ECONOMIC OUTLOOK
ECONOMIC OUTLOOK 2012 In December 2011 the Chamber interviewed leaders in key economic sectors that are likely to have significant impact on our region’s economy in 2012. The Chair of the Chamber’s Finance & Taxation Committee Jason Ilijanic, TD Commercial Banking Manager, stated his forecast, “Relative to the rebound in the economy over the past year, stable to modest growth is expected over the short term, essentially keeping in line with expected performance of the broader economy. Interest rates are expected to remain at current lows throughout 2012, which is positive for borrowers alike and unappealing for investors who are searching for higher yields. Improved conditions are expected in the latter part of 2012 into 2013. The Canadian financial/banking system is strong, capital is present and competition has regained its footing over the past year or so, which bodes well for consumers and businesses. Many of our traditional local sectors have regained their footing since 2009/10 therefore showing improvement in several of our local economic indicators such as employment and housing. Our industrial/manufacturing base has rebounded reasonably well since that time in line with GDP growth and recovering automotive sales. The pace of growth in this sector could see some softening as pent up demand dissipates. It is positive to see other sectors experiencing growth; some of these include agriculture and related businesses, construction, transportation, and services. The greatest challenge remains consumer and business confidence and general economic conditions such as employment and spending.” The forecast for labour force in the Windsor-Essex region is positive, said
BY IGOR SILJANOSKI
Donna Marentette, Executive Director, Workforce Windsor-Essex. Talking about the challenges, she stated that “we may experience labour shortages for certain skilled trades and the Tool Mold and Die Machining field. Another issue is the need to attract young people in apprenticeship. New jobs will come from the agribusiness and possibly the winery sector as growth in the sector continues”. The manufacturing sector is expected to do well in the light of a healthy 2011 for the Detroit-based automotive companies. Reid Bigland, President and CEO of Chrysler Canada shared that optimism while speaking about the successes and the year ahead for his company. “The company has undergone a profound transformation in recent years, but commitment to delivering best-in-class products has never been stronger” according to Bigland. “Two-thousand-eleven has been a historic year for Chrysler Group LLC as we put our finances back in good order and regained our independence,” stated Bigland. “Chrysler Canada has played a big role in helping achieve this turnaround, manufacturing some of the company’s most significant products and achieving a solid growth of sales and market share.” Another bright spot for the region’s economy in 2012 is the construction sector where economic outlook remains very positive. The Windsor Essex Parkway project will take millions of labour hours to complete says Jim Lyons, Executive Director of the Windsor Construction Association. According to Lyons there is a significant investment made in the Industrial, Commercial and Institutional sector. Many of the approximately $300 million in construction projects will start in 2012. The outlook for the recently opened CS Wind and the wind energy sector is also
positive. Patrick Persichilli, Director of CS Wind shared his optimism for the sector and is expecting moderate economic growth for all sectors in the region. CS Wind, a manufacturer of wind energy towers is looking at a very good year with increasing demand from customers. One of the export sectors experiencing significant expansion is the greenhouse industry. It plans on adding 300 acres of greenhouse space worth between $150$300 million, creating 300-400 jobs. Cole Cacciavillani, owner of the CF Group of Greenhouses sees the expansion in this sector as an opportunity for additional economic growth as there are significant multipliers associated with the greenhouse operations. In the higher education sector, the University of Windsor has joined St. Clair College in plans to transform downtown Windsor into a vibrant intellectual community with student campuses planned for multiple locations. University of Windsor President and Vice-Chancellor Dr. Alan Wildeman in a speech to the Chamber outlined a program that will see a continued transformation of the physical appearance of the University campus and its expansion downtown, including the completion of the Engineering building, investment in the Armories, and the purchase of the Windsor Star property. The optimism coming from these key economic sectors is shared by the wider business community. Dr. Gerry Kerr, Associate Professor (Strategy & Entrepreneurship) at the University of Windsor is leading a study measuring business confidence in the WindsorEssex region. His latest report stated that “tentative optimism expressed in the prior year continues to be prevalent, with expectations about the local economy remaining overwhelmingly buoyant”.
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