Part 3 – Region of Peel

Peel’s Business Sector

Peel’s business sector remained strong in 2016, supported by sustained population growth and ongoing public investment in infrastructure (e.g. water and wastewater, road and transportation). The ongoing investment in infrastructure in Peel has allowed the Region to maintain its advantageous position as a choice destination for both residents and businesses. In 2016 Peel’s business sector comprised of 155,949 businesses, with little change in the number and distribution in the top businesses; and total business bankruptcies continued to decline to reach a multi-year low.

Business Establishments

In December 2016, a number of methodological changes were made in capturing business counts (business establishments) in Canada. According to Statistics Canada, this was “part of a large re-classification of units within industries. Over 51,000 Holding Companies were recoded to new industries. Approximately 10,000 units were reclassified to Finance and Insurance and 35,000 had their NAICS removed and are now in the unclassified category.

Additionally, approximately 26,000 previously unclassified businesses were recoded to Finance and Insurance. In total, there were over 36,000 units reclassified to Finance and Insurance including former Holding Companies and unclassified businesses.Finally, over 9,700 units were reclassified from Agriculture to other sectors, most (7,700) in Rental and Leasing. 7,700 former unclassified businesses were also recoded to Rental and leasing”[9].The below analysis should be interpreted with the stated changes in mind.

In 2016, there were 155,949 business establishments Peel Region. This was made up of 135,756 classified businesses and 20,193 unclassified[10] businesses(see figure 18).  Between 2015 and 2016, the number of unclassified business establishment moved from 18,919 businesses to 20,193 businesses. Over the same period, the proportion of total businesses in Peel categorized as unclassified rose by 0.4 percentage points to 12.9 per cent

Classified business establishments

In 2016, classified business establishments in Peel stood 135,756 businesses compared with the 132,106 businesses recorded in December 2015. When the classified businesses were viewed by “with” and “without” employees, there were 85,964 businesses without employees and 49,746 businesses with registered employees.

There were more business establishments in both goods producing and service sectors in December 2016(see figure 19)relative to a year earlier. In the goods producing sector there were 18,656 business establishments, compared with 18,657 business establishments in December 2015. In services, there were 117,099 businesses in December 2016, compared with 113,911 businesses in December 2015

Among goods producing industries, the construction sector remained the largest in terms of business establishments, in 2016. There was an additional of 464 businesses in the construction sector expanding Peel’s construction businesses to 13,157 business establishments. There were an additional 54 manufacturing businesses to push total businesses in the sector to 4,813 businesses in December 2016. There were 49 less business establishments in Peel’s agricultural sector in December 2016, but this was a sector from which businesses were reclassified to other sectors. The reclassification may have been influential in this change in Peel. Total businesses in the mining, gas and utilities also went down, moving from 166 businesses in December 2015 to 159 businesses in December 2016.

Out of the fifteen service sub-sectors, ten recorded more business establishments in December 2016 when compared with December 2015. The increasing trend observed in the transportation and warehousing continued in 2016 when an additional 1,951 businesses were added to the sector to reach a total of 26,897 business establishments in December 2016. The public sector 2 businesses establishments in Peel between December 2015 and December 2016.

here were notable declines in business establishments in some service sub-sectors, but these were mainly in sectors which were impacted by methodological changes rather than an exit of businesses from these sectors

The proportion of total business establishments accounted for by the service sector in 2016 was 86.3 per cent, a comparable proportion to the 86.2 per cent in December 2015. Similarly, the proportion of total businesses accounted for by the goods producing sector moved from 13.8 per cent in December 2015 to 13.7 per cent in December 2016(see figure 20). While the reduction in the number of business establishments in agriculture may have influenced the slight reduction in the share of total business establishment in the goods producing sector, this shift is consistent with the long term shift towards the services observed in the business sector, as well as other areas of the economy such as the labour market.

Since December 2009, the transportation and warehousing sector has emerged as a leading sector with the largest proportion of business establishments in Peel. This trend continued in 2016 as its proportion increased from 18.9 per cent in December 2015 to 19.8 per cent in December 2016. Professional, scientific and technical services accounted for the second largest proportion of total businesses since 2009, increasing from 14.7 per cent in 2015 to 15.0 per cent in 2016

Top businesses in Peel

There was little change to the top business landscape in Peel in 2016. The top 5 businesses (measured by number of employees) in the City of Brampton and the Town of Caledon remained the same. In Brampton, the top businesses were Rogers Communication (5,200 employees), Chrysler Canada (3,437 employees), Loblaw Company Limited (3,200 employees), Maple Lodge Farms (1,800 employees) and Canadian Tire Corporation distribution center (1,670 employees). Two companies became a part of the top 10 businesses in Brampton. These were Performance Auto Group (771 employees) and Triple M Metal LP (600 employees). Amazon also joined the more extensive list of businesses in the City of Brampton with 320 employees. In Caledon, the top businesses were Husky Injection Molding Systems Limited (1,300 employees), Mars Canada Inc. (420 employees) and Town of Caledon (390 employees).

However, in the City of Mississauga, the number of businesses that are listed as employers of 1,000+ employees in March 2016 registered a decrease from 32 businesses in in the previous year to 28 businesses[11]. This was the net result of four new businesses entering the 1,000+ employee group; while eight businesses exited. Of those eight businesses that left this group of top employers, five were no longer classified as large employers (1,000+, 500+, or 300+ employees) in 2015.

Business bankruptcy

In 2016, Peel’s business bankruptcy fell to a multi-year low

In 2016, and for the eighth consecutive year, total business bankruptcy in the Region of Peel declined(see figure 22). A total of 66 business bankruptcies were recorded in Peel Region in 2016, down 19.5 per cent from the 82 cases registered in 2015. Since peaking at 282 cases in 2008, the number of business bankruptcies has shown sustained annual declines to reach a low of 66 cases observed in 2016.

The 66 cases of bankruptcies which occurred in Peel Region were distributed as follows:

  • City of Mississauga: 48 cases, up from 38 cases recorded in 2015;
  • City of Brampton: 12 cases, down from 37 cases in 2015; and
  • Town of Caledon: 6 cases, down from 7 cases in 2015.

The declines in the City of Brampton and the Town of Caledon outweighed the increase in the City of Mississauga to lay the basis for the overall decline observed in Peel.

Since the decline in Peel’s business bankruptcies started in 2009, the annual decreases have been fairly significant, varying from -33.7 per cent in 2010 to -5.7 per cent registered in 2015. The -19.5 per cent change observed in 2016 was just above the average annual decline of -15.5 per cent observed in the previous seven years(see figure 23).

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