The Economy background Saskatoon’s booming economy will bring significant changes to the city. As a hub for natural resource and agricultural industries Saskatoon houses the head offices of major corporations and many businesses involved in manufacturing and distribution. The University of Saskatchewan has spun off a number of businesses in the agriculture and bio-tech industries. Additionally, there are a range of retail and service industries and thousands of home-based businesses throughout the city. Saskatoon has the opportunity to further diversify the economy by focusing on entrepreneurship and creative industries. To ensured continued growth, it will be critical to maintain a skilled workforce by ensuring the city’s young people have educational opportunities and attracting immigrants. With so many assets, Saskatoon could sustain strong economic growth for many years, if it maintains a skilled workforce and remains competitive.
Transcript
The Economy
background
Saskatoon’s booming economy will bring significant changes to the city. As a hub for natural resource and agricultural industries Saskatoon houses the head offices of major corporations and many businesses involved in manufacturing and distribution. The University of Saskatchewan has spun off a number of businesses in the agriculture and bio-tech industries. Additionally, there are a range of retail and service industries and thousands of home-based businesses throughout the city. Saskatoon has the opportunity to further diversify the economy by focusing on entrepreneurship and creative industries. To ensured continued growth, it will be critical to maintain a skilled workforce by ensuring the city’s young people have educational opportunities and attracting immigrants.
With so many assets, Saskatoon could sustain strong economic growth for many years, if it maintains a skilled workforce and remains competitive.
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2001
2002
2003
2004
2005
2006
2007
2008
2009population
6,000
5,000
4,000
3,000
2,000
1,000
0
Number of Licensed Businesses and Institutional Agencies(source: City of Saskatoon, Business License Program, 2006-2009)
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Saskatoon Real GDP Growth (%change) 2001-2010(source: Strategic Intelligence Report, 2009-2010 / data relates to the Census Metropolitan Area of Saskatoon)
agric
ulat
ure,
fore
stry
and
fis
hing
utilit
ies
min
ing,
oil,
and
gas
ex
tract
ion
cons
truct
ion
busi
ness
, bui
ldin
g a
nd s
uppo
rt s
ervi
cies
info
rmat
ion,
cul
ture
and
recr
eatio
n
trans
port
atio
n an
d w
areh
ousi
ng
who
lesa
le tr
ade
finan
ce, i
nsur
ance
, rea
l es
tate
and
leas
ing
othe
r ser
vice
s sc
ient
ific,
tech
nica
l and
pr
ofes
sion
al s
eric
es
publ
ic a
dmin
istra
tion
acco
mod
atio
n an
d fo
od s
ervi
ces
man
ufac
turin
g
heal
th c
are
and
soci
al
assi
stan
ce
educ
atio
nal s
ervi
ces
reta
il tra
denumber ofemployees
15,000
12,500
10,000
7,500
5,000
2,500
0
Total Employment by Industry Sector, 2006(source: City of Saskatoon, Business License Program, 2006)
commercial business home based businessinstitutional agencies
2001
2002
2003
2004
2005
2006
2007
2008
2009population
6,000
5,000
4,000
3,000
2,000
1,000
0
Number of Licensed Businesses and Institutional Agencies(source: City of Saskatoon, Business License Program, 2006-2009)
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Saskatoon Real GDP Growth (%change) 2001-2010(source: Strategic Intelligence Report, 2009-2010 / data relates to the Census Metropolitan Area of Saskatoon)
agric
ulat
ure,
fore
stry
and
fis
hing
utilit
ies
min
ing,
oil,
and
gas
ex
tract
ion
cons
truct
ion
busi
ness
, bui
ldin
g a
nd s
uppo
rt s
ervi
cies
info
rmat
ion,
cul
ture
and
recr
eatio
n
trans
port
atio
n an
d w
areh
ousi
ng
who
lesa
le tr
ade
finan
ce, i
nsur
ance
, rea
l es
tate
and
leas
ing
othe
r ser
vice
s sc
ient
ific,
tech
nica
l and
pr
ofes
sion
al s
eric
es
publ
ic a
dmin
istra
tion
acco
mod
atio
n an
d fo
od s
ervi
ces
man
ufac
turin
g
heal
th c
are
and
soci
al
assi
stan
ce
educ
atio
nal s
ervi
ces
reta
il tra
denumber ofemployees
15,000
12,500
10,000
7,500
5,000
2,500
0
Total Employment by Industry Sector, 2006(source: City of Saskatoon, Business License Program, 2006)
commercial business home based businessinstitutional agencies
Ottawa
Toronto
Halifax
MontréalWinnipeg
6.2%
9.4%6.5%
9.1%
5.5%
Unemployment Rates in Major Canadian Cities (year ending 2009)(source: Statistics Canada Labour Force Characteristics)
Vancouver Calgary
EdmontonSaskatoon
Regina
7.8%7.2%
6.9%
4.6%4.8%
Ottawa
Toronto
Halifax
MontréalWinnipeg
1.4%
0.3%
1.9%
0.2%
9.9%
Aboriginal Population in Major Canadian Cities (total percentage of city population)(source: Statistics Canada Labour Force Characteristics)
Vancouver Calgary
EdmontonSaskatoon
Regina
0.6%
2.5%
4.4%
9.8%
9.2%
Ottawa
Toronto
Halifax
MontréalWinnipeg
19.3
1.4
9.8
1.6
11.8
Hectares of Green Space per 1000 people in Major Canadian Cities (source: Green Space Acquisition and Stewardship in Canada’s Urban Municipalities)
% of labour force walking, cycling or taking public transit to work (2001)(source: GreenApple Canada Smart Transporation Ranking Report)
Vancouver Calgary
EdmontonSaskatoon
Regina
18.0% 18.9%
13.5%
11.4%
10.3%
The strongest economy in CanadaIn 2008, the city’s gross domestic product (GDP) grew by 5.4 percent, making it the fastest growing city in the country, and the employment rate is third highest among Canadian metro regions. Over 1,000 new commercial or home-based businesses were established in Saskatoon in 2008, and over $900 million were invested in residential and non-residential buildings.
On the heels of the global recession, the city’s economy dipped in 2009 but has rebounded in 2010. Its rate of job creation in January was the second highest among the 27 largest metro areas in the country. The Conference Board of Canada predicts the Saskatoon economy will grow by 2.8% this year. Another promising sign is the increase in housing starts in the first quarter of 2010—in April, 2,354 homes were under construction. Many economists are predicting the province’s and Saskatoon’s boom times will continue for the foreseeable future.
“ The Saskatchewan economy appears to have considerable staying power. The forces of high commodity prices, rising profits and booming investment will continue to drive up household incomes and government revenues, which in turn will be recycled back into the economy and housing markets.” The Saskatchewan Economy of 2008: The Resurgence of the Resourceful, TD Economics Special Report, June 4, 2008.
courtesy of Indiana University, Melvin&Bren Simon Cancer Center
A hub for Canada’s resource economy and innovationAgriculture and natural resources are mainstays of the provincial economy. Saskatchewan has an abundance of wheat, canola, oil, natural gas, potash, uranium, base metals, gold, diamonds, coal and wood, all commodities in high demand around the world. For most of the large companies involved in agriculture and mining in the province, Saskatoon is a head office base and centre for manufacturing and services.
As well as the resource sectors are doing, there is another reason why Saskatoon’s economy is outperforming nearly every other Canadian city. The University of Saskatchewan, whose ranking rose sharply between 2007 and 2009 (see graph below), has pushed to the forefront of institutions turning research into economic opportunities.
A number of companies have been spun off from university research, notably in the areas of agriculture bio-technology, nutraceuticals and food processing. And many of them have a home in Innovation Place, considered one of the most successful university-based research and technology parks in the world. The Canada Light Source Synchrotron developed in the 1990s, which supports a wide range of research activities, has cemented the city’s status as an innovation hub.
Saskatoon, in fact, has one of the most diverse economies in the country. As the graph below illustrates, nearly all sectors of the economy enjoy adequate levels of employment, and nearly all of these experienced strong growth in recent years.
2001
2002
2003
2004
2005
2006
2007
2008
2009population
6,000
5,000
4,000
3,000
2,000
1,000
0
Number of Licensed Businesses and Institutional Agencies(source: City of Saskatoon, Business License Program, 2006-2009)
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Saskatoon Real GDP Growth (%change) 2001-2010(source: Strategic Intelligence Report, 2009-2010 / data relates to the Census Metropolitan Area of Saskatoon)
agric
ulat
ure,
fore
stry
and
fis
hing
utilit
ies
min
ing,
oil,
and
gas
ex
tract
ion
cons
truct
ion
busi
ness
, bui
ldin
g a
nd s
uppo
rt s
ervi
cies
info
rmat
ion,
cul
ture
and
recr
eatio
n
trans
port
atio
n an
d w
areh
ousi
ng
who
lesa
le tr
ade
finan
ce, i
nsur
ance
, rea
l es
tate
and
leas
ing
othe
r ser
vice
s sc
ient
ific,
tech
nica
l and
pr
ofes
sion
al s
eric
es
publ
ic a
dmin
istra
tion
acco
mod
atio
n an
d fo
od s
ervi
ces
man
ufac
turin
g
heal
th c
are
and
soci
al
assi
stan
ce
educ
atio
nal s
ervi
ces
reta
il tra
denumber ofemployees
15,000
12,500
10,000
7,500
5,000
2,500
0
Total Employment by Industry Sector, 2006(source: City of Saskatoon, Business License Program, 2006)
commercial business home based businessinstitutional agencies
hard
infra
stru
ctur
e
mun
icip
al s
ervi
ces
hom
eow
ner c
osts
exte
rnal
cos
ts
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
Annual costs per household by development scenario (source: Costing Mechanism to Facilitate Sustainable Planning, CMHC 2005)
annual passengerrevenue
annual costs
category 2007 2009
best
ove
rall
high
est q
ualit
y
mos
t inn
ovat
ive
lead
ers
of
best overall
highest quality
most innovative
leaders of tomorrow
What does a typical neighbourhood cost to build and operate?
Capital Costs of building a neighbourhood(source: Costing Mechanism to Facilitate Sustainable Commuity Planning, CMHC 2005)
Annual Costs of operating & maintaining a neighbourhood (source: Costing Mechanism to Facilitate Sustainable Commuity Planning, CMHC 2005)
roads (arterial and local)other (police, fire, transit, recreational facilities)schoolsstorm sewerssanitary sewersstorm water treatmentwater distributionwastewater and water treatment
roads (local and arterial)other (water distribution, sanitary sewers, school transportation, recreational facilities)police servicestransit servicesfire serviceswastewater and water treatmentwaste management services
*excludes schools
low density development - outer suburbshigh density development - downtown core
Summary of University of Saskatchewan Rankings out of 48 participating universities(source: Maclean’s 2009 University Rankings)
#15 #09
#18 #13
#13 #08
#18 #09
Fig. 31: Street patterns in di�erent eras
Gridiron (prewar)
Fragmented grid, cul-de-sacs (1950s–70s)
Curvilinear streets and cul-de-sacs (1970s–90s)
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The creative economyThe cultural and creative sector of the economy, relatively small but growing in Saskatoon, will play an increasingly important role in attracting and retaining young people. The sector covers a broad spectrum of industries, from traditional arts and design professions (e.g., architecture, landscape architecture, graphic design) to digital media, publishing and broadcasting. In the digital age, the potential for this sector to grow is enormous. The presence of the University of Saskatchewan, SIAST, Saskatchewan Indian Institute of Technologies and Gabriel Dumont Institute, together with city’s strong arts and culture scene, gives Saskatoon a solid foundation on which to expand its creative economy.
1988
1990
1992
1994
1996
1998
2000
2002
2004
22,000,000
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Transit Trends in Saskatoon(source: Saskatoon Transit Strategy Plan Study 2005)
pers
onal
veh
icle
shar
ed v
ehic
les
wal
k
publ
ic tr
ansi
t
cycl
e
othe
r
78.7% 7.5% 6.2% 3.7% 2.4% 1.6%
How People Move Around Saskatoon(souce: Statistics Canada Census 2006)
cana
da
sask
atoo
n
regi
na
calg
ary
edm
onto
n
win
nipe
g
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
How Saskatonians move around compared to other cities(source: Statistics Canada Census 2006)
At 2.4% saskatoon has the highest percentage of cyclists
At 6.2% Saskatoon has one of the highestpercentage of pedestrians
At 78.7% Saskatoon has the second highest percentage of people driving a motor vehicle
At 3.7% Sakatoon has the lowest percentage of public transit users
At 7.5% Saskatoon has the lowestpercentage of people traveling as passengers
annual passenger revenueannual operating costs
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0
Number of Cultural Facilities by Primary Type(source: University of Saskatchewan Cultural Facilities Inventory, 2010)
crea
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sch
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grap
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desi
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arch
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60%
50%
40%
30%
20%
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0%
Change in Number of Creative Business Establishments, 2006-2009(source: City of Saskatoon, Business License Program, 2009)
20062009
A competitive cityThe migration of people from other provinces and overseas to Saskatchewan is fueled by new job opportunities but also a very attractive business climate and quality of life. The Fraser Institute considers Saskatchewan to have the third most favourable business environment among the provinces, and the overall costs of living and doing business are among the lowest in Canada. KPMG’s 2010 study of the cost competitiveness of 112 selected cities around the world ranks Saskatoon the third most competitive in Canada, ahead of Vancouver, Edmonton, Toronto and Montreal and just behind Halifax and Winnipeg. Among comparable American cities in the West and Midwest, it was the most competitive.
courtesy flickr daryl_mitchell
5BACKGROUND INFORMATION SASKATOON SPEAKS
Ensuring Saskatoon’s youth, many of whom are Aboriginal, have access to a full range of educational and employment opportunities, as well as attracting immigrants, will be key to fostering a creative, competitive and growing economy.
Sustaining a strong economyWhile the outlook for Saskatoon’s economy is rosy, economists at TD Bank have identified opportunities to make the provincial economy even stronger and sustain growth over the long term. These include:
• Addressing the infrastructure deficit and ensuring municipalities have adequate tools and flexibility to address surging growth challenges;
• Continuing to build on cost competitive advantage (i.e., try to keep taxes low);
• Using resource strength to build a more diverse economy (e.g., turn the province into a clean energy powerhouse);
• Alleviating the problem of poverty;
• Addressing skilled labour shortages.
courtesy flickr daryl_mitchell
On this last point, there is increasing concern that, given Saskatoon’s aging population and competition with other cities, it will be a challenge to sustain the workforce needed to support economic growth. The key to avoiding a shortage of workers is to bring more members of the under-represented portions of our population into the workforce, such as Aboriginal people, visible minorities, immigrants already in Canada, women, disengaged youth, people with disabilities, as well as continued immigration from other countries. Increasing the education rates for Aboriginal people will play a key role in maintaining an adequate pool of skilled workers (and would help to alleviate the city’s problem of poverty). To this end, the University of Saskatchewan has developed assistance programs aimed at increasing its Aboriginal student population. In May this year, the Saskatoon Health Region, the city’s largest employer, launched a new representative workforce strategic action plan, Awaken the Power of Change, to increase the number of First Nations and Métis employees over the next four years.
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There are a number of ways to share your vision and help shape Saskatoon’s future!
For more information please visit saskatoonspeaks.com.
Efforts were taken to ensure the accuracy of information. Updates to any of the content will be posted to the website.We encourage everyone to return the information book for re-use at all Saskatoon Speaks events and activities.
