Build a Business Case for Rural or Peri-Urban Business Expansion

But the region’s townships play an equally important role in our economic growth. North Dumfries, Wellesley, Wilmot and Woolwich offer a unique mix of rural charm and proximity to urban amenities, making them an appealing option for companies looking to expand in a cost-effective, strategic location.

In this article, we explore why rural and peri-urban expansion in Waterloo’s townships may be the right move for your business.

Defining rural, peri-urban and urban areas

Before we dive deeper into why rural and peri-urban areas are ideal for expansion, let’s define these key terms as they relate to economic development and investment attraction:

• Urban areas: Highly developed areas with dense populations, advanced infrastructure and a range of businesses, services and amenities
• Rural areas: Areas located outside cities and towns, often associated with agriculture, open landscapes and a small-town feel
• Peri-urban areas: Areas where urban meets rural, offering access to urban infrastructure with the space and affordability of rural locations

Why rural and peri-urban expansion is growing

Across the globe, businesses are increasingly considering rural and peri-urban areas for expansion. In Canada alone, over 320,000 small businesses operated in rural and small-town areas in 2022, representing 14.6% of all small businesses – a sign of growing interest in these regions.

Here are some of the key trends driving this shift:

1. Rising urban costs: Higher operating costs in cities are driving companies to more affordable areas with lower real estate prices, reduced overhead and more room to grow.
2. Decentralized work models: Hybrid and remote work have made proximity to urban centres less important, opening up opportunities in rural and peri-urban locations.
3. Supply chain resilience: Companies are looking for locations with strong logistics connections to ensure efficient access to markets.

In 2022, the average revenue of small rural businesses outperformed urban ones, proving that these areas offer both affordability and strong economic returns.

The evolution of Waterloo’s townships

Waterloo Region’s townships have long been known for their agricultural and manufacturing roots.

Over the past two decades, however, they have evolved into environments for tech, logistics and advanced manufacturing. This transformation has been driven by regional investment, growing infrastructure investments and Waterloo’s reputation as a global innovation hub.

Each of our region’s township offers unique strengths:

• North Dumfries offers ample space for large-scale operations along with easy access to major transportation routes.
• Wellesley is recognized for its food production and sustainability initiatives, supporting businesses in the food processing and green innovation sectors.
• Wilmot is a growing residential community with a strong offering for manufacturing and supply chain businesses.
• Woolwich is known for its agricultural heritage and has grown into a centre for agri-tech innovation.

Close, but not too close

One of the key advantages of expanding into a rural or peri-urban area is proximity to urban centres.

Waterloo’s townships are situated just outside major cities like Waterloo and Toronto, giving businesses the ability to access resources while avoiding the congestion and higher costs associated with urban centres.

Companies expanding into the region’s townships can take advantage of their proximity to the University of Waterloo, Wilfrid Laurier University and Conestoga College, accessing a rich pool of talent and research opportunities without the need to be in a bustling metropolitan area.

Suited for certain sectors

Waterloo’s townships are well suited to industries that require space for large-scale operations, such as manufacturing, agriculture and automotive. These sectors benefit from the availability of open land, transportation infrastructure and access to natural resources.

With ample room for production, warehousing and distribution, plus proximity to Highway 401 and nearby airports, businesses can easily connect to national and international markets.

Balanced work-life environment

Rural and peri-urban areas can offer employees a different quality of life, with access to scenic landscapes, outdoor activities and the comforts of a small-town community – alongside the amenities of nearby cities.

In Waterloo, shorter commutes, less congestion and strong community connections contribute to a more balanced lifestyle for employees, helping businesses attract and retain talent.

Expansion on the outskirts

Waterloo’s townships offer advantages for business growth, with proximity to urban centres, access to skilled talent, space for large-scale operations and an excellent quality of life for employees.

Expanding into Waterloo’s townships means joining a growing community where innovation meets tradition. You’ll have the space to scale, connect with like-minded businesses and tap into the talent and support you need for long-term success.