Diversified economy helps city during pandemic

Hey there, time traveller!
This article was published 20/08/2020 (1966 days ago), so information in it may no longer be current.

Going into 2020, Brandon was on a normal growth trajectory, with no indication of an economic downturn.

The industrial base and the events sector looked positive, and the retail and commercial component of the economy was growing, said Sandy Trudel, the City of Brandon’s director of economic development.

“Not only in Brandon but globally, there’s been a cooling in the housing market, and that translates down into the construction industry,” she said. “There were some of those indicators but, overall, we had approached 2020 with what we considered a normal growth trajectory.”

COVID-19 has had a significant effect, but Brandon is fortunate because it has a diversified economy. Some sectors were hit hard and fast, such as the service industry. The industrial base is stable, though it had to adapt to new protocols. There were also some supply chain constraints. But overall, Trudel said a large component of the industrial base is simply continuing to do business as it did.

“Certainly there were some cooling of projects that were planned for 2021 that our local companies were going to be supplying for. As the global economy contracted, so did some of the projects,” Trudel said.

Brandon also serves the agricultural sector, which continues its business, while the post-secondary educational sector took a hit. The health-care sector is going strong and steady.

“A diversified economy has served us well because one sector takes a hit, other sectors stabilized. Then as those sectors continue to gain strength, we get back to a closer-to-normal economic outlook,” Trudel said.

The sector that has taken an intense hit — one that Brandon has increasingly depended on — is events, and with the cancellation of the usual program for the 2021 Manitoba Ag Days, held in January, a collective groan could be heard across the city. It suggested COVID-19 would not be contained to 2020.

Tens of thousands of people descend upon the area for that three-day event.

“I think it’s been up to something like $300 million in direct and indirect sales for the ag industry that is started with Ag Days,” said Brandon Chamber of Commerce president Spencer Day.

“Not to say that all the purchases are going to be lost, but you’re definitely going to see some farmers that are going to be postponing purchases if there’s no show this year.”

Day said that will be felt in Brandon, Westman and Western Canada.

However, the ancillary spending — an estimated $50 million in retail, restaurants and hotels — will be felt by local businesses and their employees.

“I used to work in the hospitality industry myself,” Day said.

“I remember working those three days every year. It was a great time to be a server or a bartender and have a lot of extra disposable income to spend back in the community.”

Day said the business community is feeling the pressure from all directions. The mandated closures led to revenue loss. Businesses now must endure additional expenses for personal protective equipment, hand sanitizer, cleaning and disinfecting protocols and Plexiglas shields. They are short-staffed because as soon as one employee exhibits the signs of a cold or flu, they have to be tested and wait for the results at home. There’s also the matter of CERB, with some employees making more income than when they were working.

“And there’s just so much uncertainty for consumers, too,” Day said. “Especially with the number of spikes in Brandon in the last week to two weeks. People are a little more hesitant to visit local businesses and head out to the retail stores or whatever the case may be.”

Business owners are dealing with the repercussions of COVID-19 one day at a time.

“We cannot afford another mandated closure. We cannot afford to take any steps backwards,” Day said, adding, “we’re better educated and better equipped to live with the virus,” echoing the province’s stance.

He said the number of businesses mandating mask usage seems to grow by the day, with more than 70 late last week, which shows the commitment the business community has to staying open. Steps backward, such as a mandated closure, would cause a large number of businesses to go under. He suggests Brandonites support local businesses, while respecting the policies in place to protect against spreading the virus.

“They need us right now more than ever,” he said.

Trudel said there isn’t enough data yet to fully understand the far-reaching economic implications of COVID-19. From lockdown to reopening, which saw people expressing a pent-up desire for purchasing, to the present, where there is a heightened sense of caution, she describes a roller-coaster experience.

“It’s a roller-coaster we continue to ride,” she said. “We know there are implications, but to what degree is still an evolving matter.”

 

» mletourneau@brandonsun.com

» Michele LeTourneau covers Indigenous matters for The Brandon Sun under the Local Journalism Initiative, a federally funded program that supports the creation of original civic journalism.