WELCOME TO SAULT STE. MARIE
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Table of Contents EXECUTIVE SUMMARY..................................................................................................................... 3 1. Introduction ............................................................................................................................. 3 2. Cost of Doing Business ............................................................................................................ 4 2.1 Labor Rates ............................................................................................................................ 4 2.2 Real Estate ............................................................................................................................. 5 2.3 Infrastructure ........................................................................................................................ 6 2.4 Provincial and Local Taxes ..................................................................................................... 7 2.5 Economic Incentives .............................................................................................................. 8 2.6 Airport Access ........................................................................................................................ 9 2.7 Government Debt ................................................................................................................ 10 2.8 Federal Funding Support ..................................................................................................... 10 3. Workforce .............................................................................................................................. 11 3.1 Colleges and Universities..................................................................................................... 11 3.2 Workforce Stability .............................................................................................................. 13 3.3 Knowledge and Skill Set Base .............................................................................................. 14 3.4 Net Migration Potential ....................................................................................................... 16 3.5 Population and Scalability ................................................................................................... 18 3.6 Resource Availability ........................................................................................................... 20 3.7 Labour Competition............................................................................................................. 23 4 Business and Political Environment 4.1 Business and Political .......................................................................................................... 24 4.2 Political Support .................................................................................................................. 24 4.3 Technology and Vendor Ecosystem…………………………………………………………………………………25 5 Quality of Life 5.1 Cost of Living ..................................................................................................................... 255 5.2 Housing ................................................................................................................................ 25 5.3 Commute ........................................................................................................................... 256 5.4 Education ........................................................................................................................... 266 5.5 Climate and Geography ..................................................................................................... 277 5.6 Arts and Recreation ........................................................................................................... 288 2
EXECUTIVE SUMMARY Sault Ste. Marie offers a compelling location to establish business operations. This document provides detail about the community, its assets and business environment. From the many strengths and advantages to locating in Sault Ste. Marie, we would like to highlight a few key points for your consideration: Economic incentives from the Northern Ontario Heritage Fund and other Sault-focused funding programs offer significant advantage and could exceed $5 million dollars Training programs offered by Sault College and Algoma University combined with support from the Canada Ontario job grant offer an excellent path for employee training and will help ensure a qualified and capable workforce Sault Ste. Marie offers a high quality of life for staff with affordable housing, low commute times and a natural environment that is second to none Political support from all levels of government will be very high - Sault Ste. Marie is currently served by Conservative MP Terry Sheehan and Liberal MPP David Orazietti who serves as the Minister of Government and Consumer Services Business support organizations go above and beyond in Sault Ste. Marie and will receive a strong support environment from employment service organizations, Sault Ste. Marie Innovation Centre and Sault Ste. Marie Economic Development Corporation Sault Ste. Marie has momentum - the City of Sault Ste. Marie’s credit rating was upgraded to A-A Stable by Standard & Poor’s in 2015; the Canadian Federation of Independent Business released a 2012 report titled “Communities in Boom: Canada’s Top Entrepreneurial Cities” and Sault Ste. Marie ranked 2nd in Ontario ahead of Toronto, Ottawa and London. The City is investing in new quality of place amenities and business support services that will drive prosperity in the future. We invite your company to be a part of this growing and revitalized community and look forward to establishing a new office for your organization in Sault Ste. Marie in the near future! 1. Introduction Sault Ste. Marie has a long and fascinating history and is one of the oldest French settlements in North America and was at the crossroads of the 3,000-mile fur trade route, which stretched from Montreal to Sault Ste. Marie and to the North country above Lake Superior. This area was originally called Baawitigong, meaning "place of the rapids," by the Ojibwa, who used the site as a regional meeting place during whitefish season in the St. Mary's Rapids. After the visit of Étienne Brûlé in 1623, the French called it "Sault de Gaston" in honour of Gaston, Duke of Orléans, the brother of King Louis XIII of France. In 1668, French Jesuit missionaries renamed it Sault Sainte Marie, and a fur trading post was established and the settlement expanded to include both sides of the river. Sault Ste. Marie was founded because of its strategic location in the middle of the Great Lakes. It’s industrial history stretches back to 1894 when industrialist F.H. Clergue harnessed the hydro 3
power of the rapids to establish an empire, including a steel company and paper mill. From this time, the community has emerged as a resilient one that enjoys its beautiful surroundings and position as a border community, situated on the international boundary between Ontario and Michigan. LOCATION Located along the border of the United States and at the heart of the Great Lakes 560 km northwest of Detroit 680 km northwest of Toronto POPULATION Source: Statistics Canada 2011 Sault Ste. Marie, Ontario – 75,000 + District of Algoma - 115,870 MAJOR INDUSTRIES Traditional Forestry/wood products Metal manufacturing/products Lottery and gaming Contact Centre Tourism Emerging ICT Alternative Energy Specialty manufacturing MAJOR EMPLOYERS Essar Steel Algoma Inc. (Metal Manufacturing/Products) Sutherland Global Services Contact Centre (IT Support) Agero Contact Centre (Roadside Assistance Contact Centre) ARAUCO/Flakeboard Company (Forestry/Wood Products) McDougall Energy (Oil & Propane) 2. Cost of Doing Business 2.1 Labor Rates The labour force of Sault Ste. Marie is made up of over 67,130 persons. Over 55.1% of the population of Sault Ste. Marie aged 15+ are participating in the labour force. Participation Rate: Sault Ste. Marie 55.0% Mississauga 57.2% Ontario 65.2% Source: Statistics Canada 2015 4
In Ontario, salaries and wages are competitive with those in United States jurisdictions. When total compensation rates are compared, Ontario provides even more of a cost advantage, largely because of publicly funded health care. Ontario Wage Rates (Hourly) The following are average wages by general occupation for Ontario: National Occupational Classification (NOC) 2010 2011 2012 2013 2014 2015 2016 Management occupations $34.69 $35.31 $37.25 $38.27 $39.63 $39.83 $41.95 Business, finance and administrative occupations $21.19 $21.70 $22.36 $22.94 $23.48 $24.13 $25.80 Natural and applied sciences and related occupations $31.17 $32.12 $33.11 $33.47 $34.36 $34.39 $35.78 Health occupations $26.26 $26.78 $27.16 $28.00 $28.26 $28.70 $29.25 Occupations in social science, education, government $32.22 $28.90 $29.58 $30.19 $30.96 $31.20 $31.34 service and religion Occupations in art, culture, recreation and sport $22.57 $22.98 $23.14 $23.70 $23.89 $25.83 $23.12 Sales and service occupations $15.16 $15.41 $15.79 $16.16 $16.40 $16.76 $16.42 Trades, transport and equipment operators and related $25.59 $22.36 $22.77 $23.39 $23.94 $24.49 $24.97 occupations Occupations unique to primary industry $19.60 $20.38 $21.27 $21.82 $22.62 $23.36 $22.77 Occupations unique to processing, manufacturing and $21.87 $19.11 $19.46 $19.62 $20.18 $20.69 $21.19 utilities Source: Statistics Canada 2010-2016 2.2 Real Estate Average cost of a house in Sault Ste. Marie is significantly less than other Ontario cities. Average House Price (2016): Sault Ste. Marie $169,802 Mississauga $548,816 Ontario $518,000 Source: Municipal Property Assessment Corporation (MPAC) 2016 Residential building permits reflect the expectations of investors regarding the health of the local housing market, including its price outlook. In 2013 the value of residential building permits was $48.8 million, an increase of 27 per cent from $38.4 million in 2012 and more than one-third above its long-term average of $35.7 million. Since 2007 the value of Sault Ste. Marie residential building permits has increased in five of the past seven years. Building permits have been above the average since 2010, exhibiting strong growth in 2010 and 2013. 5
The diagram below compares the value of residential building permits for Sault Ste. Marie and Ontario against their long run averages. The value of residential building permits in Sault Ste. Marie has remained firmly above its long term average since the mid-2000s recovering from a decade of relatively weak performance. Since 2007 the value for permits has remained in line with the provincial average. 2.3 Infrastructure Sault Ste. Marie offers a sound foundation for any business requiring advanced connectivity. The community satisfies these critical requirement with multiple fibre service providers and path diversity with lit fibre provision by Bell Aliant, Ontera (now owned by Bell), and Shaw Communications. Path diversity is achieved by Bell, which has two “west-east” paths (Bell + Ontera) plus a “northern loop” to Sudbury; and by Shaw, which has two paths in/out of the 6
city via a “west-east” path to Sudbury (using Eastlink) and a “U.S. path” via the International Bridge into Michigan where it connects to the regional network owned by Peninsula Fiber Network, LLC (PFN) and its partner routes to Chicago, Minneapolis & Grand Rapids. 2.4 Provincial and Local Taxes The table below provides an overview of the tax rates for the City of Sault Ste. Marie. The tax rates are based solely on land and building rates – there are no taxes on fixed assets or personal property. City of Sault Ste. Marie Tax rates can be found at: http://www.saultstemarie.ca/Cityweb/media/Finance/Tax%20Rates/2016TaxRates.pdf Personal Income Tax Rate: Personal income tax rates for Ontario residents are progressive. The combined federal and Ontario rates range up to about 46 per cent, with the top marginal rate applying to taxable incomes over C$100,000. Ontario's income tax rates are among the lowest in Canada at all income levels. Local Taxes: GST Goods and Services Tax is harmonized and PST – Provincial Sales Tax (Ontario) is included in a tax rate of 13% applied to the supply of most goods and services in Alberta, British Columbia, Manitoba, Ontario, Prince Edward Island, Quebec, Saskatchewan, North West Territories, Nunavut and the Yukon. Almost everyone has to pay GST on taxable goods and services You have to register for GST if you are providing taxable goods or services in Canada in the course of your commercial activities and have taxable revenue above a prescribed minimum You can claim a credit to recover the GST on purchases and expenses you use in your commercial activities Sales of certain goods and services are not subject to GST and are designated as exempt supplies Payroll Taxes: Corporations must collect Employment Insurance premiums and Canada Pension Plan (CPP) contributions, from both the employer and the employee, to provide support for loss of employment (including maternity leave) and retirement. The comparable rate for U.S. employers and employees for social security taxes is higher, at 6.2 per cent. Workers Compensation: The Workplace Safety and Insurance Act, 1997 provides compensation to workers who suffer from workplace injuries or industrial disease. The Workers’ Compensation Board compensates workers through the payment of lost wages, health care costs and retraining and rehabilitation programs. Employers fund the Board through annual assessments based on payroll and the accident experience of their industry, thereby transferring to the Board all responsibility for workplace claims of compensation. Workers cannot sue their employers for workplace injuries or industrial disease. 7
Occupancy Costs: Electricity: Sault Ste. Marie current electricity rates are at this link: http://www.ssmpuc.com/documents/assets/uploads/files/en/electricity_rate_sheet_no v_1_2016_ssm.pdf Water: Sault Ste. Marie current water rates can be found on our website at this link: http://www.ssmpuc.com/documents/assets/uploads/files/en/bylaw_411_to_esablish_ water_rates_for_2016.pdf Additional information: related to how Sault Ste. Marie compares for water/sewer and electricity across the province at these links: http://www.ssmpuc.com/index.cfm?fuseaction=content&menuid=20&pageid=1014 http://www.ssmpuc.com/index.cfm?fuseaction=content&menuid=89&pageid=1075 2.5 Economic Incentives Sault Ste. Marie is fortunate to be able to provide companies with a number of significant incentive programs that can contribute to the success of business operations. The primary incentive programs include: NOHFC - The Northern Ontario Heritage Fund Corporation (NOHFC) is a crown corporation and development agency of the Ontario government that invests in northern businesses and municipalities through conditional grants, forgivable performance loans, incentive term loans and loan guarantees. A series of programs serve business of all sizes. The application process rolls throughout the year and a volunteer Board of Northern Ontario citizens makes final approval on applications. NOHFC can make significant investments ($5M+) in projects that benefit the North and more information about their programs can be found at: http://nohfc.ca/ FedNor - FedNor is the Government of Canada’s economic development organization for Northern Ontario. Through its programs and services, and through its financial support of projects that lead to job creation and economic growth, FedNor works with businesses and community partners to build a stronger Northern Ontario. FedNor’s main funding vehicle, the Northern Ontario Development Program (NODP), focuses on three main priorities: Community economic development, Business growth and competitiveness and Innovation. City of SSM Economic Development Fund (EDF) – The EDF is an annual allocation of $500,000 that the City of Sault Ste. Marie sets aside for economic development initiatives. Administered by the SSM Economic Development Corporation and approved by City Council, the fund can provide strategic resources to enable economic development initiatives in the community. Training Programs – The Province of Ontario and Government of Canada have a number of training assistance programs that are offered to employers with significant training needs. Support for an individual's training costs under the Canada-Ontario Job Grant is shared between the government and the employer. The government will provide two- thirds (2/3) of the eligible training costs up to a maximum of $10,000 per individual. 8
2.6 Airport Access Air carriers serving the Sault Airport include Air Canada Jazz, Porter Airlines and Bearskin Airlines. These airlines operate daily services to and from the Sault Ste. Marie Airport. With one stop, passengers can fly to and from Sault Ste. Marie Airport to major destinations worldwide. Weekly winter vacation flights serving the Sault Ste. Marie Airport are serviced by Sunwing Vacations. The seasonal airlines operate on a weekly basis to and from the Sault Ste. Marie Airport from mid-December to mid-March. Sault Ste. Marie also has a unique option for business travellers with service from Sault Ste. Marie, Michigan’s Chippewa Airport. A Delta Airlines commuter plane flies to Detroit and offers a low-cost alternative for travel to the United States and points beyond. The Sault Ste. Marie Airport is located within city limits. It is the only airport in northeastern Ontario than contains a NAV Canada air traffic control tower. A total of 66,806 itinerant flights (flights from one airport to another) were recorded at the Sault Ste. Marie Airport in 2015; a significant amount of air traffic for a medium sized Canadian city. Total Itinerant Aircraft Movements (2015): Sault Ste. Marie 66,806 Greater Sudbury 35,794 North Bay 37,584 Source: Annual Reports 2015 The Sault Ste. Marie Airport has shown strong growth in passenger flights over the past few years with the introduction of Porter Airlines. Passenger Flights (2015): Sault Ste. Marie 8,891 Greater Sudbury 11,766 North Bay 4,934 Source: Annual Reports 2015 Total Passengers (2015): Sault Ste. Marie 201,347 Greater Sudbury 228,529 North Bay 83,318 Source: Annual Reports 2015 Sault Ste. Marie Airport o With service from: Porter Airlines 9
Air Canada Bearskin Airlines Sunwing Vacations (Caribbean winter service) Regional Service o Chippewa County International Airport - 21 miles (33 km) south in Michigan. This provides Delta Airlines service to Detroit, MI. 2.7 Government Debt Sault Ste. Marie was recently upgraded by Standard and Poor’s municipal evaluation system to be A-A Stable. The community continues to exercise sound fiscal management in conducting its operations and is well positioned to continue to invest in good projects that support the future prosperity of the community. 2.8 Federal Funding Support Sault Ste. Marie has enjoyed strong support from the Federal government for a number of strategic initiatives. The MP for the City is Terry Sheehan a member of the Liberal Party and past Prime Minister Harper has made multiple stops in Sault Ste. Marie over the past few years. Examples of federally funded initiatives include: An investment of $2,120,000 to support the planning and design of a public deep harbour port to modernize industrial docking facilities and increase shipping capacity in the Sault Ste. Marie region. The public gateway deep harbour port project will be led by the City of Sault Ste. Marie and is a partnership venture with public and private sector stakeholders. Some of the private sector firms that are expected to use the facilities include Essar Steel Algoma, Tenaris Algoma Tubes, Avery Construction and Purvis Marine. The funding will assist with project planning and preparation, environmental assessment, and consultation with appropriate First Nation and Aboriginal organizations. The funding was provided through FedNor's Northern Ontario Development Program (NODP), which supports projects that promote economic development, enhance business development and growth, and facilitate innovation throughout Northern Ontario. A FedNor investment of $762,000 to enable the Sault Ste. Marie Innovation Centre (SSMIC) to undertake two initiatives. Of the total, $452,000 will be used to deliver the Broadband E-business and Marketing program. Through the program, the SSMIC will assist eligible small and medium-sized enterprises to develop their digital skills and incorporate e-business technologies into their operations. With the remaining $310,000, the Innovation Centre will deliver the Innovation Accelerator Program to help qualified high-tech enterprises in the region with innovative business and product development activities, such as market research, e-commerce and promotion, and lean production implementation. FedNor funding of $466,500 to enable the Sault Ste. Marie Innovation Centre (SSMIC) to undertake three separate initiatives. First, an investment of $295,000 will assist the SSMIC to hire a coordinator to identify and address gaps in ICT infrastructure; provide ICT training and awareness; and promote and implement broadband applications for small businesses that will enhance their competitiveness and create jobs. The second initiative will benefit from an investment of $140,000 to help the SSMIC implement a regional smart energy strategy. Specifically, the funding will be used to determine the 10
feasibility of developing a smart micro-grid in the community – a small-scale version of a centralized electricity system – as well as develop a bio-oils strategy to support the construction of a bio-energy facility. These initiatives would leverage local energy and natural resource assets and help attract new industries and jobs to the region. For the third initiative, the SSMIC will receive $31,500 to hire a youth intern to assist with the development of a renewable energy sector improvement strategy. Algoma University received federal and provincial funding totalling $16 million through the Knowledge Infrastructure Program and Ontario's 2009 Budget for the Biosciences and Technology Convergence Centre. 3. Workforce 3.1 Colleges and Universities Another reason Sault Ste. Marie growing and thriving is a community wide commitment to education and training. Sault Ste. Marie is home to two outstanding post-secondary institutions with annual enrolment over 5,700 students and boasts a higher than average participation rate in post-secondary education. Algoma University, Sault College and Lake Superior State University in Sault Ste. Marie, Michigan offer excellent opportunities for students and a welcoming, collaborative environment for businesses. The university and college have worked with the community to shape curriculum to meet specific needs of Sault Ste. Marie’s knowledge based industries. The post-secondary institutions have a well-established history of partnering with organizations to understand and deliver on current and emerging requirements for education and skills. One of the benefits of a small community is the institutional leaders are very open to working with industry to adjust curriculum to ensure they are meeting the needs of local employers. Successes to date involve developing and delivering programs as well as investing in faculty and acquiring the latest in tools and equipment. These include the areas of: IT/Computer Science Business Management Digital/Graphic Design Gaming Technology Human Resources Management A more detailed listing of the computer science programming taught at the post-secondary institutions may be provided. Sault College Sault College is the #1 college in Ontario as ranked by students and the largest deliverer of apprenticeship training in Northern Ontario. 11
Sault College has been very proactive in creating custom one-off courses for employers. Just recently, Sault College joined with OLG’s IT group to understand their requirements for upgrading programming skills on the latest software (python). A customized program and delivery schedule resulted in participants being certified on the software by their provincial governing organization in a timely and cost efficient way – all within Sault Ste. Marie. They’ve done similar programs with Essar Steel to upgrade employees Essential Skills and Tenaris – for Management Skills Upgrades. In the fall of 1965, the institution opened its doors as the Sault Ste. Marie Ontario Vocational Centre, or OVC. Similar "training schools" began in London and Ottawa. The OVCs evolved into Ontario's community colleges. Sault Ste. Marie's OVC became the Sault Campus of the newly established Cambrian College of Applied Arts & Technology. Its main campus was located in Sudbury. A second satellite campus opened in North Bay. Community colleges enjoyed immediate public acceptance and support. In fact, Cambrian's enrolment growth was so rapid that within only five years the satellites became independent colleges. The independent Sault College of Applied Arts & Technology emerged in 1973. Sault College has grown tremendously over the years, adding programs in all disciplines. They now respond to the postsecondary educational needs of more than 4,500 part-time and full-time students each year. Algoma University Algoma University offers Bachelor’s degrees in more than 30 academic programs. International students account for 20% of University attendees – the highest percentage in Ontario. AU offers 12
Bachelor Degree options in Computer Sciences (with sub specialties in Computer Games Technology), Information Technology (IT), Finance, HR & Business Systems Management. They have been very proactive in expanding the university and they also have a co-op program which offers students the opportunity to gain experience across a wide variety of Sault employers and for employers to scout future talent. Established in 1965, Algoma University has undergone many changes since the early days when the then Algoma College first began offering courses out of a few portables on the campus of what is now Sault College. Initially an affiliate of Laurentian University in Sudbury, Algoma College began offering classes in 1967, and seized an opportunity for growth by moving into the former Shingwauk Residential School building in 1971, one year after the residential school closed its doors. Algoma College became Algoma University College, still affiliated with Laurentian, with the mandate to offer university programming to residents of Sault Ste. Marie and the surrounding area. Many programs required students to take the final year in Sudbury on the Laurentian campus, but over time program offerings and courses grew until many students were able to complete their degrees in Sault Ste. Marie. In 2008, Algoma University was established as an independent, degree-granting institution when the Provincial Government passed the Algoma University Act. Since 2008, the University has consistently met growth targets designed to increase enrolment from approximately 1000 students to approximately 3000 students by the year 2020. Several new buildings have been added to campus, including the Essar Convergence Centre in 2011 and the New Residence in 2012. Lake Superior State University Located in Sault Ste. Marie-Michigan, LSSU is a complementary institution with 2,600 students enrolled. There is a high level of cooperation/integration among the three institutions – you can start your degree at Sault College and finish at Algoma; or start it at Lake Superior on the US side and finish on the Canadian side – all at attractive tuition rates. 3.2 Workforce Stability Employer feedback in the region has pointed to an advantage for Sault Ste. Marie. Companies have consistently cited the fact that they are able to retain employees for long careers and avoid the churn that often takes place in more competitive job markets and larger centres. In 2011 the unemployment rate of Sault Ste. Marie was higher than both Greater Sudbury and North Bay. Unemployment Rate (2016): Sault Ste. Marie 8.5% Ontario 6.9% Source: Statistics Canada 2016 Ontario Health Insurance Plan - A resident of Ontario must have a health card to show that he or she is entitled to health care services paid for by OHIP. The Ministry of Health and Long-Term 13
Care pays for a wide range of services, however, it does not pay for services that are not medically necessary, such as cosmetic surgery. Most of your Ontario health benefits are covered across Canada. The province or territory you are visiting will usually bill the Ontario Ministry of Health and Long-Term Care directly for hospital and physician services. In Quebec, you may have to pay for physician services and then submit your receipt to your local ministry office for payment. Ontario residents are eligible for provincially funded health coverage (OHIP). To be eligible for Ontario health coverage you must: be a Canadian citizen or have immigration status as set out in Ontario's Health Insurance Act, make your permanent and principal home in Ontario, and be physically present in Ontario 153 days in any 12-month period. Employment Insurance – Earnings subject to Employment Insurance premiums include salaries, wages and paid leave. Pregnancy/Parental Leave – In addition to the 17-week pregnancy leave for mothers, either working parent may take 35 weeks unpaid parental leave to care for a newborn or newly- adopted child immediately following the birth of the child or the pregnancy leave, in the case of the mother. Canada Pension Plan –The employee and employer contribution rates for 2013 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%. Private Pension Provisions – Over 2,000,000 of the Ontario labour force participates in employer-sponsored private pension plans. All employer-sponsored pension plans must be registered with the Financial Services Commission of Ontario www.fsco.gov.on.ca . 3.3 Knowledge and Skill Set Base LABOUR FORCE INDICATORS: Yearly Averages: Participation rate 56.3 Employment rate 51.6 Unemployment rate 8.5 Source: Statistics Canada 2016 By Industry Divisions: Agriculture, forestry, fishing and hunting 223 14
Mining, quarrying, and oil and gas extraction 188 Utilities 438 Construction 2,848 Manufacturing 5,022 Wholesale trade 849 Retail trade 5,630 Transportation and warehousing 1,461 Information and cultural industries 438 Finance and insurance 1,032 Real estate and rental and leasing 626 Professional, scientific and technical services 1,439 Management of companies and enterprises 18 Administrative and support, waste management and remediation services 2,542 Educational services 3,268 Health care and social assistance 6,191 Arts, entertainment and recreation 1,531 Accommodation and food services 3,098 Other services (except public administration) 1,999 Public administration 3,771 Source: Manifold, Super Demographics, 2014 Occupation: Management occupations 3,320 Business, finance and administration occupations 6,420 Natural and applied sciences and related occupations 2,470 Health occupations 3,425 Occupations in education, social science, government service, and religion 5,400 Occupations in art, culture, recreation and sport 770 Sales and service occupations 11,670 Trades, transport and equipment operators and related occupations 6,505 Unique to primary industry 620 Occupations in manufacturing and utilities 2,010 Source: Manifold, Super Demographics, 2014 15
Language used most often at work: Total population aged 15 years and over by language used most often at work 39,920 English 39,524 French 251 Non-official languages 12 English and French 112 English and non-official language 20 Source: Manifold, Super Demographics, 2014 Place of Work Status: Total employed population aged 15 years and over by place of work status 37,022 Worked at home 1,149 Worked outside Canada 161 No fixed workplace address 2,938 Worked at usual place 29,260 Source: Manifold, Super Demographics, 2014 3.4 Net Migration Potential Beyond the current labour force in Sault Ste. Marie, the community offers great potential to attract new employees. First, one must consider that there is a strong network of ex-pats of Sault Ste. Marie – people from the community that would like to return. There is a strong bond to the region and many individuals who left to seek employment would like to return. The Sault Ste. Marie Innovation Centre maintains a “Sault Reconnect” database and external organizations like “Soo Connected” provide vehicles to connect with this talented employment pool. Sault Ste. Marie also understands the importance of creating a welcoming community for newcomers and has established a Location Immigration Partnership (LIP). The LIP was able to take advantage of an initiative of Citizenship and Immigration Canada (CIC) to encourage communities across the province to develop extensive and comprehensive local settlement strategy plans for the development and implementation of services for newcomers, to ease the transition into the work force and social integration into the City. The City of Sault Ste. Marie is the lead organization of the LIP and is made up of approximately 50 members representing many local organizations, institutions, service providers and cultural groups. The main goals of the Sault Ste. Marie LIP are to: Identify and eliminate gaps in programs and services for new arrivals and immigrants Consolidate and centralize community resources and services for new immigrants 16
Address current and pending labour shortages through Immigration Strategy Development Develop and construct a working community strategy/plan From September 2009 to June 2010, the Local Immigration Partnership conducted focus group sessions with different sectors in the community including: Education, Social Services, Business and Employers, Recreation, Culture and Newcomers. Community consultations were also held and were open to all members of the public. Surveys were also distributed to many groups/ organizations and made available for the public through the Discover the Sault website. The information gathered throughout this research phase was the key component to the development of the community based settlement strategy prepared by the Local Immigration Partnership. In June 2010, the Local Immigration Partnership delivered a community based settlement and integration strategy for newcomers to Sault Ste. Marie based on the research gathered during the above time period. This strategic plan entitled “Creating a Welcoming Community” was approved and endorsed by City Council. Since the approval of the community settlement strategy, this report has become the main source guiding the Local Immigration Partnership through each of its phases. The Sault Ste. Marie Local Immigration Partnership is dedicated to the delivery of the recommendations in the “Creating a Welcoming Community for All” Settlement Strategy, through the continuous formation of community partnerships and community awareness projects such as the Immigration Forum’s held in 2011 and 2012. Further funding from Citizenship and Immigration Canada allowed the Local Immigration Partnership an opportunity to form a LIP Council which is made up of 15 members. The LIP Council is responsible for the guidance of the partnership and to provide oversight for the planning to deliver recommendations outlined in the “Creating a Welcoming Community” Strategic Plan. Along with the evolution of the LIP Council, there was also the formation of sub-committees: Community Awareness Campaign Committee Community Forum Committee Newcomer Welcome Centre Committee Each LIP sub-committee is comprised of approximately 8 members. These committees are made up of individuals with expertise and knowledge about event planning, attraction and retention, community trends, local business and education and government. The Local Immigration Partnership, LIP Council and LIP sub-committees make up a collaborative community working group represented by all sectors. They maintain the commitment to promote programs and services within the community & identify and eliminate gaps for newcomers and immigrants following the guidance of the settlement strategy with an end goal of “Creating a Welcoming Community for All”. http://www.discoverthesault.ca/ 17
3.5 Population and Scalability The population of the City of Sault Ste. Marie remained stable between the census years of 2006 and 2011. Population Characteristics: Sault Ste. Marie Greater Sudbury North Bay Population 75,141 160,374 53,651 Growth Rate (2006-2011) 0.3% 1.5% -0.6% Source: Statistics Canada 2011 Population Total private dwellings 33,901 Population density per square km 336.6 Land area square km 223.26 Source: Statistics Canada 2011 Age Characteristics of a population: Total: all persons 75,141 Total Male: 36,111 Total Female: 39,030 Source: Statistics Canada 2011 Population Breakdown by Sex and Age: Age Male Female Total 0-4 1,805 1,650 3,450 5-9 1,715 1,735 3,450 10-14 1,965 1,795 3,770 15-19 2,405 2,305 4,705 20-24 2,380 2,370 4,750 25-29 2,050 2,170 4,220 30-34 1,945 2,125 4,070 35-39 1,915 2,085 3,995 40-44 2,200 2,270 4,470 45-49 2,735 3,095 5,830 50-54 3,065 3,450 6,515 55-59 2,850 2,965 5,810 18
60-64 2,575 2,695 5,275 65-69 1,880 2,125 4,005 70-74 1,585 1,860 3,445 75-79 1,365 1,620 2,985 80-84 1,025 1,400 2,425 85+ 655 1,315 1,965 Median Age: 45.7 % of pop. 15+: 85.8 Source: Statistics Canada 2011 Language first learned and still understood: English only 71,160 French only 2,430 Both English and French 6,860 Other 2,190 Visible Minority Status: Total population by visible minority groups Visible minority Population 1,215 Chinese 290 South Asian 270 Black 260 Filipino 35 Latin American 110 Southeast Asian 40 Arab 85 West Asian 0 Korean 40 Japanese 25 Visible minority 0 Multiple visible minorities 35 Not a visible minority 72,415 Source: Statistics Canada 2011 Aboriginal Population: Total: all persons 73,625 19
Aboriginal identity population 6,740 Non-aboriginal population 66,885 Source: Statistics Canada 2011 Immigration Characteristics: Total population 73,625 Non-immigrants 66,695 Immigrants 6,700 Before 2001 6,105 2001 to 2005 250 2006 to 2011 340 Non-permanent resident 235 Source: Statistics Canada 2011 3.6 Resource Availability 3.6.1 Broadband A critical resource for any technology company is the availability of abundant broadband resources. Sault Ste. Marie offers an advanced communication infrastructure to suit the needs of large server farm projects. The unique geographic location of the community located directly on the U.S. border provides the ability for redundant access to major U.S. telecommunication backbones. The city is the home of the only fibre optic connection to the U.S. located on the upper Great Lakes via the International Bridge. This is a unique advantage to locating a facility in Sault Ste. Marie. The Sault Ste. Marie area can meet the Information and Communication Technology needs as the region is served by three independent broadband carriers each offering OC192 network lines with 10Gbps and GbE capacity. It should be noted that Sault Ste. Marie is also home to the headquarters of Ontario Lottery and Gaming (OLG), which helps to demonstrate the maturity and sophistication of the community’s communication infrastructure. The OLG has annual revenues surpassing $3.5 billion dollars and a number of province-wide services are at times conducted from the SSM. 20
4.Network Shaw Ontera Network Bell Network 21
3.6.2 Power Sault Ste. Marie provides an attractive location when considering the electricity resources in the region. The area is unusual as it is one of the few areas in North America that has created a generation system made up primarily of renewable energy assets. The Algoma region exports up to 150 MW of power south (to Southern Ontario) and in peak seasons the municipality of SSM consumes less than a quarter of the total power generated in the region. More renewable projects could be developed in the region current transmission lines to export power to southern Ontario are at capacity. A better solution for the community is to increase demand and use this power locally! The area possesses a surplus of power and a diversity of supply that includes: Energy Production Solar KKR, a leading global investment firm with $77.5 billion in assets under management as of December 31, 2012, owns a 60 megawatt ground mounted solar farm located in Sault Ste. Marie. This $400 million project uses solar photovoltaic (crystalline silicon) cells to capture the energy from the sun and convert it into electricity. Sault Ste. Marie is also home to Heliene, a company operating an advanced solar panel manufacturing facility that is capable of producing up to 30 megawatts of solar panels annually. The community has also been very proactive in taking advantage of the Green Energy Act and corresponding Feed In Tariff program and has over 500kW of rooftop solar installations throughout the community. Wind Brookfield Renewable Power’s Prince Wind Farm was a two-phase project comprised of 126 wind turbines extending over nearly 100 km2. The wind farm has a total installed capacity of 189 megawatts and produces enough electricity to power 60,000 homes. Sault College of Applied Arts and Technology also has an on-sight wind turbine that has an installed capacity of 35 kilowatts. The turbine was erected in July 2008 and has since produced 44 megawatt hours of electricity. It is now used as a teaching application for the Mechanical Engineering Technician program. Hydro Brookfield Renewable Power has five Sault Hydro Operations sites with hydroelectric generating stations; Francis H. Clergue, Mackay, Gartshore, Hogg, and Andrews, located on the Montreal River and the St. Mary’s River in Sault Ste. Marie and surrounding areas. The facilities have an installed capacity of 203 megawatts, producing an average of 928 gigawatt hours of electricity annually. 22
Municipal Solid Waste Elementa Group established a pilot plant in 2008 at the Sault Ste. Marie landfill site, with the intent of converting garbage into energy. The technology breaks down carbon material (municipal solid waste) at the molecular level using a patented steam-based reformation process. Elementa and the City of Sault Ste. Marie negotiated a waste supply agreement to progress into the second phase of the project, which consists of a demonstration plant with the potential to generate 6–7 megawatts of electricity per year. For a city the size of Sault Ste. Marie a truly impressive amount of renewable energy in being generated in the region and community leaders have identified this sector as a priority for development. A community “Smart Energy Strategy” has been developed and is being actively implemented with local stakeholders actively seeking to support new projects. Sault Ste. Marie also provides a stable and safe source of electricity for the mission-critical operations of the facility. A facility located in Sault Ste. Marie could tie in directly to a line that is fed from Brookfield Renewable Power’s generation facilities through Great Lakes Power Transmission or be serviced by our local SSM PUC. The organizations can meet the significant power requirements of a major data centre and some unique notes for the two are provided below: Brookfield Power - Unique arrangements can be made with Brookfield Renewable Power to provide a direct feed to a site. In addition, a company could contract out for power purchase or potentially purchase/own a transformer station which would eliminate the monthly transformation cost. PUC Distribution – PUC Distribution is the local utility provider for the City of Sault Ste. Marie. It should be noted that customers of PUC Distribution pay 0.5 cents per kWh less than the rest of the province for the government imposed “Debt Retirement Charge” which is listed below. The Debt Retirement Charge is currently set at 0.2 ¢/kWh for PUC Distribution customers while the rest of the Province pays 0.7 ¢/kWh. The OEB approved this reduced rate for our customers in recognition of the corresponding historical percentage of power purchased by Great Lakes Power from the former Ontario Hydro to supplement its energy production. AVAILABLITY OF LABOUR Number of Organized Unions in Area: Source: Ontario Ministry of Labour There are approximately 70 organized Unions in the Sault Ste. Marie and Algoma District. 3.7 Labour Competition MAJOR EMPLOYERS: Top For Profit Employers and # of Employees: Essar Steel Algoma 3,400 Agero 490 Wal-Mart 428 Metro Inc. 403 23
Tenaris Algoma Tubes 330 Sutherland Group 250 Source: SSMEDC – Source Business Directory 2015 Top Not-For-Profit Employers and # of Employees: Sault Area Hospital 1,757 Algoma District School Board 1,361 City of Sault Ste. Marie 1,313 Sault College of Applied Arts & Technology 940 Ontario Lottery and Gaming Corporation & Casino 917 Huron-Superior Catholic District School Board 900 Source: SSMEDC – Source Business Directory 2015 4. Business and Political Environment 4.1 Business and Political Company testimonial after testimonial indicates clearly that Sault Ste. Marie provides a supportive business and political environment. The community leaders are very focused on diversifying the economy and making sure that employers receive the support they need to succeed in their business operations. The community contributes funding to the Sault Ste. Marie Economic Development Corporation and the Sault Ste. Marie Innovation Centre to ensure that businesses have a team of experienced professionals at the ready to service local and prospective businesses. Community leaders are very collaborative and ensure that a coordinated approach is taken to advancing the community. Businesses will benefit from this open environment that takes advantage of the city’s size to enable efficient and effective response to business opportunities and needs. 4.2 Political Support From a political standpoint, the community is currently served by MP Terry Sheehan of the Conservative Party and MPP David Orazietti of the Liberal Party. MPP Orazietti currently serves as the Minister of Government and Consumer Services. Both of these individuals are champions for advancing Sault Ste. Marie and ensuring our businesses receive the support they need for ongoing success. The current mayor is first time incumbent Christian Provenzano, who was elected in October of 2014. 24
4.3 Technology and Vendor Ecosystem Sault Ste. Marie has a robust technology and vendor ecosystem. With major companies such as Essar Steel and the Ontario Lottery and Gaming Corporation as anchors, the community has built up a rich talent pool and vendor community. The Sault Ste. Marie Innovation Centre (SSMIC) is a non-profit organization with a mandate to grow the science and technology sector. SSMIC services over seventy science and technology companies that range from startups in their business incubator to larger SME’s with a global client base. 5. Quality of Life Sault Ste. Marie offers an excellent quality of life for professionals and their families. The community is situated in the heart of some of the most picturesque and beautiful environments in the country. This provides opportunities for world class recreational activities that span four seasons. As a border city, Sault Ste. Marie also offers unique opportunities to take advantage of attractions and services located a quick bridge ride away from northern Michigan. As a city, Sault Ste. Marie has a proactive population that is also committed to its arts and culture scene. Further, the City of Sault Ste. Marie has invested heavily in improving the quality of place for residents including the construction of a downtown boardwalk, establishment of the Hub Trail and creation of new bike paths for residents. Sault Ste. Marie recently won the Canadian Urban Institute’s Excellence in Project Development: Neighborhood Scale for the Sault Ste. Marie Waterfront Revitalization project The following sections provide greater detail of the advantages of living in Sault Ste. Marie and also the tremendous arts and recreation resources available to its residents. In short, we are proud of all this city has to offer and provide a wonderful lifestyle for any company to attract and retain employees. 5.1 Cost of Living The cost of renting a two bedroom apartment in Sault Ste. Marie is less expensive than other northeastern Ontario cities. Average Monthly Rental Rate – Two Bedroom Apartments (2013): Sault Ste. Marie $616 Greater Sudbury $935 North Bay $890 Source: Canada Mortgage and Housing Corporation 2014 5.2 Commute Sault Ste. Marie residents enjoy a much shorter commute time than other parts of the province including Greater Sudbury. 25
Median Commuting Duration (minutes): Sault Ste. Marie 10.8 Greater Sudbury 15.8 North Bay 10.9 Ontario 20.8 Source: Statistics Canada 2011 5.3 Education Educational Institutions within Sault Ste. Marie: Universities: Algoma & Lake Superior State (MI) 2 Comprehensive Colleges: Sault College 1 Huron-Superior Catholic District School Board Elementary Schools 10 Secondary Schools 1 Algoma District School Board Elementary Schools 23 Secondary Schools 4 Source: ADSB (2016) / HSCDSB (2016) Educational Attainment: Total pop. 15 years and over by highest certificate, diploma or degree 63,040 No certificate, diploma or degree 12,725 High school diploma or equivalent 18,075 Apprenticeship or trades certificate or diploma 6,125 College, CEGP or other non-university certificate or diploma 14,440 University certificate or diploma below bachelor level 2,000 University certificate, diploma or degree 9,675 Total pop. aged 25 to 64 by highest certificate, diploma or degree 39,920 No certificate, diploma or degree 4,210 High school diploma or equivalent 11,045 Apprenticeship or trades certificate or diploma 3,980 College, CEGP or other non-university certificate or diploma 11,680 26
University certificate or diploma below bachelor level 1,475 University certificate, diploma or degree 7,535 Source: Manifold SuperDemographics 2014 Major Field of Study: Total population aged 15 years and over by major field of study - 63,045 Classification of Instructional Programs (CIP) 2011 No postsecondary certificate, diploma or degree 30,805 Education 2,605 Visual and performing arts, and communications technologies 685 Humanities 1,455 Social and behavioural sciences and law 3,120 Business, management and public administration 5,470 Physical and life sciences and technologies 610 Mathematics, computer and information sciences 950 Architecture, engineering, and related technologies 8,235 Agriculture, natural resources and conservation 960 Health and related fields 5,690 Personal, protective and transportation services 2,465 Other fields of study 0 Source: Manifold SuperDemographics 2014 5.4 Climate and Geography The climate of Sault Ste. Marie is very similar to other northern Ontario cities that are located at the same latitude. Days per Year with Precipitation: Sault Ste. Marie 175.84 Greater Sudbury 166.87 North Bay 180.32 Source: Environment Canada 2014 Days Above 0°C: Sault Ste. Marie 175.84 Greater Sudbury 166.87 North Bay 180.32 27
Source: Environment Canada 2014 Days Above 20°C: Sault Ste. Marie 93.52 Greater Sudbury 95.6 North Bay 91.31 Source: Environment Canada 2014 Mean Daily Temperature: Sault Ste. Marie 4.73°C Greater Sudbury 4.1°C North Bay 4.22°C Source: Environment Canada 2014 5.5 Arts and Recreation As a mid-size city, Sault Ste. Marie definitely punches above its weight when it comes to the arts and recreation scene. The geographic location of the city places it in one of the most picturesque and beautiful environments in the country. To the east, by twenty minutes’ drive, the North Channel and St. Joseph Island provide a beautiful cottage country location with premiere boating, fishing, swimming and sailing opportunities. West of the community, by twenty minute drive, the coast line of Lake Superior provides an awe-inspiring location with miles of beach and the sweet water sea of the greatest of the Great Lakes. South of the community, the playground of upper Michigan provides wonderful scenery and upscale communities such as Harbor Springs, Traverse City and Petoskey. The recreation of the region is unparalleled with opportunities for every outdoor pursuit one can imagine. World class mountain biking, hiking, fishing, downhill skiing, cross country skiing, boating, hunting, snowmobiling – the area is a treasure trove for those who enjoy the outdoors. As a City, Sault Ste. Marie has invested heavily in improving the quality of place for residents including the construction of a downtown boardwalk, establishment of the Hub Trail and creation of new bike paths for residents. Sault Ste. Marie recently won the Canadian Urban Institute’s Excellence in Project Development: Neighborhood Scale for the Sault Ste. Marie Waterfront Revitalization project. The arts scene has also been a focus area for the community and Sault Ste. Marie boasts an impressive array of art opportunities for people of all tastes. A sampling of some of the arts and recreation activities of Sault Ste. Marie are provided below: i. Arts 28
The Art Gallery of Algoma is a full sized art gallery, located in downtown Sault Ste. Marie, with permanent and travelling collections. The AGA was founded as a non-profit public art gallery and incorporated on July 7, 1975. Established by a group of dedicated volunteers and arts enthusiasts, the AGA honours its roots as a community organization with its mission celebrating culture, educating visitors and enriching lives through the visual art. The AGA’s vision is to be a premiere visual arts institution in northern Ontario, gaining national recognition and international partnerships. The AGA moved to its present location next to the scenic and historic St. Mary's River in 1980, a 10,000- square-foot facility including four exhibition spaces, the Ken Danby Education Studio, the Gallery Café and the AGA Gallery Shop. www.artgalleryofalgoma.com Algoma Conservatory of Music is a non-profit music school that works in association with Algoma University. Established in 1971, Sault Ste. Marie has become home to one of the largest and finest music schools in Ontario. From professional violinists, singers, flutists, guitarists and pianists, to our many youth orchestras and choirs - there is hardly a music event in Sault Ste. Marie which does not involve one of their many resident instructors or students. Many of the faculty have relocated to Sault Ste. Marie from across Canada to teach at the Conservatory and through Algoma University's Music & Fine Arts Programs, bringing their performance and teaching experience to hundreds of students every year. A full range of group music classes are offered for young children, as well as private instrumental and vocal lessons for all ages with outstanding teachers. In addition there are several levels of youth orchestras, group violin & cello classes, youth choirs and guitar ensembles; as well as music theory and history classes to meet the requirements for Royal Conservatory of Music examinations. The Conservator also hosts many student concerts and special events including: Algoma Conservatory Concerts - featuring some of the finest Canadian and international touring ensembles and soloists. www.algomaconservatory.com 29
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