Small cities take on Toronto’s tech scene as competition heats up
Toronto still dominates Canada’s tech scene, but smaller markets are making inroads as companies compete for talent, a new report says.
The report by real estate services firm CBRE notes that while Toronto’s tech talent pool grew by 54 per cent between 2013 and 2018 to reach 228,500, numerous smaller cities have also notched strong gains.
Paul Morassutti, vice-chair of CBRE Canada, says companies are looking further afield as the competition for talent rises.
“Increasingly, both established firms and startup firms are understanding that there is a significant pool of untapped tech talent in other parts of the country.”
The annual ranking saw Victoria jump three spots to No. 7, and Oshawa was up by two to rank No. 12. Hamilton, ranked ninth, and Guelph, ranked No. 13, had the fastest tech job growth among mid-sized and small tech talent markets.
Morassutti said attracting talent was the key concern for companies so they aren’t particularly concerned with office costs. But, with high housing prices in Vancouver and Toronto, tech workers and companies seeking them are looking at other cities.
“All of a sudden, these smaller and mid-sized markets are beginning to make a lot of sense.”
There’s been a shift from the past, where smaller cities simply tried to compete on the “very weak argument” of cost to attract tech companies, and are increasingly working with governments, accelerators and incubators to create ecosystems, Morassutti said.
They’re creating specialized hubs, like artificial intelligence in Montreal and Edmonton, automotive in Hamilton and Oshawa and ocean-focused tech in Halifax.
Some smaller markets also find it helpful to not be on the radar of big global tech firms that can poach talent, Morassutti said, noting an executive in Halifax said it is a plus that the city didn’t have direct flights to Seattle or San Francisco.
“We’re not just competing with Vancouver or Toronto or with San Francisco or Seattle, we’re competing with Israel, we’re competing with Germany, with China,” he said.
The report ranks Toronto, which added 80,100 tech jobs in the five-year period, as the top tech city overall. Ottawa, which lost 3,600 workers to sit at 64,500, was ranked second, while Vancouver, which added 22,300 workers to reach 74,700, was ranked third.
Guelph’s talent pool rose 94.7 per cent over the five years to 3,700, Hamilton was up 52.9 per cent to 18,200 and the Waterloo Region was up 39.7 per cent to 20,400.
“Established firms and startup firms are understanding that there is a significant pool of untapped tech talent in other parts of the country.”
PAUL MORASSUTTI VICE-CHAIR OF CBRE CANADA