Pearson Economic Zone: The Heart of Canada’s Economy

This blog was provided by Greater Toronto Airports Authority

If you’ve flown from Toronto Pearson, you’ll likely have noticed the vast swath of logistics centres, assembly plants, pharmaceutical facilities and corporate offices that surround the airport. Look down as you take off, and you’ll be gazing upon an industrial and commercial area that generates $70 billion in GDP annually. It’s known as the Pearson Economic Zone (PEZ), and it is the heart of the Canadian economy.

At a time when the economic sands are shifting and Canada needs to leverage its strengths to navigate the uncertainty, the PEZ presents a clear opportunity. The region is growing fast, adding 100,000 jobs since 2016 to bring the number of people working there to half a million. With the right mix of policies and investment, that growth can continue, making the PEZ an even more powerful economic force.  

Canada’s Economic Runway

In May 2024, Bombardier opened a state-of-the-art assembly plant at the north end of Toronto Pearson for its Global series business jets. This moves not only brought aircraft building back to the airport for the first time in two decades but also established one of the world’s most advanced private jet manufacturing facilities. Each new Global plane that rolls off the production line is a testament to a highly skilled workforce, efficient supply chains, cutting-edge technology and innovation.

Bombardier is one of 2,100 manufacturers in the PEZ, which has one of the largest concentrations of manufacturing companies in North America. These firms sit alongside companies in engineering, life sciences, technology and other knowledge-economy sectors, forming a dynamic zone that encompasses global giants and small businesses.

Many of the businesses in the PEZ rely on the connectivity Toronto Pearson provides. For ambitious Canadian businesses and innovative startups, an efficient airport with direct flights around the world is essential for meeting customers and investors, attracting world-leading talent, and shipping products.

The flight paths around the airport are Canada’s trade routes in the sky, linking Canadian travellers and businesses with 70 percent of the world’s economies. Toronto Pearson has more international connections than any other North American airport and continues to add more. Last year, it welcomed seven new airlines, providing even more choice for travellers to key markets such as Europe and East Asia.

While this connectivity helps Canadian businesses reach global markets, it also brings the world to Canada. Around 15 million tourists pass through Toronto Pearson annually, driving $6.8 billion in spending and supporting nearly 100,000 jobs.

Supporting Growth

With its passenger numbers forecast to grow by around 20 million by the mid-2030s, Toronto Pearson is embarking on a decade-long investment program to prepare for the future. Growth at the airport, creating more capacity for business travel, tourism and cargo, should help catalyze growth in the PEZ. With a burgeoning airport, excellent road network of 400-series highways and developing rail links, the PEZ has huge potential for more jobs, more products and more innovation.

But there’s a catch. The area is under sustained pressure from residential developers seeking to convert valuable industrial and commercial lands into condos and houses. The downsides are obvious: less space for productive economic activity, tall condos near flight paths, and families exposed to high noise levels from planes and industry. Vacancy rates in the Pearson Economic Zone are already low and loss of land to residential development would make it harder for companies to find the space they need to grow.    

The PEZ needs to be protected, with residential development directed toward more appropriate locations and employment lands preserved for their intended purpose: generating prosperity for Canadians.