B.C.’s economy is far too dependent on its resource-based industries and needs to diversify if it hopes to fuel sustainable growth, according to a new report by the Institute of Chartered Accountants of BC.
The report reveals that almost half the jobs lost during the recession (23,000) were in the province’s manufacturing sector, many in traditional resource-based commodities such as forestry and mining.
“What the report highlights is the cyclical nature of B.C.’s economy due to our dependence on resource industries. We also have an economy that lags in productivity,” said Richard Reese, the institute’s CEO. “Growing other export sectors, such as tradable services and continuing to invest in education and infrastructure are two things we can do to ensure long-term economic sustainability and improve living standards.”
The report said an economic boom in the years leading up to the recession resulted in a massive five-year build up of jobs in B.C.
The province created 196,700 jobs in those years, but in 2009 when the economy collapsed, almost 55,000 vanished.
But not every manufacturer languished during the recession.
Burnaby-based Williams and White Inc. began diversifying its client base before the market crashed. At the time, the company’s machining division was largely dependent on the province’s forestry sector.
CEO Justin Williams said when the U.S. housing market began to falter the company pursued new clients in the high-tech and food sectors, and pushed its specialized automation division. That helped the 30-employee outfit stave off the worst of the recession when the forestry sector collapsed, Williams said.
“In this recession it’s not like no one is working,” he said. “The majority of us are still working. Projects are still happening, maybe not to the same degree, but you may have to look a little harder.”
Check out this week’s edition of Business in Vancouver for more about Williams and White and B.C.’s manufacturing sector.