Manufacturers in Ontario should be given a place to grow as well

At the inaugural North American Manufacturing Conference held in Washington recently, a delegation of Canadian companies got a startling reminder of the competitive reality our country is facing.

Mexico’s undersecretary of trade and industry shared how his government is going full-steam ahead to reshore manufacturing to our continent, opening as many as 50 new industrial parks for companies to settle in this year alone.

Meanwhile, in Canada, our ambitions are more modest. With industrial land vacancy sitting at below one per cent in Ontario, manufacturers are dealing with the hurdle of rising real estate costs and encroachments on already scarce lands. Key economic assets with proximity to water and large population centres like the Toronto and Hamilton port lands sit underused.

This backdrop has stirred concerns within the manufacturing community regarding recent changes to the provincial policy statement, which sets the rules for land-use planning in Ontario. Of particular concern is the removal of protections for provincially significant employment zones.

For those less familiar, significant employment zones were designated by the Ontario government in 2019 to identify and protect areas that are critical to the province’s economy and competitiveness. These areas are strategically located near major transportation corridors and infrastructure, have a high concentration of employment and economic output, and offer development potential for future job creation.

 

 

 

Any proposed change to these zones needed to be approved by the minister of Municipal Affairs and Housing. This policy ensured that these employment zones would be protected from inappropriate conversion and land speculation that could undermine the province’s long-term economic growth and prosperity.

However, the draft Provincial Planning Statement published this past spring removed this requirement. If confirmed, municipalities will be able to convert lands within significant employment zones without provincial oversight or approval.

We firmly believe that if this change is confirmed, it will have negative consequences for Ontario’s economy and competitiveness. It will create uncertainty and inconsistency in land use planning across the province, as different municipalities may have different criteria and processes for converting employment lands. It will also reduce the supply and availability of lands for industrial and commercial development, which are already scarce and in high demand in many parts of the province. This will increase land prices and rents, discourage business investment and expansion, and limit job creation opportunities.

More fundamentally, the removal of these significant employment lands undermines the province’s efforts to attract and retain businesses in key sectors such as manufacturing, logistics, innovation and clean technology. These sectors require large areas of land with access to transportation and infrastructure networks, as well as a stable and predictable regulatory environment. We don’t believe this is consistent with the strong political support for manufacturing that we have seen from Premier Doug Ford.

 

There is broad consensus in the business community that changes must be made to the Provincial Planning Statement. Earlier this week, the Toronto Region Board of Trade unveiled its ‘Race for Space’ report, championing the restoration of provincially significant employment zones. The report also emphasizes the need to formalize buffers and transition zones for industrial lands, alongside the creation of regional inventory for employments lands. Canadian Manufacturers & Exporters fully supports these recommendations, which will provide the certainty needed to intensify residential and employment areas at the same time.

We believe both are essential for maintaining Ontario’s economic competitiveness and resilience. If we genuinely aspire to position Canada as a leader in the North American reshoring movement, this must be an integral part of our strategy.

Dennis Darby is president and CEO of Canadian Manufacturers & Exporters, an association that represents more than 2,500 members across Canada.

 

 

This article was reported by The Star