Waterloo Region Economic Development Study: Assessment of Economic Development Services and the Provision of Employment Lands

WATERLOO REGION ECONOMIC
DEVELOPMENT STUDY:

ASSESSMENT OF ECONOMIC
DEVELOPMENT SERVICES AND
THE PROVISION OF
EMPLOYMENT LANDS

Prepared by:

Prepared For:
Region of Waterloo

April 2013

Waterloo Region Economic Development
Study: Assessment of Economic
Development Services and the Provision of
Employment Lands

Prepared By:

Prepared For:

Malone Given Parsons Ltd.

The Region of Waterloo
150 Frederick St.
Kitchener, Ontario
P.O. Box 9051, Station C
N2G 4J3

140 Renfrew Drive
Suite 201
Markham, Ontario
L3R 6B3
www.mgp.ca
lparsons@mgp.ca
In Association With:
Perimeter Public Affairs
54 Bathgate Drive
Toronto, Ontario
M1C 1X6
www.perimeterpublicaffairs.com
Rob@perimeterpublicaffiars.com

Date: April 2013
12-2116

TABLE OF CONTENTS
EXECUTIVE SUMMARY ........................................... I
1.0

INTRODUCTION .................................................... 1
1.1
1.2

2.0

Introduction ................................................................................. 1
The Assignment ........................................................................... 2

ECONOMIC CONTEXT ......................................... 5
2.1
2.2

Waterloo Region’s Business Advantage ................................... 9

2.3

Policy Context ........................................................................... 14

2.4

3.0

Growth and Competitiveness .................................................... 7

Growth Pressure & Opportunities for Waterloo Region ......... 18

EXISTING ECONOMIC DEVELOPMENT
FRAMEWORK ...................................................... 21
3.1
3.2

Stakeholder Commentary ....................................................... 25

3.3

Gaps and Redundancies ......................................................... 35

3.4

4.0

Overview of Existing Framework & Responsibilities .............. 21

SWOT Analysis of Current Waterloo Region Economic
Development Framework ........................................................ 44

COMPARATIVE ANALYSIS: COMMUNITIES AND
BEST PRACTICES.................................................. 49
4.1
4.2

Regional Economic Development .......................................... 50

4.3

5.0

Context for Comparative Analysis .......................................... 49
Comparator Community Summary ........................................ 57

FRAMEWORK OPTIONS ...................................... 73
5.1

Economic Development Requirements ................................. 73

5.2

Organizational Options ............................................................ 76

5.3

Evaluation of Options; Risk and Opportunities ...................... 84

MALONE GIVEN PARSONS LTD.

TABLE OF CONTENTS

WATERLOO REGION ECONOMIC DEVELOPMENT STUDY
ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS

6.0

EMPLOYMENT LAND OPTIONS ........................... 89
6.1

Industrial and Business Park Lands .......................................... 89

6.2

Ensuring Land Supply ................................................................ 92
6.2.1
6.2.2

Estimates of Supply and Demand for Employment
Land................................................................................ 93

6.2.3

Role of the Private and Public Sectors ...................... 94

6.2.4

7.0

Need for a Risk Perspective ........................................ 92

Alternative Approaches to Providing Industrial &
Business Park Lands ...................................................... 95

CONCLUSIONS, RECOMMENDATIONS AND
IMPLEMENTATION ............................................ 103
7.1

Conclusions .............................................................................. 103

7.2

Recommendations .................................................................. 105

7.3

Implementation ....................................................................... 108

APPENDIX A STAKEHOLDER CONTACT LIST
APPENDIX B LEGAL EXTRACTS
APPENDIX C COMPARATIVE ANALYSIS
APPENDIX D EMPLOYMENT LAND USE MAPS
APPENDIX E WATERLOO REGION ECONOMIC DEVELOPMENT
EXPENDITURES
APPENDIX F BIBLIOGRAPHY
APPENDIX G EXISTING LOCAL ECONOMIC DEVELOPMENT
SERVICES

LIST OF FIGURES
Figure 2.1 Waterloo Region within the Western GGH Context ........................................ 6
Figure 2.2 Economic Activity Index....................................................................................... 9
Figure 2.3 Composite of Regional Official Plan Maps 2, 3a-e & 7 ................................ 16
Figure 5.1 Development Framework: Foundations, Strategies and Outcomes .........75
Figure 6.1 Regional Employment Lands .............................................................................90
Figure 6.2 Vacant Industrial Land Prices and Development Charges (per acre) .....91


LIST OF TABLES
Table 2.1 Population Forecast ............................................................................................... 7
Table 2.2 Employment Forecast ........................................................................................... 8
Table 2.3 Population and Employment Forecast (as per Waterloo New Official Plan,
2011) ........................................................................................................................................ 17
Table 3.1 Shared Responsibilities......................................................................................... 22
Table 3.2 Responsibilities Not Shared ................................................................................. 22
Table 3.3 Gaps and Redundancies ................................................................................... 43
Table 3.4 SWOT Analysis ....................................................................................................... 46
Table 4.1 Economic Development Then and Now ......................................................... 51
Table 4.2 Selected Southern Ontario Economic Development Delivery Model Types
.................................................................................................................................................. 53
Table 4.3 Communities with Region, Multi-Tiered Economic Development Structures
.................................................................................................................................................. 58
Table 4.4 Communities with Multi-Tiered Structure – Ontario ........................................ 62
Table 4.5 Selected Municipal External Economic Development/Real Estate
Development Corporation .................................................................................................. 66
Table 4.6 Summary Best Practices ...................................................................................... 69
Table 5.1 Proposed Economic Development Framework Options .............................. 82
Table 5.2 Evaluation of Options; Risk and Opportunities ................................................ 85
Table 6.1 Region of Waterloo Industrial and Business Park Vacant Land Inventory –
2009 .......................................................................................................................................... 89
Table 6.2 Employment Land Development Options ....................................................... 98
Table 6.3 Evaluation of Employment Land Options; Risk & Opportunities ................ 100
Table 7.1 Proposed High Level Implementation Plan ................................................... 108


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EXECUTIVE SUMMARY
INTRODUCTION
Waterloo Region has enjoyed several decades of sustained economic growth.
Over the past few years, there has been a growing debate as to the best approach
to ensuring continued economic growth within the Waterloo Region. This debate
has focused on three main questions:


Is the current framework for the governance and delivery of economic
development meeting the needs of the regional economy?



What other options should be considered?



In particular, how can the constituent Municipalities ensure that there is a
continual renewal of the available supply of employment lands?

This study addresses these three questions and provides options on both a
framework for economic development, and approaches to employment land
development and sale.

ECONOMIC CONTEXT
The study addresses the current economic and policy context facing Waterloo
Region, and provides an overview of the regional growth expectations; its
competitiveness relative to other Ontario regions; the planning policies that will
influence goals and delivery of economic development; and the supply and
provision of employment lands.
Waterloo Region is part of the Greater Golden Horseshoe (GGH) urban complex
with a combined current population of 9 million people. Yet Waterloo Region
remains separate and distinct economically, historically, and culturally from the
main urban mass of the Greater Toronto Area (GTA). The region’s economy is
growing and performing well relative to its Ontario competitors. Typically
associated with high tech companies, Waterloo Region has several other business
clusters that have demonstrated exceptional success including; advanced
manufacturing, financial services, food processing and life sciences. Waterloo
Region’s three post-secondary institutions; the University of Waterloo, Wilfrid
Laurier University, and Conestoga College, collectively are recognized
internationally for their research, innovation and talent creation capabilities.


i

EXECUTIVE SUMMARY


The current planning and economic development policy framework for Waterloo
Region is supported by the Province of Ontario’s Places to Grow Act, the
associated Greater Golden Horseshoe Plan, and the Region of Waterloo’s Official
Plan and 2011-2014 Strategic Plan. The Growth Plan identified three areas in
Waterloo Region as significant urban growth areas; Downtown Kitchener,
Uptown Waterloo and Downtown Cambridge.
The Growth Plan also recognizes the importance of protecting employment,
promoting economic development and maintaining economic competitiveness.
Waterloo Region’s Official Plan does not address economic development beyond
“fostering and facilitating growth”, and makes no reference to a need for an
economic development strategy, which the region does not yet have.
The 2011-2014 Region of Waterloo Strategic Plan identified the immediate need
for action on three economic development initiatives:
1- Make the East Side Employment Lands development ready;
2- Continue to identify partnership opportunities that foster innovation
and economic development; and
3- Strengthen the coordination and implementation of economic
development activities across the region through clarification of
municipal and stakeholder roles and responsibilities.
The Greater Golden Horseshoe Plan projects significant growth in the western
GTA and Hamilton, and significant growth is also expected for the outer ring
portion of the GGH which includes Waterloo Region. The latest projections for
Waterloo Region have the population rising from 526,000 to 729,000 and
employment rising from 282,000 to 366,000 by 2031. While much of the GGH
employment growth is destined for the 905 area (Halton, Peel, York and Durham
Regions), large 905 land banks are approaching build out and new strategic land
locations are not being protected for future employment use. Waterloo Region, as
the largest outer ring municipality should see considerable interest in its
employment lands for office, industry and business services.

EXISTING ECONOMIC DEVELOPMENT FRAMEWORK
Despite Waterloo Region’s many strengths and assets, there are a number of
structural weaknesses in the current economic development framework. The
current economic development framework does not fully meet the needs of the
regional business clusters, other economic development stakeholders, and the
public at large.
ii


EXECUTIVE SUMMARY


Examples of this underachievement include: gaps in, and absence of, useful
regional economic data; dated and often confusing marketing and promotion
initiatives; lack of resources to deliver basic economic development service across
Waterloo Region; poor stakeholder comprehension of their contribution to
economic development; lack of trust vertically and horizontally across the region;
and the absence of a coherent multi-level regional economic development
strategy.
Despite this fragmented and poorly coordinated economic development network,
there is consensus among stakeholders on the need for a regional approach to
economic development, on their willingness to participate in regional economic
development, and that the Region of Waterloo should provide leadership in
delivering this approach.

COMPARATIVE ANALYSIS: COMMUNITIES AND BEST
PRACTICES
Three sets of comparator communities with relevance to the Waterloo Region
situation were evaluated: multi-tiered regional economic development
organizations; existing multi-tiered municipalities in southern Ontario; and singletiered municipalities with economic development and/or real estate development
subsidiaries. Results of this analysis indicate that:
1. Business success is more commonly associated with a regional cluster
approach;
2. Regional business clusters require engagement at a wider regional level;
3. Single-tier municipalities favour external economic development
organizations; and
4. Two-tier regional/local municipalities favour a combination of internal
and external economic development organizations.

REGIONAL ECONOMIC DEVELOPMENT STRATEGY
The first requirement for a new approach to economic development is the creation
of a Regional Economic Development Strategy that takes advantage of the
inherent strengths of the region and which effectively deploys resources to ensure
a sustainable and growing regional economy.


iii


EXECUTIVE SUMMARY

Waterloo’s eight municipal governments, in concert with the major economic
stakeholders, should embark immediately to establish a clear and effective
strategy that will create a new economic vision for Waterloo Region, and which
will provide a renewed consensus on the means of achieving the vision.

FRAMEWORK OPTIONS
A number of viable framework options for the delivery of economic development
services within Waterloo Region were identified.
All are potentially implementable within the existing governance structure in
Waterloo Region. Criteria for developing the options were drawn from the current
local and regional context, current economic development issues, and from the
experiences of other jurisdictions with similar issues and best practices.
Five options for delivering economic development services were defined along a
continuum of increasing change and intervention. These are:
1- The status quo;
2- Enhanced regional alignment and coordination;
3- Regional Economic Development Corporation (jointly owned by all eight
Municipalities), with shared responsibility for implementing an economic
development strategy with local Municipalities;
4- Regional Economic Development Corporation (jointly owned by all eight
Municipalities), with sole responsibility for implementing all aspects of
an economic development strategy; and
5- Consolidation of all economic development functions and services within
a department of economic development within the Regional Municipality
of Waterloo.
Our preferred approach is Option 3, a single non-profit agency that is separate
from, but controlled by, the eight Municipalities and is responsible for
implementing regional economic strategy, marketing and promotion, coordination
of corporate relationships, and advocacy with other levels of government. It
would not be directly involved in the development and/or sale of the land. This
Option would see the local Municipalities retain “non-regional” economic
development functions.

iv



EXECUTIVE SUMMARY

EMPLOYMENT LAND OPTIONS
The current model for the provision of employment land is a mix of municipally
and privately owned land that has been successful in meeting most but not all
local employment land demand. With its educational, entrepreneurial, cultural,
and transit assets and lower costs, Waterloo Region will become an increasingly
attractive location for new or expanding business relative to the western GTA
Municipalities. The current employment land supply in Peel and Halton will be
depleted within 10 years, resulting in rising prices in these areas relative to
Waterloo Region.
It is an essential requirement of successful and transformational economic
development that there be a sufficient supply of available employment land at all
times. Our preferred approach is to create and utilize a Special Purpose
Development Corporation to develop strategic employment lands on the east side,
including those adjacent to the airport and other strategic employment lands as
determined. Existing municipal roles in employment land development would
remain intact. Over the longer term, the strategy should be to ensure that the
major role of developing and selling employment lands transitions to the private
sector.


v

EXECUTIVE SUMMARY



vi


1.0

INTRODUCTION
Waterloo Region has a strong economy that has been performing
well. However, there are challenges and opportunities that lie ahead.
This report identifies alternative approaches for the governance and
economic development services. In particular, the study evaluates
alternative approaches for ensuring an appropriate supply of
available employment land.

1.1 Introduction
Waterloo Region has benefited from its many strengths and from its strong brand
as a place of profitable enterprise, creative and industrious people, an intellectual
nexus of thought leadership, a diverse high quality lifestyle, and effective
community leadership. It benefits from a global perspective that is reflected in the
destination of its university graduates and the market reach of many of its local
companies. It also benefits from a local focus that has led to continual
improvements to urban infrastructure and civic amenities.
Over the past few years, there has been a growing debate as to the best approach
to ensuring continued economic growth within the Waterloo Region. This debate
has focused on three main questions:


Is the current framework for the governance and delivery of economic
development meeting the needs of the regional economy?



What other options should be considered?



In particular, how can the constituent Municipalities ensure that there is a
continual renewal of the available supply of employment lands?

Implicit in these questions is: how can the Waterloo Region stay aggressively
ahead of the curve and stake out its position as a location of choice for the best
companies in the nation, the continent, and the world?


1

1.0 INTRODUCTION


In the course of completing this review of the structure and function of economic
development services in Waterloo Region, Malone Given Parsons Ltd. (MGP)
met with representatives from over 40 organizations involved in, or with,
economic development across Waterloo Region. As expected, a wide range of
opinion was offered on the local state of economic development, including: the
decline in traditional manufacturing; the emergence of education, research and
innovation as drivers of economic development; other emerging business clusters;
and the role of all three orders of government, federal, provincial and municipal in
economic development.
Two clear themes emerged from this input. The first theme is that the region has a
strong economy that has been performing well. The region has exhibited dynamic
growth over the past several decades, rising standards of living and incomes,
healthy local business communities, diverse and engaged sectors, place-based
advocacy groups, world class local post secondary institutions, and a rare
resiliency in the regional economy, given difficult international circumstances.
The second theme sees a region that is not fully capitalizing on its strengths and
consequently is at risk of being less dynamic, competitive and successful. There is
a lack of coherent strategy and lack of effective coordination amongst the many
organizations involved in economic development. This has resulted in missed
opportunities, loss of at least one major company, declining national significance
of remaining head offices, fragmentation of local service delivery, and internal
competition rather than cooperation and collaboration.

1.2

The Assignment

MGP, in association with Perimeter Public Affairs, have been retained by the
Region of Waterloo together with the 7 local Municipalities to evaluate and
present options on how economic development is delivered regionally through a
network of approximately 34 agencies, providing a range of services at the
community, local, regional and international levels.
The terms of reference for the study, the MGP proposal, and subsequent
discussion achieved consensus on the following project priorities.
Questions that need to be answered included:

1.


Who is doing what, and is there overlap?


2

Economic Development

Where are the gaps, and what improvements can be made?


What’s working, and what needs improvement?



What is the experience of comparator communities, and what is considered
to be best practice?



What unique approach can Waterloo Region take?



Consider the practical options for organizing the creation and implementation
of an economic development strategy.

2.

Employment Land



How should municipalities be approaching the
development issues?



What is the role of greenfield employment versus infill & intensification of
existing sites?



How can an appropriate supply of available vacant employment land be
ensured?

employment

1.0 INTRODUCTION



land

The study approach involved the following tasks:



Review of the organizational framework for economic development;



Interviews with key stakeholders;



An assessment of existing performance gaps, overlaps & resources of the
existing economic development framework;



Review and analysis of the economic development approaches taken by
selected comparator communities;



Identification of the requirements for economic development; and,



Identification and evaluation of the governance and organization options for
delivery of economic development and for ensuring land supply.

Organization of the Report

This report is organized in the following format:


Section 2: Context on regional economic position; planning policies; and,
issues surrounding the provision of employment land;



Section 3: Overview of the existing economic development framework
including regional and municipal responsibilities and mandates;



Section 4: Comparator communities and best practices and lessons;



Section 5: Overview and detailed description of proposed framework options
including an evaluation of each option considering both the risks and
opportunities;



Section 6: Overview and detailed description of proposed land development
options including an evaluation of options; and,

3


1.0 INTRODUCTION



Section 7: Conclusions and recommended approaches, including a high level
implementation sequence.

Definitions

The geographic region encompasses 7 local municipal jurisdictions: the City of
Waterloo; the City of Kitchener; the City of Cambridge; the Township of Wilmot;
the Township of Wellesley; the Township of Woolwich and the Township of
North Dumfries. In addition the Regional Municipality of Waterloo provides
services and infrastructure to all local municipalities.
Herein, “Waterloo Region” or the “region” refers to the geography encompassed
by the 7 municipalities. The “Region of Waterloo”, “ROW” or the “Regional
Government” refers to the Regional Municipality of Waterloo.

4


2.0

ECONOMIC CONTEXT


Waterloo Region’s economy is growing and performing well in
terms of its Ontario competitors;



While Waterloo Region is recognised as a significant urban
growth centre for the Province, it does not have a regional
economic development strategy; and,



In the medium and long term, the rapid growth of the western
GTA municipalities presents a significant strategic opportunity
for Waterloo Region.

Waterloo Region, located in the economic heart land of Canada, has a unique
geographic position. While it is situated within the Greater Golden Horseshoe,
which encompasses a population of 9 million people, and has very close linkages
to the larger economy, Waterloo Region remains separate and distinct from the
main urban mass of the Greater Toronto Area. It has unique history and cultural
attributes that enable it to benefit from its proximity to the Toronto economy
without being overwhelmed by its urban neighbours to the east. Its proximity to
Toronto provides important economic and transportation linkages and an easy
locational legibility to potential markets beyond Canada. At the same time, its
separateness provides a high quality of life, distinct character, competitively
priced economic inputs, and a world recognized quality of technical talent being
produced by three post-secondary institutions.
Before focusing on economic development in Waterloo Region, it is helpful to
review the Region’s economic importance and the policies that relate to economic
development.
The following section provides:


An overview of the region’s growth expectations;



It’s competitiveness with other Ontario regions;



A review of planning policies that are most salient to the goals and delivery
of economic development within Waterloo Region; and,


5

2.0 ECONOMIC CONTEXT




An overview of the issues surrounding the provision of employment land
throughout the region.

Figure 2.1 below maps Waterloo Region in the context of its surrounding
economic competitors: Guelph; Brantford; Hamilton; and the western GTA
municipalities.
Figure 2.1 Waterloo Region within the Western GGH Context

6




2.1 Growth and Competitiveness
The series of tables that follows show the expected growth in population and
employment within the Waterloo Region and its surrounding competitor
municipalities. From this, the following salient observations can be made:


Waterloo Region is generally similar, or greater, in population to the nearby
cities that are competitors including the urban areas that compose Halton
Region.



Waterloo Region has greater expected growth in both population and
employment than nearby cities and regions, although Halton Region will
grow somewhat faster.



The western GTA regions of Halton and Peel can be considered as
competitors for business investment, but also as sources of business
establishments that could migrate west to Waterloo Region. Costs of labour
and land are generally lower in Waterloo Region than in the western GTA
and Waterloo Region has other attractions; universities, high quality city,
small town and rural environments.
Table 2.1 Population Forecast
2011-2031
% Increase

2011
Waterloo Region
London
Hamilton
Halton Region
Peel Region
Brantford
Guelph

2021

2031

526,000

623,000

729,000

366,140

404,600

443,500

540,000

590,000

660,000

520,000

650,000

780,000

33%

1,320,000

1,490,000

1,640,000

20%

97,925

107,258

n/a

125,000

148,000

175,000

28%
17%
18%

n/a
29%

Source: Waterloo Region, Hamilton, Peel Region and Halton Region Population
Forecasts based on Places to Grow. Brantford Official Plan 2011; Guelph Official Plan
Sept, 2012 & Employment Lands Strategy Phase 1, by Watson & Associate, 2008; and,
City of London Employment, Population, Housing and Non-Residential Construction
Projections 2011 Update (Draft 2012) by Altus.


7



Table 2.2 Employment Forecast
2011-2031
% Increase

2011
Waterloo Region
London
Hamilton
Halton Region
Peel Region
Brantford
Guelph

2021

2031

282,000

324,000

366,000

23%

189,674

211,630

229,337

17%

230,000

270,000

300,000

23%

280,000

340,000

390,000

28%

730,000

820,000

870,000

16%

47,685

54,910

n/a

74,680

88,790

100,390

n/a
26%

Source: Waterloo Region, Hamilton, Peel Region and Halton Region Population
Forecasts based on Places to Grow. Brantford Official Plan 2011; Guelph Official Plan
Sept, 2012 & Employment Lands Strategy Phase 1, by Watson & Associate, 2008; and,
City of London Employment, Population, Housing and Non-Residential Construction
Projections 2011 Update (Draft 2012) by Altus.

The Conference Board of Canada “Metropolitan Outlook 2: Economic Insights
into 15 Canadian Metropolitan Economies: Summer 2012” indicates that:


Waterloo Region will achieve the highest economic growth in Canada among
medium-sized cities in 2012.



The region’s manufacturing output is expected to increase 4.5 percent in
2012.



Gross Domestic Product will grow in Waterloo Region by 3.3 percent in
2012, down from 3.9 percent in 2011.



Unemployment in Kitchener, Waterloo and Cambridge is projected to fall
from 6.8 percent in 2011 to 6.2 percent by the end of 2013.

The CIBC World Markets' Metropolitan Economic Activity Index, 2012 places
Waterloo Region as the third strongest economy among Canada’s largest 25 cities
for the third quarter of 2011. This Index was based on nine key macroeconomic
variables and drivers of economic growth; population growth, employment
growth, unemployment rate, full-time share in total employment, personal
bankruptcy rate, business bankruptcy rate, housing starts, MLS housing resales,
and non-residential building permits. The Index is designed to capture the rate of
change in the level of economic activity among Canada's largest 25 cities.

8




Figure 2.2 ranks Canada’s 25 largest cities in terms of their economic activity for
the third quarter of 2011. Waterloo Region has been represented as Kitchener
CMA and has been ranked third behind Toronto and Edmonton. In comparison,
Hamilton is ranked 13th and London 22nd.
CIBC World Markets Inc. attributed the region’s success to a combination of:


Relatively strong employment momentum;



Strong housing and real estate markets;



High quality jobs, important for income growth; and,



Low rate of business bankruptcies.

Figure 2.2 Economic Activity Index

Source: CIBC (Canadian Cities: An Economic Snapshot Toronto Continues To Lead the Pack,
January, 2012)

2.2 Waterloo Region’s Business Advantage
Many factors have given Waterloo Region a competitive edge, leading to the
successes it continues to experience:


Its strategic position west of Toronto;



A labour force and consumer market of 2.7 million people within a 45
minute drive;



Ready access to major transportation corridors, and three Canada-US border
crossings;

9


Access to national railroads;



Access by regional transit (GO Transit) to the City of Toronto downtown;



Access to the Region of Waterloo International Airport and close proximity
to Toronto’s Pearson International Airport;



A low corporate tax rate and low energy prices; and,






World class education/research institutes and a multicultural workforce with
advanced skills.

The region has received some high accolades for excelling in a range of sectors:


The City of Waterloo was named Top Intelligent Community 2007 by the
Intelligent Community Forum;



City of Cambridge named IBM’s first Smarter City in Canada (2010);



The Tannery District in Kitchener awarded best overall project in Canada by
the Canadian Urban Institute (2011);



Waterloo was ranked top 10 by FDI Magazine’s American Micro Cities of
the Future in 6 of 8 categories (2011/2012);



Canada’s Technology Triangle was named one of Canada’s Top Metro Areas
by Site Selection magazine; and,



The Real Estate Investment Network named Canada’s Technology Triangle
as the Top Ontario Investment Town 2009-2014;

While being predominantly associated with the high tech industry, Waterloo
Region boasts exceptional success and expertise in a variety of industries. We
have captured some of the prominent strengths of these industries, along with
listing some of the key industry players.
High Tech Industry

With regard to the tech sector in Waterloo Region, Communitech has highlighted
some noteworthy statistics;


The tech sector generates $25 billion revenue/yr;



There are approximately 1000 tech firms located in the Region;



There are in excess of 400 burgeoning start-ups (significant given a
population of approximately 500,000);



There are 30,000 employed at tech firms;



There are 1,600 open tech jobs;



123% growth rate in software careers;


10

Over $0.5 billion in acquisitions in 2010;





Waterloo Region is home to;
o

Canada’s largest tech company – BlackBerry;

o

Canada’s largest software company – Open Text;

o

World’s leading projection technology company – Christie Digital;

o

Canada’s largest satellite company – Com Dev;



A new startup company is established every day at the Communitech hub;
and,



More than $84 million raised by companies in 2011 at the Communitech hub
alone.

Educational Institutions and Talent

Waterloo Region boasts exceptional access to three highly acclaimed postsecondary education institutions; Wilfrid Laurier University, the University of
Waterloo and Conestoga College, and their 74,000 post-secondary students. Some
highlights include:


The University of Waterloo has the largest cooperative education program in
the world;



The University of Waterloo is repeatedly recognized as Canada’s most
innovative university and topping the categories for Best Overall and most
likely to produce leaders of tomorrow;



More than 22 percent of all spin-off Canadian IT companies have originated
in University of Waterloo incubator programs;



The University of Waterloo is home to the Waterloo Centre for Automotive
Research (WatCAR), supporting major breakthroughs and innovations in the
automotive sector;



The David Johnston Research & Technology Park is one of the newest
research parks in Canada and is uniquely located on the University of
Waterloo’s North Campus. Designed to accommodate 1.2 million square feet
of office space on 120-acres (49 hectares), the Research Park will house
thousands of researchers, create new technology jobs, and generate billions
of dollars in economic impact;



“In the last four years,” the University of Waterloo has “developed 184
projects, they’ve set up 20 companies, they’ve hired 200 people and they’ve
brought in venture capital of $30 million”, Geoff McBoyle, associate vicepresident of academic and strategic initiatives at the University of Waterloo;



Wilfrid Laurier is one of Canada’s fastest growing universities and is
consistently ranked among Canada’s top schools in its category;



The School of Business & Economics (SBE) at Wilfrid Laurier University is
one of the largest and most innovative business schools in Canada; and,

11





Conestoga College ITAL offers over 60 career-related programs, and the
University’s graduates contribute more than $1 billion to the local economy
each year.

Advanced Manufacturing

Output and productivity in the advanced manufacturing industry continues to rise
due to investment in technology advancements in the sector. The strength of
Waterloo Region’s manufacturing industry has been its diversity and ability to
adjust to new and emerging market demands, contributing to the sustainable
growth of the industry.
A Statistics Canada labour force survey, produced in 2010, ranks Waterloo
Region first in Canada in terms of the proportion of its labour force employed in
the manufacturing industry (20% of total employment). The region also ranks
first in Canada in terms of the proportion of businesses in manufacturing.
Financial Services

The number of businesses and financial institutions in the Kitchener-CambridgeWaterloo CMA in 2011 rose to 608, employing 21,000 people.
Canada’s
Technology Triangle (CTT) have noted that the total employment in the sector
has risen from 6.4% to 8.5% in the past 12 years, with the region scoring second
highest among Canadian CMAs.
Life Sciences

Life science has become an emerging cluster in Waterloo Region, with significant
recent investments in biotechnology, medical and environmental sciences and in
new research facilities such as the new University of Waterloo School of
Pharmacy. The presence of leading-edge research facilities, an educated local
workforce, and generous R&D tax credits contribute to the appeal of the region.
Food Processing

The Waterloo-Guelph-Toronto corridor is the largest food manufacturing region
in Canada and the third largest in North America. With a comparatively lower
overall cost of doing business than in the United States, access to more than 450
million North American consumers, access to ingredients and a stable market
place, Waterloo Region is an extremely attractive location for food business.
Planned or Recent Investment/Future Growth Generators

The following recent or planned investments are expected to play a significant
role in the future prosperity of the region:
12



The planned $66 million expansion of Kitchener Public Library;



The construction of a global innovation exchange building at Wilfred Laurier
University, for students in business, mathematics, and economics;



Expansion of Eclipse Automation in Cambridge;



A $100 million investment by Toyota to expand its facility in Cambridge,
creating 400 new jobs, in addition to investments in its Woodstock plant;



The Government of Canada's investment of up to $4.4 million, provided
through FedDev Ontario's Investing in Business Innovation initiative, to
support the expansion of a number of companies in the region. The
investment is expected to support the creation of 210 jobs;



$818-million LRT project due to begin in 2014, and following developments
along the major transit nodes;



44-bed extension to Cambridge Memorial Hospital, 2013;



Conestoga College; expansion of its Doon campus; and,



The opening of the $160-million, 25,650-sq.m. Mike & Ophelia Lazaridis
Quantum-Nano Centre at the University of Waterloo in September 2012.




International Competitiveness
“When it comes to global trade, Canada is leading the way” according to David
Abney, COO of UPS which has recently invested $300 million in its Canadian
operations. Attributing Canada’s six new free trade agreements along with the
FTAs it is continuing to negotiate with emerging markets as clear indicators that
Canada is getting it right at reaching out to the world’s new consumers.
The Global Competitiveness Index 2012 – 2013 released by the World Economic
Forum in early September 2012, ranks Canada at 14th place. According to The
Conference Board of Canada, despite Canada’s respectable ranking, more needs
to be done to improve Canada’s competitiveness: “all levels of government, all
sizes of business, and all types of educational institutions have an important role
to play.”
The report highlights that Canada continues to benefit from a number of factors
including:


Its efficient markets;



Strong financial institutions;



Well-functioning government institutions; and,



Good infrastructure.


13



The Conference Board of Canada is addressing a number of the challenges
identified in the Global Competitiveness Report 2012-13 through its Centre for
Business Innovation; a five year initiative that will help bring about major
improvements in firm-level business innovation in Canada.
Canada recently was cited as having the best job creation record in the G7; with
the addition of 52,100 new jobs being added to the Canadian economy during
September 2012.
The Canadian Institute of Chartered Accountants’ third-quarter survey also notes
that 46 percent of senior executives expect the number of employees at their
companies to increase in the next year, up from 41 percent in the second-quarter
survey.
The implication for Waterloo Region is that although Canada is a competitive
country internationally, it could be taking greater advantage of that fact. Given
Waterloo Region’s strong economic attributes for technology and manufacturing,
it can be expected to benefit disproportionately from international recognition of
Canada’s advantages as a location for creative and expanding enterprise.

2.3 Policy Context
A number of legislative documents guide and promote economic development
within the Region of Waterloo:


The Places to Grow Act and subsequent Growth Plan;



Regional and Municipal Official Plans; and,



Region of Waterloo Strategic Plan.

The Growth Plan
The Growth Plan, which guides population and economic growth in the Greater
Golden Horseshoe, places particular emphasis on Urban Growth Centres and
identifies three Urban Growth Centres within the Waterloo Region: Downtown
Kitchener, Uptown Waterloo and Downtown Cambridge. Although these Growth
Centres focus on the central areas, the fact that there are three located within
Waterloo Region clearly reflects the region’s existing and future economic
importance.

14




The Growth Plan protects employment areas and legislates for an adequate supply
of land for employment areas and employment uses. The Growth Plan recognizes
employment lands as an important tool for promoting economic development and
ensuring overall competitiveness.
The focus of the Growth Plan is to achieve a long term distribution of growth
amongst the affected jurisdictions. It provides a normative objective for the long
term distribution, but is not focused on detailed land use requirements and needs
over a short term horizon, essential for the management of the economic growth
process.
From a perspective of attracting and accommodating employment, the focus must
also be on the continual immediate requirements for land and infrastructure. This
is reflected within the Growth Plan in the recognition of the need for ready and
accessible infrastructure as a key driver for attracting investment and maintaining
economic competitiveness.
Region of Waterloo Official Plan
The Region of Waterloo Official Plan (currently under appeal at the Ontario
Municipal Board) sets out the planned urban growth for Waterloo Region. Most
growth is expected to occur in the existing Built-Up Areas through reurbanization.
In addition to the three Urban Growth Centres, which are expected to
accommodate a significant share of the region’s future population and
employment growth, the Region anticipates new growth and development to
occur in Urban Designated Greenfield Areas and the Township Urban Areas
designation.


15



Figure 2.3, produced from a composite of maps from the Region of Waterloo
Official Plan, illustrates the planned urban growth for Waterloo Region.
Figure 2.3 Composite of Regional Official Plan Maps 2,3a-e, & 7

16




Table 2.3 sets out the population and employment forecasts for Waterloo Region
to 2029 as per the Regional Official Plan.1
Table 2.3 Population and Employment Forecast (as per Waterloo New Regional
Official Plan)
Population
2006
City of
Waterloo
City of
Kitchener
City of
Cambridge
Township
of
Woolwich
Township
of Wilmot
Township
of
Wellesley
Township
of North
Dumfries
Total
Waterloo
Region

2029

101,700

137,000

214,500

%
Population
increase
2006 -2029

Employment

%
Employment
increase
2006 -2029

2006

2029

35%

64,070

88,000

37%

313,000

46%

99,380

130,000

31%

123,900

173,000

40%

75,220

100,000

33%

20,100

32,500

62%

13,540

18,800

39%

17,700

28,500

61%

6,730

9,700

44%

10,100

12,000

19%

3,290

4,100

25%

9,200

16,000

74%

6,080

8,400

38%

497,200

712,000

43%

268,310

359,000

34%

Source: The Region of Waterloo Official Plan
Note: The Waterloo Regional Official Plan is currently under appeal at the OMB. numbers and
planning horizon are subject to change

The Regional Official Plan identifies its goal, objectives and corresponding
policies which will guide economic development in the Region over the next 20
years. “The overall goal indentified is as follows: Collaborate with Area
Municipalities, Canada’s Technology Triangle Inc. and other stakeholders to
foster a diverse, innovative and globally competitive regional economy”.
There are two important features of the Region of Waterloo Official Plan that are
salient to economic development. The first is that the Official Plan does not stake
out a clear and explicit economic development role for the Region of Waterloo
beyond “fostering” and “facilitating”. The second is that there is no statement
that refers to the need for an economic development strategy for the Region.
The Region of Waterloo Strategic Plan, 2011-2014 identifies five focus areas as
Council priorities:


Environmental sustainability;

1

Note The Region of Waterloo has been requested by the MMAH to revise forecast
horizon to 2031, therefore the forecasted horizon is subject to change.

17


Growth management and prosperity;



Sustainable transportation;



Healthy and inclusive communities; and,






Service excellence.

With respect to priority 2 above, Growth Management and Prosperity, the Region
has identified the following priority actions:






Continue to manage and shape growth.
Ensure infrastructure meets the demands of a growing community.
Enhance our arts, culture and heritage.
Strengthen partnerships with all orders of government and our
community partners to plan and manage growth.
Support a diverse, innovative and globally competitive economy.

2.4 Growth Pressure & Opportunities for Waterloo
Region
The rapid employment and population growth in the western GTA municipalities
presents an opportunity for Waterloo Region. As Peel and especially Halton
Region continue to grow and consume employment land, Waterloo Region is
expected to experience increasing market pressure for its employment land
portfolio. The success of the Peel and Halton Regions ultimately means higher
land prices in those regions which will create more interest in Waterloo Region
which has lower land values, within a very attractive urban context. This will be
amplified by traffic congestion, particularly at peak hours, along the 401 in Halton
and Peel.
This future pressure on Waterloo Region is evident in the most recent economic
forecasts released by the Province. While the GTAH will continue to lead growth,
the Outer Ring portion of the GGH will also see strong growth throughout this
planning period. More dramatic is the planned growth of the western portion of
the GGH that includes communities in the inner GTAH portion of the GGH,
including the City of Hamilton, and the western part of the Outer Ring of the
GGH including the Region of Waterloo, and the Cities of Guelph and Brantford.
This area was first identified by The Center for Spatial Economics in a 2008
report for Canada`s Technology Triangle (CTT). In this report they note that the
population of this sub-region is almost 1,500,000, employment of 766,000, $49
billion in income and $36 billion in household expenditures.
18




These figures are very similar to the figures for the City of Calgary which had $51
billion in income, and household spending of $36 billion at the time the report
was prepared.
What do these trends mean for Waterloo Region?


The continuing shift of employment from manufacturing to service based,
results in corresponding shift towards office space, rather that manufacturing
space. Waterloo Region, with the only significant office space market in the
Outer Ring area of the GGH, and its urban/educational amenities, should be
well positioned to benefit from this trend.



Immigration will continue to drive population growth, with 94% of the
immigration residing in the GTAH and the remaining 6% in the Outer Ring
of the GGH. Waterloo Region is the overwhelming choice for immigrants
destined for the Outer Ring. Of the 6%, 4.5% or 75% of immigration growth
in the Outer Ring is into Waterloo Region.



Waterloo Region is currently the only part of Outer Region with positive
inflow for workers, a trend which is expected to continue.



Ontario manufacturing output has grown faster than rate of employment due
to efficiency and productivity improvements. This is good news for Waterloo
Region, with a mixed economy, and a strong manufacturing base that is now
more competitive, both in the domestic and international market places.



In a 2011 presentation on growth management in the GGH, MGP noted that:
o

Approximately 75% of GGH employment growth is destined for the 905
area of the GGH;

o

However, large 905 land banks are approaching build out; and

o

The remaining strategic employment land locations are not now being
protected for future employment use.

This convergence of supply and demand for new employment land in the western
part of the GGH should result in a strategic shift towards private sector
involvement in employment lands acquisition and development in the Outer Ring.
Waterloo, as the largest municipality in the Outer Ring, its close proximity to both
the GTA and the Canada US border, should see considerable interest in its
employment lands for both office and industrial purposes.


19




20


3.0

EXISTING ECONOMIC
DEVELOPMENT
FRAMEWORK

Despite many strengths, there are a number of weaknesses in the
current economic development framework indicating that the
current system is not fully meeting the needs of the regional
economy:
 Absence of a regional approach to economic development;
 A gap in available data;
 Inconsistent marketing approach;
 A lack of resources, particularly in the rural municipalities;
 Trust issues; and,

An unclear understanding of stakeholder involvement in
economic development.

3.1 Overview of Existing Framework & Responsibilities
Waterloo Region operates under a two tier municipal structure, with the upper tier
municipality, the Region of Waterloo, delivering services on a regional scale, in
addition to the services provided by the 7 lower tier municipalities, including;
Planning, Housing and Community Services, Social Services, Transportation and
Environmental Services and Public Health. Tables 3.1 and 3.2 summarise the
difference between Regional and Municipal functions, including shared and non
shared responsibilities.


21


3.0 EXISTING FRAMEWORK

Table 3.1 Shared Responsibilities
Region of Waterloo

Local Area Municipalities

Water Supply (for all municipalities)
Wastewater Treatment (for all municipalities)
Water Distribution for Wellesley and North Dumfries
Wastewater Collection for Wellesley and North
Dumfries
Regional Roads (Main Arterial) and Traffic Signals
Regional Official Plan and Policies
Rural Library System
Emergency Response (Ambulance)
Debentures (for all municipalities)
Regional Licensing and By-Law Enforcement (e.g.
taxis, lawn watering, tree cutting etc)

Water Distribution
Wastewater Collection and Billing
Local Streets (Residential and Collector)
Zoning By-laws and Neighbourhood Plans
City Library System
Emergency Response (Fire Protection)
Tax Collection (for area and region)
Local Licensing and By-law Enforcement (e.g.
parking, noise, property standards etc)

Table 3.2 Responsibilities Not Shared
Region of Waterloo

Local Area Municipalities

Public Health (Child and Family Health, Healthy Living,
Sexual health, Infectious Diseases Programs, Dental
Health Programs, Population Health Assessment,
Emergency Medical Services, and Health Protection.)
Social Services (Employment and Income Support Ontario Works, Children’s Services, Senior’s Services,
Social Planning)
Waste Management (Landfill, Recycling, Collection)
Public Transit (Conventional and Specialized)
Region of Waterloo International Airport
Cultural Services (Waterloo Region Museum,
Schneider Haus and McDougall Cottage)
Emergency Planning
Community Housing
Provincial Offences Court Administration

Building Inspections and Permits

Cemetery Management

Vital Statistics (Births, Deaths, Marriage)
Land Severances
Local Economic Development
Parks and Recreational Programs

34 Organisations Delivering Economic Development
At present, there are 34 organizations within the region that have an economic
development function that is part of their mandate and program activities. At the
municipal level, this includes the three Cities, the four Townships, and the Region
of Waterloo. The many agencies also include the universities, college,
development corporations, chambers of commerce, employment organizations
and other cross jurisdictional organizations. Below is a summary of the primary
focus or functions of some of the key organisations or groupings of organisations.

22




Region-Wide Functions
The Region of Waterloo currently does not have a proactive role in coordinating
economic strategies, or delivery of economic development. It does however have
an enabling or coordinating role in labour market development, employment land,
infrastructure, data collection, research, policy development and review, quality of
life initiatives, regional economic development and integration with provincial
and federal bodies.
A number of functions are delivered on a region-wide scale, primarily from the
three not-for-profit organizations; Canada’s Technology Triangle (CTT), Creative
Enterprise Initiative, and Waterloo Regional Tourism Marketing Corporation. The
key functions delivered by these three organizations are foreign direct investment,
capacity building in the creative sector, and tourism respectively.
The Cities of Waterloo, Kitchener & Cambridge
The three Cities are involved in business attraction, business expansion and
retention, employment land and community development. Their role also extends
to marketing, infrastructure, data collection, research, policy development review
and accessing funding. By history and geography, the three cities have
complimentary but somewhat different roles.
The City of Waterloo, the region’s namesake, is focused primarily, but not
exclusively, on the tech sector. As the home of the University of Waterloo, and
the David Johnston Research and Technology Park, it is more closely associated
with technology; it is active in promoting foreign direct investment and the
retention of businesses.
The City of Kitchener has an active economic development focus on higher order
service sectors, administration, culture and tourism. It is engaged in economic
development, business retention, marketing, and culture and tourism. The City
does not have significant greenfield employment land and focuses more on the
office orientated service sectors that typically locate in the downtown core as well
as brownfield redevelopment.
The City of Cambridge has the largest industrial employment base and has been
focusing on developing and marketing greenfield sites. Cambridge has also made
significant achievements in creating a high quality urban character in the core
area. It too has active programs in foreign direct investment, marketing and
business retention.


23



The Townships of North Dumfries, Wellesley, Wilmot &Woolwich
The Township of North Dumfries does not have significant involvement in
economic development activities, nor does the Township have the available
resources to engage in economic development. Interest in greenfield employment
land in the past has not resulted in a sale agreement.
The Township of Wellesley’s main economic development focus is retention and
expansion of its existing employers. The Township is limited by water restrictions
and therefore dry industries occupy designated employment lands. Without
economic development staff, the Township does not have significant engagement
in economic development.
The Township of Wilmot has a planner/economic development officer who is
engaged in facilitating employment land development and retention primarily.
Most queries relating to employment land development received are for serviced
lands, in which the area is deficient.
The Township of Woolwich has an active economic development department and
has prepared an Economic Development Strategic Plan. Their focus is primarily
on business retention, expansion & tourism. They are involved in a range of
initiatives to support and promote local businesses, including a business visitation
program. Agriculture, food and tourism are key sectors for the Township. The
private sector has been instrumental in developing employment lands within the
Township.
Business Associations/Chambers of Commerce
Business associations, grouped to include the Chambers of Commerce, the
Prosperity Council of Waterloo Region, the Manufacturing Innovation Network,
and the Business Improvement Areas, focus primarily on business expansion and
attraction, retention and marketing and to a lesser extent on research, policy
development and review and community development. Some business
associations are focused on specific geographies and/or specific industries. These
organizations play a key role within the region as one of the important contact
points between the public and private sectors.

24




Communitech
Is a not for profit organization dedicated to supporting technology companies in
Waterloo Region and beyond. Communitech removes barriers within the industry
and provides a common place for companies, academics, enterprise and service
organizations to come together on innovating collaborations that promote the
region’s technology cluster. Founded in 1997, Communitech now supports a
network of more than 800 companies that generate more than $25 Billion in
revenue.

Post Secondary Institutions
Post secondary institutions; the University of Waterloo, Wilfrid Laurier
University and Conestoga College, play a key role in labour market development,
as well as research, data collection, policy development and review as well as
improving the quality of life in the region. The institutions assist many of the
other organizations in achieving their economic development mandate.

3.2 Stakeholder Commentary
Over the course of this study, we interviewed individuals from the 34 stakeholder
organizations, including the 8 Waterloo Region municipalities, business
associations, post secondary institutions, labour force development groups,
nongovernmental organizations and provincial organizations. We also met with a
number of mayors from Waterloo Region (see Appendix A for a complete list).
The objective of the consultation process was to understand how different
organizations are involved in economic development, how they interact, how each
organization fits into the current economic development framework, and their
views on issues, concerns, opportunities and gaps.
Broadly, our confidential discussions revealed that there is a commitment by all to
working towards ensuring that Waterloo Region is as successful and vibrant as it
can possibly be. At the same time, there are concerns surrounding the
effectiveness and focus of the existing economic development framework. There
is a general willingness to embrace change and to coordinate efforts if in doing so
it will make the current system more efficient and beneficial to the region as a
whole.


25



Section 3.2 summarizes some of the feedback we received, our observations, and
highlights some of the key findings from the consultation phase of the project. We
have categorised the findings under common discussion themes that emerged
from the consultation process. We noted conflicting views relating to many topics
and have not attempted to correct misunderstandings; rather the section should be
read as an overview of the perceptions that exist within the region in relation to
what is happening in terms of economic development.
Organization/Governance
Governance of economic development was the most common theme discussed
throughout the interview process. There was consensus that changes are needed
but different views on the best solution. Below is a sample of the comments
received;


“Economic development (within Waterloo Region) is …. splintered and there
is a lot of wheel spinning”.



“The region has been successful despite its framework and lack of cohesive
strategy”.



The region currently operates under a “dysfunctional framework”.



The current approach to economic development is “confused and informal”.

Collaboration/Interrelationships
In terms of collaboration and how different economic development stakeholders
interact, there were mixed responses:




“There is too much focus on the high tech sector at the cost of other
important sectors”.



There is poor region-wide general business intelligence and regional approach
to business attraction and retention.



Among the identified stakeholder organizations there is a lack of appreciation
for the significance, and importance of their programs to economic
development. “We don’t do economic development”.



There is no defined regional economic development governance structure.



Relationships between the different organizations appear to be generally very
positive and collaborative.



26

With its plethora of organizations and overlapping boards, the region is “very
collaborative” and perhaps “overly collaborative” in terms of economic
development. “There are too many organizations”.

Issues of trust have emerged resulting from a lack of information and
intelligence sharing from the top down, leading to a lack of confidence in the
abilities of others working within the industry.


Personality conflicts exist, affecting the smooth running of the system.



Inefficiencies have been created by an absence of cooperation, leading to
overlaps.




Key Framework Responses Required:


To consolidate and refocus the delivery of economic development functions
throughout the region, to make better efficiencies.



To improve collaboration, relationships and build trust between organizations.



To adopt an effective and comprehensive regional approach to economic
development.



To promote coordinated economic activity among development among
stakeholder groups and across the region.

Townships
We asked the staff at the Townships what resources or changes would support
them to conduct their roles more efficiently. A summary of the main points
include:


More local economic development staff would be very beneficial.



A regional point person to help navigate the system, dealing with planning
policy issues and servicing related queries.



“A regional overarching agency would lead to huge efficiencies”.



There is a need to revisit the regional brand.



The greatest obstacle prohibiting the development of one of the communities
is not having broadband.



There is a need and desire to develop an economic development strategy with
a regional focus. There is also a desire for increased cooperation between the
economic development partners.



A central source for information relevant to economic development including
details of vacant employment lands would be useful. They would like to see
better region-wide sharing of information between the stakeholders.



An overarching economic development agency with a regional focus is
needed.



Access to more shovel ready land is required.



The Townships should retain a local role in economic development.



There is a need to address the lack, or complete absence, of economic
development resources at the rural townships. Access to up to date regional
wide economic development related information and data would be extremely
beneficial in improving service delivery at the rural level.


27


Some Townships feel more aligned to each other than to the wider regional
economic development network. There is a need to improve interrelationships
and the economic development support network throughout the region.






A regional approach to economic development would benefit the Townships.

Regional Involvement
We asked all interviewed stakeholders how they would view a refocused
framework which involved more direct involvement by the Region of Waterloo in
terms of economic development. The consultation process revealed:


There is a requirement for a regional approach to economic development and
that it would be positive for the Region of Waterloo to become more involved
in economic development.



The general opinion is that the role of the Region of Waterloo should not take
away from the role of the municipalities and townships in providing local
economic development services.



There is a view that increased involvement by the Region of Waterloo would
create efficiencies and speedup processes, particularly in terms of bringing
employment land to a shovel ready state.

A number of different suggested responsibilities emerged in terms of the Region
of Waterloo’s involvement in employment land development including:




“The Region should support communities to get land to a shovel ready state
and let the local municipalities and townships take care of the rest”.



Some suggested that there is a requirement for the Region to purchase and
manage strategically important employment lands, including lands located
close to and around the airport, to accommodate and safe guard the future
viability of the region.



Some questioned whether there should be a stronger role for the private
sector.



That a “champion” could be employed at the Region of Waterloo, who would
coordinate regional economic development activities and get employment
lands moving.



Preparation of a regional economic development strategy.



28

The Region of Waterloo should retain its current status of servicing
employment lands, but there is a need to speed up the process, ensure that
there is enough available employment land, and cut down on the bureaucracy.

Collator and coordinator of data and research.



There was support, by some, for the creation of an economic development
department at the Region of Waterloo with the Region of Waterloo providing
a full service economic development role. This idea has also been resisted by
some of the participants who feel that economic development should remain a
service that is provided at a local level.



There was general consensus that there needed to be more coordination of
economic development efforts across the region.



A regional point person could be identified at the Region of Waterloo to help
navigate the system, particularly in terms of employment land development
and in supporting the local municipalities.



There was also concern, by some, that if the role of the Region was expanded
into providing a full range of economic development services, this could
reduce the independence of the area municipalities and could be seen as a
move to defacto amalgamation.






To establish an appropriate economic development role for the Region of
Waterloo.



To review the roles of the other stakeholder organizations in light of increased
Region of Waterloo involvement in economic development.



To be mindful of the political complexities.

An Expanded Role for Canada’s Technology Triangle
The current and future role of Canada’s Technology Triangle (CTT) was a topic
of discussion in many of our meetings. There were contradictory observations in
terms of the current and envisaged future role of CTT:


“CTT should narrow their focus and stick specifically to FDI, fine tune its
strategy in terms of where their focus lies and continue to promote the region
abroad”.



“The role of CTT should be expanded to include other economic development
functions” including; conducting research and acting as a coordinator of data,
taking control of regional tourism with some proposing that CTT would be
the most suitable existing organization to rebrand and refocus to offer a full
service economic development service.



There is confusion surrounding the role and mandate of CTT. In many cases
there was an expectation that CTT should be providing additional services
outside of its current mandate.



Conflicting views surrounding its achievements to date.


29





There is a need for clarity surrounding the role and mandate of CTT.

New Overarching Regional Economic Development
Organization/Development Corporation
There was significant support for a new organization to guide regional economic
development in Waterloo Region.


Some felt that a new organization was required that would be independent of
the Region of Waterloo, the Municipalities or CTT.



Such an organization would have a multidisciplinary focus, and be
responsible for all or a select number of economic development functions
including; marketing, strategy development, data collection and research,
tourism and land development.

The opposing argument was that there are already too many organizations with an
economic development focus, and that adding an additional organization would
not be beneficial. It was suggested by some that the CTT itself could be expanded
to take on a broader role.


Consideration to be given to effective mechanisms to establish and coordinate
the implementation of a regional economic development strategy.



Consideration to be given to the formation of an independent organization to
lead economic development across the region.

Marketing/Branding
Issues surrounding marketing and branding were a significant part of the
discussions with all stakeholders. Our discussions revealed:
Branding



There is confusion surrounding the brand and there is little association with
the brand “Canada’s Technology Triangle”.



“There is a need for a refocus and rebranding”.



“The regional brand may not be as strong as perceived”.



“Education and talent could become more implicit in the branding”.

Marketing




30

There is a demand for a regional marketing and communications strategy.
There is a need to establish responsibility for finding, storing and coordinating
relevant data on a regional scale and for marketing the region.





Some areas in the region currently do not have broadband access.



There is a need to refresh and refocus the regional brand.



A comprehensive regional economic development strategy should include a
comprehensive marketing and communications strategy.



There is a need to establish responsibility for finding, storing and coordinating
relevant data on a regional scale and for marketing the region.



Marketing material is outdated; it should reflect a technologically advanced
community.

Data/Information Sharing
In many cases, a lack of accessible region-wide economic development and
marketing data was identified as a primary obstacle to effective delivery of
economic development services. Our key observations include:


Suspicions, knowledge gaps and inefficiencies have developed as a result of a
lack of openness with regard to information sharing and a lack of a common
information base.



There is no central generator, collator and repository for accessible relevant
regional data and economic research.



Organizations are producing useful information that is not readily available or
being dispersed throughout the economic development community.



A centrally managed regionally focused data source, freely accessible to all,
would be beneficial to all parties including staff, the public, existing and
potential businesses.

Strategy
Many stakeholders agreed that there is a need for a comprehensive regional
economic development strategy. In developing the strategy there has been an
appeal to:


Expand the regions focus beyond the technology sector and to consider other
significant industries.



Consider the development of sector specific strategies as part of the
overarching economic development strategy.



Celebrate the differences between the cities and townships, and to encourage
some degree of local competition.



Development of a comprehensive regional economic development strategy.

31





Development of a comprehensive regional economic development strategy.

Employment Land
For stakeholders who have involvement or who have an interest in employment
lands, there were some key messages:


The most widely identified obstacle to employment land development is a
lengthy planning approvals process; “It takes too long to get land to a shovel
ready state”.



The cost of servicing lands has been highlighted as a limiting factor.



The adopted employment land development strategy is short term. There is no
mechanism to accommodate for a rolling supply of readily available
employment lands.



There is confusion generally surrounding how much employment land is
actually useable, i.e. for sale or lease and are shovel ready as opposed to those
that are notionally available.



There is a lack of long term strategic thinking in terms of development of
regionally significant parcels of land, the lands surrounding the airport for
example.



It has been suggested that the private sector is intimidated by the power of the
public sector with regard to employment land development, which has kept
them largely out of the business. We spoke to a realtor who suggested that “if
the Region and municipalities concentrated on ensuring that employment
lands are serviced and shovel ready the rest would take care of itself”.



It was argued that the Countryside Line should be revised, that the current
restrictions are impractical and inhibits development.





There is a need to think strategically about land and what is best for the long
term viability and success of the region.



There is a need to find a balance between the needs of planning and the need
to ensure an adequate supply of land at all times.



There is an opportunity to review the method of measuring development
charges.



32

Need to establish and maintain a registry of employment lands for the entire
region which captures all relevant information pertaining to the lands; which
lands are serviced, vacant, shovel ready, for sale, size of parcels, zoning etc.

The line between public and private sector involvement in employment land
development must be clear.




Business Retention, Outreach & Development
In terms of business retention, outreach and development, feedback and our
general observations revealed:


Municipalities are rolling out a business visitation program but there appears
to be a lack of commitment by some to fulfill their responsibilities with regard
to the program.



In the rural Townships, a lack of resources makes it difficult for staff to
engage fully in retention activities.



There is an unstructured, unclear approach to retention in relation to
companies with a region-wide scope.



There is a lack of general business intelligence; there is no regular assessment
of needs and issues. The current process is reactionary rather that proactive.



In terms of recent investment losses throughout the region, it would appear
that there was a lack of coordination, that assumptions were made about what
businesses were planning to do rather than basing actions on fact, that
responses were slow and confused, and perhaps “unprofessional”.



There is a need for a more organized program of outreach, with specific
mandates, processes and outcomes.



A professional approach to corporate relationship management needs to be
instituted.



A differentiation is required between local retention activities and a
regionally orientated strategic corporate relationship program.



Better regional coordination.

Talent
Through the consultation process it emerged that:


Recognition exists throughout the region of the importance of implementing
initiatives to attract and retain talented professionals.



There is acknowledgement of the central role that the second level institutions
play in supporting existing and new businesses.



Improving the downtowns, transit and overall livability of the region is
considered essential for talent attraction and retention.



A talent attraction and retention strategy is currently being developed within
the region. This strategy should link to an overarching regional economic
development strategy.


33



Performance Measures
An absence of performance indicators across the stakeholder organizations has led
to:


Assumptions and a lack of appreciation for the value of work done by others,
resulting in trust and confidence issues.



Overlaps and gaps not being measured or addressed.




Lack of Key Performance Indicators (KPIs) for all stakeholders within the
region involved in economic development creates uncertainty about value for
money and is necessary for the management and implementation of a strategy.



Performance indicators should be relevant to the organization’s mandate and
should be measured in terms of outputs not inputs.



34

A periodic review and evaluation of all organizations would ensure optimal
value for money.

A common set of KPIs for all organizations (where practical) would
streamline the process and clearly and easily show where there are
inefficiencies.




3.3 Gaps & Redundancies
General Observations & Analysis
There is an evident difference in service delivery within the three Cities and an
even larger difference between the range of service delivery provided by the
Cities to that provided by the Townships, highlighting a lack of consistency across
the region, varying degrees of service delivery from one jurisdiction to the next,
and limited resources in some areas. The diverse nature of the various Cities and
Townships in terms of scale, attributes, and economic development focus means
that there is not a requirement for all services to be provided to the same degree
across the region, however a lack of consistency and clarity surrounding
functions, roles and responsibilities makes it more cumbersome for those
accessing services from a number of the Cities and or Townships.
There is no one organization delivering, enabling or contributing to all economic
development functions, either at the local or regional level. Our consultation
revealed that there is a need and support for a regionally focused organization to
provide a cross section of economic development functions.
We have identified 21 organizations that are providing one or more region-wide
economic development functions and that 12 of the 14 functions are being
delivered to a degree (the service may be narrow in focus) with a regional focus.
Employment land development and economic policy development are the
exceptions, with no organization tasked with primary regional responsibility for
either. There are overlaps in terms of the number of organizations providing an
element of the same function at a regional level; however that is not to say that the
exact service is being duplicated.
In terms of service delivery provided by the cities and townships, the most notable
gap is limited economic development resources at the Township of North
Dumfries and the Township of Wellesley, who have no specific economic
development budget or economic development staffing resources. The planner at
the Township of Wellesley currently accesses supports relating to economic
development from planning staff at the Region of Waterloo and engage in
economic development networking activities. The Township of North Dumfries
does not have the resources to engage in economic development activities. There
is a requirement to address this resourcing gap.


35



Business Attraction/Development, Expansion and Retention
Business attraction and retention is the function with the largest number of
stakeholder organizations involved across the 14 identified functions. Three
organizations have been identified as having a primary regional role in business
attraction and retention as part of their overall mandate within their defined
sectors. However there is no organization mandated to oversee business attraction
and retention across the region and across a broad range of sectors.
A more assertive and effective approach to corporate relationship management is
required. This will provide employers with designated “advocates” within the
economic development system. It will also help to ensure that business
intelligence on potential needs, expectations, services, and growth facilitation is
improved.
Labour Market Development
The labour market development function is delivered by a cross section of
organizations including; all of the identified labour force development
organizations, the post-secondary institutions, Communitech, and the
Manufacturing Innovation Network. Other organizations play an enabling role in
labour market development.
There does not appear to be any gaps in terms of the delivery of the labour market
development function. Waterloo Region adopts a proactive approach to labour
market development through its training, research, initiatives and supports. Talent
attraction and retention is a significant component in providing for a successful
and diverse economy. A talent and labour market development strategy should
therefore form part of a wider regional economic development strategy.
Foreign Direct Investment
Foreign direct investment is the primary responsibility of Canada’s Technology
Triangle (CTT). The Department of International Affairs and Foreign Trade who
have offices in Waterloo Region also play a significant role in foreign direct
investment and have close relations with CTT and their work.
In terms of gaps and foreign direct investment, branding of the region as Canada’s
Technology Triangle raises issues for a number of the stakeholder organizations.
There is a need to refocus the branding of the region to broaden the spectrum of
strengths and potential investment opportunities within the region. There is also a
need to ensure that a cross-section of industries is being promoted abroad as there
is a perception that the technology sector gets the majority of attention.
36




Sector/Cluster Development
Waterloo Region is synonymous with technology due to a significant effort by a
broad range of organizations to support and promote the industry. Cluster
development has proven to be hugely successful, particularly in terms of the
technology sector. The networks that are formed through clustering activities
ground the companies to the region and facilitate the growth of the industry. The
work of Communitech in supporting the technology sector has had hugely
significant implications for the region. CTT and the University of Waterloo along
with others have also contributed significantly to the growth of the industry.
The City of Kitchener has recognized the significance of development of new
economic clusters and focuses on the promotion of arts and culture, clean
technology, digital media, education and knowledge creation and life science
clusters.
OMAFRA support and promote the growth of the agriculture and food industries
across Southern Ontario. The Manufacturing Innovation Network supports the
manufacturing industry through an online networking service that is national in
scope.
Cluster development initiatives are an important new direction in economic policy
in supporting industries to grow in strength and size. Research indicates that
industries participating in a strong cluster register higher employment growth as
well as higher growth of wages, number of establishments, and patenting.
Industry and cluster level growth also increases with the strength of related
clusters in the region and with the strength of similar clusters in adjacent regions.
Findings also suggest that new industries emerge where there is a strong cluster
environment.
There is therefore merit in expanding the regional cluster development approach
and to incorporate the strategy into policy and an effective economic development
program.
Employment Land & Infrastructure
Employment land development is currently being facilitated in varying degrees by
the Municipalities. The Cities in particular are the primary suppliers of industrial
and business park lands. They have responsibility for the designation and zoning
of specific lands to accommodate forecasted employment growth and the
provision of local infrastructure (water, sewers, and local roads) directly required
to provide for the development of employment lands.


37



While the Townships assist in bringing employment lands on-stream, they rely
predominantly on the private sector to provide land for employment growth,
which has been a beneficial strategy, particularly in the case of the south Elmira
Industrial Area, where the private sector has over the past several years been very
successful in bringing employment land on to the market.
Under the current framework the Region of Waterloo does not have a mandate to
be directly involved in employment land development. The Region does however
play an enabling role through the provision of major infrastructure (water
capacity, treatment and mains, wastewater treatment capacity, and regional roads)
directly required to provide for the development of employment lands; by
designating employment lands in the Regional Official Plan; development
approvals; and lobbying of the Provincial and Federal governments to provide
funding for infrastructure.
In terms of gaps, there is no long term strategic regional focus on employment
land development that is consistent with a regional economic development
strategy. Without a region wide mandated organization, investors seeking to
locate within the region may need to research and negotiate with a number of the
municipalities/townships rather than dealing with one organization who can
advise on all prospective site locations. There is also inter-municipal competition
in terms of securing investors and employers to employment lands. While some
level of competition can be good, there needs to be a strong regional perspective
advanced for marketing and attracting potential employers.
Marketing
Under the current framework structure, marketing is being delivered at some level
by many of the organizations. However the scope of the marketing tends to be
locally orientated, specific to the organization, on a sectoral basis or limited in
nature. CTT markets the region under its foreign direct investment mandate;
however this focusses on a limited number of industries. Communitech plays an
important role in marketing the region as a technology cluster; and the
Universities and College play their part in marketing the region as an education
center. However in terms of economic development, there is no overarching
marketing strategy and no organization with a broad regional marketing approach.
Marketing of the region was one of the primary topics of discussion throughout
our consultation process and in particular the need for an up-to-date, region-wide,
accurate and modern approach to marketing the area. There is an evident need for
a strategic regional marketing strategy.

38




Tourism, Arts & Culture
The tourism, arts and culture sectors are well serviced throughout the region. The
sectors are tied in varying degrees to economic development in the various Cities
and Townships. On a regional scale, tourism is promoted by the Waterloo Region
Tourism Marketing Corporation who maintains the Explore Waterloo Region
website and is linked to the cities and township websites.
The City of Kitchener has a particular focus on linking tourism, arts and cultural
to economic development and has invested significantly in adding value to these
sectors. The City of Kitchener promote arts and culture as a competitive cluster
sector and strive to become the arts and culture hub of the region.
The Cambridge Chamber of Commerce in partnership with the City of Cambridge
operates Cambridge Tourism. It is the mission of the Chamber to develop tourism
initiatives and to build partnerships that pool ideas and resources to promote
Cambridge as a viable travel destination.
The Township of Woolwich are actively involved in tourism promotion and
operate a visitor information centre to compliment two other visitor information
centres operating within the Woolwich area.
The Creative Enterprise Initiative aim to provide an arts portal for up to date
information relating to; arts activities, events and initiatives throughout the region.
Data Collection & Research
While some of the local Municipalities collect economic development data at the
local level, there is a gap in available economic development relevant data at the
region wide scale. The Waterloo Region Collaborative Economic Research Group
(WRCERG) was formed in 2011 to address a gap in available economic research
and data. The group is working towards creating its own website and members
pay a fee to purchase data. While this is a positive step towards addressing a gap,
the data is not freely accessible by all. The group will become increasingly
involved in producing reports based on the data, which will be freely available.
This still leaves a gap in freely accessible regional economic development data.
In terms of information relating to availability of employment lands, some
Municipalities keep a register, however the information is not maintained on an
on-going basis. Therefore there is no available up-to-date data on regional
employment land availability. A lack of available up-to-date relevant economic
development data for the region was highlighted as one of the most significant
gaps that we identified through our consultations with the stakeholders.

39



From our discussions, stakeholders revealed that a central data repository with
accessible, up-to-date, accurate, region wide data would lead to huge efficiencies.
There is also a need for general business intelligence data gathering.
In terms of region-wide economic development research, there appears to be a gap
in on-going research relating to economic development. In changing economic
circumstances, the economic stakeholders of the region have recognised the need
for intelligence on where the region sits in terms of its competition, where
markets are evolving, where there are new opportunities, and where the region
should be focusing its efforts. There is value in measuring and analysing
performance, and the impacts, effects and opportunities of initiatives, programs,
and funding. Efficiencies can be made and opportunities maximised. There is a
requirement for on-going research on economic development trends and analysis
of how existing and potential programs, investments, initiatives and models have,
and can, impact the economic viability of the region. This information should be
shared across all levels and sectors and should feed into policy development,
infrastructure plans and strategies for improving and positioning the region at its
best. The WRCERG may have a role in fulfilling the above requirements.
Economic Policy Development
Economic development policy is developed at the local and regional level through
the Municipalities and the Region of Waterloo. However there is no Municipality
or agency that is charged with the responsibility of creating and implementing a
region wide economic development strategy.
For external users accessing economic development policy and land use mapping
in particular, there is inconsistency in terms of terminology and colour coding.
Consideration should be given to streamlining land use mapping across the region
for simplification purposes for the general public.
Should a regional economic development strategy be developed, there needs to be
an institutional response which supports the delivery and preservation of the
strategy.

40


Waterloo Region Economic Development Study: Assessment of Economic Development Services and the Provision of Employment Lands

Waterloo Region Economic Development Study: Assessment of Economic Development Services and the Provision of Employment Lands

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