Economic Development Strategy 2013 2017

WinnipegCity of

Economic Development Strategy | 2013-2017

Released September, 2012Updated December, 2013

Shaping the Future of Tomorrow

City of Winnipeg | Economic Development Strategy, 2013-2017 3

Message from the Mayor

The City of Winnipeg’s primary municipal planning document, OurWinnipeg, optimizes our community’s future growth and prosperity. Thanks to unprecedented stakeholder engagement, it features a provocative 25-year forecast of the ideas, hopes, and dreams of our citizens.

The City of Winnipeg appreciates that Economic Development Winnipeg has championed OurWinnipeg from the outset, particularly with respect to the opportunity it affords to enhance our city’s economic development potential. As a result of this focus, a subset strategy of OurWinnipeg was developed—called the City of Winnipeg Economic Development Strategy 2013 – 2018—via Economic Development Winnipeg’s Winnipeg Partnership Committee.

The City of Winnipeg Economic Development Strategy 2013 – 2018 is a collaborative effort that highlights multiple ways to enrich our city. This forward-looking document’s primary purpose is to serve as a comprehensive strategy that adds value to our long-term vision by:

• Executing actions stemming from key objectives set out in OurWinnipeg• Capitalizing on our community’s existing competitive strengths while forging new economic development

opportunities intended to support our growing economy• Monitoring efforts to adjust to ever-changing regional, national, and international socioeconomic dynamics

The five-year strategy makes compelling assertions that set Winnipeg’s course toward sustainable, equitable, and manageable economic growth. Our city is brimming with possibility and potential. This strategy celebrates the progress Winnipeg continues to make and provides a definitive direction for the future.

I extend my sincere gratitude to Economic Development Winnipeg for leading the development of this exemplary initiative. I ask all of our partners to commit—whether through endorsement, support, or resources—to the goals and objectives outlined within.

Only by working together can we fully benefit from the economic success that will surely result when these strategies are effectively implemented.

Yours sincerely,

Sam KatzMAYOR

4 City of Winnipeg | Economic Development Strategy, 2013-2017


Contents1 CONNECTEDNESS AND ECONOMIC DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 1.1 CONNECTING TO…ECONOMIC DEVELOPMENT OPPORTUNITIES . . . . . . . . . . . . . . . . 10 1.1.1 HUMAN CAPITAL AND TALENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.1.2 BUSINESSES AND INNOVATIVE INDUSTRIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1.1.3 EXTERNAL MARKETS AND PARTNERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.1.4 ECONOMIC DEVELOPMENT ECOSYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.1.5 GLOBAL INTELLECTUAL AND POLICY DISCOURSE . . . . . . . . . . . . . . . . . . . . . . . 14

2 WINNIPEG AND ECONOMIC DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 2.1 IMPORTANCE OF ECONOMIC DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2.2 WINNIPEG’S CONTEXT FOR ECONOMIC POLICY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2.2.1 KEY DEMOGRAPHIC CONTEXT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2.2.2 KEY ECONOMIC CONTEXT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 2.3 OURWINNIPEG - DIRECTING FUTURE GROWTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

3 STRATEGIC DIRECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 3.1 BUSINESS AND INDUSTRIAL OPPORTUNITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 3.1.1 BUSINESS COMMUNITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 3.1.2 PEOPLE AND COMMUNITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 3.1.3 ACADEMIC AND RESEARCH INSTITUTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 3.1.4 ABORIGINAL AND GOVERNMENT PARTNERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 3.1.5 STRATEGIC COMMUNITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 3.2 SOCIAL AND COMMUNITY DEVELOPMENT OPPORTUNITIES . . . . . . . . . . . . . . . . . . . . . 42 3.2.1 QUALITY OF LIFE AND COMPLETE COMMUNITIES . . . . . . . . . . . . . . . . . . . . . . . 42 3.2.2 LABOUR FORCE CAPABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 3.2.3 NEIGHBOURHOOD LEVEL INITIATIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3.3 EMERGING AND FUTURE OPPORTUNITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 3.3.1 NORTHERN AND RESOURCE DEVELOPMENT SUPPORT . . . . . . . . . . . . . . . . . . 46 3.3.2 INNOVATIVE INDUSTRY SECTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 3.3.2.1 ADVANCED MATERIALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 3.3.2.2 AGRI-FOOD AND NUTRACEUTICALS . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 3.3.2.3 BIOMATERIALS AND BIOPRODUCTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 3.3.2.4 INTERACTIVE AND DIGITAL MEDIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 3.3.2.5 ALTERNATIVE AND RENEWABLE ENERGY . . . . . . . . . . . . . . . . . . . . . . . 56 3.4 INSTITUTIONAL ANALYSIS AND DIRECTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 3.4.1 ORGANIZATIONAL CAPACITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 3.4.2 NEW DIRECTIONS FOR PARTNERSHIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

4 STRATEGIC GOALS AND ACTION PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63


1Communities are facing new challenges in economic and strategic planning, challenges that are fundamentally altering the tactics that communities are using as well as the goals and objectives that communities are aspiring to. Several broad trends have the potential to profoundly affect any community’s strategic plans, regardless of their unique economic situations. These include:

• The rise of knowledge industries and the need for new skill sets within the labour force, paired with the integration of information technologies into all aspects of the economy.

• The globalization of the economy and the need for more regional/community partnerships and collaborations to create structures and networks that more effectively compete for both talent and investment in a more connected world.

• The growing recognition that economic development comes from within (business retention and expansion, economic gardening, workforce development) and not without.

• The question of sustainability and the natural environment as an economic development concern, especially with regards to longer term strategic planning and the emergence of new opportunities (e.g. clean technology, renewable energy, biomaterials).

• The convergence of key economic sectors as a driver of local competitive advantage, building on the opportunities available in the areas between traditional sector-based economic and business development.

A number of theories have emerged to describe the new structure of the global economy and the strategies and approaches that should be taken to compete in a more global economy. In his 2005 work The World is Flat Thomas Friedman introduced the idea that the proliferation of cheap, ubiquitous telecommunications, paired with the liberalization of trade and lowering of economic barriers, has “flattened” the world to the extent that proximity and location are of little consequence to economic opportunity. The notion is one of equalized economic opportunity; the ability to move people, goods, and information more seamlessly than ever before, was giving rise to a new level of competition. Globalization 3.0, as Friedman notes, has offered new opportunities to innovative entrepreneurs (or desktop free-lancers) and start-ups to operate and compete on a more level playing field. Where the first and second waves of globalization (driven by governments and multinational corporations respectively) resulted in the off-shoring of low-cost and labour-intensive opportunities to emerging economies, the third-wave of globalization is offering new opportunities to anyone or any firm with the intellectual capital to engage in the economy. As a result, innovative individuals and firms in emerging economies like China and India

Connectedness and Economic Development


are increasingly competing for investment in sectors and supply chain activities much different than the lower cost and labour-intensive areas which were first outsourced to them. Freidman argues that geography is less of an economic advantage than being connected in a flat world. As long as a country or firm has the capabilities to connect with the global economy, in this case through information technology, proximity and location are of little concern to opportunity.

Barriers still exist (e.g. technology infrastructure, trade policies) that are working against the flattening of the world. Primarily, the flattened world disregards the fact that innovative capacity and intellectual capital, though improving in a number of developing and emerging economies, is still below that of many developed nations. Further, Harvard Business School Professor Pankaj Ghemawat noted in a 2007 article for Foreign Policy magazine1 that globalization has not quite emerged as the driving force it was widely considered to be at the time. Despite popular theories that note a globally connected world, an overwhelming portion of communication and trade was still local or regional in nature. Factors of distance, language, and geography still appeared to matter.

Ghemawat offered trade between Canada and the United States - the largest bilateral relationship of its kind in the world – as an example. Prior to the introduction of the North American Free Trade Agreement (NAFTA) in 1988, merchandise trade between Canadian provinces were estimated to be 20 times larger than trade with similarly sized and similarly distant US states – there was an inherent “home bias” to trade from Canadian provinces.2 Though NAFTA reduced barriers to merchandise trade, the ratio of domestic to US trade had been reduced to just 10 to one by the mid-1990s, with the ratio still hovering around five to one at present; the ratio for services is still several times higher as well3. Further, Ghemawat cited the decision of Tata Consultancy Services (TCS) - India’s largest software firm - to locate in Latin America, noting that the difference in time zones and languages, and the need to be close to the local operations of clients, as the driving force for the firm’s location decision, rather than ease of connectivity or workforce skills. Though globalization is an economic reality and international trade flows will make up an increasing amount of global economic opportunity, domestic trade, geographic proximity, and quality of life still play significant roles in determining economic prosperity.

One of the more popular theories contrasting a flattened world is one of a ‘spiky” world. Originally published in 2005, and continued in the 2008 work Who’s Your City? Richard Florida notes that despite the “flattening” effects of technology and globalization, there is still a geographic clustering of the globalized economy. Increasing concentrations of higher level activities such as innovation, design, and finance, paired with concentrations of innovative and creative people, are creating spikes of economic creativity in a relatively small number of locations. This echoes the theories of Harvard’s Michael Porter, which note that economic activities cluster where resources are at their thickest – where infrastructure, supply chains, and institutions converge to offer competitive advantages that can be leveraged into an economic cluster (e.g. Silicon Valley).

Businesses and countries may be getting more connected to the global economy, but they are not necessarily connecting with businesses and markets well outside of their regional areas. In other words, if the world is flattening, it appears only to be doing so on a more regional scale, and beyond that, in areas where deliberate attempts are being made to facilitate connections (e.g. free trade agreements, international economic partnerships). Taking the notion of regionalism a step further, Florida suggests that it is agglomerations of spiky areas that will compete most successfully on the global scale. These agglomerations or “megaregions” connect the spikes of innovation and economic activity, as well as the ‘valleys’ between them into new region-states that often span political boundaries and form the new organizing economic units through which areas will compete.

The most recent work by Richard Florida, The Great Reset explains the new realities in which cities and megaregions will compete with each other for people and business investment, especially in the dramatically restructured global economy that has emerged from the latest economic downturn. Florida suggests that after

1 Ghemawat, P. (2001, March 1). Why the World Isn’t Flat. Foreign Policy. 2 Ibid.3 Ibid.


each historical economic downturn, there has been an economic “reset” that changed the way people lived and worked, and shaped the geographic and economic distribution of cities and regions. The “new normal” that has emerged as a result of the most recent economic downturn will reflect:

• New attitudes towards consumption and ownership, especially for big-ticket items like houses and cars.

• The transition of millions of service jobs into middle-class careers that utilize the creative and innovative talents of those workers.

• New and different types of infrastructure for moving goods, people, and ideas at a faster pace.

• A very different and much denser economic landscape organized into “megaregions” that drive the development of new industries, jobs, and quality of life.

One of the key elements of success within these megaregions under the new normal is the ability to move people and goods – the tangible bits of the real world – at a similar rate with the flow of electronic information through the virtual world, again giving importance to proximity, location, and geography. Alternative modes of transportation and traditional infrastructure, from intra-regional high-speed rail to regional heavy or light rail are primarily seen as the ways to connect and drive development within the larger region. Mixed-use intensification and community building efforts support that development and create the economic spikes that encourage the highest levels of innovation and attract the most skilled new residents.

Overall, the notion is that areas that are more efficiently connected to the major city-centres will have the highest concentrations of jobs, people, innovation, and commercial activity will be best positioned for economic prosperity as the new economy progresses. This includes physical connections like infrastructure, but also economic connections like trade. If more regional economic units are to be the primary geographies of both international competitiveness and economic development opportunity, physical and virtual connectivity within the region needs to be the primary pursuit.

With that said, conflicting visions have emerged to direct how best to compete in a globally-oriented world where the unit of competitiveness is changing from the individual community or firm, to larger agglomerations of communities (megaregions) or companies (supply or value chains). In a 2008 work, Victor and William Fung (of Li & Fung Limited) and Jerry Wind released Competing in a Flat World, in order to provide a perspective on succeeding in a world where opportunities for global collaboration are increasingly available. Based in Hong Kong, Li & Fung produces consumer goods for the world’s top brands and retailers, totaling approximately $20 billion per year; all without owning a single factory. Instead Li & Fung operates on the principles of network orchestration, managing a network of companies from product design, raw material sourcing, and production management to quality control, logistics, and shipping. Instead of creating the products Li & Fung orchestrates a network (or supply chain) of companies to create and distribute products, based on the specific needs of customers they serve.

The authors suggest that in a global world, success matters less about what a company can do itself, but rather the capabilities it can connect to, or the networks and supply chains it can create and manage. In this sense, it is less about specific companies competing against one another, and more about networks competing with other networks. The networks that can derive the most efficiency are best positioned in this type of competitive environment. In this sense, the emerging role of the economic development professional is that of a “competence aggregator,” identifying sources of competitiveness in the local economy, and connecting those to external partners and opportunities. Competence aggregation is a major focus in the work of Michael Malone, a Silicon Valley-based tech sector analyst, and emerges from his book The Future Arrived Yesterday.

While speaking largely to opportunities for businesses focused on global trade and global supply chains, the findings of this work have implications for cities and nations as well. The capabilities that the city, region, or


country can connect to matter just as much as the capabilities that a city, region, or country has. While it is critical that communities and regions define a specialization or position in the supply chain, the ability to connect to that supply chain, or allow businesses in the community to participate in and connect to these larger networks, is of critical importance.

The aerotropolis concept builds on the notion of connecting and creating more global networks. Developed by John Kasarda, the aerotropolis responds to the opportunities of a more globally-oriented economy with an increased emphasis on global connectivity – namely through the airport. Kasarda argues that the ubiquity of air travel and freight has driven globalization (in contrast to Freidman’s suggestion that information technology played the strongest role). When paired with 24-hour workdays, overnight shipping, and global business networks and supply chains, it is critical that a city forge stronger connections with its major global infrastructure to access new areas of global opportunity. From that perspective, air travel and goods movement offers the strongest potential to drive economic development opportunity; to move the tangible bits of the real world (people and goods) at speeds approaching the movement of information and capital that flows freely in a global economy.

The aerotropolis mandates agility, efficiency, speed, and connectivity above all else. As such, development within the concept is geared to the needs and requirements of the local business community and the travel and goods movement industry. A number of communities exemplify this type of development – Louisville and Memphis represent two larger-scale examples, with business parks and transportation infrastructure evolving around their airports to specifically support the activities of UPS and FedEx respectively.

However, the aerotropolis concept offers opportunity for more than just a sprawling sea of logistics companies and distribution centres. It has the potential to anchor and attract more technology and knowledge intensive areas of the economy as well. Areas like the Dulles Greenway (i.e. the privately-owned toll road between Dulles International Airport and Leesburg, Virginia) have attracted regional and head-office concentrations beyond the city centre, in sectors like research and development, life sciences, financial services, or professional and scientific services. Such “corridor” concepts have been embraced by officials with the Winnipeg Airports Authority, and are the central focus of the Government of Canada’s recently released National Policy Framework for Strategic Gateways and Trade Corridors. The need to access a more global client base plays a key role in this growing trend. Residential, hospitality/convention, and retail commercial development make up the aerotropolis vision as well, driving it towards the definition of a complete community – albeit one with an airport making up its city centre in the place of a traditional central business district.

Cities in more developed economies face a challenge in implementing the idea. Greg Lindsey argues in Aerotropolis: The Way We’ll Live Next that most North American airports (and perhaps airports throughout the western world) were constructed before their potential as drivers for economic development were fully understood or envisioned. Airports like Los Angeles International and London Heathrow Airport are now restricted by surrounding land uses and constrained from growing any further. Retrofitting city form to implement the aerotropolis concept is a costly venture. A number of countries through Asia and Africa have embraced the concept as a means of constructing cities from the ground up, with the intention of competing more freely in a flattened world. Cities like New Songdo in Korea and Masdar City in the United Arab Emirates are springing up from the ground with the sole purpose of connecting to the global economy, while cities like Dubai continue to implement pieces of the concept (e.g. free trade zones, dedicated expressways). Unlike the utopian master planned cities of the past these cities are intended to be economic engines and tools for competing in a global economy; their design reflects this utility in many ways.

Though reliant on the continued expansion of globalization and the uninterrupted expansion of air travel and air freight, the aerotropolis concept presents interesting prospects for communities in a changing global economy. If a city or region is efficiently connected to more global networks through the air, it effectively expands its economic region or supply chain opportunities to all corners of the globe. A number of rapidly growing economies in Asia, Africa, and Latin America seem to have embraced the idea despite the uncertainties


surrounding it. When considering that sources of competition and collaboration are increasingly global, it suggests that communities should undertake projects to support their physical connections to the rest of the globe. The aerotropolis mandates the creation of infrastructure and city form that services this need, in the most efficient and effective way. While communities may not be able to start this from scratch, the aerotropolis model provides an example of the extent to which transportation networks and connections can influence city form, economic development, and the broader prospects of the community.

The central theme running through the literature is connectedness, as a means of generating economic development. Whether international or domestic, physical or virtual, the connections a community creates, encourages, and maintains can play a key role in economic development opportunity. As such, communities must make concerted efforts on each of these fronts. However, the question remains – if connectedness is critical in contemporary economic development, what should communities and regions connect to?

1 .1 CONNECTING TO…ECONOMIC DEVELOPMENT OPPORTUNITIES

Even with countering perceptions on the movement of capital and people in the global economy, there is no question that the prospects of countries around the globe are increasingly interrelated. The most recent recession, and the ongoing effects resonating across the globe (e.g. debt, depressed consumer demand, volatile demand for resources) continue to illustrate that whether or not a community is engaged in the global economy, larger trends can have significant and lasting effects on economic development prospects. As such, communities and regions need to take stock of their position within the global economy and undertake deliberate actions and tactics that can both allow the region to fully leverage the opportunities associated with global connectivity and insulate and prepare the region to respond to challenges within the new normal of economic conditions. As a result, there are a number of connections which should be made to encourage economic development opportunity.

1 .1 .1 HUMAN CAPITAL AND TALENT

Factors like globalization and the rise of service-based employment have placed a new emphasis on human capital, particularly in the developed world. Business location decisions are in part related to the business case factors of a location – costs, taxation, availability of resources, or proximity to raw materials. Indeed, these locational factors led to the emergence of regions across North America focused on goods production, particularly in the Great Lakes region of the US and Canada. Past economic development theories noted that once employers were attracted to a location, employees and population growth would follow. However, with the outsourcing of labour-intensive and lower-skill production activities to lower cost destinations (as the world flattened) and the emergence of more knowledge-based and professional services, those theories have been reversed. With knowledge and talent now one of the primary resources used in the production of goods and services, businesses are increasingly looking to destinations which offer the best match of professional and technical skills to drive their competitiveness. In the developing world, as previous lower-cost destinations continue to move up the industrial value chain, the contrary is increasingly true as well – business follows the talent it needs.

As a result, the competition for talent is increasingly played out on a global scale. Aging population and slower natural growth across parts of North America and Europe exacerbate the problem, as businesses and communities search for new ways to replenish and grow their labour pools. Immigration represents a significant means of accessing the necessary human capital to excel. As such, nations and communities are developing aggressive and innovative campaigns to connect with the labour they require in an effort to attract them at the national and community level. With that said, it is important that communities and regions not lose sight of more


internal competitors – metropolitan areas and agglomerations within the same jurisdiction which can compete for the same talent. A number of communities in Canada, such as the city of Calgary, have developed specific programs focused on attracting skilled workers from elsewhere in Canada and Alberta, in order to continue the development of more knowledge-based industries in the city.

Whether competition is global or domestic, the most successful regions with regards to talent attraction (and subsequently retention) are those that can offer a diverse and vibrant quality of life. They offer cultural heritage resources and amenities that appeal to a broad range of demographic groups, such as a vibrant nightlife and entertainment sector, but also arts and cultural industries that respond to more intellectual pursuits. They respect natural and built heritage features of the environment as a feature of recreational opportunities and long-term environmental and economic sustainability. They provide health care, social, and educational services that are accessible to everyone in the community. They provide the basic infrastructure (e.g. transit and transportation, affordable/diverse housing stock) to protect public health, while servicing the needs of the entire population.

The most successful communities provide high quality of life to attract and retain new residents, but they also fully leverage and support the population they are presently home to. Though most experts expect that immigration will be needed to fully support economic development opportunities in Canada over the medium-term, most communities have a largely untapped resource represented by their existing working age population – unemployed or underemployed labour force and those that lack the skill or social/economic support to engage in the active labour pool. The problems are particularly acute in Canada for new immigrants and Aboriginals; both of which typically experience higher unemployment rates and lower participation rates than the total population. However, the discussion of labour force engagement can extend further to those with disabilities, youth, or the elderly population, each of which can experience similar marginalization within the labour force. Thus it is critical that while a community look outside of its borders to support the growth of the labour pool, it must also look within its borders to provide greater opportunity for social and economic prosperity in its own population.

This highlights the need for connections to human capital. Communities must look to connect with the skilled international and domestic labour they require to encourage economic development, both the attraction of new industries and the expansion of existing industries. In connecting with potential new migrants, communities gain a better understanding of the quality of life features that those individuals value in their community. The need also extends into the local population and available human capital. Communities must forge connections to understand the factors that will keep skilled workers in the community. They must also gain a better understanding of the measures and tactics they can take to support the development of the local workforce, particularly for those demographic groups that are underrepresented.

1 .1 .2 BUSINESSES AND INNOVATIVE INDUSTRIES

The existing businesses in a community can be a significant source of economic development opportunity, through the generation of new employment, attraction of new investment, and development of opportunities in new areas of convergence between existing sectors and supply chains. The majority of new employment growth in North America is generated by business expansion (Figure 1). In other words, the majority of new employment growth in a community is generally driven by the businesses within the community rather than investments from outside of the community or through new business ventures. As such, the existing business community in a region represents a key stakeholder and driver of economic development potential, particularly as it relates to the creation of high-value employment opportunities.


Figure 1: Sources of Employment Growth, North America

15%

76%

9%

Investment Attraction Existing Business Expansion New Entrepreneurs

Source: Blane Canada, 2009

The existing business community also offers opportunity to attract ‘new’ investments, and expand trade with new markets. The globalization of the economy has led to the emergence of large and integrated multinational firms, with activities dispersed across the globe. Connections to head office or branch operations located in a community can act as a driver for the attraction of new foreign investment. For example, the expansion/addition of research and development operations to sales/service operations might be a likely corporate expansion given its existing footprint in the community, should that community offer the appropriate labour force and infrastructure to support that investment. By creating and maintaining connections and relationships with these companies, communities may benefit from new activity. They may also be able to generate greater profile for the community in international markets, identifying strengths of the community to larger players that may not otherwise be aware of its assets.

Similar to the efforts of network orchestrators like Li & Fung, suppliers and businesses from across the globe can be mobilized into ad-hoc supply chains and networks focused on delivering innovative products and services. As such, promoting the connection of the local and regional business community to a more global network of companies with the appropriate enabling infrastructure (e.g. high bandwidth broadband, connected international ports, and reliable transportation infrastructure), as suppliers or customers, should be a priority for communities.

Communities can benefit from connections with smaller companies as well; particularly agile and entrepreneurial companies that import and export products and services. In many cases, the immigrant population of a community is a strong source of these outwardly focused and successful companies. Though the company may be based in the specific jurisdiction, it may have strong connections to foreign markets based on supplier or customer relationships, or personal relationships that can be leveraged to create new opportunities in those foreign markets. As well, these business leaders can function as informal ambassadors for the community in their activity with foreign markets.

The existing business community in a region can provide inroads into innovative new areas of activity, at the convergence of supply chains and primary areas of activity. Most communities will have several business sectors where there is evidence of a concentration of business activities and opportunities. These are often referred to as areas of local competitive advantage and form the basis of strategic targeting exercises in economic development activity. However, as noted above, the challenge lies in a community’s ability to differentiate itself from other communities with similarly identified business sectors. What a community’s value proposition should seek to do is to differentiate the community by identifying aspects or facets of its clusters that are unique or even


rare. The solution to this challenge lies in understanding the interactions between a community’s sector-based clusters. Many communities have a strong advanced manufacturing sector. Many have a strong agricultural sector. However, far fewer have strength in both. From this perspective, each time an additional cluster is identified, the community’s value proposition to a certain segment of potential investors in strengthened.

This approach to the value proposition allows communities to identify those specific areas of strength that are complimentary to each other, and thus identify the point or points at which the community has a regional, national or global competitive advantage. These advantages may then form a key part of the larger value proposition that may be used to lure or attract external investment to the community, or to anchor increased internal investment. At a practical level, this approach suggests that a community must maintain strong connections with its business community to identify opportunities for convergence, but also encourage the connectivity among the business community that will enable firms in different sectors to collaborate and engage in new and innovative areas of the economy.

From an employment generation and investment attraction perspective, connections to the local business community can play a significant role in economic development prospects. As such, communities must implement and develop sophisticated tools to build relationships with their local business community, such as business retention and expansion tools or corporate visitations. In doing so, a community can forge stronger connections, proactively gather information about barriers preventing further business expansion or investment, proactively identify opportunities to support or encourage investment and industry convergence, facilitate the convergence of supply chains focused in innovative sectors, and engage with and identify high-value small businesses and entrepreneurs that can assist with driving economic development in a community. Connectivity among the business community is also critical, as a means of creating new supply chain relationships and building economic development prospects within the areas of convergence between strong economic sectors.

1 .1 .3 EXTERNAL MARKETS AND PARTNERS

External markets and partners can play a significant role in the economic development of a community, whether domestic or international. Domestic markets and partners offer benefits in the form of more regional value propositions (e.g. neighbouring communities with complementary strengths) or regional value chains and supplier/customer relationships. Those same benefits though, provided the infrastructure exists to connect the markets, can be accrued from international markets and partners as well.

Much of the globalization of the economy has been through deliberate attempts to facilitate global collaboration, such as national-level policies to encourage production or liberalized trade regulations between different jurisdictions. As a result, nations and communities are increasingly looking to more deliberately connect with markets and jurisdictions from across the globe to create more opportunities for local economic development. This can include increased levels of trade or the exchange of best practices, especially in areas that are mutually beneficial to both communities. Connections based on mutual sectors of interest (e.g. clean technology, renewable energy, advanced manufacturing) could encourage supply chain relationships, technology transfer arrangements, investments, or collaboration/joint ventures. Communities may also seek out partnerships that offer opportunities to exchange mutually beneficial information on specific topics, such as support for small business and entrepreneurship.

On a more regional scale, networked agglomerations of spiky centres are considered a new geographic unit of economic competitiveness. In many cases, these networks can span political boundaries or encompass communities and areas that were previously disconnected and may have even perceived one another as competitors. These spiky centres have the density of talent and infrastructure that allows individuals and companies to overcome the bumps and ‘mountains’ which dot a flattened world (e.g. regulations) and pose ongoing challenges to a truly connected global economy. The agglomeration of these centres into economic


regions or megaregions requires new and facilitative approaches to better leverage opportunities in a globalized economy. This includes: land use policies that promote high density and diverse urban areas that promote connectivity within the city centre, transportation and communications infrastructure that allow for the movement of people, goods, and ideas throughout the economic region, and cooperation and collaboration between the diverse public, private, and not-for-profit organizations and agencies focused on community and economic development. While this is primarily centred on more urban areas, it also applies to resource-intensive areas and their major service centres, or the ‘valleys’ between the ‘spikes’ (e.g. Edmonton/Capital Region and Fort McMurray/Wood Buffalo in oil and gas, or Winnipeg/Capital Region and Northwestern Ontario in mining and resource extraction).

Friedman suggests that virtual connections play a key role in more global collaboration and opportunity. As a result, virtual connections and information technology play a key role in the connectedness of a community, particularly its ability to support economic development opportunities for local entrepreneurs and business in the global economy. But as Florida, Porter, and Ghemawat note, proximity still matters, and physical distance has a relationship with economic opportunity. As such, communities need to make their physical connectedness – passenger and freight through air, land, and sea – a priority to fully leverage economic opportunity and the opportunity to connect with new markets and partners.

1 .1 .4 ECONOMIC DEVELOPMENT ECOSYSTEM

Economic development has shifted its focus over the last several decades. In North America, much of the activity that once focused solely on investment attraction and the pursuit of the next smokestack, has shifted to a more holistic view of economic development that focuses on talent attraction and retention, workforce development, environmental and fiscal sustainability, community revitalization, small business and entrepreneurial support, and innovation. Where economic development agencies were largely able to work in separate silos, the more holistic view of economic development requires economic development leaders in the community to maintain closer connections with a broader range of organizations. The lead economic development agency in the community must create an ecosystem of economic development support organizations that have mandates to engage in specific areas of economic development planning and service delivery given the broader range of issues and challenges that must be faced to support economic development. This includes large institutions (e.g. colleges and universities, other levels of government), but also the small grass-roots organizations that have found ways to mobilize stakeholders and create more unified influence on public discourse through new social media and communications tools.

It is less a question of scale and more a question of connectedness. A community may have a significant number of institutions and organizations working on economic development, with sophisticated and well-resourced plans being implemented in all areas of economic development interest. However, if these efforts are undertaken in disconnected silos, the community is missing the opportunity to fully leverage the strengths of these organizations based on their density – pooling of resources or leveraging of expertise in specific areas, for example. A critical component though, is to present a unified vision for the community that the broad range of organizations in the community agree on, in which stakeholders can see a role and benefits for their organization. The development of such a plan, and the subsequent implementation of the plan, requires ongoing connection of the range of stakeholders and organizations that combine to make up the ecosystem. It is critical that the ecosystem have a strong leader to maintain that connectedness.


1 .1 .5 GLOBAL INTELLECTUAL AND POLICY DISCOURSE

The great global cities position themselves as critical components of the global economic, political, cultural, and social landscape. When thinking about centres of finance, culture, and politics, cities like New York, Hong Kong, Paris, London, Washington, and Beijing emerge with first-name familiarity across the globe. While these cities compete on a different scale than most of the other major urban areas across the globe, there are lessons to be applied in the importance of, and opportunity around, engaging more fully in intellectual and policy-based discussions of global importance, such as environmental sustainability, human rights, or financial stability.

Connectedness with the global discourse in these broader issues of importance provides a community with stronger profile on a broader scale. The world’s second- and third-tier urban areas are unable to compete with the more global cities, but the ability to position the community within these broader discussions offers the potential to more fully differentiate a community from those it does compete with. Further, it provides the city with the opportunity to derive benefits from these broader activities, such as research investment and innovation, tourist visitation, or business development opportunities. In positioning itself and creating greater global connections, it is critical that the community build on its existing strengths in order to create a profile that it can actually deliver on and derive benefits from. This requires a strong connection between the community’s assets in this regard (e.g. international/national cultural heritage amenities, national/international research and academic institutes, or international/national government and non-governmental agencies).



22 .1 IMPORTANCE OF ECONOMIC DEVELOPMENT

Business development and employment growth does not necessarily offer the same number or quality of benefits in terms of community prosperity, high-quality employment, productivity, or social equity. Economic development theory categorizes employment as either basic or non-basic, based on its relationship with the local economy. Basic employment primarily includes uses servicing non-local and/or non-retail markets. This type of development generally falls within sectors from manufacturing and transportation to financial services and information technology. Non-basic employment is largely population-related, or focused on servicing the needs of the local population. In other words, it largely emerges as a result of the continued growth of the population in an area, rather than as a result of critical business case advantages or local workforce capabilities. Sectors that are predominantly non-basic include retail, personal services, and institutional uses (e.g. health care, education, or public administration).

Export-oriented employment is the target of most communities. Maintaining an adequate base of export-oriented employment provides high quality employment opportunities to local residents, as well as economic multiplier or spin-off effects throughout the rest of the economy, leading to the potential for greater re-investment of wealth generated outside of the community into the development of the local and regional economy.

Land use policy and economic development activities are important because they can direct and encourage export-oriented employment growth. Thus from an economic development perspective, maintaining an adequate base of infill and greenfield spaces that can accommodate export-oriented investment is fundamental to providing opportunities for the local development of export-oriented businesses, which have the highest potential impacts on the rest of the economy. However, targeting these high-value employment uses requires careful oversight from a growth management and economic development strategic planning perspective.

A municipality should have the mechanisms to regulate development in an orderly fashion, but also to maintain the marketability and competitiveness of its developable lands and spaces for a full range of developments that produce positive economic, social, and environmental impacts.

Another primary challenge for municipalities is related to the lack of access to tax revenues that respond to growth and the pressures to minimize the tax burden on local businesses and residents to finance required infrastructure. Local governments and municipalities primarily collect revenues from real and personal property

Winnipeg and Economic Development


taxes. While these revenues respond to economic growth, the effects are more indirect – based on investment in property instead of increased production or sales.

What underlies this finding for municipalities is the importance of maximizing the sources of revenue available. If property taxes are the primary source of revenues for the municipality, then the types of development that yield the most positive fiscal benefits for a municipality should be the target for development. Further, if a municipality does not have the mechanisms in place to offset growth-related infrastructure with levies and charges on development, the pressure on property taxes, and thus the citizens of the community becomes greater.

Most studies concerned with this subject have found there are certain types of development that generally pose a positive fiscal impact on municipalities and school districts, such as research parks, general office parks, industrial development and some types of residential development (e.g. high-rise garden apartments, age-restricted housing, and 1-2 bedroom condominiums)4. Others, such as retail, 1-2 bedroom townhouses, and 3-4 bedroom executive homes have shown a negative fiscal impact on municipalities, but a positive impact on school systems in studies over the longer term5. A number of smaller and inexpensive residential uses (e.g. 3-4 bedroom townhouses) have generally been shown to create negative fiscal impacts for municipalities and school systems. A number of completed projects illustrate the differences in fiscal impact across land use categories:

• A model utilizing the growth projections of Regional Official Plan Amendment No. 38 in Halton Region, Ontario, suggested industrial development was forecasted to have an annual net positive fiscal impact of $691 per 1,000 sq. ft. of development. Commercial and institutional developments were forecasted to have negative net annual impacts per 1,000 sq. ft. of development of $536 and $2,068 respectively, while single-detached residential units were forecasted to have a negative net annual impact of $1,0446.

• A fiscal impact analysis of new development in Dublin, Ohio concluded that positive net annual impacts (per 1,000 sq. ft.) were generated by office development ($2,666), industrial development ($452), and R&D-related developments ($2,940), while retail developments generated an annual net fiscal deficit of $1,869 per 1,000 sq. ft. All types of examined residential development generated net annual deficits between $803 (multi-family rental) and $1,713 (single family-detached) per unit7.

• A model developed for Milwaukee, Wisconsin to assess the annual fiscal impact of the development/redevelopment of a specific industrial site found that industrial redevelopment would have a positive annual impact of $1,200 while new industrial and new office development would have positive net annual impacts of $21,600 and $26,600 respectively. Contrary to many other studies, single-family residential and retail developments provided positive net fiscal benefits as well ($40,400 and $9,900 respectively), but the study concluded that the economic spin-offs from wage, employment, and production in industrial sectors produced the need for careful and diligent consideration of conversion to non-employment uses8.

• A model developed for the Airport Employment Growth District in Hamilton, Ontario suggested that industrial, commercial, and institutional development will produce annual operating surpluses of $3,011, $2,393, and $853 respectively. At full build-out in 2031 (an expansion of a proposed 24,360 employees), non-residential development is expected to have produced a total positive impact of $66 million on the city’s property taxes9.

The data is presented to emphasize an important concept. Not all types of urban growth benefit a community

4 Burchell, R.W. and Listokin, D. (1992). Fiscal Impact Procedures – State of the Art: The Subset Questions of Non-residential and Open Space Costs. 5 Ibid.6 Watson & Associates Economists Ltd. (2011). Investment Readiness and Competitiveness Study.7 TischlerBise. (2007). Cost of Land uses Fiscal Impact Analysis.8 S.B. Friedman & Company. (2004). Milwaukee’s Industrial Land Base: An Analysis of Demand and a Strategy for Future Develop-ment.9 Dillon Consulting and Watson & Associates Economists Ltd. (2010). City of Hamilton Airport Employment Growth District – Phase 2.

Financial/Economic Impact Analysis and Marketing Strategy.


in the same fashion. Even though each land use may provide an important social, environmental, or cultural function to the community, it may also weigh heavily on the financial and social resources of the community to maintain its function. Generally speaking, industrial development and growth pays for itself in a way that some types of commercial, residential, and institutional development is unable to. The economic benefits and fiscal contributions to the community from industrial development generally out-weigh the costs associated with ongoing services to the development. For targeted types of higher-density commercial office, research, and residential development, this is also the case. In addition to paying for the costs of servicing and development, the net revenues generated from these types of development go toward supporting other types of development, new infrastructure, and expanded services in the community that have a direct contribution to quality of life.

Economic development plays a key role in generating these benefits. Targeted economic development strategic planning sets in place the actions and tactics that the community can undertake to pursue the types of employment and development that offer the strongest economic, social, and environmental impacts for the community. This is especially true for sectors where a community is only just emerging, where support for the development of employment opportunities and investment requires intervention from public agencies to encourage that development, such as with the CentrePort Canada business park and its transformation into a major multi-modal logistics hub. The key aspect is connectivity. In many cases, Municipal Development Plans (MDP) like OurWinnipeg contain the social, economic, and environmental goals for a municipality over the long-term. The economic development players in the community must then devise the strategies and tactics to attract, retain, and encourage investment and development that offers the highest form of benefits in those three areas, for local and regional residents, for the local and regional business community, and for local and regional government.

2 .2 WINNIPEG’S CONTEXT FOR ECONOMIC POLICY

2 .2 .1 KEY DEMOGRAPHIC CONTEXT

OurWinnipeg highlighted a number of demographic and economic trends that have strong influence over the growth of the city over the next 20 years. With regards to the city’s population in 2006, the MDP highlights the following factors:

• 10.8% speak French.

• 4.5% speak Tagalog.

• 94.9% actively participate in the labour force.

• 20.4% walk or take transit to work.

• 11.2% are of Aboriginal ancestry.

• 16.3% are a visible minority.

• 18.7% immigrated from another country.

• 65.1% are homeowners.

• An average age of 38.7 years.

OurWinnipeg sets the context for the MDP policies with a population that has grown considerably in the past and is forecasted to continue growing, while the cultural diversity of the population is expected to continue growing. The following factors highlight these trends further. From 1996 to 2011, the population of the Winnipeg CMA grew by 11.5% or just over 78,600 people, while the population is projected to continue growing by between 1.1 and 1.3% per year to 2016. By 2016 the population is projected to reach approximately 812,000 across the


CMA, with the population reaching 952,000 by 2031. Over the next 20 years, the Winnipeg metropolitan area is expected to accommodate an additional 189,400 people.

Figure 2: Actual and Projected Population Growth, Winnipeg CMA

600,000

650,000

700,000

750,000

800,000

850,000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

f20

13f

2014

f20

15f

2016

f

Source: Statistics Canada, CANSIM, table 051-0046, 2012, and Conference Board of Canada, 2012

Much of this growth is expected to be driven by migration, as new residents seek to settle in the Winnipeg area based on the relatively stable economic conditions. Throughout the 1990s, the city and metropolitan area experienced a net loss of migrants, as immigration slowed and the number of Winnipeggers leaving the metropolitan area outnumbered the population coming into the city. Since that time, net migration for the Winnipeg CMA has risen primarily on the basis on new international residents to the city and surrounding region (Figure 3). From 2000 to 2009, net migration rose from 799 to 8,838 across the metropolitan area, with international net migration growing from 2,799 in 2000 to 10,493 by the end of 2009. The Conference Board of Canada expects net migration to continue growing over the short term (after a recovery from 2009 to 2010), and to start leveling off in the next 10 years to stabilize at approximately 9,500 net migrants per year to 2031. Over the long term, net migration is expected to continue being driven by international migrants, with the level of interprovincial migration slowing further as the provincial economy continues to gain momentum (Figure 4).

Figure 3: Components of Net Migration, Actual, Winnipeg CMA

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-2,000

0

2,000

4,000

6,000

8,000

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Intraprovincial Interprovincial International

Source: Statistics Canada, CANSIM, table 111-0029, 2012


Figure 4: Components of Net Migration, Forecast, Winnipeg CMA

Source: City of Winnipeg, Conference Board of Canada, 2007

The continuing influx of new immigrants to the city and surrounding areas offers a number of opportunities for Winnipeg, not the least of which to counter the trends of an aging workforce. Statistics Canada estimates that all net labour force growth for the country will be as early as 2011, which underlies its importance as a critical factor for Canadian cities to focus on in order to augment the loss of labour force due to aging. The communities that can successfully attract and retain skilled immigrants are inherently better positioned to replace their aging workers and augment slower rates of population growth. As highlighted previously though, increasing levels of immigration to a community offer opportunities to connect with new markets through its new communities, and are a clear signal of the community’s vibrancy – both its attractiveness to newcomers and perhaps its openness to a wide range of cultural lifestyles and demands. Between 1996/1997 and 2010/2011, the number of new immigrants to the city and surrounding areas grew from 3,300 to more than 13,000. Despite a slowing of growth from the rapid rates in the early part of the last decade over the global recession in 2008 and 2009, the last several years have shown strong growth rates for new immigrant population in the CMA. The area continues to draw immigrants from rapidly growing international jurisdictions like the Philippines, India, and China, suggesting population-based connections back to these growing areas.

Figure 5: Immigrant Growth, Winnipeg CMA

0

2,000

4,000

6,000

8,000

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14,000

Source: Statistics Canada, CANSIM, table 051-0047, 2012


The Aboriginal population in Winnipeg, already one of the most concentrated of the major metropolitan areas in Canada, continues to grow as well. The population in Winnipeg identifying as Aboriginal grew by more than 20,000 people between 1996 and 2006; faster than the growth rates for the non-Aboriginal population during the same time period. In terms of demographic composition, the Aboriginal population in Winnipeg is also comparatively younger than the non-Aboriginal population, with a median age of 26 years old for the Aboriginal population and 40 years old for the non-Aboriginal population. Given that the Aboriginal population is rapidly growing and is comparatively younger, it is essential that the city look to provide equal opportunities in terms of education and employment to the population; as a means of improving social equity, accessing the creativity of the youthful and diverse population, and augmenting the loss of labour force due to aging.

Canada`s population is aging, and Winnipeg is not an exception. There is a larger proportion of Winnipeggers over the age of 65 than ever before, with that proportion projected to continue growing as the baby boomer generation continues to age (Figure 6). By 2031, the population aged 65 years and older is projected to reach 17.6%, where it presently sits at 13.6% for now. That accounts for an estimated population of over 150,000 people over the age of 65 by 2031. As a result, the city must make communities and neighbourhoods accessible to people of all ages, as well as adapt program delivery and workforce development efforts to respond to the challenges and opportunities posed by this major demographic shift.

Figure 6: Percentage of Population aged 65 and older, Winnipeg CMA

Source: City of Winnipeg, Conference Board of Canada, 2007

While the city and surrounding area continues to show positive signs of growth, there are themes that emerge as a result of the demographic context. Like the rest of Canada, Winnipeg faces an impending challenge with regards to the age and availability of its workforce, as the community’s population continues towards retirement age. Further, the city’s growing immigrant and Aboriginal population poses challenges with regards to accessing skills, and providing the supporting infrastructure that allows the fastest growing segments of the metropolitan area’s population to access economic and social opportunity. In many ways, the first challenge can be answered by the second; by providing a high quality of life that first attracts a diverse population, and second provides that population with the opportunities to create their own success and prosperity. In doing so, that community can begin to address the challenges posed by its aging workforce, and subsequent loss of human capital critical to attracting and retaining investment. Though true of the Aboriginal and immigrant population given their prominence in the local economy, those opportunities should extend to the entire population of the city and the surrounding area. A central theme to the strategy should be the development of equity in the new and existing population of the city and the surrounding area as a means of driving prosperity and productivity in the local economy.


The growing population also poses challenges and opportunities. As noted previously, densely populated spiky areas are emerging as drivers of the local economy. In order to ensure that Winnipeg benefits from the projected influx of new population to the city a more careful approach is needed to ensure that the community has the systems in place to benefit from the growth, such as the inter- and intra-city transportation and transit links to move goods and people and the urban structure to achieve environmental, fiscal, and social goals like utilization of existing infrastructure (including infill development) and high quality of place.

2 .2 .2 KEY ECONOMIC CONTEXT

Winnipeg’s economy has long been characterized as one of the more stable economies in Canada. Routinely the city and surrounding areas exhibit relatively stable performance in a number of economic indicators, often exceeding those of the rest of Canada. In many ways, the strength of Winnipeg’s economy is a result of its diversity. The city has notable strengths in 10 broad sectors, with key findings and context outlined in the following chart.

SECTOR KEY FINDINGS AND CONTEXT

Advanced Manufacturing

• The city’s largest industrial sector, at 11% of total GDP and 10% of total employment

• Particular sector-based concentrations in transportation equipment (especially ground and aerospace), food processing, machinery, furniture, printing, and fabricated metals

• Presence of global or national headquarter operations of major multinationals like Cargill Limited, New Flyer Inc., Ridley Inc., Winpak Limited, and Boeing Canada.

• Employment concentrations in occupations related to computer science, engineering, and machine operation.

• The city’s research and development assets point to emerging areas of opportunities in the sector such as value-added food and agricultural processing, and advanced materials (e.g. composites).

Aerospace

• Strong growth in employment, largely in the rapidly expanding areas of support for air transportation like aircraft testing, aircraft inspection, and airport operations, paired with strong growth in revenue from the city’s manufacturers and strong growth in research and production investment from larger companies.

• Strong profile of larger firms in the sector, which account for 10% of Canada’s aerospace parts and products companies with 500 or more employees.

• Unique resources to support aerospace sector development, including the Winnipeg Aircraft Engine Research and Technology Development Centre, the Composites Innovation Centre, and the Canadian Composites Manufacturing Research and Development consortium, paired with strong academic and research infrastructure at the University of Winnipeg and the University of Manitoba.


Agribusiness

• Annual revenue generation in excess of $100 million per year from the city’s manufacturers, with strong representation in the agri-food sector.

• Niche value propositions more specifically related to value-added pork products and processing, including an industry-led centre of excellence for bacon and value-added ham products. Smaller producers driving niche activity in hemp foods, gluten free snacks, and other specialty foods (e.g. Manitoba Harvest Hemp Foods and Oils, Stone Milled Specialty Grains)

• Low electricity rates and access to research and development credits bolster value chain.

Creative Industries

• Emerging strengths related to digital and interactive media, led by a strong export-oriented sector that has rebounded from the recession, particularly in the gaming segment.

• Strength in traditional areas of the cultural industries like performing arts and museums, making Winnipeg the cultural centre of the province and home to the majority of provincial-level assets in the sector.

• Academic programming at public and private institutions focused on the full range of subsectors in the creative industries, with particular emphasis on interactive media and design.

• Industry-led (e.g. Manitoba BOLD) programs focused on the development of the creative and cultural industries.

• Home of the Canadian Museum for Human Rights, an internationally-recognized and national level museum.

Energy and Environment

• More than 440 energy and environment companies in the city with specialties in environmental consulting and remediation, recycling, waste management, energy and minerals, bioproducts, and water treatment.

• Close connections to primary feedstocks have generated opportunities and industry activity related to biofuels, biomaterials, and biochemicals based on agricultural and forestry residues.

• Leading position in advanced materials research and commercial application through the Composites Innovation Centre, underlying the strength related to biomaterials and bioproducts.

• Home to Manitoba Hydro, one of Canada’s largest energy producers and a leading exporter of energy to the US. Manitoba Hydro provides programs related to micro- generation, which has supported the development of pilot programs in the city (e.g. McPhillips Common).

• Leading position in research related to electric vehicles based on the Electric Vehicle Road Map program, which is supported by industry-led research in ground transit applications.


Financial Services

• Heavily weighted towards insurance sector activities, which employ about 44% of the total labour force in the sector.

• One of the most cost-competitive jurisdictions in Canada for back office outsourcing and contact centres supported by an innovative IT community focused on sector-based solutions.

• Relatively resilient sector during most recent global recession, with full recovery to pre-recessionary employment and output forecast over the short- to medium-term.

Information, Communications and Technology (ICT)

• Cost-competitive North American position in the sector, including leading positions over Western Canada and the Western US.

• Strong growth in computer systems design employment which has contributed to 10% employment growth in the sector over the last five years.

• Profile of both small and large firms in innovative (interactive digital media, film production) and traditional (telecommunications) subsectors of the industry.

Life Sciences

• High concentrations of professional and technical employment in the life sciences, supported by engineers and engineering technologists and physical sciences professionals and technicians.

• Hub for Western Canada’s pharmaceutical and biopharmaceutical manufacturing operations and home to companies like Cangene Corporation, Valeant (formerly Biovail Corporation), and Apotex Fermentation.

• Strengths related to North American cost-competitiveness, especially in medical devices, pharmaceuticals, chemical manufacturing, and precision manufacturing.

• Strong research and policy foundation in life sciences, including: the Canadian Science Centre for Human and Animal Health, Canada’s only Level 4 biocontainment laboratory; The National Research Council; and the Public Health Agency of Canada.

• Connections with the area’s traditional strengths in biological feedstocks leading to development of functional foods and nutraceuticals, led by work at Richardson Centre for Functional Foods and Nutraceuticals (University of Manitoba Smartpark).

Tourism

• Strong profile of natural and cultural heritage assets, supported by year-round events.

• The Forks National Historic Site represents a significant asset, and driver of tourism for the city, and includes food services, retail, recreation (e.g. Arctic Glacier Winter Park), and accommodations supported by year-round and seasonal cultural and sporting events.

• National- and provincial-level cultural industries drive tourism expenditure in the city, with the Canadian Museum for Human Rights expected to generate increased international interest.

• Winnipeg is a centre of French and Métis cultural heritage for Western Canada.

• Spectator sports emerging as an important driver of tourism expenditure, with the return of the Winnipeg Jets driving visitation from across the Capital Region and the US/Canada.


Transportation and Distribution

• Winnipeg’s employment in the sector accounts for a 72% share of all transportation and distribution employment in the province, with the majority in the warehousing and storage subsector.

• Positioning at the junction of major east-west and north-south transportation routes, and home to a high-density of major rail and road infrastructure, including CN, CP, and BNSF infrastructure and concentration of tradespeople in rail services. Winnipeg is the only Canadian city with three trans-continental rail connections, and is the closest major city to the Port of Churchill.

• Cost advantages over other major transportation hubs in Western Canada/US.

• Home to Winnipeg James Armstrong Richardson International Airport – Canada’s busiest airport for scheduled freighter flights and the Western hub for CargoJet and Purolator.

• 20,000 acre CentrePort Canada development focused on becoming a major centre of international and domestic intermodal trade and processing of goods.

• Dedicated professional programming at the city’s post-secondary institutions, including the Canadian Institute of Traffic and Transportation (CITT) designation at the University of Manitoba, and the Certified International Trade Professional (CITP) diploma at Red River College.

As noted previously, this diversity has led to the development of a relatively stable and resilient economy. Over the last several years the metropolitan area has illustrated stable conditions through most economic indicators, placing it on par or better than the rest of the country in terms of economic performance. This is particularly the case through the most recent global recession which continues to resonate through the broader global economy.

Employment figures for the metropolitan area have generally been positive over the last decade, with employment growing by 11.9% from 2001 to 2011, and even showing moderate growth through the recession in 2008 and 2009. Over the next five years, employment is expected to continue growing by between 2.0 and 1.3 per cent each year, reaching 440,000 by 2016. As a result, the area is expected to continue enjoying lower unemployment rates than the national average, at between 5.6 and 5.2 to 2016.

Figure 7: Actual and Projected Employment Growth, Winnipeg CMA

250

300

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400

450

500

Tho

usan

ds

Source: Statistics Canada, CANSIM, table 282-0112, and Conference Board of Canada, 2012


Real gross domestic product shows a similar trend of moderate growth across the metropolitan area over the next several years. Like many other areas, Winnipeg’s growth slowed with the onset of the global recession in 2008, with a decline of 0.6% in GDP across the CMA from 2008 to 2009. Since that time, the metropolitan area’s economy has rebounded, posting moderate growth of 2.3% from 2009 to 2010 and 1.7% from 2010 to 201110.

Based on a slowly rebounding manufacturing sector, particularly from new orders in ground and aerospace manufacturing subsectors and increasing production in food processing and value-added agriculture, and continued growth of retail and wholesale trade, the CMA is expected to post real GDP growth in excess of 2% per year over the next five years11. Transportation and warehousing is expected to drive GDP growth in the CMA, with an average compound growth rate of 2.4% per year from 2013-201612. Growth of the CMA over the next five years is expected to be roughly equivalent to the levels of growth projected for the rest of the national economy.

Generally speaking, the rebound of many of the traditional industries in Winnipeg and Manitoba like agriculture and manufacturing will be a primary source of growth in the next several years. The stability of the broader economy is expected to underpin this growth. While there is stability, the key for the Winnipeg area will be to create new economic opportunity based on these strengths, while offering replacement opportunity to respond to slowing demand in others (e.g. non-residential construction). Connectedness, to international markets and regional markets beyond Winnipeg’s borders may be a key driver of prospects in this regard, particularly in niche areas of the economy (e.g. value-added agriculture and food processing, nutraceuticals, energy and environment, digital and interactive media, and biomaterials and biocomposites).

2.3 OURWINNIPEG - DIRECTING FUTURE GROWTH

OurWinnipeg was approved in 2011, as the new Municipal Development Plan for the City of Winnipeg. It represents the 25-year vision for the city, positioning Winnipeg for sustainable growth, which is key to the competitiveness of the city in an increasingly connected and networked global economy. The plan is built on three areas of focus, each with a critical role to play in Winnipeg’s future:

A CITY THAT WORKS

People will choose to live and work in communities where they feel they can prosper and enjoy a high quality of life. In many ways, cities play a key role in enabling those choices, through the quality of services provided by the City of Winnipeg. Hard infrastructure (e.g. water, sewers, and roads) matters at a basic level, as does the availability of a range of more intangible livability factors which influence an individual’s ability to live, work, and play in a community. The intent of OurWinnipeg is to encourage the development of these factors, but to understand that the most attractive places in the world are those communities that can effectively network these component parts into a system that works together efficiently, and sustainably. OurWinnipeg creates the framework that connects these factors and creates a network to support the development of the city.

A SUSTAINABLE CITY

Cities across the globe face new pressures with regards to sustainability. The growing urban population paired with the need to use and manage available resources in responsible ways has proven to be a driver for an increasing movement towards environmental sustainability. The most recent recession and pressures to respond to growing infrastructure deficits and service expansions with changing levels of resources has highlighted the

10 Conference Board of Canada. (2012). Metropolitan Outlook.11 Ibid.12 Conference Board of Canada. (2012). Metropolitan Outlook.


need to take into account financial sustainability as well. Under OurWinnipeg, sustainability is to become part of the way that the City does business. It is to be the foundation of new policies and programs. In doing so, the City of Winnipeg becomes a corporate role model for social, environmental, and economic sustainability.

QUALITY OF LIFE

In an economy where talent is the key input to more knowledge-based activities, and where the characteristics of the population in a community play a stronger role in business decisions to locate or stay in a community, the diverse profile of lifestyle or quality of life opportunities in a community takes on more prominence. Communities must address the full spectrum of factors that contribute to quality of life - the basics like water quality, public safety, wastewater treatment, and transportation infrastructure that can keep the entire population healthy, but also the factors that can support a wider range of lifestyles, such as a broad range of housing, active transportation options, and vibrant and diverse cultural amenities. OurWinnipeg takes a more focused approach to supporting important quality of life factors, by encouraging equitable access to opportunities, the creation and maintenance of vital and healthy neighbourhoods, and the development of a creative city based on vibrant arts and culture.

The plan is supported by four detailed Direction Strategies, each of which adds detail with regards to key planning areas for the City of Winnipeg outlined in OurWinnipeg:

• Complete Communities, which describes the physical characteristics of Winnipeg, and lays out a framework for the city`s future physical growth based on a new urban structure;

• Sustainable Water and Waste, which lays out a strategy to protect the natural environment and public health with regards to water supply, treatment, and distribution, wastewater collection and treatment, solid waste management, storm water management, and service extensions;

• A Sustainable Winnipeg, which functions as an integrated community sustainability strategy for the city to achieve the goals of becoming a more sustainable city; and,

• Sustainable Transportation, which provides the framework to integrate land use planning and transportation master planning, including the city`s various transportation components (vehicles, transit, active transportation, freight planning), to create a more sustainable transportation network for the city.

Figure 8: OUR WINNIPEG AND SUPPORTING STRATEGIES

Source: City of Winnipeg, OurWinnipeg, 2011

OurWinnipeg™

A CITY THAT WORKS

SUSTAINABLE WATER AND WASTE

A SUSTAINABLEWINNIPEG

SUSTAINABLETRANSPORTATION

COMPLETECOMMUNITIES

A SUSTAINABLE CITY QUALITY OF LIFE


Inherently, OurWinnipeg plays a key role in the prospects for economic development in the city, and across the greater Capital Region. The pillars of OurWinnipeg – effective networking of city systems, emphasis on sustainability and sustainable development, and creation of high quality of life – can equally be seen as the pillars of an effective economic development strategy. The economic development strategy must provide for the provision and planning of basic infrastructure and systems (e.g. roads, sewers, and water) that works effectively with other city systems (e.g. transit, land use planning, public works) to create the value proposition that can attract new business and community investment, as well as retain and support the city’s expansion of the city’s existing business community, allowing them to grow with the city.

Similarly, the economic development strategy must work within the larger sustainability aspirations of the city, and in particular its business community, to provide a framework for the implementation of action plans related to those aspirations. This includes, among other things, the design and engineering of new employment areas, development and redevelopment of commercial and industrial facilities, and the products and processes used by the local business community. Lastly, the economic development strategy builds on the framework for creating a high quality of life, and gives focus to the efforts as a means of attracting, developing, and retaining a highly skilled workforce to support business development, while also supporting the development of industries that contribute to and rely on quality of life, such as cultural industries and tourism.

OurWinnipeg and the associated strategies play a key role in focusing the actions and tactics that will be used in the economic development strategy for the city. As such, the economic development strategy plays a key role as an implementation plan for the OurWinnipeg plan – outlining the key policies that direct the City of Winnipeg and its economic development partners to work towards goals of connectivity, sustainability, and quality of life enhancements, as a means of driving the connectedness that will allow Winnipeg to excel in an economy that is fundamentally different than what existed in the past.



3The national, regional, and local economy continue to face rapid and significant structural changes, making it critical to develop a strategy to best position the community for success in an economy that is characterized as the new normal. New global trade linkages have emerged that offer new opportunities for communities and their export-oriented businesses. Disruptive technologies have flattened the world to an extent, and represent critical means of continuing to drive the productivity and innovation that allows more traditional industries to stay competitive. Financial and human capital is now highly mobile, raising the potential for the attraction of foreign investments and talent to a community, but also producing a new scale in which communities must compete for it. New economic powers have emerged as a result, and their continued development poses a challenge through competition at higher levels of the industrial value chain, but an opportunity to derive stronger connections with new markets and new sources of innovative technologies and capital. Finally, the workforce continues to restructure across the globe. Developed nations continue to place an emphasis on the development of a more knowledge-based and skilled workforce to replace employment lost to lower cost destinations over the last several decades, while developing and emerging economies continue to drive workforce development as a means of moving up the industrial value chain, and deriving more value from economic development opportunities afforded to them by a more global economy.

These and other global trends have created a new context in which Canadian communities and regions must compete, through adaptation and innovation. This demands a new approach to economic development, which gives communities the tools to more effectively operate within the changing global economy. Communities and regions have little control over the trends that are external to them, but effective economic development strategic planning serves as a critical component of more effectively benefitting from these trends, rather than risk suffering from them.

Economic development activity in Winnipeg has been characterized by high levels of success in a number of traditional industries. This economic diversity has provided the city with economic strength over the last several decades, and has generated activity in a number of more niche areas of the economy where sectors have converged, such as composites and advanced materials, agri-food and nutraceuticals, digital and interactive media, and renewable energy/clean technology. The city also benefits from a strong profile of organizations focused on economic and community development efforts in Winnipeg, with the city’s presence as the capital of the province offering direct access to higher levels of government and provincial/national level agencies and organizations. Further, the city’s geographic positioning along major North American and international transportation routes offers it opportunities to grow as a centre of transportation and logistics into the future, true to its past as a staging ground for the early development of Western Canada, and as an important trade route for the city’s first settlers; its Aboriginal people.

StrategicDirection


While these factors have driven, and will continue to drive the city’s economic development prospects, the changing global and national economies make it critical that the city chart a more defined course to achieve its goals of sustainability, efficiency, and liveability outlined through OurWinnipeg. The city maintains a strong profile of organizations that make up its economic development ecosystem, covering critical aspects like investment attraction, small business development, business retention and expansion, downtown revitalization, tourism promotion, and workforce development. However, the connectedness across the full ecosystem is often limited, especially with regards to relationships with higher levels of government and post-secondary institutions, and relationships among organizations that have complementary mandates or complementary goals.

The presence of a range of industrial sectors in the city and Capital Region offer strength in terms of economic diversity. However, the lack of depth in any one of these given sectors poses a problem for future economic development plans. The number of sectors can also seem counterproductive, suggesting a need to further refine these targets into a more manageable list of innovative and complementary areas; areas where the region’s industrial capabilities, educational assets, and supply chain strengths can converge to support further development and investment attraction. With limited human and financial resources available, the demands of the new economy necessitate careful and deliberate allocations of resources into the pursuit of certain key goals and targets. This does not mean that economic development staff and partners should become unresponsive, or that all activity unrelated to these strategic targets is abandoned. After all, in a changing economy, opportunity will come in many forms – some of them presently unknown. But certain areas of activity and effort are more likely to return positive results than others, and are more likely to create new economic opportunities than others. The purpose of this strategy is to highlight those targets so that informed, proactive decisions may be made about the allocation of time, effort and resources in the future.

Further, the city’s geographic positioning, transportation connections, and increasing diversity will offer new economic development opportunities related to trade, investment attraction, talent attraction, and value-added and knowledge-based employment and industrial opportunities. Major investments in the city like CentrePort Canada, and emerging areas of opportunity like the Port of Churchill/Arctic passage and proposed Ring of Fire developments in Northwestern Ontario should be considered now, even if they represent longer-term areas of opportunity.

In a sense, the new economic development strategy for the city is envisioned as a tool for moving beyond current and past successes, and beginning a process of envisioning what more the community and Capital Region may become. In part, this is an economic vision: it attempts to describe some of the specific and focused business and economic development opportunities that the community should embrace. But true economic development is something larger: it is not simply about financial flows, investment decisions and job creation. It is also about building a community where opportunity, access, and quality of life are available for the entire population, and individual citizens and residents have the freedom, space, and support to envision new goals, new objectives, and new accomplishments.

To reach these objectives, the City of Winnipeg and its economic development partners must connect to economic development opportunities in three specific areas, as illustrated in Figure 9 below.

Figure 9: Connecting to Economic Development Opportunities for Winnipeg

Winnipeg’s Economic Development Strategy

Business and Industrial

Opportunities

Social and Community

Development Opportunities

Emerging and Future

Opportunities


City of Winnipeg’s existing strategies

and activities (i.e. OurWinnipeg)

Key strategies and activities from

other organizations (i.e. WPC)

New strategies and activities from planning process

(i.e. connectedness)

1 . Connecting to Business and Industrial Opportunities – Building on the existing strengths in economic development service delivery, this area focuses on options for reorganizing, expanding, or adding incremental changes to the current service delivery landscape in Winnipeg, in order to create a more holistic view of what economic development means in Winnipeg.

2 . Connecting to Social and Community Development Opportunities – With a more holistic view of the range of activities included in traditional business development activity, comes the need to focus more fully on socially progressive ideas as it relates to economic development in Winnipeg. This includes community building goals and the positive implications on quality of life, but also the notion that the most successful and competitive communities leverage and recognize the contributions of the assets they currently have access to, such as unemployed or underemployed citizens, by providing support that enables all community members to engage in the prosperity of the community.

3 . Connecting to Emerging and Future Opportunities – While targeting economic opportunities and challenges posed by current economic conditions is a critical aspect of the economic development strategy, the longer-term aspirations of the plan require that the community devise strategies to better position it to access opportunities that are only just emerging, or opportunities that will emerge in the future. In Winnipeg’s case, this includes opportunities associated with innovative new industries that build on the city’s strengths, emerging international connections and markets, and potential areas of opportunity in the future (e.g. Churchill, Ring of Fire, and Northern development).

In keeping with the central theme of connectedness, accomplishing the goals of the strategy will require cooperation and collaboration with community organizations and stakeholders from across the full economic development ecosystem. It is important to articulate that as the approach requires organized and deliberate connection, that the vision and the value proposition offer benefits that are attractive to new investment, and that appeal to the broader range of organizations with a stake in the city’s development.

As a result of the connections needed to accomplish economic development objectives in each of these areas, the actions in the economic development strategy will build on the work currently being undertaken by the City of Winnipeg, and the range of organizations that deliver economic development services in the community, such as those included in the Winnipeg Partnership Committee. The intent is to recognize that the City of Winnipeg, paired with its partners in economic development, already has a sophisticated economic development ecosystem in place. Instead of creating a new structure, the key will be to create the connectedness within that system needed to achieve economic development in a changing economy. As such, actions and tactics outlined in the economic development strategy for Winnipeg will build on existing strategies and focus on the implementation of those actions, while adding new actions and tactics arising from this strategic planning process (Figure 10).

Figure 10: Strategic Planning Input

Winnipeg’s Economic

Development Strategy


The actions drawn from this broad range of areas form the basis of the City’s new economic development strategic plan. Within these action areas, the role of the City of Winnipeg and Economic Development Winnipeg Inc. (EDW) will vary greatly. In some instances, the City must play a lead role – that is, it must initiate and champion a particular course of action (often in partnership or collaboration with other community organizations) and accept some responsibility for seeing the action through to fruition. In other instances, the City’s role will be facilitative; it will encourage other partners and organizations to initiate action and activity that will assist in fulfilling the strategic objective or it will act as an honest broker in important community discussions. Finally, the City will often play a support role, utilizing its resources to assist community partners as they seek to undertake actions identified within this strategic plan. What is stressed in the plan is connectedness – achieving economic development goals as a result of the connections the community can create, maintain, and leverage.

3 .1 BUSINESS AND INDUSTRIAL OPPORTUNITIES

Economic development efforts in Winnipeg have largely been successful over the last several decades, as suggested through relatively stable economic performance and the presence of a diversified economy with emerging areas of opportunity. Further, there are a number of innovative organizations in the city focused on supporting economic development, through the attraction of new investment to the city and downtown areas, the expansion of the existing business community, the development of workforce and small businesses, and the development of industry-specific programs and initiatives that can support the development of local clusters of activity.

Economic development under the new strategic plan recognizes the success of the prior structure and organizational profile of economic development in the city, with the intent of creating a more holistic view of economic development for the city and its partner organizations beyond just traditional investment attraction and business retention and expansion. This includes the areas in which the city pursues business and industrial opportunities, the variety of tactics that can be taken to encourage economic development, and the range of organizations that can contribute to business and industrial opportunity.

3 .1 .1 BUSINESS COMMUNITY

Figure 11 and Figure 12 show Manitoba’s top five international business connections based on the proportion of total imports and exports respectively. According to Industry Canada’s trade statistics, Manitoba’s most prominent trading partners are consistently the United States, China, Japan, and Mexico. In terms of export, the primary trend seems to be related to the export of raw or semi-processed agricultural products, such as seeds, oils, and pork products, particularly to Asian markets (beyond the US market, which holds the majority of exports from Manitoba, and Canada’s other NAFTA partner Mexico). Overall, 10 Asian countries (China, Japan, South Korea, Hong Kong, Taiwan, United Arab Emirates, Pakistan, India, Bangladesh, and Indonesia), account for 20.0% of total exports from the province. The strongest growth of export volume has been in European and Asian markets, with notable increases in exports to Bulgaria, Sweden, South Korea, and Russia between 2007 and 2011, and continued growth in markets like China (24%), Japan (27%), United Arab Emirates (43%), Pakistan (84%), India (23%), and Bangladesh (97%) over the same time period. Exports to both the US (-14%) and Mexico (-14%) declined over the same time period.


Figure 11: Manitoba’s Top Five International Business Connections Based on the Proportion of Total Exports, 2010

Source: Adapted from Industry Canada, 2012 by Millier Dickinson Blais, 2012

Figure 12: Manitoba’s Top Five International Business Connections Based on the Proportion of Total Imports, 2010

Source: Adapted from Industry Canada, 2012 by Millier Dickinson Blais, 2012

A similar pattern of geographic connections emerge on the import side, though the US accounts for a much higher share of goods than for exports, as semi-processed goods from other international jurisdictions move through the US to Manitoba. Imported products to Manitoba are typically at higher levels of the value chain than the mostly raw or semi-processed goods exported from the province (e.g. agricultural and construction machinery and vehicles).

In many ways, these findings reflect the current orientation of trade-based activities at the provincial level focused on China, India, and the block of rapidly expanding Southeast Asian countries. Though currently lower volume, Brazil and Russia remain emerging and stable trade partners for the province. Aligning with the province’s initiatives and target markets should be a key priority.

Top Five People Connections

Philippines 34.1%

India 15.1%

China 8.6%

Germany 5.2%

Israel 3.4%

(Other 33.6%)

Top Five Importing Connections

United States 80.2%

China 4.8%

Mexico 2.8%

Germany 1.5%

Japan 1.1%


Winnipeg should also aspire to generate stronger business connections with these established import and export markets and build the profile of the city and province. This is especially relevant given the continued challenges related to the US market and its comparatively slow emergence from the recession (though it should be noted that Manitoba is the third-least reliant Canadian province on the US for export). Provinces need to diversify their trade connections, and create new relationships and connections with new markets.

CentrePort Canada has proven to be a logical partner in this regard, developing a partnership with Chongqing (among others like Canadian Pacific Logistics Solutions and Minsheng International Freight Co.) to promote the export of value-added and raw agricultural products to China from Manitoba, using proprietary radio frequency identification (RFID) technology tracking systems developed by Invent IOT (based in China). Depending on the success of the pilot program, there may be additional inland ports and seaports in other Asian markets that could offer opportunity. There may also be opportunities for the development of processing infrastructure in the CentrePort Canada business parks and across Winnipeg, to prepare exports for transportation to external markets. In addition to CentrePort Canada and the Province, organizations like World Trade Centre Winnipeg (Manitoba’s bilingual trade agency), are also an asset for the city - facilitating export and import connections for local and international businesses.

Building on the connections and efforts on trade development at Canada’s western ports, there may also be opportunities for the import of semi-processed goods to Winnipeg – for local use or further export to Canadian or North American destinations. Domestic repositioning of containers may offer opportunities for the movement or processing of goods destined for the western or eastern Canadian markets. Though a more competitive space (competing with central transportation and logistics hubs in the US connected to Pacific ports like Long Beach and Seattle and inland ports on the CN and CP lines in Canada like Calgary and Edmonton), Winnipeg’s positioning, capabilities, and available industrial land resources may provide longer-term opportunities to support the processing of semi-finished goods for further export – both from locally generated raw materials and imported semi-finished goods.

Winnipeg can also draw on its existing profile of major multinational corporations (e.g. Cargill, Boeing, or Magellan Aerospace), particularly those that are headquartered elsewhere in Canada or in another country. The intent would be to work with the branch operations in Winnipeg to expand the local activities and investment in the area. Winnipeg has had success in this regard, most recently attracting new investments in the aerospace and advanced manufacturing sector from the existing corporate profile, such as the Magellan-Bristol advanced composite manufacturing facility. The city’s business retention and expansion initiative led by EDW and YES! Winnipeg its business development team, can play a key role in identifying and encouraging these types of opportunities to build on the existing corporate relationships.

Leveraging the expertise and connections currently available through the local and regional business community can establish economic development opportunity. Winnipeg has strengths in advanced manufacturing (particularly food processing and machinery, and transportation equipment) and transportation and logistics which can provide incentive for the processing of a full range of goods in the Winnipeg area. The initiative requires connections with the local business community, as well as those markets where the province has existing business connections.

3 .1 .2 PEOPLE AND COMMUNITIES

As of 2006, Canada’s immigrant or foreign born population was just under 6.2 million and comprised 19.8% of Canada’s total population. The distribution of this population, however, is heavily concentrated in Canada’s largest urban centres with over 60% of this population located in only three of Canada’s CMAs (Toronto, Montreal, and Vancouver). In 2006, the immigrant population of Winnipeg’s CMA was 121,255, representing 18% of its total population. More recently Winnipeg has been one of the top 10 immigration destinations in Canada, and as of 2010 ranked as the sixth most popular destination for the second year in a row 13. As of 2010, Manitoba took in

13 Manitoba. (2010). Manitoba Immigration Facts, 2010 Statistical Report. 14 Ibid.


more than 15,000 new-immigrants and of that number more than 12,000, or 77%, chose to settle in Winnipeg14. In other words, looking at immigration statistics for Manitoba allows for a very close representation of the numbers and composition of immigrants settling in Winnipeg.

Given recent international trends in FDI, Winnipeg’s community-based and locational assets, and the perceptions of community leaders, there is a strategic opportunity for Manitoba and Winnipeg in an international marketing context based on the business and family connections of its people. In a sense, the population of Winnipeg is far more diverse – in terms of national origin and cultural connections – than current trading and business relations would indicate.

In essence, when considering international opportunities, Winnipeg’s immigrant population provides a much broader opportunity for opening doors and leveraging existing connections than those represented by Winnipeg’s strongest trading partners. In terms of business connections, there appears to be a “disconnect” between the international connections of Winnipeg’s people, and the international connections of Winnipeg’s trading partners. The figure below contrasts Manitoba’s “business” connections by identifying its strongest “people” connections – Philippines, India, China, Germany, and Israel.

Figure 13 Manitoba’s Top Five International “People” Connections Based on Immigrant National Origins, 2010

Source: Adapted from Manitoba Labour and Immigration, 2010 by Millier Dickinson Blais, 2012

Just as the city can derive further benefit through its business connections, Winnipeg must begin to engage with its residents to leverage and build upon the range of established personal, cultural, economic and historic connections that already exist between the city and communities around the world based on people. In some sense, it is easier to make new business connections where relationships already exist, than to pursue a “cold calling” approach that ignores the strong and diverse already present. In addition, many of the city’s people connections run to fast-rising actors in the FDI space, like India and China. Partnering with and building upon the efforts of local groups with strong external ties may be the quickest path to opening doors in these priority markets. Partners like World Trade Centre Winnipeg may be an asset in this regard, with a defined mandate to facilitate francophone immigration to the city and province.

Besides India and China, leveraging Winnipeg’s people connections associated with smaller markets (such as francophone countries) will be largely dependent on Winnipeg’s sector based priorities. Accordingly, some of these markets may offer more immediate or appealing opportunities, while others may be slightly longer term. Regardless, the existing international “people” connections of Winnipeg offer new opportunities to strengthen the city’s international profile in markets where it may be weaker, and to engage with new markets in business and talent attraction.

Top Five People Connections

Philippines 34.1%

India 15.1%

China 8.6%

Germany 5.2%

Israel 3.4%

(Other 33.6%)


3 .1 .3 ACADEMIC AND RESEARCH INSTITUTIONS

OurWinnipeg has outlined a number of goals for Winnipeg over the next several decades, one of the more prominent being more emphasis on sustainability as a pillar for the development of the community. This includes environmental sustainability, but also social sustainability and fiscal sustainability. In this regard, Winnipeg is fortunate to be the home of the International Institute for Sustainable Development (IISD). The IISD contributes to global sustainable development by advancing policy recommendations and undertaking projects on international trade, investment, economic policy, climate change, and natural resource management. This provides Winnipeg, and its business community with a direct connection into the broader global discussions about sustainability and sustainable business development. With the development of sophisticated technologies in areas like renewable energy and environmental management at local businesses, organizations like the IISD can facilitate important pilot projects that test those technologies.

Similarly, the city is home to a number of other nationally- or internationally-recognized institutes which can anchor business and industrial opportunities for the city. The Composites Innovation Centre (CIC) leads research and development programming focused on innovative application of composite and advanced materials in aerospace, biomaterials, ground transportation, and civil infrastructure; offering local companies the opportunity to access a broader network of expertise, or opportunities to develop leading technologies with broader applications. Similar industry-based institutes exist within the National Research Council structure in Winnipeg, as well as in institutions like the Richardson Centre for Functional Foods and Nutraceuticals, which offer similar opportunities to drive research and innovation in Winnipeg’s business community.

Lastly, the city is home to a strong profile of post-secondary institutions, each with research programming and institutions that represent assets for the business community. Winnipeg is home to the University of Manitoba, University of Winnipeg, Université de Saint-Boniface, Canadian Mennonite University, and Red River College, among other private colleges spread across the city. As such, each of the institutions has a key role to play in business and industrial opportunities; providing the workforce needed by local business, generating research that has positive implications on the local business community, and attracting new skilled workers to the community.

3 .1 .4 ABORIGINAL AND GOVERNMENT PARTNERS

Winnipeg has the highest proportion of Aboriginal identity population of all census metropolitan areas in Canada. Further, the Aboriginal population in the city continues to grow at a faster rate than the total population, and maintains a comparatively lower age profile than the broader city. As the provincial capital, the city is also home to the Assembly of Manitoba Chiefs and the Manitoba Métis Federation; the administrative operations of the First Nations and Métis governments in the province. Overall, the Aboriginal population and organizations in the city represent potential partners in an economic development context. Unfortunately, the collaboration with Aboriginal organizations and communities has been lacking in the past.

The Assembly of Manitoba Chiefs and the Long Plain First Nation have previously investigated opportunities to engage in land development in the Polo Park area of the city, initially proposing a $100 million plan for a 1.4 hectare parcel of land that would accommodate government offices, institutional space for Yellowquill College, and retail space. Though the initial project did not move forward as envisioned in 2008, the site received City approval in July 2011, and the First Nations has since redeveloped a 25,000 square foot former Manitoba Hydro warehouse for use by Yellowquill College. Though the land has not yet received approval from the Federal government for urban reserve status, construction on 80,000 square feet of office space along with wholesale/retail space is expected to begin in 2012. The intent of the Assembly of Manitoba Chiefs is to generate economic development opportunity for First Nations people in the community and province through partnerships like this, which create opportunities for own-source revenue and skill building. By creating an urban reserve or economic zone, the Federal government allows Aboriginal commercial ventures to enjoy tax benefits offered to traditional reserves within urban areas. While First


Nations people represent potential areas of business growth and labour force development, partnerships with First Nations in the area may generate similar mutually beneficial opportunities in areas that align more fully with the city’s target sectors, such as transportation, distribution and logistics. The key is to create partnerships that provide mutual benefits to Winnipeg, the business community, and the First Nations people.

Similarly, the Métis population and administration in Winnipeg and the Capital Region represent a potential economic development partner as well. Through the Métis Economic Development Organization (MEDO) the Manitoba Métis Federation (MMF) has been able to create a mechanism for business investment and growth of Métis-owned businesses, facilitate strategic partnerships in infrastructure and workforce development, and advocate for the economic development impact of the Métis population and Métis-owned businesses in the province. The newly formed MEDO Developments Ltd. is a construction management and land development firm that offers the opportunity for partnerships with public and private industry to undertake major infrastructure or land development projects. The Manitoba Hydro project in Pointe du Bois is a prime example of industry partnership, where the MMF played a key role in facilitating the development and consultation process for the project, while generating mutually beneficial outcomes for both Manitoba Hydro and the local First Nations and Métis population.

MEDO has developed strategic partnerships with some of the largest construction companies in Canada, like Kiewit and Ledcor, which builds opportunities to undertake projects in a range of sectors like non-residential construction, oil and gas, and utilities/renewable energy. One of the key initiatives of MEDO and the MMF is to build and showcase the capacity of Manitoba’s Métis-owned firms – first through investment in and management of growth, then through facilitation of strategic partnerships to assist them with accessing economic development opportunity. Though preliminary areas of strength related to construction and trades, the MMF acknowledges that Métis-owned businesses in the Capital Region have emerging strengths in areas like ICT.

The Aboriginal organizations and communities in Winnipeg and the Capital Region can play a key role as partners in business and industrial development opportunities. There are opportunities for land and infrastructure development that can assist with the community building and sector-based activities of the city and its economic development partners. By partnering, the Aboriginal organizations and communities can accomplish their goals of revenue generation and workforce development. In order to leverage and fully realize these opportunities though, a more sustainable effort should be made to engage potential Aboriginal partners on a regular basis to identify opportunities for collaboration and mutual benefits.

As the seat of provincial government and the home to the majority of Manitobans, the city also has an inherent opportunity to work closely with the departments of the provincial government that handle economic development initiatives. The City also has the opportunity to work closely on projects of provincial significance headed by provincial government, such as the planning of the provincial highway network and projects like CentrePort Canada. However, like collaboration with Aboriginal organizations and communities, collaboration between the Province and its largest municipality has been lacking in the past as well. With that said, project-based collaboration has been referenced as positive in the past.

From an economic development perspective, a lack of alignment between municipal and provincial activities presents a major problem; Winnipeg misses the opportunity to benefit from a larger pool of resources and programming devoted to economic development (e.g. Provincial Nominee Program modifications, trade development activities), while the province misses the opportunity to fully leverage the strengths presented by its largest municipality. The OurWinnipeg plan has been endorsed by the provincial government, and represents a strong statement about the alignment of the vision for the provincial capital city over the longer term. Economic development strategic plans should strive for the same alignment. Tactics and activities undertaken at the local level should align with those of the provincial government, in areas like trade and markets, business immigration, target sector development, and education and workforce development. Though this informally takes place, the economic development plan for the city can enact policies that closely align with both local and provincial visions. These policies can also inform the province about areas where it may be needed to intervene in policy and development. For example, the Government of


Manitoba will need to continue playing a key role in the development of the CentrePort Canada business parks, based on the inter-jurisdictional planning and servicing issues related to the site, and the need to generate consensus around multiple land owners and stakeholders - the Regional Municipality of Rosser, the City of Winnipeg, and the South Interlake Planning District, among other private sector stakeholders. Closer collaboration between Winnipeg and the province leads to an overall stronger positioning for the city and province in an economic development context, and as such, should be a key policy direction related to organizational collaboration in the economic development plan.

3 .1 .5 STRATEGIC COMMUNITIES

Municipal twinning is an ancient practice dating back to 9th Century Europe and the sister city relationship of Paderborn, Germany with LeMans, France. Modern twinning efforts expanded greatly during the reconstruction efforts following the Second World War, and as an ongoing effort at citizen diplomacy during the Cold War. The relationships created over the years have taken a wide variety of forms and aspects, and a growing body of “best practices” is now emerging to guide communities as they assess and consider their options for productive economic, social, cultural and recreational partnerships with sister communities around the world. Community partnership models generally fall into four leading categories:

• Partnerships between communities that have common economic, political, or cultural goals (e.g. increased trade, new market development);

• Partnerships and collaboration between communities working towards a specific initiative (e.g. conference development, brand recognition);

• Partnerships based on educational or experiential interests, such as the sharing of best practices; and,

• Partnerships that build on a community’s existing national, cultural, and ethnic communities to establish international economic development opportunities.

Winnipeg and its economic development partners have been investigating opportunities in this space. For example, the recent trade mission to Israel was undertaken largely based on the community’s aspirations to build a more sophisticated innovation ecosystem that can support small business development and new business ventures (while also building Winnipeg’s profile abroad). Similarly, CentrePort Canada has developed an initiative-specific partnership with Chongqing in China to encourage the export of Manitoba’s agricultural products to the Chinese interior. The city presently has 10 sister city relationships:

• Setagya, Japan

• Reykjavik, Iceland

• Lviv, Ukraine

• Manila, Philippines

• Taichung, Taiwan

• Kuopio, Finland

• Beersheba, Israel

• Chengdu, China

• Jinju, South Korea

• San Nicholas de los Garza, Mexico


These relationships have been formed based on cultural or economic exchange aspirations. For example, the city’s large Filipino population provided it with a strong basis for a cultural partnership with Manila. Given the emerging areas of the city’s economy, these existing partnerships may offer additional opportunities for economic development. For example, the emphasis on food, nutrition, and health in the businesses and post-secondary institutions in Kuopio, Finland, may offer benefits to Winnipeg’s companies and institutions focused on traditional areas of food processing and emerging areas of nutraceuticals and functional foods. Similar sector-based opportunities may also exist based on transportation and logistics and export of products (Chengdu, Manila), biomaterials (Jinju), or interactive media (Setagya) for example. As a first step towards strategic partnerships, the city can look to leverage its existing partnerships in more economic development-oriented ways.

However, further international partnerships could be developed based on emerging goals, such as Tel Aviv in Israel, as a means of connecting with opportunities and initiatives in clean technology and renewable energy. Similar to the CentrePort Canada-Chongqing-Lianglu FTZ partnership, other organizations in Winnipeg may look to forge relationships with organizations and institutions that can share best practices. For example, Winnipeg’s James Armstrong Richardson International Airport may look to build partnerships with other successful cargo and passenger hubs, in order to share best practices regarding logistics and infrastructure. The overall intent of such initiatives is to build Winnipeg’s global network – for trade/export, but also to learn and exchange information and build the city’s profile on more of a global stage. By targeting community-, rather than national-level partnerships, Winnipeg has an opportunity to work with regional or city-level counterparts in other jurisdictions; or those that closely understand the community-level challenges and opportunities in economic development.

There is a precedent within the City for more economic development-oriented partnerships. The City signed a Memorandum of Understanding (MOU) with Kansas City, Missouri in 2005, with the specific goals of:

• Promoting and facilitating bilateral trade between the cities.

• Enhancing the Mid-Continent Trade and Transportation Corridor.

• Coordinating activities in international development/cooperation agreements.

Through the MOU, the cities agreed to exchange information between economic development agencies on international economic development and business issues; facilitate communications between other organizations (e.g. chambers of commerce, professional and industry organizations); promote collaboration and communications with regards to life sciences, agri-food, and transportation sectors and organizations; facilitate trade and businesses development efforts between governments, organize trade missions; and collaboratively work on initiatives associated with the Mid-Continent Trade Corridor. Though the partnership has become dormant in recent years, it represents a framework for the development of new partnerships focused on economic development. The city and its economic development partners need to ensure that the momentum and efforts behind these partnerships are maintained over the longer term.

The city does not necessarily need to exclude domestic or regional partners either. As noted previously, the increasing regionalization of economic development and global competitiveness mandates that a community create a strong regional network. From that perspective, partnership with communities along Canada’s Asia-Pacific Gateway Corridor Initiative may make sense (e.g. Prince Rupert, Delta, or Vancouver) to improve prospects along Canada’s busiest trade route. This includes export to international destinations or other communities in Canada through domestic repositioning. Similarly, Winnipeg may wish to look east (e.g. Toronto, Montreal), north (e.g. Churchill), or south (e.g. hubs along BNSF lines) to build closer relationships with North America’s other existing and emerging trade hubs. Winnipeg has professional and technical capabilities in logistics, resource development, and non-residential/civil construction that can provide a basis for further engagement of partners in areas like Northwestern Ontario, in order to build value-added opportunities related to resource development (e.g. Premier Gold, Ring of Fire). Communities like Thunder Bay, Marathon, Greenstone, or Sudbury may prove to be beneficial partners.


Winnipeg has a range of strategic partnership opportunities that may be explored. International or domestic partners can be examined based on sector- or initiative-based partnerships. The partnerships are not limited to the city either. Winnipeg has a strong profile of economic development organizations which may lead the development of these partnerships. The key to these connections is articulating a mutually beneficial value proposition for the potential partner that Winnipeg has the capability to deliver on.

3 .2 SOCIAL AND COMMUNITY DEVELOPMENT OPPORTUNITIES

Economic development is now generally more concerned with human capital and the skills of the resident workforce than availability of raw materials. As a result, emphasis is being placed on creating better places for people rather than just business. Included is the full range of infrastructure and services which contribute to individual prosperity - ranging from the basic services like housing, transportation, and water, to more progressive services like immigrant support and integration services. The more globally-oriented competition for talent demands that a place have this full range of high quality services but also the assets and amenities that can differentiate it from other global competitors.

The importance of human capital also suggests that the most successful communities must leverage the skills, values, and capabilities of their local population. Skill development has becomes a priority for providing the entire population with the tools necessary to engage in the economy and drive personal and community prosperity. Economic development should not be considered a success if social or environmental challenges persist despite economic growth. As a major metropolitan area in Canada, Winnipeg has a responsibility to ensure that development benefits everyone. This is especially challenging given the emphasis now placed on the need for highly skilled people and the hollowing out of traditional industries that provided stable employment opportunities.

Developed economies are also exhibiting slower rates of population growth and a generally aging population. Many are struggling with how best to replace their skilled workers, especially given that the skills of a community’s workforce are now more important than ever to economic development prospects. Immigration has provided an answer for Manitoba. New residents have provided a steady stream of new skills, experiences, and international connections that can benefit the province and Winnipeg, provided the quality of life and community can continue to match the needs of those new residents.

The new economic development plan recognizes the interdependence of economic, social, and environmental goals and challenges. The plan suggests that in connecting with new areas of opportunity, especially within a more global and dynamic economy, a city needs to have a strong foundation of programming and services delivered and focused locally. In doing so, the community supports its own population, but also builds a strong value proposition that can welcome newcomers as well.

3 .2 .1 QUALITY OF LIFE AND COMPLETE COMMUNITIES

Quality of life is a pillar of OurWinnipeg. This promotes the understanding that if Winnipeg is to achieve prosperity it needs to place a greater emphasis on creating a high quality of life and urban spaces that can appeal to a broad range of demographic groups. It proposes an urban structure to achieve that goal, in the form of creating more complete communities that can better respond to the every-day needs of the neighbourhood population.

OurWinnipeg and the accompanying Complete Communities direction strategy outline the city-wide policies related to quality of life improvement. They are first and foremost centred on creating a city that works – where city systems and services operate in an efficient and networked way. Prominent themes also include the integration of development with a sustainable transportation network and support for major transportation assets, accommodating growth in sustainable ways in new and complete communities, redeveloping older


and transformative areas to achieve higher quality development, and providing recreational, cultural, and social services that ensure the health and safety of the population. Understanding that quality of life is a critical component of city-building, the plan notes that access to services – for disadvantaged communities, the aging population, and the city’s newcomers – is a critical aspect, and calls on organizations ranging from the City – to neighbourhood level to improve quality of life.

OurWinnipeg notes that the downtown area is one of the city’s key transformative areas, offering one of the best opportunities in the city to create a complete, mixed-use, higher-density neighbourhood that promotes the core sustainability goals of the MDP. Intensification and redevelopment are the key priorities for the downtown, in an effort to make the most efficient use of land and existing infrastructure. The MDP directs a focused district, destination, and cluster approach to development in the downtown core that seeks to provide predictability and certainty for investment, increases the variety of complementary experiences and opportunities, and helps achieve a critical mass of people-oriented activities in the downtown core. From an economic development perspective, the downtown is intended to accommodate a range of residential, commercial office, and retail and entertainment uses and the City is permitted to undertake strategic use of incentives (e.g. tax increment financing), focused public realm and transportation improvements, and development of partnerships with government and academic officials and other agency partners to encourage those types of development in the downtown core.

There are a number of key elements central to the revitalization of downtown Winnipeg:

• The historical Exchange District of downtown has experienced continued momentum, on the back of significant investment from the public sector, such as the Paterson GlobalFoods Institute (Red River College), the Winnipeg Regional Health Authority headquarters, and the United Way building.

• The Portage Avenue Development Strategy, including the MTS Centre, the Winnipeg Convention Centre, and the University of Winnipeg, as well as the city’s Sports Hospitality and Entertainment District (SHED).

• The $75 million Groupe Germain/Longboat Development Corporation project across from the MTS Centre (the former A&B Sound site) further anchoring commercial and hospitality investment in the SHED - the project will house a 154-room ALT Hotel, as well as the Winnipeg offices of Stantec, retail/restaurant space on the ground floor, and parking facilities. The expansion of the Winnipeg Convention Centre is expected to be complete in 2015.

• The Community Revitalization Tax Increment Financing Act (2009), which allows CentreVenture to undertake programs and administer grants based on incremental tax increases in the downtown. Grants can be administered to encourage residential development in the downtown (Downtown Residential Development Grant Program), particularly that which accomplishes the City’s goals.

• The involvement of the University of Winnipeg and Red River College in terms of increased educational and programming space in the downtown, as well as student residences and campus improvements.

• The Forks development, through its profile of year-round events and festivals hosted at the site and its resident retail uses, cultural amenities, accommodations, and Shaw Park. Public investment at The Forks has assisted with the continued improvements in urban design in the downtown core, introducing a new standard of design to the area which has carried across Waterfront Drive and into the Exchange and downtown districts.

• Canadian Museum for Human Rights at The Forks is expected to be a national and international cultural asset for Winnipeg. In addition to attracting tourists from across Canada and the globe, the museum is expected to drive additional investment to the immediate area.

Together with the basic infrastructure mandate of the City and business-sponsored organizations (Exchange BIZ and Downtown BIZ) focused in areas like rapid transit and transit improvements, streetscape improvements, and regular maintenance, these aspects combine to provide the downtown and the larger city with a differentiated value proposition related to quality of life.


The City’s priorities in quality of place range from neighbourhood-level to city-wide goals and priorities. Thus in addition to the City and its economic development agencies and other departments, there are a range of other organizations that have implications on quality of life. Connectedness around a central vision for these organizations is paramount to their effectiveness. Winnipeg’s downtown has a range of organizations focused on its development – the City of Winnipeg, Tourism Winnipeg, Economic Development Winnipeg, the Province of Manitoba, CentreVenture, Forks North Portage Partnership, Winnipeg Chamber of Commerce, and the Downtown BIZ. These organizations are informally connected through the Downtown Council, which was initially formed to lead downtown revitalization efforts in Winnipeg. Given the limited resources each organization is working with independently, perhaps there is an opportunity to more formally unite these organizations under a central structure that more efficiently allows for the sharing and pooling of resources.

When looking into other areas of the city though, there are other organizations that may be logical partners in quality of life improvement. Both First Nations communities and the MMF have opportunities to engage in redevelopment efforts, with the MMF playing a key role as stakeholder and landowner in the Point Douglas area. Both First Nations and Métis partners have abilities to access alternative sources of funding from higher levels of government, and to undertake and encourage land development in specific areas of the city. Aboriginal organizations and communities in Winnipeg and the Capital Region can thus play a key role as partners in a range of community-based projects that improve quality of life. Again, more sustained and regular contact, to proactively identify mutual priorities and goals, is needed to create economic development opportunity.

3 .2 .2 LABOUR FORCE CAPABILITIES

Winnipeg has a relatively stable economy compared to the rest of Canada. Over the last five years, unemployment rates in the CMA have stayed well below those of the rest of Canada, and they are projected to continue below the rates at the national level. Participation rates - or those of working age actively engaged in the search for work - have stayed higher in Winnipeg, suggesting initiative in the local labour pool and generally positive perceptions about employment prospects in the region. In an economy that depends in part on the skills and capabilities of its residents, the ability to leverage the skills of the entire population is a comparative advantage. This does not suggest that the City has little need to focus programming on the development of the workforce, especially given that the local business community suggests a mismatch in available programming and opportunities, and broader demographic trends point to the need to replace an aging workforce.

Unfortunately, labour force performance and access to opportunity is not always equal. Certain demographic groups can become marginalized in the labour force; most notably for Winnipeg the immigrant and Aboriginal populations. The Winnipeg CMA’s immigrant population exhibited participation, employment, and unemployment rates of 64.5%, 61.3%, and 4.9% in 2006. The non-immigrant population in the CMA had higher participation (69.9%) and employment (66.4%) rates, with a similar unemployment rate (5.0%). Though the unemployment rate was lower for the immigrant population, the lower rates of employment and participation suggest that the immigrant population has difficulty engaging in the labour force, and has a higher rate of non-participation as a result. For recent immigrants, the problem is magnified with a higher participation rate (73.8%), but much higher unemployment rate as well (9.8%). Despite higher rates of educational attainment than the non-immigrant population, earnings levels for immigrants in Winnipeg are generally below those of the non-immigrant population.

The introduction of the Manitoba Provincial Nominee Program (MPNP) in 1999 has accelerated the process for allowing skilled immigrants to move to the province and city, and has been one of the primary reasons for the attraction of new immigrants to Manitoba. While the program has demonstrated comparable success over other Provincial Nominee Programs in terms of applicants and integration of immigrants into the workforce, work is still needed to more fully leverage the skills of immigrants, particularly their family members. The statistics suggest that Winnipeg’s new-immigrant population is generally well skilled yet under-employed. If the province and city is to retain these skilled


workers, more work needs to be done to bring the labour force characteristics of the immigrant population, particularly the family members of skilled immigrants, more in line with the non-immigrant population15.

Winnipeg’s Aboriginal population is also consistently under-employed and under-engaged in the labour force. In 2006, the unemployment rate for the Aboriginal population in the Winnipeg CMA was higher than that of the non-Aboriginal population (11.3% compared to 4.5%). Similarly, the participation and employment rates show disparities with the non-Aboriginal population, at 65.5% and 58.1% respectively for the Aboriginal population in 2006, and 68.9% and 65.8% respectively for the non-Aboriginal population. The First Nations population had the highest unemployment rate at 17.4%, while the Métis population’s performance (8.7%) was closer but still comparatively higher than that of the non-Aboriginal populations.

These disproportionate levels of employment have resulted in higher rates of low-income among Winnipeg’s Aboriginal population. In 2005, over four in 10 (43%) Aboriginal people were living under the Low Income Cut Off16, compared to 16% of non-Aboriginal people. In addition, almost six in 10 (57%) Aboriginal children (aged 14 years and under) in Winnipeg were living under the LICO, compared to 20% of non-Aboriginal children17. In terms of educational attainment, there was a considerable disparity between Winnipeg’s Aboriginal population and non-Aboriginal population. As of 2006, 12% of Winnipeg’s Aboriginal population had attained this level of education, whereas the non-Aboriginal population had a rate of 19%. Similarly, 39.4% of the Aboriginal population in the CMA lacks a certificate, diploma, or degree (including high school or equivalent) compared to 21.6% of the non-Aboriginal population.

Discrepancies in labour force engagement and opportunity in any demographic group work against the economic and social prosperity goals of community-level economic development. Further, a lack of engagement from the entire population misses the opportunity to leverage the latent areas of creativity in the population which may drive greater global competitiveness for the community. Remedying the situation requires that economic development agencies and organizations strengthen the links between employers and those that provide the social and educational/training services.

Workforce development is currently handled by a number of different provincial-level agencies, as well as through the Assembly of Manitoba Chiefs and the Manitoba Métis Federation. While informal relationships exist, it is widely noted that there are still skill gaps in the local economy. Employment statistics suggest that there are individuals in Winnipeg that may have the desire to fill those gaps. Further, while Manitoba’s Provincial Nominee Program has succeeded in attracting skilled workers, nominees that immigrate to Manitoba have among the lowest probability of finding a job in their intended occupation when compared to the rest of Canada’s provinces and territories18. These disconnects should be the primary target areas for the City and its economic development partners – developing plans that establish the current gap areas as they relate to the City and its employers, identifying the educational and training infrastructure that can be used to address skills and programming gaps, and working to facilitate the process of a more formalized labour market strategy.

3 .2 .3 NEIGHBOURHOOD LEVEL INITIATIVES

Neighbourhood-level revitalization continues to be a focus for economic and community development in the city. This is particularly relevant in a number of the city’s regenerative areas and major redevelopment sites, where OurWinnipeg focuses considerable effort on revitalization and the improvement of quality of life. As a result, these areas offer strong potential as geographic targets for economic and community development in the city – areas where the city can coordinate and facilitate the efforts of organizations focused on community-level economic development, poverty reduction, education, affordable housing, health care, and crime prevention. These initiatives are particularly critical given the potential for older or less stabilized areas of the city to accommodate the most marginalized in the community – new immigrants, Aboriginals, disabled, or the elderly population.

15 Statistics Canada. (2006). 2006 Aboriginal Population Profile for Winnipeg16 As defined by statistics Canada.17 Statistics Canada. (2006). 2006 Aboriginal Population Profile for Winnipeg18 Citizenship and Immigration Canada. (2011). Evaluation of the Provincial Nominee Program.


The William Whyte neighbourhood of Winnipeg is one such example. The neighbourhood is tucked into the city’s north end bordered by Alfred Avenue on the north, Selkirk Avenue to the south, Salter Street to the east, and McGregor Street to the west. Like the adjacent North Point Douglas and Lord Selkirk Park neighbourhoods, the William Whyte neighbourhood is challenged by chronic low socio-economic reality, and the challenges that it represents – crime, poverty, and unemployment being just a few. Since 2010, the neighbourhood (and the adjacent Point Douglas and Lord Selkirk neighbourhoods) have been a focus for development, particularly through the Pathways to Education program and the efforts of community-level organizations, particularly the William Whyte Residents Association (WWRA). Efforts are focused on collectively addressing the social and economic challenges faced by the neighbourhood and establishing the organizational connectedness needed to implement multi-faceted and collaborative strategies to spur development and renewal and support the prosperity of local citizens. Though community-level and primarily social in focus, programming focused on areas like the William Whyte neighbourhood (and Point Douglas or Lord Selkirk, or a number of other communities bordering the downtown) still represents a target for the City’s economic development strategy - through OurWinnipeg, the City has expressed the need to combat basic socio-economic challenges that keep every resident from achieving social and economic prosperity.

The City and its economic development partners should lend support to community and neighbourhood-level engagement, revitalization, and skill development efforts wherever possible. Overall, this means connecting with the community and neighbourhood-level organizations that focus on poverty reduction, homelessness and housing, education and training, and crime. In particular, the economic development strategy should lend support and resources to efforts focused on education and training, in order to ensure equitable access to educational opportunity, support for continuing education, and the completion of advanced education – the components needed to ensure that all Winnipeggers have the ability to find meaningful work, and thus engage in the city’s economic prosperity. This is one of the fundamental steps to the development of the city’s workforce and the preparation of the city to better engage in the newer knowledge-based areas of the economy.

3 .3 EMERGING AND FUTURE OPPORTUNITIES

Progressive economic development strategic planning requires an element of anticipation. Longer-term economic, environmental, and social sustainability depends on being able to anticipate trends, and build the infrastructure and support services needed to respond to these trends as they emerge. This is easier said than done though, as the increasingly connected global economy continues to show signs of volatility and elements of uncertainty. Communities can, however, look at their existing resources, assets, and capabilities to assess areas in which they may have greater opportunities to participate in the future.

The new economic development strategic plan recognizes the importance of identifying emerging and future opportunities as a means of directing plans for longer term sustainability in the city. In many ways, the opportunities for Winnipeg build on the larger trends shaping economic development – knowledge-based industries, niche-based opportunities, industry convergence, global connectivity, and regional collaboration. They also build on the assets that Winnipeg already has access to - transportation and logistics, professional and technical services, a diversified economy, and component pieces of an emerging innovation and economic development ecosystem. Winnipeg can target medium- to longer-term economic development activities in the following areas.

3 .3 .1 NORTHERN AND RESOURCE DEVELOPMENT SUPPORT

Winnipeg and Manitoba are presently positioned along the Asia-Pacific Gateway Corridor Initiative area and the Mid-Continent Trade Corridor. The city also has major transportation connections to Eastern Canada through rail


and road infrastructure. These connections already provide the city and province with strong market access to Canada and North America as well as rapidly growing economies in Asia. Emerging opportunities exist to build infrastructure and trade connections with the Port of Churchill, as a means of opening up connections for the city and province through Arctic shipping routes.

The idea of an Arctic Gateway initiative has been presented previously as a crucial step in Canada’s interest in servicing the emerging Northwest Passage Trade Route, while reinforcing Canadian sovereignty, security, and environmental management of the Arctic region. In a preliminary paper presented by the University of Winnipeg, the formation is envisioned as a ‘T’, with the north-south segment running down from the current Arctic trade routes through Nunavut and Manitoba on the west coast of Hudson Bay. At the cross-roads of major continental trade routes, Winnipeg represents the major southern terminus of the gateway initiative.

Winnipeg currently has rail connections with the Port, though there are presently no road connections from Winnipeg or other provincial communities. Churchill primarily functions as an agricultural hub and staging point for supplying communities to the north like the Kivalliq Region of Nunavut. There is one established, though dormant, international connection through the port – the Port of Murmansk, Russia – and the relationship has largely been based on the import of fertilizers from Russia, with limited amounts of wheat from Manitoba and Western Canada exported back. Trade development initiatives are handled through the Churchill Gateway Development Corporation (CGDC), a public-private partnership between the Province and OmniTRAX (the port operator), which is headquartered in Winnipeg.

Any further development of the Port of Churchill will not be without challenges. The shipping season is limited to approximately 100 days per year from July to November, while the ice has cleared from Hudson Bay. Recent warming trends, while extending the season, are also threatening the capacity of the rail link to the port, which is primarily constructed on permafrost. Despite current connections to the Mid-Continent trade routes of North America via Winnipeg, few plans exist to expand either road or rail infrastructure to the port. Nevertheless, increasing human presence and exploration of resource-based opportunity, paired with the opportunities to spin-off economic development benefits to remote northern communities has renewed interest in an Arctic Gateway strategy. Even opportunities that were unpalatable or perhaps not feasible are seriously being considered in the pursuit of resource extraction opportunities and geopolitical goals in the north.

Domestic connections seem to be the higher priority in the short term, as the Port of Churchill already services much of the Hudson Bay region of Nunavut. The City could look to work with its local partners, particularly those representing the Aboriginal population, to identify opportunities for the distribution of goods to the north while investigating value-added manufacturing and processing activity that spin-off from that. Any development linked to the Port of Churchill will require innovative approaches to the involvement of Aboriginal communities in the area. Preliminary study into the Arctic Gateway notes that the involvement of local communities in governance and decision making will be key to effectively facilitating development of the port, to counterbalance the failures and difficulties associated with less inclusive approaches that have been used in the past. Though opportunities are largely unknown at this point beyond distribution to northern communities, the ground work should be completed now to ensure that plans are in place to effectively implement a gateway strategy for the Arctic as opportunity presents itself. CentrePort Canada, as a key hub at the cross-roads of north-south and east-west trade routes in North America, represents a key partner in the initiative, as well as the CGDC.

Though the Port of Churchill offers advantages over ports along the St. Lawrence Seaway, opportunities for further connections to European (and Asian) markets appear longer-term. One of the key trends will be climate – recent warmer winters have slightly extended the shipping season, but it is still too short to generate significant opportunity in Europe. With that said, the port still represents seasonal connections to Russia and the rest of Northern Europe. As such, there are opportunities to facilitate trade between Europe and North America, via Winnipeg. Whether domestic or international, the City should work to engage in the gateway initiative as


it emerges, supporting study into present port capacity, upgrades to logistics and technology infrastructure, potential products for export, potential value-added processing opportunities at the port and along the trade route, and potential connections with other port infrastructure in Canada (e.g. Halifax) and Europe.

Manitoba has a profile of companies and capabilities related to the oil and gas sector, as well as the mineral mining sector. Capital expenditures in oil and gas and other mining sectors in Manitoba have nearly doubled from $323 million in 2005 to more than $700 million in 2010. Total production has grown at an average rate of 10% per year from 2005-2010 and the value of oil and gas production has more than doubled from $327 million in 2005 to a record $869 million in 2010. The province has particular strengths in mineral mining, characterized by:

• Fully integrated mining and processing facilities;

• An efficient permitting process with stable, secure land tenure system;

• Partnerships between Aboriginal peoples and industry;

• Environmental stewardship balanced with industry needs; and

• Easy access to geological data.

These factors form the basis of the value proposition for investment in Manitoba’s mineral mining sector. Manitoba is recognized as having the second-most competitive mining tax regime in Canada and is annually rated as one of the top 10 global jurisdictions for mineral development by the Fraser Institute. The Province has worked hard to create a competitive and viable mineral mining sector in the province, and a stable environment for large-scale investment. There are currently nine active mines in Manitoba that mine nickel, gold, copper, zinc, and other minerals. As a result of the strong provincial presence in the sector, companies have emerged in Winnipeg to provide the technical, professional, and trades-based services required by the mining sector. These companies benefit from the availability of labour in the city, but also from the transportation infrastructure that allows them to move people and equipment to remote sites across the province, Canada, and the world.

Though there is continued opportunity in Manitoba, and the opportunity to further drive the export of services and expertise to sites across the globe, additional longer-term opportunity for the local mineral extraction sector may also come from Northwestern Ontario in the form of the proposed developments in the Ring of Fire. The Ring of Fire is located 240 kilometres west of James Bay and northeast of Thunder Bay the current mining developments are 300 kilometres from the nearest rail or road link, and two hours away from major urban areas by air. Initially explored after juniors and prospectors discovered diamond-bearing kimberlite pipes near Attawapiskat, the expanded exploration resulted in the discovery of a massive chromite find. This massive mineral deposit is one of the most significant natural resources Ontario has, and has already attracted more than 50 companies and more than 30,000 claims.

Current estimates suggest the potential for decades of chromite production as well as significant nickel, copper and platinum. The overall resource estimate indicates that there is enough chrome ore to supply the North American market for the next 150-200 years. Annual production of chromite from these new deposits could range in the four million tonnes per year and possibly up to 10 million tonnes when supplying the Asian markets. Further to that, the quality and grade of the chromite is superior when compared to other world producers.

As with most remote sites, the location of the projects creates several issues. It is largely un-serviced by roads and rail and construction is an extremely challenging prospect due to the terrain. Bush planes remain the essential mode of regional transit, supplemented by waterway travel in small recreational vehicles. There is also limited potential for value-added activities at the site, and companies will still rely on external sources of expertise and labour to undertake development as a result of the sheer scale of opportunity and the gaps in available local labour.

Winnipeg may derive a number of benefits from this development, as the largest of the urban areas in closest proximity to the proposed Ring of Fire developments. This includes opportunities related to equipment and


supplies, ICT and remote sensing, heavy and civil construction, logistics and distribution, workforce development, environmental consulting and remediation, and business services. The priority needs to be connectedness with the region prior to the development of infrastructure in the area. This includes establishing physical connections to major hubs associated with the movement of people and minerals in and out, of the development, but also facilitating virtual and business development connections between companies engaged in the Ring of Fire and Winnipeg’s mining and resource extraction service industry.

Given the scale of the proposed development, export will likely be a key priority as well. As a key hub along the Asia-Pacific Gateway, Winnipeg can engage with the companies in the development to influence the positioning of physical infrastructure and routing of distribution (e.g. rail lines, marine shipping routes), promote the capabilities of local companies and labour, and encourage the development of value-added processing activities related to the extracted minerals in Winnipeg (prior to further export). In terms of partnerships and connections, Winnipeg should seek to engage with a range of players. Local companies in the sector need to be engaged to further develop an understanding of their capabilities, or present activities related to the Ring of Fire. The Manitoba provincial government can play a key role as a facilitator in relationship building with the Ontario provincial government, with the understanding that more regional approaches to economic development in Northern Ontario and Manitoba can create strong benefits for both provinces. The City also needs to reach out to the companies engaged in the development, to understand their labour force and infrastructure needs that Winnipeg may be able to deliver on.

Overall, Winnipeg will continue deriving opportunities related to resource extraction and development in Northern Manitoba and Nunavut. The local sector has also derived value from exporting its expertise around the globe. In the future though, the Ring of Fire may represent a significant opportunity for the city and its local business community. To more fully leverage these longer-term opportunities though, the economic development work must start prior to the ramp-up of production in the area. As the largest urban area in close proximity to the development, Winnipeg and its local business and resident community stand to derive significant benefits from these longer-term opportunities if the city can accomplish this.

3 .3 .2 INNOVATIVE INDUSTRY SECTORS

In creating an economic development strategic plan it is typical for a community to identify key target sectors as areas of focus for economic growth. Winnipeg has pursued this approach, identifying 10 broad target sectors of strength in which the community holds significant opportunity for economic development. However, in and of themselves, these targets are not remarkable as other communities in the province or country may have identified similar target sectors. At the same time, each of these targets has a certain logic and strength in the context of the local and regional economy. A community’s challenge is thus to identify its unique sectors of competitive advantage where it may both attract and support investment.

The very notion of pursuing and supporting investment in “target sectors” of the economy is based upon the economic development notion of “cluster development,” the idea that industry groups together in nodes of concentration. These nodes arise where resources are thickest – where concentrations of talent, infrastructure, financial capital, etc. are present and available to participants within the cluster.

Initially, the term “cluster” was applied only to large and significantly resourced industry concentrations, particularly the world leaders in given fields (such as Silicon Valley for ICT or Zurich for pharmaceuticals). More recently, economic development practitioners have taken to employing the phrase in a less grand sense, and more as a “short hand” for explaining the potential to grow local economies by building on areas of concentration and interconnectedness within their own community.

This shift is discussed at length in a range of specialist literature, including Per Lundequist and Dominic Power’s 2002 paper Putting Porter into Practice? Practices of Regional Cluster Building: Evidence from Sweden. They


suggest that economic developers “use the term ‘cluster’ as something of a buzz word that represents a shift away from narrowly focused firm-based strategies to more holistic regional economic development approaches...”

They also argue that this activity, while not clustering in the traditional sense, has proven highly effective in a range of jurisdictions. This revised cluster theory represents a significant shift in economic development thinking, as it suggests that a range of local actors – not just businesses – can play an important role in driving economic growth in these target sectors. As the US Department of Commerce has argued, “Cluster theory also describes how factors external to the firm impact competitiveness and innovation. It is not just the characteristics of firms that create a truly competitive cluster; there are regional factors external to the firm that matter as well.”

The process of mobilizing these external factors is only partially understood. However, in 2004 Maryann Feldman and Johanna Francis argued that there are three basic stages of cluster formation. They describe these in Homegrown Solutions: Fostering Cluster Formation as:

• The movement from latent entrepreneurship to active entrepreneurship

• The initial formation of the cluster

• The development of a fully functioning entrepreneurial environment within an innovative and adaptable industrial cluster

By linking the early stages of cluster development directly to this latter factor, the “entrepreneurial environment”, Feldman and Francis are rooting the cluster in a specific operational environment or business climate of a given community. This environment is entrepreneurial in nature – that is, it is characterized by a “thickness” of opportunity, of commercial and industrial interconnectedness, of support structure, and of human and financial capital. The City and its economic development partners can play a key role at these stages of more entrepreneurial cluster development.

Most communities will have several business sectors where a “thickness” of resources is particularly evident; where a concentration of business ventures, community organizations and institutional structures overlap in their areas of focus and expertise. These are often referred to as areas of local competitive advantage, and form the basis of strategic targeting exercises in economic development activity. The development of a genuine cluster-growth strategy, however, is not merely an exercise in identifying areas of strength. It is a more nuanced approach that attempts to articulate core messages or “value propositions” about how the configuration of the cluster strengths may be deployed to meet the needs of business in a way that drives economic growth and increased employment. Looking back to the initial discussion, it is about building a local network of strength that can compete on a global scale. It is about identifying specific and tangible reasons why an existing local business, a new entrepreneur or an external investor would choose to invest or reinvest funds within the community.

On the surface, this is a simple task. One identifies the assets and strengths of the community, and works to build support structures to aid in the development of these areas. However, the challenge arises in deploying resources to areas that can be competitive with the hundreds of similar sector-based activities being undertaken by other communities. What Winnipeg should seek to do is to differentiate the community by identifying aspects or facets of its clusters that are rare or even unique. It should look to identify key innovation areas in which other communities are not as well placed to support development.

The solution to this challenge lies in understanding the interactions between a community’s clusters. Many communities in Canada and the Prairies have a large agricultural sector. Many have a strong history in the manufacturing sector. However, far fewer have strength in both. From this perspective, each time an additional cluster is identified, the community’s value proposition to a certain segment of potential investors in strengthened.

This approach to the identification of high-priority and innovative areas allows communities to identify those specific areas of strength that are complimentary to each other, and thus identify the point or points at which the community has a regional, national or global competitive advantage. These areas of advantage may then form a key part of the


orientation of services and support in a community’s innovation ecosystem, to both anchor increased internal investment from businesses and entrepreneurs (latent and active), and attract investment from external sources. At a practical level, this approach suggests that Winnipeg’s area of greatest competitive advantage lies in activities that incorporate more than one element of activity from different target sector strengths. Such concentrations of assets represent areas of activity where the concentration of industrial, commercial, community and institutional strengths may be leveraged to present a truly compelling case for the deployment of limited innovation resources.

As the model presented here suggests, each circle represents an area of local/regional strength. Where two circles overlap, the region has an area of competitive advantage at a regional or national level. Where three circles overlap, the advantage is significant enough to position the region as a leading destination for investment at the global level. These can also be considered the key areas of innovation for a community; where the deployment of resources can support growth of truly unique economic sector opportunities that could be largely unmatched in other communities. In a sense, these become the high-priority, niche opportunities for the city. The intent is not to replace the target sectors, but rather to re-orient programming and activities towards areas where the city can derive the highest value for its residents and business community.

Figure 14: Identifying High Priority and Innovative Industry Sectors

The true depth of the cluster target area and its associated support structures is perhaps best demonstrated not through this “circle” exercise, but through a “pyramid” exercise to describe the full range of businesses and organizations that will support development of the key innovation areas, if properly networked together. This approach suggests that the most obvious commercial ventures in a cluster are only the tip of a much larger pyramid, comprised of increasingly broad layers of expertise, commercial activity and human resource capacity that anchor and support the more obvious “pinnacle” (or key innovation area) of the cluster pyramid. This becomes the value chain or innovation ecosystem for the areas of innovation. As such, efforts targeted at the pinnacle of the pyramid must also be targeted at the layers below. This includes investment attraction and business retention and expansion activities, but also small business support, workforce development, and key programs and services focused on innovation. Manitoba BOLD, an initiative of the Winnipeg Chamber of Commerce and its industry partners, has focused on the identification and development of ideas to support key areas of innovation. In many ways, initiatives and programs like this play a key role in building the strategies focused on the development of each tier of the pyramid. As such, community partners are a key element of constructing effectively networked value chain supports for key innovation areas.

Sector of Strength

Sector of Strength

Sector of Strength

Innovative Sector


Figure 15: The Pyramid Model of Networked Support for Innovative Industry Sectors

A full pyramid population map would identify areas of excess capacity that Winnipeg may leverage to further develop key sectors, or areas that are relatively under-serviced, in which Winnipeg and its economic development partners may be able to expand the range of programs and services that are offered to the sector.

Winnipeg’s target sector strengths lend themselves to five key areas of industry innovation which should form the basis for economic development programming and assistance at the City over the medium and long term, as outlined below. Again, the intent is not to replace sector-based activity, but to further refine sector-based activities into areas of opportunity resulting from broader industry trends and the capabilities present in the city.

3 .3 .2 .1 ADVANCED MATERIALS

Advanced materials research and development is focused on the improvement of existing materials in areas like cost, weight, strength, and durability. Advanced materials have applications in potentially all industry sectors, with much of the existing work being done in aerospace, automotive, construction, and energy applications. As such, advanced materials development lies at the convergence of a number of component sectors, including manufacturing (particularly automotive and aerospace), and emerging areas of life sciences, and energy and environmental technologies (e.g. renewable energy, building components).

The emerging green and environmental technologies industry is proving to be a key driver for advanced material development. Most advanced materials have inherent green qualities or qualities that make them appealing to the industry based on its goals of reduced environmental impacts. For example, lightweight materials in automotive and aerospace industries translate to increased fuel efficiencies. More durable advanced composite materials have applications in areas like wind turbines. A broad range of manufacturing industries have an interest and stake in the advanced materials area for similar reasons. The health and life sciences sector plays the role of adopter and innovator in the advanced materials area, particularly related to medical and assistive devices (e.g. ceramics in dental/orthopaedic implants, metals in laparoscopy instruments). The value-added agricultural processing, and related niche bioproducts sector have a more emerging role in the sector, related specifically back to bio-based materials like plastics, composites, and adhesives/resins/coatings.

Most Visible Companies

First Tier Suppliers

Service Sector Support

Institutional Strengths (education, government, NGO)


Research and development is most frequently focused on a number of more discrete areas within this industry convergence, including:

• Metals and alloys (aluminum, copper, stainless steel, and titanium).

• Synthetic and bio-based polymers and plastics.

• Ceramics.

• Synthetic and bio-based composites.

The advanced materials convergence area links explicitly to a number of regional and local level strategies in Winnipeg. The city has undeniable strengths in transportation equipment manufacturing. The life sciences sector has manufacturing strengths focused on pharmaceuticals, but has more nascent strengths in medical devices and engineering. Further, the energy and environment sector in the city has strengths in renewable energy systems, for which advanced materials have positive implications on large-scale structures (e.g. wind turbines) and micro-generation systems. Underlying these industry strengths are research and academic strengths like the CIC, the National Research Council (NRC), and specialized programming at the city’s post-secondary institutions.

Winnipeg’s opportunity in advanced materials stretches across the later parts of the value chain, including secondary conversion (e.g. complex chemical synthesis, polymerization) of intermediate chemicals and components into advanced materials; and final assembly into components specific to industry needs (e.g. automotive parts, building materials, windmill blades).

3 .3 .2 .2 AGRI-FOOD AND NUTRACEUTICALS

At the intersection of strengths in manufacturing and agriculture, Manitoba and Winnipeg have a strong tradition related to food processing industries, or the agri-food sector. The city is home to a number of major industry players in the food and agricultural sector, which generate annual revenues in excess of $22 billion per year. Some of the most recognizable names in the industry, like Cargill, Nestle, McCain, Maple Leaf Foods, and Pillsbury have a presence in Winnipeg as a result of advantages related to food manufacturing. As a result, the city has developed specializations in a number of primary areas of the agri-food value chain, such as:

• Pork and poultry slaughtering and processing.

• Egg products processing.

• Oat and flour milling.

• Potato processing.

• Oilseed crushing.

• Milk and cheese products.

• Hay compaction.

• Livestock genetics.


While these strengths will continue to be relevant in the future, the existing agri-food industry in Winnipeg paired with the existing strengths in life sciences and pharmaceuticals lends strength to a value proposition in the areas in which they intersect: nutraceuticals and functional foods. Nutraceuticals are foodstuffs which provide health benefits in addition to their basic nutritional value19. These may include fortified foods with nutrients added, as well as dietary supplements that can be sold in capsules, tablets or powders. The idea behind the use of nutraceuticals is to extract the naturally existing nutrients that have been identified as beneficial to health and wellness, and provide them in a variety of other forms and different products20.

Foods and beverages that integrate these beneficial nutrients are also commonly referred to as functional foods, signifying they and/or their components may provide a health benefit beyond basic nutrition, i.e. they contain bioactive compounds that may have physiological benefits and/or reduce the risk of chronic disease21. While all foods are functional in that they provide nutrients, nutraceuticals contain health-attributes not generally associated with that particular food. Research in the sector focuses on two key areas:

1. Defining the “functional” attributes of traditional foods that are beneficial for health and wellness, and

2. Creating new food products with those beneficial components22.

The functional food industry, consisting of food, beverage and supplement sectors, is one of several areas of the food industry that has experienced fast growth in recent years23. It is estimated by BCC Research that the global market for the functional food industry will reach $176.7 billion in 2013, with a compound annual growth rate (CAGR) of 7.4% over the next several years. More specifically, the functional food sector is expected to experience 6.9% CAGR, the supplement sector is expected to rise by 3.8% CAGR, and the functional beverage sector is expected to be the fastest growing segment, at 10.8% CAGR24. It is anticipated that this growth will be fuelled not only by industrial innovation and development of new products that satisfy the demand of increasingly health conscious consumers, but also by health claims covering a wide range of health issues25.

It should be noted that consumer scepticism of the industry persists, mainly due to the fact that the benefits associated with consuming certain nutrient-fortified products are often difficult to detect. The industry suggests the establishment of a health claim regulating agency to increase consumer confidence and better regulate the range of claims being made. Strict examination of some of the functional food claims may discourage some companies from launching products. As such, professional and scientific research in areas like life sciences is key to the value proposition for nutraceuticals industry activity.

Winnipeg is home to one of North America’s leading clusters of functional foods manufacturers, building on the province’s profile of companies focused on agricultural and agri-food innovations. The city and Capital Region is particularly well-positioned with regards to foods that are made from hemp, flax, or pulses (e.g. peas or beans), and is home to companies like Hemp Oil Canada, Bee Maid Honey, and Manitoba Harvest Hemp Foods and Oils. Further, Winnipeg is home to a thriving bioactives cluster - the Manitoba Agri-Health Research Network (MAHRN) - which is comprised of the Richardson Centre for Functional Foods and Nutraceuticals (University of Manitoba), the Food Development Centre from Manitoba Agriculture, Food, and Rural Development (MAFRD), and the Canadian Centre for Agri-Food Research in Health and Medicine (a partnership between St. Boniface Hospital, the University of Manitoba, and Agriculture and Agri-Food Canada).

19 Agriculture and Agri-Food Canada (2009). What are Functional Foods and Nutraceuticals? http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1171305207040&lang=eng

20 Nutraceuticals 2008. http://www.nutraceuticals.com/21 Agriculture and Agri-Food Canada (2009). What are Functional Foods and Nutraceuticals? “

http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1171305207040&lang=eng22 North Carolina Association for Biomedical Research. (2007). Neutraceuticals. www.aboutbioscience.org23 Functional Foods: Public Health Boom or 21st Century Quackery? A Review of Regulations and Demand for Functional Foods in

Japan, the U.S. and the UK. (1999).24 Ibid.25 Scholan, I. (2007). Functional Beverages - Where Next? Innovation in Functional Beverages Market is set to continue.

International Food Ingredients.


These assets differentiate the city from competitors in the increasingly competitive sector. Through these structures, the city has the potential to be at the leading edge of scientific research and development in the sector. Other cities are home to agri-food processing clusters and life sciences clusters. The further integration of these strengths and development of programming more specific to the area of innovation will provide a stronger value proposition for investors in the sector.

3 .3 .2 .3 BIOMATERIALS AND BIOPRODUCTS

Growing environmental and ecological concerns are leading governments to enact new legislation to reduce society’s dependence on fossil fuels and non-renewable goods and encourage the use of renewables. This societal and legislative change has resulted in the research and development of plant-based and other renewable, biological-based materials. This includes biofuel development as well. Manitoba is a traditional centre of biomass that can be used in bio-based applications, which makes the subsector a logical target for the city, as it can build on the proximity to agricultural products and residues in the surrounding rural areas, but also the resident capacity and thickness of resources in manufacturing, agribusiness, and energy and environment present in the city. The agri-food processing strengths noted above play a key role in the development of the sector, as primary infrastructure needed to develop products further down the bioproducts value chain (e.g. the availability of oilseed processing infrastructure).

The immediate benefits of using bio-based components in exchange for synthetics or petroleum-based components seem clear – the use of a renewable input stock with higher recyclability will reduce an industry’s overall environmental impact and carbon footprint. However, these are not the only advantages to bio-based components. Many of the resulting bio-based materials are low in weight and cost, thus reducing overall costs in production and material usage. Further, the weight advantages can translate to areas like fuel efficiency, which is critical for electric and hybrid vehicles. Lower chemical input in the production phase reduces health hazards associated with the manufacture and usage of bio-based materials. Further, it has been found that physical properties such as flexural and tensile strength can be improved through the inclusion of bio-based fibres and components in specific material applications, such as composites26. Finally, the introduction of bio-based fuels (e.g. ethanol and biodiesel) offers the potential to respond to continued concern over emissions and the volatility of oil prices.

Manitoba has long been a centre of agricultural production, much like Canada’s other Prairie Provinces. As such, clusters of biomaterials and biofuels companies have concentrated in these areas, based on bulk access to feedstocks. Specific to Manitoba, the strengths in cereal grains and oil seeds, and agricultural, forestry, industrial (e.g. food processing) and municipal waste residues provide the primary value proposition for biomaterials and bioproducts development, which is strengthened further by high-rates of productivity per acre and yield stability in the agricultural sector. Indeed this has been the basis for bioproduct development in the city thus far. Winnipeg’s industry profile includes companies like Winnipeg Forest Products and Oi Cellular Furniture, which primarily focus on bio-based materials, as well as OEMs which have strong positions and investments in bio-based materials like Boeing, New Flyer, and Buhler. Research-based strengths are added through the CIC. The policy-based approaches of the province though, including the Manitoba Bioproducts Strategy, the Manitoba Biofuels Act, and the Manitoba Biodiesel Strategy, add strength to the City’s position as they articulate the approaches and opportunities that are being pursued in the province. Winnipeg may not be positioned to drive investment at early areas of the value chain like primary feedstock production, but the manufacturing and research capacity in the city and the availability of feedstocks in close proximity make biomaterials and biocomposites a key area of industrial innovation for the city. Winnipeg and its economic development partners need to clearly identify their positioning on the industry value chain, and modify programming to support that positioning.

26 Panthapulakkal, S and Sain, M (2006). Injection molded wheat straw and corn stem filled polypropylene composites.


3 .3 .2 .4 INTERACTIVE AND DIGITAL MEDIA

Winnipeg is the centre of Manitoba’s ICT sector. The city exhibits strengths in more traditional areas of ICT like computer systems design and telecommunications. The sector is anchored by large businesses like MTS Allstream and IBM, which provides a stable presence for the city in the sector. However, the key industry trend in ICT has been of industry convergence over the last several decades, as noted previously. As a result, much of the rest of the sector’s prospects are driven by niche areas of manufacturing, and the opportunities to service the strong manufacturing, finance, insurance, and logistics sectors of the local economy with specialized hardware and software solutions. One of the more innovative areas of industry convergence that offers potential for Winnipeg is interactive and digital media – at the intersection of traditional strengths in ICT, and strengths in cultural industries (like music, film, and performing arts) and education.

Manitoba is home to 125 digital and interactive media companies that together employ approximately 600 people, and generate revenues that have grown 850% between 2007 and 2010. Web design and development are key areas of activity for the sector, with capabilities centring on web and mobile apps (e.g. IC Group, ManLab), visual effects and motion graphics (e.g. Opus, Elemental, Systematic Design), and gaming. Much of this activity has been a result of available tax credits, the availability of creative industry professionals, industry and professional support organizations, and sector-specific assistance programs at the local level. The presence of the University of Manitoba and the University of Winnipeg provide a steady stream of graduates from which the sector can draw on in areas like computer science. Red River College offers industry-specific training and educational programming focused on new media design – web design, 3D animation, and video and motion graphics. The vibrant arts and culture sector also provides strength to the industry, with professionals and technical workers skilled in the content creation and production activities (e.g. performing arts, visual arts) needed to drive the digital content creation and distribution activities of the sector.

Gaps still exist for local economic development efforts. One of the more innovative assets - Fortune Cat Studios, an incubator for the gaming industry that was operational in Winnipeg from 2006 to 2010 – has since closed due to a lack of private and public support. While the sector continues to be driven by innovative small businesses, there remains a gap in the local system for support of the sector. Further, access to stable levels of venture capital and angel investment plague the subsector, as well as the wider ICT and knowledge-based sector in the community. Winnipeg has the components to foster a stronger interactive and digital media sector, but development of stronger connections to the institutional and financial supports for the sector are needed.

3 .3 .2 .5 ALTERNATIVE AND RENEWABLE ENERGY

The alternative and renewable energy sector covers the entire value chain of the traditional utilities sector, from energy generation to energy transmission and support industries. In addition to utilities, the advanced energy sector is composed of manufacturing, energy and environmental industries, information technology, and agri-business industries, with each sector adding the necessary specialties to address the construction, management, and maintenance of renewable energy systems.

The energy and environmental technologies sector is the key driver for the development of renewable energy systems. The sector offers the technologies that permit the use of renewable feedstocks as inputs to generate energy, while requiring new systems of energy delivery and management that assist with matching energy supply from diverse providers to changing demands. Manufacturing sector strengths, particularly in areas like advanced materials, chemicals, transportation equipment, engines and turbines, and batteries, translate to opportunities related to the manufacturing of components and processing of biological materials for energy, but also opportunities to harness industrial waste products (e.g. biomass, heat, or chemicals) for waste-to-energy applications. Agribusiness industries work at the front of the value chain, offering organic raw materials and biomass that can be used to create both fuel and energy. Information technology industries provide the technical tools to manage advanced manufacturing processes to create advanced energy systems, but also the communications requirements of energy producers and


transmitters to continuously monitor available supply and current demand (e.g. the smart grid), from the increasingly dispersed energy generation network permitted through advanced energy. At the convergence of these industry strengths is the alternative and renewable energy sector.

The convergence sector links explicitly with a number of regional and local strategies for economic development. Primarily it links with the emerging emphasis from Manitoba Hydro to encourage the development of large and small scale renewable energy in the province. Manitoba Hydro has programming in place to encourage innovation and development of alternative renewable energy resources such as wind, solar, geothermal heat pumps, and bio-fuels. This is bolstered by provincial grants, tax credits, and other incentives for electric customers to invest in renewable energy resources in the province.

In terms of industry composition, Manitoba and Winnipeg have a presence in all types of alternative and renewable energy subsectors. Manitoba leads Canada in the installation of geothermal heating systems. There are about 6,000 geothermal systems installed in Manitoba, representing between 25 to 30 per cent of all geothermal system installations in the country. The subsector is driven provincially by the Manitoba Geothermal Energy Alliance (MGEA) in Winnipeg, which facilitates collaboration of strategic partnerships to encourage growth of the industry. In terms of wind, Manitoba is home to a combined capacity of 237 MW, with 200 MW of additional capacity targeted each year from 2013-2018. Manitoba also has strong solar potential, and Winnipeg is home to mid-North America’s largest designer and supplier of commercial and residential solar products (Solar Solutions). There is also potential around biomass applications in the city, due to proximity of major agricultural operations and presence of industries that can provide primary feedstocks for energy applications (e.g. food processing residues). Each of the major post-secondary institutions in the city also offer a broad range of programming focused on environmental sciences, resource management, and biotechnology, which have positive implications on the development of the sector.

As a leader in renewable energy related to hydro power, Manitoba and Winnipeg have opportunities to build on this recognized profile and develop opportunities in other areas of alternative and renewable energy development. The city has manufacturing capabilities related to metalworking and machinery which can translate into civil and utility structure construction, while the CIC continues to look at applications of composites in areas like renewable energy system components. Agribusiness firms produce co-products which can assist with the development of biomass energy products. Lastly, ICT firms offer opportunity to develop products related to the storage of energy and management of delivery and transmission.

Winnipeg can play a key role in creating the network needed to identify opportunities within the sector, facilitating opportunities to connect businesses in traditional sectors with partners in the renewable energy sector – locally or abroad. Further, economic development agencies in the city play a key promotional role for the development of the sector – articulating the strong positioning that the city has related to the renewable energy sector – to both Canadian and international audiences.

3 .4 INSTITUTIONAL ANALYSIS AND DIRECTION

The economic development strategic plans of a community must also take into account the structures that will play a key role in implementing the plans. As noted previously, Winnipeg benefits from a strong profile of organizations around the city focused on the components of economic development, ranging from traditional areas like business development, export development, and investment attraction, to more contemporary areas of activity like downtown revitalization and renewal, workforce development, talent attraction, and improvements to quality of place. These organizations contribute to what is widely considered to be a sophisticated ecosystem of economic development service delivery in the city, which has driven the diversification and success of Winnipeg’s economy over the last decade. In many ways, it is less a question of increasing capacity of any one organization in the city than it is a question of how better to organize the ecosystem to support economic development in


the city to increase capacity without demand for new staff and resources, which can be difficult to obtain in an era of more constrained budgets and funding opportunities. The following section offers insight on the current organizational capacity present within Winnipeg, as well as identifies opportunities for further partnership and collaboration within the city’s economic development ecosystem aimed at increasing organizational capacity, especially as it relates to the pursuit of economic development opportunity defined in this strategy.

3 .4 .1 ORGANIZATIONAL CAPACITY

Economic Development Winnipeg is unquestionably the lead economic development organization in the city. Through the City of Winnipeg, the corporation intends to increase collaboration among Winnipeg’s various economic development players with the intent of minimizing fragmentation and leveraging the expertise of other organizations to achieve positive results. By its mandate EDW plays the role of network administrator for the city – assembling, managing and maintaining the network of organizations needed to devise and implement economic development initiatives for Winnipeg. Staff members at EDW are widely regarded as key participants in any economic development effort across the city, and maintain the relationships needed to ensure a more collaborative approach to the prosperity of Winnipeg. The organization’s public-private nature allows it to access funding from stable public sector sources and coordinate with local and provincial government departments, while gathering critical direction and funding from private sector partners that offer insight into the challenges and opportunities within the local economy from a business or corporate perspective. The structure also provides the organization with a wide mandate for operations, and allows it to quickly integrate into economic development and tourism efforts across the city – especially those conducted by partners within the Winnipeg Partnership Committee. Further, the Tourism Winnipeg division and the YES! Winnipeg initiative within EDW provides the capacity for more detailed sector-based and traditional investment attraction/business retention activities of the city.

Like all government organizations, EDW faces challenges related to fiscal constraints and generating returns on investments for its primary shareholder – the City of Winnipeg. This takes on greater relevance considering the challenges within public and private sector organizations over the last several years, many of which have faced radically different prospects for funding and revenue from taxes and sales alike. As one of the key drivers and facilitators of development and business investment in a community, public and private sector economic development organizations continually face pressure to ensure that they are generating returns on the investments made by public and private sector stakeholders. EDW is not different. Its activities and partnerships have a bearing on the generation of tax revenues for the community, as new business arrives in Winnipeg and existing businesses expand. As such, EDW (and its divisions) has a bearing on the fiscal sustainability of the city, in addition to its efforts to facilitate improvements to social and environmental sustainability through advocacy, job creation and protection, and workforce development.

From that perspective though, it is critical that the baseline tools be in place to ensure the greatest fiscal benefits are being derived from the efforts of economic development organizations. As noted previously, this includes property tax revenues and revenues that can be levied on new developments in the city to finance the construction, operation, and maintenance of the hard infrastructure that allows the city to continue being a competitive location for business investment. It is here where the capacity of the city, not necessarily EDW, has been challenged.

The 2011 budget marked the first time since 1997 that any type of property tax rate was increased in the city – frontage levy rates were increased by approximately 47%. The operating budget in 2012 prescribed an increase in residential property taxes as well. One of the major criticisms of this approach suggested that the City did not raise its available revenue streams in line with inflation to offset the costs of infrastructure renewal. Though this alone would not have offset the full cost of construction, maintenance, and operations, it could have maintained revenue growth more in line with the growth in costs.

The City is widely considered to be facing an infrastructure deficit of $3.8 billion – a figure which caused the City (with the Association of Manitoba Municipalities) to form the Infrastructure Funding Council in 2010, to assess


options for sustainably tacking the deficit while permitting new growth. For Manitoba’s municipalities, including Winnipeg, the taskforce suggests maximizing the use of existing financial tools available (e.g. borrowing, tax-supported “smart debt”, or special purpose taxes) to finance infrastructure, in addition to working with the Province to pursue sustained federal municipal infrastructure funding. It is also worth noting that the City of Winnipeg, along with other municipalities in the province continues to advocate for a share of provincial sales tax, as a means of addressing infrastructure deficits.

Consultations suggested that the City is currently not meeting this objective – existing tools are not being used to their full extent and other tools may be available to introduce new revenue streams (e.g. development charges). Also, the Province is most likely to look favourably at additional funding for municipalities only if all other avenues have been explored, including the generation of revenues with better use of existing tools. It is outside of the scope of an economic development strategy to address the exact tools that must be in place. Rather, the economic development strategy should advocate on behalf of economic development agencies in the city to ensure that the proper tools are in place to fully realize revenues from new development and tax increases that economic development efforts produce. At present, this should be the highest priority fiscal constraint that EDW can assist with.

Examinations of organizational capacity for economic development in Winnipeg must also include a discussion of the Winnipeg Partnership Committee (WPC). The Winnipeg Partnership Committee was created to offer advisory services to the Board of Directors of EDW, in order to forge a culture of collaboration in the pursuit of economic development. The diversity of the committee is intended to allow discussion and action on the broad range of issues that impact the economic prospects of the city, and bring together the organizations and agencies that can create longer term prosperity. The WPC includes business, government (municipal, provincial, federal) and academic representatives:

• World Trade Centre Winnipeg

• Business Council of Manitoba

• Canadian Manufacturers and Exporters

• CentrePort Canada

• CentreVenture Development Corporation

• City of Winnipeg

• Economic Development Winnipeg Inc.

• Entreprises Riel

• IBM Canada

• Manitoba Agriculture, Food and Rural Development

• Manitoba Jobs and the Economy

• Manitoba Heavy Construction Association

• Manitoba Innovation Council

• Manitoba Mineral Resources

• PCL Constructors Canada Inc.

• Premiers Economic Advisory Committee

• Red River College

• University of Manitoba

• University of Winnipeg

• Winnipeg Airports Authority Inc.

• Winnipeg Chamber of Commerce

Where capacity falls short at EDW, the members of the WPC have the opportunity to enhance activities in their specific areas of concern related to economic development. However, the WPC has been characterized as primarily focused on networking and information sharing. This still provides considerable value to economic development discourse in the community, and is a key advantage for the city. In many other cities, this type of structure does not exist.

Under the new economic development strategy, there is little incentive to modify the WPC. However, there are opportunities to build on this structure to increase the existing capacity of EDW in working towards the economic development opportunities outlined in the strategy, especially with regards to implementing initiative-specific


strategies and activities that leverage the capacity of WPC members and other organizations in the city. The following section outlines potential opportunities to revise and re-orient the current organizational capacity to connect to the opportunities in the strategy.

3 .4 .2 NEW DIRECTIONS FOR PARTNERSHIPS

The WPC provides a strong base upon with to build a more collaborative economic development ecosystem in Winnipeg. The structure already brings together a wide range of players that have direct impacts on economic development. However, the WPC includes still only a subset of the full range of organizations focused on issues influencing economic development in the city. There is room to introduce a number of other organizations to pursue economic development under the City’s new strategic plan, especially within the three major areas of opportunity presented above: business and industrial, social and community development, and emerging and future opportunities.

New community partnerships and collaborative networks should build on the infrastructure of the WPC to develop a more community-wide approach to economic development. The first step is to use the existing structure of the WPC to better pursue partnerships and develop initiatives under the new economic development strategy. Where networking is a primary function of the larger group, smaller and initiative-based working groups should be created composed of current members of the WPC to better encourage collaborative working relationships focused on solutions in specific programming areas (i.e. international talent attraction, Aboriginal engagement, tourism product development, international economic development community partnerships, risk capital expansion, or innovative industry sector development). The new direction is not focused on formalizing the structure of the Winnipeg Partnership Committee, but rather using the existing structure as a venue to create smaller project-oriented working groups of organizations to engage in specific areas of economic development.

Consultations across the city have noted that collaboration on specific initiatives, rather than broader and ongoing collaboration, is a strength of the economic development organizations across the city. For that reason, smaller initiative-based working groups driven by the members of the WPC are recommended under the new strategy.

There are several objectives to the new directions in partnership and collaboration:

• Closer collaboration with organizations, businesses, and institutions (perhaps even those outside of the economic development space or outside of Winnipeg) to build more comprehensive project teams focused on specific initiatives.

• Network and capacity building within the city’s target sectors, their associated value chains, and the innovative industry sectors at the convergence of sector strengths.

• Service delivery expansion and enhancement in supportive areas like workforce development, entrepreneurial and small business support, and commercialization.

• Alignment of strategic objectives and actions at organizations across the city and Capital Region towards common goals for economic, social, and environmental prosperity.

• New and expanded funding support and assistance from public and private sector organizations.

EDW and the broader WPC will play the role of network orchestrator – maintaining the network of organizations that make up the WPC (as it does currently), but also the network of organizations, businesses, and institutions outside of the WPC (i.e. MMF/MEDO, FNPP, BIZs) that can be assembled into small ad-hoc working groups focused on specific areas of economic development. Again, many of these players may be outside of the city,


or perhaps outside of Canada. It will be EDW’s task to establish and maintain these relationships to ensure that collaboration can occur. Once specific initiatives are identified by EDW, the organization should work to facilitate collaboration between the required players by assembling the working group, and maintain a seat within the working group on behalf of the City of Winnipeg.



4Winnipeg has articulated a number of more aspirational goals for community development through the OurWinnipeg plan. The economic development strategy benefits from the presence of the plan, providing a foundational land use plan and community building framework upon which to build the economic development goals, objectives, and tactics needed to meet the social, economic, and environmental goals of the plan. With that in mind, specific goals have been developed to guide the City’s economic development activities over the next five years. The goals build on the concepts identified in the strategic directions presented above, and articulate the specific intended outcomes for the city in each of those strategic areas. The strategic objectives underneath those goals provide the performance standards for those goals, as well as establish what is specifically intended to be accomplished. Each of the objectives has been developed with consideration of four general areas of activity for EDW: increasing and leveraging existing capacity through partnerships, reorienting existing activities towards new high-value areas, aligning with directions in OurWinnipeg, and becoming a more globally-oriented and connected community.

This document, and the associated goals, objectives, and actions bring a new focus for economic development in the City of Winnipeg that directs the broad range of economic development partners towards common and mutually beneficial outcomes, while respecting the significant amount of work that has already been completed, and the momentum that currently exists in the city. The strategy is meant to prioritize opportunities, and provide the framework for the City and its partners to achieve high-value results from economic development investment.

The new economic development strategy has three broad goals for Winnipeg from 2013-2018:

1. An integrated and holistic ecosystem of economic development service delivery and programming that supports the local business community and offers connections to external markets and partners from around the globe.

2. A complete community that enables economic and environmental sustainability, while allowing new and existing residents to achieve personal and social prosperity.

3. A well-developed profile of infrastructure, services, and relationships that can respond to future uncertainty and emerging areas of economic opportunity.

StrategicGoals and Action Plan


This chapter provides a short elaboration of the goals for Winnipeg, and provides the strategic objectives and actions that are intended to achieve those goals. These strategic actions arise from a variety of sources, including those emerging directly from data and research on this project, from consultations with key community stakeholders within Winnipeg, from reviews of existing action strategies of organizations in the Winnipeg area, from best practices among external economic development organizations, and from the expert analysis and insight of both consultants and economic development professionals engaged with this process. Each strategic action is described in detail below, and fixed to a proposed implementation schedule over the five-year period. The objectives are each assigned a set of key performance indicators or metrics which may be used to assess progress on the implementation of the proposed actions.

In many cases, the City of Winnipeg and Economic Development Winnipeg (as well as YES! Winnipeg and Tourism Winnipeg within EDW) will be the lead on the initiative. Initiatives that are to be led by the City of Winnipeg are assigned to the City of Winnipeg (meaning the government, administration, and various departments of the City collectively undertaking the initiative), Winnipeg Planning, Property and Development (PP&D) (meaning the land use planning division of the City), or EDW (suggesting actions that will be led solely by the organization and its internal partners). However, EDW will not be the sole economic development service delivery organization in the city, especially given the need to create new partnerships. As such, other organizations have been implicated in the plan to offer direction on potential partners to assist with implementation or capacity expansion.

The action plan is not intended to replace annual work plans and business plans which drill down into the actual tactics and approaches that will be taken to fulfill the objectives and ultimately work to fulfilling the goals. Rather, it provides the broad strategic actions that should guide these specific tactics, as well as consideration of when each action should be integrated into annual work plans at EDW.

To ensure consistency between the City’s economic development strategy and the strategic direction from OurWinnipeg, each strategic objective for the economic development strategy has been related back to its foundational directions from the OurWinnipeg municipal development plan.


Winnipeg is already home to a strong profile of organizations providing a full spectrum of services and programs focused on economic development. However, generating economic development and prosperity in an increasingly connected world requires a more collaborative and networked approach from communities.

OurWinnipeg directs the City to create a more effectively networked system of services and organizations to support the prosperity of the community. In part, this relies on the maintenance of strong intergovernmental cooperation, such as with the Province, other local governments (across the region and across the world), Aboriginal governments and organizations, and the broad range of organizations that have an influence on areas like crime prevention, infrastructure renewal, taxation, regulatory overlap, and regional economic development. The networked system also depends on recognition and identification of public, private and community partners that have an influence on economic development, with the intent of collaborating with the full profile of those partners to leverage and advance economic advantages in the city and region (e.g. cultural diversity, corporate profile, higher education and research institutes, and multimodal transportation infrastructure). This strategic direction forms the basis for the goal of a more holistic and integrated ecosystem of service delivery and programming. However, the goals are also meant to support quality of life improvements for international newcomers and Aboriginals, support the generation of new local employment, increase productivity in local industries, and support more regional, efficient, and focused approaches to economic development.

The achievement of the goal requires a multi-faceted approach. It is rooted in the fact that the city has opportunities to support economic development in a number of more traditional business and industrial areas:

• Through its business community and the multinational, export-oriented, and trade-focused businesses and organizations that already call the city home. The economic strengths of the city based on its business community can also provide the basis for stronger educational or trade partnerships with other communities.

• Through growing national and ethnic communities and organizations in the city. The connections to countries of origin may produce new opportunities for trade, the attraction of skilled immigrants, or the development of sister cities or cultural partnerships.

OneGoal OneAn integrated and holistic ecosystem of economic development service

delivery and programming that supports the local business community and

offers connections to external markets and partners from around the globe .


• Through existing multimodal infrastructure, which offers physical ties to other areas of Canada and the world that can represent new opportunities for trade, export, investment, cultural exchange, and information sharing.

• Through research and academic organizations present in the community, which offer the potential to engage in a broader global discourse in a range of academic and practical issues, while promoting and improving the visibility of the city on a global scale and offering opportunities to access a global knowledge-base to which these organizations have access to.

• Through regional government partners, higher levels of government, and Aboriginal organizations that have mutual goals for economic development, social prosperity of the people they represent, and a stronger Capital Region.

Objective 1.1: Establish and leverage connections with local multinational firms, export-oriented businesses, entrepreneurs, and cultural organizations to establish new or stronger connections to international markets, attract new private sector investment, and attract skilled workers and entrepreneurs .

Recommended Actions Potential Partners

1.1.1 Engage in business retention and expansion activities to promote the city to external markets and monitor the potential for attraction of investment from within the city’s existing business base.

EDW, Winnipeg Chamber of Commerce, Province of Manitoba

(Jobs and the Economy), World Trade Centre Winnipeg

1.1.2 Engage with business and community organizations representing Winnipeg`s largest cultural communities to promote Winnipeg as a destination for skilled immigrants and entrepreneurs, develop joint programming and initiatives, and promote business development services at the City.

EDW, cultural business organizations (e.g. Manitoba Filipino Business

Council) and community organizations (e.g. Jewish Foundation of Manitoba)

1.1.3 Establish an annual calendar of trade and sector-based events and circulate it to economic development partners and local export-oriented businesses in order to create informal or ad hoc trade “missions” and shared promotional opportunities.

EDW, Winnipeg Chamber of Commerce, World Trade Centre

Winnipeg, Province of Manitoba (Jobs and the Economy)


1.1.4 Position the city as a leader in agribusiness, nationally and internationally.

EDW, National Research Council (NRC), University of Manitoba,

University of Winnipeg, Province of Manitoba (Agriculture, Food and Rural

Development)

Foundational Strategic Directions from OurWinnipeg:

• 01-3 Prosperity, Direction 3: Maintain strong intergovernmental cooperation. (p. 50)

• 03-1 Opportunity, Direction 7: Develop community directed strategies to support quality of life for our growing communities of international newcomers. (p. 77)

Objective 1 .2: Develop partnerships with key domestic and international jurisdictions to attract business development opportunities to the city, learn from and exchange best practices, and facilitate international trade .


1.2.1 Evaluate potential domestic and international economic or educational partnerships; explore current partnerships for additional opportunities.

EDW, Province of Manitoba (Jobs and the Economy), City of Winnipeg

1.2.2 Explore potential Canadian partnerships along major Atlantic and Pacific gateways, as a means of encouraging industrial and business opportunities related to the import and export of goods.

EDW, Federal Government (Asia Pacific Gateway Corridor Initiative,

Atlantic Gateway and Trade Corridor)

1.2.3 Establish new connections with inland and ocean port communities.

CentrePort Canada, EDW, Province of Manitoba (Jobs and the Economy),

DFAIT, Winnipeg Chamber of Commerce

1.2.4 Revitalize current, and evaluate potential, trade and information sharing opportunities along the Mid-Continent Trade Corridor.

EDW, World Trade Centre Winnipeg, Winnipeg Chamber of Commerce, Province of Manitoba (Jobs and the

Economy)




Objective 1 .3: Integrate economic and community development marketing, investment attraction, and community development initiatives into the activities of Winnipeg`s leading academic and research institutions .


1.3.1 Establish linkages to facilitate the attraction of sustainable development pilot projects, and identify emerging trends in sustainable community and economic development.

EDW, IISD, University of Manitoba, University of Winnipeg

1.3.2 Work to articulate a clearer positioning within niche target sectors and collaborate on strategic investment attraction initiatives.

EDW, Composites Innovation Centre, Richardson Centre for Functional

Foods and Nutraceuticals, Province of Manitoba (Agriculture, Food and Rural Development), NRC, DFAIT, Province of Manitoba (Jobs and the Economy)

1.3.3 Work to establish stronger links between business and innovative research and commercialization activities.

a) Identify supports for local businesses implementing new and innovative technologies.

EDW, University of Manitoba, University of Winnipeg, Red River

College, Province of Manitoba


• 01-3 Prosperity, Direction 4: Collaborate with all public, private and community economic development agencies to advance economic advantages. (p. 50)

• 01-3 Prosperity, Direction 6: Plan for a rising share of employment growth and productivity. (p. 51)

• 02-1 Sustainability, Key Direction: Establish partnerships with communities, businesses, and other public sector agencies to achieve joint goals towards a sustainable Winnipeg. (p. 65)


Objective 1 .4: Engage with higher levels of government, surrounding local governments, and Aboriginal government and non-governmental organizations to access and encourage new funding opportunities and align economic development activities towards areas of mutual positive impacts .


1.4.1 Collaborate with municipal governments comprising the Manitoba Capital Region to create a long-term economic development strategy for addressing global competitiveness.

EDW, City of Winnipeg, Province of Manitoba (Municipal Government), Capital Region: City of Selkirk, Town of Stonewall, RMs of Cartier, East St.

Paul, Headingley, Macdonald, Ritchot, Rockwood, Rosser, St. Andrews, St. Clements, St. Francois Xavier, Springfield, Tache, West St. Paul

1.4.2 Pursue intergovernmental cooperation around Aboriginal economic development and play a leadership role in identifying economic development activities of mutual interest.

MMF, Assembly of Manitoba Chiefs, EDW, City of Winnipeg, Aboriginal Chamber of Commerce, Business

Council of Manitoba, post-secondary institutions (Université de Saint-Boniface), Province of Manitoba,

Winnipeg Chamber of Commerce, Province of Manitoba (Aboriginal and

Northern Affairs)

1.4.3 Engage local Aboriginal organizations and identify areas for further business and skill development.

Assembly of Manitoba Chiefs, EDW, Province of Manitoba (Aboriginal and

Northern Affairs)


• 01-1c Key Directions for Specific City Areas – Capital Region, Key Direction: Acknowledging that mutual success will come from thinking and acting as a region, the City of Winnipeg will collaborate with the municipalities comprising the Capital Region to plan for a sustainable, vibrant, and growing region. (p. 40)


• 03-1 Opportunity, Direction 6: Foster opportunities for Aboriginal Winnipeggers, particularly youth, to obtain meaningful employment by building on current civic practices, processes, and community partnerships. (p. 77)


Objective 1 .5: Advocate for and facilitate new and expanded infrastructure, policies, and programming that support the development of the city as a key multimodal hub of domestic and international trade at the crossroads of North America .


1.5.1 Support a multimodal transportation master plan focused on the efficient intra- and inter-regional movement of goods destined for regional, domestic, or international markets.

City of Winnipeg (Property, Planning & Development), EDW, CentrePort

Canada, Winnipeg Airports Authority

1.5.2 Work with CentrePort Canada and the local business community to develop pilot projects that increase the export of Manitoba’s goods internationally, or that integrate locally developed container tracking technologies and innovations.

CentrePort Canada, EDW, Winnipeg Chamber of Commerce, Province of Manitoba (Jobs and the Economy), Province of Manitoba (Agriculture,

Food and Rural Development)

1.5.3 Collaborate on marketing initiatives targeted at investors, businesses, and site selectors.

EDW, CentrePort Canada, Winnipeg Airports Authority, local businesses


1.5.4 Work with the Winnipeg Airports Authority to identify and study investment and development opportunities for “corridor development” linking air traffic and passenger movement.

City of Winnipeg (Property, Planning & Development), Province of Manitoba (Municipal Government), Winnipeg

Airports Authority, CentrePort Canada


• 01-1b Key Directions for the Entire City, Key Directions for Connecting and Expanding Our Sustainable Transportation and Infrastructure Network (p. 32)

• 01-3 Prosperity, Direction 1: Provide efficient and focused civic administration and governance. (p.49)

• 01-3 Prosperity, Direction 2: Provide a predictable and cost effective business environment that promotes investment and growth. (p. 50)

• 01-3 Prosperity, Direction 4: Collaborate with all public, private, and community development agencies to advance economic advantages. (p. 50)

• 01-3 Prosperity, Direction 7: Create favourable conditions for development that is consistent with the principles and goals of complete communities. (p. 52)

Objective 1 .6: Create favourable economic and regulatory conditions for development that are consistent with the goals of the City and the local business community .


1.6.1 Ensure timely availability and information on the city’s available lands.

City of Winnipeg (Property, Planning & Development), EDW

1.6.2 Identify opportunities for the City to facilitate new private sector investments to derive greater revenues from taxes, development charges and job growth.

a) Determine an appropriate level of tax-supported, longer-term debt as part of the City’s capital plans.

City of Winnipeg (Property, Planning & Development), EDW, Province of Manitoba (Municipal Government)


1.6.3 Investigate opportunities to accelerate planning approval processes for strategic private sector investments.

City of Winnipeg (Property, Planning & Development), EDW, Province of Manitoba (Municipal Government), Partnership of the Manitoba Capital

Region

1.6.4 Pursue provincial endorsement of a growth-based revenue sharing formula to benefit communities in the Manitoba Capital Region.

City of Winnipeg, EDW, Province of Manitoba (Municipal Government), Winnipeg Chamber of Commerce, Manitoba Chambers of Commerce, Partnership of the Manitoba Capital

Region

1.6.5 Investigate innovative applications of sustainable financial and programming incentives across North America that can be applied to new investment in Winnipeg.

City of Winnipeg (Property, Planning & Development), EDW,

Winnipeg Chamber of Commerce, CentreVenture, Forks North Portage

Partnership (FNPP), Province of Manitoba (Municipal Government)


• 01-3 Prosperity, Direction 3: Maintain strong intergovernmental collaboration. (p. 50)

• 01-3 Prosperity, Direction 4: Collaborate with all public, private, and community economic development agencies to advance economic advantages. (p. 50)


• 01-3 Prosperity, Direction 7: Create favourable conditions for development that is consistent with the goals and principles of complete communities. (p. 52)


Winnipeg has the potential to be a model complete community. Its diversified economy and quality of life ensures that there are a vast array of assets and opportunities that allow almost anyone to live and prosper in the community. Further, its positioning as a regional centre for population and services – largely based on its heritage as a gateway to the west – ensures that the city will continue to accommodate significant shares of Manitoba’s jobs and population.

OurWinnipeg makes sustainability a key feature of municipal planning and development. This includes environmental sustainability, but also economic and social sustainability with the understanding that community prosperity will not be achieved unless all three areas are addressed. While the central focus of an economic development strategy is usually financial, a sole focus in this area neglects the need to support environmentally or socially-progressive ideas and initiatives that indirectly affect economic development. This includes community revitalization and quality of life, workforce development and engagement, and support for neighbourhood-level initiatives that are focused social initiatives to improve quality of life for the city and its residents. From that perspective, the foundational elements of OurWinnipeg that lead to achieving this goal are based in downtown and community revitalization, community prosperity, access to opportunity, and sustainability. The focus is a community that supports environmental sustainability and the social capacity of all of its residents, equally with economic sustainability.

To achieve the goal of a more socially, environmentally, and fiscally sustainable and complete community, as envisioned through OurWinnipeg, the economic development strategy recommends approaches from a number of areas:

• Through support for organizations that improve livability in the city, including improvements to the downtown area. The revitalization of downtown Winnipeg remains a key policy area of OurWinnipeg, mandating a focus on employment generation and quality of life through the economic development strategy.

• Through promotion of the city’s sophisticated arts, culture, and natural heritage, as a means of attracting new residents from across the globe to live and work in the community.

TwoA complete community that enables economic and environmental sustainability, while allowing new and existing residents to achieve personal and social prosperity .

Goal Two


• Through concerted efforts to ensure that the local workforce is productive and highly skilled, and new potential skilled workers are retained in the community. Winnipeg’s labour force must be prepared to compete in a new economy, and it is critical that the city attracts, develops, and retains the skilled workers that encourage the development and retention of high-value employment opportunities in the city.

• Through support for organizations that engage and assist the city’s Aboriginal and immigrant population with accessing employment opportunities, upgrading skills, or starting new business ventures.

• Through leadership in the identification and integration of environmentally sound and sustainable business practices in municipal service delivery, while promoting more sustainable practices across the business community.

Objective 2 .1: Establish support for organizations focused on community building activities that improve livability and vibrancy in the city, and make downtown Winnipeg a key element of the city`s identity, quality of life, employment, and tourism offering .


2.1.1 Support the phased, district, and cluster-based approach to developing a thriving and vibrant downtown.

a) Integrate investment attraction activities focused on knowledge-based industries.

b) Work collaboratively to facilitate the expansion and development of satellite educational, incubation, and research facilities.

CentreVenture, EDW, City of Winnipeg, Province of Manitoba, post-secondary institutions, the Forks North

Portage Partnership

2.1.2 Identify and support key projects that encourage and support downtown living, and facilitate strategic economic and cultural initiatives.

Downtown Council

2.1.3 Where necessary, act as a broker, facilitator or advocate for the City of Winnipeg, in discussions regarding the assembly of land and the public acquisition of buildings.

Downtown Council, landowners

2.1.4 Promote and support the development of downtown Winnipeg as a world-class centre for sports, conventions, education, tourism, entertainment and arts and culture.

EDW, CentreVenture, RBC Convention Centre Winnipeg, Winnipeg

Chamber of Commerce, Downtown Winnipeg Biz, the Forks North

Portage Partnership, Retail Merchants Association of Canada


2.1.5 Investigate a more formal structure for the city’s Downtown Council to facilitate the ongoing pooling of resources and efforts.

Downtown Council, EDW, CentreVenture


• 01-1c Key Directions for Specific City Areas – Downtown, Key Directions: Pursue a focused district, destination, and cluster approach to downtown development that will seek to:

» Provide predictability and opportunity for investment.

» Increase the variety of complementary experiences and opportunities.

» Help achieve a critical mass of people-oriented activity that is vital to ongoing econom-ic success. (p. 34)

• 01-1c Key Directions for Specific City Areas – Downtown, Key Directions: Facilitate the expansion of employment and educational opportunities in the downtown seeking to:

» Reinforce downtown’s role as a hub for business, for learning, and for commercial activ-ity.

» Capitalize upon downtown’s strategic advantages (p. 34)• 01-1c Key Directions for Specific City Areas – Downtown, Key Directions: Support the expanded

presence of arts, culture, sports, entertainment, and leisure throughout Downtown together with complementary services and attractions seeking to:

» Draw more people and create more extended hour activity strategically throughout downtown.

» Establish downtown as a place of vibrancy and celebration. (p. 35)• 01-3 Prosperity, Direction 4: Work with all public, private, and community economic

development agencies to advance economic advantages. (p. 50)

• 01-3 Prosperity, Direction 7: Create favourable conditions for development that are consistent with the goals and principles of complete communities. (p. 52).

• 01-3 Prosperity, Direction 8: Encourage activities beneficial to the Winnipeg economy. (p. 53)

• 02-3 Heritage, Direction 4: Conserve Downtown’s rich legacy of heritage resources that provide significant and sustainable development opportunities. (p. 70)


Objective 2 .2: Market the city`s quality of life assets in arts, culture, and natural heritage to creative and skilled workers, and visitors from across Canada and the world .


2.2.1 Develop and promote a positive and welcoming image of Winnipeg and the Manitoba Capital Region.

EDW, Province of Manitoba (Jobs and the Economy), Winnipeg

Chamber of Commerce, World Trade Centre Winnipeg, Partnership of the

Manitoba Capital Region

2.2.2 Update and maintain the cultural sector map and inventory of cultural heritage resources.

a) Identify opportunities to promote the network of organizations, institutions, and entrepreneurs.

Winnipeg Arts Council, EDW


• 01-3 Prosperity, Key Direction 4: Collaborate with all public, private, and community economic development agencies to advance economic advantages. (p. 50).

• 01-3 Prosperity, Direction 8: Encourage activities beneficial to the Winnipeg economy. (p. 53)

• 03-3 Creativity, Direction 6: Promote awareness of the richness of Winnipeg’s arts and culture within and outside of Winnipeg. (p. 86)

• 03-3 Creativity, Direction 8: Establish Winnipeg as a city of choice for artists and creative professionals. (p.86)


Objective 2 .3: Create the baseline infrastructure and relationships needed to position the city for employment growth, productivity improvements, and replacement of the retiring workforce .


2.3.1 Work with sector-based stakeholders from the Manitoba Capital Region to determine current and anticipated skill, productivity, and innovation gaps in the local economy.

a) Work with post-secondary institutions and local school boards to develop programming focused on high-priority skill development.

b) Build strong partnerships with other governments and agencies in support of joint research and innovation ventures, apprenticeships and internship programs in strategic industry sectors.

c) Support partner efforts to retain existing and experienced workers in the labour force.

EDW, Winnipeg Chamber of Commerce, local business community,

Capital Region governments, post-secondary institutions, local French and English school boards, Province

of Manitoba (Jobs and the Economy), Province of Manitoba (Education and

Advanced Learning)

2.3.2 Work with post-secondary institutions to enhance awareness, reputation, and recognition of the strengths of the city’s institutions.

Post-secondary institutions, EDW



• 01-3 Prosperity, Direction 6: Plan for a rising share of employment and productivity. (p. 51)


Objective 2 .4: Work collaboratively to develop new programming and training focused on attracting, retaining, and integrating new immigrants and their families .


2.4.1 Work with the Province of Manitoba through the Manitoba Provincial Nominee Program to retain skilled immigrant workers and recent graduates, and to support foreign-born entrepreneurs.

Province of Manitoba (Labour & Immigration) and (Multiculturalism

& Literacy), EDW, local business community, post-secondary

institutions

2.4.2 Build connections with cultural communities and organizations to promote business support and employment assistance services.

a) Develop strategies to reduce barriers for new immigrants seeking skill development and employment.

City of Winnipeg, EDW, Manitoba Immigrant Centre, SEED Winnipeg,

Chambers of Commerce

2.4.3 Make Winnipeg a centre of excellence in immigrant engagement and community integration.

Province of Manitoba (Labour and Immigration) and (Multiculturalism and

Literacy), EDW, Manitoba Immigrant Centre, Province of Manitoba (Jobs

and the Economy), Province of Manitoba (Education and Advanced

Learning)


• 03-1 Opportunity, Direction 2: Provide equitable access to municipal programs, services, and facilities. (p. 74)

• 03-1 Opportunity, Direction 7: Develop community-directed strategies to support quality of life for our growing communities of international newcomers. (p. 77)


Objective 2 .5: Work collaboratively to develop new programming and training focused on providing Aboriginal Winnipeggers, particularly youth, with meaningful opportunities for education, employment, and entrepreneurship .


2.5.1 Facilitate connections between Aboriginal training providers and educational institutions as a means of expanding and enhancing available programming to match current and anticipated needs in the local labour force.

EDW, MMF, Assembly of Manitoba Chiefs, Aboriginal Chamber of

Commerce, Province of Manitoba (Aboriginal and Northern Affairs), local business, local English and

French school boards, post-secondary institutions

2.5.2 Support efforts aimed at increasing educational opportunities in the province and supporting enrolment, particularly for Aboriginal youth, new immigrants and those returning to the school system.

Province of Manitoba (Aboriginal and Northern Affairs), MMF, Assembly of Manitoba Chiefs, EDW, SEED

Winnipeg

2.5.3 Support small business development efforts across the city in an effort to expand capacity and resources available to support Aboriginal business ventures.

MMF, Assembly of Manitoba Chiefs, Province of Manitoba (Jobs and the Economy), EDW, Business Council of

Manitoba

2.5.4 Work with Aboriginal organizations to develop a mentoring program composed of Aboriginal and non-Aboriginal business leaders and professionals aimed at engagement of Aboriginal youth.

MMF, Assembly of Manitoba Chiefs, Province of Manitoba (Aboriginal and Northern Affairs), EDW, SEED

Winnipeg, Business Council of Manitoba



• 01-3 Prosperity, Direction 6: Plan for a rising share of employment growth and prosperity. (p.51)

• 03-1 Opportunity, Direction 6: Foster opportunities for Aboriginal Winnipeggers, particularly youth, to obtain meaningful employment by building on current civic practices, processes, and community partnerships. (p. 77)


Objective 2 .6: Demonstrate visionary civic leadership on the integration of sustainable practices into city policies and initiatives while working collaboratively with the local business community to understand and integrate sustainable initiatives .


2.6.1 Advocate for the adoption of sustainable business practices and initiatives in the local business community, especially within the area of renewable energy.

a) Work to identify local and international technologies that support sustainability projects in Winnipeg.

b) Develop methods to support local business in their efforts to implement sustainable practices.

City of Winnipeg (Property, Planning & Development), EDW, IISD, Province of Manitoba (Jobs and the Economy),

Winnipeg Chamber of Commerce, local businesses, Manitoba Hydro

2.6.2 Support and promote sustainable products and processes developed by local businesses, or products and processes licensed to or distributed by local businesses.

City of Winnipeg, EDW, Winnipeg Chamber of Commerce, local

businesses


• 03-1 Prosperity, Direction 1: Provide efficient and focused civic administration and governance. (p.49)

• 03-1 Prosperity, Direction 5: Demonstrate visionary civic leadership and commitment to sustainable long-term planning. (p. 51)

• 01-3 Prosperity, Direction 6: Plan for a rising share of employment growth and prosperity. (p.51)

• 02-1 Sustainability, Key Direction: Incorporate sustainable practices into internal civic operations and programs and services. (p.65)

• 02-1 Sustainability, Key Direction: Establish partnerships with communities, businesses, and other public sector agencies to achieve joint goals towards a sustainable Winnipeg. (p. 65)


The diversity of Winnipeg’s business community and assets has served the city well over the last several decades, especially as traditional sectors of the economy restructured and realigned their processes to match with new economic conditions. This same diversity of sectors and assets offers the foundation for bold strategic planning over the longer term.

OurWinnipeg outlines a number of strategic directions regarding the type of city Winnipeg should strive to be over the longer-term. The plan envisions a higher share of employment and productivity in local industries and labour force and greater support for the creative industries and workers that drive innovation in the community. Underlying this is the development and application of innovative and efficient municipal structures and activities that are sustainable over the longer-term, and the alignment of transportation and employment land capital planning with the needs of productive and innovative sectors of the economy. Further, OurWinnipeg directs for the development of a more regional and collaborative environment for economic development, matching with the increasing regionalization of economic competitiveness and the emerging need to maintain a strong regional network of partners, suppliers, and customers. Along with the diversified economy, these foundational elements of OurWinnipeg form the basis for longer term economic development strategic planning.

From that perspective, planning for emerging and future opportunities over the longer term in the economic development strategy is intended to be accomplished through several broad directions:

• Through coordinated approaches to infrastructure development, and strategic investment in communications technology that allow for a more responsive approach to economic development from the municipality.

• Through efforts focused on northern development and goods movement, which position the city as a knowledge-based and professional services centre for surrounding northern and resource development.

• Through the development of stronger capacity to address barriers to innovation in the city, while encouraging the emergence of new sectors of the economy that leverage the city’s existing industrial strengths (e.g. advanced materials, biomaterials and bioproducts, agri-food and nutraceuticals and functional foods, interactive and digital media, and alternative and renewable energy).

ThreeA well-developed profile of infrastructure, services, and relationships that can respond to future uncertainty and emerging areas of economic opportunity .

Goal Three


• Through the development of more cluster-based approaches to supporting innovation in the city, including the development of networked value chains and the development of incubation infrastructure to encourage small business development and entrepreneurship in innovative industry sectors.

Objective 3.1: Develop more efficient and focused civic administration and governance that plans for longer-term sustainability, economic opportunity, and innovative technology advancement .


3.1.1 Ensure capital investment plans are aligned with longer term planning and economic development objectives.

City of Winnipeg, EDW

3.1.2 Create working groups focused on specific projects developed under the City’s economic development strategy.

EDW, members of the Winnipeg Partnership Committee

3.1.3 Investigate global best practices in civic engagement of the local business community and apply innovative processes to improve City-to-business communications.

EDW, Winnipeg Chamber of Commerce, local businesses

3.1.4 Make strategic investments to promote and facilitate the integration and sharing of data between departments and the release of economic development data for the community.

City of Winnipeg, EDW, New Media Manitoba, Province of Manitoba


• 01-3 Prosperity, Direction 1: Provide efficient and focused civic administration and governance. (p. 49)

• 01-3 Prosperity, Direction 2: Provide a predictable and cost-effective business environment that promotes investment and growth. (p. 50)

• 03-3 Creativity, Direction 7: Grow support for creative industries and entrepreneurs. (p.86)


Objective 3 .2: Connect with government, transportation and resource development business leaders in Manitoba, Nunavut, and Ontario to effectively position Winnipeg as a hub for industrial and knowledge-based activities in resource development and transportation in the north .


3.2.1 Facilitate the creation of a regional trade and procurement network.

a) Investigate the potential for municipal partnerships with strategic communities in Northwestern Ontario and Nunavut to encourage mining sector activity and supply chain opportunities.

Province of Manitoba (Jobs and the Economy), EDW, Province of Manitoba (Mineral Resources),

provincial governments, local mining, construction, and professional

services businesses, Prospectors and Developers Association of Canada

(PDAC), World Trade Centre Winnipeg

3.2.2 Create a comprehensive inventory of professional and technical/industrial services businesses in the mining and oil and gas sector and the environmental sector.

a) Establish mining and resource sector marketing materials that highlight the professional and technical capabilities of businesses across the Manitoba Capital Region.

EDW, Winnipeg Chamber of Commerce, Province of Manitoba

(Jobs and the Economy), Province of Manitoba (Mineral Resources)

3.2.3 Create a comprehensive inventory of professional and technical/industrial services businesses in the mining and oil and gas sector and the environmental sector.

CentrePort Canada, EDW, landowners, Province of Manitoba (Jobs and the

Economy), Province of Manitoba (Mineral Resources), Canadian

Association of Mining Equipment and Services for Export, Prospectors and Developers Association of Canada

3.2.4 Work collaboratively with stakeholders to assess the potential for the development of the Arctic Gateway through the Port of Churchill, including the upgrading of infrastructure, new investments in technology and trade route development.

Churchill Gateway Development Corporation (CGDC), OmniTRAX,

Manitoba Chambers of Commerce, EDW, Province of Manitoba,

CentrePort Canada, Province of Manitoba (Jobs and the Economy)


Objective 3 .3: Build out the capacity for education, training, commercialization, and entrepreneurship in knowledge-based and innovative sectors .


3.3.1 Create full sector profiles and inventories for each of the city’s innovative industry sectors outlined in section 3.3.2.

a) Create sector-based working groups to identify synergies and establish relationships across industry sectors.

EDW, sector associations

3.3.2 Work with post-secondary institutions to create local centres of excellence within the city’s innovative industry sectors (renewable energy, nutraceuticals, bioproducts (biocomposites)).

a) Attract internationally-recognized faculty and create specialized programming to develop the skillsets and labour force required.

Post-secondary institutions, sector-based working groups (e.g.

Composites Innovation Centre, New Media Manitoba), EDW, Winnipeg

Chamber of Commerce

3.3.3 Support efforts to develop strategies focused on innovation in high growth and export-oriented SMEs.

Manitoba Innovation Council, EDW, Province of Manitoba (Jobs and

the Economy), World Trade Centre Winnipeg


3.3.4 Work to identify and address barriers to innovation and commercialization.

a) Assist with the integration of locally developed and available ICT applications into non-ICT sectors of the local economy.

Manitoba Innovation Council, EDW, Province of Manitoba (Jobs and the

Economy), post-secondary institutions, Information Communication

Technologies Association of Manitoba (ICTAM)

3.3.5 Connect with small business support organizations, research organizations, and post-secondary institutions to identify a robust pipeline of innovative research projects and researchers.

a) Evaluate local and regional venture capital and angel investment opportunities to identify gaps in local availability.

b) Identify and connect with external venture capital and angel investment networks focused on the city’s innovative industry sectors.

a) Work with the Province of Manitoba to create small investment programs to spur private investment, or incentives for early-stage investment in innovative companies and entrepreneurs.

EDW, post-secondary institutions and research and commercialization

structures, NRC, Province of Manitoba (Jobs and the Economy)

Foundational Strategic Direction from OurWinnipeg:






Objective 3 .4: Develop cluster-based initiatives in the city`s innovative industry sectors through value chain development, cross-sectoral collaboration, physical spaces, and support for innovative public and private research and development .


3.4.1 Establish business networks and investment attraction initiatives focused on the high-value suppliers to multiple target industry sectors.

a) Establish stronger connections between industries supporting multiple sector supply chains to identify opportunities to participate as suppliers to growing innovative industry sectors.

b) Develop targeted investment attraction or small business support programs to increase the capacity of smaller industry supply chains.

EDW, Province of Manitoba (Jobs and the Economy), Canadian Manufacturers and Exporters

3.4.2 Building on models developed at Canadian post-secondary institutions (e.g. University of Waterloo) explore the potential for the development of a suite of virtual incubation services provided by the City and sponsored by local businesses and academic institutions, but without the need for physical spaces.

a) Create an inventory of available incubation services, to assess any gap areas in business development programming and services.

b) Assess the opportunity to develop specialized programming focused on the city’s innovative industry sectors and programming that can complement existing services available.

EDW, post-secondary institutions, Province of Manitoba (Jobs and the

Economy), City of Winnipeg

3.4.3 Work with post-secondary institutions and existing incubation facilities to assess the business case for additional incubation capacity, and identify the public or private sector investment required to ensure sustainable operations.

Post-secondary institutions, EDW, Winnipeg Chamber of Commerce,

CentreVenture, local businesses


• 01-1c Key Directions for Specific City Areas – Downtown, Key Direction: Facilitate the expansion of employment and educational opportunities in the downtown seeking to:

» Reinforce the downtown’s role as a hub for business, for learning, for government, and for commercial activity.

» Capitalize on downtown’s strategic advantages. (p. 34)



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Economic Development Strategy | 2013-2017

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Economic Development Strategy 2013 2017

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