//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 commissionEDC’s MISSIONEDC’s MISSION::

Work to diversify the economy of the Work to diversify the economy of the Central Central Okanagan by Okanagan by enhancingenhancing the existing the existing business business

base and base and attracting newattracting new and strategically and strategically appropriate investment.appropriate investment.

BUSINESS ENHANCEMENTBUSINESS ENHANCEMENT 70%70%

BUSINESS ATTRACTIONBUSINESS ATTRACTION 20%20%

BUSINESS FACILITATIONBUSINESS FACILITATION 10%10%

//economic development commissionBUSINESS ENHANCEMENTBUSINESS ENHANCEMENT

200 site visits year200 site visits year

Working with companies one-on-one i.e. export Working with companies one-on-one i.e. export contacts; source of consultantscontacts; source of consultants

““Business in the Park” educational programsBusiness in the Park” educational programs

Emphasis on employee retention and issues Emphasis on employee retention and issues common to all sectors - marketing/planning, etc.common to all sectors - marketing/planning, etc.

//economic development commissionBUSINESS ATTRACTIONBUSINESS ATTRACTION

Activities related to broadening awareness Activities related to broadening awareness of the Central Okanagan as a place to locate of the Central Okanagan as a place to locate and investand invest

Relate to the Okanagan Partnership, Relate to the Okanagan Partnership, emphasis on the aviation and film industries emphasis on the aviation and film industries

Include existing businesses in our attraction Include existing businesses in our attraction efforts – trade events; online directoryefforts – trade events; online directory

//economic development commissionBUSINESS FACILITATIONBUSINESS FACILITATION

Working in partnership Working in partnership with the community and with the community and region:region:

CommunicateCommunicate community needs and issues to community needs and issues to various levels of government (zoning; infrastructure)various levels of government (zoning; infrastructure)

EducationEducation community on initiatives that promote community on initiatives that promote economic development (UBC-Okanagan; Highway 97 economic development (UBC-Okanagan; Highway 97 Corridor; 2010 Olympics)Corridor; 2010 Olympics)

Support and promoteSupport and promote events and programs such events and programs such as Young Entrepreneur Awards; Community Vision as Young Entrepreneur Awards; Community Vision exercises; International Students programexercises; International Students program

//economic development commissionECONOMIC INDICATORSECONOMIC INDICATORS

BC Growth Steady: 3.4 % 2007BC Growth Steady: 3.4 % 2007 Central Okanagan Growth Index Central Okanagan Growth Index

up 5.4%up 5.4% BC Disposable Income – 7.3%BC Disposable Income – 7.3% Retail Sales – $2.5 billion for Retail Sales – $2.5 billion for

RDCO (up 22%)RDCO (up 22%) Business Confidence Index Business Confidence Index

Average 95% last 2 yearsAverage 95% last 2 years

//economic development commissionECONOMIC INDICATORSECONOMIC INDICATORS

Housing Starts – Housing Starts –

BC - 36,900 in 2006 (CMHC)BC - 36,900 in 2006 (CMHC) Central Okanagan - 2,700Central Okanagan - 2,700

Building Permits – OK Region – $1.3 billionBuilding Permits – OK Region – $1.3 billion

Record increase in building permits in 2005 – 74% Record increase in building permits in 2005 – 74% over 2005over 2005

Value of building permits issued (Thompson Value of building permits issued (Thompson Okanagan):Okanagan):

2002 $ 526,000,0002002 $ 526,000,00020062006 $ 1,551,000,000 $ 1,551,000,000

//economic development commissionECONOMIC INDICATORSECONOMIC INDICATORS

$ 8.3 billion in development$ 8.3 billion in development

underway or proposedunderway or proposed includingincluding

UBC-O $800 millionUBC-O $800 million Predator Ridge - $5 millionPredator Ridge - $5 million William Bennett Bridge - $144 million William Bennett Bridge - $144 million Marshall Industrial Park - $100 million Marshall Industrial Park - $100 million Legacy Aquatic Centre - $33 million Legacy Aquatic Centre - $33 million Big White - $250 millionBig White - $250 million

//economic development commissionBUSINESS LICENSESBUSINESS LICENSES

City of KelownaCity of Kelowna

has a has a 90%90% 2002 8,055 2002 8,055

renewal rate for renewal rate for 2003 8,1292003 8,129

businesses –businesses – 20042004 8,0608,060

4.9%4.9% increase increase 20052005 9,0929,092

for 2006 for 2006 20062006 9,5429,542

//economic development commissionChallenges – LABOURChallenges – LABOUR

British Columbia’s Labour Force will decline in 2021 – in the Okanagan it already is!

//economic development commission

LABOUR MARKET CHALLENGESLABOUR MARKET CHALLENGES

Business Confidence Survey:Business Confidence Survey:

Attracting and retaining staff are the most Attracting and retaining staff are the most common common

issues faced by firms in the Central Okanagan;issues faced by firms in the Central Okanagan;

Kelowna Labour Force:Kelowna Labour Force:

2006 unemployment rate 2006 unemployment rate

lowest ever at 4.0% -lowest ever at 4.0% -

5.4% in 2005 5.4% in 2005

Declining school enrolment, Declining school enrolment,

increasing senior populationincreasing senior population

//economic development commissionLABOUR MARKET CHALLENGESLABOUR MARKET CHALLENGES

Central Okanagan population:Central Okanagan population: 166.719 166.719 Doubled in last 25 years, mostly to in-migrationDoubled in last 25 years, mostly to in-migration

Population 55 and over:Population 55 and over: 27% 1996 27% 1996

29% in 200629% in 2006

Projected population increase 45 and olderProjected population increase 45 and older:: from 41% 2006 to from 41% 2006 to 50% by 203150% by 2031

//economic development commissionHOUSING - MEDIAN PRICEHOUSING - MEDIAN PRICE

2005

2002$265,400

2003

$279,250

2004$349,900

$385,000

$415,000 2006

//economic development commission

HOW SERIOUS IS THE PROBLEM?HOW SERIOUS IS THE PROBLEM?

Virtually every sectorVirtually every sector challenged challenged

to find workers – construction, high to find workers – construction, high

technology, manufacturing, hospitality, technology, manufacturing, hospitality,

health care …health care …

TradespeopleTradespeople being lured to Alberta; being lured to Alberta;

youthyouth want high starting wages; want high starting wages;

less long-term commitment;less long-term commitment;

Businesses are not operating to Businesses are not operating to capacity; some closing.capacity; some closing.

//economic development commissionWHAT ARE WE DOING?WHAT ARE WE DOING?

Educating businessEducating business about severity of the about severity of the problem!problem!

Sharing best practicesSharing best practices::• Wages comparative to larger centersWages comparative to larger centers• Profit sharing, improved benefit plansProfit sharing, improved benefit plans• More time off;More time off;• Incentives for employees who bring Incentives for employees who bring

other employees;other employees;• Gym memberships, use of company boat;Gym memberships, use of company boat;• Caring about the individual worker…Caring about the individual worker…

//economic development commissionWHAT ARE WE DOING?WHAT ARE WE DOING?

Business looking at how to operate with less Business looking at how to operate with less people (lean manufacturing; using contract people (lean manufacturing; using contract workers; increased use of technology);workers; increased use of technology);

Okanagan Valley Economic Development Society;Okanagan Valley Economic Development Society;

Westbank First Nation representation on EDC Westbank First Nation representation on EDC board;board;

Outcomes from today’s forum…Outcomes from today’s forum…

//economic development commissionOUTLOOK STILL POSITIVEOUTLOOK STILL POSITIVE

““The Okanagan – theThe Okanagan – the

Napa of the North.”Napa of the North.”

- - Stuart Isett,Stuart Isett,

New York TimesNew York Times

Desirable place well Desirable place well situated for continued situated for continued strong growthstrong growth

UBC OkanaganUBC Okanagan

Airport UpgradesAirport Upgrades Strong base of Strong base of talented talented residentsresidents

Continued diversity of Continued diversity of arts, culture, peoplearts, culture, people

//economic development commission

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