Niagara Falls City Economic History

            Economy of Stamford flourished and this led to the development of communities in the township especially in terms of trade and commerce. The area saw a growth in tourism where the debate about who won the battle about the Lundy’s lane paved a way for tourists to visit the area.

            With the plentiful source of hydroelectric power by the waterfalls, many industries boomed especially electrochemical and electrometallurgical industries in the early 20^th century. The industry in the 1970 and 1980s began to move out of the city due to economic recession and with the increase of global competition in the industry-manufacturing sector. Tourism was the most source of revenue for the city. In the 20th century, there was an exchange rate in comparing Canadian and US currencies where Ontario focused on tourism.

            The Ontario government introduced gambling to the local economies in the 1990s. Casino Niagara had an economic boom in the 1990s where it had luxurious hotels and tourist attractions   and a second casino was built called the Niagara Falls view that opened in 2004. These casinos attracted American tourists since they were less expensive

            In the year, 2004 there were many establishments in Niagara Falls that started adding a three percent market fee to bills. Recent developments have been centered on the Clifton Hill and fall view areas. Niagara Falls downtown has undergone revolution due to development of arts and culture industry. The Downtown area near Niagara Falls was a major area for local commerce until the 1970s when the Niagara Square Shopping Centre drew retailers and crowds. By 2006, Niagara had introduced art galleries, cafes, boutiques, and bistros in the area.       

Economic Growth and Development

            CIBC World Market (CIBCWM) Metropolitan Economic Activity Index[3] assessed the relative performance of Canada major towns by using yearly changes of macroeconomic variables that drive economic growth. The variables that were used were employment growth, population growth, unemployment rate, and business bankruptcy rate.

            Niagara Region Economic Growth Strategy released in 2013 a report targeting development of opportunities in the areas where the city had strengths and locational advantages.These programs would target manufacturing, tourism, logistics and agribusiness.[4]

            The city had small and medium sized businesses that form a solid base for its economy. This strategy focused that 80% of the city’s economy growth would come from business already established in the town[5].

            A report by 2013 Ipsos Reid Survey of Niagara Manufacturers reported that between 2013 and 2015 most firms in the city would increase their business and employment rates. This research highlighted that firm decision maker almost 74% of their business would increase[6]. More than 60% of the manufacturing firms would expect to see an increase in business profitability and future investments in equipment and machinery.

            The growth that the Niagara city has grown over the ten years ago and this is due to the casino business that has attracted tourist influx. The local area promotes the local communities and the Niagara Falls

            Niagara Falls has tremendously grown economically due to investment in 1970s. It has tourists attractions with lots of casinos which has led to economic development. City falls in prosperous business community. It has economic anchored by tourism manufacturing, food, and beverage production. The city offers industrial and commercial real estate where it has a reasonable cost of living with residential communities and this shows that economic development has grown.

            The culture in Niagara Falls has strengthened the economic growth in the city where it creates jobs for the local people and its labor income and gross regional product has increased. Arts and culture have played a key role in the city’s economic growth where it has used the communities’ cultural resources to attract more tourists to the area.[7]

            The city celebrates its history in promoting the culture sector by increasing access to cultural experiences for residents and tourists that provide a platform for financial incentives. The city has invested in the cultural economy that has led to economic growth and development.

Major Industries in Niagara Falls

            Tourism is a major economic aspect in Niagara Falls where it is the main revenue for the country. However, the city has other major industries that contribute to its economic growth and development. The city has experienced a rapid growth in the technology sector in interactive digital media.

            Niagara technology industry is a major diverse sector that includes radar technology and wireless media. Niagara bosses companies that deal with animation, digital gaming, digital simulation, video production and 3D computer-aided designs. This sector has attracted other international companies like Morro images which is an animation and motion capture studio in Germany[8]. A business that are set up in Niagara have the tendency to succeed in information and communication technology since they have a good research and developmental tax programs.

Recession

            Recession hit Ontario; the 2008 global recession crashed the housing market and hit provinces near Niagara Falls city. The government at the time in Ontario response to the situation by bailout of automakers where it decided to contribute .Its budget was aimed at stabilizing and stimulating the economy. This led to a high rate of unemployment where it almost reached 7%[9].

            Recession in 2008 affected small and medium sized firms in Canada where some were located in Niagara Falls City. The manufacturing sector was also affected where the global economy was expected to recover by 2010.This led the city to experience a decline in its economic output.

            Canada’s economy shrank in 2008 and 2009 due to temporary factors like Japans earthquake and tsunami. Real gross fell by 0.4 percent in the first quarter. This affected the business investment and housing investment that was affected by consumer spending[10].

            Niagara was had hit by recession where poverty grew tremendously. This was due to the structure of the countries economy. However, Niagara was tackling the rate of poverty through the Niagara Prosperity Initiative. This town was one of the recession’s hardest hit, and it is now trying to get back on track. Its job market became very poor which led many of its residents to search for greener pastures.

            Even with the hit the manufacturing sector is recovering where it saw an increase in jobs and in the construction sector. This has been a step in the desired direction. The remanufacturing sector has planned to extend their sectors in three years. The city decides to build a green energy cluster where renewable energy companies were to start the process.

            The Niagara city took to fight off unemployment rates by collaborating with partners like colleges, the Niagara Industrial Association, and the municipalities in the area to come with policies to help the city.

            Niagara economy is bouncing back even after the recession of 2008 but it has a long way to go. Canada’s conference board announced that the retail sector was improving while development was declining, however the rate of jobs was improving. The Metropolitan Outlook for Winter of 2012 reported that the cities gross domestic product dropped by 4.2% during the recession but it has since increased by 2.7% by 2010 and was estimated to increase 1% by 2011[11].

            The city increased its employment rates in small and medium business. The service industry has increased its growth rate but transportation and warehousing has had strong growth especially due to growth in the manufacturing sector.

            However even after the policies to deal with recession, the city still struggles with unemployment rates where it still experiences higher than average rates. Its residents are still struggling to pay taxes and other personal bills. It seems that Niagara Fall has not fully recovered after the recession like other cities.

            The office of Economic Development[12] had a plan to support industrial and business development of city by providing technical support and firms who seek such help. It also provided economic information with technical assistance to investor’s from-new projects. It was to market the city to other global markets like US. It supported established companies to ensure that they retain local jobs that would create new jobs and deal with the issue of unemployment. In turn, it would create a platform for expansion and investment[13].

            The Economic Development office[14] would maintain an inventory of sites and buildings and create efficient funding sources for purposes of economic development. Projects that would come up. It would promote tourism and industry and work with other members of the public team, such as the Industrial Development Agency of Niagara County.

Conclusion

            The city of Niagara Falls has a rich history due to tourist. The city is favorably located in promoting tourism that is a main source for its revenue. The culture of its people has also contributed to its economic growth in promoting tourism.

            The city has other industries that range from manufacturing industries, innovative technology, mining industries, energy industries and detail, food and beverage industries that have contributed to the city’s economic growth and development.

            The city experienced a recession in the year 2008 that affected its economic stability. The most affected firms are small and medium companies. Unemployment rates were at high where most of its residents lost their jobs and this contributed to poverty cases. The residents were unable to pay their taxes and other bills that had an effect on the government’s revenue. However, the city had set up policies to deal with the issue of recession and it has grown over the past years where levels of unemployment are level since the manufacturing sector has boomed and created more jobs for its residents.