The Greater Halifax Partnership released the findings of their Head and Regional Office (HRO) Report. This presentation illustrates why HROs are viable for the city of Halifax.

2. EMPOLYMENT CHARACTERISTICS
IN THE
BEGINNING

3. WHY STUDY
HEAD AND REGIONAL OFFICES
 Better understand the role of HROs in the
economy
 GDP, income, jobs and supply chain
 Impact on quality of life
 Disproportionate impact?
 HROs behavior during economic cycles
 Find ways to retain and grow HROs

4. IMPACT OF THE INSURANCE INDUSTRY

5. HRO INSURANCE

6. HRO INSURANCE

7. EMPOLYMENT CHARACTERISTICS
HALIFAX HRO
IMPACT

8. Presented by Funders

9. OBJECTIVES
 A blueprint to attract, retain and grow HROs
 Develop a value proposition for HRO growth
 How do we best market Halifax for HROs
 Raise awareness about HRO impact
 Develop an approach for HRO outreach

10. APPROACH
 Literature review
 Trends
 Benchmarking
 Best Practices
 Impact analysis

11. EMPOLYMENT CHARACTERISTICS
HRO
PROFILE

12. 8.2
CANADA
7.1
BC 10.7
AB
8.9
SK
8.7
MB
8.5
ON
7.21
QC
7.1
NB
8.2
NS
7.0
NL
HEAD OFFICES IN CANADA
Ratio of Head Offices per 100,000 Population
Source: Statistics Canada, Annual Head Office Survey, 2012, CANSIM Table 528-0001

13. HOW ARE OTHERS BUILDING THEIR HRO BASE?
 Mississauga
 Building existing relationships
 Calgary
 “Western Canada’s Head Office Centre”
 Montréal
 Listed head offices as a priority sector
 British Columbia
 International Head Office Attraction Strategy

14. OTHER JURISDICTIONS PAYING ATTENTION TO
HEAD OFFICES

15. HEAD OFFICE TRENDS

16. EMPOLYMENT CHARACTERISTICS
IMPACTS
ECONOMIC

17. APPROACH
 Impact Analysis
 61 company cross section
 32 interviews, 19 third party data
 Study included 24 of the 78 head offices in
NS
 Difficult to determine number of regional
offices

18. THE HRO SECTOR IS 3 TO 5 TIMES
LARGER THAN THE CROSS SECTION
USED IN THIS STUDY
3x
5x
To

19. Source: Hoovers, InfoCanada, Greater Halifax Partnership, 2013
30%
MANUFACTURING
16%
FINANCE,
INSURANCE, AND
REAL ESTATE
21%
PROFESSIONAL,
SCIENTIFIC, AND
TECHNICAL SERVICES
8% INFORMATION
& CULTURAL INDUSTRIES
7% CONSTRUCTION
5%
ADMINISTRATIVE & SUPPORT,
WASTE
MANAGEMENT & REMEDIATION
3% UTILITIES
3%
MINING, QUARRYING, &
SUPPORT
3%
TRANSPORTATION &
WAREHOUSING
2% HEALTH CARE & SOCIAL ASSISTANCE
2% RETAIL TRADE
HEAD & REGIONAL OFFICES BY MAJOR SECTOR, HALIFAX

20. Source: Hoovers, InfoCanada, Greater Halifax Partnership, 2013
PROFESSIONAL, SCIENTIFIC
& TECHNICAL SERVICES
MANUFACTURI
NG
FINANCE, INSURANCE & REAL ESTATE
OTHER
(MINING, CONSTRUCTION,
RETAIL, HEALTH CARE)
INFORMATION & CULTURAL INDUSTRIES
TRANSPORTATION & WAREHOUSING
HRO EMPLOYMENT BY MAJOR SECTOR, HALIFAX
29%
24%18%
13%
11%
6%

21. 13,460
SPINOF
F
Source: Hoovers, InfoCanada, Greater Halifax Partnership, 2013
IMPACTS ON THE NOVA SCOTIA ECONOMY
PERSON-YEARS
OF
EMPLOYME
NT
12,151
DIREC
T
TOTAL
25,611
HOUSEHOLD
INCOME
$574.5
MILLION
DIRECT
$744.1
MILLIO
N
SPINOF
F
TOTAL
$1.3 BILLION

22. POTENTIAL HOUSEHOLD SPENDING IN NOVA SCOTIA
MORTGAGES
$77.5 M
RENT
$43.9 M
UTILITIES
$56.2 M
HOUSEHOLD MAINTENANCE
$8.5 M
BUYING CARS, VANS, TRUCKS
$83.7 M

23. POTENTIAL HOUSEHOLD SPENDING IN NOVA SCOTIA
RESTAURANT MEALS
$38.2 M
STORE-BOUGHT
FOOD
$101.4 M
TOTAL
$139.6 M
FOOD SPENDING
CHARITABLE
CONTRIBUTIONS
$11.9 M
ENTERTAINMENT
$11.9 M
RETAIL ITEMS
$92 M

24. Source: Economics and Statistics Division, Nova Scotia Department of Finance, 2014
$1.1
BILLION
SPINOFF
GROSS
DOMESTIC
PRODUCT
$1.3
BILLION
DIRECT
TOTAL
$2.4
BILLION
FEDERAL
$192.7
MILLION
PROVINCIAL
$193.9
MILLION
GDP IMPACT TAX CONTRIBUTION

25. Source: Hoovers, InfoCanada, Greater Halifax Partnership, 2013
DIRECT GDP PER WORKER
TOTAL NOVA SCOTIA ECONOMY
(2012)
$93,350
SAMPLED HROs IN HALIFAX (2013)
$109,760
AVERAGE WAGES (2012)
ALL INDUSTRY AVERAGE, NOVA
SCOTIA
$790
HEAD OFFICE OPERATIONS,
HALIFAX
$1,083

26. CHARITABLE GIVING & COMMUNITY DEVELOPMENT
Community
Development
Participation
Employee
Giving
Corporate
Giving

27. EMPOLYMENT CHARACTERISTICS
OBSERVATIONS
KEY

28. “Head Offices are precious jewels in our economy.
They provide high paid career development opportunities,
job security, earnings as well as build supplier
communities.
Head offices build wealth and growth that stays here,
in Nova Scotia.”
Steve Parker, Chairman & CEO, CCL Group

29. Source: National Household Survey 2011
HALIFAX’S SHARE OF N.S. PRIVATE SECTOR MANAGERS
SENIOR
MANAGERS IN
FINANCIAL,
COMMUNICATION
S, & OTHER
BUSINESS
SERVICES
72%
61%
51%SENIOR
MANAGEMENT
OCCUPATIONS ALL
MANAGEMENT
OCCUPATIONS

30. CHOOSING A HEAD OFFICE LOCATION
Auther D. Little

31. OBSERVATIONS
 11 jobs for every additional $million in GDP
 M&A means HROs are always disappearing
 Creating new head offices means helping a
handful of existing companies grow
 HROs are heavily integrated into the Halifax
economy
 HROs are inter-dependent
 HROs are a source of community pride

32. WHAT TO WORK ON
 Quality of place
 Tax and regulation
 Support services (ICT, legal, PR, accounting)
 Transportation links
 Community needs to engage with HROs
 HROs need to engage with community

34. 34
34

44. THANK
YOU!