sreda recap - winter 2016

1 SREDA 2015 ECONOMIC IMPACT$68.6 million // ROI $39:$1

2015 was an extremely successful year for SREDA in terms of attracting new businesses and investment to the Saskatoon region, supporting local entrepreneurs with their business operations and helping companies grow in the Saskatoon region. On November 25, 2015, SREDA presented its 2015 results to the Board of Directors. The results included a Economic Impact of $68.6 million and a return of investment of $39:$1. Both of these targets exceeded the goals set by SREDA.

“2015 was a milestone year for SREDA. We are proud to announce for the fi rst-time ever, SREDA is able to report an economic impact of our services and return on investment to our investors,” said Alex Fallon, President & CEO of SREDA.

For more information on SREDA membership benefi ts, visit: SREDA.com/about-sreda

3 2016 KEY PERFORMANCE INDICATORS ANNOUNCEDEconomic impact target: $52 million

SREDA’s role is to help grow the local economy. This is done by providing programs and services focused around six pillars: Business Investment & Attraction, Business Retention & Expansion, Entrepreneurship, Economic Forecasting & Analysis, Marketing the Region and Regional Planning.

The 2016 Key Performance Indicators align directly with SREDA’s six pillars. The key goals include: $52 million economic impact from SREDA programs and services, $13M of business and investment attraction, 2 businesses using the Business Development Incentives Policy, market the Saskatoon region to support population growth, coordinate regional economic development planning, and support 3,500 entrepreneurs to establish or grow a business.

2 SREDA’S SQUARE ONE PROGRAM 2015 RESULTS6,000 inquiries // 120 exploratory visits

SREDA’s Square One program started in April 2014. Since the fi rst day, entrepreneurs and business owners have been accessing the valuable information and resources to assist with their decision making process in starting or expanding their businesses.

In 2015, Square One dealt with nearly 6,000 inquiries from over 100 diff erent municipalities across Saskatchewan. Professional services, retail and personal services were the top three sectors assisted, with basic start-up questions, market research

and business registration assistance being the main focus of the inquiries.

The Saskatoon offi ce provided 120 exploratory visits to potential immigrant entrepreneurs and provided another 100 people with landed meetings and investment consulting upon their arrival to Saskatchewan. Those 100 individuals represented a total investment of over $25M into the Saskatoon economy.With small business accounting for over a third of Saskatchewan’s GDP and employing 31% of Saskatchewan workers, SREDA values the importance of having a program like

Square One in our region.

Saskatoon and Regina were recently reported by the Canadian Federation of Independent Business (CFIB) to be in the top 10 entrepreneurial major cities in Canada. From the inquiries Square One receives from all over the province, we know that entrepreneurship is alive and well in Saskatchewan.

For more information on our Square One program, visit: squareonesask.ca.

5 REPORT CONFIRMS, AND QUANTIFIES, THE ECONOMIC

DIVERSITY OF THE SASKATOON REGION ECONOMY

On February 10, 2016, SREDA released an Economic Diversity Report for the Saskatoon region.

Although the term, ‘diversifi ed economy’ is commonly used when referring to the Saskatoon region, rarely is it clearly defi ned or measured. SREDA has taken an in-depth look at what it means to be a diversifi ed economy and

has measured this diversifi cation through the use of regional economic indicators including employment and GDP. As a second step in this analysis, SREDA has used the results of these calculations and compared them to other Canadian cities.

“This is the fi rst-time SREDA has analyzed the economic diversity of the Saskatoon region,” said Alex

Fallon, President and CEO of SREDA. “The fi ndings indicate that the Saskatoon region economy is indeed highly diversifi ed. This diversifi cation should help provide stability for the local economy in times of economic transition, such as the one currently impacting the prairie provinces.” (continued on page 4)

4 Q4 ECONOMIC

UPDATE RELEASEDB- rating maintained

Q4 2015SASKATOON REGION ECONOMIC DASHBOARD

GROSS DOMESTIC PRODUCT

EMPLOYMENT

0.6% Change from Q3 2015

Alex Fallon, President & CEO, SREDA

Q4 2015 confirmed that the Saskatoon Region has entered a

new era of more moderate and steady growth, especially

when compared to the recent years of extraordinary growth

(2010-2014). Looking forward to 2016, there are plenty of

reasons for cautious optimism for the region’s economy as

we continue along this path of sustainable growth of around

2% by 2016 year end.”

$17.7 BGROSS DOMESTIC PRODUCT

310,000CMA POPULATION


6.2%UNEMPLOYMENT RATE

183,667LABOUR FORCE


“SREDA is forecasting GDP growth of approximately 2% in 2016, with the majority of the growth happening in the second half of the year.” - Alex Fallon, President & CEO, SREDA


254,333WORKING AGE POPULATION


72.2%PARTICIPATION RATE


2.0%EMPLOYMENT GROWTH

-1.6% Change from Q4 2014

“The growth drivers for the Saskatoon economy are changing quickly as sources of growth are in a race to supplant areas of our economy being hit by dropping commodity prices. 2015 Employment growth was positive, albeit at a much slower pace than the previous 5 years. We expect a similar slow growth result for 2016 as businesses selling into the U.S. regain their footing after a number of years of slow growth in the states. This investment and employment growth base will continue to push our population numbers higher, which will in turn help stabilize the elements of our economy that have scaled down their business to the slower activity level..” - Kent Smith-Windsor, Executive Director

HOUSING


2,293HOUSING STARTS (YTD)

324.9MBUILDING PERMITS (Q4)


$355,631AVERAGE HOME PRICE

-.2% Change from Q4 2014

1,059EXISTING HOME SALES (YTD)


“At year-end, overall inventory was down 22% from its June peak of 2,081 units. Although the 2015 sales activity was down 13% from

2014, it was comparable to the five year average. Saskatoon’s diverse economy has been essential in weathering recent economic

challenges and cushioning the impact on the real estate market. ” - Jason Yochim, Chief Executive Officer

“B-FOR THE SASKATOON REGION

“SREDA’S ECONOMIC RATING

10.1% Year-Over-Year

$23.4BWHOLESALE TRADE

$1.88BNEW CAR SALES

-4.7% Year-Over-Year

OTHER INDICATORS


279BUSINESS LICENSES (Q4)

1.443MYXE PASSENGERS (YTD)


Saskatoon Saskatchewan (October YTD)

-3.4% Year-Over-Year

$15.5BRETAIL SALES

“Room supply jumped 13.3 % in 2015, with two new properties opening in the fall. This, coupled with decreased business travel,

resulted in important declines in occupancies and room revenues in Q4. Overall tourism volumes and expenditures are still

growing, a trend that we expect to continue through 2016.” - Todd Brandt, President and CEO

On January 29, 2016, SREDA released its Q4 Economic Update. The report and dashboard summarizes key economic indicators, along with sector analysis and input from local business groups and industry experts.

The report maintains a B– rating for the region’s economy, although this is down from a B+ in Q2 2015.

Commenting on the report, Alex Fallon, President and CEO of SREDA affi rmed: “The fourth quarter of 2015 confi rmed that the Saskatoon region has entered a new era of more moderate and steady growth, especially when compared to the recent years of extraordinary growth. This is in large part due to the challenges in the energy sector, reduced commodity prices and a slowdown in the construction industry.”

SREDA forecasts minimal growth in early 2016 (0.2% – 0.6%), but a pick up in the second half of the year as GDP moves into the 2% range. In addition, we forecast an increase in population and employment and expect the unemployment rate to remain in the 5% to 6% range.

Fallon said: “Looking forward, Saskatoon’s diverse economy, continued demand for our natural resources, ongoing and new infrastructure projects combined with increased entrepreneurialism gives us optimism, albeit somewhat cautious optimism, for steady growth in the Saskatoon region economy in 2016-2017.”

To view the full Q4 Economic Update, visit: SREDA.com/Q4Update.

6MINING TECHNOLOGY EXPLORE PROGRAM LAUNCHConnecting international technology solutions to the Saskatchewan mining industry

On January 14, 2016, SREDA launched its Mining Technology EXPLORE Program. Through this program SREDA provides fi nancial support to international companies with technologies that are applicable to the mining industry.

This program supports selected companies in their travel and attendance to the 2016 Saskatchewan Mining Supply Chain Forum held April 12-13, 2016 in Saskatoon, Saskatchewan, Canada.

Other program benefi ts include: an

opportunity to showcase technology to the Saskatchewan mining industry, network with industry leaders and explore business opportunities in Saskatchewan and attend the Saskatchewan Mining Supply Chain Forum. Travel expenses will be reimbursed up to $2,500 for up to three nights of stay.

SREDA is proud to have the following individuals and organizations involved in the EXPLORE Selection Committee: Xiankun Ke and Monique Lischynski (Saskatchewan Ministry of the Economy), Shafi q Alam (University of Saskatchewan), Al Shpyth

(International Minerals Innovation Institute - IMII), Andy Melnyk (Innovation Saskatchewan), Joni Brisbin (Saskatchewan Polytech) and Myron Johnson (Westcap Mgt. Ltd.).

Since the program launch in mid-January, EXPLORE has received several applications including companies from the United Kingdom, Chile, Germany and other Canadian Provinces.

For more information on the Mining Technology EXPLORE Program, visit SREDA.com/MTEP.

(Report Confi rms, and Quantifi es, the Economic Diversity of the Saskatoon Region Economy continued)

Fallon added; “a highly diversifi ed economy is not the ultimate silver bullet to defl ect slowdowns in economic growth, but less diversifi ed economies are more prone to signifi cant downward adjustments in challenging economic times.”

The report outlines three measurements for diversifi cation: sectorial GDP contribution, sectorial employment distribution and the Herfi ndahl Index. The analysis results indicate a highly diversifi ed economy, with the diversity index based on sectorial GDP contribution at 87%, sectorial employment distribution as strong, and Saskatoon’s economic diversity Herfi ndahl Index at 0.095. The Herfi ndahl Index is widely used in measuring market concentration in industrial organizations as well as economic diversity. The index indicates the extent to which a local economy is dominated by a few fi rms

or sectors. When compared to other regions of similar size, the Saskatoon region was found to be more diversifi ed than most.

“The Chamber has always been involved with the diff erent sectors in Saskatoon. SREDA’s Economic Diversity Report fi ndings highlight

the diversity of Saskatoon, which contributes to our strong business community,” said Kent Smith-Windsor, Executive Director of The Greater Saskatoon Chamber of Commerce.

As a follow up to this analysis, SREDA will continue to monitor changes in the diversity results to ensure the Saskatoon region continues to demonstrate this strong showing in the future.

“SREDA is currently working on a number of initiatives to support economic diversifi cation for years to come. These initiatives include attracting new businesses to the region, helping local companies grow, supporting new entrepreneurs and supporting economic

development projects in multiple sectors,” said Fallon.

To view the full Economic Diversity Report, visit: SREDA.com/EconDiversityReport.

7 SASKATOON NORTH PARTNERSHIP FOR GROWTH (P4G)

DRAFT REGIONAL LAND USE MAP RELEASED

On February 9, 2016 the Saskatoon North P4G held on Open House for residents living in Warman, Martensville, Osler, Saskatoon and the RM of Corman Park to present the Draft Regional Land Use Map.

The open house provided an informal setting for residents to learn about the Regional Plan’s intent, view and provide feedback on the Draft Regional Land Use Map and proposed land uses, and engage members of the project team. Consultant, O2 Planning + Design, representatives from the partner municipalities and SREDA were in attendance.

Alex Fallon, President and CEO of SREDA is the Independent Chair of the P4G Regional Oversight Committee,

“We want to make sure each of the fi ve partnering municipalities can benefi t from growth opportunities, increase effi ciencies, and reduce costs by working together,” said Fallon. “The Regional Plan will

consist of plans for land use, transportation and servicing, outline the strategies needed for implementation, and propose new governance and administrative structures for the region.”

If you were unable to attend the open house, please visit partnershipforgrowth.ca until February 29, 2016 to review the open house materials and provide your comments.

For more information on the P4G, visit: partnershipforgrowth.ca.

8 LOCAL BUSINESSES EXPAND THROUGH BUSINESS

DEVELOPMENT INCENTIVES POLICY

SREDA manages the City of Saskatoon Business Development Incentives Policy and actively seeks out businesses that can benefi t from the incentives under this policy.

This policy helps generate long-term job creation within Saskatoon by supporting business retention and expansion.

Through this policy, qualifying

companies looking to establish or grow a business in Saskatoon can make use of various incentives to help maximize their expansion impact, including: exemptions or reductions of any city tax or fee, waiving of utility deposits and down payments on land and exemptions or reductions of prepaid servicing levies.

“The Business Development Incentives Policy is one example of how SREDA supports business growth in the

Saskatoon region,” said Alex Fallon, President and CEO of SREDA. “Helping local businesses expand and create new jobs is important due to the positive impact on the Saskatoon region economy.”

In 2015, three local businesses expanding their Saskatoon operations were approved to receive(continued on page 6)

9 MANUFACTURING 2025SREDA partners with Canadian Manufactures & Exporters (CME) on report

In the Fall of 2015, CME and the Saskatchewan Manufacturing Council proudly launched the Manufacturing 2025 initiative - the largest manufacturing consultation in our province’s history.

The goal was simple: to develop the policy framework and roadmap necessary to grow Saskatchewan manufacturing sales to $25 billion by the year 2025.

“In 2014 alone, Saskatchewan manufacturers generated more than $16.4 billion in sales and an estimated $57.5 billion in total economic activity - the third consecutive record year for output in the province,” said Gavin Semple, Chair of the Saskatchewan Manufacturing Council.

As the province’s two largest cities, Regina and Saskatoon are at the heart of this industrial evolution. And by no coincidence, manufacturing is at the very heart of the two communities.

From agricultural implements and food processing to mining equipment and electronics, manufacturers comprise one of the

most important segments of the respective economies, driving GDP growth and creating strong, reliable and high-paying jobs.

After an extensive, industry-wide survey, 12 executive roundtables, 300 hours of dialogue, and input from more than 150 companies, CME released the Manufacturing 2025 Action Plan - a comprehensive strategy that sets out the roadmap and policy framework necessary to grow manufacturing sales in the province to $25 billion by 2025. The report charts the fi ndings of the consultation process and outlines 25 priority recommendations to government.

The Manufacturing 2025 Action Plan paints a vivid picture on the state of manufacturing in the province, and what must be done to solidify Saskatchewan’s position as the preferred destination to locate, export from, invest, employ and expand.

Partners on this project included: SREDA, Economic Development Regina, ISM Canada, Saskatchewan Polytechnic, Saskatchewan Apprenticeship and Trade Certifi cation Commission, and the Saskatchewan Ministry of the Economy.

To view the full Manufacturing 2025 Report, visit cme-mec.ca.

(Local Businesses Expand Through Business Development Incentives Policy continued)

support under this policy: Gemini Freight Systems Inc., Howatt Enterprises Ltd. (Continental Mine & Industry Supply Ltd. and Howatt Consulting Ltd.) and the Saskatchewan Food Industry Development Centre Inc. As a result of utilizing the incentives policy, these businesses collectively intend to expand their operating facilities by 49,000 square feet, create 23 full-

time equivalent jobs and invest $26.25 million in land and new building construction.“With the help of the Business Development Incentives Policy, we were able to invest in expanding our operations in Saskatoon on a site that will allow for additional growth in future years,” said Dan Prefontaine, President of the Saskatchewan Food Industry Development Centre Inc.

Fallon added that over the past 12 years the Business Development

Incentives Policy has helped support 1,835 local jobs. An estimated $229.3 million has been invested and 82.6 percent of the companies were already located in Saskatoon prior to investing in expansion.

For more information about the Business Development Incentives Policy and other available incentives, visit: SREDA.com/sreda-services/business/incentives.

10 SASKATOON ABORIGINAL EMPLOYMENT PARTNERSHIP

(SAEP) STRATEGIC PLANNING SESSION OUTCOME

SAEP is a program aimed at increasing aboriginal employment and inclusion is the Saskatoon region economy. The partnership is comprised of numerous stakeholders including the City of Saskatoon, the Saskatoon Regional Intersectoral Committee, education institutes and industry.

SREDA is the host organization of SAEP and oversees delivery of the program.

On November 4, 2015, the Saskatoon Aboriginal Employment Partnership (SAEP) invited its members to participate in a strategic planning session that would chart its direction for the next fi ve years. Almost 30 people attended the focused planning event to advise on several key objectives.

The strategic goals for SAEP in the next fi ve years and key performance indicators to measure success are related to the following areas:

1. Improve existing employee education and skills 2. Maintain collaborative planning 3. Improve employer readiness 4. Improve awareness and engagement

For more information about SAEP, contact Shaun Soonias at [email protected].

IMPORTANT DATESEXPLORE Program Application Deadline

Start at Square One Seminar *

Doing Business with the Government of Canada *


The Prosperity Through Partnership Conference - Conference Three: Urban Reserve Creation, Opportunities and Partnerships *

Bruce Richet Award Nominations Deadline


Saskatchewan Mining Supply Chain Forum *

Top Gear: Urban Centres as Engines of Growth Conference *


SREDA Annual General Meeting

2016 Saskatoon Region Economic Outlook Forum

March 1, 2016

March 3, 2016Square One



March 16-17, 2016Travelodge Hotel

March 31, 2016

April 7, 2016Square One

April 12-13, 2016Prairieland Park

April 20, 2016

April 20, 2016Square One

April 21, 2016

April 26, 2015 TCU Place

Coming Soon!

* SREDA partnership event.

The Saskatoon Regional Economic Development Authority (SREDA) helps grow the local economy by providing programs and services in the areas of business attraction, retention and expansion; entrepreneurship support; regional planning; and marketing the Saskatoon region.

For more information, visit SREDA.com or call (306) 664-0720.

sreda recap - winter 2016

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