New campus development an economic anchor for community
Nov 20, 2023
The Ottawa Hospital’s new campus development is an economic anchor in our community, creating new jobs and new business opportunities with ripple effects that support local businesses.
Here are some ways the largest health infrastructure project in Ottawa’s history will positively impact economic development in our community.
Economic output
Building a new hospital is a substantial project, so let’s begin with a substantial number: the total economic output of the construction of TOH’s new campus is estimated at $3.77 billion. Output is measured as the value of all goods and services produced during a specific period of time; in this case, it’s the duration of the construction of the parking garage and main hospital building.
Local GDP and labour income
Building on economic productivity, the $3.77 billion in economic output will include a boost to Ottawa’s local gross domestic product (GDP) by $1.92 billion, as well as a $1.24 billion contribution to Ottawa’s labour income. Labour income represents the total earnings of employees in the supply chain, consisting of wages, salaries and supplementary income. For every dollar spent on construction activity, an estimated $0.72 of value will be contributed to Ottawa’s economy, and two full-time equivalent jobs will be created or sustained.
Job creation
During the construction period, the new campus development will create or sustain more than 4000 full-time equivalent jobs in Ottawa. After construction, more than 6000 people will work at the new campus – a portion of the more than 15,000 people who work and practice medicine every day at TOH campuses.
Enhancing Ottawa’s position in health sciences, research and innovation
The new campus will have expanded research capacity to support the acceleration of discovery and innovation, creating a supportive environment for government and academic partnerships, start-ups and prototype development. This enhances the region’s value proposition to investors and brands the City of Ottawa as an attractive location to do business. Driving new research investment will help build upon the $2.1 billion impact TOH’s research has made on Ottawa’s economy since 2001.
Creating business opportunities
The new campus will generate approximately $20.2 million in new service contracts, creating sustainable business opportunities for new and existing suppliers. As part of a retail strategy, new contracts provide an opportunity for job creation and could include retail, food and beverage vendors and more, with a potential for long-term, multi-year partnerships focused on supporting patients and visitors as well as staff and physicians.
Skills Training and Indigenous Partnership Opportunities
The new campus development will include business, economic partnership, career and apprenticeship opportunities with local First Nations and other Indigenous communities in Ottawa and surrounding region. TOH is working with the Indigenous Peoples Advisory Circle to engage Indigenous Peoples on the recruitment, training, and hiring of Indigenous Peoples throughout the duration of the project.
Ripple effect supporting local businesses
During construction, anywhere between 200–5000 workers from a variety of trade functions will be on site every day, coming from within the greater Ottawa area and Eastern Ontario region as well as Western Quebec. Businesses near the new campus site will likely see an increase in foot and flow-through traffic; these ripple economic effects are known as induced economic contributions. The spending of wages earned as a result of the construction of the new campus will help support post-pandemic recovery for many local businesses and can translate into new or repeat customers.
Watch the video below for a bird’s eye view of the final stages of excavation on the site where the parking garage will be built to support the new hospital.
*Economic estimations presented within this story are from a 2021 Deloitte report “The Ottawa Hospital’s New Campus: Economic Contributions Study.”