Transcript Document

//economic development
commission
The Central Okanagan
Economy
Opportunities and
Challenges
Presentation to
Workforce Connects Forum
February 27, 2007
Tracey Fredrickson
Economic Development Commission
Regional District, Central Okanagan
//economic development
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EDC’s MISSION:
Work to diversify the economy of the Central
Okanagan by enhancing the existing business
base and attracting new and strategically
appropriate investment.
BUSINESS ENHANCEMENT
70%
BUSINESS ATTRACTION
20%
BUSINESS FACILITATION
10%
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BUSINESS ENHANCEMENTcommission
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200 site visits year
Working with companies one-on-one i.e. export
contacts; source of consultants
“Business in the Park” educational programs
Emphasis on employee retention and issues
common to all sectors - marketing/planning, etc.
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BUSINESS ATTRACTION commission
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Activities related to broadening awareness of the
Central Okanagan as a place to locate and invest
Relate to the Okanagan Partnership, emphasis
on the aviation and film industries
Include existing businesses in our attraction
efforts – trade events; online directory
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BUSINESS FACILITATIONcommission
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Working in partnership with the community and
region:
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Communicate community needs and issues to various
levels of government (zoning; infrastructure)
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Education community on initiatives that promote
economic development (UBC-Okanagan; Highway 97
Corridor; 2010 Olympics)
Support and promote events and programs such as
Young Entrepreneur Awards; Community Vision
exercises; International Students program
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ECONOMIC INDICATORS commission
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BC Growth Steady: 3.4 % 2007
Central Okanagan Growth Index
up 5.4%
BC Disposable Income – 7.3%
Retail Sales – $2.5 billion for
RDCO (up 22%)
Business Confidence Index
Average 95% last 2 years
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ECONOMIC INDICATORS commission
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Housing Starts –
BC - 36,900 in 2006 (CMHC)
Central Okanagan - 2,700
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Building Permits – OK Region – $1.3 billion
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Record increase in building permits in 2005 – 74% over
2005
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Value of building permits issued (Thompson Okanagan):
2002
2006
$ 526,000,000
$ 1,551,000,000
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ECONOMIC INDICATORS commission
$ 8.3 billion in development
underway or proposed including
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UBC-O $800 million
Predator Ridge - $5 million
William Bennett Bridge - $144 million
Marshall Industrial Park - $100 million
Legacy Aquatic Centre - $33 million
Big White - $250 million
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commission
BUSINESS LICENSES
City of Kelowna
has a 90%
renewal rate for
businesses –
4.9% increase
for 2006
2002
2003
2004
2005
2006
8,055
8,129
8,060
9,092
9,542
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Challenges – LABOUR
British Columbia’s
Labour Force will
decline in 2021 – in
the Okanagan it
already is!
LABOUR MARKET CHALLENGES
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Business Confidence Survey:
Attracting and retaining staff are the most common
issues faced by firms in the Central Okanagan;
Kelowna Labour Force:
2006 unemployment rate
lowest ever at 4.0% 5.4% in 2005
Declining school enrolment,
increasing senior population
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LABOUR MARKET CHALLENGES
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Central Okanagan population: 166.719
Doubled in last 25 years, mostly to in-migration
Population 55 and over:
27% 1996
29% in 2006
Projected population increase 45 and older:
from 41% 2006 to 50% by 2031
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HOUSING - MEDIAN PRICE commission
$349,900
2004
$265,400
2002
$279,250
2003
$385,000
2005
$415,000
2006
HOW SERIOUS IS THE
PROBLEM?
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development
commission
Virtually every sector challenged
to find workers – construction, high
technology, manufacturing, hospitality,
health care …
Tradespeople being lured to Alberta;
youth want high starting wages;
less long-term commitment;
Businesses are not operating to capacity;
some closing.
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WHAT ARE WE DOING? commission
Educating business about severity of the problem!
Sharing best practices:
• Wages comparative to larger centers
• Profit sharing, improved benefit plans
• More time off;
• Incentives for employees who bring
other employees;
• Gym memberships, use of company boat;
• Caring about the individual worker…
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WHAT ARE WE DOING? commission
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Business looking at how to operate with less people
(lean manufacturing; using contract workers; increased
use of technology);
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Okanagan Valley Economic Development Society;
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Westbank First Nation representation on EDC board;
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Outcomes from today’s forum…
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OUTLOOK STILL POSITIVEcommission
“The Okanagan – the
Napa of the North.”
- Stuart Isett,
New York Times
 Desirable place well
situated for continued
strong growth
 UBC Okanagan
Airport Upgrades
 Strong base of talented
residents
 Continued diversity of
arts, culture, people
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commission
www.investkelowna.com
Economic Profile