Calgary Economy

[Me&You]

There seems to be a renewed optimism in the direction of the economy. The O&G guys can't help but grin from ear to ear right now. Things are going to go crazy again...

[Ramsayfarian]

Originally Posted by freeweed

Better than most of the country, but not as good as it was in 2007. What this translates into: you can likely find a job here but it will take some looking. And you won't be getting paid 3x the going rate, although you will get the highest wage in the country (on average).

Depends what you type of job one is looking for. IT is starting to really pick up. Not like it was but it is gaining momentum.

[eternallyme]

Originally Posted by Ramsayfarian

Depends what you type of job one is looking for. IT is starting to really pick up. Not like it was but it is gaining momentum.

That is what I thought, and one of the sectors I am interested in. Maybe in the spring I will look more out west.

[SpongeG]

Target building huge distribution centre near Calgary


By Mario Toneguzzi, Calgary Herald January 6, 2012

CALGARY — American retail giant Target Corp. is building a huge distribution centre just outside Calgary, the Herald has learned.

Molly Snyder, Target spokesperson, confirmed the centre will be the company’s third in Canada and will be in Balzac in Rocky View County.

“The centre will be approximately 1.3 million square feet and will sit on just under 80 acres,” she said. “Target has selected sites for its distribution centres that will help to ensure that our supply chain needs are met for our Canadian stores. Target intends to open its first stores in March/early April 2013 and its distribution centres will be completed in time to support the needs of the stores.”

She said the centre will be managed entirely by an outside logistics company, Eleven Points Logistics.

“They will manage all recruitment and hiring and will communicate those needs and plans with local communities in the coming months,” added Snyder.

The centre will be located off of Range Road 291, east of Nexen’s Balzac Power Station.

...

Read more: http://www.calgaryherald.com/Target+...#ixzz1ijEH4euZ

[Dado]

I was reading an article in the Financial Post the other day about Hunter Harrison's plans to reform CPR in his image.

Apparently one of the things he wants to do is move CPR's headquarters from downtown Calgary to a site in the Ogden yards.

I wonder how popular that will be amongst the CPR's headquarters staff, at least amongst those who are still left when he is done.

[freeweed]

Originally Posted by Dado

I was reading an article in the Financial Post the other day about Hunter Harrison's plans to reform CPR in his image.

Apparently one of the things he wants to do is move CPR's headquarters from downtown Calgary to a site in the Ogden yards.

I wonder how popular that will be amongst the CPR's headquarters staff, at least amongst those who are still left when he is done.

This move has already been announced.

[Spring2008]

CEO of Vancouver Economic Commission leaves to work for Calgary Economic Development
The chief executive officer of the Vancouver Economic Commission has left to go work for Calgary Economic Development.

Lee Malleau, who has been on leave since last month, announced in a brief statement Friday afternoon that she was leaving the VEC after four years at its helm.

Malleau was heavily involved in transforming the city's moribund economic development department into a commission aimed at trying to attract more businesses involved in the green economy.

She also led the city's Olympic Business Program, which the city says generated more than $350 million in economic benefits.

“My time at the VEC has been tremendously rewarding,” Malleau said in a statement. “I will always look back with a great deal of pride and satisfaction at the work we did, and the results we produced as a team, and with the community.”

Mayor Gregor Robertson, who chairs the VEC, took a break from his holidays to also issue a statement thanking her for her service. “She helped lead our city’s economic development agency through some tough economic times with great results.”

Malleau will remain with the VEC until later in January. Joan Elangovan has been appointed acting CEO while a replacement is sought.

Read more: http://www.vancouversun.com/business...#ixzz2H3h2f9nX

Read more: http://www.vancouversun.com/business...#ixzz2H3gU3aXQ

[Spring2008]

Ontario hoping to boost business by opening trade office in Calgary


By Bill Graveland, The Canadian Press November 13, 2013 12:30 PM



CALGARY - Ontario intends to open a new trade office in Calgary in the coming months.

Eric Hoskins, Ontario's minister of economic development, made the announcement to delegates on the opening day of the National Supply Chain Forum in Calgary.

"Alberta is poised to buy billions of dollars in Ontario-made goods in the coming years, especially in the areas of water treatment, energy, and infrastructure, and we are committed to seizing that opportunity," said Hoskins.

"Our province's new trade office in Calgary will help Ontario businesses access Alberta’s market, grow their businesses, and create jobs."

Many Ontario-based companies are at the forum, including specialists in wastewater treatment, custom fabrication, engineering and oilfield services.

An Ontario government news release said the initiative will help Ontario firms connect with companies in Alberta to fulfil supply needs. It will also explore opportunities for Ontario's small-and-medium-sized enterprises.

Ontario doesn't have an office in Alberta right now, although a bureaucrat at the Ontario legislature devotes part of his time dealing with Alberta files.

The move appears to be a growing indicator of warming relations between Alberta and Ontario.

Ontario Premier Kathleen Wynne paid a visit to Alberta Premier Alison Redford last month and said what's good for Alberta's oil and gas industry is good for her province, too.

"Oil and gas are clearly fundamental to Alberta's economy and to Canada's but also to Ontario's — and I want everyone to know that I understand that and I want to advance that," Wynne told a corporate crowd in Calgary.

"Many of our Ontario manufacturers now directly support your industry. I want us to build on that relationship.''

Wynne set a different tone than that of her predecessor on her first official visit to Alberta since she became premier of Canada's most populous province in January.

Dalton McGuinty drew Alberta's scorn last year when he said the oil and gas industry was driving up the loonie and making it more difficult for Ontario manufacturers to export their goods. He later softened his stance.

The news about the trade office was well received at the forum.

"That's a really exciting development in terms not only of our attempts to have a very strong national energy conversation but actually building really important bridges between the two provinces," said Bill Whitelaw, chief executive officer of JuneWarren-Nickle's Energy Group.

Western Diversification Minister Michelle Rempel favours increased trade opportunities between provinces.

"Any time we can increase trade opportunities between provinces it's a good thing," said Rempel.

"Obviously it's a positive announcement and I think the opportunities for trade across Canada are something that we should be promoting and it's great."

http://www.calgaryherald.com/news/na...835/story.html

[Spring2008]

So much for new office proposals:

http://www.calgaryherald.com/touch/s...tml?id=9346147

[suburbia]

Originally Posted by Spring2008

So much for new office proposals:

http://www.calgaryherald.com/touch/s...tml?id=9346147

Wow! Near double digit vacancy rates are sure problematic.

[DizzyEdge]

Isn't it around 5% that is considered "healthy"?

[DizzyEdge]

One thing that I am surprised I rarely read in the paper is the future of Alberta's O&G economy. With gas prices being so low for so long (and with US shale gas doesn't seem like it will be going up anytime soon), and with occasional reports on how the US might be an oil exporter in the new few years (or maybe this year: http://online.wsj.com/news/articles/...78231430738684 ), you'd think it would be a sky is falling scenario. All you hear though is how our oil is discounted so we aren't making as much money as we like. Anyone care to comment on what the industry outlook actual is?

[Spring2008]

Originally Posted by DizzyEdge

Isn't it around 5% that is considered "healthy"?

Yeah. I'm not too worried about the absorption. Those big anchor signings will be counted when the new developments are delivered to the market. Lots of sublease space being brought back to the market, but that'll get signed up as soon as the outlook improves i.e. nat gas price increases and/or pipeline projects get going.

The amount of new office supply coming again is huge though. Time for Calgary to try to diversify and attract more head and international offices here, if we want to be more than just a big prairie city.

[geotag277]

Originally Posted by DizzyEdge

One thing that I am surprised I rarely read in the paper is the future of Alberta's O&G economy. With gas prices being so low for so long (and with US shale gas doesn't seem like it will be going up anytime soon), and with occasional reports on how the US might be an oil exporter in the new few years (or maybe this year: ), you'd think it would be a sky is falling scenario. All you hear though is how our oil is discounted so we aren't making as much money as we like. Anyone care to comment on what the industry outlook actual is?

It's a sign of how healthy the industry is that it can sustain these low oil prices for so long and still be rapidly expanding. Also keep in mind US is the only customer right now.

Keeping in mind that even now the industry is healthy, there are several developments which could improve the situation even more:

- a pipeline project is approved to cheaply get oil to another customer besides the US
- there are huge investments in technology in oil sands, several different kinds of breakthroughs are possible across the stages of the extraction process to make it significantly cheaper to extract
- oil demand is surging in developing countries, which is likely to cause prices to increase, even if the us is a net exporter they are still a top importer, and for all the demand US is losing on importing, China is more than picking up the slack the other way



There are several challenges however. With the US as our only customer, we've had trouble getting our oil into refineries. There are only a few refineries appropriate for the crude oil coming out of Alberta, and Saudi Arabia and other countries can play price fixing games to make sure their oil undercuts oil sands oil by enough to make oil sands oil seem less competitive than it really is.

[Spring2008]

Big increases in tourism again despite the summer flood:

Calgary tourism industry booms in 2013 despite flood

7.5 million visitors and $1.6 billion in spending

By Mario Toneguzzi, Calgary Herald January 4, 2014 9:19 AM

Calgary tourism industry booms in 2013 despite flood

Calgary’s tourist-related industries attracted 7.5 million visitors and tourism spending of $1.6 billion in 2013.
Photograph by: Ted Rhodes , Calgary Herald

CALGARY - Despite a devastating flood and some internal squabbling within the industry, tourism in Calgary was a booming business in 2013 - and will continue to be for the foreseeable future.

The numbers tell the story.

As of the end of November, there were 81,033 more hotel rooms sold in 2013 than in the same period in 2012.

“If anything, all the flood did was kind of define who we were, showed what we’re capable of and went on to kind of show the nation and all in the world that Calgary’s a pretty special place,” says Cindy Ady, chief executive of Tourism Calgary.

That special place attracted 7.5 million visitors and tourism spending of $1.6 billion in 2013.

“We’re always stronger when we hunt in a pack. That’s just the truth about tourism or in the space that we sit . . .When we partner, we’re stronger.”

It was a tumultous year for partners in the industry even before June’s destructive flood hammered the city.

At its annual general meeting in April, Tourism Calgary reported that 5.2 million visitors spent an estimated $1.4 billion in the city in 2012. But in a speech, during that meeting, Mayor Naheed Nenshi said that “parochialism and small-mindedness” within the city’s tourism sector needed to be addressed.

Less than one week after reporting the record-breaking year, Tourism Calgary replaced its chief executive Randy Williams. The organization, in announcing Williams’ abrupt departure, said he was being replaced on an interim basis by former Alberta Tourism Minister Ady.

Then in mid-May, the Calgary Hotel Association announced it was pulling its $2.5 million annual funding for Tourism Calgary and reallocating the money to other partners. About two-thirds of the association’s 63 members voluntarily contributed to the destination marketing fund. A three-year funding agreement, which was set to expire in December, was not going to be renewed, it said.

Ady was brought in to solve that one key stakeholder issue.

“I think there’s going to be a resolution and we’re getting close . . . For me, it’s about when we’re all working together . . . . I’m feeling a positive pull in that direction. That’s my mission in life, and what I’m here to accomplish, and I think we’re in a better place today than we were yesterday,” says Ady.

“Always within this space, it’s a matter of where you focus resources and energy and how do governance structures work together. And so in Calgary we’re trying to create something much like the Travel Alberta model where we create the opportunity for it to act and react like a business and to ensure that the right resources are going to the right places.”

Jon Jackson, executive director of the Calgary Hotel Association, says the group is committed to delivering the maximum return on investment to its members with the money that they’re providing to the destination marketing fund.

“We have been having discussions about a potential long-term partnership with Tourism Calgary with the goal of ensuring both short and long-term benefits to our members, the industry at large and the city as a whole. To that, we have made an offer to Tourism Calgary towards a partnership and they are currently considering it,” he says.

Developing those partnerships was a key message in 2013. That was evident during and immediately after the flood.

Prior to the flood, the industry was well on its way to stellar growth with a 5.6 per cent increase in visitor growth. Then the flood hit. But the tourism industry rallied in a coordinated response. It certainly helped that the Calgary Stampede decided to go ahead with the Greatest Outdoor Show on Earth “Come Hell or High Water.” And the recovery for tourism was quick as it registered a 4.8 per cent hike in visitors for 2013 - a figure above the national average despite going through one of the most devastating natural disasters in Canadian history.

“We could have gone into destruction with everyone cancelling their plans and no one coming to Calgary. That could have happened. But we still had a 4.8 per cent growth for 2013. That in itself is a good story,” says Ady.

“(Calgary) is the economic engine of the country so you have a certain amount of business tourism. But it matters because they stay in hotels, eat in restaurants, use taxis. You already have that natural advantage. People come here for business. And they’re going to continue to.”

That’s weekday business. Ady says the job of Tourism Calgary is to move the needle on the weekend business and it had some success in that area in 2013. Part of it was through the natural growth of the city’s population as family and friends came to visit.

But more importantly, it saw sustained growth in sports tourism and major events like the PGA Seniors Tour and the Tour of Alberta.

Sports tourism alone accounted for almost 49,000 hotel rooms for this year.

Ady says this area will be one the industry continues to pursue vigorously.

There are many signs and indications that the tourism sector in Calgary will continue to boom in the years ahead as Tourism Calgary sets a goal of $2.3 billion annually in total tourist spending by 2020.

Recently, the Conference Board of Canada provided some positive reinforcement for that.

It said Calgary will lead all Canadian cities in spending growth related to overnight visits after seeing a quick 2013 turnaround following the June floods.

It estimates 2013 overnight visits will reach 3.4 million, a 1.6 per cent increase from the previous year, and is predicting a further four per cent jump in 2014.

The board forecast calls for longer term growth of 3.1 per cent in 2015, 3.4 per cent in 2016, and 3.3 per cent in 2017, while estimating total spending from overnight visits this year will rise almost five per cent to just over $1 billion. A further 6.8 per cent increase in spending is expected next year.

Ady says Tourism Calgary will continue to work in the area of research to make sure it is making the right decisions and backing them up by clear measures. It will expand its ability to attract major events. It will go after new international and national markets, seeing tremendous growth potential there. It’s also working more with developing partnerships with Banff and Canmore for 2014.

The expansion of the Calgary International Airport will help as will more events being announced for the city.

Ady says tourism growth doesn’t happen by accident. It takes a lot of hard work.

A key indicator of the health of the tourism market is hotel rooms and occupancy. Calgary has the highest occupancy rate in the country.

Jackson says there are 12,300 hotel rooms in the city with a projection of a 20 per cent increase by 2016.

As of the end of October, year-to-date occupancy was 75 per cent and it was projected to be the highest occupancy rate in the country.

“It’s been a strong year for the hotels . . . It continues to be the business traveller leading the way. The Monday to Thursday business with the sheer number of head offices we have in the city we have such a high demand for the business traveller to find hotel space,” says Jackson.

mtoneguzzi@calgaryherald.com

http://www.calgaryherald.com/busines...220/story.html

[Allan83]

The Guardian’s “Holiday hotspots: where to go in 2014”
http://www.theguardian.com/travel/20...-to-go-in-2014

Alberta comes in at #9

[Spring2008]

Keep those Chinese banks coming!

World’s largest bank opens branch in Calgary


BY AMANDA STEPHENSON, CALGARY HERALD JANUARY 9, 2014

Industrial and Commercial Bank of China, the largest bank in the world in total assets, officially opened a Calgary branch Wednesday.

The move marks the first foray into Alberta for the bank’s Canadian subsidiary, known as ICBK. There are already five branches in Toronto and two in Vancouver.

“It’s a great step for us to open a new branch here in Alberta,” said Qi Tao, manager of the Calgary branch. “There are a lot of Chinese investors, especially the big oil and gas companies, that have invested here in Alberta. Seventy-five per cent of direct Chinese investment in Canada is allocated here, so it makes sense to open a branch.”

In addition to serving Chinese business community in Calgary, Tao said the branch will help Canadians navigate the Chinese market.

“Canadian investors can go through us to know about the Chinese community, to know the policy, to know the legal issues. So we can help them to succeed as well,” he said.

Industrial and Commercial Bank of China serves 4.6 million corporate clients and about 400 million individual clients worldwide, and has a global network of branches and subsidiaries in 42 countries over 5 continents. It first entered the Canadian market in 2010.

Since then, Calgary Economic Development has been leading an effort to attract the bank to Calgary. Mayor Naheed Nenshi met with bank executives as part of a CED trade mission to China in 2011, and Premier Alison Redford did the same on her trade mission to Hong Kong and Beijing in 2012.

Rachel Yin, business development officer for CED, said securing an ICBK branch is a major win for Calgary and will help grow trade between this city and China’s fast-growing economy. ICBK is the second Chinese bank to open in Calgary, following on the heels of Bank of China which opened a branch in the city in late 2011.

“We’ve seen a lot of investment coming from Asia, especially from China, in the last couple of years, and we do need more capital in this area,” said Rachel Yin, business development manager, financial services with Calgary Economic Development. “At the same time, a lot of Canadian companies are going overseas to do business — and while our Canadian banks can help in some ways, however, there are some unique characteristics about those foreign banks.”

The last half of 2013 was a slower period for Chinese investment in Calgary, especially when compared to China-based CNOOC’s blockbuster $15.1 billion acquisition of Nexen Inc. that took place earlier in the year. But Tao said ICBK’s decision to open a branch here is a vote of confidence that trade between Calgary and China will continue to grow into the future.

“It’s our commitment to the local economy,” he said.

The grand opening ceremony for the new branch — which took place after press time — was expected to be attended by Premier Alison Redford, Mayor Naheed Nenshi, and Xinping Wan, Consul General of the People’s Republic of China.

http://www.calgaryherald.com/busines...319/story.html

[Spring2008]

Calgary added ~3,000 jobs last month, and ~30,000 YoY or 30% of the employment growth nationwide. Not bad!

http://www.google.ca/url?sa=t&rct=j&...0XD39yszl1OA5Q

[Spring2008]

Calgary's leading Canada in office market development again. Though I'm not sure I agree with the 38% lease ratio. Bigger developments like Brookfield Place, Imperiol Oil, Centre 10, EAP West, and 3-Eau-Claire are all fully leased or close to, while it seems like most of the remaining are closer to 50% pre-leased already.

Calgary's office construction market biggest in Canada Calgary is experiencing another office construction boom. A+ BY MARIO TONEGUZZI, CALGARY HERALD JANUARY 16, 2014 CALGARY - Calgary has surpassed Toronto as the biggest office development market in the country, says a new report released Thursday. Avison Young’s 2014 Canada, U.S. Forecast, which covers the office, retail, industrial and investment markets in 36 Canadian and U.S. metropolitan regions, said nearly 27 million square feet of new office space (48 per cent pre-leased) has been announced or is under construction across Canada, equating to five per cent of the existing inventory. Calgary and Toronto are the dominant development markets in the country, combining for nearly 17 million square feet or 62 per cent of the overall construction projects. “Calgary surpassed Toronto as the biggest development market in Canada” with almost 8.9 million square feet (only 38 per cent pre-leased) – “an exceedingly high proportion of the city’s existing inventory” at 13 per cent “and more than twice the national average,” said Avison Young’s report. Close behind is Toronto with 7.8 million square feet (48 per cent pre-leased), equating to five per cent of the city’s existing inventory, it said.

http://www.calgaryherald.com/touch/s...tml?id=9394067

[Deepstar]

I'm not in the O&G industry, but I believe the positive outlook is more to do with the global market. Global giants like China and India will only be increasing their energy use, and so in many ways the sky is the limit as long as they can get a pipeline out of Alberta to the west coast. If that happens, we will be looking at a boom larger than anything we've seen before.

The east coast pipeline that TCPL is working on, could also provide petroleum sales outside of North America.

Originally Posted by DizzyEdge

One thing that I am surprised I rarely read in the paper is the future of Alberta's O&G economy. With gas prices being so low for so long (and with US shale gas doesn't seem like it will be going up anytime soon), and with occasional reports on how the US might be an oil exporter in the new few years (or maybe this year: http://online.wsj.com/news/articles/...78231430738684 ), you'd think it would be a sky is falling scenario. All you hear though is how our oil is discounted so we aren't making as much money as we like. Anyone care to comment on what the industry outlook actual is?