SPECIAL REPORT ECONOMIC DEVELOPMENT
As online shopping became more prevalent, the City funded organizations that not only help businesses set up websites, market their products and organize their supply chain, but also focus on the distribution chain to ensure that the merchandise is shipped to Montréal. "What we want," notes Véronique Doucet, "is urban delivery with smaller players, as it creates jobs and helps merchants by providing a lower cost solution that also reduces the carbon footprint." To support the cultural and creative sector, the City created a number of initiatives such as a project involving artists and content creators working in the digital sector. That led to exhibits of art works in parks and on building facades in the 19 boroughs, an example of the circular economy where the financial support and work of one sector benefits another. Winter displays were also created to brighten commercial streets and support local shopping during the holiday season. In the food service sector, the City is developing an alternative model of ordering and delivery, one that makes use of the social economy (see p.30).
It is also important to support small and medium-sized businesses: "99% of the economic fabric of Montréal is composed of small and medium-sized firms, more than half of which have less than five employees," noted Ms. Doucet. "We are not talking about multinationals that have the means to pay for such restructuring themselves, but about smaller companies that need support, a helping hand from the community." To that end, the Economic Development Service relies on its network of experts and consultants like PME MTL, as well as some 100 partners. The entire Montréal ecosystem is joining forces with companies to assist them during this transformation. Moreover, despite the current crisis Montréal remains attractive to foreign investors. In the first quarter of 2021, foreign investment amounted to some $622.45 million, the majority of it in the technology sector. In addition, the city has almost regained its pre-crisis level of employment, a performance that compares favourably with other Canadian cities. "We are convinced that with the collaboration of our partners, Montréal will not only regain its pre-crisis momentum but will also be able to establish a prominent position on the international scene," concludes Luc Rabouin.
TOWARD A MORE CIRCULAR ECONOMY Aiming for a greener, more inclusive recovery, the City of Montréal is accelerating the transition from a linear to a circular economy. An important step has been Montréal’s commitment as the first municipal partner in Fondaction’s Circular Economy Fund.
Launched on March 23, 2021, the $30M investment fund has been augmented by a $3M grant from RECYC-Québec and is a Canadian first. This venture capital fund will finance and support start-up companies in Québec that offer innovative solutions for the circular economy. Approxi mately 75% of initial investments will be in the agri-food, recycling, resource recovery and eco-construction sectors. Approved companies may obtain an investment ranging from $250,000 to $2M. Some might also receive a RECYCQuébec grant worth between $50,000 and $100,000. A STRONG MESSAGE Josée Chiasson, director of economic cluster development at the City of Montréal’s Economic Development Service, notes that "being able to create a leverage effect with a partner like Fondaction, which is able to raise additional capital, shows that the City is really sending a strong message."
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MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION
