//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 commission 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 ENHANCEMENT70% BUSINESS ATTRACTION20% BUSINESS FACILITATION10%

//economic development commission BUSINESS ENHANCEMENT 200 site visits year 200 site visits year Working with companies one-on-one i.e. export contacts; source of consultants Working with companies one-on-one i.e. export contacts; source of consultants “Business in the Park” educational programs “Business in the Park” educational programs Emphasis on employee retention and issues common to all sectors - marketing/planning, etc. Emphasis on employee retention and issues common to all sectors - marketing/planning, etc.

//economic development commission BUSINESS ATTRACTION Activities related to broadening awareness of the Central Okanagan as a place to locate and invest 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 Relate to the Okanagan Partnership, emphasis on the aviation and film industries Include existing businesses in our attraction efforts – trade events; online directory Include existing businesses in our attraction efforts – trade events; online directory

//economic development commission BUSINESS FACILITATION Working in partnership with the community and region: Working in partnership with the community and region: Communicate community needs and issues to various levels of government (zoning; infrastructure) Communicate community needs and issues to various levels of government (zoning; infrastructure) Education community on initiatives that promote economic development (UBC-Okanagan; Highway 97 Corridor; 2010 Olympics) 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 Support and promote events and programs such as Young Entrepreneur Awards; Community Vision exercises; International Students program

//economic development commission ECONOMIC INDICATORS BC Growth Steady: 3.4 % 2007 BC 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 years Average 95% last 2 years

//economic development commission ECONOMIC INDICATORS Housing Starts – Housing Starts – BC - 36,900 in 2006 (CMHC) Central Okanagan - 2,700 Central Okanagan - 2,700 Building Permits – OK Region – $1.3 billion Building Permits – OK Region – $1.3 billion Record increase in building permits in 2005 – 74% over 2005 Record increase in building permits in 2005 – 74% over 2005 Value of building permits issued (Thompson Okanagan): Value of building permits issued (Thompson Okanagan): 2002 $ 526,000, $ 1,551,000,000

//economic development commission ECONOMIC INDICATORS $ 8.3 billion in development underway or proposed including UBC-O $800 million UBC-O $800 million Predator Ridge - $5 million Predator 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 million Big White - $250 million

//economic development commission BUSINESS LICENSES City of Kelowna has a 90% ,055 renewal rate for ,129 businesses – 20048, % increase 20059,092 for ,542

//economic development commission Challenges – LABOUR British Columbia’s Labour Force will decline in 2021 – in the Okanagan it already is!

//economic development commission LABOUR MARKET CHALLENGES  Business Confidence Survey: Attracting and retaining staff are the most common Attracting and retaining staff are the most common issues faced by firms in the Central Okanagan; issues faced by firms in the Central Okanagan;  Kelowna Labour Force: 2006 unemployment rate 2006 unemployment rate lowest ever at 4.0% - lowest ever at 4.0% - 5.4% in % in 2005  Declining school enrolment, increasing senior population increasing senior population

//economic development commission LABOUR MARKET CHALLENGES  Central Okanagan population: Doubled in last 25 years, mostly to in-migration Doubled in last 25 years, mostly to in-migration  Population 55 and over: 27% % % in % in 2006  Projected population increase 45 and older: from 41% 2006 to 50% by 2031 from 41% 2006 to 50% by 2031

//economic development commission HOUSING - MEDIAN PRICE $265, $279, $349,900 $385,000 $415,

//economic development commission HOW SERIOUS IS THE PROBLEM? Virtually every sector challenged to find workers – construction, high to find workers – construction, high technology, manufacturing, hospitality, technology, manufacturing, hospitality, health care … health care … Tradespeople being lured to Alberta; youth want high starting wages; youth want high starting wages; less long-term commitment; less long-term commitment; Businesses are not operating to capacity; some closing.

//economic development commission WHAT ARE WE DOING? Educating business about severity of the problem! Sharing best practices: Wages comparative to larger centers Wages comparative to larger centers Profit sharing, improved benefit plans Profit 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 commission WHAT ARE WE DOING? Business looking at how to operate with less people (lean manufacturing; using contract workers; increased use of technology); Business looking at how to operate with less people (lean manufacturing; using contract workers; increased use of technology); Okanagan Valley Economic Development Society; Okanagan Valley Economic Development Society; Westbank First Nation representation on EDC board; Westbank First Nation representation on EDC board; Outcomes from today’s forum… Outcomes from today’s forum…

//economic development commission OUTLOOK STILL POSITIVE “The Okanagan – the Napa of the North.” - Stuart Isett, - Stuart Isett, New York Times New York Times Desirable place well Desirable place well situated for continued situated for continued strong growth strong growth UBC Okanagan UBC Okanagan Airport Upgrades Airport Upgrades Strong base of talented Strong base of talented residents residents Continued diversity of Continued diversity of arts, culture, people arts, culture, people

//economic development commission Economic Profile