Business conditions in the city were strained by high inflation and interest rates in 2023, according to observers, but both could lesson in 2024. In March the local Hudson Bay was one of the first in Canada to reintroduce the Zellers brand in a portion of stores.--News File Photo
cgallant@medicinehatnews.com@CollinGallant
Inflation kept consumers cautious and business owners hyper-focused on costs in 2023 while rising interest rates dampened expansion plans and construction, observers told the News as the year drew to a close.
Unemployment remained relatively low in southeast Alberta, power prices forced city council to reopen its rate-setting formula and the promise of agri-food development extending east from Taber was promoted heavily by the province.
That is providing some positivity to the outlook, as are several positive announcements along with a promise to renew municipal economic attraction.
Chief among several city initiatives is the restart of the Invest Medicine Hat office with hiring for senior positions that had been vacant since mid-2022.
“We’re seeing some challenges in the local economy,” said Selena McLean-Moore, the incoming head of the department that will return to investment attraction work this year.
“Our unemployment rate is low, and we’re receiving calls from employers looking to get support to find workforce.”
Housing challenges and inflationary pressure are “just hitting every body very hard.”
“Every penny counts.”
In 2023, the City of Medicine Hat applied for the federal housing accelerator program, is developing a regional economic strategy (due in May), and will renew its strategic plan for the Medicine Hat Regional Airport in 2024.
As well with Redcliff, Cypress County, Bow Island and the County of Forty Mile is piloting the “Rural Renewal” stream to help employers link with skilled immigrants. It is set to launch in March.
Sought-after skills range from lower-skilled positions in accommodation sector to technical workforce required for renewable energy construction and unmanned aeronautics sector.
Those are targeted areas of interest to sell the region for large industrial investment, according to McLean Moore, while “business retention and expansion” is also key in the Invest mandate.
Existing business owners are now evaluating their operations, with many considering retirement due to age, business conditions or lifestyle choices.
“Time” is a chief concern, said Lisa Dressler, executive director of the Medicine Hat Chamber of Commerce, adding that “cost and workforce are the two most common concerns for our members.”
“We’ve seen and uptick in new entrepreneurs,” she said based on business openings promoted by the chamber.
Highlights of the local economy in 2023:
– Provincial officials announced the construction contract for the Highway 3 Twinning to Burdett in the late fall and municipalities along the whole route are discussing water availability for potential agri-food development.
— The Medicine Hat and District Chamber of Commerce is set to expand into a regional organization after approving a merger with the same group in Brooks later in the year. Hatter Steve Heid will be the president of the new group.
– Aurora Cannabis announced it plans to repurpose the long-dormant Aurora Sun greenhouse project in Medicine Hat as part of its “Bevo” brand entry into the horticultural and seedling vegetable sector. An in-operation target date is mid-2024.
– Farm implement manufacturer, S3 Group, opened its Medicine Hat facility in the fall. The site in the SW Industrial area will employ two dozen workers assembling air systems for bins and equipment with an eye to eventually expand to a workforce of 100 and engage in product development.
– Hut 8 completed a merger that positions it as one of the largest cryptocurrency firms in North America, joining with US Bitcoin, and late in the year Hut 8 acquired power plants in Ontario.
– Cancarb celebrated its 50th year in operation in 2023 with visits for top officials of Tokyo-based parent company, Tokai Carbon, and a number of charitable donations.
– Royal Helium officially opened its purification facility near Princess, in Newell County, with refined production from its Steveville well shipped to customers in Colorado on Dec. 20.
– In real estate, home prices remained strong, though new home and apartment construction fell by about 50 per cent in 2023 compared to the previous year. New commercial projects remained on par year-to-year, though renovations fell by one-quarter.
