorities – and especially East Asians have greater shopping basket values when it comes to food shopping.” A University of Guelph survey of 700 Torontonians asking what ethnic foods they would like to see produced some interesting results. Torontonians requested okra, yard long beans, Chinese hot peppers, amaranth, Asian eggplant, fuzzy melon (type of zucchini) – all of which are hard to find and difficult to ship over large distances. Included in this list was the Indian Red Carrot, high in Vitamin C, antioxidants and sweeter than our common carrot. Vineland Ontario’s Crop Production team recently discovered that Wellington already has the existing agricultural infrastructure and manufacturing processing facilities able to grow such produce. These crops show potential because Wellington’s growers could cultivate them during the regular growing seasons. A market assessment on such crops and the commercial demand for such products could pose as advantageous for Wellington. Campbell’s Soup, for example, is interested in Maca, a root crop native to Peru. The WFA notes that there are also opportunities with food linkages and supporting producers, equipment suppliers, mechanics and abattoirs as Wellington has the capacity to grow what our region demands in food. A fair number of small farms are creatively distinguishing themselves via value added on‐farm processing and are networking to grow the sector sustainably. A conference in April by the Rural Ontario Institute showed that municipal planners need to and desire to know more about how land‐use policies impact farm businesses. As Wellington’s agricultural sector continues to innovate, the skill sets required in this industry are also changing. In response, last year Conestoga College opened its doors to its new Institute for Food Processing Technologies and offer programs geared towards food processing and food manufacturing where 90% of the three year course is on‐the‐job. Although the agricultural sector across the province has been faced with new challenges, the future for the industry in Wellington continues to grow. Mapleton, which is the County’s most agriculturally dominated municipality, has issued over $10 million in agricultural building permits issued in each of 2009 and 2010.17

15 Canada's Population Growth driven by Immigration,Tuesday, January 04, 2011 as first shown in the National Post. 16 http://www.betterfarming.com/online-news/ethnic-diversity-%E2%80%98game-changer%E2%80%99-ontario-growers-3551 17 County of Wellington Planning and Development Department. June 2011.

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Labour force working in Wellington County (25,815 – 56% of the LF)

• Wellington North (4,515) • Minto (2,990) • Mapleton (3,310) • Centre Wellington (8,510) • Erin (2,645) • Guelph/Eramosa (2,515) • Puslinch (1,330)

Origin of Workers Employed in Wellington County

Wellington County72%

Waterloo Region8%

Northern Counties6%

Greater Toronto Area3%

Guelph7%

Elsewhere4%

Total Jobs = 35,655

Source: Statistics Canada 2006 Community Profiles and Custom

Tabulations

Place of Work of Resident Labour ForceWellington County

Greater Toronto Area13%

Waterloo Region10%

Northern Counties

4%

Guelph15%

Wellington County56%

Elsewhere2%

Employed Labour Force = 46,420Source: Statistics Canada 2006 Community Profiles and Custom Tabulations

COMMUTING PATTERNS

According to 2006 Census data, approximately 56% of Wellington County’s labour force have their usual place of work in the County. Below is a breakdown per municipality.

The above origin of workers graph shows that 72% of jobs within the County are held by Wellington workers. The chart on the following page outlines where workers in each municipality live compared to where they commute daily for work. The chart can be summarized as:

1) The northern municipalities have a greater number of workers employed in their municipalities of residence or within the County (42% Wellington North’s labour force work within Wellington North). Of those that commute, they tend to drive to neighbouring Peel and Perth counties and to Waterloo Region.

2) The southern municipalities have the greatest proportion of commuters and they tend to drive to jobs in Waterloo Region, the GTA and Guelph. Those in the central municipalities are dispersed between Guelph, the GTA and Dufferin.

3) Centre Wellington Township has over 60% of its labour force working within County and of these workers, about three quarters work in the Township. Commuters from Centre Wellington drive to Guelph, Waterloo Region and to a lesser extent, the GTA. There are a growing number of rural residents driving to Waterloo Region and specifically, the Technology Triangle on a daily basis.

28

2006 Employed Labour Force by Place of Work

Source: Statistics Canada 2006 Community Profiles and Custom Tabulations

The following chart details the employment base in Wellington County and the geographic origin of workers:

1) In the north, at least three quarters of the jobs in each municipality are held by County and local resident workers. These municipalities draw additional workers from Grey County, Huron and Perth. Mapleton also attracts just under 10% of its workers from Waterloo Region.

2) In the south, there are large differences amongst the municipalities as to the origin of workers in local jobs. In Puslinch only about one third of jobs are held by County workers. Puslinch draws its workers from Waterloo Region, Hamilton, the GTA and other southern Ontario communities. In Guelph‐Eramosa, just under 60% of jobs are held by County workers and other workers commute in from Guelph, Waterloo Region and the GTA. Erin’s job base is largely composed of workers from within the County and within the municipality (82%). The remaining workers are mainly drawn from Dufferin County, Peel Region and Guelph.

3) Over 84% of Centre Wellington’s employment base is made up of workers from within the Township and County. Commuters to Centre Wellington jobs come from Guelph, Waterloo Region and Dufferin County.

In recent years, there has been an increasing number of workers from many parts of the County commuting to Waterloo Region which is also known and “Canada’s Technology Triangle”. Workers from Waterloo Region are also commuting to jobs in many parts of Wellington County. This indicates a growing relationship forming between the County and this important economic area.

29

2006 Employment Base by Place of Residence of Workers

Source: Statistics Canada 2006 Community Profiles and Custom Tabulations

•48% (2,060) Guelph/Eramosa and Puslinch jobs held by Guelph workers •16% (955) Wellington North jobs held by Grey County workers •Circa 7% (2,400) Wellington jobs held by Waterloo Region workers

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Establishment of the Wellington County Municipal Economic Development Group (monthly meetings, beg. Aug. 2010)

Federal Government application for funding submitted to undertake a Wellington Economic Development Strategic Planning process (Jan. 2011)

Official member (Destination Marketing Office) of the Regional Tourism Organization (RTO4), participating in two marketing campaigns and two product development initiatives (ongoing since Mar. 2010)

Notice of success for application to receive a Rural Development Officer to establish a tourism stakeholders, products and experiences inventory

Ontario Municipal Rural Broadband Partnership project; coverage in 75% of all rural areas by September 2011

County planted its 1 millionth tree under the Green Legacy Programme, making it the largest municipal tree planting programme in North America

The archives addition at the Wellington County Museum and archives officially opened

Completion of the County’s new Centre Wellington O.P.P. Operations Centre 21 local schools received the 2010 Green Legacy Gold School Award. Every student in every grade participated in the County’s community tree planting programme.

Fergusson Place, 55 new affordable housing units in Fergus officially opened The County rehabilitated 3 full bridges and 1 partial bridge Approximately 24km of County Roads were repaved The County surpassed its goal for the 2010 United Way campaign raising $42,099

The Mount Forest Library branch was renovated and reopened An outdoor pavilion was constructed at Wellington Terrace Long Term Care Home for residents to enjoy.

The County completion of a new library branch in Puslinch

COUNTY OF WELLINGTON: 2010 ‐2011 HIGHLIGHTS

The recent incorporation of the RTO4 has enabled Wellington County to participate in a collaborative and strategic approach to tourism. This opportunity will engage Wellington’s tourism operators and integrate many of its activities at a much higher level and with much greater leverage. RTO4’s record of success stems from its superior organization, proven by having been the second RTO in the province after Toronto to incorporate and create four successful initiatives in 2010 alone. Wellington offers a variety of activities for its visitors. Its many outdoor experiences attracted 259,000 visits in 2008 while 38,000 visits were made the same year to Wellington County for its festivals and events.18 National parks, cultural performances and its numerous museums are also points of interests for people traveling to Wellington. The industry brought $168 million to Wellington in 2008 and initiatives which encourage overnight visits will continue to increase this value.

18 Source: Statistics Canada, Travel Survey of Residents of Canada (TSRC) and International Travel Survey (ITS), 2008

31

YEARS IN WELLINGTON COUNTY0 to 5 3%6 to 10 9%11 to 15 13%16 to 20 9%21 to 25 13%>25 53%

RESPONDENT NAIC SECTORAgriculture, forestry, fishing and hunting 4%Mining and oil and gas extraction 0%Utilities 3%Construction 10%Manufacturing 28%

Wholesale Trade 10%

Retail Trade 22%

Transportation and warehousing 6%

Information and cultural industries 0%Finance and insurance 0%Real estate and rental and leasing 0%Professional, scientific and technical services 3%

Management of companies and enterprises 0%Administrative and support, waste management and remediation service

0%

Educational Services 3%

Health care and social assistance 3%

Arts, entertainment and recreation 3%

Accomodation and food services 3%Other services 2%Public Administration 0%

Year of Start (Age of Business) Percentage Absolute Number<1950 5% 21951‐1970 25% 81971‐1980 13% 41981‐1990 13% 41991‐2000 31% 102001‐2010 13% 4

COUNTY OF WELLINGTON: INDUSTRY SURVEY 2011

In March of this year, the County undertook a survey of a portion of its top employers in order to gain the private sector’s perspective on what it is like to do business in Wellington. The survey was a way to create a rapport with a section of the business community, to listen to employer needs and concerns and learn about sector trends. It was encouraging to see that key decision makers were very willing to share their information and views, as interviews averaged 45 minutes in length.

Respondent Details

The survey results showed that the bulk of the County’s top employers have been here for a significant length of time – 90% of businesses surveyed have been operating in the County for over 10 years, 70% for over 20 years. 56% (18 businesses) interviewed have been in operation for more than 20 years. Only four businesses interviewed were less than 10 years old.

Given that the County’s larger employers were interviewed, it is not surprising that the sectors included Wellington’s longest standing industries: manufacturing, retail, agriculture, construction and transportation.

Purpose: To create a rapport, identify current and future business needs and gain employer’s perspective on Wellington’s business enabling environment. Timeline: March 29 – April 25, 2011 Total respondents: 32 randomly chosen top employers (approx 5 per municipality) Method: 31 face to face interviews, 1 electronic response Avg interview length: 45min Respondents: key decision makers or designated responsibility % Respondents said they “would be willing to complete a survey like this one every 6 months”: 72% % Respondents said they “would be willing to answer any further industry questions”: 94%

32

REASON FOR LOCATING IN WELLINGTON (Check all that apply)Close proximity to customer base and/or suppliers 43%

Transportation access and mobility (parking ease, close to highways, unclogged roads)

25%

Originally from the area, came to start‐up or return to business

17%

Low business costs 13%

Strong infrastructure (broadband network, utilities support)

3%

Strong quality of life 3%

Availability of a wide range of labour 0%

Appropriately educated and technically‐skilled workforce

0%

Other 45%

PFT ‐5 6%6 to 10 6%11 to 20 26%21 to 50 24%51 to 100 13%101 to 150 9%151 to 200 0%

>200 16%

PPT ‐5 63%6 to 10 0%11 to 20 6%21 to 50 6%51 to 100 13%101 to 150 6%151 to 200 6%

>200 0%

Seasonal ‐5 38%6 to 10 25%11 to 20 6%21 to 50 13%51 to 100 18%101 to 150 0%151 to 200 0%

>200 0%

Offsite ‐5 44%6 to 10 14%11 to 20 14%21 to 50 14%51 to 100 0%101 to 150 14%151 to 200 0%

>200 0%

# employees

41% (13 businesses) interviewed had ties to headquarters elsewhere, impacting all major decisions Permanent, long established operations in the manufacturing, construction and retail sectors speak for the 16% that employ over 200 permanent full time (PFT) positions where the bulk employ up to 50 PFT staff (62%). Permanent part time (PPT) assistants are mainly in the retail sector. Seasonal staff includes everything from coop students to physicians; additional staff to support peak demand periods. Offsite staff involves sales persons or construction workers, for example.

#1

Why Wellington?

Businesses were asked for the reasons why they originally located their operation in Wellington. For independent businesses, five were family businesses whose locations were specific to them having been born and bred in the area. One employer said he had returned to where he was raised in Wellington to open his own business, but that it was also high speed internet availability which resulted in this decision. For other independents it was the availability of an existing plant or the proximity to aggregates. For one large retail establishment it was apprehending future land developments resulting in increased traffic flows. For those whose decisions are determined by headquarters elsewhere, their geographic location was often cited as strategic for the supply chain, attributed to low regional

33

Access to skilled labour 20%

Job opportunities 4%

Economic diversification 1%

Business confidence/feeling of control over the direction the operation is heading

7%

Interest Rates 0%

Access to Financing 3%

Inflation/Cost of living/Affordability 7%

Global economic slowdown 17%

Municipal Government Services 2%

Municipal Government Roads, Sewers 1%

Business funding programs 3%

Taxes 18%

Utility rates 17%

"IN YOUR OPINION, WHAT ARE THE 3 MOST PRESSING ISSUES FACING WELLINGTON'S ECONOMY TODAY?"

Needed: •AZ & DZ drivers •Machine operators •Skilled trades (chemicals, paints, welders, millwrights) •Nurses and Care workers •Doctors •General labour •Assemblers •Information technology •Service technicians •Customer service •Forklift operators •Sales representatives •Line staff •Process & Trial engineers •Accountants •Communications •Food handling

business costs or the availability of existing land or facility.

Wellington’s Economy

Employers were asked to choose from a list of what they feel are the most pressing issues facing Wellington’s economy today. Many interviewees resorted to thinking of their top operating expenses which were most always labour and utilities. Many of the large employers noted that natural gas, water and hydro are becoming increasingly expensive. Automated equipment and machinery requires extensive hydro and a few employers in the concrete sector specifically noted that they need gas to heat the water to steam‐cure the concrete, again, using enormous amounts of energy and “when the hydro bill goes up 8%, it causes pressure to fill the margins.” Some respondents noted federal issues; producing Canadian is becoming ever more difficult. For instance, to manufacture a $300 item in Wellington and pay utilities, labour and supplies and another $150 in taxes on that item was cited as unfair compared with the Canadian government charging only $50 in import taxes for Chinese manufacturers importing the same product where their operating expenses are significantly less in the first place. Those whose decisions are made by an external parent company said that all utility contracts are pre‐negotiated. Many employers spoke of the rising cost of fuel and the impact this is having on various operations. A global slowdown has the ability to have serious impacts on the bottom lines of many sectors, not excluding Wellington’s top employers. Six employers agreed that property taxes and specifically, the rate of property tax increases, are one of the most pressing issues. Interestingly however, it was access to skilled labour which was cited as the most compelling factor. Access to Skilled Labour: Please refer to the adjacent list of job descriptions declared as currently required by the respondents. Many freight companies expressed concern for an industry which is dominated by an older workforce used to the demanding life of a truck driver. Others said that it is difficult to find people with paint/chemical backgrounds. Increased levels of automation necessitate the need for millwrights and PLC (program logic control) workers; those that are not only able to operate the machines but also maintain them. While many employers communicated their difficulty in finding skilled local individuals, certain others expressed difficulty in finding people who are willing to work.

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Consistent with the industry survey, last week Canada Business News Network noted that “the slack is slowly disappearing in the economy, with companies hiring for new positions, they have already if was necessary, retired temporarily laid off staff and seen those not rehired move on.”

Ventures in the northern part of the County said that it is difficult for them “to find general labourers that actually want to work 5 days a week” so they often hire outside of Wellington. Increasingly however, as source deductions continue to rise, one businessman noted that there is an “underlying assumption that labour is just a commodity, but employers really need to invest in their people first to ensure they fit with the business, grow with the business and stay with the business.” The aging population serves many of Wellington’s retail operations so that while Guelph and Kitchener Waterloo may have younger staff than in Wellington North for example, retail operations here pride themselves on customer response on superior customer service and money management skills in addition to lower turnover rates. For most factory operations, hiring general labour from within Wellington is relatively easy, whereas acquiring process engineers or trial engineers for example, proves more difficult. Employers find that as the economy improves it becomes more difficult to pay the wages competitive to neighbouring Kitchener Waterloo and to incentivize workers to relocate to Wellington’s rural communities.

An interview with the Chair of Apprenticeships and Trades at Conestoga College echoed this sentiment, stating that “there is resurgence in the manufacturing sector in Wellington and Waterloo.” Testament to this resurgence is that Conestoga’s Basic Machine Operator program which is 16 weeks in class followed by 16 weeks of paid on the job, currently holds 18 spots, but the Chair said he is facing 48 companies requesting placements. 70% of apprentices are currently working over time. According to the industry, this is a sign that there are not enough workers being hired. The College, which connects employers with students, says they “are getting at least one phone call per week and that the industry has shifted, splitting workers into highly skilled technical positions versus machine operators. The general labour position is gone. Companies now require production operators, paid $16/hr for workers that can concentrate for long hours and that are teachable.” Many companies, including those manufacturers’ interviewed in Wellington’s Industry Survey, are paying for corporate training to upgrade employee skills. The shift to specialized and high‐tech manufacturing has also affected the growing food manufacturing sector. As of December 2010, there were 62 food manufacturers in Guelph Wellington, compared to 15 in Dufferin County and 115 in Waterloo.19 The food processing sector requires mechanical, electrical and computer skills in addition to food safety and sanitation while in the manufacturing sector assemblers are now hired and then trained on quality control, problem solving and blueprint reading.

19 Workforce Planning Board Waterloo Wellington Dufferin April 2010

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No. %

INTERNAL 17 53%

EXTERNAL 15 47%

DO YOU MAINLY SERVE INTERNAL TO WELLINGTON COUNTY OR IS YOUR MARKET OUTSIDE THIS AREA?

"HOW WOULD YOU RATE WELLINGTON AS A PLACE FOR INVESTMENT?"

Agree Disagree Neutral

High quality of life 88% 3% 9%

Vibrant and open community 69% 6% 25%

Quality labour force 62% 19% 19%

Adequate communications technology 59% 19% 22%

Wide availability of cost effective utilities 22% 38% 40%

Diverse economy for overall business attraction 44% 22% 34%

Road infrastructure up to standard 59% 13% 28%

Low cost of doing business/Cost to run the organization in Wellington is low

32% 28% 40%

Quality educational facilities 69% 0% 31%

Affordable housing values 60% 9% 31%

Proximity to urban centres 91% 6% 30%

1) Proximity to urban centres2) High quality of life3) Quality educational facilities AND Vibrant, open communities4) Quality labour force5) Affordable housing values6) Adequate communication tech AND Road infrastructure

Wellington County: Economic Attributes as rated by Respondents

Wellington County for Investment

Below is a listing of Wellington’s business‐ready attributes as rated by the survey respondents. Second to proximity to urban cores, quality of life is seen as particularly high in the region. Many employers feel a deep connection with the area and view working in Wellington as a part of their way of life. It is no surprise that publications such as MoneySense continuously rate areas within Wellington County as one of Canada’s Best Places to Live.20 A few businesses noted that the quality of high schools in Wellington are key to their workforce as they regularly hire high school graduates for apprenticeships. Testament to Wellington’s vibrant communities is the community’s high engagement in volunteerism, contributing their talent, energy and often own funds to local organizations at 24% more than the provincial average.21 Again, access to skilled local workers entered the conversation. The shift towards less transient skill sets was noted by one employer who said “it used to be that general labour was required for arranging appointments, completing service sheets and setting up calls. Our job descriptions have shifted in the past few years such that the bottom end workers are being bumped out. Our individual operators are now performing these functions electronically while on the road.” As part of the Ontario Municipal Rural Broadband Partnership project, all rural areas in the 7 municipalities will gain high speed internet access by September 2011 and this would revise the survey results relating to availability of communications technology. A few businesses commented on Erin’s lack of natural gas and a sewage treatment plant as a hindrance for investment.

20 MoneySense magazine March 29, 2011. Centre Wellington #34 out of 180 and Guelph #18. 21 Guelph & Wellington’s Vital Signs 2008, The Guelph Community Foundation. P. 26

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“The recession was everybody’s disaster, we reduced overhead to adjust to new sales levels and I was required to be more creative as a manager. It certainly put me to the test.”

Again, like in many parts of the province, utility providers in Wellington are minimal and those without headquarters to pre‐negotiate prices felt that this needs attention. Economic diversity tended to differ between rural areas and downtowns where employers in rural towns noted that it was not easy for them to host business lunches locally or run errands during the day.

The Economic Downturn: Impacts on Employers

Interviewees were asked to share how they fared between the beginnings of the global recession in October 2008 to date. Note that the chart below illustrates the direct impact the recession had on businesses and less so their position or resurge to date. So while 69% of respondents said that they were negatively impacted by the downturn, a great majority noted their situation to have changed considerably within the past year.

1) Almost 70% of businesses had to shuffle resources to adapt to “pinched margins.” 2) 28% of employers experienced no significant change; all 6 have headquarters

elsewhere – where contracts, pick‐ups and process amounts are all determined irrespective of Wellington’s economic conditions.

3) Businesses in the concrete sector experienced significant layoffs. Most of the land in Wellington was already developed before the recession struck so that in 2009, there was a significant drop in business as pipes, manholes and sewers were already constructed and dropped in. Since the competition for aggregate manufacturing is high (5 other businesses in the industry in the County’s north end) one employer is taking jobs in the Windsor/London area and absorbing the 30% increase in fuel prices because this is a premium not normally passed onto the customer.

Employer – Staff Loyalty High in Wellington County: It is very noteworthy that during the recession, a great majority of employers voiced a conscious decision to take steps in order to not lay off their workers. Many reduced hours and cut production, but their creativity and dedication was ultimately put to the test during a difficult period which some are still undergoing. One employer said he sincerely valued his staff and recognized their benefit to the company and that it was now the company’s position to display commitment to the workers. Another employer made the comment that “how many companies in Toronto would keep the labour force if sales and margins plummeted like they did here?”

Postively (growth) Not caused significant change

Negatively (slow down)

3% 28% 69%

"HOW HAS THE RECENT RECESSION IMPACTED YOUR ORGANIZATION?"

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Those employers who were affected by the March 2011 natural disasters in Japan were able to apply what they learned about creating necessary efficiencies during the recession to handle the new crisis. In line with a recent article on the concerns of Canadian businesses,22 Wellington County employers would like provincial business expenses and regulatory costs to decrease as they are seen as hampering regional economic growth. Below is a list of comments as captured by respondents of the Industry Survey:

22 Canadian Federation of Independent Business, SME Business Outlook Survey, February 2011

COUNTY OF WELLINGTON INDUSTRY SURVEY 2011 COMMENTS TO RECESSION

•“Brutal 2008, better 2009, never laid off, only reduced hours” (manufacturing)

•“Lost 25% in 2009, now recovering” (freight) (agriculture) •“100 layoffs, but hiring this year” (manufacturing) (freight)

•“Reduced overhead, went to work‐share in the plant & office, recession was everybody’s disaster” (manufacturing)

•“2 year lag until recession creates negative habits like drinking, depression” (hospital)

•“Handled recession ok, reduced shifts but committed to not laying off workers” (manufacturing)

•“Only feeling the pinch now, people lost jobs, spending less, HST impact ‐ so sales down 20%” (retail) (hospitality)

•“People did not purchase new items but rather fixed existing ones” (retail) (automotive sales)

•“No change” (agriculture) (tourism‐golf course & camping)

•“Downturn spawned new competitors so we had to drop our prices” (mining, extraction) (construction)

•“Stimulus increased business, now no more stimulus and having to lay off” (construction) (professional‐consulting)

•“During downturn, we get more business as our high‐end competitors lose business” (retail)

•“Significant impact ‐ scaled back 40% in volume, restructured and 20% decline in workforce, but this year, back on target” (construction) (manufacturing)

•“Forced to write off $10k as customers not able to pay their bills last year” (utilities)

•“Fuel prices increased, so transport costs increased, so our margin decreased and average customer purchases decreased $4/basket” (grocery)

•“18 month slowdown, reduced workforce 30%” (ag equipt manufacturing)

•“Many families forced to relocate out of the County to cheaper housing because lost jobs, translates into fewer students to teach and projected loss of $9,500/student” (education)

•“Sales down, margins tighter‐ shuffling resources” (wholesale/warehousing)

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“Canadian entrepreneurs feeling more upbeat: increased optimism about the economy and their own business prospects, according to the Ivey Entrepreneurs Index” The Globe and Mail, May 3, 2011

Hire new staff 78%

Hire former staff 16%

Adjust your Operational/Business Plan 44%

Collaborate with industry partners in Wellington 31%

Collaborate with industry partners outside of Wellington

69%

Increase revenues 69%

Gain new customers 75%

Purchase new equipment/capital 66%

Conduct/Undertake training 81%

Participate in a networking event 56%

Increase employee salaries 69%

Plan a team building event 72%

Implement an environmental ‘green’ strategy 69%

Collect research 47%

IN THE NEXT 6 MONTHS, DO YOU EXPECT YOUR ORGANIZATION TO…. (CHECK ALL THAT APPLY)

“CFIB vice-president and chief economist, Ted Mallett: "Nonetheless, the overall positive result masks some pretty large regional and sectoral differences, suggesting there are growing internal pressures in the economy." According to Mallett, the run-up of energy prices has widened the 'outlook gap' between producing and consuming provinces. Perhaps the most surprising result is in Ontario, where optimism spiked upward by five points in the month, despite rising energy prices and the dollar; these forces have not dampened the outlooks of manufacturers, wholesalers or construction businesses.” CFIB, April 2011.

Wellington Employer’s 6 month Outlook

Business representatives were asked to share their activities for the next six months and surprisingly, more than three quarters said they were planning on hiring. Canadian small and mid-sized business confidence increased in April 2011, to the highest level since 2005.23 These positive prospects can also be seen at the regional level where 75% of companies interviewed expect to gain new customers this year and 69% expect to increase revenues. Only four employers said they were planning on re‐hiring staff that had been made redundant during the past year. The Chair of Conestoga College echoed this theme saying that employers were investing in their existing workforce via bridging programs to upgrade skills. Only one third of employers network within the County (ie: attending Chamber functions) while a greater portion communicate more with external stakeholders and partners (ie: industry associations, embassies, trade shows or that this was left to the parent company). 69% plan on increasing employee salaries before the end of 2011, though most of these increases fall in line with regular cost of living rate increases. 66% plan on investing in new capital expenditures. Five manufacturers are making significant investments in automated machinery, one freight company is investing in new trucks and trailers and three hospitals are investing $1M worth of new monitors and beds. While many companies in Wellington are mandated to implement regular energy conservation strategies, others are implementing their own management measures via industry program implementation, or using fuel saving devices in their trucks, waste strategies (ie: produce to farms), new lighting, recycling or noise reduction processes. One manufacturer spends millions per year in water and byproducts reduction schemes. Three employers are currently researching solar programs for their properties.

23 Canadian Small Business Confidence Highest in 5 years: CFIB: http://www.cbc.ca/fp/story/2011/05/04/4725816.html

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Information to Assist Local Business

When asked whether they would be interested in receiving economic data that may assist in their business planning activities, the majority of Wellington County’s employers feel confident that their sales and research teams are sufficiently providing them such information. A few businesses regularly outsource market research to data mining firms.

Growth Restraints

Six of the 32 survey respondents expressed zero restraints to any immediate potential investment or expansion decisions. One local wholesaler recently pursued two major acquisitions. The remainder expressed limitation issues with rate increases specific to property taxes and utilities. Agriculture and food manufacturers and processors are ‘feeling pinched’ as their prices are directly linked to the price of raw materials. Grain and soybean prices for example influence feed prices for animal producers. This premium is not passed onto the customer by large restaurant chains that are receiving the processed goods and so they are less lenient to accept such price differences. Most manufacturers have invested millions in Ministry of Environment permits and facility upgrades such that their focus is on revenue generation rather than plant expansions in the next year. The following page shows a list of interviewee comments regarding business growth constraints.

Identifying new customers 50%

Industry information 47%

Consumer information 41%

Growth opportunities 38%

Competitor information 38%

Regional economic information 38%

WHAT INFORMATION WOULD YOU BE INTERESTED IN TO HELP YOU MAKE BETTER BUSINESS DECISIONS? (CHECK ALL THAT APPLY)

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BUSINESS/MARKET RELATED: •“Finding locally qualified people” (retail) •“Working capital, it’s extremely difficult as SME to break into market” (professional) •“Two recent major acquisitions” (wholesale) •“Recent merger, now focus is on corporation success” (wholesale) •“High cost of doing business” (freight) •“Lack of capital and operating funds” (manufacturing) (education) (hospitality) (construction) •“Need land to be able to develop on to expand business” (mining/extraction) •“Need help controlling expenses for growth opportunities” (manufacturing) •“Grain, soybean, fuel price increases, so our margin decreases because cannot be passed onto customer” (manufacturing) •“Succession planning” (retail) •“Need to assess market potential” (construction) •“Operating costs‐ labour, utilities” (wholesale) (manufacturing) •“Supply… closing abattoirs are bad for business” (manufacturing) HQ RELATED: •“Minor investments made locally but larger restricted to HQ decisions” (mining/extraction) •“Market conditions, lack of investors” (manufacturing) •“Proof of success to shareholders” (manufacturing) (agriculture) •“Our location is determined by the price to get our product to market, expansion maybe next year but depends on fuel prices” (manufacturing) GOVERNMENT RELATED •“Lack of waste water treatment in Erin” (manufacturing) •“Site specific zoning does not allow for us as industrial, to expand because actually agricultural designation” (manufacturing) •“Expansion limitations” (retail) •“Provincial government funding” (health)

Q: WHAT, IF ANYTHING, IS KEEPING YOUR ORGANIZATION FROM MAKING

ANY FUTURE INVESTMENTS?

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Wellington’s Top 2 Strengths

Employers were asked to share their view of the two best features for living and working in the County of Wellington. Many interviewees spoke of their work experience around the country and internationally and consistent with the majority of interviewees, they said how much they “appreciate being able to do business in a place as great as Wellington.” The strengths are listed below and in addition to the aforementioned socio‐economic advantages, one employer summarized his answer with “we are close to everything and yet far enough away.” From a living perspective, employers conveyed their satisfaction with the quality of life, cultural and recreational activities and cost of living.

GEOGRAPHICAL PROXIMITY TO OTHER KEY LOCATIONS: •proximity to 401 •location, far enough away but close to everything (US, hwys, water, urban centres) •location to major highways (central location provides easy access) •proximity to U of G (coop students, ag research) •proximity to UW, Laurier, Community Colleges, RIM, Perimeter Institute •location‐close to GTA but heart of agricultural area •Educational facilities (# of high schools critical to draw grads) ATTRIBUTES PERCEIVED AS ATTRACTIVE/UNIQUE TO RURAL COMMUNITIES: •small town atmosphere, farming community •far enough away, but close to everything •low wages and housing costs •Grand River Watershed •low cost of doing business •loyalty of customer base •great rural/urban mix •easy to connect with those governing the community •natural resources (gravel and farmland) •positive, family orientated, safe region •culture, community (originally from KW, much nicer here) •low employee cost of living •permits and regulations much quicker to access thru County than thru the City of Guelph •the people are great, genuine people •landscape and natural beauty (customers prefer rural location) •Elora and Fergus have heritage charm but still deemed progressive from a business perspective •people are generous, open communities •small enough to be close‐knit •you know the family/background of each person hired •strong rural work ethic •strong community festivals and events driven by volunteers

Q: WHAT DO YOU CONSIDER AS WELLINGTON’S TOP TWO STRENGTHS?

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Wellington’s Top 2 Weaknesses

A majority of the weaknesses described below are duplicated in most rural communities across the province. While there is consensus that there are many advantages to investing in Wellington, one employer spoke for many when he said that the “spirit of the County needs to be open, transparent and passionate for growth. We are all in the service business, we need to be clear and transparent with our clients and the County should do the same with theirs.” A few interviewees request better communication of the use of tax dollars in layman terms and in general, desire a cohesive relationship between upper and lower tiers of government to ensure a business enabling environment.

Q: WHAT DO YOU CONSIDER AS WELLINGTON’S TOP TWO WEAKNESSES?

SERVICE LIMITATIONS: •no public transport •lack of restaurant diversity •no affordable housing for seniors specifically •very large services needed in North which are very different from those in the South •lack of broadband •limited number of media outlets •no training institutions or college in North Wellington to take over burden from Guelph and provide better quality of living in NWC •lack of lunch places for industrial parks •employability of local residents/lack of skilled workforce GOVERNMENT RELATED CONCERNS: •minimal communication with County •local council shows little interest in business •country roads beat and unpaved‐in poor condition •poor condition of bridges •high cost of doing business (taxes) •traffic in Morriston (Hamilton traffic)‐nothing done to improve congestion on roadway •County is not well advertised/not branded •lack of signage •windmills •lack of ethnic diversity (need diversity for business) •no help from municipality to drive business to downtown •long commutes/people spending their money where they work outside of County •no jobs for young people •not as business friendly as would be liked‐relationships with municipalities are not as positive as desired •loss of farming land/small farms disappearing to cash cropping •lack of development (commercial and residential) •lack of County brand (where does County start/stop?) •building expansion difficult in Wellington North and Mapleton •Canadian cost of doing business •municipality needs to provide more support to small local businesses •no help from municipalities to drive business into downtowns •Wellington North Township‐ cost of water and attitude toward business •taxed on a lot of things people and business see no benefit in •rivalry between townships‐County doesn't bring them together •dead towns with only residential‐need better coordination •townships don't work together •Overregulation with County Planning

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Industry Survey 2011 – Themes: *Cost‐effective utilities *Access to skilled local workers *Communication of public costs and benefits

“After 32 years of doing business in Wellington, paying taxes, hiring the local workforce and contributing to the local economy, it is wonderful to finally have someone from our government recognize our contribution and show interest in our operation.”

INDUSTRY SURVEY 2011 ‐ CONCLUSION

The Industry Survey was a positive experience for both employers and the County of Wellington, as it facilitates an opportunity for contextual information collection from the private sector in the region. 94% said they were willing to share further information, should such information be able to assist with aiding the business environment within Wellington. Employers see Wellington as a strategic place to locate given its proximity to main transport routes, suppliers and urban centers. Many employers feel optimistic about 2011 and plan on hiring, generating new clients and increasing revenues. In general, businesspersons were satisfied with County services but felt that communication could be improved with the business community and government. Dominating most company’s concerns are utility costs and the lack of cost effective choices available. In order to grow their revenues and expand, employers cited the difficulty in finding locally qualified people with suitable skills. Though many interviewees are satisfied with the local labour force, many others express concern for matching skill sets with a changing economy. These results are not particular to Wellington, as the recent Canadian Federation of Independent Business survey of 967 employers also had ‘lack of skilled labour’ as one of the largest constraints to growth.24 This theme necessitates actions to enable the County and its partners to move forward in comprehensive labour force planning. Should the County receive funding to undertake the Economic Development Strategic Plan this year, the plan could provide a proper understanding of the issues and challenges facing the County’s top industries and how better the County and its partners can support them.

A sincere thank you is expressed to those employers who gave their time and shared their thoughts for the survey.

24 Canadian Federation of Independent Business, SME Business Outlook Survey, February 2011

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COUNTY OF WELLINGTON – ECONOMIC DEVELOPMENT REVIEW 2010‐2011

The population of the County of Wellington is expanding at a steady rate with four municipalities surpassing provincial rates of population growth. Household incomes have increased more than the rest of Ontario in the majority of municipalities and schools in Wellington are also exceeding provincial standards. Trades, apprenticeships and diploma graduates are higher than the rest of the province, which is relevant to a region where a large portion of the private sector demands such skills. Housing prices and residential development are higher than in neighbouring regions as people continue to make Wellington their living preference where major urban centers are only 30 minutes away. Industrial, commercial and institutional development activity is back to pre‐recession levels and significant investments in new facilities and upgraded infrastructure makes Wellington an attractive place to establish. New sectors of interest include the information and cultural industry, which will continue to grow with the County broadband internet availability complete by September 2011. Dominant and well established sectors including manufacturing and agriculture continue to thrive as they accommodate to national and international industry changes. New health clinics and an aging province have contributed to the considerable increase in the number of health care workers in Wellington. As Wellington continues to grow, the Wellington County Municipal Economic Development Group will become a proactive resource for its communities and be able to empower its smaller regions with greater leverage opportunities. The County has for the first time submitted an application for an Economic Development Strategic Plan which will assist in aligning many initiatives from labour force strategies to land planning. Tourism in Wellington will be augmented by its recent incorporation into the Regional Tourism Organization for Region 4 and by its new Rural Development Officer conducting research for tourism development in Wellington. All of these opportunities are efforts to continue to make Wellington a wonderful place to both work and live.

SYNOPSIS AND THEMES •Population ↑8% ‘06‐‘09 (Minto) •Labour force ↑12% (ON=9%) •Labour force participation rate ↑0.9% (ON= 0.3%) Labour Force: absolute growth ‘06‐‘09 ‐Manufacturing: 1,318 ‐Health Care and social assistance: 642 ‐Agriculture: 634

Labour Force: % Growth ‘06‐‘09 ‐Real Estate, rental and leasing: 23% ‐Information and cultural industries: 21% ‐Agriculture AND Mining AND Health Care: 16% each sector

•Household income ↑ by minimum 7% ‘06‐‘08 (Minto & Puslinch) •Fraser Institute results show Upper Grand & Wellington Catholic schools meet/exceed provincial standards •Wellington County Municipal Economic Development Group forms & submits application for Wellington Economic Development Strategic Plan •Traditional sectors weathered the storm and expect healthy prospects for 2011 •Tourism research and RTO opportunities, provincially funded partnership •Quality of life in Wellington second to none

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