Document Sample
CALGARY Powered By Docstoc
					                                                        hot spot
                                                        hot spot
Media Kit Economy, page 1 Mon, Apr 12, 2004 4:11 PM

                                                                            GDP Growth

                                                                       Population Growth

                                                                             Retail Sales


           Canada’s Economic Hot Spot!
            Calgary is expected to have one of the
            healthiest economies in 2004 among
            all Canadian provinces.



                                                                                            Calgary Herald WebProof PDF


            A CANWEST COMPANY - Calgary Herald Media Kit 2004 - 2005
Media Kit Economy, page 2 Mon, Apr 12, 2004 4:11 PM

                                                               CALGARY Canada’s economic hot spot!

  Calgary is expected to have one of the healthiest economies in 2004 among all Canadian provinces.
  Strong energy markets combined with the lowest provincial tax rate in Canada and no provincial sales tax
  are the driving forces behind Calgary’s strong economic performance. Migration to Calgary will continue to
  increase in 2004 and, as a result, housing markets and retail spending will remain strong for the coming year.

   Calgary’s economy is red hot!                                        Economic hotspot?                                               In 2004, the labour market will continue to be
   “It’s a red hot economy and it looks like it’s going                 “It’ll be that every year from here on in. I’d love             strong with the business sector leading the growth.
   to continue that way.”                                               to see Calgary get this honour every year.”                     Job opportunities will be numerous with an
   Calgary Mayor Dave Bronconnier                                       Bruce Graham, President & CEO,                                  anticipated growth of 2.2% or 13,200 new jobs
                                                                        Calgary Economic Development.                                   (Metropolitan        Outlook).          Job       prospects     in
   Calgary is expected to have the highest growth                                                                                       the construction sector will remain firm from a solid
                                                                        Strong population growth, positive employment                   housing demand. Over the next four years, the
   rate of any metropolitan area in Canada in 2004.
                                                                        forecasts and rising incomes continue to increase               energy sector and positive economic outlook will
   Calgary’s GDP is forecast to grow by 4.4% this
                                                                        the demand for goods and services. In 2004,                     keep employment prospects robust, which in turn
   year compared to 3.0% for Canada.
                                                                        the high oil and natural gas prices will continue to            will keep Calgary at the forefront for young job
                                                                        stimulate the Alberta and Calgary economies.
   GDP Growth                                                                                                                           seekers as a destination of choice.
                                                                        Calgary is not only the growth centre of Alberta but
   City                         2004 GDP Forcast
                                                                        for all of Canada.                                              City                              Employment Growth
   Calgary                                              4.4%
   Edmonton                                          4.1%                                                                               Calgary                                     2.2%
   Toronto                             3.5%                               P O P U L AT I O N G R O W T H                                Toronto                                     1.8%
   Vancouver                        3.4%                                                                                                Ottawa                                      1.7%
   Montreal                         3.4%                                “Calgary is a magnet for young, mobile, highly                  Vancouver                                   1.7%
   Ottawa                3.0%                                           skilled workers across Canada. It’s got the buzz.”              Edmonton                                    1.6%
                                                                        Derek Burleton, Senior Economist,                               Montreal                                    1.6%
   Metropolitan Outlook, Conference Board of Canada, Winter 2004
                                                                        TD Bank Financial Group.
                                                                                                                                        Metropolitan Outlook, Conference Board of Canada, Winter 2004

   This    positive     outlook      and     past    economic
                                                                        The strong business community in Calgary,
   performance have made Calgary a choice                                                                                               Dominant Industries by Number of Employees:
                                                                        affordable housing and the Alberta lifestyle has
   destination for businesses and for young people                                                                                      Industry                            Employees (000s)
                                                                        contributed to the large influx of people from other
   seeking opportunity. Impacts overflow into other                                                                                     Mining, Oil, Gas Extraction                  33.1
                                                                        provinces and countries to Calgary. This year,
   arenas such as retail sales. In 2004, Calgary’s                                                                                      Architectural, Engineering
                                                                        the expected population growth will be 1.7%                     & Design Services                            21.5
   retail sales are forecast to be $14,070 per capita.
                                                                        compared to the national average of 1.0%. The                   Information & Cultural Ind.                  18.6
   This is the highest in the country and $3,600 or
                                                                        types of people attracted to Calgary are young,                 Finance                                      15.5
   34% above the national average.
                                                                        educated, and upwardly mobile. This can be attrib-              Arts, Entertainment & Rec.                   11.9
                                                                        uted to the affordability of the city as well as the            Transportation                               11.1
   The provincial tax structure also makes Calgary
                                                                        large     number        of    head       offices     located    Local, Municipal & Regional
   attractive as a place for doing business. With the
                                                                        in Calgary.                                                     Public Admin.                                10.5
   lowest tax rate in the country, reasonable housing
                                                                                                                                        Computer Sys. Design Serv.                   10.4
   costs and high salaries, Calgary will have the high-
                                                                        Calgary Economic Region Population Forecast                     Real Estate                                  10.2
   est personal income per capita in Canada.
                                                                        2003                                  1,066,000                 Food, Beverage & Tobacco                      9.0
   Calgary’s      personal       income      per     capita        is
                                                                        2004                                  1,085,200                 Truck Transportation                          8.6
   estimated to be $39,150 compared to Toronto
                                                                        2005                                  1,103,800                 Statistics Canada 2002,
   at $33,800 and the national average of $30,560                                                                                       North American Industrial Classification System
                                                                        2006                                  1,120,700
   per capita. In addition, the unemployment rate for
                                                                        2007                                  1,137,100
   Calgary will remain around 5.5% for the next five
                                                                        Metropolitan Outlook, Conference Board of Canada, Winter 2004
   years compared to approximately 7.5% for
                                                                                                                                                                                                             Calgary Herald WebProof PDF

   Canada. The positive employment outlook will fuel
   income gains and spending.
   Metropolitan Outlook, Conference Board of Canada, Winter 2004
Media Kit Economy, page 3 Mon, Apr 12, 2004 4:11 PM

                                                              CALGARY Canada’s economic hot spot!

                 R E TA I L S A L E S                                                 HOUSING                               Construction:

   Consumer spending and consumer confidence                       The Calgary housing market is one of the healthi-        There were 13,642 housing starts in 2003 –
   in Calgary will remain strong and continue to                   est in Canada. The average price of a home in            the highest in recent history.             In 2004, it is
   increase in 2004 due to the strong employment,                  Calgary is 30% to 50% less than a home in                estimated housing starts will total 12,500, still a
   population growth and high levels of income.                    Toronto or Vancouver (Alberta Econonomic                 strong number when compared to feverish levels
   Among Canada’s twelve largest cities, Calgary is                Development). In 2004, the average MLS price is          of the previous two years.
   second behind Ottawa for having the highest                     projected to be $221,000. Single family homes are
   percentage of citizens earning $50,000 or more.                 expected to average $239,400 and condos                  Year      Total Housing Starts MLS Sales
                                                                   $163,800 per unit.                                       2000              11,093               19,828
   Retail sales will reap the benefits with a forecast                                                                      2001              11,349               22,512
   growth of 6% in 2004 compared to Canada’s                       Affordability:                                           2002              14,339               25,054
   national average of 4.7% (Metropolitan Outlook).                                                                         2003              13,642               24,359
   Shopping districts will grow in peripheral commu-               Because of its affordability, home ownership             2004 (Forecast) 12,450                 22,750
   nities and regional shopping centres will continue              in Calgary is accessible to the majority of the          Canada Mortgage and Housing Corporation,
                                                                                                                            Calgary Real Estate Board
   to     renovate     in     an     attempt     to   maintain     population illustrated by the high level of
   market share.                                                   owner-occupied residences - 68%. Homes are
                                                                                                                            Record low borrowing rates and strong population
                                                                   affordable in Calgary because of higher incomes
                                                                                                                            growth resulted in a strong housing market in the
   In 2004, total spending will be $14.6 billion among             and fewer taxes.          The affordability index is a
                                                                                                                            past two years. In 2004, the market is expected to
   the over 6,500 Calgary retailers making the                     measure of the proportion of pre-tax household
                                                                                                                            fall more into balance as the pricing growth is
   projected per capita spend of $14,070. This is                  income taken up by ownership costs. The lower
                                                                                                                            expected to slow to a rate of just above inflation.
   attributable to the high level of income among                  the index number, the more home ownership is
   Calgarians. The national average is $30,560 per                 affordable. At the end of 2003, the affordability
   person while Calgary is $39,150.                                index for Calgary was 29.3% - the lowest of the
   Metropolitan Outlook, Conference Board of Canada, Winter 2004   five biggest cities in Canada.
                                                                                                                                   T R A N S P O R TAT I O N ,
                                                                                                                                      WA R E H O U S I N G
   Retail Spend Per Capita                                         City                              Affordability Index
                                                                                                                                       & LOGISTICS
   City                              2004 Forcast                  Calgary                                   29.3%
                                                                                                                            The transportation, warehousing, and logistics
   Calgary                                            14,070       Montreal                                  30.1%
                                                                                                                            sector is Calgary’s second largest sector
   Edmonton                                     13,250             Ottawa                                    32.2%
                                                                                                                            employing 47,800 people.              Strong segments
   Ottawa-Gatineau              10,710                             Toronto                                   38.4%
                                                                                                                            include wholesale trade, air, rail and truck
   Canada                      10,400                              Vancouver                                 46.2%
                                                                                                                            transportation. This segment’s growth rate is 5%
   Winnipeg                   10,350                               Housing Affordability Index, RBC Financial Group
                                                                                                                            over the past ten years, well above the North
   Vancouver                 9,970
                                                                                                                            American average growth rate of 1.8%.
   Montreal                 9,690
   Toronto                  9,580
   Metropolitan Outlook, Conference Board of Canada, Winter 2004

                                                                                                                                                                                        Calgary Herald WebProof PDF
Media Kit Economy, page 4 Mon, Apr 12, 2004 4:11 PM

                                                         CALGARY Canada’s economic hot spot!

                       ENERGY                                                  TOURISM                                 Information technology employs 23,000 people in
                                                                                                                       Calgary, mostly in software and system design.

   “For the year now past, six homegrown companies            Tourism is Alberta’s fourth largest industry,            This sector has outgrown the ten year North

   reported profits north of $1 billion for the               representing $850 million in revenue for the city.       American average and will continue to do so at a

   first time.”                                               The city of Calgary is clean and safe and offers the     rate of 12% per year in the next five years.

   Scott Haggett, Calgary Herald, March 13, 2004              advantages of a big city without big city problems.
                                                              Shopping, theatre, galleries, symphony, ballet,          Wireless and telecommunications employ over

   Six of Calgary’s local oil and gas firms have              festivals, concerts and great dining add to the          10,000 people in the Calgary region. Calgary’s

   posted      unprecedented         profits    in    2003.   beautiful mountain setting of the city. Walk or bike     growth in the advanced technology sector is

   The industry has long been thought of as cyclical          along the paths that line the rivers or float over the   significantly higher than in other major markets.

   but prices have been steady for quite some time            city in a hot air balloon. For the more adventurous,
   indicating that the cyclical pattern may be a thing        world-class golfing, skiing, and hiking in the                     AG R I B U S I N E S S
   of the past. Local companies have moved beyond             breathtaking Rocky Mountains are only a short
   just Canadian reserves and are now players                 drive away. These attractions bring numerous             The Conference Board of Canada expects overall

   around the world.                                          conventions to Calgary each year.        Convention      agriculture output to be strong in 2004 posting a

                                                              visitors are eager to shop in Calgary as Alberta is      13.8% increase. Agricultural woes are lessening
   Major Energy Company Profits                                                                                        despite the series of droughts faced in the 1990’s
                                                              the only province with no provincial sales tax.
   EnCana Corp                       $2.36 billion                                                                     and discovery of mad cow disease in May 2003
   Petro-Canada                      $1.67 billion                                                                     (Metropolitan Outlook). The Canadian beef indus-
   Canadian Natural
   Resources Ltd.                    $1.39 billion
                                                                          A DVA N C E D                                try has lost more than $1 billion in revenue in the

   Husky Energy Ltd.                 $1.32 billion
                                                                         TECHNOLOGY                                    latter six months of 2003. With 70% of Canada’s
                                                                                                                       cattle industry located in Alberta, the provincial
   Suncor Energy                     $1.08 billion
                                                              Calgarians and Albertans are very technologically        meat processing plants and related trucking indus-
   Talisman Energy Inc.              $1.01 billion
                                                              savvy. Calgary has more miles of optical fiber than      try are eagerly anticipating the recovery in 2004.
   Scott Haggett, Calgary Herald, March 13, 2004
                                                              any other city in Canada. Not only is usage high
                                                              in Calgary but Alberta will be one of the most wired
   Canada is a global energy power, the planet’s third
                                                              regions in the world with the completion of the
   largest producer of natural gas and the 14th
                                                              "SuperNet". In the next three years, SuperNet will
   largest producer of crude oil. Western Canada is
                                                              allow every library, school, hospital and provincial
   a major player in the oil and gas industry. Alberta
                                                              government office access to high-speed Internet.
   produces 70% of Canada’s crude oil and 80% of
                                                                                                                                               For further information call
   its natural gas. Calgary is the centre of Canada’s
                                                                                                                                                          Poul Overgaard
   energy sector with 89% of Canadian oil and gas
                                                                                                                                       Marketing & Information Manager
   producers and 64% of coal producers with head
                                                                                                                                                          (403) 235-7195
   offices in Calgary. Although the Calgary economy
   has evolved, oil and gas are still the mainstay and
   have acted as the driver of diversity into other
   industries such as wireless/telecommunications,
   information technology, and geomatics.

   High commodity prices and intense drilling activity
   in 2003 are expected to continue through 2004
   and into 2005. Tight inventories will maintain the
   high oil prices and supplies will remain at about
   6% below the average levels of the
   past five years.
                                                                                                                                                                              Calgary Herald WebProof PDF

Shared By: