ECONOMIC DEVELOPMENT COMMITTEE

 

 

 

 

 

TO:

Mayor and Members of Council

 

 

 

 

FROM:

Stephen Chait, Economic Development Director

 

 

 

 

PREPARED BY:

Darren Ciastko, Economic Development Officer

 

 

 

 

DATE OF MEETING:

May 3, 2004

 

 

 

 

SUBJECT:

Markham’s High-Tech industry

 

 

 

 

 

RECOMMENDATION:

That the information report entitled “Markham’s High-Tech industry” be received.

 

 

PURPOSE:

To provide a basic analysis of Markham’s “High-Tech” industry based on the preliminary results of the 2003 York Region Business and Employment Survey.

 

 

BACKGROUND:

In February 1997 York Regional Council directed York Region staff to develop the York Region Employment Database System in partnership with Human Resources Development Canada, area municipalities and the business community.  The initial survey was conducted in the summer of 1998 by summer students whose objective was to conduct face-to-face interviews with every business in the Region’s employment areas. The 1998 survey functioned as the base year data set for future analyses. Subsequent surveys were conducted in 2001 and 2002, however they were limited in their scope due to a lack of continued area municipal participation (although Markham participated, not all other area municipalities provided support to the Region). As a result, not all of the Region’s employment areas were surveyed which meant that updated/new data for all of the Region’s businesses could not be provided.  Attachment 1 “Business Survey Coverage Area” summarises the percentage of businesses surveyed for each municipality for the 2001, 2002 and 2003 survey periods.

 

In the spring of 2003 York Regional staff initiated the new Municipal Employment Database Working Group made up of economic development professionals from each of the Region’s nine municipalities.  The role of the working group was to redesign the survey, encourage additional municipal funding to increase the scope of the survey which would effectively create a new base year data set and finally, to design an electronic application which would enable each municipality and its business community to interact more effectively.

 

DISCUSSION:

 

2003 Business and Employment Survey Results 

The 2003 survey was conducted from the beginning of May to the end of August by a group of summer students of which one was dedicated to survey Markham’s employment areas. Data collected in the survey will be made available for monitoring local economic trends, preparing the York Region Business Directory, analyzing and marketing local business sectors, creating business attraction and retention strategies, forecasting infrastructure and hard service requirements, and transit service planning. Attachment 2 “York Region Business and Employment Survey 2003” is a copy of the survey form which illustrates the type of data collected. To increase awareness and to help encourage business participation, a series of advertisements in local newspapers was produced. In addition, students were equipped with York Region identification and a letter of introduction from the municipal Mayor and Regional Chair.  Attachment 3 is a copy of the letter given to Markham businesses. 

 

In 2003 4,758 Markham businesses were surveyed and updated, representing a 68.7% response rate for all Markham businesses.  This is a major improvement compared to 2001 where 1,906 companies were updated (27.5 %) and in 2002 where 2,643 companies were updated (38.2%).  With the receipt of the 2003 raw data from York Region, Markham’s database now contains records for 6,925 companies.

 

“High-Tech” Analysis 

One of Economic Development’s key mandates for 2004 is to monitor the growth in the number of “High-Tech” firms during the course of the year.  In order to demonstrate growth and other trends in Markham’s high technology industry, a specific methodology is used to identify “High-Tech” firms.  Using accepted and credible definitions of high technology as a premise, specific industry classification codes, based on the North American Industry Classification System (NAICS) are used to identify companies. Attachment 4 presents 3 definitions of high technology that are used when choosing NAICS codes. 

 

Based on the preliminary results of the 2003 employment survey, there are estimated to be at least 866 “high-tech” companies located in the Town of Markham. The following table provides a summary analysis of Markham’s “High-Tech” industry.

 

Town of Markham – 2003 High Technology Industry Snapshot

(preliminary data subject to correction)

 

North American Industrial Classification  (NAIC)

Industry Jobs

# of Firms

Top Industry Employers

Audio and Video Equipment Manufacturing

320

5

·   Cabletel Communications

Communications Equipment Manufacturing

250

8

·   Kaval Wireless Technologies

Computer and Communications Equipment and Supplies Wholesaler-Distributors

4100

161

·   IBM Distribution Centre

·   Toshiba of Canada

·   Cannon Canada

Computer and Peripheral Equipment Manufacturing

2600

16

·   ATI Technologies

·   Surface Mount Technologies

·   Concord Idea

Computer Systems Design and Related Services

14100

258

·   IBM Canada

·   Platform Computing

·   Sun Microsystems

Data Processing Services

290

6

·   AJD Data Services

Electrical Equipment Manufacturing

100

12

·   Telepanel Systems

Electronic and Precision Equipment Repair and Maintenance

530

57

·   Binney & Smith Canada

·   Service Results Technology

Information Services

500

26

·   BCE Emergis

 

Management of Companies and Enterprises

1700

9

·   Hewlitt Packard Canada

·   Motorola Canada

·   Supercom Canada

Management, Scientific and Technical Consulting Services

1350

91

·   The FSA Group

·   Gartner Lee

Manufacturing and Reproducing Magnetic and Optical Media

350

2

·   Gisecke and Devrient

·   Duplium

Medical and Diagnostic Laboratories

350

20

·   Vita-Tech Laboritories

Medical Equipment and Supplies Manufacturing

100

10

·   Optik K & R Inc.

Navigational, Measuring, Medical and Control Instruments Manufacturing

300

11

·   Creation Technologies

Other Electrical Equipment and Component Manufacturing

525

14

·   Tyco Electonics

·   SDL Technologies

Pharmaceutical and Medicine Manufacturing

575

8

·   Novopharm Ltd.

Scientific Research and Development Services

700

20

·   Wyeth Canada

 

Semiconductor and Other Electronic Component Manufacturing

825

16

·   Adeptron Technologies

·   ITL Circuits

Software Publishers

220

5

·   Data Mirror

Specialized Design Services – Computer Graphic Design

550

59

·   Que-Net Media

Telecommunications

723

20

·   Cygnal Technologies

NAIC Code and related data not available

N/A

32

·   NEC – Mitsubishi Electronics

·   Ironside Technologies

Total # of Jobs and Firms (current estimates)

31,000 jobs

866 Firms

 

 

Currently, the top 10 computer, electronics, and info-tech sector employers in Markham include:

 

1.      IBM (hq, warehouse, and lab)                  7,700 employees

2.      ATI Technologies                                     1,700 employees

3.      Hewlett Packard                                      1,100 employees

4.      Surface Mount Technologies                       390 employees

5.      Motorola                                                    380 employees

6.      Tyco Electronics                                         350 employees

7.      Philips Electronics                                       350 employees

8.      Supercom Canada                                      335 employees

9.      Toshiba                                                       320 employees

10.  DST Output Canada (Xebec)                      300 employees

 

 

Markham’s claim to being “Canada’s High-Tech Capital” is based on having 850 High-Tech firms and the largest per capita concentration of high-tech firms in Canada.  Markham’s High-Tech industry employs in excess of 31,000 people and continues to attract new technology investment.  Over the past year new firms have expanded and/or relocated to Markham including: Creation Technolgies, Cytochroma and Wyeth Canada. In 2004 Markham continues to experience growth with Novopharm ($20 million expansion) and CGI (2,000 new jobs) being the latest examples.

 

FINANCIAL CONSIDERATIONS:

none

 

ENVIRONMENTAL CONSIDERATIONS:

none

 

ACCESSIBILITY CONSIDERATIONS:

none

 

ENGAGE 21ST CONSIDERATIONS:

The activities of the 2003 Business and Employment survey are in alignment with the Town’s strategic plan specifically in regard to the Town’s corporate goal of Economic Development – to establish, promote and support Markham as the best location for diverse high-tech and related business.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

none

 

ATTACHMENTS:

1.      Business Survey Coverage Area

2.      York Region Business and Employment Survey 2003

3.      Letter of Introduction – Ali MacLean

  1. Definitions of High-Tech companies

 

 

 

 

 

 

 

 

Stephen Chait, Director of Economic Development

 

John Livey, Chief Administrative

Officer