Where to invest in Brandon in 2024

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This article was published 02/01/2024 (988 days ago), so information in it may no longer be current.

Sectors like metals fabrication and chemical production, and emerging fields such as biofuel production and hydrogen utilization, along with food processing and real estate, are Brandon’s fertile ground for investment in 2024, experts say.

The combination of these sectors, bolstered by local support strategies and a robust construction industry, sets the stage for Brandon’s growth.

The city’s economic development director, Gerald Cathcart, said there has been notable and substantial investment observed within metals fabrication and chemical production clusters in 2023 and more is expected in the new year, adding established sectors have drawn considerable attention and capital, signifying their importance and potential for growth within the local economy.

“Emerging areas such as biofuel production, hydrogen utilization, CO2 capture, and distribution/warehousing will be more prominent,” Cathcart told the Sun. “The investments in food processing, encompassing dairy, proteins and oilseeds, are expected to further expand within Brandon.”

The sectors often considered part of the evolving clean energy and sustainable development landscape, he said, are gaining traction and interest from investors due to their potential for environmental impact and profitability.

Brandon Chamber of Commerce president Jaime Pugh said construction stands as a primary catalyst for economic expansion in Brandon.

“As larger construction jobs involve more trades, this increases the cash flow and jobs that are available in Brandon,” Pugh said. “As cashflow increases, it flows out to the economy as a whole through consumer consumption.”

As routines return to normalcy, she said, an upsurge in Brandon’s tourism, driven by events like hockey tournaments and Ag Days, will favour local establishments such as hotels, restaurants, and retail outlets in the new year.

Pugh said Brandon’s economic prospects in 2024 are not only shaped by thriving sectors but also by transformative projects set to bolster the city’s growth trajectory. One such project, the Prairie Innovation Centre, she said, is poised to offer multifaceted benefits to Brandon.

“This substantial endeavour is not just an avenue for supporting local tradespeople but also a platform to equip future graduates with skills vital for roles within the city’s flourishing agricultural sector — a linchpin of Brandon’s economy,” she said. “Significant expansions at the Brandon Regional Health Centre and developmental strides at Maryland School, alongside the construction of two upcoming schools, are pivotal contributors to the city’s construction industry.”

These developments, she said, underpin a cycle of economic advancement, fostering increased consumer spending across various sectors.

The escalating trend of residential property prices within Brandon is also expected to create wealth for discerning investors in 2024.

Brandon Area Realtors president Zach Munn said owning a primary residence or long-term real estate investment can be a great tool to build wealth in the new year.

“I review our residential real estate data monthly and noticed in 10 years, the average price in Brandon has risen $46,155,” he told the Sun. “It doesn’t need to be an apartment block, but if you can own a primary residence or real estate long term, it can be a great tool to build wealth.”

Additionally, he highlights a significant contrast between the net worth of homeowners and renters over a decade. According to Stats Canada’s Survey of Financial Security, homeowners’ net worth surged from $327,700 in 1999 to $685,400 in 2019, whereas renters’ net worth rose from $14,600 to $24,000 during the same period.

However, amid these prospects lie inherent risks and challenges. On several macroeconomic factors that often sway investment decisions, Cathcart said the central one among these is the pulse on interest rates, where fluctuations directly impact borrowing costs and subsequently affect spending and investment patterns.

“Keeping a watchful eye on inflation, global economic outlook, commodity prices, currency exchange rates and government policies remains paramount for investors gauging market conditions,” he said.

Other factors that pose concerns for investors, Pugh said, are hydro and water.

“Hydro has been the topic of conversation for the past few years as it has prevented Brandon from being able to attract some larger businesses. We have been working with the government to get an action plan in place that will fix this issue,” she said

“Water has also caused some issues. We need to be able to supply water to new businesses for them to come to Brandon. This is always a topic with the city to ensure that we are planning to be ahead of the game when opening Brandon up to new business.”

RBC economist Rachel Battaglia said as the Bank of Canada moves to cut interest rates, a lot of that pressure is going to be alleviated, creating more of an opportunity for businesses and households as the economy turns over into more of a recovery growth phase.

“During hard times, people mainly pull back on non-discretionary spending,” she said. “Businesses like restaurants, travel, tourism, those are going to be the first things that get cut when people have to re-evaluate their spending because of higher interest rates and the challenging environment.”

As Brandon navigates the complexities of global economic trends and local challenges, Pugh said the city continues to demonstrate resilience and promise for investors.

“Vigilance, adaptability, and strategic support for local businesses remain crucial pillars in fostering sustainable economic growth amidst evolving market conditions.”

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