Edmonton 2006

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Edmonton 2006
Prepared For Edmonton Treasury Management
Association May 25, 2006
Presented By Allan Scott, President and
CEO Edmonton Economic Development Corporation
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• EEDC profile
• Tourism market
• Current economic outlook
• Key issues for growth

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• What does EEDC do?

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EEDC Organization Chart
5
EEDC Funding

• 2006 Funding Summary

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Economic Development
Business Attraction
Knowledge Management
Industry Cluster Development
Edmonton Research Park
Entrepreneur Support

• Targeted marketing programs
• Edmonton.com
• Marketing tools
• Lead generation
• Sponsorships
• Advertisements
• Annual Lunch
• Intergovernmental Relations

• Business visits
• Information products
• Targeting key clusters
• Information sharing
• Addressing common challenges
• Business retention
• Labour market needs

• Accelerating development
• Building biotec critical mass
• Site visits

• Monitor and report on economic climate of region
• Gather business intelligence in support of
  Tourism and Economic Development
• Program performance measurement
• Economic impact assessments

• VenturePrize Business Plan Competition
• Deal Generator
• Angel Investor Network
• TEC Edmonton

Clusters__________________________________________
________________________________________



- Advanced Manufacturing -
Biomedicine Biotechnology -
Information Communication Technologies -
Forest Products - Engineering
Technical Services - Agri-Food Products -
Nanotechnology Microsystems -
Transportation Logistics - Oil, Gas
Chemicals
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2005 Accomplishments

• Major Accomplishments
• Secured 14.2M in funding for Biotech Center
• Obtained support for land transfer from Province
  to the City for Research Park expansion.
• Negotiated Dell lease and construction plan
  Construction started Sept. 24
• Four new Research Park buildings planned
• BBDC, QSV Biologics, CV-Technologies, BioNeutra
• Processed 150 new investment leads to date, and
  currently working on 35 active prospects
• Three smaller company relocations/expansions so
  far in 2005
• Formalizing the TEC Edmonton joint venture
• ATC transformation to true incubator increase
  from 11 to 27 tenants
• Other Accomplishments
• Fly Euro survey campaign generated gt3,000
  responses
• Economic Developers Association of Canada
  conference
• Restructure and launch of new marketing
  organization
• Edmonton Edge promotion in Toronto and Ottawa
• Fox News broadcast on Oil sands
• Oil Sands seminars in Houston and Chicago
• Developed plan for contact management system

Bottom line Key strategies are moving forward
Marketing, Research Park development and Cluster
strategy.
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Edmonton Tourism
Industry and Visitor Services
Meetings, Business Travel and Event Sales
Leisure Sales
Regional Marketing
Film Office

• Gateway Park VIC
• Conference Servicing
• Partnership
• Youre Welcome Edmonton
• WTC VIC

• Direct sales Association and Corp. Meeting
  Planners
• Edmonton Events International
• National, International Sales - SCC

• Direct sales Travel Trade and Travel Media
• Develop and promote new international in-bound
  packaging

• Generate visitations from short-haul markets
• Develop and market special interest packages
  (Hotels for Hockey Lovers, Golf)
• Implement Festival City marketing

• Secure Film Production for Greater Edmonton
• Trade Missions to primary markets
• Work with Alberta

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• Tourism Market

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Tourism Highlights

• Edmonton is now Albertas number one tourism
• destination
• - for total in-person visits and person-visit
  from other provinces
• Edmonton is Albertas top-ranked
• metropolitan" destination
• - for total U.S. person-visits and total tourism
  revenues
• Alberta Economic Development policy and
  economic analysis based on 2004 Stats Canada
  survey numbers.

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Tourism Highlights

• 4.4 million person-visits in 2004
• 1 billion in visitor expenditures
• Estimated sector employment 21,800
• 13,400 hotel/motel rooms in CMA 2005
• Visitor origin (2004)
• Alberta 68.3
• Other Canada 20.1
• U.S. 6
• International 3

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Edmonton Tourism Market
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Overall Visitor Growth
Source Conference Board of Canada, Travel
Markets Outlook, Autumn 2005
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Growth in Visitor Expenditures
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Domestic Visitor Growth
Source Conference Board of Canada, Travel
Markets Outlook, Autumn 2005
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U.S. Visitor Growth
Source Conference Board of Canada, Travel
Markets Outlook, Autumn 2005
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Overseas Visitor Growth
Source Conference Board of Canada, Travel
Markets Outlook, Autumn 2005
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Major Municipal players in the Canadian Business
Convention Market
Source Statistics Canada, Travel to Canadian
Cities 2004, December 2005
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Origin of Edmontons Business Convention Visitors
Source Statistics Canada, Travel to Canadian
Cities 2004, December 2005
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Expenditures by Business Convention Visitors
Source Statistics Canada, Travel to Canadian
Cities 2004, December 2005
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Expenditures by Business Convention Visitors Per
Visit
Source Statistics Canada, Travel to Canadian
Cities 2004, December 2005
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Shaw Conference Centre

• The economic impact of the recently expanded
• Shaw Conference Centre is expected to exceed
• 42.0 million in 2006.

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Shaw Conference Centre

• Hall D expansion opened March 22, 2006
• Meeting the market need to host downtown events
  sized 600 attendees
• Attracting new events to the region and
  contributing to increased room bookings
• Catalyst for continued downtown revitalizing
• and business development

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Shaw Conference Centre

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• Current Economic Outlook

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Greater Edmonton by the numbers in 2006
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Greater Edmontons Recent Growth Drivers

• Over the past decade . . .
• Oilsands investment
• Rising energy prices
• Strong construction activity
• Surplus labour
• Strong net-migration
• Low interest rates
• Growth in personal income
• Strong consumer spending

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Real GDP Growth Rate
Source The Conference Board of Canada,
Metropolitan Outlook, Winter 2006
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Alberta Major Projects
114.5 billion
Other
Billions
Oil, gas, oilsands
18.3 billion
Oct-05
Aug-96
Source Alberta Economic Development
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Oilsands IndustryExpenditure Forecast
Source Alberta Economic Development December
2005
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Strong Employment Growth
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World Oil Prices
Source Canadian Petroleum Association and City
Forecast Committee, Edmonton Socio-Economic
Outlook, 2005 - 2010
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Alberta Natural Gas Prices (Cdn/GJ)
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Alberta Government Resource Revenues

• 2005/06 Forecast Values (millions)

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Population Growth
Source City Forecast Committee, Edmonton
Socio-Economic Outlook, 2005 - 2010
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Unemployment RateEdmonton and Canada
Source Conference Board of Canada, Metropolitan
Outlook, Winter 2006
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Retail Sales Growth
Source The Conference Board of Canada,
Metropolitan Outlook, Winter 2006
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Annual Housing StartsEdmonton CMA
Sources Canadian Mortgage and Housing
Corporation, Conference Board of Canada,
Metropolitan Outlook, Winter - 2006 City
Forecast Committee, Edmonton Socio-Economic
Outlook, 2005 2010, September 2005
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• Key Issues for Growth

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Current Labour Market

• Surplus Labour
• Unemployment rate in Edmonton was 11.2 in 1993,
  9 in 1995. Has declined steadily to under 5.
  Now lowest among major Canadian cities.
• Strong Net-migration
• Edmonton has a strong economy relative to other
  provinces
• Low taxes and housing prices contributed to a low
  cost-of-living

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Current Labour Market

• 2005 employment growth in Edmonton led by a 5.1
  (6,100 new positions) increase in the goods
  producing sector, primarily construction (3,800
  new positions) and manufacturing (2,800 new
  positions).
• We expect 13,000 new jobs in 2005 and a further
  10,000 jobs in 2006 for Edmonton.
• An estimated total of 54,600 new jobs will be
  created between 2005 and 2010.

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Future Growth Challenges

• What the main indicators show
• As of September 2005, 32 of 53 occupational
  groups had an unemployment rate of less than 3.
• 56 of employers reported hiring difficulties in
  the 2005 Wage and Salary Survey.
• 28 of employers had at least one position
  unfilled for over 4 months.
• People and Skills Investments Division, AHRE

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Future Growth Challenges

• Over 400,000 new jobs will be created between
  2005 and 2015 at an average annual increase of
  1.9
• Over 314,000 new workers at an average annual
  increase of 1.4
• Conference Board of Canada estimates Alberta
  could have a shortfall of 350,00 workers by 2025.
• People and Skills Investment Division, AHRE

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Provincial Strategy

• Four Strategic Themes
• Attract (Immigration and Mobility)
• Improving Albertas ability to attract workers
  from outside the province
• Develop (Education and Training)
• Developing the skills and knowledge of all
  potential labour force groups already in Alberta
• Retain (Work Attractiveness)
• Retaining skilled and experienced workers
  already engaged in Albertas workforce
• Inform (Career, Workplace and Labour Market
  Information)
• Developing information promoting effective
  practices and partnerships engaging in labour
  force planning
• People and Skills Investment Division, AHRE

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Edmonton Initiatives

• Six working committees were formed by EEDC to
• address each source.
• Aboriginal People Aboriginal people represent 5
  of the population. Recruit and retain Aboriginal
  employees in the regional workforce as a means of
  resolving our regions skills. - Service
  provider/employer forum March 2006.
• Apprentices ensure apprenticeship program fills
  occupation gaps more quickly by lending support
  and finding ways to make a unique contribution to
  the existing program. - Major expansion of
  the NAIT apprenticeship training program is
  underway.

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Edmonton Initiatives

• 3. Students Improve communication with teachers,
  parents, school counsellors and students to
  encourage selection of skill-gap occupations.
  Support efforts to improve the 66 high school
  graduation rate.
• Industry presentations for high school parents
  Jan. 2006.
• Take our Kids to Work Sept. 2006.
• 4. Nano-tech workers Keep Edmontons competitive
  edge in nanotechnology by co-ordinating a study
  to determine cluster needs and initiating
  remedial action. Long term initiative to support
  the future.
• Based on the findings, recommendations may be
  acted upon by Nano-tech Steering Committee.

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Edmonton Initiatives

• 5. Migrants Market Edmonton as the preferred
  place to live and work for prospective employees
  and their families from across North America.
• Migrant study.
• Market to immigrants in Toronto, Montreal and
  Vancouver to spur them to relocate to Edmonton.
• 6. Immigrants As part of the Mayors Initiative
  on Immigration and Settlement, increase the
  number of immigrants coming to Greater Edmonton
  to address e labour and market demands.
• - Employer awareness campaign Jan. 2006.
• - Develop an electronic employer tool kit April
  2006.
• - Edmonton profiled on Federal Immigration
  website.
• - Foreign credentials.

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Solving Labour Supply Challenge is Key

• Economic diversification efforts need to
  continue.
• The energy industry is cyclical.
• Who remembers 1986 - 10/bbl?
• We have to create high-quality employment
  opportunities for our young people.
• Retaining talent is key to a healthy society

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Top 8 Strategies for MaintainingShort and Long
Term Growth

• Ramp up people attraction
• Reduce outbound migration
• Improve the external image of Greater Edmonton
• Offer flexible work conditions to maintain a high
  participation rate within our workforce.

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Top 8 Strategies for MaintainingShort and Long
Term Growth

• Stay the course on economic diversification
• Introduce labour productivity improvements
• Provide a broad range of educational
  opportunities for our youth
• Develop training strategies that will enable
  workers in the primary working age 25 45, to
  both upgrade and change their careers.

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Reaching Edmontons FullEconomic Potential

• The Good
• Solid growth fundamentals for Albertas energy
  industry
• More diversified industrial bases increasingly
  serving export markets
• Attractive cost environment
• Quality of life
• Development boom
• A good run of solid growth resulting from
  Albertas recent economic success, which has
  attracted net worker migration
• Strong community engagement in
• Fundraising for basic education, research and
  health infrastructure
• Attraction of major world events and competitions
• Support for the retention of professional sports
  franchises

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Reaching Edmontons Full Economic Potential

• Challenges and Issues
• Labour Supply
• Attracting the incremental labour force to
  Edmonton in order to meet demand over the
• next 10 years
• Level of awareness and image, nationally and
  internationally
• Battling Edmontons 2nd tier profile
• Not a primary business or tourism destination
• Need to strengthen knowledge-based company
  creation capacity
• Limited pool of experienced entrepreneurs and
  managers
• Lack of locally managed venture capital
• Negative external perception of Edmontons
  Downtown
• Political leadership? Federal, Provincial,
  Municipal making strategic, bold decisions?
• Engaging community leadership?

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In Summary

• Greater Edmontons economic outlook is very
  positive.
• The significant impact of the regions tourism
• market demonstrates the opportunity to use the
  boom
• times to successfully diversify the economy even
  more.
• This strong momentum will continue if Edmontons
• national profile can be increased to help attract
  the
• much needed labour supply.

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Economic Outlook

• Visit www.edmonton.com
• a regional portal for all your marketing and
  information needs.
• Economic Outlook 2006 Report
• Edmonton Economic Developments Corp.s full
  analysis of Greater Edmontons current economic
  status and forecasts for 2006 is available on
  www.edmonton.com/statistics.