KITCHENER, ONTARIO -- (Marketwire) -- 03/01/13 -- The next three years will bring 13,000 new jobs to Kitchener-Waterloo-Cambridge, according to a new report released today by BMO Economics.
The report on the region is the first in a series of economic, housing and business overviews for various cities and regions across Canada that will be published by BMO throughout this year.
"The diversified Kitchener-Waterloo-Cambridge economy continues to perform relatively well," said Robert Kavcic, Senior Economist, BMO Capital Markets. "A number of measures show that the region's economy is outperforming both the Ontario average and its peers in southwestern Ontario."
Mr. Kavcic noted that better U.S. economic momentum in the second half of the year should lend support to the local manufacturing sector. "Looking out over the medium term, the region will likely see more than 13,000 jobs created by the end of 2016, pulling the unemployment rate down to 6 per cent - a full percentage point below the Ontario average."
"The Kitchener-Waterloo-Cambridge economy continues to perform well, due in part to businesses driving investment in their operations and overall expansion," said Janet Peddigrew, District Vice-President, Mid Western Ontario, BMO Bank of Montreal. "Local businesses are driving ahead and making important investments in new equipment, in expanding their operations and in hiring people and they tell us they will continue to do so. BMO is open for business, and we're ready to help local businesses get access to the capital they need to grow."
The report, released today, revealed:
Employment and Construction
-- Employment grew at a moderate 1.0 per cent in 2012, outpacing the provincial average.-- Construction activity has cooled after a period of above-average government stimulus spending. However long-term construction of the $818 million LRT line connecting Cambridge, Kitchener and Waterloo will boost activity.-- Condos have taken on a much more prominent role than singles in recent years - there are currently just over 2,000 apartment units under construction versus just 282 single-detached homes.
-- Real GDP is expected to expand a modest 1.7 per cent in 2013, but momentum should pick up later in the year once growth south of the border begins to run at 3 per cent.-- Stronger U.S. economic momentum in the second half of 2012 should lend support to the manufacturing industry.-- Recent announcements point to continued growth in the manufacturing sector. For example, Toyota is investing $100 million and is expected to hire 400 employees to expand its Lexus plant in Cambridge. A strong Japanese yen and government funding helped spur the decision.
The full report is available upon request.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at January 31, 2013, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.
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