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January 31, 2015

Regional Job Creation Leadership to be Highlighted at Guelph Economic Summit


Guelph Chamber of Commerce and the Credit Unions of Ontario release 2015 economic outlook for Kitchener-Waterloo-Barrie Economic Region
JANUARY 31, 2015 Southern Ontario - The Kitchener-Waterloo-Barrie regional economy will continue to lead Ontario in economic growth, according to a new two year forecast released by the Guelph Chamber of Commerce and the Credit Unions of Ontario. The region, which includes Guelph, is creating jobs at a rate that outpaces every other region in Ontario. Approximately 30,000 jobs are expected to be created over the next two years. Its unemployment rate, already below the provincial average of 7.3, is expected to shrink to 6.2 percent by 2016.

According to the outlook, economic growth in the region will gain some momentum through 2016, led by exports and business investment spending in manufacturing and hi-tech. A rebound in American auto sales will bode well for the region’s auto-related sector. The recent announcement by manufacturer Linamar to add 1,200 jobs at their Guelph plant may be an early indication of improved manufacturing prospects in the region.

“As we reach the mid-point of ‘Prosperity 2020’ and we begin to see signs of robust economic activity, the Guelph Economic Summit on Friday, January 30, 2015 allows us to chart the next steps to ensure we have long term sustainable growth”, says Amy Kendall, Chair of the Board of Directors for the Guelph Chamber of Commerce.

Yet some other manufacturing operations face a different future, the outlook notes. Total manufacturing employment in the region actually declined during 2014 to its lowest level in more than a decade. Owens Corning will be cutting more than 100 jobs at its fibreglass plant in Guelph by 2016 when it shifts some production to Mexico.

Nonetheless, a lower Canadian dollar combined with a rapidly growing U.S. economy will boost exports, profitability and investments. Lower oil prices may also assist the bottom line for some manufacturers. In addition, an uptick in the global economy will also begin to improve and potentially expand ICT exports from the region.

Housing prices are expected to continue to rise rapidly over the next two years, outpacing price increases in every region but Toronto. The average price of a house in 2015 is expected to rise to $343,000, up from $282,000 in 2010. Housing sales are expected to continue to rise at a strong pace for the next few years, rising by 4.3 percent in 2015 and 4.5 percent in 2016.

Population is estimated to grow at a rate of around 1 percent in 2015 and 2016, or by just under 30,000. The region’s high-tech companies and educational institutions continue to attract people from across Canada, many of them seeking stability and growth potential for start-ups.

“The Guelph Economic Summit provides the forum for us to evaluate where we have been, focus on where we need to go and how we can get there”, adds Kithio Mwanzia, President & CEO of the Guelph Chamber of Commerce.

Key Facts and Highlights:

• The region is creating jobs at a rate that outpaces every other region in Ontario. Approximately 30,000 jobs are expected to be created over the next two years. Its unemployment rate, already below the provincial average of 7.3, is expected to shrink to 6.2 percent by 2016.

• Net migration to the region is expected to be strong, growing at a rate of 1 percent in 2015 and 1.1 percent in 2016 as the region grows by just under 30,000. Rising intra-provincial net migration reflects the region’s attraction as high-tech and higher education hub.

• Housing prices are expected to continue to rise rapidly over the next two years, outpacing price increases in every region but Toronto. The average price of a house in 2015 is expected to rise to $343,000, up from $282,000 in 2010.

• Housing markets performed well in 2014 with unit sales only slightly lower than in 2013. Residential housing sales are expected to continue to rise at a strong pace for the next few years, rising by 4.3 percent in 2015 and 4.5 percent in 2016.

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[eduaid Newsdesk, Source: Click here to view the news]




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