Hamilton Economy to Benefit from Lower Canadian Dollar and US Recovery, Manufacturing Sector Grows

Hamilton Chamber of Commerce and Credit Unions of Ontario release 2015 economic outlook for Hamilton Census Metropolitan Area

Hamilton, ON, February 11th , 2015: Hamilton is set to outpace the provincial average in terms of employment gains and expand at a faster pace than communities in its broader region, according to a new economic outlook from the Hamilton Chamber of Commerce and the Credit Unions of Ontario. The city is set for modest economic growth as a pickup in U.S. demand and a favourable exchange rate drive growth in key sectors like manufacturing.

The city is expected to add roughly 13,000 jobs over the next two years, with employment increasing by 1.6 percent in 2015 and 1.8 percent in 2016. The region’s unemployment rate continues its steady decline and is expected to remain below the provincial average, hitting 5.8 percent by 2016. This represents a significant turnaround from 2009, when the unemployment rate in the region was at 8.4 percent.

“It is encouraging to see a continuous upward trend for the economic indicators utilized in these outlook reports. The ever increasing diversity of our economy and the strength of the real estate market has allowed this economic stabilization despite some global uncertainty coming out of the recession and challenges facing our manufacturing sector.” says Keanin Loomis, President & CEO, Hamilton Chamber of Commerce

The influence of manufacturing on the city’s economy has dropped recently, with employment in the sector dipping to a 13 percent of total jobs, down significantly from 20 percent in the early 2000s.

The outlook notes that while it is unlikely that manufacturing jobs will ever return to those lofty levels, the sector will be a growth driver over the next few years and showed stability last year. The improvement should persist as the U.S. recovery and Canadian dollar depreciation drive growth in Ontario manufacturing. National Steel Car’s announcement of 300 new jobs in Hamilton appears to be an indication of a rebounding manufacturing sector.

Although economic growth will be driven by manufacturing, Hamilton’s service sectors are also thriving. Investments in healthcare, such as the recently completed Margaret and Charles Juravinski Centre for Integrated Healthcare is expected to generate 400 new jobs over the next few years.

“The Chamber is committed to providing a leadership role in helping develop the Life Sciences, Creative Industries and Small Business sectors as they lead Hamilton’s ongoing economic recovery. In particular our work in the Life Sciences cluster report last year identified the tremendous assets and opportunities that exist within Hamilton”, adds Loomis.

Home sales are forecast to climb to about 15,000 units by 2016, with the average price rising about four percent per year to $438,000, representing a $100,000 increase in the average price of a home.

Key Facts and Highlights:

• Hamilton’s population will continue to grow steadily over the coming years, increasing by 0.9 percent in 2015 and 1.1 percent in 2016. Hamilton CMA’s population is expected to grow to 781,000 by 2016.

Housing prices in Hamilton continue to rise steadily, as they grew by 5.9 percent in 2014 and will continue to grow at a relatively rapid rate through to 2016, at which point the average price of a house in Hamilton will be $438,000 (compared to a projected $625,000 in the Toronto CMA).

• Housing demand has been robust in the Hamilton CMA lifting sales by six percent. Home sales are forecast to climb to about 15,000 units by 2016.

• Hamilton’s service sectors are showing signs of strong growth. Investments in healthcare, such as the recently completed Margaret and Charles Juravinski Centre for Integrated Healthcare is expected to generate 400 new jobs over the next few years. Other significant projects built in recent years have included Tim Horton’s Field, McMaster University Downtown Medical Centre and LR Wilson Hall.

• The city is expected to add roughly 13,000 jobs over the next two years, with employment increasing by 1.6 percent in 2015 and 1.8 percent in 2016.

Download the full economic outlook at: http://goo.gl/NCl8wz

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For more information, contact:

Huzaifa Saeed

Policy & Research Analyst, Hamilton Chamber of Commerce

1. h.saeed@hamiltonchamber.ca
2. 905-522-1151 ext: 230 c. 905-220-3030

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