Vancouver-based clean leather manufacturer, 7 Leagues Leather, owned by Tasha Nathanson is considering a move to Alberta due to rising costs, limited land availability, and excessive regulations in British Columbia. This decision reflects a growing trend of businesses leaving B.C. in search of more favorable business environments.
Key Factors Driving the Move:
1️⃣ Cost Competitiveness: Alberta's allure lies in significantly lower operational costs, from affordable land options to a streamlined permitting process, taking mere 2-4 months, compared to B.C.'s daunting 18-month timeline.
Source: Avison Young, 2023 Industrial Market Report
2️⃣ Land Availability: Vancouver's industrial land vacancy rate stands at a mere 1%, creating a bottleneck for businesses aiming to expand or relocate.
Source: Statistics Canada, CANSIM table 027-0008
Nathanson, expressing her reluctance to leave B.C., feels she may be forced to make the difficult decision due to the constricting business climate.
The Impact of Business Exodus:
1️⃣ Economic Jeopardy: The departure of businesses like 7 Leagues Leather jeopardizes B.C.'s economic vitality, putting jobs and tax revenue at risk.
2️⃣ Reduced Affordability: B.C.'s affordability crisis extends beyond residents to impact businesses, creating a challenging environment for sustainable growth.
3️⃣ Competitiveness Concerns: B.C. faces declining competitiveness on the national stage, raising concerns about further closures and economic stagnation.
Bridgitte Anderson, CEO of the Greater Vancouver Board of Trade, aptly describes the situation:
"People are having difficulty finding a place to live and employers are having a difficult time finding or growing their operations. We are being left with a situation where there is an affordability crisis for housing and an affordability crisis for businesses. If you don't have either of those, you don't have an economy and you don't have a community."
The impending move of 7 Leagues Leather highlights the critical need for B.C. to address its issues with industrial land availability, red tape, and cost competitiveness. Failure to do so could lead to a further exodus of businesses, jeopardizing the province's economic prosperity.
Global homes news: https://globalnews.ca/https://dolphy.ca/pre-construction-homes/calgary
Greater Vancouver Board of Trade: https://www.avisonyoung.ca/web/vancouver/industrial-market-report
B.C. Ministry of Jobs, Trade and Technology: https://www2.gov.bc.ca/gov/content/governments/organizational-structure/ministries-organizations/ministries/jobs-economic-development-and-innovation
Alberta Ministry of Economic Development and Trade: https://www.alberta.ca/jobs-economy-and-trade
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