Myth: Industrial Business is being phased out — the future is tech

Today, Vancouver’s industrial businesses face increasing pressures. Many are at risk of being displaced from the city as the cost of doing business increases, the availability of industrial operating space diminishes, and finding and retaining qualified staff gets more difficult.

Industrial businesses form an important economic infrastructure that underpins all of our economic sectors while contributing to the overall economic resilience of Vancouver. Industrial businesses not only generate jobs and wealth, they also play a significant role in the social, environmental, and cultural well-being of the community. As part of our work to better understand and serve industrial businesses, the Vancouver Economic Commission conducted a citywide survey, and interviewed dozens of industry supporters.

Key Insights from our Research on Industrial Businesses

• Contrary to popular belief, the majority of industrial businesses in Vancouver are less than 20 years old, have been in their current space less than five years, and anticipate expanding in the in the next two years.
• Several trends are impacting demands on industrial space in Vancouver, including an increase in global demand for local goods & services, relocalization of supply chains & manufacturing, and new technologies for industrial operations.
• The biggest challenges faced by industrial businesses include: rising costs of doing business (taxes, fuel, wages, permitting & licensing fees); finding and retaining qualified staff; and finding appropriate and affordable operating spaces.

What’s at Stake for the Local Economy

If we don’t address the challenges facing industrial operators up to 50% of industrial businesses could be displaced from the city in the next 5 years, taking with them 30,000 jobs, $3.6 billion in annual revenues, and $1.2 billion in annual wages. Furthermore, the cost of goods and services in the city will rise as services move further from the urban core and traffic congestion and GHG emissions in the region will worsen. Finally, we could lose a variety employment opportunities, such as middle-income jobs requiring diverse educational backgrounds and jobs with lower barriers to entry.
 

Partners

This research is made possible by the support of our partners.