Economy at a Glance Calgary's Advantages March 2015

January 2015

Slide 1

March 2015

January 2015

Slide 2

Where is Calgary?

Strategic location

• Western Canada’s business centre

• 132 head offices in Calgary

• Western Canada’s distribution hub

• Highway 1 and Canamex

• Canadian Pacific Railway and Canadian National Railway

• Calgary International Airport has connections to 100 destinations

• 50 million people accessible by ground transportation within 24 hours

January 2015

Slide 3

About Calgary Economic Development

• Calgary Economic Development is a conduit, a connector and a catalyst

• Promotional agency

• Lead economic development agency

• Non-profit organization

• Arms length to City of Calgary

• Funded via Government, Industry and Community partnerships

• Mandated to support / connect business

• Business expansion, investment and attraction

• Trade development

• Workforce development

• Research and information

January 2015

Slide 4

10-year Economic Development Strategy

A strategy to make a global city – competitive, successful and unique

Focus on People and Community

• Educate and exchange

• Remove barriers to meaningful employment

• Enhance the city’s sense of place and experience

Focus on Business and Enterprise

• Strategically develop Calgary’s economy

• Provide smart infrastructure

• Create an environment for smart ideas and innovation

Focus on International Reach

• Promote the Calgary brand and identity

• Diversify tourism and convention activity

• Enhance international business development and connections

January 2015

Slide 5

Source: MoneySense Magazine

Calgary’s rankings

MoneySense Magazine - Canada’s best places to live, 2014

• Calgary ranked #1 in “top 10 large cities”

• Calgary ranked #2 out of 201 small, medium and large Canadian cities over 30 categories

• Calgary ranked #2 in “top 10 places to raise kids”

• Calgary ranked #9 in “top 10 best places for new immigrants”

• Calgary ranked #9 in “top 10 places to retire”

January 2015

Slide 6

Source: Economist Intelligence Unit, Mercer


Economist Intelligence Unit – Most livable city in the world

• Calgary #5 in 2014 (#5 for 2009, 2010, 2011, 2012 and 2013 )

• Ranking of 140 global cities with 30 indicators

• Criteria: stability, healthcare, culture and environment, education, infrastructure

Mercer – Quality of living survey

• Calgary is #31 in the world in 2014 (up from #32 in 2012, #33 in 2011 ranking)

• Ranking of 223 global cities with 39 criteria grouped into 10 categories ranked against New York as base city

• Criteria: political, social, economic and environmental factors

January 2015

Slide 7

Source: Conference Board of Canada, City Magnets III, 2014


City Magnets III: Benchmarking the attractiveness of 50 Canadian cities, 2014

- Assessment of 43 features in 7 categories that make cities attractive to migrants

- For Attractiveness to Migrants Report card, Calgary ranked #2 (out of 50 cities) with Grade A

Calgary ranked:

• Grade A in Overall Ranking

• #1 with Grade A for Economy

• #1 with Grade A for Innovation

• #5 with Grade A for Housing

• #17 with Grade B for Society

• #25 with Grade C for Education

• #30 with Grade C for Health

• #36 with Grade B for Environment

•

January 2015

Slide 8

Enviable lifestyle

A focus on family and a sense of community

• Calgary schools consistently top performers in Alberta

• Boasts one of the most successful transit systems in the world (ridership of 94.4 million; 4,205 route kilometres)

• 50 per cent of Albertans volunteer -- higher than the national average of 44 per cent (2013)

• Albertans reported the highest financial donations with an average of $863 in 2013 (the national average was $531)

January 2015

Slide 9

Enviable lifestyle

Active and healthy lifestyle

• An hour’s drive to spectacular Banff and the Rocky Mountains

• The most extensive urban pathway and bikeway system in North America (700 km along rivers; 290 km on-street bikeways)

• World-class attractions and sporting amenities, including: Calgary Stampede, Calgary Zoo, WinSport Canada’s Canada Olympic Park, National Sports Hall of Fame, Telus Spark Science Centre

• Abundant green space and parks (3,000 sites)

• A community rich in the arts, culture, entertainment and leisure activities and venues

January 2015

Slide 10

Global Scorecard on Prosperity

Sixth annual report benchmarking 24 global metropolitan areas (including five Canadian cities) with 33 indicators in two domains:

Economic performance - (18 indicators)

Labour attractiveness – (15 indicators)

• Overall ranking: Calgary ranks #3 in 2015 (ranked #2 in 2014)

• Economy overall ranking: Calgary ranks #7 with Grade B

• Labour attractiveness: Calgary ranks #5 with Grade B

Source: Toronto Region Board of Trade. Toronto as a Global City: Scorecard on Prosperity, 2015

January 2015

Slide 11

Calgary demographics

• Median age is 36.0 with 74.3 per cent aged 20 and older; 48.5 per cent of Calgarians are within core working age group of 25 – 54 (CMA,

2013)

• 26.2 per cent of population of Calgary CMA are immigrants with 1.9 per cent non-permanent residents (2011 NHS)

• Top three countries of birth for immigrants to Calgary CMA –Philippines (10.9 per cent), India (10.0 per cent) and China (9.5 per cent) (2011 NHS)

• 28.1 per cent of population is a visible minority with South Asian, Chinese and Filipinos leading (2011 NHS)

• Most frequently reported ethnic origins for Calgary CMA: English (24.1 per cent), Canadian (20.0 per cent), Scottish (18.5 per cent) (2011 NHS)

• Median total income 2010 – $89,490 (all Census families)

• Average household size – 2.6 people (2011 Census)

• Second highest level of educational attainment of population aged 25 – 64 of major Canadian cities (after Ottawa) (2011 NHS)

Source: Statistics Canada

January 2015

Slide 12

Source: Statistics Canada, Conference Board of Canada

Economic indicator summary

*Seasonally adjusted 3 month moving average

Indicator Date ValueChange / Rate (%)

Geography

PopulationChange over year July 1, 2014 1,511,755 3.5% CER

Inflation rate Change over year Mar. 2015 1.1% CMA

Employment*Change over year Mar. 2015 817,900 3.3% CMA

Unemployment rate* Mar. 2015 5.0% CMA

Average hourly wage* (hourly employees)

Change over year Jan. 2015 $27.55 5.0% Alberta

Average hourly wage* (salary employees)

Change over year Jan. 2015 $39.89 4.6% Alberta

Average weekly earningsChange over year Jan. 2015 $1,170.84 4.0% Alberta

Gross domestic productChange over year (Real GDP growth) Q4 2014

$117,002.00(2007 $ Millions) 3.1% CMA

Retail sales Change over year Q4 2014

$28,071.00($ Millions) 7.8% CMA

January 2015

Slide 13

Source: Statistics Canada, Alberta Advanced Education and Technology

Educated population

Calgary has a higher degree of learning

• Second highest level of educational attainment of population aged 25 – 64 of major Canadian cities at 69.6 per cent (after Ottawa) (2011 NHS)

• One of the best educated populations in North America

Headcount (2012/2013)

University of Calgary 34,474

SAIT Polytechnic 26,815

Mount Royal University 15,168

Bow Valley College 10,727

ACAD 1,250

Olds 2,573

Calgarians are connected

• All Calgarians have access to broadband Internet connectivity

• 91.8 per cent of Calgary households have access to the Internet

at home, compared to 82.5 per cent of Canadians (2012)

January 2015

Slide 14

High wages and salaries

$69,444

$60,455

$52,637 $52,537

$45,452 $44,553

Calgary Edmonton Ottawa Toronto VancouverMontreal

Wages and salaries

per employee

2014

Canadian CMAs

• Consistently highest wages and salaries per employee in Canada for the past 10 years -- $69,444 per employee in 2014

• Second highest total growth in wages and salaries per employee over the past 5 years (2010-2014) at 14.8 per cent

• Second highest total growth in wages and salaries per employee over the past 10 years (2005-2014) at 34.9%

• Second highest average annual growth in wages and salaries per employee over the past 10 years (2005-2014) at 4.4%

Source: Conference Board of Canada

January 2015

Slide 15

High personal income

$56,178

$49,464$46,388

$41,898 $42,651$40,109

Calgary Edmonton Ottawa Toronto VancouverMontreal

Personal income per capita

2014

Canadian CMAs

• Highest personal income per capita in 2014 at $56,178.21

• Third highest (tied with Vancouver) five-year average annual change in personal income per capita at 2.8% (2010-2014)

• Second highest average annual growth in personal income per capita over the past 10 years (2005-2014) at 3.5%


January 2015

Slide 16

Calgary’s millionaires

152.9

86.4

58.849.8

36.8

23.3

Calgary Toronto EdmontonVancouverMontreal Ottawa

Millionaires per capita

(100,000 population)

2012

Canadian CMAs

• Highest number of millionaires in Canada on a per capita basis in 2012 (152.9 per 100,000)

• The number of Calgary millionaires has increased by 2.0 per cent over the past year to 2,000

• Calgary millionaires reported a median income of $1,548,640 in 2012


January 2015

Slide 17

Calgary and region population

Source: City of Calgary Civic Census, City of Calgary Corporate Economics, Statistics Canada

1,065,455

1,071,515

1,090,936

1,120,225

1,156,686

1,195,1941,219,194

1,240,158

1,264,460

1,307,854

1,364,8271,313,919

1,338,010

1,363,595

1,409,064

1,468,689

900,000

1,100,000

1,300,000

1,500,000

2009 2010 2011 2012 2013 2014

Calgary’s population -

City, CMA, Economic Region

City of

Calgary

Calgary

CMA

Calgary

Economic

Region

• City of Calgary population is forecast to be 1.343 million by 2019 (City of Calgary Corporate Economics, Fall

2014)

• Calgary CMA is forecast to have a population of 1.529 million by 2018 (Conference Board of Canada, Autumn 2014)

• Calgary Economic Region is forecast to have a population of 1.732 million in 2019 (City of Calgary

Corporate Economics, Fall 2014)

January 2015

Slide 18

Population growth

13,677

25,557

17,631

12,44112,920

-4,154

9,563

19,658 19,067

28,017

8,906

9,887

10,552

9,695 9,643

10,214

9,858

9,361 10,260

10,491

-10,000

-5,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Population growth

2005-2014

City of Calgary

Natural Increase

Net Migration

Annual populationgrowthrate (%)

3.3%

3.3%2.7%

1.8%

0.6%

2.2%

2.3%

2.8%

3.7%

2.4%

Source: City of Calgary Civic Census

January 2015

Slide 19

Leading population growth

29.3%

27.5%

15.4%14.4%

13.6%

10.2%

Calgary Edmonton Toronto Vancouver Ottawa Montreal

Total population growth

2005-2014

Canadian CMAs

• Highest population growth in 2014 at 3.6 per cent (2014)

• Highest total population growth and average annual population growth over the past ten years (2005-2014), at a rate of 29.3 per cent and 2.9 per cent respectively

• City of Calgary’s population is 1.195 million (April 1, 2014)

• Calgary CMA’s population is 1.407 million (July 1, 2014)

• Calgary Economic Region’s population is 1.512 million (July 1, 2014)


January 2015

Slide 20

Attracting migrants

• Boasts a net gain of 122,761 migrants over the past five years (2010-2014) and 237,687 migrants over the past 10 years (2005-2014)

• First in Canada in the number of overall net migrants per capita in 2014, at 17.5 migrants per 1,000 population


20,615

21,449

23,348

25,002

24,512

13,901

11,341

30,794

42,138

24,587

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Overall net migration

Calgary CMA

2005-2014

January 2015

Slide 21

Coming from across Canada

75,151

66,474

17,08315,082

-42,425

-64,919

Calgary Edmonton Vancouver Ottawa Toronto Montreal

Total 10-year net

interprovincial migration

2005-2014

Canadian CMAs

• Maintained its lead in number of net interprovincial migrants over the past 10 years – a staggering 75,151 from 2005-2014, equal to an annual average of 7,515


January 2015

Slide 22

Coming from within Alberta

403

3,085

3,565

2,855 2,855

2010 2011 2012 2013 2014

Net intraprovincial

migration

2010-2014

Calgary CMA

• Calgary has experienced increased migration into Calgary from other Alberta cities and rural areas over the the past five years


January 2015

Slide 23


Coming from around the world

12,845

6,494

18,580

21,497

19,740

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

2010 2011 2012 2013 2014

Net international migration

2010-2014

Calgary CMA• Over the past 5 years (2010-

2014), the number of net international migrants has increased by 79,156

• In 2014, Calgary placed fourth in the number of net international migrants after Toronto, Montreal and Vancouver

January 2015

Slide 24

Attracting newcomers

Top source countries for permanent residents2013

Calgary CMA

Source countryNumber of permanent

residentsDistribution (%)

All source countries 17,602 100.0

Philippines 3,000 17.0

India 2,361 13.4

People’s Republic of China 1,624 9.2

Pakistan 1,137 6.5

United States of America 714 4.1

Nigeria 628 3.6

United Kingdom and Colonies 611 3.5

Iran 464 2.6

Republic of Korea 330 1.9

United Arab Emirates 269 1.5

Top 10 source countries 12,449 70.7

Other source countries 5,153 29.3

Source: Citizenship and Immigration Canada

January 2015

Slide 25

Diverse population

47.0%45.2%

28.1%

22.8% 22.4%20.3%

Toronto Vancouver Calgary Ottawa Edmonton Montreal

Visible minority rate

2011 National Household

Survey

Canadian CMAs

• Among the highest visible minority rates in Canada

• Third after Toronto and Vancouver

• Calgary’s top visible minorities groups: South Asian, Chinese, Filipino

• Only 20.0 per cent of Calgarians identify Canada as location of origin/ancestry

• Most prevalent origins: English, Scottish, German, Irish

Source: Statistics Canada, 2011 National Household Survey

January 2015

Slide 26

Labour force growth

33.4%

30.3%

14.9% 14.3%13.5%

9.8%

Edmonton Calgary Ottawa Toronto VancouverEdmonton

Total labour force growth

2005-2014

Canadian CMAs

• Highest in labour force growth in 2014 at 2.8 per cent

• Second highest total labour force growth over the past 10 years (2005-2014) at 30.3 per cent

• Second highest average annual labour force growth over the past 10 years (2005-2014) at 2.8 per cent


January 2015

Slide 27

Employment growth

32.6%

28.8%

14.7%13.3% 13.0%

10.4%

Edmonton Calgary Ottawa Vancouver Toronto Montreal

Total employment growth

2005-2014

Canadian CMAs

• Highest in employment growth in 2014 at 2.6 per cent

• Second highest total employment growth over the past 10 years (2005-2014) at 28.8 per cent

• Second highest average annual employment growth over the past 10 years (2005-2014) at 2.8 per cent


January 2015

Slide 28

Engaged workforce

73.4%73.0%

69.9%

66.8%66.1%

64.7%

Calgary Edmonton Ottawa Toronto MontrealVancouver

Participation rate

2014

Canadian CMAs

• Consistently highest labour force participation rate every year for the past decade – 73.4% in 2014.

• Highest labour force participation rate over the past 10 years (2005-2014) with an average annual rate of 75.1 per cent


January 2015

Slide 29

Low unemployment rate

5.0% 5.1%

5.8%

6.7%

8.0% 8.2%

Calgary EdmontonVancouver Ottawa Toronto Montreal

Unemployment rate

2014

Canadian CMAs

• Second lowest unemployment rate in 2013 at 4.9 per cent (after Edmonton with 4.8 per cent)

• Lowest average annual unemployment rate over the past 10 years (2004-2013) at 4.8 per cent

• Second lowest average annual unemployment rate over the past five years (2009-2013) at 5.8 per cent (after Edmonton with 5.7 per cent)


January 2015

Slide 30

Large working-age population

• 47.7 per cent of Calgarians within the core working age group of 25 – 54 (Calgary

Economic Region, 2014)

• Highest employment-to-population ratio among major Canadian CMAs at 69.7

• Second youngest population among Canada’s major CMAs with a median age of 36.1 (2014)


0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70+

Population distribution

2014

Calgary Economic Region

January 2015

Slide 31

Productive workforce

$145,523

$118,376

$92,255 $91,469 $89,723$82,981

Calgary Edmonton Toronto Ottawa VancouverMontreal

Labour force productivity

2014

Canadian CMAs

• Consistently the highest labour force productivity in Canada -$145,523 in real GDP per worker in 2014

• Labour force productivity is a measure of the economic value of output per employee

Source: Statistics Canada, Conference Board of Canada

January 2015

Slide 32


Employment diversityHistorical employment by industry

2010-2014Calgary Economic Region

Industry2010

Persons (000s)

2014 Persons(000s)

Change 2010-2014

(%)

Agriculture 10.4 4.9 -52.9%

Forestry, fishing, mining, quarrying, oil and gas 48.4 65.6 35.5%

Utilities 5.7 6 5.3%

Construction 72.2 93.2 29.1%

Manufacturing 48.1 52.6 9.4%

Trade 113.9 117.9 3.5%

Transportation and warehousing 42.9 52.5 22.4%

Finance, insurance, real estate and leasing 49.2 46.3 -5.9%

Professional, scientific and technical services 78.8 99.2 25.9%

Business, building and other support services 27.6 35.4 28.3%

Educational services 44.3 46 0.0%

Health care and social assistance 75 88.3 17.7%

Information, culture and recreation 36.3 31.1 -14.3%

Accommodation and food services 42.3 54.9 29.8%

Other services 34.8 39.1 12.4%

Public administration 23.4 24.1 3.0%

Other services 37.4 37.1 -0.8%

Public administration 26.3 25.6 -2.7%

All Industries 817.0 919.8 12.6%

January 2015

Slide 33


Industry wages

Average overall wages by industry2014

Calgary CMAIndustry Hourly Rate

Agriculture, forestry, logging, fishing and hunting N/A

Mining, quarrying, and oil and gas extraction $43.66

Utilities $43.48

Construction $29.22

Manufacturing $28.31

Wholesale trade $29.94

Retail trade $16.99

Transportation and warehousing $26.88

Information and cultural industries $30.51

Finance, insurance, real estate and leasing $31.61

Professional, scientific, and technical services $35.95

Management of companies and enterprises N/A

Administrative and support, waste management and remediation services $21.17

Educational services $32.61

Health care & social assistance $29.80

Arts, entertainment and recreation $21.91

Accommodation and food services $15.04

Other services $22.80

Public administration $38.32

All industries $29.05

January 2015

Slide 34

Calgary’s economy

5.6%

4.5%

2.9%

2.4%

2.1%

0.5%

EdmontonCalgaryVancouverToronto Montreal Ottawa

Real GDP growth

2014

Canadian CMAs

• Second among major Canadian cities in real GDP growth in 2014 at 4.5 per cent

• Second highest total real GDP growth over the past 10 years (2005-2014) at 32.4 per cent

• Second highest 10-year average annual real GDP growth rate of 3.4 per cent (2005-2014)

• Conference Board of Canada forecasts a real GDP growth rate of 1.5 per cent for 2015, 2.8 per cent for 2016-2019, and 3.5 per cent for 2010-2019 (Winter 2015)


January 2015

Slide 35

Highest retail sales

59.8%

52.6%

38.8%36.1% 35.3%

33.5%

Edmonton Calgary Ottawa Toronto Vancouver Montreal

Total retail sales growth

2005-2014

Canadian CMAs

• Second highest total growth in retail

sales over the past 10 years (2005-

2014) at 52.6 per cent

• Second highest average annual retail

sales growth over the past 10 years

(2005-2014) at 5.8 per cent

• Highest retail sales per capita in 2014

at $19,573

• Second highest average annual

growth in retail sales per capita over

the past 10 years (2005-2014) at 2.8

per cent

Sources: Conference Board of Canada, Statistics Canada

January 2015

Slide 36

Small business drives economy

39.5 38.536.7

34.1

28.025.0

Calgary Vancouver Edmonton Toronto Montreal Ottawa

Small business per capita

(per 1,000 Population)

2014

Canadian CMAs

• Largest concentration of small businesses among Canadian cities on a per capita basis at 39.5 (per 1,000 population) in 2014

• Highest number of self-employed per capita in Canada in 2014 at 91.2 per 1,000 population

• Young entrepreneurs

• The largest group of Calgary entrepreneurs were in the 45-54 age group (28.2 per cent), followed by 35-44 age group (24.2 per cent)


January 2015

Slide 37

Successful businesses

• Calgary CMA experienced a dramatic decrease of 87.2 per cent in business bankruptcies over a 10-year period (2004-2013) to 74 in 2013 from 579 in 2004

• Of Alberta's 230 business bankruptcies in 2013, 32.2 per cent were from Calgary CMA

Source: Industry Canada

579

419

267

190

176147116

95 8674

0

100

200

300

400

500

600

700

2004200520062007200820092010201120122013

Business bankruptcies

2004-2013

Calgary CMA

January 2015

Slide 38

Low rate of business bankruptcies

• Of Canada’s major CMAs, Calgary ranked third in terms of lowest business bankruptcy rates per 1,000 businesses in 2013, at 0.6 per cent

Source: Industry Canada

0.2%0.3%

1.0%

1.7%

3.6%

Edmonton Vancouver Calgary Toronto Ottawa Montreal

Business bankruptcy rates

(per 1,000 businesses)

2013

Canadian CMAs

0.7%

January 2015

Slide 39

Western Canada’s head office centre

10.3

4.33.9

2.0 1.9

1.1

Calgary Toronto Vancouver Montreal Edmonton Ottawa

Corporate head offices

(per 100,000 population)

2013

Canadian CMAs• 132 Calgary-based companies

on the FP500 list; eight are among the top 50 in Canada

• Calgary has experienced a 48.3 per cent growth in head offices over past ten years (2004-2013)

• Highest concentration of head offices per capita in Canada, at 9.7 per 100,000 population

• Highest head office per capita growth for the period 2004–2013, at 14.5 per cent

Source: FP500 2013 Database; FP500 2004 Database

January 2015

Slide 40


Calgary’s economic diversity

Business establishments by industry2010-2014

Calgary Economic RegionIndustry 2014

Agriculture, forestry, fishing and hunting 622

Mining, quarrying and oil and gas extraction 1,614

Utilities 114

Construction 7,791

Manufacturing 1,850

Wholesale trade 2,753

Retail trade 5,232

Transportation and warehousing 2,417

Information and cultural industries 507

Finance, insurance, real estate and rental and leasing 4,533

Professional, scientific and technical services 13,236

Management of companies and enterprises 849

Administrative and support, waste management & remediation services 2,943

Educational services 714

Health care and social assistance 4,172

Arts, entertainment and recreation 529

Accommodation and food services 3,236

Other services (except Public administration) 4,753

Public administration 86

All industries 57,951

January 2015

Slide 41


Calgary’s economic diversityHistorical GDP by industry

2010-2014Calgary CMA

Industry2010

(2007 $ Millions)2014

(2007 $ Millions)

Total Change 2010-2014

(%)

Goods-producing industries 44,233 53,596 21.2%

Manufacturing 5,778 6,848 18.5%

Construction 7,985 11,347 42.1%

Primary and utilities 30,470 35,401 16.2%

Services-producing industries 53,533 62,470 16.7%

Transportation and warehousing 4,186 5,095 21.7%

Information and cultural industries 3,116 3,275 5.1%

Wholesale and retail trade 7,548 9,447 25.2%

Finance, insurance and real estate and leasing 15,270 17,408 14.0%

Business services 9,429 11,629 23.3%

Personal services 3,786 4,453 17.6%

Non-commercial services 6,979 8,024 15.0%

Public administration and defence 3,218 3,139 -2.5%

All industries 97,766 116,066 18.7%

January 2015

Slide 42


Calgary’s economic diversityForecast GDP by industry

2015–2019Calgary CMA

Industry2015

(2007 $ Millions)2019

(2007 $ Millions)

Total change2015-2019

(%)

Goods-producing industries 51,579 54,397 5.5%

Manufacturing 6,917 7,846 13.4%

Construction 10,076 10,349 2.7%

Primary and utilities 34,586 36,203 4.7%

Services-producing industries 63,142 70,948 12.4%

Transportation and warehousing 4,937 5,213 5.6%

Information and cultural industries 3,307 3,598 8.8%

Wholesale and retail trade 9,334 10,292 10.3%

Finance, insurance and real estate and leasing 17,874 20,227 13.2%

Business services 11,826 13,349 12.9%

Personal services 4,524 5,395 19.2%

Non-commercial services 8,185 9,419 15.1%

Public administration and defence 3,155 3,455 9.5%

All industries 114,721 125,345 9.3%

January 2015

Slide 43

Economic indicator summary

Sources: Statistics Canada, Conference Board of Canada, CREB, CB Richard Ellis, CMHC, Alberta Enterprise and Advanced Education

Summary of current real estate / construction indicators - Calgary

Indicator Date ValueChange/Rate

(%)Geography

Housing starts - numberChange over year

Year-to-date Feb. 2015

1,538 -40.8% CMA

Building permit values Change over year

Year-to-dateJan. 2015

$359.7 Million -33.9% CER

Major Calgary project values 1Change over year

Mar. 2015 $19.5 Billion 4.3% City of Calgary

Benchmark Calgary house price (single family)Change over year

Dec. 2014 $510,900 8.2% City of Calgary

Downtown office vacancy rateQ4 2014 9.8% City of Calgary

Suburban office vacancy rateQ4 2014 13.1% City of Calgary

Industrial real estate vacancy rate Q4 2014 3.4% City of Calgary

1 On hold projects removed from total value

January 2015

Slide 44

Strong construction activity

122.1%

86.9%

54.7%

47.4%

34.6%

26.3%

Edmonton Calgary Montreal Ottawa Toronto Vancouver

10 year total growth in

total building permits

2005-2014

Canadian CMAs

• Second highest total growth in total building permits over the past ten years (2005-2014) at 86.9 per cent

• Second highest total growth in residential building permits over the past ten years (2005-2014), at a rate of 96.5 per cent

• Second highest total growth in non-residential building permits over a 5 year period (2010-2014) at 108.4 per cent


January 2015

Slide 45

Source: Alberta Innovation and Advanced Education

Calgary major projects (as at March 2015)

Company name Project descriptionProject cost ($ Millions)

Timing Status

WAM Development Group / AIMCo'Stonegate Landing' Retail, Office and Industrial $3,000 2010-2021 Under Construction

Calgary Airport Authority International Transborder Concourse $1,427 2011-2015 Under Construction

ENMAX Energy Corp. / Capital Power Corp. 'Shepard Energy Centre' Power Plant $1,400 2011-2015 Under Construction

Government of Alberta / Alberta Cancer Foundation Calgary Cancer Project $1,200 2016-2020 Announced

Brookfield Properties Ltd. 'Brookfield Place Calgary' Office Towers $1,000 2013-2017 Under Construction

Alberta Health and WellnessFoothills Medical Centre Upgrade (McCaig Tower) $550.6 2006-2016 Under Construction

Shepard Development Corp. Office Building Campus (Ten Buildings) $500 2014-2019 Announced

Oxford Properties Oxford Airport Business Park $500 2011-2019 Under Construction

ATCO Pipelines High-pressure natural gas pipeline network $450 Completion by 2018 Announced

Calgary projects

January 2015

Slide 46

Source: CB Richard Ellis

Office and industrial market

5.1%

9.8%

12.9%

15.7%

9.8%

13.2%

12.1%

17.3%

13.1%

3.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Class AA Class A Class B Class C Total

Vacancy rates by market: Calgary

Q4 2014

Downtown Office

Suburban Office

Industrial

January 2015

Slide 47

Source: City of Calgary

Non-residential taxes - 2014

Calgary’s non-residential municipal tax rate 0.0106938

Calgary’s non-residential provincial tax rate 0.0034170

Calgary’s total non-residential tax rate 0.0141108

Calgary’s business tax rate* 0.0758

Alberta has no inventory tax, no machinery and equipment tax, and no payroll tax

* It should be noted that the City of Calgary is consolidating the business tax with the non-residential

property tax. This is an incremental process, culminating with the elimination of the business tax by

2019.

January 2015

Slide 48

Housing market affordability

Census metropolitan

area

Average price

Qualifying

income

Affordability measure

Vancouver $906,400 $164,400 85.6

Toronto $725,600 $141,500 65.6

Montreal $399,900 $82,700 48.1

Ottawa $413,800 $93,600 37.7

Edmonton $410,000 $86,400 36.3

Calgary $500,300 $98,200 33.9

Canada $449,900 $92,200 48.1

• On average, Calgary still offers more affordable* housing than Vancouver, Toronto, Montreal, Ottawa, Edmonton and the national average.

* The Royal Bank Housing Affordability Index measures a house price in relation to the total payments required for a mortgage, utilities and property tax. The higher the measure, the more difficult it is to afford a house.

Standard two-storey house Q4 2014

Source: RBC Economics. Housing Trends & Affordability, March 2015

January 2015

Slide 49

Low property taxes

$1,587

$1,842 $1,913

$2,212

Calgary Vancouver Edmonton Toronto

Municipal property tax for

a representative*

single family house

2013

Select Canadian CMAs

• Calgary’s residential property taxes are among the lowest of any major Canadian city

* Representative single family house is defined as 25-35 years old, 3 bedroom bungalow, main floor 1,200 square feet, double car garage, finished basement located in average neighbourhood of city

Source: City of Calgary, 2013 Residential Property Taxes and Utility Charges Survey

January 2015

Slide 50

Low property taxes

$4,866

$4,984

$5,226

Toronto Calgary Edmonton

Total property tax and utility

charges for a

representative*

single family house, 2013

Select Canadian CMAs• Calgary’s residential property

taxes are among the lowest of any major Canadian city

* Representative single family house is defined as 25-35 years old, 3 bedroom bungalow, main floor 1,200 square feet, double car garage, finished basement located in average neighbourhood of city

Source: City of Calgary, 2013 Residential Property Taxes and Utility Charges Survey

January 2015

Slide 51

Alberta’s tax advantages

Most competitive provincial corporate tax jurisdiction in Canada

• Corporate income tax 10 %

• Sales tax 0 %

• Payroll tax 0 %

• Inventory tax 0 %

Lowest provincial personal income tax rate in Canada

• Marginal personal income tax rate 10 %

January 2015

Slide 52

Source: Alberta International and Intergovernmental Relations

Alberta’s trade strength

Alberta’s exports in 2012 ($95.9 billion)

• Oil (including oil sands) - $57.9 billion

• Gas & natural gas liquids - $8.6 billion

• Chemicals - $6.9 billion

• Food, feed & beverage - $3.5 billion

• Energy (including mining) - $69.7 billion (72.7 per cent of total Alberta exports)

United States - $83.0 billion

China - $3.7 billion

Japan - $2.0 billion

Mexico - $1.0 billion

January 2015

Slide 53

Source: Alberta International and Intergovernmental Relations,

Alberta’s trade strength

Alberta’s imports in 2012 ($27.4 billion)

• Mineral fuels, oil fuels etc. - $5.6 billion

• Machinery - $5.4 billion

• Iron/steel products - $2.2 billion

• Electrical machinery - $2.0 billion

United States - $18.0 billion

China - $2.8 billion

Mexico - $1.5 billion

Germany - $0.5 billion

Note: Imports are direct into Alberta and does not include imports going to another province before entering Alberta

January 2015

Slide 54

Source: Alberta Innovation and Advanced Education

Alberta projects

Alberta major projects summary (as at March 2015)

Sector # of projectsValue of all projects

($ millions)

Agriculture and Related 5 $384.8

Commercial / Retail 81 $9,441.2

Commercial / Retail and Residential 18 $4,016.0

Infrastructure 161 $9,838.6

Institutional 108 $6,484.1

Oil and Gas 12 $5,955.0

Oil Sands 47 $103,409.0

Other Sectors 14 $2,011.8

Pipelines 28 $20,986.2

Power 19 $11,592.8

Residential 112 $3,996.4

Tourism / Recreation 100 $4,218.6

Total 705 $182,334.5

January 2015

Slide 55

Source: Canadian Association of Petroleum Producers (CAPP)

Canadian oil sands and conventional oil production outlook

Oil and oil sands

January 2015

Slide 56

Source: Canadian Association of Petroleum Producers (CAPP)

Western Canadian oil sands and conventional oil production outlook

Oil sands in Western Canada

January 2015

Slide 57

Contact us

[email protected]

403-221-7831

www.calgaryeconomicdevelopment.com

Connect with us: @calgaryeconomic LinkedIn

http://www.calgaryeconomicdevelopment.com/

https://twitter.com/calgaryeconomic

http://www.linkedin.com/company/calgary-economic-development?trk=hb_tab_compy_id_51493

Documents

Economy at a Glance Calgary's Advantages March 2015