Economic Base Analysis - Investment Focused Strategy
Collingwood 2000/2005

Significant Findings from the Analysis

As noted previously the results of the Economic Base Analysis provide a basis for discussions about targeting Collingwood’s economic development programs. This report will be used as a background reference for subsequent discussions with stakeholders in the community, both in Roundtable discussions planned for this fall and focus group panels.

To help focus these discussions in this and the following sections we have highlighted what we believe to be the most significant findings from the analysis.

Significant Finding 1

Manufacturing employment is declining relative to the province and should be designated a "High Priority Retention Target."

The most disturbing result of the analysis is the drop recorded in Collingwood’s largest employer group, the Manufacturing sector. According to our estimates, total employment in manufacturing dropped approximately 142 jobs from 2000. This triggered a drop in the Location Quotient from LQ 142 in 2000 to LQ 122 in 2004.

Considered in the context of a buoyant provincial economy this has the equivalent effect of losing 209 jobs in the local economy.

Significant Finding 2

The "Knowledge-Based Services" (Finance & Insurance, Professional & Technical and Business Services) are emerging as growth industries for Collingwood.

Although currently under-represented in Collingwood “Knowledge-Based Services” all posted positive numbers in the Shift/Share Analysis and could be considered emerging industries in Collingwood’s economy.

Knowledge Based Services in Collingwood

• Finance, Insurance & Real Estate

• Professional, Scientific & Technical Services

• Business, Building and Other Services

• Information, Culture & Recreation Services

This is significant because these industries not only attract professionals and other highly skilled workers, in many cases they export services to customers outside the community, making them “Basic” industries which bring new wealth to the community, thereby contributing to the overall growth and development of the entire economy

Significant Finding 3

Tourism is Collingwood's dominant industry and it continues to drive growth in other sectors of the economy.

It should come as no surprise that Tourism (Accommodation & Food Services) posted the strongest relative growth in Collingwood with a DSE of 399 and an actual increase in employment of 494 jobs.

Tourism is also a “Basic” industry bringing new wealth to the community from outside the local economy, stimulating growth and development in virtually every other sector of the local economy.

We believe that growth in the Tourism sector in Collingwood is now self generating (growth stimulating additional growth) and that no further stimulus is required.

The strength of the Construction is obviously a result of the overall growth that Collingwood is experiencing. The construction sector by itself does not generate growth. It responds to growth in other businesses which require new buildings to accommodate larger operations as well as the growing demand for new housing.

The Wholesale & Retail Trade sector had an absolute increase in employment of 89 new jobs during the study period however growth in retailing across the province was stronger than that in Collingwood resulting in a negative DES - 97. (This is an example of how a Shift/Share Analysis measures “relative” growth and why it is such a useful tool for economic development professionals seeking to understand the dynamics of their local economy.)

As Collingwood continues to grow and achieves a critical size, the economy appears to be shifting from a dependence on manufacturing (which is still the largest employer in Collingwood) to a growing reliance on business and professional services.

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