Chelsea Peet, Consul and Senior Economic Officer, Ontario Trade & Invest San Francisco; Aaron Pinto, Consul and Senior Economic Officer, New York.
We are honoured to sit down this month with Ontario's lead economic representatives for California and New York, Consuls and Senior Economic Officers, Ms. Chelsea Peet and Mr. Aaron Pinto, to take a look back at 2021, and to look ahead at what’s to come for Ontario in 2022.
To refresh our readers, can you provide an overview of Ontario’s size, economic footprint, key sectors and strengths?
Aaron: Ontario is incredibly vast. From a geographical standpoint, we’re Canada’s second largest province, covering more than 415,000 square miles in the heart of North America – to put that into perspective, that’s an area more than seven times larger than New York and nearly triple the size of California.
The sheer size of Ontario complements the province’s business might. Quite simply, we are Canada’s economic powerhouse. We generate nearly 40% of the national GDP – over $630 billion USD – the ninth largest subnational economy in Canada and the U.S. This fundamentally means a prosperous Ontario is a prosperous Canada and in-turn a prosperous United States.
The province is home to a highly-diversified economy, geared towards the future. We’re paving the path forward, from artificial intelligence to quantum, cybersecurity to blockchain, digital health to genomics, cleantech to agtech, and autotech to electric vehicles. The common thread across all these sectors is Ontario’s people.
Ontario is special because it’s where new innovations developed by highly skilled, talented homegrown and transplanted people meet the muscle of our strong manufacturing might and robust industrial economy.
What are Ontario’s economic ties with the United States, and New York and California in particular, and how close are our economies linked?
Chelsea: As the MAPLE community well knows, the Canada-U.S. partnership is tremendously important. We are bound by our shared geography, history, values, common interests, as well as deep people-to-people and economic ties. Quite simply, we do so much together.
"Ontario is a significant partner to more than half of the states in the U.S. As just an example, here in California, we have over 150 Ontario-owned companies operating. In 2021, Ontario-California two-way trade totaled over $27.9 billion USD."
Ontario is a significant partner to more than half of the states in the U.S. As just an example, here in California, we have over 150 Ontario-owned companies operating, including Shopify, BlackBerry, and many others that are well represented in the MAPLE community. In 2021, Ontario-California two-way trade totaled over $27.9 billion USD.
Aaron: The tale is similar on the East Coast. For example, Ontario is New York’s number one customer. We have 500 Ontario-owned companies operating in the Northeast that employ thousands of Americans. We export more to the region than to the UK, China and Mexico combined. In 2021, Ontario exports to Northeastern U.S. states totaled $30 billion USD.
We also like to say that throughout history, it’s clear that the U.S. couldn’t get enough of us – our Southern neighbor actually has at least a dozen places named “Ontario,” including in NY and CA – the highest in the world! We’re flattered!
In brief, how was 2021 for your SF/NY offices? What lies ahead in 2022?
Aaron: Our New York and San Francisco offices were keeping busy in 2021.
In New York, I was thrilled to join our Ontario office, leading our trade and investment team which covers all of the U.S. northeast. Over the last year, we saw more FDI activity pick up, and we engaged with a diverse range of U.S. companies in sectors ranging from sportstech to decentralized finance to computational pathology. We even met a few in-person! Working with partners, we facilitated visits, including bringing an Ontario delegation to the Vermont Chamber of Commerce’s virtual Manufacturing Summit, and flew the Ontario flag at events like TechDay NY’s Founders Summit.
Chelsea: And on the West Coast, our office was similarly engaged – hosting our annual Autotech program, as well as a number of pitch sessions with tech scouts and venture capital firms. We too supported virtual visits, including to the Collision tech conference in Toronto and a visit by officials interested in learning about Ontario’s economic and environment programs. Despite the predominantly virtual nature of work this last year, we’ve continued to be busy connecting with companies in the U.S. and in Ontario.
And we have lots to look forward to in 2022. From our autotech program, to events like BIO and Collision, we’re looking forward to more in-person engagements this year!
Aaron: In New York, we will focus on growing our locally-engaged team, facilitate trade-related initiatives for Ontario tech and life sciences companies, as well as continue to build our local network in the Northeast. We are currently working with local stakeholders to explore programming on medtech, fintech and manufacturing, as well as with angel investors.
The pandemic has dominated the international discourse over the past 24 months, how is Ontario doing?
Aaron: Ontario, like many other jurisdictions in Canada and beyond, was hit hard by COVID-19 . The pandemic resulted in many difficult choices to prevent our healthcare system from being overwhelmed.
Despite hardships, uncertainty and loss, Ontarians – like many - demonstrated incredible determination and spirit. Thanks to collective efforts, 85% of all eligible Ontarians, over five years of age, are fully vaccinated today.
From a government standpoint, Ontario continues to lay the foundation for a strong economic recovery. Ontario has put programs and initiatives in place to help businesses weather the storm. From the Small Business Relief Grant, to targeted tax relief measures, investments in regional development opportunities, and helping businesses diversify through digitizing and job training, the province has ensured that these programs and measures support our economic recovery as we continue to face challenges resulting from COVID-19.
With our reopening underway, we remain hopeful that 2022 will see even greater recovery for our province, and our partners in the U.S.
What are some of Ontario’s key priorities over the next 12-24 months?
Chelsea: From an economic development standpoint, Ontario is forging ahead to support innovation, recovery and growth across a range of sectors.
Let’s look at the auto sector – which is a key priority for our office in California. Ontario just announced Phase 2 of itsDriving Prosperity Strategy in November 2021, which included significant investments like the creation of the Ontario Vehicle Innovation Network (OVIN) and the establishment of the Automotive Battery Office. Our province continues to nurture an ecosystem where companies can thrive – and it’s working. Just in the past year or so, Ontario has seen big investments from major companies like Ford, GM, and BlackBerry QNX – almost $5 billion USD.
"Being Canada’s largest life sciences jurisdiction, the sector is abuzz with activity. In recent months, we’ve seen major investments from heavyweights including Sanofi and Roche. I’m excited by the new partnership between CCRM and McMaster Innovation Park to build a new biomanufacturing campus in Ontario."
Aaron: Ontario is also a titan in life sciences. Being Canada’s largest life sciences jurisdiction, the sector is abuzz with activity. In recent months, we’ve seen major investments from heavyweights including Sanofi and Roche. I’m excited by the new partnership between CCRM and McMaster Innovation Park to build a new biomanufacturing campus in Ontario. To further unlock the sector’s potential, our province is working with partners to develop a Life Sciences Strategy and continues to make targeted investments to grow our ecosystem. There’s lots to look forward to this year!
How is Ontario’s tech/start-up community doing and what is on the horizon for the sector?
Chelsea: Despite challenges brought about by the pandemic, Ontario’s tech and start-up community remain strong heading into 2022. The province boasts over 35,000 high-tech businesses, which employ over 323,000 IT workers. And that’s really just the start.
Aaron: A spirit of innovation runs through the core of Ontario’s start-up community. In 2021, the Conference Board of Canada gave Ontario the only A+ grade for “Entrepreneurial Ambition” in Canada. Ontario was ranked 9th globally for Innovation among 16 selected OECD countries after Switzerland, the U.S., and a handful of European countries.
"This entrepreneurial spirit is evident when you take a look at venture capital investments in Ontario-based companies. Since 2013, 985 companies have received a combined $17.6 billion USD in venture capital. Through Q3 of 2021 alone, Ontario saw 218 deals, with a combined value of $4.8 billion USD."
Chelsea: This entrepreneurial spirit is evident when you take a look at venture capital investments in Ontario-based companies. Since 2013, 985 companies have received a combined $17.6 billion USD in venture capital. Through Q3 of 2021 alone, Ontario saw 218 deals, with a combined value of $4.8 billion USD.
Are there any start-ups our readers should be familiar with?
Aaron: Great question! As we’ve shared, Ontario is home to some phenomenal start-ups. Three that come to mind, that the MAPLE membership may have heard about recently, are 1Password, League, and Anaergia.
1Password, based in Toronto, is a password manager trusted by more than 100,000 businesses. To kickoff 2022 with a bang, 1Password announced that they raised a $620 million USD round, boosting its valuation to $6.8 billion USD. That round represents the largest funding round for a Canadian company.
To close out 2021, League, a Platform-as-a-Service healthcare start-up, became Canada’s newest unicorn after raising a $70 million USD round to push its valuation to $850 million USD.
2021 was a year for exits as well. Burlington-based cleantech company Anaergia completed their VC-backed IPO last summer. In June, Anaergia was listed on the Toronto Stock Exchange (TSX).
Those three really just represent the tip of the iceberg. They’re the one’s making headlines today, but there is a deep bench of Ontario start-ups just behind them looking to make the new headlines of tomorrow.
Which regions/municipalities should our readers keep a close eye on in 2022? Who do you consider the “movers and shakers/up and comers” in the province?
Chelsea: All of them! In all seriousness, Ontario represents such a broad range of opportunity, it really comes down to what a company is looking for.
A tech company looking for talent and R&D partnerships? Check out Ontario’s innovation highway that stretches from Ottawa to Windsor, and includes Toronto and Waterloo. That regional corridor is home to dozens of world-renowned research institutes and represents one of the largest IT clusters in North America.
Food and beverage company looking to expand production capacity? Well, London, in Southwestern Ontario, is considered one of Canada’s best locations for food and beverage processing and is a nationally-recognized test market city. The agri-food sector in London supports 7,000 people across 90+ companies.
Mining operation interested in Canada’s wealth of natural resources? Look no further than Ontario’s north, and communities like Timmins, as just an example. Timmins is known globally as one of the richest mineral producing areas in the world and has an economy largely based on resource extraction. Ontario’s north not only has all of the elements to aid a successful mining venture, the region is also at the heart of the province’s strategy to play a prominent role in the global production of EV batteries.
Chelsea and Aaron, thank you for taking the time to sit down with us, and providing a window into Ontario’s year ahead.
Chelsea: Please consider us a resource – and a free and helpful one! We’re here to help build bridges and make it easier to do business in the province. From confidential services to support companies looking at opening new offices, to promoting great Ontario products, services and expertise, to facilitating international innovation partnerships, we want to hear from you!
Chelsea Peet may be contacted at the Ontario Trade & Investment Office in San Francisco at Chelsea.Peet@international.gc.ca
Aaron Pinto may be contacted at the Ontario Trade & Investment Office in New York at Aaron.Pinto@international.gc.ca
