+ All Categories
Home > Documents > July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development...

July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development...

Date post: 13-May-2020
Category:
Upload: others
View: 0 times
Download: 0 times
Share this document with a friend
83
1. Call to Order 2. Adoption of Agenda Proposed Resolution #1 Moved by: Seconded by: THAT the Agenda as prepared for the Economic Development Advisory Committee meeting of July 9, 2019, be adopted. 3. Disclosures of Pecuniary Interest and the General Nature Thereof 4. Adoption of Minutes of Previous Meeting (Attached) Proposed Resolution #2 Moved by: Seconded by: THAT the Minutes of the Economic Development Advisory Committee meeting dated June 11, 2019, be approved. 5. Presentations/Deputations 6. Information Items 7. General Business & Reports 7.1. Monthly Project Updates (Attached) 7.2. Community Strategic Plan 7.2.1. Excellence in Local Government 7.2.2. Economic Sustainability 7.2.3. Demographic Balance 7.2.4. Culture and Community 7.3. Tillsonburg Hydro Inc 7.4. Town Hall Task Force 7.5. Indo-Canadian Business Chamber Mission Visit to Tillsonburg Summary 7.6. Economic Development Strategy Implementation Status 7.7. High Tech Manufacturing Sub-cluster Action Plan (Attached) 8. Community Organization Updates 8.1. Downtown Business Improvement Association 8.2. Tillsonburg District Chamber of Commerce 8.3. Tillsonburg District Real Estate Board (Attached) The Corporation of the Town of Tillsonburg Economic Development Advisory Committee July 9, 2019 7:30 AM Board Room, Customer Service Centre 10 Lisgar Ave, Tillsonburg AGENDA
Transcript
Page 1: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

=

1. Call to Order

2. Adoption of AgendaProposed Resolution #1Moved by:Seconded by:THAT the Agenda as prepared for the Economic Development Advisory Committee meetingof July 9, 2019, be adopted.

3. Disclosures of Pecuniary Interest and the General Nature Thereof

4. Adoption of Minutes of Previous Meeting (Attached)Proposed Resolution #2Moved by:Seconded by:THAT the Minutes of the Economic Development Advisory Committee meeting dated June 11, 2019, be approved.

5. Presentations/Deputations

6. Information Items

7. General Business & Reports7.1. Monthly Project Updates (Attached) 7.2. Community Strategic Plan

7.2.1. Excellence in Local Government 7.2.2. Economic Sustainability 7.2.3. Demographic Balance 7.2.4. Culture and Community

7.3. Tillsonburg Hydro Inc 7.4. Town Hall Task Force 7.5. Indo-Canadian Business Chamber Mission Visit to Tillsonburg Summary 7.6. Economic Development Strategy – Implementation Status 7.7. High Tech Manufacturing Sub-cluster Action Plan (Attached)

8. Community Organization Updates8.1. Downtown Business Improvement Association 8.2. Tillsonburg District Chamber of Commerce 8.3. Tillsonburg District Real Estate Board (Attached)

The Corporation of the Town of Tillsonburg

Economic Development

Advisory Committee

July 9, 2019

7:30 AM

Board Room, Customer Service Centre

10 Lisgar Ave, Tillsonburg

AGENDA

Page 2: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019

8.4. Physician Recruitment

9. Correspondence9.1. None

10. Other Business

11. Round table

12. Next MeetingTuesday, August 13, 2019 at 7:30 a.m. in the Board Room at the Customer Service Centre,10 Lisgar Ave, Tillsonburg, ON.

13. AdjournmentProposed Resolution #3Moved by:Seconded by:THAT July 9, 2019 Economic Development Advisory Committee meeting be adjourned at_____ a.m.

Page 3: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

The Corporation of the Town of Tillsonburg

Economic Development

Advisory Committee

June 11, 2019 7:30 a.m.

Boardroom, Customer Service Centre 10 Lisgar Ave, Tillsonburg

MINUTES

Present: Andrew Burns, Councillor Deb Gilvesy, Lisa Gilvesy (Arrived at 7:39 a.m.), Jesse Goossens, Jim Hayes, Kirby Heckford (Arrived at 7:48 a.m.), Mayor Stephen Molnar, Lindsay Morgan-Jacko, Jeff Van Rybroeck, Steves Spanjers (Arrived at 7:34 a.m.), Collette Takacs, Lindsay Tribble, Cedric Tomico and John Veldman. Regrets: Ashton Nembhard and Randy Thornton. Also Present: Amelia Jaggard, Legislative Services Coordinator Cephas Panschow, Development Commissioner Regrets: David Calder, Chief Administrative Officer 1. Call to Order

The meeting was called to order at 7:32 a.m.

2. Adoption of Agenda Proposed Resolution #1 Moved by: John Veldman Seconded by: Andrew Burns THAT the Agenda as prepared for the Economic Development Advisory Committee meeting of June 11, 2019, be adopted. Carried.

3. Disclosures of Pecuniary Interest and the General Nature Thereof There were no disclosures of pecuniary interest declared.

4. Adoption of Minutes of Previous Meeting Proposed Resolution #2 Moved by: Jim Hayes Seconded by: Collette Takacs THAT the Minutes of the Economic Development Advisory Committee meeting dated May 14, 2019, be approved. Carried.

Page 4: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

Committee: Economic Development Advisory Committee Page - 2 - of 5 Date: June 11, 2019 5. Presentations/Deputations 6. Information Items

7. General Business & Reports

7.1. Monthly Project Updates

Steve Spanjers arrived at 7:34 a.m.

Awaiting detailed design for Clearview Dr S and SWM Pond from consultant for review prior to the tender being released. Staff noted that there has been significant interest in the industrial properties at the Van Norman Innovation Park. The process to obtain a realtor has not been considered at this time. The Town has received three full submissions for the Town Hall RFP. The Town Hall Task Force will meet next week.

Lisa Gilvesy arrived at 7:39 a.m.

7.2. Community Strategic Plan 7.2.1. Goals for Committee Term

A review of the Economic Development Strategy is targeted for Q4. There is $10,000 reserved to obtain a consultant. Development Commissioner to provide an update on the status of all the recommendations contained in the Economic Development Strategy for members to review. It was suggested to include the four themes identified in the Community Strategic Plan as standing Agenda items.

7.3. First Quarter Economic Development and Marketing Results Development Commissioner provided an overview of the First Quarter Economic Development and Marketing Department Results. Under the Community Improvement Plan, Council has approved the first Accessibility grant for enhancements to a downtown business’ entrance. A report regarding the Retail Gap Analysis Report will be brought to Council recommending that Council adopt the report in principal and that the report be used to guide recruitment efforts.

Kirby Heckford arrived at 7:48 a.m. A Municipal Access Agreement between the Town and Exculink Telecom Inc. will be brought forward at the Council meeting on Thursday, June 13, 2019.

Page 5: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

Committee: Economic Development Advisory Committee Page - 3 - of 5 Date: June 11, 2019

It was suggested that the Vacant 5 Year Rebates program be implemented prior to September 2019.

7.4. Indo-Canadian Business Chamber Mission Visit to Tillsonburg The Indo-Canadian Business Chamber of Commerce will be touring through Tillsonburg on Wednesday, June 12, 2019, to consider real estate investments, manufacturing relationships, etc. Staff to provide a summary of the tour at the next meeting.

7.5. Tillsonburg Hydro Inc Town Council will receive the THI Board of Directors recent decision, as information at the Council meeting on Thursday, June 13, 2019. Motion Moved by: Mayor Molnar Seconded by: Deb Gilvesy THAT the committee strike a subcommittee consisting of Andrew Burns, Kirby Heckford, Deb Gilvesy, Lindsay Tribble, Cedric Tomico and Jim Hayes, for the purpose of reviewing the Tillsonburg Hydro Inc initiative, AND THAT the subcommittee be supported in information gathering, AND THAT the subcommittee report back to the committee after three meetings. Carried.

7.6. Town Hall Task Force The committee toured Municipal Administration buildings for the Township of Norwich, Norfolk County and Haldimand County in order to learn best practices

8. Community Organization Updates 8.1. Downtown Business Improvement Association

The Beautification Plan has been implemented. The BIA is still tweaking the program in response to feedback.

8.2. Tillsonburg District Chamber of Commerce Registration is still open for the TDCC Golf Tournament on June 20, 2019. The Chamber will be bringing forward a policy for “enhancing tariff claims and processes” to the Canadian Chamber in September 2019. Ministry of Labour is currently doing a review of WSIB; the Chamber plans to take a position on this. The next Business After Five event will be on June 26, 2019 at DeGroote-Hill Chevrolet Buick GMC.

Page 6: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

Committee: Economic Development Advisory Committee Page - 4 - of 5 Date: June 11, 2019

Deb Gilvesy noted that she will be participating in a phone conference regarding a study of taxation on Tobacco initiated by the Ontario Chamber of Commerce.

8.3. Tillsonburg District Real Estate Board Staff will circulate Report DCS 19-15 2019 First Quarter Building, Planning and By-Law Services Results.

8.4. Physician Recruitment There have been two recent recruitments in the internist and specialist area. These recruitments will support the health units but will primarily serve the Tillsonburg District Memorial Hospital.

9. Correspondence 9.1. None

10. Other Business

11. Round table

The Tillsonburg District Memorial Hospital Foundation is currently seeking an Executive Director, approximately 30 hours per week. A Development Charges by-law will be brought forward at the Council meeting on Thursday, June 13, 2019. Mayor Molnar noted that there is an opportunity for a satellite location for a regional nurse practitioner clinic. At the Association of Municipal Managers, Clerks and Treasurers of Ontario (AMCTO) conference this week the Minister of Municipal Affairs and Housing noted no further information from his office or the Province regarding the Regional Government Review will be received until October 2019. A report addressing the issues, concerns and opportunities regarding the Summer Place building will be brought forward to Council on Monday, June 24, 2019. 101 Spruce St. has a conditional offer. 51 Clearview Drive is currently listed exclusive at $6.5 million (approximately $50 per square foot). Tillsonburg Turtlefest is this coming weekend June 14-16, 2019.

12. Next Meeting Tuesday, July 9, 2019 at 7:30 a.m. in the Board Room at the Customer Service Centre, 10 Lisgar Ave, Tillsonburg, ON.

Page 7: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

Committee: Economic Development Advisory Committee Page - 5 - of 5 Date: June 11, 2019 13. Adjournment

Proposed Resolution #3 Moved by: Cedric Tomico Seconded by: Jim Hayes THAT the June 11, 2019 Economic Development Advisory Committee meeting be adjourned at 9:26 a.m. Carried.

Page 8: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

Monthly Project Update – (June 2019)

Prepared for the Economic Development Advisory Committee

Project Name/Reference Status

Downtown Business Development Report to Council on July 8

Van Norman Innovation Park – Hwy

3 Crossing

Crossing work for sanitary sewer casing and pipe completed. Working

on final project review and “as-built” drawings.

Awaiting detailed design for Clearview Dr S and SWM Pond from

consultant for review.

Future Industrial Growth Consider listing the properties on MLS and/or using the Town’s online

tendering software.

Post-Secondary Education

Enhancements

Working with TVDSB to expand experiential learning opportunities in

conjunction with the high school. Positive dialogue to date. Considering

alternative funding opportunities for expanded centre in Town. Citizen

education/training needs survey has been released.

Town Hall Project Released January 18, 2019 with a revised deadline of June 6, 2019.

Three proposals have been submitted and are being reviewed by the

committee. Trying to keep to original schedule for review and public

consultation, but there some additional time may be needed.

Wayfinding Signage Update Comprehensive plan being developed and will be brought forward to

Council in Q3.

Page 9: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 1

Page 10: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 2

Table of Contents

Executive Summary ............................................................................................................... 4

1. Introduction ................................................................................................................. 6

1.1 Study Objective ........................................................................................................................ 6 1.2 Study Process............................................................................................................................ 6 1.3 Study Area ................................................................................................................................ 7 1.4 Defining Tillsonburg’s Manufacturing Sector ........................................................................... 8

2. Research and Analysis................................................................................................... 9

2.1 Planning Context .................................................................................................................... 10 2.2 Industry 4.0 and Implications for Tillsonburg ......................................................................... 11 2.3 Sector Analysis ........................................................................................................................ 12 2.4 Sub-Cluster Model Review ..................................................................................................... 17

3. Consultation ............................................................................................................... 18

3.1 Stakeholder Interviews ........................................................................................................... 18 3.2 Stakeholder Workshop ........................................................................................................... 19 3.3 SWOT Assessment .................................................................................................................. 19

4. Value Proposition ....................................................................................................... 22

4.1 Low-Cost Operating Environment .......................................................................................... 22 4.2 Growing Employment Base .................................................................................................... 23 4.3 A Diverse Local Industry Base ................................................................................................. 23 4.4 A Strong Potential for Innovation ........................................................................................... 24 4.5 Supportive Local Government ................................................................................................ 24

5. Manufacturing Sub-Cluster Models ............................................................................. 24

5.1 Manufacturing Acceleration Program (MAP) ......................................................................... 24 5.2 Smart Industry Field Lab Model ............................................................................................. 25 5.3 Opportunity Identification...................................................................................................... 27 5.4 Manufacturing Sub-Cluster Model for Tillsonburg................................................................. 29

6. Action Planning/Recommendations ............................................................................ 31

Appendix I - Manufacturing Sector Analysis and Cluster Model Review Report ..................... 31

Page 11: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 3

About This Report

This High-Tech Manufacturing Sub-Cluster Action Plan report concludes the results of the research and consultation undertaken to provide the Town of Tillsonburg with a high-tech manufacturing cluster framework. Section 3 and Section 4 of the report includes key insights garnered from the research and analysis phase and the consultation phase. Section 5 details the value proposition for the Town as it relates to the development of a cluster initiative. Section 6 provides an action plan and recommendations that Tillsonburg can capitalise on to attract, support and grow investment in the manufacturing sector.

Page 12: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 4

Executive Summary Study Objective

This study was completed to provide the Town of Tillsonburg with a framework to support the growth and development of a high-tech manufacturing sub-cluster. It provides a clear and accurate description of the town’s current manufacturing subsectors and reflects input from local business, senior levels of government and the stakeholder community to highlight a unique sub-cluster development opportunity for the Town of Tillsonburg. The study includes a series of next steps to foster the sub-cluster and recommendations to attract, support and grow investment in the manufacturing sector.

Study Process

This High-Tech Manufacturing Sub-Cluster Action Plan started in November 2018 and had been implemented in five phases, as seen below.

▪ Phase I – Project Initiation ▪ Phase II – Research & Analysis ▪ Phase III – Consultation ▪ Phase IV – Sub-Cluster Model Development ▪ Phase V – Sub-Cluster Action Plan & Reporting

The Planning Landscape

The Town of Tillsonburg has long recognised the importance of the manufacturing sector in growing the local and regional economy. The 2008 Economic Strategy for the Town of Tillsonburg identified priority recommendations for creating the desired future state for manufacturing in the Town of Tillsonburg. This included support for the development of key economic clusters, particularly in high value-added auto-related production. More recently, the Town partnered with Isah International B.V, to implement the Manufacturing Accelerator Program (MAP) to support the development of a manufacturing cluster through a series of pilot projects.

A Statistical Portrait of Tillsonburg’s Manufacturing Sector

The study examined the size, composition, and growth of Tillsonburg’s manufacturing sector labour force, businesses and worker trends. Some highlights from the statistical analysis follow.

▪ In 2018, Tillsonburg had the highest proportion of resident labour force employed in the manufacturing sector at 33% compared to 20% in the Tri-County and 9% in Ontario.

▪ Over the past ten years, Tillsonburg’s manufacturing employment base grew by 48% (an increase of 1,078 jobs), from 2,188 jobs in 2009 to 3,266 jobs in 2018.

▪ A total of 45 businesses (4% of total businesses) were registered manufacturing businesses in Tillsonburg in 2018. Of the 45 businesses, 26 relate to advanced manufacturing.

▪ Tillsonburg’s high impact industries in the manufacturing sector are those with a high potential for automation and include Transportation equipment manufacturing, Machinery manufacturing,

Page 13: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 5

Fabricated metal product manufacturing and Electrical equipment, appliance and component manufacturing.

Sub-Cluster Model Review

A key element of the research for the High-Tech Manufacturing Sub-Cluster Action Plan was a best practice review to learn from existing cluster initiatives across North America and around the world. The review identified that to ensure cluster success; the following factors need to be focussed on:

▪ Unique Industry Opportunity ▪ Partnerships ▪ Co-Opetition ▪ Long-Term Focus ▪ Community Champions ▪ Central Hub

Sector Consultation and SWOT Assessment

To gain community input and secure continued support for Tillsonburg’s manufacturing sector, a consultation program with the business community and local stakeholders was conducted, which included:

▪ Stakeholder Interviews – interviews with approximately 15 stakeholders in the sector as well as industry partners

▪ Industry Workshop - with the business community and community stakeholders

To further inform the action plan and recommendations, a SWOT (strengths, weaknesses, opportunities and threats) assessment of the manufacturing sector was completed using insights from the sector analysis and the consultation exercises that were completed.

Action Planning

The primary focus of the High-Tech Manufacturing Sub-Cluster Action Plan was to build a strong body of knowledge to inform subsequent research and the development of a high-tech manufacturing cluster framework. In accordance with this, recommendations are provided to help advance the High-Tech Manufacturing Sub-Cluster.

Page 14: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 6

1. Introduction

1.1 Study Objective

This study was completed to provide the Town of Tillsonburg with a framework to develop a high-tech manufacturing sub-cluster. It provides a clear and accurate description of the town’s manufacturing subsectors and reflects the input of business, senior levels of government and community stakeholders. The study includes a series of next steps to foster the cluster and recommendations to attract, support and grow investment in the manufacturing sector.

Specific goals of the study were to:

▪ examine the local and regional context as it relates to the development of a manufacturing cluster/sub-cluster;

▪ provide a sector profile of the manufacturing sector that examined the growth and workforce implications/challenges and skills;

▪ inform sub-cluster development by conducting a review of existing manufacturing clusters, the policy framework for clusters, particularly, best practices that are applicable for Tillsonburg and Southwestern Ontario;

▪ examine the suitability of the Town’s Manufacturing Acceleration Program (MAP) to support the growth and development of the manufacturing sub-cluster;

▪ analyse and evaluate the Field Lab Model of education/collaboration and determine its suitability for Tillsonburg’s sub-cluster development; and

▪ identify linkages to post-secondary education institutions and other partners and validate potential involvement with this initiative.

1.2 Study Process

This study followed five interconnected phases, as illustrated below.

Phase I

Project Initiation

Phase II

Research & Analysis

Phase III

Consultation

Phase IV

Sub-Cluster Model Development

Phase V

Sub-Cluster Action Plan & Reporting

Page 15: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 7

▪ Phase II – Research & Analysis. Includes a review of Town’s existing planning documents and policies, manufacturing sector overview and review of existing cluster initiatives.

▪ Phase III – Consultation. Involved telephone interviews and an industry workshop with a range of stakeholders including local businesses, community organizations, sector associations and other industry partners.

The results of Phase II – Research & Analysis and Phase III – Consultation were used to inform the subsequent phases of the study. The results were used to identify the strengths, weakness, opportunities, and threats for Tillsonburg’s manufacturing sector. Furthermore, it provided a firm basis of the resources available in the community and applicability to respond to Industry 4.0. Based on these insights, the manufacturing cluster/sub-cluster model and subsequent action plans were developed.

▪ Phase IV – Sub-Cluster Model Development. Includes Tillsonburg’s value proposition as it relates to the development of a manufacturing cluster, the best and most appropriate opportunities for the development of the cluster and the steps required to develop an appropriate manufacturing cluster.

▪ Phase V – Sub-Cluster Action Plan & Reporting. Development of distinct action plans for consideration based on research findings and stakeholder input.

Manufacturing Sector Analysis and Cluster Model Review Report

An interim Manufacturing Sector Analysis and Sub-Cluster Model Review Report was provided to the Town of Tillsonburg in February 2019 containing the results of Phase II – Research & Analysis. This report is provided in Appendix I.

1.3 Study Area

The Town of Tillsonburg with 15,872 residents and 1,194 registered businesses has a diverse economy comprised of manufacturing, retail, health care, accommodation and food services and construction1. The Town, located in Oxford County, is highly integrated into a regional tri-county economy of 309,627 people2 and is located at the convergence of Oxford, Elgin and Haldimand-Norfolk counties. Tillsonburg’s geographic location at about 50 kilometres southeast of London, on Highway 3 at the junction of Highway 19, with convenient access to Highways 401 and 403, positions it in the middle of one of the most diverse and productive industrial regions in Southwestern Ontario. Due to longstanding efforts by the Town and with support from both the Federal and Provincial Governments, the Town has successfully transitioned its economy away from the Tobacco industry, and these combined efforts have resulted in the Town being a regional leader in industry services.

1 Statistics Canada, 2016 Census of Population and 2018 Canadian Business Counts. 2 Statistics Canada, 2016 Census of Population.

Page 16: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 8

Figure 1: Town of Tillsonburg Location Map, 2018

Source: Town of Tillsonburg. Adapted by MDB Insight, 2019

1.4 Defining Tillsonburg’s Manufacturing Sector

Using the North American Industry Classification System (NAICS) Canada 2012, the manufacturing sector comprises establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Related activities, such as the assembly of the component parts of manufactured goods; the blending of materials; and the finishing of manufactured products are also treated as manufacturing activities. The sector is grouped under 21 sub-sectors ranging from metal manufacturing to miscellaneous manufacturing such as medical equipment and office supplies.

Page 17: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 9

Manufacturing Subsectors

▪ Food manufacturing

▪ Beverage and tobacco product manufacturing

▪ Textile mills

▪ Textile product mills

▪ Clothing manufacturing

▪ Leather and allied product manufacturing

▪ Wood product manufacturing

▪ Paper manufacturing

▪ Printing and related support activities

▪ Petroleum and coal product manufacturing

▪ Chemical manufacturing

▪ Plastics and rubber products manufacturing

▪ Non-metallic mineral product manufacturing

▪ Primary metal manufacturing

▪ Fabricated metal product manufacturing

▪ Machinery manufacturing

▪ Computer and electronic product manufacturing

▪ Electrical equipment, appliance and component manufacturing

▪ Transportation equipment manufacturing

▪ Furniture and related product manufacturing

▪ Miscellaneous manufacturing

Advanced Manufacturing

Advanced manufacturing is a subset of the overall manufacturing sector. However, there is no clear or standardised definition to describe what it includes. It is generally accepted that advanced manufacturing relates to establishments that use advanced processes in the production of goods as well as establishments that produce complex goods, such as electronics and vehicles. The NAICs defined as the advanced manufacturing subset in this report is thus related to both advanced processes and advanced goods as they relate to Tillsonburg.

Advanced Manufacturing Subsectors

▪ Chemical manufacturing

▪ Plastics and rubber products manufacturing

▪ Fabricated metal product manufacturing

▪ Machinery manufacturing

▪ Computer and electronic product manufacturing

▪ Electrical equipment, appliance and component manufacturing

▪ Transportation equipment manufacturing

▪ Medical equipment and supplies manufacturing

Note: The terms Advanced Manufacturing and High-Tech Manufacturing are the same and used interchangeably in the report.

Page 18: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 10

2. Research and Analysis

2.1 Planning Context

A document review of relevant initiatives and municipal strategies was completed to provide a clear picture of the larger planning context in Tillsonburg and the surrounding region as it relates to the development of the High-Tech Manufacturing Sub-Cluster Action Plan.

A full examination of the planning context is set out in Appendix I under Section I – Background Review of the Sector Analysis and Cluster Model Review Report. Key insights that emerged from the review include:

Support for the Manufacturing Sector

The 2008 Economic Strategy for the Town of Tillsonburg identified priority recommendations for creating the desired future state for manufacturing in the Town of Tillsonburg. This included support for the development of key economic clusters, particularly in high value-added auto-related production. Tillsonburg has distinct advantages, including lower prices for serviced employment lands, no industrial development charges, lower industrial property taxes and industrial development cost per sq. ft. compared to the west GTAH (Greater Toronto Area, and Hamilton) and other municipalities, including Milton, Guelph, Cambridge and Kitchener.

As part of the Town’s development efforts to support the expansion of its manufacturing cluster, the Town partnered with Isah International B.V, to implement the Manufacturing Accelerator Program (MAP). Isah business software was founded in 1987 and supports the manufacturing industry, from large to small companies and from national organisations to international players. It provides intensive collaboration and knowledge-sharing, continuous product development of the product and support for export initiatives. As of 2018, one pilot program with a Tillsonburg manufacturer has been completed, and the initiative is now being expanded to support a further ten local manufacturers. The extension of the program is a critical objective of the Town’s 2019 Business Plan.

The 2019 Business Plan also recognises opportunities to increase the export readiness of local manufacturers by leveraging trade relations in Europe. In keeping with this, the MAP program business framework specifies the need to review the Comprehensive Economic and Trade Agreement (CETA) and identify those local products that have the highest chance of success in the European market.

Opportunities for Education and Training

Appropriate education and training opportunities in line with Tillsonburg’s economy through partnerships with Glendale High School and Fanshawe College are highlighted in the 2014 Community Strategy Plan. Currently, Fanshawe College provides occasional courses with support through the Woodstock Satellite Campus in Tillsonburg.

Emphasis on the Local Economy

In addition to local initiatives, regional strategies including the 2015 Future Oxford Community Sustainability Plan, 2017 Oxford County Action Plan & Strategy Alignment, 2015-2018 Strategic Plan for Oxford County and the 2015 Future Oxford Community Sustainability Plan, all focus on growing the local economy. The focus is placed on supporting local industry and entrepreneurship growth, increased

Page 19: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 11

collaboration, workforce alignment, strengthening community access, attracting skilled talent and reducing barriers to employment.

2.2 Industry 4.0 and Implications for Tillsonburg

A key consideration in the development of a manufacturing cluster/sub-cluster in Tillsonburg is the implications of technology on the continued transformation of manufacturing, and this can be supported or enabled locally. The Fourth Industrial Revolution, also known as Industry 4.0 reflects the integration of smart digital technologies such as robotics, artificial intelligence, quantum computing, IoT, additive manufacturing, and advanced materials to make manufacturing more agile, flexible and responsive to customers3. A ‘smart factory’ that uses advanced technologies allows manufacturers to react more efficiently to changing market conditions, improve both their operational efficiency and revenue forecasts, create customised products and aim for continual improvement. Industry 4.0 also allows for a more connected supply chain whereby suppliers, customers, investors, and other third-party experts can learn and adapt to new conditions and work together more effectively4.

The implications of Industry 4.0 also signify a shift in the type of work and the skills that employees will be required to perform. The advent and rapid adoption of new technologies have resurfaced concerns over technology eliminating jobs. However, new technologies help drive innovation and give rise to entirely new industries and economic opportunities. As a result, in the long run, technology has often helped to produce more jobs than it destroyed5.

When assessing the impact of Industry 4.0 and automation on manufacturing in Tillsonburg, it should be noted that manufacturing is Tillsonburg’s dominant industry, employing approximately 33% of the Town’s labour force6. The Brookfield Institute’s Automation Across the Nation report identifies that communities such as Ingersoll, Woodstock and Tillsonburg are among the most susceptible CA’s for automation risk7. Heavy reliance on a single industry means that small cities and towns have decreased the ability to reabsorb displaced labour and are more prone to automation risk. Figure 2 shows the susceptibility of Southern Ontario CMAs and CAs to Automation.

Businesses need to be aware of their current level of digital maturity, particularly as it relates to their current and future competitiveness. Technology adoption can be done incrementally – businesses can adopt technology on a small scale to build skills and digital maturity and realise the return on investment. To ensure that businesses and the economy benefits from technology adoption, local and senior levels of government need to develop policies and incentives that encourage investment and innovation in a way that helps businesses increase productivity, upscale their product offerings and improve access to markets. Innovative workforce strategies may also be required to help workers and institutions adapt to the impact on employment. This includes developing programs that enable both businesses and employees to work effectively in the current environment.

3 Industry 4.0: The New Industrial Revolution. Business Development Bank of Canada, 2017. Forces of change: Industry 4.0. A Deloitte series on Industry 4.0. December 2017 4 ibid 5 Automation Across the Nation. Brookfield Institute, 2017. 6 EMSI Analyst, 2019. 7 The report estimates that a community who proportion of total employment in an industry exceeds 20% is susceptible to automation risk.

Page 20: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 12

Figure 2: Susceptibility of Southern Ontario CMAs and CAs to Automation

Source: Automation Across the Nation. Brookfield Institute, 2017.

2.3 Sector Analysis

An overview of the manufacturing sector with an emphasis on the sector’s performance in Tillsonburg is presented to illustrate the current nature and composition of manufactured goods and services in the community and contributions to economic growth.

The sector analysis employs a Location Quotient (LQ) analysis to determine the industry sub-sectors that are highly concentrated in Tillsonburg relative to the Tri-County and the Province.

Location Quotient (LQ)

A Location Quotient (LQ) analysis provides information on the concentration of jobs or industries in a community of interest relative to an over-arching area, usually the province or nation. It can reveal what makes a particular region “unique”.

LQ’s Classifications:

▪ LQ greater than or equal to 1.25 – indicates that the community has a proportionately ‘high’ concentration of workers/industries than the larger comparison area employed in a specific industry.

▪ LQ lower than 1.25 and higher than 1.0 – indicates that the community has an ‘above average’ concentration of workers/industries than the larger comparison area employed in a specific industry.

Page 21: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 13

▪ LQ 1.0 – indicates employment/industry concentration in the community is ‘on par’ with the larger comparison area employed in a specific industry.

▪ LQ lower than 1.0 and higher than 0.75 – indicates that the community has a ‘moderate’ concentration of workers/industries than the larger comparison area employed in a specific industry.

▪ LQ lower than 0.75 - indicates that the community has a ‘low’ concentration of workers/industries than the larger comparison area employed in a specific industry.

The key highlights of the sector analysis are presented as infographics in the following pages. Detailed sector analysis is provided in Appendix I under Section II – Manufacturing Sector Analysis of the Sector Analysis and Cluster Model Review Report.

Page 22: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 14

Page 23: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 15

Page 24: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 16

Page 25: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 17

2.4 Sub-Cluster Model Review

A best practices review was conducted to learn from select cluster initiatives across Canada, the United States and Holland. A complete best practices review is provided in Appendix I under Section III – Sub-Cluster Model Review of the Sector Analysis and Cluster Model Review Report. Key learnings for Tillsonburg are presented here.

The concept of ‘industry clusters’ has gained recognition as a compelling framework for economies looking to support and grow their economies. While firms and communities’ benefit from clustering through agglomeration economies, a clear understanding of the cluster model is required to recognize growth. Clusters in its simplest form are a ‘group of firms clustered together as a result of geographic proximity and similar industry processes’. A Cluster usually consists of the following elements:

▪ Companies in the Same Sector or Industry: common raw material, common elements in processes, and serve common and multiple sectors.

▪ Geographic Proximity: The rule of thumb for a cluster's size is between a one and two-hour driving radius. This allows for ease of companies to meet with each other and participate in activities of the cluster.

▪ Infrastructure Commonalities: This refers to things like skills, training, purchasing, supply chain, service provision, logistics, etc.

▪ Collaboration among (Competing) Companies: the commitment of companies in the sector and the region to collaborate on projects, share best practices they wish to share and see the importance of the “big picture” for the growth.

Cluster development must be based on identified and validated industry opportunities. While the exact factors that generate robust economies are not completely understood, the following factors are critical in the development of clusters.

▪ Location: the co-location of firms, academic institutions and R&D establishments, venture capitalists and government institutions allow for the attraction of skilled labour and foster interactions and knowledge spillovers while keeping transaction costs at a minimum.

▪ Critical mass: the co-location of firms suggests that the supply chain is well developed, and firms can produce economies of scale. Also, the productivity and overall quality of products as improved and firms focus on continuous innovation to remain competitive.

▪ Linkages: clusters lead to “co-opetition”, by which firms recognise mutual benefits and develop trust. Firms can actively collaborate on projects and improve their supply chain links and improve market reach. It is understood that clustering enables firms to be more innovative than if they were not located in a cluster.

Cluster Success Factor Notes

Unique Industry Opportunity

▪ Focused industry opportunities are identified and understood.

▪ Investment is focused and measured.

Partnerships

▪ Public-Private partnerships are engaged

▪ Ideal partnerships are private sector driven

▪ Educational and government institutions play supportive roles

Page 26: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 18

Cluster Success Factor Notes

Co-opetition ▪ Clusters are collective initiatives; partners work collaboratively toward

mutually beneficial goals.

Long-Term Focus

▪ Clusters are developed with the ultimate goal of creating a strong business ecosystem. Immediate job creation and profit are secondary.

▪ Includes initiatives such as strengthening the supply chain, securing funding and partnering with academic institutions

Community Champions ▪ Clusters have the support of business leaders in the community, who are in

turn supported by government partners.

Central Hub

▪ Clusters need a central physical or digital space for businesses/entrepreneurs to congregate.

▪ Sharing space leads to synergies and innovative idea sharing.

3. Consultation A key consideration in the development of the High-Tech Manufacturing Sub-Cluster Action Plan was the need to engage with the local business representatives as well as key industry partners and stakeholders. The primary research complemented the research and analysis phase and included telephone interviews and an in-person workshop session.

The following business representatives and industry partners were consulted:

Tillsonburg Manufacturing Companies Industry Partners

▪ Autoneum Canada Limited ▪ Dyco Tool Inc ▪ Foldens Machine Works Ltd ▪ J/E Bearing & Machine ▪ Marwood International Inc ▪ Mil-Sim-Fx International Inc ▪ Systemair ▪ Titan Trailers Inc ▪ Triton Innovation ▪ Wellmaster Pipe & Supply Inc

▪ Additive Metal Manufacturing Inc ▪ Bluewater Wood Alliance ▪ Excellence in Manufacturing Consortium ▪ Isah Business Software ▪ Export Development Canada ▪ FarStar S.A.C. Consulting ▪ Manufacturing Accelerator Program ▪ Ministry of Economic Development, Job Creation

and Trade ▪ Monica Clare Management Consultant ▪ Netherlands Field Lab Model ▪ SONAMI – Southern Ontario Network for

Advanced Manufacturing Innovation ▪ Town of Tillsonburg Multi-Service Centre

3.1 Stakeholder Interviews

A total of 15 telephone interviews were conducted with Tillsonburg manufacturing companies and industry partners. The questions were intended to gain an understanding of the local manufacturing sector and determine the opportunities, challenges, export readiness and support for the sector.

Page 27: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 19

3.2 Stakeholder Workshop

An in-person stakeholder workshop was conducted in Tillsonburg on March 6th, 2019. The following questions were discussed:

▪ How do we make manufacturing (metal) more competitive in Tillsonburg/Ontario?

▪ What do you consider the unique selling points for Tillsonburg in metal manufacturing sub-cluster?

▪ What would you see as the benefits of a cluster model or some variation to support the growth and innovation within the sector (e.g., R&D, skills training, business support and process improvements)?

These questions were chosen to gain a deeper understanding of the performance of local firms as it relates to a range of factors and to gauge the opportunities for collaboration among Tillsonburg’s manufacturers. The discussion also helped to build local knowledge for the development of a manufacturing cluster targeting metal products and the associated supply chain. The stakeholder interviews provided initial insights that were explored in detail through the workshop.

3.3 SWOT Assessment

To further inform the action plan and recommendations, a SWOT (strengths, weaknesses, opportunities and threats) assessment of the manufacturing sector was completed using insights from the sector analysis and input from the stakeholder consultations. While every effort was made to incorporate a range of perspectives, responses should not be used to generalise the opinions of all employers or industry partners within the sector.

The major themes of the SWOT assessment are summarised below.

3.3.1 Strengths

▪ Strategic Location: As part of the Oxford, Elgin and Haldimand-Norfolk Tri-county region, Tillsonburg has direct access to Highways 3, 19, and 59 with convenient access to Highway 401 and 403. The town is also serviced by the Ontario Southland Railway with connections to CN/CP and air service at the Tillsonburg Regional Airport.

Figure 3: Stakeholder Workshop held in the Town of Tillsonburg, 2019

Page 28: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 20

▪ Proximity to Major Centres: Tillsonburg’s central location allows for access to major centres of industry throughout Southern Ontario including Woodstock, London, Kitchener/Waterloo, Hamilton, Toronto as well as the US Industrial heartland and cities like Detroit and Chicago.

▪ Access to Supply Chain: Tillsonburg’s central location and proximity to major centres provide it with the distinct advantage of access to supply chain and regional assets, including transportation and labour.

▪ Diversified Economy: Tillsonburg has a diversified economy with strengths in manufacturing, retail trade, health care and social assistance, accommodation and food services, construction and transportation and warehousing.

▪ Manufacturing Labour force Growth: over the past ten years, Tillsonburg’s manufacturing employment base grew by 48% (an increase of 1,078 jobs), from 2,188 jobs in 2009 to 3,266 jobs in 2018.

▪ Advanced Manufacturing: in 2018, approximately 58% of all manufacturing businesses in Tillsonburg were in advanced manufacturing. Tillsonburg’s strengths in advanced manufacturing include Transportation equipment manufacturing, machinery manufacturing, fabricated metal product manufacturing and electrical equipment, appliance and component manufacturing.

▪ Low Overhead: Tillsonburg has low overhead costs compared to the GTHA municipalities, meaning that businesses expend less on electricity, natural gas, water and other services. Low overhead costs allow for businesses to spend less on utilities that do not directly generate revenue.

▪ Supportive Town Environment: in addition to the cost advantage for manufacturing businesses, Tillsonburg has also invested in the manufacturing sector through planning and economic development investments and initiatives, including its Community Improvement Plan which provides for a variety of support programs including Grant in Lieu of Permit Fees Program and the Brownfield Redevelopment Incentive Program.

3.3.2 Weakness

▪ Labour Market is Tightening: demand is high for technically skilled workers (CNC machinists, electromechanical technicians, mechanics, electricians, welders, Programmable Logic Controllers, etc.) highlighting a need for more ‘middle-skilled talent’ that has the right mix of education and technical aptitude/training.

▪ Perceptions of the Sector: negative perceptions of the manufacturing sector as an ‘unattractive’ trade job, both by parents and students act as an impediment to the growth of the sector.

▪ Partnerships not Leveraged: While the Town has six public schools and one high school (Glendale) plus other high schools in the area, Fanshawe College closed their local centre in 2014. With the loss of this physical presence, Tillsonburg does not offer any significant post-secondary education or training opportunities to local residents and workers. While these can be accessed at Fanshawe’s satellite campuses in neighbouring communities (Simcoe, Woodstock, St Thomas) and the main campus in London, the lack of local opportunities is impacting local employers and workers. Partnerships to achieve local education/training opportunities are not fully leveraged.

Page 29: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 21

▪ Access to Funding and Business Financing: limited sources of funding for start-ups and small business looking to grow. Businesses are not aware of the funding and program support that is available and find it hard to navigate suitable funding. Businesses must stay on top of sales to ensure profitability and thus do not have the time or labour resources to research funding opportunities.

▪ Access to Business Support Networks: small businesses perceive that they have only a few “go-to” organizations or networks to assist in terms of business support and information sharing. The lack of established channels of communication between industry and business support networks affects the viability of the sector.

▪ Transit Constraints: lack of inter-regional transit and/or limited options to employment areas limits opportunities for businesses to access the regional labour pool and attract workers.

3.3.3 Opportunities

▪ Promote High-Tech Manufacturing: Tillsonburg’s strengths in high-tech metal manufacturing should be promoted through stronger marketing and communication efforts. This will allow for increased recognition on a regional, national and international scale.

▪ Opportunities to Diversify: local manufacturers need to be encouraged to innovate and diversify production to other subsectors than automotive manufacturing. Research needs to be undertaken to identify programs that can respond to the emerging market opportunities and diversification of production to other subsectors to remain competitive.

▪ Technology and Innovation: Tillsonburg manufacturers have the potential to be competitive on a global scale by focussing on adopting innovative technologies such as IOT, big data analytics, 3D printing autonomous systems, and work augmentation. Innovative processes and adoption of software allow for streamlined operations, with greater flexibility and customisation while staying cost competitive.

▪ Competitiveness: to ensure competitiveness irrespective of the exchange rate, local businesses need to focus on identifying a simplified class supply chain by leveraging new technology. Simplified supply chain management allows for optimization of business processes, increased control over inventory, reduction of operational costs, and improved customer satisfaction and retention.

▪ Expansion into European markets: The recent Comprehensive and Economic Trade Agreement (CETA) has made it easier for businesses to explore European Markets. Local businesses can work with industry partners such as Export Development Canada (EDC), Ministry of Economic Development, Job Creation and Trade (MEDJCT) and European ‘middlemen’ partners to understand European laws and regulations, tax systems, customer expectations and overcoming language barriers.

▪ Play up the Closeness of the Market: Canadian manufacturers, in general, are competing with low-cost international manufacturers in countries such as India and China. To ensure that Canadian manufacturing is successful over low-cost manufacturing countries, it should focus on playing up the advantage of location – Ontario it is significantly cheaper and offers time-saving for transporting products from Canada to the United States compared to shipping from India and China. Also, the

Page 30: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 22

Canadian employment landscape has supportive immigration laws and easy access to international talent and world-class research and development.

▪ Entrepreneurship Training and Support Programs: collaboration with post-secondary or research institutions will enable manufacturers to innovate and realise ‘process improvements’ that allow for enhanced competitiveness. Some local manufacturers already have in-house apprenticeship programs that can be leveraged and promoted to answer the skill shortage.

▪ 3D Printing: Manufacturers are increasingly adopting 3D printing to lower the cost of production. 3D printing allows for the low volume production of customised parts and equipment to be completed cost-effectively on-site, instead of offshoring to lower cost destinations. 3D printing will increasingly become a critical component of the automotive and aerospace manufacturing industries. Additive Metal Manufacturing Inc. is an example of an industry partner that could be leveraged.

3.3.4 Threats

▪ Risk Averse: Research suggests that manufacturing operations in Canada generally lag compared to Europe and China in innovation and adapting new technologies. This is generally attributed to the fact that Canadian manufacturing for a long time has operated on cost location advantages and are inclined to be more risk-averse.

▪ Limited Labour Pool: Skill shortages prevent businesses from improving production capacity. Skill shortage in the manufacturing sector includes middle-skill operations such as welders and mechanics and highly skilled employees able to operate automated processes.

▪ Trade Barriers: Businesses perceive that trade barriers limit their ability to enter European markets. Trade barriers include policies and regulations such as tariffs, local content requirements, legal entities, labelling requirements, lack of transparency, and restrictions on obtaining a licence. Also, limited international visibility, lack of knowledge of these markets and set pricing affects export capacity.

▪ Lack of Awareness: Businesses are unaware of programs providing financial support, incentives and small business support including programs such as Scientific Research and Experimental Development (SR&ED) and Business Development Bank of Canada (BDC), among others.

▪ Uncertain Political Landscape: The Brexit referendum vote and the status of the re-negotiated North American Free Trade Agreement (NAFTA, now renamed US Mexico Canada Agreement) will continue to foster risk and uncertainty for manufacturers.

4. Value Proposition Tillsonburg’s key competitive advantages are described below.

4.1 Low-Cost Operating Environment

The operating cost environment in a jurisdiction is an important factor in the attraction of ongoing

Page 31: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 23

competitiveness of manufacturing operations. Tillsonburg has the advantage of low overhead compared to the GTHA municipalities, which means lower costs for businesses in the form of lower spending on new buildings/expansions, taxes, labour, utilities, etc. Through consultations, local businesses identified that Tillsonburg’s central location and proximity to major centres and 400 series highways allow firms to run low-cost operations compared to other locations.

Tillsonburg’s Community Improvement Plan (CIP) is designed to stimulate and assist new development and redevelopment in designated areas of the Town. Industries can invest in Tillsonburg without incurring any industrial development charges. The Grant in Lieu of Permit Fees Program allows commercial and industrial properties in the designated CIP area to rebate the cost of fees for building permits. The Tax Increment Equivalent Grant Back Program is a grant to rebate increases in Town property taxes resulting from improvements or redevelopment of industrial lands and buildings, for properties in the CIP area. Also, Tillsonburg also has the Brownfield Redevelopment Incentive Program that covers up to 50% of the cost of Environmental Site Assessment or risk assessment.

4.2 Growing Employment Base

Tillsonburg has the highest proportion of its resident labour force employed in the manufacturing and advanced manufacturing subset when compared to Oxford County, Tri-County and the Province of Ontario. In fact, Tillsonburg makes up 19% of Oxford County’s manufacturing sector employment. Over the past ten years, Tillsonburg’s manufacturing employment base grew by 48% (an increase of 1,078 jobs), from 2,188 jobs in 2009 to 3,266 jobs in 2018 despite a downturn in the global economy. By contrast, employment in all other industries saw growth of only 7% (an increase of 435 jobs) during the same time period.

Tillsonburg’s manufacturing labour force is concentrated in transportation equipment manufacturing. This includes motor vehicle and motor vehicle parts manufacturing, aerospace product and parts manufacturing and other transportation equipment manufacturing. Other leading employment sub-sectors include machinery manufacturing, food manufacturing and fabricated metal product manufacturing.

Tillsonburg’s manufacturing labour force is engaged in a range of occupations characteristic of a strong manufacturing sector. Occupations in demand include motor vehicle assemblers, inspectors and testers, other metal products machine operators and metalworking and forging machine operators.

4.3 A Diverse Local Industry Base

Tillsonburg’s manufacturing sector is characterised by a diverse ecosystem of businesses and includes a high proportion of entrepreneurs and small and medium firms. Tillsonburg is also home to large manufacturing firms; as per the Canadian Business Counts Data, approximately eight manufacturing industries employ at least 100 employees.

It is understood that small businesses are in the process of establishing themselves within a supply chain and are often open to exploring new business models and process innovations while larger, more established businesses are looking to expand to national and international markets and have the ability and overhead to take advantage of opportunities requiring more investment. This diverse ecology of industries further boosts Tillsonburg’s value proposition.

Page 32: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 24

4.4 A Strong Potential for Innovation

Tillsonburg has approximately 45 manufacturing businesses. The majority of these are in advanced manufacturing with the potential for advanced technology integration and process/productivity improvements. Tillsonburg has a higher proportion of advanced manufacturing businesses compared to Oxford County, Tri-County and the province of Ontario. Tillsonburg’s strengths include Transportation equipment manufacturing, machinery manufacturing, fabricated metal product manufacturing and electrical equipment, appliance and component manufacturing. Tillsonburg’s diverse base of advanced and traditional manufacturing industries suggests a strong market for technology innovation.

4.5 Supportive Local Government

The manufacturing sector benefits from a supportive government structure at the local, provincial and federal levels. Locally this is evident in Tillsonburg’s planning and economic development efforts. This has resulted in a strong base of manufacturers with strengths in advanced manufacturing.

The 2008 Economic Strategy for the Town of Tillsonburg identified priority recommendations for creating the desired future state for manufacturing in the Town of Tillsonburg. This included support for the development of key economic clusters, particularly in high value-added auto-related production. Provincial and Federal agencies and industry associations including Canadian Manufacturers & Exporters (CME), Trillium Network for Advanced Manufacturing, Excellence in Manufacturing Consortium, Enterprise Canada Network (ECN), Business Development Bank of Canada (BDC), Canada Business Network, BizPaL, Export Development Canada, Southwestern Ontario Development Fund and Federal Economic Development Agency for Southern Ontario (FedDev Ontario), among others are key partners that support local manufacturers and promote the sector on a national and global scale.

More recently, the Advanced Manufacturing Supercluster Initiative, based in Ontario with focus on Internet of Things (IoT), machine learning, cybersecurity and additive manufacturing (3D printing) will enable next-generation manufacturing capabilities and support and nurture manufacturing companies.

5. Manufacturing Sub-Cluster Models

5.1 Manufacturing Acceleration Program (MAP)

In 2015, the Town of Tillsonburg partnered with Isah International B.V to launch the Manufacturing Accelerator Program (MAP). The initial launch of the program focussed on introducing local firms to Industry 4.0 concepts and the need to automate and innovate manufacturing processes to improve competitiveness and productivity. Participants at this stage of the program’s implementation included eight (8) manufacturing companies, Tillsonburg District Chamber of Commerce, Export Development Canada and the three organising partners (Town/Isah Software/GWA). A second workshop, conducted in 2016, provided local manufacturers with updates on Industry 4.0, Brexit/CETA and Blockchain technology. An Enterprise Resource Planning (ERP) software demonstration was also delivered.

In 2017, the program expanded to include a workshop on export objectives and enable local manufacturers to improve their readiness for exporting. As part of this effort, a trade mission to the

Page 33: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 25

Hannover Fair and the Brainport Region of The Netherlands was undertaken, attended by a manufacturing company, GWA Business Solutions (Canadian MAP partner) and the Town. A 2018 Manufacturing Challenges Survey has also been completed to identify local manufacturing challenges.

The goal of the MAP is to have a competitive manufacturing base in Tillsonburg that adopts new technology resulting in innovation and growth. The program currently focuses on the following three initiatives:

▪ the development of a High-Tech Manufacturing Cluster Framework

▪ a Capabilities Assessment with ten area manufacturers

▪ an Accelerated Business Growth Framework to help local companies to explore European markets

Through the Capabilities Assessment, eight (8) companies underwent a valuation process that included plant walk-throughs, business process discussions, prioritization of business improvements and readiness review to identify those companies with the potential to participate in the Accelerated Business Growth Framework and explore European markets. The Accelerated Business Growth Framework identifies local products that have the highest chance of success under CETA, introduces companies to the Federal Accelerated Business Growth Panel and coordinates representation and distribution into Europe.

In assessing the viability of the Manufacturing Acceleration Program (MAP), it can be understood that the Program has the potential to serve as an important platform to address long term sustainability of the Town’s manufacturers and continued productivity improvements. It could be leveraged in the creation of a cluster model for Tillsonburg given its current initiatives and more importantly in enabling local manufactures to more effectively reach European markets. However, it was beyond the scope of this project to assess the capabilities of the program or the uptake by local manufacturers.

To date, the program administrators have engaged with a growing number of local manufacturers, specifically as it relates to export readiness and Industry 4.0 mandates. A proposed Accelerated Business Growth Framework will identify those local products that have the highest chance of success in European markets. However, it is important for the program administrators and the Town to understand and communicate the level of readiness of local manufacturers as it relates to their entry into this marketplace (e.g. the maturity level of local companies, the nature and level of support available through industry partners and educational institutions as it relates to process and product improvements, the skill level and training requirements of employees and the financing models that may be needed).

Our initial review suggests that as a platform for economic growth, the MAP can help raise the competitiveness and profitability of individual manufacturing companies through well-defined business strategies and by capitalising on innovation in products, processes and markets. It can also support the development of a strong and connected supply chain and a strong network among local manufacturers. If Tillsonburg is committed to enabling an industry-led cluster, the MAP could act as a key early-stage platform/partner to provide the tools and resources required by local manufacturers.

5.2 Smart Industry Field Lab Model

While a range of industry cluster models was reviewed, a critical objective of the High-Tech Manufacturing Sub-Cluster Action Plan was to assess the Netherlands Field Lab Model of

Page 34: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 26

education/collaboration and determine its suitability for Tillsonburg’s cluster development. In examining the relevance of the Field Labs model, it was determined that certain elements might benefit the growth and development of manufacturing businesses in Tillsonburg, particularly those manufacturers involved in fabricated metal product manufacturing.

Group of Firms: At its simplest form, Field Labs are consortia of organizations where smart industry solutions are developed, tested, deployed, and where people can learn to apply it.

Initiators: Most Field Labs were initiated by existing networks with many private parties (e.g. Brainport Industries and the Region of Smart Factories (ROSF)). The ROSF, for example, was built around two major OEM companies in the region (Philips and Fokker). These firms recognised the importance of capitalising on the resurgence of the manufacturing industry to encourage entrepreneurship and job growth. Field Labs can also be initiated by educational institutions alone or a combination of industry and educational institutions.

Specific Sector and Focus: Currently, 39 Smart Industry Field Labs operate in the Netherlands, involving over 300 companies and several research institutes and governments. Each Field Lab has a specific focus and a target industry sector. For example, 16 Field labs are in the manufacturing sector with various technology specialisations, including 3D printing, big data, cyber security, robotics and smart automation.

Support Ecosystem: Although most Field Labs are initiated by firms, they are strategic public-private partnerships that provide start-ups and SMEs the chance to do experiments on a platform. The ROSF, for example, was initiated by private firms and has grown into a group of 32 partners (large and small companies, research organizations and educational institutions). The field lab partners focus on research and development for the OEM plants, to make production processes more intelligent and allow for self-learning through Artificial Intelligence.

Physical Location: Most of the Field Labs have an open and shared physical test location. They employ a project-based approach to develop technologies and realise their activities.

Coordinating Partner: Every field lab has a coordinating partner, which is, in most cases, the initiator of the field lab. This could be the firm, a network like Brainport Industries, a knowledge institute or a regional development organisation.

Investment: The Field Labs were developed based on the Smart Industry (SI) policy initiative. It is a triple helix model for agenda setting, building eco-systems and executing supportive, smart industry actions. The funding model combines public funding from state and European regional development budgets with financial and in-kind contributions from industry. Field Labs are well funded with over 165 million euros in investment, including nearly 70 million euros in private investment.

Financial Implications: The most important challenges that Field Labs face are financial. They must “prove their added value” to attract private financing and compete with other Field Labs to secure limited public funds. Another challenge mentioned by some Field Labs concerns the upscaling and business model development.

International Dimension: Most Field Labs have an international dimension. Five Field Labs cooperate with partners from other countries. Examples are cooperation in European projects (The Garden), cooperation with foreign research institutes (Flexible Manufacturing) or the German Industrial Data Space initiative (Smart Connected Supplier Network).

Page 35: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 27

5.3 Opportunity Identification

In addition to conceptualising the steps needed for an appropriate cluster model, it is important to understand those opportunities that will shape a strategic approach for the Town of Tillsonburg as it pursues opportunities in the high-tech manufacturing sector. Opportunity identification includes both cluster development opportunity and cluster partnership opportunity.

5.3.1 Cluster Development Opportunity – High-Tech Manufacturing

One of the lessons learned from the research into the feasibility of a cluster model for Tillsonburg was that a successful industrial cluster serves a targeted group of firms and enables collaboration and firm competitiveness. Benefits of a cluster approach include: (a) productivity improvements through the sharing of knowledge and best practices, access to markets, infrastructure and training and skills development, (b)rapid innovation through facilitated access to technology, research and development and public-private partnerships, (c) new business development and (d) access to funding and partnerships.

For example, the Bluewater Wood Alliance (BWA), Ontario, Canada is an industry-led cluster focused around wood manufacturing. The Alliance, as an intermediary for local businesses, liaises with the government to forge partnerships and enable access to funding on a project by project basis. It provides member firms with project development assistance, skills training, plant tours and networking events, conducts trade missions and other export-related initiatives. Another example is that of the Region of Smart Factories Field Lab (RoSF), the Netherlands. It is one of 35 Field Labs and was initiated by two major OEM’s to develop smart products. The RoSF program is currently developing three pilot projects, namely, (i): smart production lines, with applications at Philips, Fokker and Plantronics, (ii): design for smart factory with applications at Centraal Staal, TenCate, in shipbuilding (NCG) and at Philips and (iii): customized manufacturing of lenses (NKF and Opthec), coated textiles (TenCate) and the manufacture of sails (Molenaar).

Research suggests that Tillsonburg has a high concentration of manufacturing companies employed in fabricated metal product manufacturing, transportation equipment manufacturing and machinery manufacturing. This includes a good cross section of small, medium and larger scale firms ranging from machine shops to those involved in OEM supply chain manufacturing.

Tillsonburg is also home to several major automotive companies include Adient Seating Canada Ltd (foam seating), Autoneum Canada Limited (noise insulation products), Fleetwood Metal Industries Inc (stamped metal components), Martinrea International Inc, Marwood International (stamped metal components), THK Rhythm Automotive Canada Ltd (linkages/steering components), etc. The highest chance of success would be to work with Canadian owned and controlled companies.

Recent expansions and investment by local manufacturing position the community as a centre for metal and high-tech manufacturing; thereby increasing the value proposition of the manufacturing cluster. For example, in 2017, FedDev Ontario invested approximately $4.27 million in Marwood Metal Fabrication; a metal stamp maker for the automotive sector. A further $1.5 million was contributed by the provincial government and private funds. It is projected that this investment will boost the local

Page 36: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 28

economy and result in the creation of 70 new jobs8. The location of CAMI Automotive owned by General Motors Canada in Ingersoll has also benefited the Town. Similarly, the $1.4 billion planned expansion of Canadian operations by Toyota Motor Corp. in Cambridge and Woodstock will have a positive impact on the economy of Tillsonburg9.

Tillsonburg should consider the supply chain implications that could result from this level of investment

and target business growth and attraction activity that further strengthens the local manufacturing

cluster. Business and community stakeholders that participated in the manufacturing workshop

conducted as part of this study suggest that local firms are interested in exploring the benefits of a

cluster initiative in Tillsonburg. There was a consensus that local manufacturers can offer a unique

competitive advantage for Tillsonburg by creating an environment where businesses share access to

different technologies and best practices in a collaborative environment. Plants tours and learning

events were examples that allow businesses can access each other’s shop floor, understand common

challenges and develop collaborative solutions to aid in continued growth. The current MAP could also

assist with advancing this level of activity until the municipality is assured of a critical mass of businesses

who are interested in advancing this effort.

5.3.2 Cluster Development Opportunity – Availability of Land and Space

The availability of serviceable industrial land in Tillsonburg is another consideration for the development

of the cluster. Tillsonburg offers a variety of development opportunities. The Town has three industrial

parks, namely,

▪ Forest Hill Industrial Park ▪ Van Norman Industrial Park ▪ Highway 3 Business Park

The Van Norman Innovation Park (VIP) is a 37-acre business park located on the south side of Highway 3, at Clearview Drive. The park is pre-serviced and shovel-ready and is ideally suited for companies in the advanced manufacturing, information technology and food processing sectors.

In addition to low land costs, Tillsonburg’s low industrial taxes and locally-owned hydro utility means lower operating costs for tenants as well. The long-term availability of suitable vacant industrial land should be monitored as it enables local companies to expand operations and attracts companies looking to set up their facilities in Tillsonburg. Marketing these opportunities to businesses within and outside the region can provide a significant competitive advantage for the cluster over time.

5.3.3 Cluster Partnership Opportunity – Educational Institutions and Industry Partners

In addition to the partnership with the MAP to support cluster development, other strategic partnerships are also essential to ensure a complete ecosystem of support for the cluster. These include partnerships with educational institutions and industry partners. Having a strong support ecosystem of cluster partners on a local, regional and institutional level allows industry clusters to grow and mature. 8 https://www.canadianmanufacturing.com/manufacturing/two-tillsonburg-ont-manufacturers-embark-multimillion-dollar-expansions-186741/ 9 https://www.thestar.com/business/2018/05/04/toyota-planning-14b-expansion-of-woodstock-cambridge-plants-report.html

Page 37: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 29

Some of the strategic partnerships that should be fostered between companies and support organizations include:

▪ Opportunities with Southwest Ontario educational institutions and post-secondary research institutions such as SONAMI

▪ Collaborations with Community Futures Oxford and Oxford County Small Business Centre ▪ Improved communication of support initiatives provided by Export Development Canada (EDC) and

Ministry of Economic Development, Job Creation and Trade (MEDJCT)

In addition to developing strategic partnerships with industry partners, enabling partnerships between existing businesses should also be fostered. These could include:

▪ Studying opportunities to monitor and adopt applicable innovative technologies ▪ Arranging and leading plant tours and networking events ▪ Creating a central hub of information on events and networking sessions ▪ Sharing labour/expertise between companies ▪ Identification of collaborative funding models ▪ Assessing export readiness/market opportunities beyond the US

5.4 Manufacturing Sub-Cluster Model for Tillsonburg

Recommendations for a Manufacturing Sub-Cluster Model for Tillsonburg were developed, taking into consideration Tillsonburg’s capacity to foster and grow a successful cluster. An approach is proposed based on the insights obtained through the research and consultation, the current Manufacturing Acceleration Program (MAP) and the implications for a Field Lab Model of education/collaboration.

Tillsonburg is home to a critical mass of large, small and medium-sized enterprises. Thus, it is well positioned to capitalise on and foster an industry-led consortium. There is also considerable support that could be derived from post-secondary and research institutions, as well as industry partners and government. The Town has also established the Manufacturing Acceleration Program (MAP) that is intended to support manufacturing companies in their drive to become more competitive in global markets. However, this effort is still in the early stages in terms of its work with local manufacturers. Nonetheless, it represents a good platform to support a cluster model given the initiatives of the program, as noted earlier. As this effort matures a more developed field lab model should be pursued that addresses strategic partnerships and industry collaboration.

Tillsonburg must leverage local and regional strengths to showcase its unique value proposition for

manufacturing – one that differentiates it from other municipalities in Southwestern Ontario.

Traditionally, Tillsonburg’s value proposition has been that of a low-cost and location advantage and an

available workforce with a strong rural work ethic (that is, a workforce that has characteristics that

enable workers to thrive in the sometimes-challenging environment of manufacturing). In moving

beyond this messaging and addressing the future of manufacturing in Ontario, Tillsonburg should focus

resources on the creation of an innovative, highly adaptable manufacturing location with programs and

industry experts that support globally competitive businesses and manufacturing operations. If

Tillsonburg is to proceed with fostering the creation of a cluster model for Tillsonburg, the following

steps need to be considered:

Page 38: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 30

Step I: Identify and Prioritize the Local Cluster

This step has been completed through this High-Tech Manufacturing Sub-Cluster Action Plan, whereby the local economy was analysed, and areas of strengths were determined. Tillsonburg has a high concentration of manufacturing companies in fabricated metal product manufacturing, transportation equipment manufacturing and machinery manufacturing. This should be showcased in a way that resonates with businesses who may be interested in the community from a supply chain perspective or to gain economies of scale.

Step II: Determine the Level of Industry Support for the Cluster

This step has been completed in part through the consultation phase of this High-Tech Manufacturing Sub-Cluster Action Plan. However, the town needs to survey the complete business supply chain that includes both core manufacturing and related support businesses to understand the scope of support and interest for a cluster approach. Consultation efforts to date suggest that local businesses are interested in understanding the advantages of a local cluster initiative. Businesses also suggested opportunities for increased collaboration around shared interests and business needs. These opportunities need to be explored further and shared locally to support growth and attraction manufacturing operations.

Step III: Understand Cluster Opportunities

Having determined the scope of support for a cluster initiative, the next step is to understand cluster opportunities. Tillsonburg’s Economic Development Office needs to assess the quality of linkages across the cluster and the extent to which the local manufacturers are willing to collaborate and share information. More detailed research on the future of manufacturing in Canada together with a business survey of local and regional manufacturers would help to identify cluster opportunities and determine what type of programming and support may be required. This, in turn, would identify the partnerships that may be needed to support the growth of the cluster.

Step IV: Local Leadership Group

Tillsonburg’s Economic Development Office will need to play a facilitator role and identify local industry leaders who are prepared to champion the cluster initiative. Local leadership can start as an informal group and evolve over time. However, it should consist of stakeholders from key firms in the priority sub-sectors. Five to eight representatives are appropriate. These stakeholders should be able to work together, represent the interests of the cluster and help define the vision, mission and outcomes of the cluster model as it evolves. Consultation efforts suggest that local businesses are interested in undertaking plant tours, learning about issues and problems faced by local businesses and working collaboratively to find solutions.

Step V: Establish the Vision, Mission and Outcomes of the Cluster

Having identified key roles and responsibilities for both the facilitator and the leadership group, the vision, mission and outcomes of the cluster initiative should be defined. Consultation efforts, for example, suggest that firms are interested in adopting 3D printing to improve productivity and enhance their competitive advantage. However, the cost and resources required to set up a 3D printing system by individual businesses may be too high to be realized. A cluster of firms could collaborate on and adopt 3D printing in a cost-effective way. Another interest on the part of businesses engaged in the consultation effort was to understand how to approach the exporting of goods to the European Union. It

Page 39: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 31

is worth noting that the main objectives of the MAP include these types of initiatives.

Step VI: Establish Cluster Partnerships

Having confirmed the structure of the cluster initiative, together with the vision, mission and outcomes of the cluster defined, external partnerships also need to be forged. Local manufacturers have access to a range of post-secondary partners through the Southern Ontario Network for Advanced Manufacturing Innovation (SONAMI). SONAMI, through its partnership network, offers local manufacturers, primarily in Southwest Ontario, to realise and test process improvements and overcome a range of innovation challenges. SONAMI provides funding, facilities and expertise to small and medium-sized enterprises (SME’s) to undertake research and development that may otherwise not be possible. Funding is provided by FedDev through SONAMI and firms retain all intellectual property rights upon project completion.

During the initial phases of the cluster development, the facilitator can invite institutional partners and local government representatives to plant tours and meet with the leadership group. Provincial and federal government representatives also need to be identified and engaged around the needs and programming support required by local firms. In addition to partnerships with organizations, consideration of a ‘bricks and mortar’ location should also be assessed. A shared low-cost physical space can promote inter-firm business networks and encourage learning and technology sharing among firms. The sub-cluster models review identified that a central physical or digital space for businesses/leads to synergies and innovative idea sharing.

6. Action Planning/Recommendations The following recommendations are set to help advance the High-Tech Manufacturing Sub-Cluster.

▪ Focus on supporting and growing the recommended priority cluster, namely, high-tech manufacturing. Place emphasis on fabricated metal product manufacturing, transportation equipment manufacturing and machinery manufacturing as it relates to supplying original equipment manufacturers (OEM’s).

▪ Conduct a survey of local businesses to determine the level and type of support for a cluster initiative. The survey will enable the Town to gauge collaboration opportunities, programming needs and growth and expansion challenges.

▪ The Town should continue to engage directly with key local industries and forge long-term relationships.

▪ Conduct interviews with core businesses to gain detailed information of their business and supply chain requirements and identify opportunities and challenges that could be addressed by the cluster initiative

▪ Engage OEM’s that drive the growth of the local supply chain to understand their expectations for innovation and productivity

▪ Seek out local champions that are prepared to ‘sell’ the concept of an industry cluster. An industry-led initiative will better enable the municipality to attract investment, post-secondary support while strengthening the capabilities of local manufacturers.

Page 40: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 32

▪ Town representatives and local industry champions should seek out formal cluster training events to understand the principles of cluster development better.

▪ Collaborate with workforce development organizations and post-secondary research institutions to identify cluster-related research and development opportunities, skills development opportunities and the promotion of the sector.

▪ Connect SONAMI with local manufacturers to identify applied research and commercialization opportunities

▪ Identify and connect businesses to workforce development organizations to support skills development

▪ Research opportunities with the local high school to provide ‘Career days’ and conduct plant tours to promote the manufacturing sector as an attractive career option

▪ The Town, as a facilitator, should promote and improve partnerships between local manufacturers and industry support organizations.

▪ Create and host events that allow businesses to engage with resources and partners that strengthen and grow the sector

▪ The export readiness of local businesses can be improved by leveraging partnerships with export support systems including Export Development Canada (EDC), Ministry of Economic Development, Job Creation and Trade (MEDJCT)

▪ Explore opportunities for funding and business financing for all type of businesses including small and medium-sized enterprises

▪ Enhance Tillsonburg’s High Tech Manufacturing Cluster through promotion and marketing campaigns. It is recommended that industry campaigns that highlight the cluster, associated opportunities, advantages of clusters and Tillsonburg’s value proposition should be explored.

▪ Develop a standalone website that brands and promotes the value proposition for the High-Tech Manufacturing Cluster in Tillsonburg.

▪ Create a central hub of information on the labour force profile, events and networking sessions, funding opportunities, partner information, existing business profiles, business support services and research and development opportunities

▪ Explore the feasibility of a central space for businesses to convene and collaborate to share best practices and identify solutions. A metal lab is a feasible option for Tillsonburg with provisions for 3D printing, training programs and skills development.

Page 41: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 33

Page 42: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – Manufacturing Sector Analysis and Cluster Model Review Report Page i

Table of Contents

About This Report ................................................................................................................. 2

1. Background Review ...................................................................................................... 3

1.1 Local Initiatives ......................................................................................................................... 3

1.2 Regional Initiatives ................................................................................................................... 4

2. Manufacturing Sector Analysis ...................................................................................... 6

2.1 Sector Definition ....................................................................................................................... 7

2.2 National and Provincial Context ............................................................................................... 8

2.3 Tillsonburg Manufacturing Sector .......................................................................................... 10

2.4 Staffing Patterns and Projections ........................................................................................... 17

2.5 Education Profile and Talent Supply ...................................................................................... 18

2.6 Manufacturing Industries ....................................................................................................... 20

2.7 Top Employers ........................................................................................................................ 24

2.8 Export Information ................................................................................................................. 25

2.9 Multipliers .............................................................................................................................. 26

2.10 Supply Chain Analysis ............................................................................................................. 27

2.11 Commuting Patterns .............................................................................................................. 28

3. Sub-Cluster Model Review .......................................................................................... 31

3.1 Smart Industry Field Labs, the Netherlands ........................................................................... 31

3.2 Bluewater Wood Alliance, Ontario, Canada ........................................................................... 32

3.3 Advanced Manufacturing Supercluster, Canada .................................................................... 33

3.4 Conexus, Advanced Manufacturing Cluster, Indiana, USA ..................................................... 34

3.5 Additive Manufacturing Cluster, Northeast Ohio, USA .......................................................... 35

3.6 Luxinnovation, Luxembourg Materials and Manufacturing Cluster, Luxembourg ................ 35

Page 43: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 2

About This Report The evolution of Tillsonburg’s economy over the last few decades is an indicator of the larger structural shift that is occurring in communities across Canada. Economies are in transition as traditional industries undergo restructuring and are increasingly driven by technology-led development.

In recognition of this transition, The Town of Tillsonburg is seeking to develop a high-tech manufacturing sub-cluster initiative with companies from the Tillsonburg area. This report is preliminary findings that profile the current state of manufacturing in Tillsonburg. A review of select existing manufacturing sector clusters from around the world was also completed to provide key learnings for the Town.

This report assesses the current state of the manufacturing sector in Tillsonburg and determines the level of Town support for the sector. The competitive positioning of the sector in Tillsonburg as it relates to the regional economy is also studied.

The key findings and insights that emerge from this exercise will help inform subsequent consultations with local stakeholders including business representatives in the sector, organizations and local educational institutions and provide evidence for the applicability of the development of a manufacturing cluster/sub-cluster in Tillsonburg.

The approach employed in the completion of this report involved the following sections:

▪ Section I – Background Review

▪ A review of the Town’s existing planning documents and policies to determine the level of support and strategies relevant to sector growth and cluster development

▪ Section II – Manufacturing Sector Analysis

▪ A sector overview and baseline analysis including an assessment of current labour force, employment, and business trends in Tillsonburg, the Tri-county region and Ontario to identify existing and emerging areas of economic opportunity

▪ Section III – Sub-Cluster Model Review

▪ The best practices review to learn from existing cluster initiatives across North America and around the world.

Page 44: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 3

1. Background Review A document review of relevant initiatives and municipal strategies was completed to provide a clear picture of the larger planning context in Tillsonburg and the surrounding region as it relates to the development of the high-tech manufacturing sub-cluster study.

The following local and regional initiatives were examined for this report:

▪ Town of Tillsonburg Business Plan, 2019

▪ Town of Tillsonburg Community Strategic Plan, 2014

▪ Town of Tillsonburg Manufacturing Acceleration Program (MAP), 2015

▪ An Economic Strategy for the Town of Tillsonburg, 2008

▪ Town of Tillsonburg Situation Analysis, 2008

▪ Oxford County Action Plan & Strategy Alignment, 2017

▪ Oxford County Strategic Plan, 2015-2018

▪ Future Oxford Community Sustainability Plan, 2015

▪ Oxford County Population Household and Employment Forecasts and Employment Lands Study, 2014

▪ County of Oxford Labour Force Development Strategy, 2011

▪ Southwestern Ontario Development Fund

1.1 Local Initiatives

The 2008 Economic Strategy for the Town of Tillsonburg identified priority recommendations for creating the desired future state for manufacturing in the Town of Tillsonburg. It included support for the development of key economic clusters, particularly in plastics and high value-added auto-related production. The strategy defined clusters as a “network of independent firms involved in buyer/supplier relationships, knowledge-producing agent and bridging agents liked in value-added production chain”. The strategy also stated that the manufacturing sector had been reinforced with new infrastructure including serviced industrial land and the availability of highly educated labour force.

Collaborative initiatives were identified in the strategy, including taking an inventory of community training programs to foster collaboration in skills training and meet employer needs. The strategy also suggested the expanded effort to collaborate with local employers and educational institutions to provide knowledge to students about the advantages of careers in the trades. Also, the need for a Knowledge Transfer Task Force is identified to ensure knowledge transfer between current business owners and young entrepreneur

The 2014 Community Strategy Plan was developed based on community ideas and aspirations and established a vision with four broad themes or strategic objectives, namely, excellence in local government, economic sustainability, demographic balance and culture and community. While the plan does not specifically indicate the manufacturing sector, the economic sustainability theme calls for supporting new and existing businesses and providing a variety of employment opportunities. The plan

Page 45: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 4

also stipulates the need to provide appropriate education and training opportunities in line with Tillsonburg’s economy including partnerships with Glendale High School’s to offer high school trades programs and with the local Fanshawe College campus to match education and training with local industry needs.

As part of the Town’s development efforts to nurture and grow a manufacturing cluster, the Town partnered with Isah International B.V, to implement the Manufacturing Accelerator Program (MAP). The program facilitates growth by raising the competitiveness and profitability of individual manufacturing companies through well-defined business strategies and capitalising on innovation in products, processes and markets. Some of the actions developed by this program included:

▪ The promotion of MAP to local companies to provide practical service, improve productivity and streamline processes

▪ Facilitate knowledge transfer between companies, organizations and international best practices

▪ Facilitate participating companies to benefit from grants, incentives and funding opportunities

The 2015-2018 memorandum of understanding between Isah and the Town specifies the creation of a manufacturing cluster with at least 15-20 local companies within Tillsonburg. As of 2018, a pilot program with a Tillsonburg manufacturer has been completed, and the initiative is now being expanded to support ten local manufacturers. The extension of the program is a critical objective of the Town’s 2019 Business Plan.

The 2019 Business Plan also recognises opportunities to increase the export readiness of local manufacturers by leveraging trade relations in Europe are also recognised. In keeping with this, the MAP program business framework specifies the need to review the Comprehensive Economic and Trade Agreement (CETA) and identify local products that have the highest chance of success in the European market.

1.2 Regional Initiatives

In addition to local efforts, regional support for the sector was analysed to determine support for the sector within the regional economy.

The 2017 Oxford County Action Plan & Strategy Alignment is evidence that Oxford County is focused on sustainable community development and resolve challenges that the County is facing. Four action areas are defined in the plan to help the County overcome existing challenges and attract and retain a skilled workforce. These include actions for increased collaboration, workforce alignment, attracting skilled talent and reducing barriers to employment.

The 2015-2018 Strategic Plan for Oxford County puts forward a vision for a vibrant community committed to the prosperity of its people and to the principle of partnership that ties together Oxford’s eight municipalities. While the plan does not specifically indicate the manufacturing sector, strategic directions in the plan identify the need to strengthen and diversify the economic base, support local industry and business growth and encourage entrepreneurship. The need to strengthen community access and internet connectivity is also identified.

A critical goal of the 2015 Future Oxford Community Sustainability Plan is the Economy. Specific actions of the plan include the need to encourage high-tech manufacturing in Oxford, support local business expansion and retention and enhance collaboration between all local and regional economic

Page 46: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 5

development officers and agencies.

The 2014 Oxford County Population Household and Employment Forecasts and Employment Lands Study served as an economic analysis for Oxford County, to guide decision making and policy development specifically related to planning and growth management, urban land needs, master plans and municipal finance at the County-wide and area municipal levels. Key highlights of the study include:

▪ Employment forecasts show that approximately 88% of the County-wide employment growth will occur in Oxford County’s Urban Centres (Woodstock, Ingersoll and Tillsonburg) over the 2011-2041 period.

▪ Tillsonburg has a relatively healthy supply of vacant designated employment lands to accommodate future industrial growth

▪ The servicing of the Forest Hill Industrial Parklands to the south of Highway 3, and the development of the Highway 3 Business Park would greatly improve the supply and market choice of employment lands in the community

The report also illustrates that municipalities in Oxford County, including Tillsonburg, show significantly lower prices for serviced employment lands, industrial development charges, industrial property taxes and industrial development cost per sq. ft. compared to the west GTHA (i.e. Milton and Hamilton) and other GGH municipalities, including Guelph, Cambridge and Kitchener.

The County of Oxford Labour Force Development Strategy was developed in 2011 as a comprehensive labour force strategy to prepare Oxford County to accommodate the labour force needs of the future. The strategy identified that the decline in manufacturing jobs is of concern for Oxford County, particularly the communities of Woodstock, Ingersoll and Tillsonburg. However, it identifies opportunities for manufacturing businesses to take advantage of new investments in emerging innovative industries such as biotechnology, composites manufacturing, and medical device manufacturing, as well as green and renewable energy and advanced technologies. Also, opportunities to provide for re-training and skill enhancement, increasing research and development, and increased flexibility are also identified. Priorities and Actions identified in this strategy highlight synergies with existing programming to ensure a collaborative workforce, connected education and training programs, entrepreneur support and youth retention and attraction.

In addition to the local and regional initiatives, the Southwestern Ontario Development Fund (SWODF) has supported businesses investment in Tillsonburg. With support from the Southwestern Ontario Development Fund, four manufacturing companies, namely, Marwood Metal, Inovata Foods, Voth Sales & Service and Fleetwood Metal, invested in Tillsonburg in 2017. The establishments of these companies helped create 198 new jobs and retain 753 positions in Tillsonburg10.

10 https://news.ontario.ca/sb/en/2017/09/ontario-supporting-economic-growth-in-tillsonburg.html

Page 47: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 6

2. Manufacturing Sector Analysis This section of the report provides an overview of the manufacturing sector with an emphasis on the sector’s performance in Tillsonburg. The manufacturing sector analysis is intended as an educative piece for the Town, to illustrate the current nature and composition of manufactured goods and services in the community and contributions to economic growth.

Manufacturing sector jobs, employment growth and industry composition are studied to understand the current state of the sector. The educational profile is also examined to determine the skill level and talent supply of the workforce. Industry information such as the supply chain analysis, multipliers, staffing patterns and future growth projections are also provided. The performance of the sector in Tillsonburg is also compared to the Tri-County (Oxford County, Elgin County and Haldimand-Norfolk) and the province, to accurately establish the areas of strengths, opportunities and gaps in the sector.

Location Quotient (LQ)

A Location Quotient (LQ) analysis provides information on the concentration of jobs or industries in a community of interest relative to an over-arching area, usually the province or nation. It can reveal what makes a particular region “unique”.

LQ’s Classifications:

▪ LQ greater than or equal to 1.25 – indicates that the community has proportionately ‘high’ concentration of workers/industries than the larger comparison area employed in a specific industry.

▪ LQ lower than 1.25 and higher than 1.0 – indicates that the community has an ‘above average’ concentration of workers/industries than the larger comparison area employed in a specific industry.

▪ LQ 1.0 – indicates employment/industry concentration in the community is ‘on par’ with the larger comparison area employed in a specific industry.

▪ LQ lower than 1.0 and higher than 0.75 – indicates that the community has a ‘moderate’ concentration of workers/industries than the larger comparison area employed in a specific industry.

▪ LQ lower than 0.75 - indicates that the community has a ‘low’ concentration of workers/industries than the larger comparison area employed in a specific industry.

Shift-Share Analysis

Shift-share is a standard regional analysis method that attempts to determine how much of regional job growth can be attributed to national trends and how much is due to unique regional factors. The shift-share analysis helps answer why employment is growing or declining in the regional industry.

To conduct shift-share analysis, regional job growth is split into three components: (1) industrial mix effect, (2) national growth effect, and (3) regional competitive effect. In addition, a time frame (start year and end year) is required to perform shift-share analysis, since shift share deals with job growth over time.

Page 48: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 7

2.1 Sector Definition

As per the North American Industry Classification System (NAICS) Canada 2012, the manufacturing sector comprises establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Related activities, such as the assembly of the component parts of manufactured goods; the blending of materials; and the finishing of manufactured products are also treated as manufacturing activities. The sector is grouped under 21 sub-sectors ranging from metal manufacturing to miscellaneous manufacturing such as medical equipment and office supplies. Figure 4 lists the structure and definitions of the manufacturing sub-sector.

Figure 4: Manufacturing Sub-sectors NAICS

NAICS Description

311 Food manufacturing

312 Beverage and tobacco product manufacturing

313 Textile mills

314 Textile product mills

315 Clothing manufacturing

316 Leather and allied product manufacturing

321 Wood product manufacturing

322 Paper manufacturing

323 Printing and related support activities

324 Petroleum and coal product manufacturing

325 Chemical manufacturing

326 Plastics and rubber products manufacturing

327 Non-metallic mineral product manufacturing

331 Primary metal manufacturing

332 Fabricated metal product manufacturing

333 Machinery manufacturing

334 Computer and electronic product manufacturing

335 Electrical equipment, appliance and component manufacturing

336 Transportation equipment manufacturing

337 Furniture and related product manufacturing

339 Miscellaneous manufacturing

Advanced Manufacturing

Advanced manufacturing is a subset of the overall manufacturing sector. However, there is no clear or standardised definition to describe what it entails. It is generally accepted that advanced manufacturing relates to establishments that use advanced processes in the production of goods as well as establishments that produce complex goods, such as electronics and vehicles. The NAICs defined as the advanced manufacturing subset in this report is thus related to both advanced processes and advanced goods as they relate to Tillsonburg.

Page 49: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 8

Figure 5: Advanced Manufacturing Sub-sector NAICS

NAICS Description

325 Chemical manufacturing

326 Plastics and rubber products manufacturing

332 Fabricated metal product manufacturing

333 Machinery manufacturing

334 Computer and electronic product manufacturing

335 Electrical equipment, appliance and component manufacturing

336 Transportation equipment manufacturing

3391 Medical Equipment and Supplies Manufacturing

Note: The terms Advanced Manufacturing and High-Tech Manufacturing are the same and used interchangeably in the report.

2.2 National and Provincial Context

Historically, manufacturing has been an economic driver for the province of Ontario and Canada. Although the sector has undergone significant shifts over the last 40 years, the sector is still a significant contributor to economic growth. In 2017, the sector accounted for 21% ($176 billion) of Foreign Direct Investment (FDI) in Canada.

In 2017, the Canadian manufacturing sector, with contributions of $199.61 billion, accounted for 11% of the nation’s total GDP. The economy and the manufacturing sector has rebounded since the 2008/2009 global economic downturn, increasing from $176.31 billion in 2010 to $199.61 billion in 2017.

Ontario’s economy has also reflected the nation’s performance, with GDP contributions recovering slowing since the downturn. In 2017, Ontario’s manufacturing sector with GDP contributions of $88.03 billion accounted for 12% of total GDP. Ontario is the largest output contributor to total manufacturing GDP in Canada, accounting for approximately 44% of the national manufacturing GDP in 2017.

Figure 6: Manufacturing Sector Gross Domestic Product (GDP), Ontario and Canada, 2006-2017

Source: Statistics Canada. Table 36-10-0402-01

In 2017, the Canadian manufacturing sector accounted for 1,601,204 jobs (8% of total employment) in

$-

$50.00

$100.00

$150.00

$200.00

$250.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

GD

P C

hai

ned

(2

01

2)

$ B

illio

ns

Ontario Canada

Page 50: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 9

Canada. The province of Ontario accounted for the majority of this employment (44% of total Canadian manufacturing employment). Ontario has a higher share of its employment in manufacturing than any other jurisdiction in North America except Indiana and Wisconsin11. Ontario’s manufacturing sector contributed 709,688 jobs (8% of total provincial employment) in 2018.

Figure 7: Manufacturing Sector Share of Employment (%), Ontario and Canada, 2018

Source: EMSI Analyst, 2018

While the economy has shifted from a manufacturing focus to one that is powered strongly by services, employment in the manufacturing sector is witnessing resurgence. While employment in the manufacturing sector declined by 7,529 jobs (1.1%) between 2009 to 2016, the past two years have witnessed a significant increase in jobs. From 2016 to 2018, approximately 16,820 manufacturing jobs (2.4% growth) were created in the Province.

Approximately 3% of all industries in both the nation and province were manufacturing industries in 2018. Fabricated metal product manufacturing was the top manufacturing industries in both the province and Canada.

11 Toward 2025: Assessing Ontario’s Long-Term Outlook’

9%

91%

8%

92%

Employment in Manufacturing

Employment in all other Industries

Inside Circle – Ontario

Outside Circle – Canada

Page 51: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 10

Figure 8: Manufacturing Industries (%), Ontario and Canada, 2018

Source: EMSI Analyst, 2018

2.3 Tillsonburg Manufacturing Sector

Analysing the employment base of Tillsonburg, it can be understood that the manufacturing sector is an economic driver for the Town, accounting for 33% of the Town’s total employment. Manufacturing is primarily an export-based sector, and the growth of the local economy is dependent on the competitiveness of the local and regional export-based economy. Community-based industries such as health care and retail services are other economic drivers for the Town.

2.3.1 Sector Employment

Tillsonburg has the highest proportion of resident labour force employed in the manufacturing sector as well as the advanced manufacturing subset compared to other regions (Figure 9). Tillsonburg makes up for 19% of Oxford County’s manufacturing sector employment.

Figure 9: Manufacturing Employment by Region, 2018

Employment (2018) Tillsonburg Oxford County

Tri-County

Ontario

Total Employment (All Industries) 9,876 63,598 142,102 7,554,653

Manufacturing Sector Employment 3,266 17,588 28,083 709,688

Manufacturing Employment (%) Total Employment 33% 28% 20% 9%

Advanced Manufacturing 2,663 13,652 19,961 420,676

Advanced Manufacturing (%) Total Manufacturing Employment 82% 78% 71% 59%

Source: EMSI Analyst, 2018

Studying employment at the sub-sector level (Figure 10), it was determined that transportation equipment manufacturing accounted for the majority of employment.

In 2018, approximately 1,756 jobs were employed in this sub-sector. People employed in this sector work in establishments that manufacture equipment for transporting people and goods. This includes

3%

97%

3%

97%

Manufacturing Industries

All other Industries

Inside Circle – Ontario

Outside Circle – Canada

Page 52: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 11

motor vehicle and motor vehicle parts manufacturing, aerospace product and parts manufacturing and other transportation equipment manufacturing. Other leading employment sub-sectors include machinery manufacturing (378 jobs), food manufacturing (314 jobs) and fabricated metal product manufacturing (259 jobs).

Figure 10: Manufacturing Share of Employment by Sub-sector (%), Tillsonburg, 2018

Source: EMSI Analyst, 2018. Indicates Advanced Manufacturing Sectors

2.3.2 Employment Growth

Over the past ten years, Tillsonburg’s manufacturing employment base grew by 48% (an increase of 1,078 jobs), from 2,188 jobs in 2009 to 3,266 jobs in 2018. By contrast, employment in all other industries saw growth of only 7% (an increase of 435 jobs) for the same period. While a ten-year timeline was adopted to determine a long-term trend in employment change, it should be noted that the baseline year was during the global recession. Employment numbers were higher before the 2009 recession as the town accounted for approximately 4,003 manufacturing jobs in 2001. Similar to

0.4%

0.4%

0.7%

1.3%

1.4%

2.1%

2.3%

9.6%

0.7%

2.0%

2.3%

3.4%

7.9%

11.6%

53.8%

Printing and related support activities

Beverage and tobacco product manufacturing

Paper manufacturing

Miscellaneous manufacturing

Non-metallic mineral product manufacturing

Wood product manufacturing

Furniture and related product manufacturing

Food manufacturing

Computer and electronic product manufacturing

Chemical manufacturing

Plastics and rubber products manufacturing

Electrical equipment, appliance and componentmanufacturing

Fabricated metal product manufacturing

Machinery manufacturing

Transportation equipment manufacturing

Employment (%)

Page 53: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 12

provincial trends, manufacturing jobs have seen a resurgence in Tillsonburg, evidenced by the 2009-2018 growth trend.

Manufacturing sub-sectors which saw the largest growth in jobs are transportation equipment manufacturing, machinery manufacturing and fabricated metal product manufacturing. The Plastics and rubber products manufacturing sector which accounts for 2.3% of total manufacturing employment in Tillsonburg saw a loss of 84 jobs from 2009 to 2018.

Figure 11: Manufacturing Jobs by Sub-sector, Tillsonburg, 2009 & 2018

Industry (NAICS) Jobs by Year 2009-2018 Job Change

2009 2018 Absolute Change % Change

Transportation equipment manufacturing 1,164 1,756 592 51%

Machinery manufacturing 126 378 252 200%

Food manufacturing 297 314 17 6%

Fabricated metal product manufacturing 200 259 59 30%

Electrical equipment, appliance and component manufacturing 65 110 45 69%

Furniture and related product manufacturing 24 76 52 217%

Plastics and rubber products manufacturing 158 74 -84 -53%

Wood product manufacturing 46 67 21 46%

Chemical manufacturing 16 64 48 300%

Non-metallic mineral product manufacturing 55 46 -9 -16%

Miscellaneous manufacturing 16 44 28 175%

Paper manufacturing <10 22

Computer and electronic product manufacturing <10 22

Beverage and tobacco product manufacturing <10 13

Printing and related support activities <10 12

Total Manufacturing Jobs 2,188 3,266 1,078 49%

Source: EMSI Analyst, 2018. Note: Data figures under ten (<10) are not available

2.3.3 Comparative Employment Location Quotient (LQ)

When compared to the Tri-County, Tillsonburg has a high concentration of employees working in the manufacturing sector with an LQ of 1.67. Specific sectors with a high employment concentration include electrical equipment, appliance and component manufacturing, computer and electronic product manufacturing and chemical manufacturing. Manufacturing sectors that have low employment compared to the tri-county include printing and related support activities, non-metallic mineral product manufacturing and plastics and rubber products manufacturing. Tillsonburg has an above average concentration (a similar, if slightly higher) concentration of employment in advanced manufacturing when compared to the Tri County.

When compared to the province, Tillsonburg has a high concentration of employees working in the manufacturing sector with an LQ of 3.52. Specific sectors with a high employment concentration include transportation equipment manufacturing, electrical equipment, appliance and component manufacturing and machinery manufacturing. Employment in the printing and related support activities, beverage and tobacco product manufacturing and computer and electronic product manufacturing is

Page 54: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 13

low in Tillsonburg compared to Ontario. Tillsonburg has a high concentration of employment in advanced manufacturing compared to the province, principally due to its strengths in machinery manufacturing and fabricated metal product manufacturing.

While the 2008 Economic Strategy for the Town of Tillsonburg identified plastics manufacturing as a key economic cluster, the decline in employment in this sector should be considered when considering development opportunities.

Figure 12: Tillsonburg Manufacturing Employment Concentration Compared to Tri-County and Ontario, 2018

Industry (NAICS) Tri-County Ontario

LQ Classification LQ Classification

Transportation equipment manufacturing 1.18 Above Average 2.90 High

Machinery manufacturing 1.24 Above Average 1.28 High

Food manufacturing 0.95 Moderate 0.83 Average

Fabricated metal product manufacturing 0.93 Moderate 0.81 Average

Electrical equipment, appliance and component manufacturing 2.94 High 1.48 High

Furniture and related product manufacturing 1.06 On Par 0.49 Low

Plastics and rubber products manufacturing 0.57 Low 0.31 Low

Wood product manufacturing 1.06 On Par 0.80 Moderate

Chemical manufacturing 1.28 High 0.29 Low

Non-metallic mineral product manufacturing 0.40 Low 0.50 Low

Miscellaneous manufacturing 0.62 Low 0.30 Low

Paper manufacturing 1.21 Above Average 0.28 Low

Computer and electronic product manufacturing 1.46 High 0.17 Low

Beverage and tobacco product manufacturing 0.74 Low 0.15 Low

Printing and related support activities 0.35 Low 0.09 Low

Manufacturing Total 1.67 High 3.52 High

Advanced Manufacturing Total 1.15 Above Average 1.38 High

Source: EMSI Analyst, 2018.

The proportion of manufacturing employment change from 2009-2018 and their corresponding Location Quotients (LQ’s) were compared to manufacturing employment change in Ingersoll and Woodstock. The results of this analysis are illustrated in Figure 13. The X-axis shows the percentage of manufacturing employment change from 2009-2018 in Tillsonburg and comparator communities. The Y-axis shows the employment LQ’s for these communities in 2018. The bubble size is a pictorial representation of the number of manufacturing sector jobs in 2018 (size equals number of jobs). Key insights of this analysis include:

▪ Woodstock leads among comparator regions in terms of manufacturing sector job growth from 2009-2018 at 56%, followed by Tillsonburg at 49% and Ingersoll at 23%

▪ All three comparator communities have high employment LQ’s compared to the province, indicating manufacturing employment as a sector of competitive strength

Page 55: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 14

Figure 13: Concentration and Percent Change in Manufacturing Sector Jobs, 2009-2018

Source: EMSI Analyst, 2018.

2.3.4 Local Economic Drivers

Though the relative concentration of employment and growth trends can shed some light on likely sources of business and employment growth, it is also useful to examine whether Tillsonburg is experiencing an increase or decrease in its competitive share of employment relative to Ontario’s economy.

By performing a shift-share analysis, the leading and lagging sectors in the local economy can be identified and thus determine the high-impact industries specific to a community. The regional competitive effect explains how much of the change in a given industry is due to some unique competitive advantage that the region possesses because the growth cannot be explained by national trends in that industry or the economy. The results of this analysis are shown in Figure 14.

Tillsonburg’s high impact industries in the manufacturing sector are those with a high potential for automation and include:

▪ Transportation equipment manufacturing

▪ Machinery manufacturing

▪ Fabricated metal product manufacturing

▪ Electrical equipment, appliance and component manufacturing

These sectors also show a high location quotient relative to the province, indicating a strong regional presence.

0.00

1.00

2.00

3.00

4.00

5.00

6.00

0% 10% 20% 30% 40% 50% 60% 70%

LQ 2

01

8

Employment Change 2009-2018 (%)

Tillsonburg

Ingersoll

Woodstock

Page 56: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 15

Figure 14: Regional Competitive Share of Employment, Tillsonburg, 2009-2018

Source: EMSI Analyst, 2018.

2.3.5 Employment Projections

Employment in Tillsonburg’s manufacturing sector in is projected to grow by 12% (an increase of 383 jobs) from 2018 to 2024 compared to 3% in Ontario and 2% in Canada.

Figure 15 shows the industry sub-sectors that are projected to show job growth through to 2024 and those sectors that show a decline by job numbers. Keeping in tandem with current rates, employment in transportation equipment manufacturing, machinery manufacturing and fabricated metal product manufacturing is projected to increase while employment in plastics and rubber products manufacturing sector is projected to decline further.

-94

-10

-1

0

0

0

0

4

6

8

10

21

22

23

26

45

52

53

58

241

390

-200 -100 0 100 200 300 400 500

Plastics and rubber products manufacturing

Non-metallic mineral product manufacturing

Primary metal manufacturing

Textile mills

Clothing manufacturing

Leather and allied product manufacturing

Petroleum and coal product manufacturing

Beverage and tobacco product manufacturing

Textile product mills

Printing and related support activities

Food manufacturing

Computer and electronic product manufacturing

Paper manufacturing

Wood product manufacturing

Miscellaneous manufacturing

Chemical manufacturing

Furniture and related product manufacturing

Electrical equipment, appliance and component…

Fabricated metal product manufacturing

Machinery manufacturing

Transportation equipment manufacturing

Employment Number

Page 57: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 16

Figure 15: Manufacturing Sector Job Change, Tillsonburg, 2018 -2024

Source: EMSI Analyst, 2018

The proportion of projected manufacturing employment change from 2018-2024 and their corresponding Location Quotients (LQ’s) were compared to manufacturing employment change in Ingersoll and Woodstock. The results of this analysis are illustrated in Figure 16. The X-axis shows the percentage of manufacturing employment change from 2018-2024 in Tillsonburg and comparator communities. The Y-axis shows the employment LQ’s for these communities in 2024. The bubble size is a pictorial representation of the number of manufacturing sector jobs in 2024 (size equals number of jobs). Key insights of this analysis include:

▪ Tillsonburg leads among comparator regions in terms of manufacturing sector projected job growth from 2018-2024 at 12%, followed by Woodstock at 11% and Ingersoll at 7%

▪ All three comparator communities have high employment LQ’s compared to the province, indicating that employment in the manufacturing sector will continue to be a sector of competitive strength

-29

1

2

3

3

7

11

16

17

38

63

82

170

-50 0 50 100 150 200

Plastics and rubber products manufacturing

Computer and electronic product manufacturing

Beverage and tobacco product manufacturing

Electrical equipment, appliance and componentmanufacturing

Paper manufacturing

Chemical manufacturing

Non-metallic mineral product manufacturing

Wood product manufacturing

Furniture and related product manufacturing

Fabricated metal product manufacturing

Food manufacturing

Machinery manufacturing

Transportation equipment manufacturing

Employment Change (2018-2024)

Page 58: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 17

Figure 16: Concentration and Percent Change in Manufacturing Sector Jobs, 2018-2024

Source: EMSI Analyst, 2018

2.4 Staffing Patterns and Projections

Staffing patterns provide information on the in-demand occupations specific to an industry. Understanding staffing patterns can help determine those skills that are central to industry growth and enable workforce planning. In 2018, the top occupations in the manufacturing sectors were:

▪ Motor vehicle assemblers, inspectors and testers – 347 occupations (12.6% of total occupations) ▪ Other metal products machine operators – 274 occupations (10.0% of total occupations) ▪ Metalworking and forging machine operators – 174 occupations (6.3% of total occupations) ▪ Welders and related machine operators – 131 occupations (4.8% of total occupations) ▪ Construction millwrights and industrial mechanics – 127 occupations (4.6% of total occupations) ▪ Material handlers – 124 occupations (4.5% of total occupations) ▪ Process control and machine operators, food and beverage processing – 118 occupations (4.3% of

total occupations) ▪ Manufacturing managers – 87 occupations (3.2% of total occupations) ▪ Machinists and machining and tooling inspectors – 84 occupations (3.1% of total occupations) ▪ Other products assemblers, finishers and inspectors – 79 occupations (2.9% of total occupations) ▪ Machining tool operators – 78 occupations ( 2.8% of total occupations)

The staffing patterns were studied up to 2024, to identify the occupations that are projected to grow or decline. This analysis enables the identification of occupations that will be in demand in the future and relevant to the economic performance of the sector. Identifying these occupations will allow the community to develop initiatives and skills training to ensure the labour pool have the relevant skills.

The proportion of projected manufacturing occupation change from 2018-2024 and their corresponding Location Quotients (LQ’s) were compared to manufacturing occupation change in Ingersoll and Woodstock. The results of this analysis are illustrated in Figure 17. The X-axis shows the percentage of manufacturing occupation change from 2018-2024 in Tillsonburg and comparator communities. The Y-

0.00

1.00

2.00

3.00

4.00

5.00

6.00

0% 2% 4% 6% 8% 10% 12% 14%

LQ 2

02

4

Employment Change 2018-2024 (%)

Tillsonburg

Ingersoll

Woodstock

Page 59: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 18

axis shows the occupation LQ’s for these communities in 2024. The bubble size is a pictorial representation of the number of manufacturing sector occupations in 2024 (size equals number of occupations). Key insights of this analysis include:

▪ The occupations projected to be in demand in 2024 are similar to the occupations in demand currently. Motor vehicle assemblers, inspectors and testers, other metal products machine operators and metalworking and forging machine operators are the top occupations in 2024

▪ Process control and machine operators, food and beverage processing and other metal products machine operators are projected to be high growth occupations.

Figure 17: Proportion of Manufacturing-Related Occupations in 2024 and Projected Change, 2018 -2024

Source: EMSI Analyst, 2018

2.5 Education Profile and Talent Supply

Note about Data: The data for the Education Profile and Talent Supply was studied at the 2-digit code of the Classification of Instructional Programs (CIP) 2016. Due to the standardised data classification system and overlaps between the definitions of the classifications, it is best to interpret this data as a trend rather than drawing conclusions based on absolute numbers. The Classification of Instructional Programs (CIP) studied here represent those fields that are closely related to the manufacturing sector and are not an exhaustive list.

Analysing the education profile of Tillsonburg’s population aged 15 years and over, it was determined that approximately 5,475 residents aged 15 years and over had a postsecondary certificate, diploma or degree. 21% (1,155 people) of this population had a postsecondary certificate, diploma or degree degrees related to the manufacturing sector. The proportion of the population in Tillsonburg with manufacturing-related degrees at 21% is comparable to Oxford County at 24% and the province at 21%,

0%

2%

4%

6%

8%

10%

12%

14%

-15% -5% 5% 15% 25% 35% 45%

Tota

l occ

up

atio

ns

in 2

02

4 (

%)

Occupation Change 2018-2024 (%)

Motor vehicle assemblers, inspectors andtesters

Other metal products machine operators

Metalworking and forging machineoperators

Process control and machine operators,food and beverage processing

Welders and related machine operators

Construction millwrights and industrialmechanics

Material handlers

Manufacturing managers

Machining tool operators

Machinists and machining and toolinginspectors

Page 60: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 19

respectively.

Studying individual fields of study, Tillsonburg has a higher proportion of the population with Mechanic and repair technologies/technicians related degrees compared to County and Ontario. These degrees prepare individuals to apply technical knowledge and skills in the adjustment, maintenance, part replacement, and repair of tools, equipment, and machines. Relating this back to the staffing patterns, it can be understood that Tillsonburg does seem to have a good proportion of talent supply, capable of participating in the workforce.

Figure 18: Manufacturing-Related Field of Study, aged 15 years and over, 2016

Manufacturing related field of study - (CIP) 2016

Tillsonburg Oxford County Ontario

Population % Population % Population %

Mechanic and repair technologies/technicians

390 34% 2,815 29% 225,860 19%

Engineering technologies and engineering-related fields

295 26% 2,250 23% 237,775 20%

Construction trades 205 18% 2,000 21% 198,790 17%

Precision production 155 13% 1,645 17% 124,515 11%

Engineering 85 7% 720 7% 334,085 28%

Architecture and related services 25 2% 195 2% 51,845 4%

Total 1,155 100% 9,625 100% 1,172,870 100%

Source: Statistics Canada, 2016 Census of Population.

Figure 19 shows the percentage of age groups with educational degrees related to the manufacturing sector. It is understood that the largest group of the population with manufacturing sector degrees are 65 years and over. This compares to only 3% of the incoming labour force between the ages of 15 to 24 years. The core labour force (25 to 44 years) makes up 29% of the population, while the mature labour force (45 to 64 years) makes up 38% of the population.

Figure 19: Population Age, postsecondary certificate, diploma or degree in manufacturing related studies, 2016

Source: Statistics Canada, 2016 Census of Population.

3%

11%

18% 19% 19%

31%

0%

5%

10%

15%

20%

25%

30%

35%

15 to 24 years 25 to 34 years 35 to 44 years 45 to 54 years 55 to 64 years 65 years and over

Page 61: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 20

Analyzing the current talent available to participate in the workforce (Figure 19), it is identified that Tillsonburg might face a skills gap in the future. The incoming labour force may not be adequate to meet the future demand and fill vacant jobs that arise as the mature labour force starts exiting the workforce.

2.6 Manufacturing Industries

The manufacturing industries in Tillsonburg were studied using the Canadian Business Counts and complemented with the Town’s business directory.

Statistics Canada’s Canadian Business Counts provides a record of business establishments by industry and size, collected from the Canada Revenue Agency. The data collected includes all local businesses that meet at least one of the three criteria:

▪ Have an employee workforce for which they submit payroll remittances to CRA; or

▪ Have a minimum of $30,000 in annual sales revenue; or

▪ Are incorporated under a federal or provincial act and have filed a federal corporate income tax form within the past three years

According to Canadian Business Counts data, 1,194 business establishments were registered in Tillsonburg in 2018. Of these 45 businesses (4%) were businesses related to the manufacturing sector. Of the 45 industries, 26 industries are related to advanced manufacturing. The proportion of advanced manufacturing industries in Tillsonburg is higher than the county and provincial rates (Figure 20).

Figure 20: Manufacturing Industries, Tillsonburg, 2018

Industries (2018) Tillsonburg Oxford County

Tri-County

Ontario

Total Industries 1,194 10,334 27,159 1,367,11

8

Manufacturing Industries 45 366 938 36,939

Manufacturing Industries (%) total Industries 4% 4% 3% 3%

Advanced Manufacturing Industries 26 198 387 16,682

Advanced Manufacturing (%) total Manufacturing Industries

58% 54% 41% 45%

Source: EMSI Analyst, 2018

The proportion of manufacturing industries by individual sub-sectors in Tillsonburg is shown in Figure 21. The majority of manufacturing industries are involved in fabricated metal product manufacturing. These establishments are primarily engaged in processes resulting in the production of ferrous and non-ferrous metal products ranging from cutlery and hand tools to architectural and structural metal products, boilers, tanks and shipping containers.

Other major manufacturing industries in Tillsonburg include transportation equipment manufacturing, non-metallic mineral product manufacturing and machinery manufacturing.

Page 62: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 21

Figure 21: Manufacturing Industries by Sub-sectors, Tillsonburg, 2018

Source: EMSI Analyst, 2018

2.6.1 Comparative Industries Location Quotient (LQ)

Figure 22 shows the manufacturing industries concentration compared to Tri-County and Ontario in 2018.

When compared to the Tri-County, Tillsonburg has manufacturing industries on par with establishments in the Tri-County with an LQ of 1.09. Although specific sub-sectors such as computer and electronic product manufacturing industry shows a high concentration, Tillsonburg has one establishment in this sector employing from 1 to 4 employees.

When compared to the province, Tillsonburg has a high concentration of manufacturing industries with an LQ of 1.39. Specific sectors with a high concentration of businesses include fabricated metal product manufacturing, transportation equipment manufacturing and electrical equipment, appliance and component manufacturing and machinery manufacturing.

Tillsonburg has a high concentration of advanced manufacturing industries compared to both the Tri-County and the province. The high LQ of manufacturing industries in Tillsonburg indicates that the industry can be classified as an exporter.

10

6

4

43

3

2

2

2

2

2

21 1 1

Fabricated metal product manufacturing

Transportation equipment manufacturing

Non-metallic mineral product manufacturing

Machinery manufacturing

Textile product mills

Wood product manufacturing

Food manufacturing

Printing and related support activities

Chemical manufacturing

Electrical equipment, appliance and component manufacturing

Furniture and related product manufacturing

Miscellaneous manufacturing

Beverage and tobacco product manufacturing

Plastics and rubber products manufacturing

Computer and electronic product manufacturing

Page 63: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 22

Figure 22: Tillsonburg Manufacturing Industries Concentration Compared to the Tri-County and Ontario, 2018

Manufacturing Industries Tri-County Ontario

LQ Classification LQ Classification

Fabricated metal product manufacturing 0.85 Moderate 1.54 High

Transportation equipment manufacturing 0.46 Low 3.23 High

Non-metallic mineral product manufacturing 0.10 Low 2.74 High

Machinery manufacturing 0.13 Low 0.89 Moderate

Textile product mills 0.63 Low 5.61 High

Wood product manufacturing 0.04 Low 1.30 High

Food manufacturing 0.77 Moderate 0.46 Low

Printing and related support activities 0.05 Low 0.53 Low

Furniture and related product manufacturing 0.59 Low 0.58 Low

Miscellaneous manufacturing 0.02 Low 0.34 Low

Chemical manufacturing 1.03 On Par 1.23 Above

Average

Electrical equipment, appliance and component manufacturing 0.76 Moderate 1.51 High

Beverage and tobacco product manufacturing 1.97 High 1.00 On Par

Plastics and rubber products manufacturing 0.45 Low 0.63 Low

Computer and electronic product manufacturing 4.42 High 0.57 Low

Manufacturing Total 1.09 On Par 1.39 High

Advanced Manufacturing Total 1.40 High 1.28 High

Source: EMSI Analyst, 2018

The proportion of Tillsonburg’s manufacturing industries and their corresponding Location Quotients (LQ’s) were compared to manufacturing industries in Ingersoll and Woodstock. The results of this analysis are illustrated in Figure 23. The X-axis shows the percentage of manufacturing businesses in Tillsonburg and comparator communities. The Y-axis shows the LQ’s for these communities in 2018. The bubble size is a pictorial representation of the number of manufacturing industries in 2018 (size equals number of businesses). Key insights of this analysis include:

▪ Tillsonburg leads among comparator regions in terms of manufacturing industries at 3.8% ▪ All three comparator communities have a high concentration of industries compared to the

province, indicating that business in the manufacturing sector are spaces of competitive strength

Page 64: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 23

Figure 23: Concentration and Percent of Manufacturing Industries, 2018

Source: EMSI Analyst, 2018

2.6.2 Town’s Business Directory

The Town’s business directory, specific to the manufacturing industries, is summarised in Figure 25 and Figure 24. Manufacturing industries in Tillsonburg were also profiled by employee type, size of establishment and sub-sector. The data was then compared to the Canadian Business Counts (CBC).

The directory shows a total of 64 businesses in the Town, specific to the sector. These are businesses in Tillsonburg and do not include the surrounding region. The directory shows ten sole-proprietorships. Of the 54 industries with employees, the majority employ 1-4 employees.

The CBC shows that of the 45 manufacturing industries, 11 establishments are sole-proprietorships. Of the 34 establishments with employees, the majority employ 50-99 employees.

Figure 24: Manufacturing Business by Employee Type and Size of Establishment, 2018

Manufacturing Businesses

Total Without

Employees

With Employees

1-4 5-9 10-19 20-49 50-99 100-199 200-499 500+

Canadian Business Counts Number

45 11 6 3 4 5 8 3 5 0

% of Total 100% 24% 13% 7% 9% 11% 18% 7% 11% 0%

Town’s Business Directory Number

64 10 13 4 11 12 5 4 5 0

% of Total 100% 16% 20% 6% 17% 19% 8% 6% 8% 0%

Source: Town’s business directory, 2018 & EMSI Analyst, 2018

A discrepancy between Canadian Business Counts (CBC) and the business directory is identified with the directory reporting a higher number than the Business Counts. However, in terms of percentages, the businesses identified through both sources are similar. Fabricated metal product manufacturing and transportation equipment manufacturing is identified as the top industries in both the CBC and the town directory. These figures are useful as they provide a snapshot of local firms that operate in the public

1.30

1.32

1.34

1.36

1.38

1.40

1.42

3.5% 3.6% 3.6% 3.7% 3.7% 3.8% 3.8% 3.9%

LQ 2

01

8

Manufacturing Industries (%)

Tillsonburg

Ingersoll

Woodstock

Page 65: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 24

realm. Local businesses provide voluntary responses to Towns surveys that request registration of their business with the Town.

Figure 25: Manufacturing Industries, Tillsonburg, CBC 2018 & Town Directory

Manufacturing Industries

Canadian Business Counts

Town’s Business Directory

Number % Number %

Fabricated metal product manufacturing 10 22% 18 28%

Transportation equipment manufacturing 6 13% 8 13%

Non-metallic mineral product manufacturing 4 9% 2 3%

Machinery manufacturing 4 9% 6 9%

Textile product mills 3 7% 4 6%

Wood product manufacturing 3 7% 5 8%

Food manufacturing 2 4% 3 5%

Printing and related support activities 2 4% 3 5%

Chemical manufacturing 2 4% 3 5%

Electrical equipment, appliance and component manufacturing 2 4% 1 2%

Furniture and related product manufacturing 2 4% 3 5%

Miscellaneous manufacturing 2 4% 3 5%

Beverage and tobacco product manufacturing 1 2% 0 0%

Plastics and rubber products manufacturing 1 2% 2 3%

Computer and electronic product manufacturing 1 2% 0 0%

Textile mills 0 0% 0 0%

Clothing manufacturing 0 0% 1 2%

Leather and allied product manufacturing 0 0% 0 0%

Paper manufacturing 0 0% 1 2%

Petroleum and coal product manufacturing 0 0% 0 0%

Primary metal manufacturing 0 0% 1 2%

Total 45 100% 64 100%

Source: Town’s business directory, 2018 & EMSI Analyst, 2018

2.7 Top Employers

The top employers in Tillsonburg by employee number in the manufacturing sector are shown below.

Figure 26: Top Employers, Tillsonburg, 2018

Company Description of Activities Total Employees

THK Rhythm Automotive Canada, Ltd Automotive parts manufacturer 400

Marwood International Inc - Plant 2 Metal fabrication 450

Autoneum Canada Limited - Tillsonburg

Automotive parts manufacturing 340

Inovata Foods Corp Frozen food entrees 259

Page 66: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 25

Company Description of Activities Total Employees

Fleetwood Metal Industries Inc Metal stamping and welding technologies 200

Adient Seating Canada LP Manufacturing of Automotive Foam Seating 180

Titan Trailers Inc Custom tractor-trailer manufacturing 155

Townsend Lumber Inc Sawmill and logging company 150

Electrical Components International Manufacturer of electrical equipment 150

Freudenberg-NOK Sealing Technologies

Manufacturer of elastomer, silicone and rubber components

135

Source: Town’s business directory, 2018

2.8 Export Information

As an export-oriented sector, the manufacturing industry accounted for 83% of total exports in Tillsonburg with $1.9 billion in 2014. Exports in the manufacturing sector saw a growth of 19% from 2011 to 2014. Exports are important to count because they measure money coming into the region from outside, as opposed to money circulating within the economy.

Transportation equipment manufacturing accounted for the majority of exports with $1.3 billion followed by machinery manufacturing with exports of $188 million and plastics and rubber products manufacturing with exports of $103 million. Exports in the plastics and rubber products manufacturing sector have increased by 22% from 2011 to 2014. However, employment in this sector is declining. While growth in exports indicates that local manufacturers are becoming increasingly competitive in foreign markets, it does not necessarily contribute to sector employment growth.

Figure 27: Export, Manufacturing Industry, 2014

Source: EMSI Analyst, 2018

71.5%

6.2%

5.4%

4.9%

3.7%2.9%

2.7% 0.9%

0.4%

0.3%

0.3% 0.2%0.2% 0.2% 0.2%

0.03%

Transportation equipment manufacturing

Machinery manufacturing

Plastics and rubber products manufacturing

Food manufacturing

Electrical equipment, appliance and component manufacturing

Chemical manufacturing

Fabricated metal product manufacturing

Miscellaneous manufacturing

Beverage and tobacco product manufacturing

Furniture and related product manufacturing

Computer and electronic product manufacturing

Non-metallic mineral product manufacturing

Textile product mills

Wood product manufacturing

Paper manufacturing

Printing and related support activities

Page 67: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 26

2.9 Multipliers

Multipliers help us understand which industries would impact the economy most by their growth or decline. Multipliers can be studied in terms of sales, jobs and wages.

2.9.1 Sales Multipliers

Sales multipliers enable the identification of a highly-developed cluster in a community. A high sales multiplier indicates an established industry as every dollar fed into the cluster from the outside has a high ripple effect, propagating through the regional economy for some time before it leaks out. Food manufacturing, fabricated metal product manufacturing, transportation equipment manufacturing, chemical manufacturing and machinery manufacturing show high sales multiplier. For example, every $1 of sales coming into the food manufacturing sector results in a total of $11.72 in sales.

2.9.2 Jobs Multipliers

A jobs multiplier indicates how important a specific industry is for job creation. A high job multiplier indicates a high impact industry. Food manufacturing, fabricated metal product manufacturing, chemical manufacturing, machinery manufacturing are the top high impact industries in Tillsonburg. For example, fabricated metal product manufacturing with a job multiplier of 8.32 means that for one job added to the industry, seven more jobs are created elsewhere in the economy.

2.9.3 Earnings Multipliers

Industry earnings are the total amount of employee compensation paid out by employers in the industry. Food manufacturing and fabricated metal product manufacturing are sectors with high sales multiplier. An earnings multiplier of 12.04 in the food manufacturing sector means that every dollar of compensation, an additional $12.04 is paid out in wages, salaries, and other compensation throughout the economy.

Figure 28: Manufacturing Industry Multipliers, 2014

Manufacturing Industries Total Sales Total Jobs Total Wages

Beverage and tobacco product manufacturing 2.53 3.74 3.25

Chemical manufacturing 7.87 7.89 7.08

Clothing manufacturing 3.00 0.00 0.00

Computer and electronic product manufacturing 6.13 1.21 1.20

Electrical equipment, appliance and component manufacturing 4.04 1.09 1.08

Fabricated metal product manufacturing 9.95 8.32 8.14

Food manufacturing 11.72 13.16 12.04

Furniture and related product manufacturing 3.39 2.50 2.44

Leather and allied product manufacturing 3.00 0.00 0.00

Machinery manufacturing 7.79 7.88 7.15

Miscellaneous manufacturing 2.07 1.18 1.12

Non-metallic mineral product manufacturing 5.49 3.12 2.75

Paper manufacturing 2.74 3.52 3.29

Page 68: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 27

Manufacturing Industries Total Sales Total Jobs Total Wages

Petroleum and coal product manufacturing 1.00 0.00 0.00

Plastics and rubber products manufacturing 2.50 2.64 2.49

Primary metal manufacturing 5.00 0.00 0.00

Printing and related support activities 1.45 1.34 1.32

Textile mills 3.00 0.00 0.00

Textile product mills 2.26 2.53 2.30

Transportation equipment manufacturing 8.01 6.95 5.98

Wood product manufacturing 4.12 3.92 4.21

Source: EMSI Analyst, 2018

2.10 Supply Chain Analysis

The Supply chain analysis can be used to find leakage in the economy, or where the money is leaving the region that might otherwise be captured. It can also be used as an exploratory tool for deciding what businesses might be a good fit for the community.

In 2014, $514 million was made in purchases from the manufacturing sector in Tillsonburg. $279 million (54%) were in-region purchases, meaning that the money was spent within Tillsonburg. $234 million (46%) were out-region purchases, indicating money leaking out of Tillsonburg.

Figure 29 shows the industry supply chain for the input-output year 2014. The in-region and imported purchases represent the percentage of dollars flowing from one sector to another sector.

The transportation equipment manufacturing with $232 million accounts for 45% of total purchases in the manufacturing sector. 98% of purchases made by this sector are within the region, meaning the supply chain for this sector is well defined and adequate for the sustained growth of the sector.

Primary metal manufacturing with $95 million accounts for 19% of total purchases in the manufacturing sector. Data shows that 100% of the money in this sector is spent outside the region, indicating a wide gap in the sector’s supply chain. This represents $95 million in losses for the region.

Machinery manufacturing with $17 million in purchases shows that 59% of purchases are in-region purchases. Opportunities exist for the sector to expand businesses in the region as in-purchase dollars account for at least 50% of total purchases. It is generally understood that sectors that can account for at least 50% of total purchases in-region have identified a supply chain that can be further leveraged and improved upon to increase the in-region purchases and thus reduce the dependence on imports to ensure businesses growth.

Figure 29: Manufacturing Industry Supply Chain Analysis, 2018

Purchases from Total

Purchases

In-region Purchases Imported Purchases

$ % $ %

Transportation equipment manufacturing $232,960,087 $228,277,051 98% $4,683,036 2%

Primary metal manufacturing $95,957,334 $0 0% $95,957,334 100%

Plastics and rubber products manufacturing $42,746,349 $15,363,605 36% $27,382,744 64%

Chemical manufacturing $32,888,417 $6,446,540 20% $26,441,877 80%

Page 69: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 28

Purchases from Total

Purchases

In-region Purchases Imported Purchases

$ % $ %

Fabricated metal product manufacturing $29,713,021 $6,241,898 21% $23,471,123 79%

Machinery manufacturing $17,144,638 $10,088,755 59% $7,055,883 41%

Food manufacturing $12,155,117 $5,106,943 42% $7,048,174 58%

Computer and electronic product manufacturing

$11,982,251 $635,904 5% $11,346,347 95%

Electrical equipment, appliance and component manufacturing

$8,924,830 $3,592,857 40% $5,331,973 60%

Paper manufacturing $5,745,280 $603,569 11% $5,141,711 90%

Non-metallic mineral product manufacturing $5,647,458 $719,163 13% $4,928,295 87%

Miscellaneous manufacturing $4,674,397 $962,823 21% $3,711,574 79%

Petroleum and coal product manufacturing $3,420,457 $0 0% $3,420,457 100%

Textile product mills $2,888,655 $442,833 15% $2,445,822 85%

Textile mills $2,442,745 $0 0% $2,442,745 100%

Wood product manufacturing $2,066,025 $570,015 28% $1,496,011 72%

Beverage and tobacco product manufacturing $1,291,086 $296,142 23% $994,943 77%

Printing and related support activities $971,382 $39,172 4% $932,210 96%

Furniture and related product manufacturing $386,100 $191,562 50% $194,538 50%

Clothing manufacturing $224,956 $0 0% $224,956 100%

Leather and allied product manufacturing $34,609 $0 0% $34,609 100%

Total Manufacturing Purchases $514,265,194 $279,578,832 54% $234,686,362 46%

Source: EMSI Analyst, 2018. Note: These include purchases made only by the Manufacturing sector and do not account for all industry sectors that represent the full supply chain of the sector.

2.11 Commuting Patterns

Note about Data: The data for Commuting Patterns was studied using the Statistics Canada, 2016 Census of Population, Commuting flow, Geography of residence and Geography of Work data. Because of the difference in year and differences in the collection and assimilation of data, the results of this analysis should not be directly compared to the EMSI Analyst jobs data. Due to these discrepancies, it is best to interpret this data to understand the commuting flow of workers and if the community of interest is an importer or exporter of workers.

The labour flow of the workforce provides a representation of the movement of labour in and out of a community. It compares the number of jobs held by residents of a community to the number of jobs held by people working in the community. The residents of the community may work in the same community or travel outside the community to work. Similarly, the people working in the community may be its residents or people living outside the community but still commute to work in the community. Figure 30 shows the data for the residents of Tillsonburg and those employed in Tillsonburg in the manufacturing sector.

▪ Residents of Tillsonburg - Approximately 1,725 residents of Tillsonburg may be employed in the manufacturing sector. These include Tillsonburg’s resident population who work in Tillsonburg’s

Page 70: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 29

manufacturing sector (850 people), and Tillsonburg’s resident population who travel outside Tillsonburg to work in the manufacturing sector of other municipalities (875 people).

▪ Employed in Tillsonburg - Approximately 2,665 people are employed in Tillsonburg’s manufacturing sector. These include Tillsonburg residents who work in Tillsonburg’s manufacturing sector (850 people) and residents from other municipalities commuting to work in Tillsonburg’s manufacturing sector (1,815 people).

Figure 30 showcases that Tillsonburg is a net importer of manufacturing sector workers. Net import indicates that a community has a surplus of jobs that employs its residents and attracts workers from nearby communities. While Tillsonburg loses 875 residents to the manufacturing sector of other municipalities, it still attracts 1,815 people from other municipalities commuting to work in Tillsonburg’s manufacturing sector. Thus, taking into consideration the Net Import (+)/Net Export (-), Tillsonburg imports 940 workers to work in its manufacturing sector.

Figure 30: Labour Flow for the Manufacturing Sector, Tillsonburg, 2016

Manufacturing Sector Resident of Tillsonburg

Employed in Tillsonburg

Net Import (+)/Net Export (-)

Total Manufacturing Sector Jobs 1,725 2,665 940 (+)

Source: Statistics Canada, 2016 Census of Population.

Studying the commuting patterns by specific industry sub-sectors (Figure 31) shows that Tillsonburg imports most workers to work in transportation equipment manufacturing, machinery manufacturing and food manufacturing. Tillsonburg has a lower proportion of its resident workforce employed in these sectors.

Figure 31: Net Export (-)/Net Import (+) of Labour by Manufacturing Industry Subsectors, 2016

Manufacturing Sector Resident of Tillsonburg

Employed in Tillsonburg

Net Import (+)/Net Export

(-)

Transportation equipment manufacturing 1,005 1,545 540

Machinery manufacturing 135 290 155

Food manufacturing 95 240 145

Electrical equipment, appliance and component manufacturing 10 80 70

Fabricated metal product manufacturing 135 195 60

Plastics and rubber products manufacturing 40 70 30

Chemical manufacturing 10 35 25

Furniture and related product manufacturing 45 60 15

Non-metallic mineral product manufacturing 30 40 10

Wood product manufacturing 75 50 -25

Primary metal manufacturing 20 0 -20

Miscellaneous manufacturing 50 35 -15

Beverage and tobacco product manufacturing 20 10 -10

Textile product mills 20 10 -10

Textile mills 0 0 0

Page 71: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 30

Manufacturing Sector Resident of Tillsonburg

Employed in Tillsonburg

Net Import (+)/Net Export

(-)

Clothing manufacturing 0 0 0

Leather and allied product manufacturing 0 0 0

Paper manufacturing 10 10 0

Printing and related support activities 10 10 0

Petroleum and coal product manufacturing 0 0 0

Computer and electronic product manufacturing 20 20 0

Source: Statistics Canada, 2016 Census of Population. Note about Data: The Net Import (+)/Net Export (-) data by subsectors show that Tillsonburg imports 970 workers.

As illustrated in Figure 32, Tillsonburg imports most of its manufacturing sector workers from Norfolk County (580 workers) and the Municipality of Bayham (270 workers). Tillsonburg loses most of its manufacturing sector workers to the Town of Ingersoll (180 workers) and the Town of Woodstock (90 workers).

Figure 32: Net Export (-)/Net Import (+) of Labour by Communities, 2016

Source: Statistics Canada, 2016 Census of Population

-180-90

-15-15-15-10-10-10-10-10-10-10

-500101015

455565

8590

105270

580

-300 -200 -100 0 100 200 300 400 500 600 700

Ingersoll

Brantford

Stratford

Guelph

Kitchener

Southwold

Haldimand County

Central Elgin

Temagami

Aylmer

South-West Oxford

Norwich

Bayham

Net Import (+)/Net Export (-) of Labour

Page 72: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 31

3. Sub-Cluster Model Review A best practices review was conducted to learn from existing cluster initiatives across North America and around the world.

Industry clusters are increasingly gaining recognition as compelling frameworks for economies looking to support and grow their economies. While firms and communities’ benefit from clustering through agglomeration economies, a clear understanding of the cluster model is required to recognise growth. Clusters in its simplest form are a ‘group of firms clustered together as a result of geographic proximity and similar industry processes’.

The sub-cluster model review identified the following case studies to help inform this report.

▪ Smart Industry Field Labs, the Netherlands

▪ Bluewater Wood Alliance, Ontario, Canada

▪ Advanced Manufacturing Supercluster, Canada

▪ Additive Manufacturing Cluster, Northeast Ohio, USA

▪ Conexus, Advanced Manufacturing Cluster, Indiana, USA

▪ Luxinnovation, Luxembourg Materials and Manufacturing Cluster, Luxembourg

3.1 Smart Industry Field Labs, the Netherlands

The Smart Industry Field Labs were initiated in 2014 as a result of the Smart Industry Action Agenda, which stipulates the use of ICT opportunities to make the industry more competitive. Field Labs are practical environments in which companies and knowledge institutions develop, test and implement effective Smart Industry solutions12.

The field labs are funded by both public and private partnerships, including business networks and educational institutions. In terms of decision making, partners are involved through consultations to meet the mandates of the Field Lab13. Some of these labs have a regional focus, while others have a national or European focus. The central idea of these programs is to accelerate research and innovate. Field labs strengthen connections with research, education and policy on a specific industry theme or research. Goals include creating conditions for long-term business success for their partners, including the support of SMEs and start-ups in their innovation activities14.

There is not one single reason behind the creation of a Field Lab. These programs are founded for many reasons depending on the needs of the initiators. In general, the main motivations to start a Field Lab include the fact that some technological advances are easier to achieve through the collaboration of various firms rather that one alone.

12 https://smartindustry.nl/fieldlabs/ 13 Claire Stolwijk, Matthijs Punter. Going Digital: Field labs to accelerate the digitization of the Dutch Industry. May 31, 2018 14 Claire Stolwijk, Matthijs Punter. Going Digital: Field labs to accelerate the digitization of the Dutch Industry. May 31, 2018

Page 73: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 32

Currently, there are 32 Smart Industry field labs active in the Netherland which address various Smart Industry subjects and technologies such as flexible manufacturing, 3D printing, robotics etc. Figure 33 shows the examples of Field Labs related to manufacturing, the motivations behind their creation and the stakeholders involved in their creation.

Figure 33: Creation of Manufacturing Field Labs in the Netherlands

Field Labs Reason to create the Field Labs Stakeholders involved in the

creation

Region of Smart Factories

The Field Lab was initiated to develop the Northern Netherlands into the home of Smart Factories, thereby laying the foundations for strong manufacturing industry. The RoSF consortium was established around the main two original equipment manufacturing companies; Philips, and Fokker, but has since grown into a group of 32 partners (SMEs, knowledge institutes and education institutions).

The Field Lab was initiated by the NOM (the Northern regional development organization). This is a public organization.

Smart Bending Factory

Based on the wish to significantly increase productivity with robot support through direct CAD coupling, smart (vision) technology, more flexible production systems and human-robot collaboration a Field Lab was created to be able to test these technologies with the involved partners

Brain port Industries (the global open supply network for High-Tech companies, located in the South of the Netherlands) is the initiator of the Field Lab.

Multi-material 3D Printing

The wish to have a demonstration platform as a future factory for 3D printing to facilitate and transfer the technology and knowledge to the industry motivated the creation of the Field Lab.

The Field Labs was initiated by 2 knowledge institutes. The TU Eindhoven and TNO.

Ultra-Personalized Products and Services

The creative industry had the wish to apply the added value of the creative sector in the manufacturing sector by the development of radical new product propositions for the manufacturing industry (e.g. ultra-personalized products and services such as the development of a specific foot brace). The Field Lab was created to test and experiment with these product propositions in a test facility.

ClickNL Is the initiator of the Field Lab. ClickNL is a top Dutch consortium of knowledge and innovation (TKI) that makes a link between researchers and creative professionals

Source: Claire Stolwijk, Matthijs Punter. Going Digital: Field labs to accelerate the digitization of the Dutch Industry. P. 20

3.2 Bluewater Wood Alliance, Ontario, Canada

The Bluewater Wood Alliance was created to coordinate and facilitate the needs of the advanced wood manufacturing in southern Ontario. The primary mission of this organization is ‘to increase our members’ competitiveness by improving their know-how, raising their powers of innovation and increasing internationalization’15.

The organization works as a not-for-profit corporation, governed by a board of directors, made up

15 https://bluewaterwoodalliance.com/about-us/

Page 74: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 33

entirely of member firms. The alliance is funded by a combination of membership fees plus federal and provincial partners on a project basis. It acts as an intermediary and works with the government to articulate clusters objectives and secure funding on a project basis.

The Bluewater Wood Alliance offers the following benefits to members:

▪ Learning, Plant Tour & Networking Events: these events allow members to network and develop strategic industry relationships.

▪ Export Development Initiatives: the alliance explores export opportunities for members and engages in accessing government support to allow members to attend trade missions

▪ Collaborative Project Funding: the alliance actively engages with government partners to support and fund projects

▪ New Technology: technology adaptability is a key focus area of the alliance and thus continuously monitors and shares technological advancements in wood processing and wood-related IT with its members.

▪ Training & Skills Development: the alliance works with community colleges, high schools and independent providers in the region in creating programs for training and skills development.

▪ Connectivity: the alliance fosters an environment of communication and collaboration among its members to gain access to information on events, collaborative projects, programs and training sessions.

The alliance established in 2011 in Midwestern Ontario, has over 80 member organizations, including manufacturers and suppliers. The alliance recently secured the Ontario Ministry of Agriculture, Food and Rural Affairs – Rural Economic Development (OMAFRA – RED) project funding to help companies innovate and improve product development processes. The initial funding of $500,000 leveraged over $3 million in member project investment over the past two years. The alliance has also enabled members to target new markets such as the Index show in Dubai, UAE, and the High Point Market in High Point, North Carolina16.

The Bluewater Wood Alliance is one of the five winning bidders of the $950 million federal funding awarded by the federal government for the ‘superclusters’ initiative17.

3.3 Advanced Manufacturing Supercluster, Canada

In 2018, the Canadian Federal Government launched Canada’s New Supercluster Initiative to grow the economy, create new jobs, improve competitiveness and turn Canada into a leader of innovation18. The main idea behind this initiative is that companies of all sizes, academic institutions and non-for-profit organization come together to create new ideas and innovate in their respective industries. The goal is that Canadians benefit from more jobs, pioneering research and innovation.

According to Innovation, Science and Economic Development Canada, the Advanced Manufacturing Supercluster was created with the purpose of build-up manufacturing capabilities; introduce new

16 http://www.woodworkingcanada.com/r5/showkiosk.asp?listing_id=5191202 17 http://www.woodworkingcanada.com/r5/showkiosk.asp?listing_id=5537494 18 Government of Canada. Next Generation Manufacturing Supercluster kicks into high gear. November 13, 2018

Page 75: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 34

technologies such as robotics and 3D printing. The initiative has a special focus on training and technology implementation. Although the program is still in its initial stages, it is expected to allow for the creation of more than 50,000 jobs and increase Canada’s GDP by more than $50 billion over the next ten years. Some of the sample activities of the program include19:

▪ Technology leadership by developing research and technology-based projects in areas such as product and process design

▪ Partnerships for scale by facilitating technology acquisition, demonstration and scale-up

▪ Diverse and skilled talent pools by supporting training, research centres and work-integrated programs

▪ Access to innovation by facilitating access to technology and expertise while providing solutions concierge service for manufacturers and tech firms.

▪ Global advantage by improving supplier capacities in international supply chains while attracting talent and investment to Canada.

This Advanced Manufacturing Supercluster initiative is currently being managed by Next Generation Manufacturing Canada, an industry-led not-for-profit organization governed by an independent board of directors and a team of executive managers who work for the various partners of the organization20.

Industries of all sizes can apply for a free membership by agreeing with the terms of the program. Memberships are also open for industry networks and groups, government agencies, education institutions and researchers.

3.4 Conexus, Advanced Manufacturing Cluster, Indiana, USA

Conexus Indiana is an advanced manufacturing cluster in Indiana that promotes the advanced manufacturing and logistics economy through partnerships and innovative collaborations between industries, academic and public-sector partners.

Conexus Indiana is an initiative by a CEO-led “holding company”, Central Indiana Corporate Partnership (CICP). The company houses six distinct economic development initiatives and included cluster initiatives such as Conexus, BioCrossroads (life-sciences) and AgriNovus (agriculture biosciences). Conexus Indiana was formed in 2007 with the following focus:

▪ Amplify awareness and understanding of the impact and opportunity of advanced manufacturing and logistics

▪ Inspire talent to learn about advanced manufacturing and gain skills and build careers

▪ Forge collaborations with advanced manufacturing and logistics companies to leverage opportunities and drive continued growth

▪ Anticipate emerging trends and thought leadership in the advanced manufacturing and logistics

19 Innovation, Science and Economic Development Canada. Retrieved from <https://www.ic.gc.ca/eic/site/093.nsf/eng/00010.html> 20 Next Generation Manufacturing Canada. Retrieved form <https://www.ngen.ca/who-we-are>

Page 76: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 35

Conexus Indiana has over 300 members and is led by industry councils, to ensure the continued growth of the aerospace and defence, logistics and automotive industry clusters. It has developed industry-specific curriculum and educational pathways for high school and post-secondary institutions and actively collaborates with Indiana’s industry, academic and public-sector partners to ensure sustained industry growth. Recent successes of the program include the INvets program that matches companies with veterans to answer skills shortage and the securing of $2 billion per year in funding for the state to address infrastructure needs21.

3.5 Additive Manufacturing Cluster, Northeast Ohio, USA

The Additive Manufacturing Cluster is a membership-based organization created to accelerate the use and adoption of 3D printing technologies among member companies.

This cluster was created in 2016 after a study that identified the increasing demand for 3D printing. The study concluded that Northeast Ohio had many supply chain strengths and is placed well to support its strong manufacturing base to adopt the use of 3D printing to gain a competitive advantage in the market.

The main goals of this cluster are22:

▪ Form a regional innovation cluster that relies heavily on focused engagement with America Makes and that establishes northeast Ohio as the nexus of AM in the Midwest.

▪ Drive expanded applications of AM for tooling, fixtures, and enhanced manufacturing productivity by making investments in technical support, capital equipment, workforce development, and industry-based educational programs.

▪ Use formal education and workforce training initiatives to boost the adoption of advanced manufacturing and place a strong emphasis on the development and retention of design and engineering talent.

▪ Build out supply chain strengths in the key market verticals of the automotive, biomedical and aerospace industries, including an attraction strategy for key gaps in the existing supply chains.

▪ Establish a framework that will foster entrepreneurship and commercialization of AM supply chain technologies, as well as the northeast Ohio “maker” community.

Today the cluster brings together 57 companies and has promoted the industry sector through several events. The cluster also was awarded $66,000 from Jobs Ohio and $75,000 from the Burton D. Morgan Foundation to continue cluster development.

3.6 Luxinnovation, Luxembourg Materials and Manufacturing Cluster, Luxembourg

This cluster is managed by Luxembourg’s economic development and investment organization. The purpose of this initiative is to foster innovation, business development, and cross-sector cooperation.

21 https://www.conexusindiana.com/stakeholders/ 22 Northeast Ohio Additive Manufacturing Cluster. Retrieved from <https://neohioamcluster.org/what-is-the-cluster/>

Page 77: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 36

This cluster focuses on composite materials, bio-sourced materials, nanomaterials and industry 4.0 (which includes automation and robotics).

This cluster also works as a member-based organization. Some of the support services provided by this cluster include business development, research and development, funding, technology transfer and partner search.

The main objectives of the initiatives are23:

▪ Contribute to the implementation of new technologies and the creation of high added value in the industry ecosystem (with a special focus on industry 4.0, additive manufacturing, automation and robotics)

▪ Promote the Luxembourg industry in the Greater Region and at the international level to foster the local economy

▪ Stimulate innovation and business development through public-private partnerships and cross-sector flagship projects.

3.7 Key Learnings for Tillsonburg

Cluster development must be based on identified and validated industry opportunities. While the exact factors that generate robust agglomeration economies are not completely understood, the following factors are critical in the development of clusters.

▪ Location: the co-location of firms, academic institutions and R&D establishments, venture capitalists and government institutions allow for the attraction of skilled labour and foster interactions and knowledge spillovers while keeping transaction costs at a minimum

▪ Critical mass: the co-location of firm entails that the supply chain is well developed, and firms can produce economies of scale. Also, the productivity and overall quality of products as improved and firms focus on continuous innovation to remain competitive

▪ Linkages: clusters lead to “co-opetition”, by which firms recognise mutual benefits and develop trust. Firms can actively collaborate on projects and improve their supply chain links and improve market reach. It is understood that clustering allows for firms to be more innovative than their peers not located in clusters

Cluster Success Factor Notes

Unique Industry Opportunity ▪ Focused industry opportunities are identified and understood.

▪ Investment is focused and measured.

23 Luxinnovation. Retrieved from < https://www.luxinnovation.lu/cluster/luxembourg-manufacturing-cluster/>

Page 78: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

MDB Insight – Town of Tillsonburg – High-Tech Manufacturing Sub-Cluster Action Plan Page 37

Cluster Success Factor Notes

Partnerships

▪ Public-Private partnerships are engaged

▪ Ideal partnerships are private-sector driven

▪ Educational and government institutions play supportive roles

Co-Opetition ▪ Clusters are collective initiatives; partners work collaboratively

toward mutually beneficial goals.

Long-Term Focus

▪ Clusters are developed with the ultimate goal of creating a strong business ecosystem. Immediate job creation and profit are secondary.

▪ Includes initiatives such as strengthening the supply chain, securing funding and partnering with academic institutions

Community Champions ▪ Clusters have the support of business leaders in the

community, who are in term given support by government partners.

Central Hub

▪ Clusters need a central physical or digital space for businesses/entrepreneurs to congregate.

▪ Sharing space leads to synergies and innovative idea sharing.

Page 79: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

TILLSONBURG DISTRICT REAL ESTATE BOARD

YEAR TO DATE MONTHLY

2019 2018 % Difference 2019 2018 % Difference

$ value of Total Units Sold $174,054,813 $178,391,396 -2.43% $29,695,442 $32,768,969 -9.38%$ value of Residential Units Sold $140,536,121 $135,334,096 3.84% $26,050,400 $28,295,569 -7.93%$ value of Other Units Sold $33,518,692 $43,057,300 $3,645,042 $4,473,400

Total # of Units Sold 418 450 -7.11% 80 89 -10.11%# of Residential Units Sold 355 397 -10.58% 71 80 -11.25%# of Other Units Sold 63 53 9 9

Total # of New Listings 590 664 -11.14% 87 126 -30.95%Total # of New Residential Listings 488 555 -12.07% 80 110 -27.27%Total # of Other New Listings 102 109 7 16

Total # Currently on Market See Monthly Numbers 227# of Residential Currently on Market See Monthly Numbers 161# of Other Listings Currently on Mkt See Monthly Numbers 66

Accum. Accum. Month Reporting Month ReportingSALES BY CATEGORY 2019 TTL 2018 TTL 2019 2018 AVERAGE RESIDENTIAL SALE PRICE$0 - $159,999 33 40 7 7$160,000 - $179,999 4 8 1 1 2019 2018 % Difference$180,000 - $199,999 5 18 2 6 MONTH $366,907 $353,695 3.74%$200,000 - $499,999 291 305 61 61 YTD $395,876 $340,892 16.13%$500,000 - $599,999 35 33 4 5$600,000 - $799,999 26 24 2 6Over - $800,000 24 22 3 3

MLS® ACTIVITY FOR THE MONTH ENDING JUNE, 2019Bayham Munic, Norfolk County, Norwich Twp, South-West Oxford Twp, Tillsonburg

YTD Totals - New Listings are run monthly as a ytd total & may not match the month to month accumulative total due to deleted listing(s)

The information only represents MLS® listings sold and reported through the Ontario Collective®. The information has been drawn from sources deemed to be reliable,but the accuracy and completeness of the information is not guaranteed. In providing this information, the Tillsonburg District Real Estate Board does not assume any responsibility or liability.

Page 80: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

Cross Property Thumbnail

31 VICTORIA STREET, Tillsonburg, ON N4G 3Z5MLS®#: 203742

Price: $749,900.00DOM: 8 Status: ActiveSqft Total: 0Year Built: List Date: 26-Jun-2019Lot Size: 1-2.99 AcresLot Front: 67 Acres: 1.60Recreational: No Waterfront: No NoBuilding Type: InstitutionalSubdistrict: NW

Access: Paved Road

An opportunity seldom found! Enter into this solid one storey brickbuilding and be greeted by a huge foyer/vestibule. Multi stall his & herswashrooms along with storage areas. The main building offers a massiveopen concept sunken worship/meeting room (60' X 60') with seating for400+. This building was constructed in the late 80's and has beenbeautifully maintained & cared for. Large on-site fenced parking area withadditional street parking. Minor Institutional Zone (MI1) allows for manyattractive downtown usages. This building and property has been superblymaintained by present congregation. All measurements are approximate.COLDWELL BANKER - G.R.PARET REALTY LIMITED, BROKERAGEGARY PARET, Broker of Record (519) 983-6357

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

39 OXFORD STREET, Tillsonburg, ON N4G 2G2MLS®#: 175668

Price: $469,900.00DOM: 143 Status: ActiveSqft Total: 2,000Year Built: List Date: 11-Feb-2019Lot Size: Under .5 AcreLot Front: 101 Acres:Recreational: No Waterfront: No NoBuilding Type: BusinessSubdistrict: SW

Access: Municipal road, Paved Road, Year Round

Building and Business owned by Seller for sale but not business namewhich is being retained by Seller. Note: Building and Business may bepurchased through Share Purchase Agreement. Note: All Offers to beconditional upon Seller's Lawyer approval for seven days.T.L. WILLAERT REALTY LTD. BROKERAGETERRY WILLAERT, Broker of Record (519) 688-7169

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

152 TILLSON AVENUE, Tillsonburg, ON N4G3A8MLS®#: 176826

Price: $79,900.00DOM: 129 Status: ActiveSqft Total: 0Year Built: List Date: 25-Feb-2019Lot Size: Under .5 AcreLot Front: 60 Acres:Recreational: No Waterfront: No NoBuilding Type: BusinessSubdistrict: NE

Welcome to Auto Spa Plus - JJS E-Bikes Sales and Service! Don't miss youropportunity to be the owner of a long-standing Tillsonburg business forover 30 years. This business is a two headed beast that provides incomeon a near exclusive level of Tillsonburg area scooters and E-bikes withrental possibility. Also, enjoy a heavy service and auto detailingcomponent with many long-standing regular and repeat clients. This jobcan be managed by one person but currently operates with the help ofsome casual part-time labour. Price includes many chattels including$20,000 floating scooter and E-bike retail inventory as well as $8,000 intrade fixtures and equipment related to the wash and detail business.Financial details can be provided with further interest and inquiry. Ownerwilling to stay on for a period of time to help with transition. This is acash heavy business with a ton of goodwill. Call today for more info!CENTURY 21 HERITAGE HOUSE LTD, BROKERAGELANCE MACKENZIE, Sales Representative (226) 378-0345

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

85 BROADWAY STREET, Tillsonburg, ON N4G 3P5MLS®#: 198153

Price: $45,000.00DOM: 37 Status: ActiveSqft Total: 0Year Built: List Date: 28-May-2019Lot Size: Not ApplicableLot Front: 0 Acres:Recreational: No Waterfront: No NoBuilding Type: RetailSubdistrict: SW

Very well-known ESTABLISHED BUSINESS OPPORTUNITY! Premium, high-visibility location in the heart of downtown Tillsonburg. Nestled amongstylish boutiques and restaurants. Fun, diversified turnkey operation hasno competitors in the region. Key product lines include Billiards, Darts,Paintball & Airsoft. Suppliers include Canada Billiards and Minmau. Anopportunity to work reasonable hours with potential to expand. Ideal forthe motivated entrepreneur who is young at heart. Owner is retiring fromlong-term, family-run business. Great opportunity to continue currentbusiness, add new products, or blend your own unique theme. 18 yearhistory of local loyal customers. Owner will train, and willing to assistwith financing. Note: Included Fixtures and Inventory to be determined atcost.T.L. WILLAERT REALTY LTD. BROKERAGETERRY WILLAERT, Broker of Record (519) 688-7169

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

101 BIDWELL STREET, Tillsonburg, ON N4G 3V1MLS®#: 182902

Price: $4,000.00DOM: 105 Status: ActiveSqft Total: 3,760Year Built: List Date: 21-Mar-2019Lot Size: 0.5-0.99 AcresLot Front: 67 Acres:Recreational: No Waterfront: No NoBuilding Type: MixedSubdistrict: NW

+- 3750 sq feet of space available. In addition to all EC zoning possibleuses include Restaurant, Brewery, Assembly hall and many more. Excellentlocation downtown Tillsonburg with ample amounts of on site parking andpublic parking across the road. Options for outdoor patio and exteriorfacade changes are available. Use of this space includes a elevator andbarrier free access if needed.CENTURY 21 HERITAGE HOUSE LTD, BROKERAGEDAVID GILVESY, Sales Representative (519) 688-7273

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

52 SIMCOE STREET, Tillsonburg, ON N4G 2H5MLS®#: 165768

Price: $3,900.00DOM: 222 Status: ActiveSqft Total: 4,100Year Built: List Date: 24-Nov-2018Lot Size: Under .5 AcreLot Front: 0 Acres:Recreational: Waterfront: No NoBuilding Type: BusinessSubdistrict: SE

Access: Paved Road, Year Round

Free standing commercial building with loads of parking. Recentlyinstalled rubber membrane roof. Roof top heating & cooling. Main floorwith approx. 4100 sq.ft. Lower level has lots of development. This rentallocated on one of Tillsonburg's business arteries. Ideal for many usagesunder Tillsonburg's Service Commercial zoning. Lessee responsible formonthly rental plus utilities, own content & liability insurance, business,tax and apportioned snow plowing.RE/MAX TRI-COUNTY REALTY INC. BROKERAGEMAURICE DELAERE, Broker (519) 688-8047

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

Page 81: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

55 BROCK STREET E, Tillsonburg, ON N4G 1Z7MLS®#: 170012

Price: $3,200.00DOM: 170 Status: ActiveSqft Total: 3,800Year Built: List Date: 15-Jan-2019Lot Size: Under .5 AcreLot Front: 70 Acres:Recreational: Waterfront: No NoBuilding Type: Office(s)Subdistrict: SE

Access: Paved Road, Year Round

Prime Commercial Space in Tillsonburg, just under 4000 sq ft across fromthe post office. Main floor and lower level, Professional space all recentlyupdated, new windows and insulation. Several offices, Lunch room, Boardroom, open training area, 3 washrooms, front and rear entry. Near to allamenities downtown. Lots of parking available. Convenient location foryour office or business. Monthly Price includes everything except propertytax.ROYAL LEPAGE R.E.WOOD REALTY, BROKERAGEROB KOPPERT, Broker of Record (519) 532-4355

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

19 BALDWIN STREET #Upper, Tillsonburg, ON N4G 3P4MLS®#: 184205

Price: $3,000.00DOM: 94 Status: ActiveSqft Total: 3,000Year Built: List Date: 01-Apr-2019Lot Size: Under .5 AcreLot Front: 0 Acres:Recreational: No Waterfront: No NoBuilding Type: Office(s)Subdistrict: SW

Downtown Tillsonburg prime office space. Most offices have lots of naturallight Lots of parking. You can rent the total square footage or it can bedivided to suit your needs.TROPHY PROPERTY CORP., BROKERAGEROSE RAVIN, Broker (519) 983-6281

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

509 BROADWAY STREET N, Tillsonburg, ON N4G 3S8MLS®#: 171619

Price: $1,445.00DOM: 167 Status: ActiveSqft Total: 289Year Built: List Date: 18-Jan-2019Lot Size: 0.5-0.99 AcresLot Front: 206 Acres: 0.71Recreational: No Waterfront: No NoBuilding Type: RetailSubdistrict: NW

Access: Year Round

A business owner with a well established nationally recognized gas barand convenience store brand is looking for a complimentary tenant. Thisprime location offers high foot traffic and extended hours increasing thepotential for a successful service business. The Service Commercial Zoningaccommodates a variety of uses. Lessor is open to negotiated lease afterpre-qualifying the suitability and the needs of the Lessee.T.L. WILLAERT REALTY LTD. BROKERAGEROBERT ABBOTT, Broker (519) 550-1672

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

21 BROCK STREET #3, Tillsonburg, ON N4G 1Z4MLS®#: 192409

Price: $1,200.00DOM: 64 Status: ActiveSqft Total: 1,100Year Built: List Date: 01-May-2019Lot Size: Under .5 AcreLot Front: 0 Acres:Recreational: Waterfront: No NoBuilding Type: Business, Office(s), RetailSubdistrict: SW

Newly Renovated Downtown Location! This 1100 sqft unit is located at therear end of the building on the Lower Level, Ground Level Access. Includedwith rent is, Onsite Parking, 1 Universal Bath, Heat & Hydro. Possession ispossible by July 1st, 2019. Surrounded in a high traffic area, this busyretail section includes other established local business as OldridgeHeating & Cooling, Calm the Soul Yoga & Wellness Studio, Boston Pizza,Corey's Restaurant and more!! All measurements and realty taxes areapproximate.RE/MAX TRI-COUNTY REALTY INC. BROKERAGEBRYAN WILTSHIRE, Sales Representative (519) 318-0736

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

141 BROADWAY STREET, Tillsonburg, ON N4G 3P7MLS®#: 201902

Price: $1,000.00DOM: 22 Status: ActiveSqft Total: 1,100Year Built: List Date: 12-Jun-2019Lot Size: Under .5 AcreLot Front: 15 Acres:Recreational: Waterfront: No NoBuilding Type: Business, Office(s), RetailSubdistrict: SW

Access: Municipal road, Year Round

PRIME RETAIL/OFFICE SPACE IN DOWNTOWN TILLSONBURG CORE! This unitboasts 1100 sq.ft of main floor retail space with an additional 1100 sq.ftof storage in the basement. Tenant responsible for hydro and central airmaintenance but gets free water! Man-door access to the rear with onededicated parking spot. Main street parking is provided for customers.Unit has one two piece bathroom. Rent is triple net. this IS the mostinexpensive way to establish your business in the heart of Tillsonburg'sdowntown!CENTURY 21 HERITAGE HOUSE LTD, BROKERAGELANCE MACKENZIE, Sales Representative (226) 378-0345

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

1 LIBRARY LANE #4, Tillsonburg, ON N4G 4W3MLS®#: 199596

Price: $750.00DOM: 34 Status: ActiveSqft Total: 600Year Built: List Date: 31-May-2019Lot Size: Not ApplicableLot Front: 67 Acres:Recreational: No Waterfront: No NoBuilding Type: Office(s)Subdistrict: NW

Excellent location in one of Tillsonburgs' highest traffic locations onaccess route to mall, library, town hall, and Service Ontario office withlarge municipal parking lot. Tenant fit up incentive available to qualifiedlessee. Call Today!ROYAL LEPAGE R.E.WOOD REALTY, BROKERAGEDANE WILLSON, Broker (519) 777-2738

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

Page 82: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

7 BROCK STREET #A, Tillsonburg, ON N4G 1Z4MLS®#: 186903

Price: $695.00DOM: 85 Status: ActiveSqft Total: 700Year Built: List Date: 10-Apr-2019Lot Size: Under .5 AcreLot Front: 18 Acres:Recreational: No Waterfront: No NoBuilding Type: Office(s), RetailSubdistrict: SE

Right downtown and ready to go! This lovely storefront is located stepsfrom Broadway and has been tastefully updated from top to bottom. Thisunit offers nearly 700 square feet of prime downtown office or retail space.This space also includes an office, 2 pc bathroom and backroom used forstorage and kitchenette. Call today for more details!CENTURY 21 HERITAGE HOUSE LTD, BROKERAGELANCE MACKENZIE, Sales Representative (226) 378-0345

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

12 HARVEY STREET, Tillsonburg, ON N4G 3J6MLS®#: 185848

Price: $595.00DOM: 90 Status: ActiveSqft Total: 1,139Year Built: List Date: 05-Apr-2019Lot Size: Not ApplicableLot Front: 0 Acres:Recreational: Waterfront: No NoBuilding Type: MixedSubdistrict: SE

PRIME DOWNTOWN LOCATION! This 1139 sq. ft. retail/office space isconveniently located downtown, close to all amenities with high trafficcount and great visibility. The zoning is CC Commercial and suitable formany uses including service, commercial professional office, health care,and therapy to name a few. This space is tastefully updated and has amplestreet parking, has excellent signage opportunity on the east side of thebuilding and Property Taxes included in price. Call now for more details orto view this gorgeous space!CENTURY 21 HERITAGE HOUSE LTD, BROKERAGELAURA CURTIS, Sales Representative (519) 983-9300

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

239 BROADWAY STREET, Tillsonburg, ON N4G 3R2MLS®#: 200303

Price: $30.00DOM: 13 Status: ActiveSqft Total: 6,955Year Built: List Date: 21-Jun-2019Lot Size: Under .5 AcreLot Front: 67 Acres: 0.16Recreational: Waterfront: No NoBuilding Type: MixedSubdistrict: SW

Access: Year Round

This build-to-suit opportunity is located in a very high traffic area!Situated on the corner of Broadway St. and Bridge St. - have your new andimproved location designed to suit your exacting wants and needs. Site issurrounded by many national chains including, but not limited to: Metro,Pita Pit, Canadian Tire, Medpoint Healthcare, Walmart, Kelsey's Restaurant,LCBO. Site is zoned CC (Central Commercial) which provides for a numberof retail and commercial allowances. The landlord is willing to build to amaximum footprint of approx. 6955 sq. ft. on the site. - all subject tomunicipal conformity and town by-law allowances.ROYAL LEPAGE R.E.WOOD REALTY, BROKERAGEDAVID BENNETT, Sales Representative (519) 550-6642

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

161 BROADWAY STREET, Tillsonburg, ON N4G 3P9MLS®#: 188304

Price: $15.00DOM: 78 Status: ActiveSqft Total: 2,750Year Built: List Date: 17-Apr-2019Lot Size: Under .5 AcreLot Front: 45 Acres:Recreational: Waterfront: No NoBuilding Type: Office(s)Subdistrict: NW

Prime Business Core Corner Location- Broadway and Ridout Street West.Stripped Classicism Architecture Design. 2750 square foot modern officefacility, handicap accesibility, on site parking, zoned central commercial .Excellent array of business uses allowed. Presently used as a professionaloffice. List price is 15 dollars per square foot per annum on a triple netbasis. New rooftop HVAC to be installed. Lease rate $15.00 per square footper year net, net, net.ROYAL LEPAGE R.E.WOOD REALTY, BROKERAGEDANE WILLSON, Broker (519) 777-2738

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

230 LISGAR AVENUE, Tillsonburg, ON N4G 4L4MLS®#: 166928

Price: $13.00DOM: 210 Status: ActiveSqft Total: 3,837Year Built: 1975 List Date: 06-Dec-2018Lot Size: Not ApplicableLot Front: 0 Acres:Recreational: Waterfront: No NoBuilding Type: Mixed, RetailSubdistrict: NE

Totally renovated Lisgar Heights Plaza is filling up fast! Great retail orprofessional business office in premium location in the hub of Tillsonburg.Sports and main recreation centre is directly across the road and highpopulation density all along Lisgar Ave. Zoning is SC-E which allows retail,office, medical or personal services. Units available include Units 2B & 3(1,570 sq ft with kitchen facilities); Unit 6 (1,220 sq ft); and Unit 8 (1,047sq ft). Don't hesitate to make this your new professional business address!ROYAL LEPAGE R.E.WOOD REALTY, BROKERAGEDANE WILLSON, Broker (519) 777-2738

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

102 TILLSON AVENUE #102, Tillsonburg, ON N4G 3A4MLS®#: 165705

Price: $10.00DOM: 223 Status: ActiveSqft Total: 4,000Year Built: List Date: 23-Nov-2018Lot Size: 1-2.99 AcresLot Front: 0 Acres:Recreational: Waterfront: No NoBuilding Type: Business, Office(s), RetailSubdistrict: NE

AVAILABLE IN BUSY PLAZA ON TILLSON AVE IN TILLSONBURG. CURRENTLYRUNNING AS POPULAR RESTAURANT. 4000 SQ.FT. FOR A NEW RESTAURANTOR AN EXCELLENT OPPORTUNITY FOR VARIOUS TYPES OF RETAIL WITHPLENTY OF STOCK ROOM SPACE. ZONING ALLOWS FOR SEVERAL USES.AFFORDABLE RENT FOR YOUR NEXT VENTURE IN A PLAZA WITH HIGHTRAFFIC AND LOYAL CLIENTELE! ALL TAXES, COSTS & MEASUREMENTS AREAPPROXIMATE.RE/MAX TRI-COUNTY REALTY INC. BROKERAGEBRYAN WILTSHIRE, Sales Representative (519) 318-0736

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

Page 83: July 9, 2019 Board Room, Customer Service Centre 10 Lisgar ... · Committee: Economic Development Advisory Committee Page - 2 - of 2 Date: Tuesday, July 9, 2019 8.4. Physician Recruitment

37 TILLSON STREET #D, Tillsonburg, ON N4G 4N1MLS®#: 198612

Price: $6.95DOM: 38 Status: ActiveSqft Total: 3,697

Year Built: List Date: 27-May-2019

Lot Size: Under .5 AcreLot Front: 0 Acres:Recreational: Waterfront: No NoBuilding Type: IndustrialSubdistrict: SE

NEW PHASE INDUSTRIAL PLAZA IN FOREST HILL INDUSTRIAL PARK. Behlenconstructed industrial plaza. 3,697 sq.ft. available. Area to includereception, office and one washroom. 30'x80' Bays, 22' clear ceilings,12'x14' drive-in door, radiant tube heating, T-5 energy efficient lighting,R-42 & R-30 insulation and on site storage. Owner open to area division.Lease rate $6.95 per square foot per year net, net, net.ROYAL LEPAGE R.E.WOOD REALTY, BROKERAGEDANE WILLSON, Broker (519) 777-2738

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

102 TILLSON AVENUE #H, Tillsonburg, ON N4G 3A1MLS®#: 192612

Price: $1.00DOM: 63 Status: ActiveSqft Total: 1,960

Year Built: List Date: 02-May-2019

Lot Size: Not ApplicableLot Front: 0 Acres:Recreational: Waterfront: No NoBuilding Type: RetailSubdistrict: NE

An Established and Long Standing Convenience/Variety Business withExistence for Over 40 Years at Same Location. Great Central Location.Lotto, Tobacco, Ecigarette, Bong's, Seasonal Fireworks, Magazines, MovieRental/Sales, Saint Jimmy's Coffee and More. Current Lease Remaning for2+5. Approx. 1960 Sq/Ft As Per Lease. Bright and Spacious. All Chattelsand Fixtures Included. Owned Hot Water Tank and Sec Cameras. DscSystem. Current Store Hours 8 AM to 8 PM Mon-Sat and 9 AM to 6 PM Sun.HOMELIFE GALAXY REAL ESTATE LTD.NATHAN LOGANATHAN, . 416-556-9828

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

101 SPRUCE STREET, Tillsonburg, ON N4G 5C4MLS®#: 167212

Price: $3,500,000.00DOM: 206 Status: ConditionalSqft Total: 55,851Year Built: List Date: 10-Dec-2018Lot Size: 3-9.99 AcresLot Front: 371 Acres: 4.43Recreational: Waterfront: No NoBuilding Type: IndustrialSubdistrict: SE

Access: Paved Road

Opportunity to purchase 55,851 SF building on 4.43 acres of land.Approximately 22 minutes to Highway 401. Clear height 20'. 6 dock doorsand 4 grade doors, cafeteria, fenced and gated yard, security cameras, fiberruns to building, 40' x 40' column widths, outdoor patio, two floors ofoffice space with private offices and boardroom, 480 volt, 2670 kva, 3000amp main breaker set up to 2000 amps. Potential current output of thetransformer 2500 amps.COLLIERS INTERNATIONAL LONDON ONTARIO, BROKERAGECHRISTOPHER LEO KIRWIN, Broker of Record (519) 438-4300

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM

25 SPRUCE STREET #5&6, Tillsonburg, ON N4G 4W6MLS®#: 194104

Price: $4,175.00DOM: 57 Status: ConditionalSqft Total: 6,300Year Built: List Date: 08-May-2019Lot Size: Not ApplicableLot Front: 0 Acres:Recreational: Waterfront: No NoBuilding Type: BusinessSubdistrict: SE

Access: Private Road

Well established complex with super location. Easy access to Tillsonburg'samenities, Highway #19 and Highway #3. Approximately 6,300 sq. ft.warehouse area with 2-10x12 foot roll up doors. Ceiling height +/- 15feet to decking. Multipurpose unit with an MG zoning. Lessor prefersminimum 1 year lease or longer. Monthly rent plus utilities and tenantscontent and liability insurance. Tenant responsible for their own garbageand waste removal. Move your existing business or start up fresh with thiseconomical unit. All measurements are approximate.RE/MAX TRI-COUNTY REALTY INC. BROKERAGEMAURICE DELAERE, Broker (519) 688-8047

All data is subject to Errors, Omissions or Revisions and is not warranted. 07/04/201910:28:54 AM


Recommended