The Waterloo Economic Development Corporation highlighted continued economic growth across the technology, manufacturing, and automotive sectors in Waterloo, Ontario, in a March 2026 blog post. This ongoing development is bolstered by significant contributions from local research institutions, federal funding, and a deep pool of skilled labour.
The University of Waterloo remains a major economic engine, contributing nearly $7 billion annually to the provincial economy. A recent assessment by EY found that the university generates $1.7 billion in economic impact and supports over 14,000 jobs within the region. The university also operates the largest post-secondary co-operative education program in North America, connecting more than 8,000 employers with students. These partnerships provide a financial boost to the local economy, with employers seeing $2.20 in economic output for every dollar invested in a co-op student.
The region’s technology sector has also seen rapid expansion. According to the CBRE 2025 report on tech talent, Waterloo climbed 11 spots to rank seventh in North America and first among small markets. This growth in technical expertise is supported by a 58.2% increase in tech talent between 2021 and 2024, the second-highest growth rate in Canada. Additionally, the university is recognized as the top school in the country for producing founders of high-value start-ups, known as unicorn companies.
Manufacturing and automotive industries continue to provide a foundation for the local economy. The region is home to the fourth-largest manufacturing sector in Canada, which includes 1,850 companies and employs 57,000 people. This sector is anchored by Toyota Motor Manufacturing Canada, which has invested $11 billion in its local operations. Since November 2015, FedDev Ontario has further supported this industrial growth by investing over $290 million into more than 240 projects across the region.
