Calgary’s economy is vibrant and diverse anchored by various industries. From the energy sector, which has long been the backbone of Calgary’s wealth, to technology and agribusiness, the city demonstrates a compelling blend of tradition and innovation.
We will discuss agribusiness, aerospace, technology sector, business services, health industry, transportation and logistics, construction, financial industry, food and beverage sector, and more. Our goal is to help you gain insight into the dynamics that drive growth and diversity in the city’s economy. This narrative not only sheds light on established sectors but also showcases Calgary’s commitment to embracing new opportunities in realms such as environmental sustainability and digital innovation, positioning it as a leader among Canadian cities.
Energy Industry
The Foundation of Calgary’s Economy
Calgary’s energy sector has long been the cornerstone of its economic strength, driven by its vast reserves of oil and natural gas. As Canada’s largest oil and natural gas producer, Alberta, and by extension Calgary, hosts the headquarters of nearly every major company in the energy-value chain. This robust foundation is not only a testament to the region’s rich natural resources but also to its longstanding expertise in energy production, which includes traditional methods and the integration of innovative technologies aimed at reducing carbon emissions.
Investment in Renewable and Traditional Energy Sources
The energy industry in Calgary is witnessing significant transformations with substantial investments flowing into both traditional energy and renewable sources. The province’s commitment to becoming a leader in the global energy transition is evidenced by its development of the largest solar farm in Canada, which, upon completion, will power 100,000 homes. Calgary’s energy companies are at the forefront of advancing technologies such as hydraulic fracturing, thermal oil sands production, and pipeline integrity. These advancements are significant as the industry moves towards a lower carbon economy, with a projected $5.8 billion investment in digital transformation by 2024, enhancing environmental performance and operational efficiency.
Impact on Local and National Economy
The energy industry’s influence extends beyond local economic benefits, impacting the national economy significantly. Despite facing economic adjustments and global market fluctuations, Calgary’s energy sector continues to be the largest export sector in Canada, with revenues reaching $110 billion and capital spending of $45 billion in 2017 alone. The ongoing collaboration among the largest oil sands producers through initiatives like the Pathways Alliance underscores the sector’s pivotal role in Canada’s pursuit of net-zero emissions by 2050. This collaborative effort not only aims to enhance sustainable practices within the industry but also ensures long-term energy stability and certainty, reinforcing Calgary’s position as a major player in the global energy market.
Agribusiness Sector
Innovation in Agriculture Technology
Alberta Innovates is spearheading transformative changes in the agri-food sector by funding technologies that enable sustainable and healthy food production. Key initiatives focus on reducing inputs and emissions in both crop and livestock sectors while boosting productivity. This includes biodiversity conservation and enhancing soil and water health. Advancements in data and digital technologies are pivotal, with farms expected to generate millions of data points daily by 2050, aiding in precise decision-making and operational efficiency. The application of these technologies automates various agricultural processes, making them more resilient and sustainable.
Role in Canada’s Food Supply Chain
The agribusiness sector in Calgary plays an important role in Canada’s food supply chain by ensuring the production of safe, quality, and accessible food. With a significant portion of food being lost or wasted globally, innovations in food processing and smart packaging are vital. These technologies help transform agricultural commodities into shelf-stable products without compromising quality, thereby optimizing the food system and enhancing food security.
Economic Contributions and Growth
Agribusiness in Alberta is a major economic driver, contributing significantly to the GDP, trade balance, and employment. Investments in agri-food innovation are accelerating, with a projected $246 million dedicated to digital transformation by 2024. This sector not only supports the provincial economy but also positions Alberta as a leader in global agri-food markets. The region’s strong agricultural base, coupled with rapid technology adoption and a skilled workforce, facilitates continuous growth and innovation in this sector.
Aerospace Industry
Emergence as a Centre of Excellence
Calgary’s strategic positioning as a hub for aerospace excellence is underscored by its hosting of one of Canada’s busiest airports and the headquarters for two major airlines. This city has become a key player in geospatial data collection and analysis, navigation and communication equipment manufacturing, and custom software development. The presence of 512 companies contributing $3.25 billion directly to Alberta’s GDP highlights the sector’s significant impact. Additionally, Calgary’s proximity to Canada’s largest beyond visual line of sight (BVLOS) testing site and the Canadian Armed Forces’ largest research centre further enhances its capabilities in the aerospace and defense sectors.
Key Players and Contributions to the Global Market
The aerospace industry in Calgary is not only supported by small and medium-sized enterprises but also by multinational defense and aerospace companies that have established operations in the city. These entities are integral to the local and global supply chains, with major indigenous firms like Bombardier, which accounts for about 45 percent of the industry’s sales, leading the charge. The industry’s robust export performance, which reached $1.2 billion in 2004, representing half of the industry’s total revenues, showcases its competitive position on the international stage.
Technological Advancements and Innovations
Calgary is at the forefront of several key technological advancements in aerospace, particularly in unmanned and autonomous systems. The SkySensus project, a collaborative effort involving Canadian UAVs and AERIUM Analytics, is pivotal in advancing the use of BVLOS technologies, significant for both commercial and defense applications. The Aerospace Innovation Hub (AIH), backed by a $3.9 million investment from the Opportunity Calgary Investment Fund, is set to revolutionize aerospace innovation by providing funding, business support, and prototyping equipment. This initiative is expected to support up to 180 companies and create 150 net-new skilled jobs, significantly impacting the aerospace industry in Calgary.
Technology Sector
Digital Transformation Across Industries
Calgary’s technology industry is rapidly evolving, with digital transformation (DX) emerging as the primary catalyst for innovation across multiple sectors. From energy to healthcare, businesses in Calgary are leveraging digital technologies to redefine their operational fields and enhance efficiency. The city is leading a significant digital transformation initiative with a projected investment of $20 billion across Alberta by 2024. This substantial financial commitment underscores the strategic importance of digital technologies in driving economic growth and competitiveness in the region.
Growth of Software and Hardware Developments
The technology sector in Calgary is not only expanding in terms of digital transformation but also through significant advancements in software and hardware developments. Companies such as Mphasis and Infosys have established regional headquarters in the city, planning to hire thousands and thereby significantly contributing to the local economy. Additionally, the construction of new facilities like the AWS data center highlights the growing demand for advanced technological infrastructure. This expansion is supported by a robust ecosystem that includes the Southern Alberta Institute of Technology (SAIT), which recently received a $30 million donation to advance technology education, further positioning Calgary as a leader in tech innovation.
Heavy civil construction project management and automation app developer, Vizzn, in also located in Calgary.
Investments in Technology and Innovation
Investment in Calgary’s technology sector is on a record-breaking trajectory. In recent years, the city has seen a surge in venture capital funding, with $647 million invested across 64 deals from 2021 to 2022. This trend is supported by the establishment of facilities like the Finger Food Advanced Technology Centre, which is set to create 200 full-time jobs by 2023 in various tech disciplines. Moreover, Calgary’s commitment to becoming a hub for fintech innovation is evidenced by the success of companies like Neo Financial, which reached a billion-dollar unicorn valuation in just three years. These investments are not only fostering a dynamic environment for tech companies but are also solidifying Calgary’s reputation as a global leader in technology and innovation.
Business Services
Supporting Local and International Businesses
Calgary’s business services sector thrives on a robust support system that fosters both local and international business growth. Initiatives such as the #SupportLocalYYC campaign and the virtual one-window approach to permitting have significantly streamlined the process for businesses at all stages. These efforts are complemented by the Business Improvement Areas (BIAs), which play a pivotal role in revitalizing neighborhoods and promoting economic development. Each BIA adds a unique local flavor, enhancing the city’s economy and making it an attractive place for international investors and companies looking to expand. Even niche business services such as digital marketing is lead by Matterhorn Business Solutions, a Calgary SEO agency.
Contribution to Economic Diversification
The business services sector in Calgary is instrumental in driving economic diversification. With a strategic focus on sectors like technology and clean tech, the city is moving beyond its traditional energy roots. Programs such as the Opportunity Calgary Investment Fund and the Strategic Innovation Fund are examples of how the city is investing in new industries to broaden its economic base. These initiatives not only foster innovation but also create job opportunities, thereby contributing to a more resilient economy.
Growth Trends and Future Outlook
Calgary’s business services sector shows promising growth trends, with significant investments in infrastructure and innovation. The city’s commitment to economic development is evident in its support for various sectors through funding and strategic partnerships. Looking ahead, Calgary is poised to maintain its growth trajectory, supported by a strong entrepreneurial spirit and ongoing investments in education and technology. The focus on building a globally connected city that encourages businesses to test and use technology and data signifies a future-oriented approach that is expected to continue driving the sector’s expansion.
Health Industry
Research and Development in Medical Sciences
Calgary’s health industry is distinguished by its dynamic research and development, particularly at institutions like the University of Calgary’s Cumming School of Medicine. This facility is renowned for its research in brain and mental health, chronic diseases, and cardiovascular sciences. The university’s strategic vision, Eyes High, emphasizes research leadership, propelling it into the top ranks of North American universities for new scientific insights. The school’s contribution to medical sciences is underscored by its involvement in over 21,000 scientific publications since 2013, covering critical areas such as neuroscience, engineering, and life sciences.
Collaborations with Educational Institutions
The synergy between Calgary’s healthcare sector and its educational institutions amplifies its impact on both local and global health sectors. For instance, the collaborative efforts between the University of Calgary and various educational and health organizations have fostered significant advancements in community health. Projects like the Campus Mental Health Strategy illustrate the university’s commitment to mental well-being, developing comprehensive programs that support students, faculty, and staff. Additionally, partnerships with global institutions, such as the Catholic University of Health and Applied Sciences in Tanzania, highlight Calgary’s role in international health education and research, improving maternal and child health outcomes significantly.
Economic and Social Impact
The health industry in Calgary not only advances medical science but also significantly impacts the economic and social fabric of the community. The sector employs a large number of professionals, with recent data indicating shifts in employment figures due to strategic health service restructurings and expansions. For example, Alberta Health Services’ initiative to fill rural healthcare shortages with a $160 million investment underscores the sector’s role in addressing provincial health needs. Moreover, the economic downturn has heightened the focus on mental health and community support services, illustrating the health sector’s critical role in societal well-being during challenging times.
The integration of these elements—research, education, and community impact—demonstrates Calgary’s health industry as a robust contributor to both the local economy and the global medical community.
Transportation and Logistics
Calgary as a Key Logistic Hub in Canada
Calgary’s strategic location and comprehensive transportation infrastructure make it a pivotal logistic hub in Canada. As Western Canada’s inland port, the city facilitates the movement of goods from the West Coast to Eastern Canada, leveraging its position intersected by major transportation routes like the Trans-Canada Highway and the CANAMEX corridor. With access to both Class 1 railways, Canadian Pacific Railway (CP) and Canadian National Railway (CN), and the Calgary International Airport, which is the fourth busiest in Canada, Calgary connects millions of customers across national and international fronts. This extensive network supports Calgary’s legacy in international energy and agriculture trade, making it a central point in Canada’s logistics environment.
Investments in Infrastructure
Significant investments have been made to enhance Calgary’s transportation and logistics infrastructure, ensuring it remains competitive and efficient. The city has seen the development of major projects such as the Green Line LRT, which is set to provide improved access to key industrial areas and the downtown core. Additionally, the rehabilitation of major bridges and the expansion of road networks are geared towards supporting the increasing demands of urban logistics. The investment in the electrification of transit buses with a federal contribution of over $325 million highlights Calgary’s commitment to sustainable transportation solutions. These projects not only extend the lifespan of important infrastructure but also improve the overall efficiency of goods movement across the city.
Impact on Trade and Commerce
The robust transportation and logistics sector in Calgary significantly impacts trade and commerce, both locally and globally. The city’s facilities, including two intermodal rail terminals and an expanded international airport, position it as one of Canada’s biggest inland ports and a designated Foreign Trade Zone. This status enhances the fluidity and velocity of moving goods, thereby boosting trade efficiencies. Calgary’s role as a distribution center is further underscored by its ability to reach 50 million consumers within a one-day trip via ground transportation, facilitating rapid delivery and distribution across North America. The strategic location and advanced logistics capabilities of Calgary not only support its own economic growth but also contribute to the broader Canadian economy by ensuring a reliable supply chain and fostering international trade connections.
Construction Sector
Role in City’s Development and Investment
Calgary’s construction sector is experiencing a significant upward trend, with a reported $1.43 billion in construction value for Q3 2022 alone, marking a 38% increase from the previous quarter. This growth is not just a reflection of economic recovery but also an indicator of the city’s ongoing commitment to development and innovation. The construction industry plays a major role in shaping Calgary’s infrastructure and urban landscape, supporting various sectors including residential, commercial, and cultural projects.
Significant investments such as the transformation of Arts Commons and Olympic Plaza, supported by a $103 million funding from the Government of Alberta, underscore the sector’s impact on enhancing community spaces and cultural amenities. These projects not only boost the local economy but also create numerous construction jobs, contributing to the city’s vibrant cultural fabric.
Calgary is home to Alberta’s largest civil engineering contractor, Borger Group.
Challenges and Opportunities
The construction sector in Calgary faces several challenges, including labor shortages and supply chain disruptions. The Calgary Construction Association highlights the resilience of the industry amidst these challenges, with ongoing projects and high inspection volumes evidencing robust activity. Labor shortages, particularly, pose a significant challenge as the industry competes for skilled workers amidst a tight labor market, exacerbated by an aging workforce and immigration processing delays.
Opportunities for growth remain substantial, driven by technological advancements and demographic shifts. The adoption of innovative construction technologies such as Building Information Modeling (BIM), prefabrication, and sustainable building practices offers avenues for enhancing efficiency and sustainability. These innovations not only help tackle the challenges but also position Calgary as a leader in modern construction practices.
Sustainable and Green Construction Trends
Calgary is committed to sustainable development, as evidenced by the Sustainable Building Policy, which mandates a 40% reduction in greenhouse gas emissions for city-funded buildings compared to standard constructions. This policy reflects a broader commitment to environmental stewardship, integrating sustainability into the lifecycle of buildings from planning to maintenance.
The construction industry is increasingly adopting green building materials and technologies. For instance, Lafarge Canada is leading the way by incorporating recycled steel and low-impact concrete, significantly reducing the environmental footprint of new constructions. The use of sustainable asphalt and energy-efficient building practices further demonstrate Calgary’s dedication to sustainable construction.
Moreover, the city is fostering innovation through various pilot projects aimed at achieving low-carbon and net-zero emissions in the building sector. These initiatives are helpful in reducing the overall carbon footprint and enhancing the sustainability of Calgary’s urban development.
By integrating these sustainable practices, Calgary’s construction sector not only addresses immediate urban needs but also ensures a resilient and environmentally friendly future for the city.
Financial Industry
Calgary’s Financial Services
Calgary is recognized as a burgeoning hub for financial services, particularly in the fintech sector. Home to 80% of Alberta’s fintech firms, the city boasts expertise across various niches including paytech, blockchain, cryptocurrency, wealthtech, insurtech, regtech, and more. This concentration of fintech firms has positioned Calgary as a leader in financial innovation in Canada. The city’s strong financial foundation is further highlighted by its prudent fiscal management, which includes low property tax rates, strong budgetary performance, and solid credit ratings from major agencies.
Fintech Innovations and Contributions
Calgary’s financial market is distinguished by significant fintech innovations and milestones. It was the first city in Canada to deploy biometric banking and to send a real-time payment internationally using blockchain technology. Additionally, Calgary pioneered the integration of a robot into customer service in financial services and was the first globally to conduct oil and gas royalty blockchain transactions. These achievements underscore the city’s role as a frontrunner in adopting and implementing cutting-edge financial technologies. Calgary’s fintech ecosystem is supported by over 150 fintech startups, 28 co-working spaces, and 45 incubators and accelerators, fostering a climate of innovation and growth.
Economic Impact and Investment Opportunities
The financial services sector in Calgary, particularly fintech, is a significant economic driver. With a projected digital transformation spend of $1.5 billion by 2024, the sector is leading the way in modernizing traditional industries such as energy, transportation, and agribusiness. The city’s economic strategy, bolstered by the Opportunity Calgary Investment Fund, supports projects that stimulate growth in targeted sectors, including financial services. This fund has already facilitated the creation or expansion of 809 companies and helped absorb significant amounts of office space, catalyzing further economic activity and job creation in the city. Additionally, Calgary’s strategic initiatives have attracted substantial investments, such as the opening of Mphasis’s regional headquarters, which plans to add hundreds of jobs in the city, demonstrating the vibrant opportunities available in Calgary’s financial services sector.
Food and Beverage Sector
Local Production and National Distribution
Calgary’s food and beverage sector is significantly strengthened by a robust network of local production and national distribution channels. A variety of direct-to-consumer (D2C) and direct-to-intermediary (D2I) market channels, such as farmers’ markets, u-pick, on-farm stores, and community supported agriculture (CSA), enable local producers to sell their products across Alberta. This network not only supports local farmers but also ensures that fresh, local food reaches consumers efficiently, bolstering the regional economy and reducing environmental impacts associated with long-distance transportation.
Growth of the Industry
The food and beverage industry in Calgary has seen substantial growth, particularly in the niche markets of gourmet and specialty foods. This growth is driven by increasing consumer demand for high-value, locally produced, and sustainable food options. Calgary’s food manufacturing sector, which is the largest of the 21 manufacturing sub-sectors in the city, employs a significant labor force and is pivotal in adding value to raw agricultural products. The presence of approximately 113 food processors in Calgary, including 27-30 niche processors, underscores the city’s capacity to meet diverse consumer preferences and maintain a strong foothold in the food and beverage market.
Trends in Consumption and Sustainability
In recent years, there has been a marked shift towards sustainability and responsible consumption within Calgary’s food and beverage sector. Consumers are increasingly demanding transparency in food production and labeling, with a strong preference for products that are natural, minimally processed, and ethically sourced. Innovations such as the introduction of biodegradable packaging materials and the reduction of food waste through smart meal planning and processing are reflective of the sector’s commitment to environmental stewardship. Additionally, the adoption of sustainable practices is not limited to production and packaging but extends to the retail environment where initiatives to reduce waste and enhance recycling efforts are becoming commonplace.
These trends are not only shaping consumer behavior but are also influencing local businesses to adopt more sustainable operations to meet the evolving demands of the market. The integration of these practices across the food and beverage sector in Calgary is setting a benchmark for sustainability and is likely to continue driving the industry’s growth and innovation.