Both challenges and opportunities lay on the horizon for businesses in the New Year, according Matt Pitcairn, president and CEO of the Richmond Chamber of Commerce.
“I think there are a lot of uncertainties about major policy changes that could have an impact on Richmond, such as the NAFTA negotiations,” said Pitcairn.
“One of Richmond’s biggest industries is the movement of goods with YVR and major port activities along the Fraser River…so, if there is a major policy change that affects trade, it will have an impact on the economy here.”
He added that although trade in British Columbia is more diversified than other provinces, given its strong ties to Asia, still the economy still primarily relies on trade with the U.S.
Another uncertain factor, according to Pitcairn, is the major tax policy change that has been passed in the U.S.
Last week, U.S. president Donald Trump signed a bill into law that represents a $1.5 trillion tax cut. It permanently slashes corporate tax rates and also lowers taxes for individuals.
“The (Trump administration) is trying to encourage American companies to come back to the U.S.,” said Pitcairn.
“Because the tax rates are now lower, companies that have come to Canada could go back south of the border.
“Also, changes after that could make it more expensive to do cross-border business,” he added.
Apart from the challenges stemming from the global economy, Richmond businesses face domestic problems in 2018 — affordability and transportation remain the two biggest ones, according to Pitcairn.
“Recruiting and retaining employees is getting harder and harder, as a result of housing affordability, and that directly ties into the transportation challenges because employees are living further and further away,” he said.
He said more frequent bus service, especially in the east part of Richmond and further east into other municipalities, is essential for businesses.
“The congestion at the George Massey Tunnel is also a huge cost for business. Every day that’s holding up thousands of people in traffic and goods are not able to move, although that’s a key connection between YVR and the U.S. border,” added Pitcairn.
“It’s been a problem for many years. Until the government can properly address that, it will continue to be a major challenge for Richmond businesses.”
Despite concerns, Pitcairn said he sees strong growth in the Richmond economy, especially in the shipping and service industry, and he expects to see it continue growing through 2018.
“B.C. is known as the gateway to the Asia Pacific, but Richmond is truly the key to Canada,” said Pitcairn.
“YVR has had tremendous growth, I believe it had 10 per cent growth last year, and new flights are being launched all the time. The economic benefits of those activities are huge for Richmond,” he said.
Richmond also has 20 per cent of all Metro Vancouver hotels, thanks to the proximity to the airport; it also has more than 700 restaurants in its central area.
“We have one of the most liberal cities in the entire world. We have people of different cultures and different backgrounds; the opportunities for international trade are alive here.”
Those advantages will be further strengthened in 2018, with a new design school opening at Kwantlen Polytechnic University in January. The Canada-China Year of Tourism 2018 will also kick in and bring business to Richmond.
“I’m very excited about the opening of the world-class innovative design facility right here in Richmond, which will hopefully generate a cluster of businesses,” said Pitcairn.
“And the Canada-China Year of Tourism is a phenomenal opportunity for Richmond. When the hotels and restaurants are full, people are shopping and spending money in our stores, that’s fantastic. I’d love to see how we can promote more tourism with China.”
But he noted that more facilities are needed to accommodate a potential surge of tourists in the coming year.
“We absolutely need more hotels. When you look at peak times of the year, hotels were at full capacity.”
He added that other accommodation options, such as short-term rental homes, also needs to be further explored.
