Local manufacturers want to expand but also see more industrial development

By Collin Gallant on May 17, 2025.

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Most manufacturers in the Medicine Hat area are planning to expand their operations, according to a new survey, but they place attracting new large industrial plants to create spinoffs at the top of their wish list for the local economy.

Medicine Hat Economic Development released its report on the current state of manufacturing in the region, showing 18 per cent of respondents were already in the expansion process, with another 43 per cent considering growth likely. About one-quarter felt stable and six per cent in decline.

Workforce availability was the top concern and should be the top priority to aid the sector, but also felt further diversification and the addition of a large industry were the biggest opportunities.

“Expansion in large industry and manufacturing facilities (were) mentioned by 59 per cent of respondents,” according to the report, released on Wednesday. “Specifically, attracting large scale facilities utilizing the land availability and exploiting the ‘Medicine Hat Advantage’ were frequently cited.”

One respondent summed up, “We need to attract large primary business that allows smaller secondary businesses to grow,” via spinoff benefits.

The energy transition was mentioned by half the respondents as an opportunity, while aviation development – another key pillar of the new economic strategy – was one of the least-cited areas of potential growth among business owners.

“The history of manufacturing in southeast Alberta coupled with the expertise in the region provides significant opportunity for industry growth,” the report concludes. “Survey respondents demonstrated resiliency and determination while looking to the future of their operations, seeking engagement in industry development initiatives to support regional economic growth which, ultimately, supports business growth.”

City real-estate officials told a committee last month an updated real-estate strategy will key on keeping land available for industrial development, but sinking money into projects today with the hope of future deals was risky considering carrying costs.

As it is, future plant development can take several years from proposal to construction, and land in the city’s northwest could be serviced in that timeframe, officials stated.

Over the last year, the city’s economic development office surveyed business operators and held industry round tables to further a new set of priorities in conjunction with a regional strategy to lure investment and bolster economic activity.

Cypress County, Redcliff, the Palliser Economic Partnership, Medicine Hat College and Southeast Alberta Chamber of Commerce worked to determine the current landscape and challenges for manufacturers, aerospace operators, value-added agriculture opportunities among others.

The report recommends facilitating collaboration between existing industry, advocate for expanded trade opportunities and infrastructure, and targeted workforce development.

Work should also proceed to raise the profile of the region as a potential development site for the private sector.

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