BC rural network – British Columbia

Being Canada’s 4^th largest economy, British Columbia boasts highly educated and skilled labor force, business-friendly environment, reasonable tax rates, and high quality of life. As of 2019, its gross domestic product stands at a little over $253 billion.

Competitive Advantages

The province has a well-developed transportation network and a strategic location when it comes to logistics and the flow of goods. Railways link ports on the Gulf, Pacific, and Atlantic coasts with major markets in Mexico, the U.S., and across Canada. British Columbia also has 6 airports, including Vancouver International, Prince George International, and Kelowna Airports. In addition to an extensive highway network, the province is also well connected by sea, with the Port of Vancouver being the 3^rd largest on the North American continent and the largest in Canada.

Businesses also benefit from low provincial personal income taxes and corporate income tax. Training tax credits are also offered.

Economic Sectors

The main sectors driving provincial growth include aerospace, forestry, clean technology, and seafood and agriculture. Other sectors that are growing and have a strong potential include transportation infrastructure, tourism, wireless technologies and information communication, and international education, among others.

Forestry

This is a major sector due to the fact that wood is abundant and varied, with species such as western red cedar, Pacific silver fir, and western hemlock. Companies manufacture a selection of products, including wood pellets, pulp, panel boards, and paper. The major markets for timber exports are the U.S., South Korea, Japan, and China.

Aerospace

Aerospace is also a major sector in BC and is Canada’s third largest. Manufacturers supply a diverse array of products for sectors such as surveillance and security, aircraft repairs and maintenance, and tooling. Companies are hiring professionals with training and experience in the aircraft and aerospace industries, including quality assurance technicians, civil aviation safety inspectors, aerospace engineers, and aircraft interior technicians.

Seafood and Agriculture

Some 2,800 beverage and food processing businesses operate on the territory of British Columbia. Farmers grow crops such as greenhouse vegetables, grapes, sweet corn, potatoes, and others. They also farm tree fruits, including plums, apricots, pears, and apples. Some manufacturers specialize in organic beverages and food which are regulated under the Safe Food for Canadians Act. Farmers grow organic produce such as winter and summer squash, sugar pumpkins, and specialty potatoes.

Clean Technology

This is also a major economic sector producing waste and water management systems, renewable energy solutions, and energy efficiency technologies. Major companies that operate in British Columbia include Corvus Energy, General Fusion, Ballard Power Systems, and Powertech Labs. About 70 percent of the companies manufacturing clean technology solutions are located in Metro Vancouver. Over 270 producers work in fields such as industrial operations, energy management, and green power generation. Major markets for manufacturers include the U.S., Japan, China, India, and South Korea. South East Asia and Europe are also export markets for BC-based manufacturers.

Rural communities in British Columbia face challenges such as shortage of workers, aging population, slower growth rate, and community capacity. Other issues include job opportunities for young people, more limited access to infrastructure, and lack of paved road networks.

Overview

British Columbia is the home to rural and urban communities which results in uneven economic development. On Vancouver Island, for example, the towns and cities are the home to the majority of the population while the rest live in small isolated communities that are difficult to access. Many in these remote areas were previously employed in resource-based sectors such as forestry and fishing but these occupations saw a considerable drop in employment over the years. People moved to towns and cities in search for jobs which led to population decline. This also resulted in population aging across rural Canada. Data shows that the labor force dwindled by 23 percent from around 1,475,000 to 1,132,000 in the period between 2001 and 2016. At the same time, the number of people close to retirement increased by more than 40 percent.

Challenges That Businesses Face

Businesses operating in remote rural areas face multiple challenges. While they see a tourism potential here because of unique cultural and geographic specifics, some communities are hard to reach due to the lack of paved roads while others are not accessible. Basic infrastructure is also lacking, including electricity, running water, telephone lines, and banking institutions. Developing infrastructure and making these communities accessible are the keys to economic development. The problem is that it takes time and resources to build infrastructure. The main challenge that municipalities face is limited budgets to finance multiple and often competing priorities. Grant funding is not always available to build and maintain wastewater and water systems, roads, and municipal buildings.

In comparison to companies in urban areas, businesses here are usually smaller and require a larger amount of labor, making less use of innovative technologies. They also face logistics problems mainly related to availability of financing, distance to potential markets, and lack of skilled labor force. Outside support is often lacking, and small businesses have learned the importance of self-reliance.

One problem is that they offer a limited selection of products and services, which makes diversification all the more important. For companies that operate in the tourism sector when tourist arrivals decline, they are forced to downscale or shut down. They also suffer due to the lack of essential infrastructure that tourists expect to see in rural communities, including running water, grocery stores, and banks. In some places, these enterprises are seasonal, which affects their relationship with partners, distributors, and suppliers. Given the remote location of some rural communities, tourists visiting them are usually not repeat customers. Because of this, experts highlight the importance of cross-marketing where local businesses come together when targeting customers.

What Can Be Done

One solution may be to attract skilled workers, including Indigenous people, newcomers to Canada, and young people. Retaining migrants is also important. When they find themselves out of work and long-term unemployed, they reach out to the local authorities for help. To retain workers moving to remote communities, local governments must also ensure that basic services are available. Such services and facilities are, for example, recreational and sports facilities, child care, public transit, and libraries. There is also shortage of affordable housing in some areas.

Retaining skilled workers is essential for businesses that lack not only financial but human resources. Local governments can form partnerships to share knowhow and resources, which will help strengthen their capacity to support community members and businesses that need assistance.

Resources about Finance

https://www.smartborrowing.ca/

https://www.smartborrowing.ca/best-secured-credit-cards-in-canada/

British Columbia Economy

British Columbia Rural Communities