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The Observer | Saturday, February 16, 2008
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VOLUME 13, ISSUE 07
SATURDAY, FEBRUARY 16, 2008
www.ObserverXtra.com
PRICELESS
Another heavy snowfall takes its toll
sNOWED UNDER the latest round of heavy snows appears to have been too much for this st. Clements-area barn. thursday morning, workes cleared out what remained of the structure on Lobsinger Line, just west of moser photo | maRC mIqUeL heLsen Young Road.
Region’s economic storm cloud likely to pass BMO deputy chief economist bullish on local prospects in report by Canada’s Technology Triangle VANESSA MOSS Waterloo Region’s economic forecast may look bleak now, but the future is brighter here than in many other parts of Canada, according to a new report by BMO and Canada’s Technology Triangle Inc. “Over the course of 2008, the region probably has as big challenges as most of the rest of the province, but looking beyond just that short-term cyclical issue, I think the re-
gion is very well positioned to outperform the rest of the province and indeed the rest of the country over the medium-term,” said Doug Porter, deputy chief economist for BMO Capital Markets. Porter was in Kitchener Tuesday to outline details of the report, entitled “Waterloo Region and Guelph: Short-Term Pain, Long-Term Gains.” He said that although the local area is suffering from Canada’s weak export growth and high dollar, its various eco-
nomic strengths should come to the forefront once the U.S. market gradually recovers and the Canadian dollar falls – a turnaround Porter predicts will be underway by 2009. Some of these regional strengths include a good industrial mix, a skilled, highlyeducated labour force, strong financial and educational sectors, and of course, the presence of notable high-tech companies, which Porter suggested will continue to grow by leaps and bounds.
Another positive is the region’s relatively affordable housing market that could attract people from other areas of the country, especially Toronto, where costs are much higher. Also indirectly affecting the region is the build-up of the new Toyota plant in Woodstock, just a short drive west. “It can still help support employment growth in the region and consumer confidence and spending as well,” Porter said.
While this list of strengths seems promising, Porter cautioned that there is still a dark cloud looming over the country that could limit Waterloo Region’s economic recovery. Even as he spoke in Kitchener Tuesday, yet another autoparts maker, Kitchener Frame Ltd., was reeling from the announcement of a possible closure that would affect 1,200 workers. “Because of Kitchener-Waterloo and Guelph’s heavy See ECONOMICS page »04