Are you wondering if Ontario and Toronto markets will be sufficient for your business going into the next 5 or 10 years? Well, lately with our $ below .92, your first thought would be emphatically yes if you’re shipping to the US.
That 8 extra cents per dollar really helps some Ontario businesses. One expert believes the dollar will sink below 80 cents US so for many exporting companies in Canada, that spells opportunity.
Yet our unemployment rate has risen. Businesses can continue to focus on Ontario, or take a look out west where it’s pretty well booming.
Go West Young Man (and Woman)
Is this the right time for Ontario entrepreneurs/investors to look seriously at Calgary as a big additional location/opportunity? As a business revenue diversity and investment sourcing plan, it might be very wise. Calgary knows business people and investors want a piece of the action and they’re ready to help.
There’s big Canadian oil money here and these wealthy business people might be highly inclined to invest locally in Calgary. Many businesses are spreading out to build additional locations because the trend today is local. You must be present and active in that local market. And perhaps the key here is that it’s one way to get in front of huge Chinese and Middle Eastern investors. That one great connection could open up many doors.
Direct foreign investment into Canada has slowed because of our foreign ownership rules and high personal debt. Asia and Dubai are increasingly more attractive places to find a better ROI. Investors are avoiding Canada and sinking their funds into US bonds. The employment and economic data aren’t good either so the net result is no one’s interested in buying loonies.
Deustche Bank has stated that real estate values in Toronto and Vancouver are 60% overvalued. If Ontario slips, it could start an avalanche of mortgage defaults (if mortgage rates rise too) and what would that do to Ontario’s economy? Ya, huge risks here.
The new free trade deal with Europe is opening doors for Canadian entrepreneurs, but our auto industry is taking a huge hit. Is Canadian business aware, motivated and ready to enter the Euro market? Without investment money, innovation, and exploring new markets, Canadian businesses might be in for a rough ride.
More Big Money Looking for a Home
Chinese and middle eastern investors are buying Canadian businesses, pouring big money into high end real estate, and oil & gas production out west. China’s biggest bank just opened a branch in Calgary. That will increase opportunities from Chinese investors.
This all keeps Calgary, Edmonton, Regina and Saskatoon going strong and they’re expected to lead the country in growth. When the Keystone pipeline opens up, they will be selling a lot more oil, and as the Canada-China pipeline begins operation, they’ll be sucking all the oil out of the sands they can get.
Calgary Still Booming
Calgary has grown 500,000 people since I left there decades ago, now approaching 1.1 million. It’s industry has diversified, and Canadian Oil and Gas do not look they will ever bottom out again as long as the world doesn’t go into recession. Luxury home prices are higher than ever.
Calgary is a fascinating city, the but the West is very different. There are Asian, East Indian, and Russian communities there and everything is ultramodern. The money out there makes Calgarians very optimistic, believing anything can be done. That’s a pretty healthy personal and business atmosphere. But Calgary is isolated on the prairie, lodged up in the foothills of the Rocky Mountains. Winters are very cold and there’s not many trees. It’s dry. The landscapes are beautiful and the air is clean.
Given all this, you might say Calgary or even Edmonton might be ideal places to expand your business into. But if you are thinking of venturing into that market, you might want to network with Alberta based companies.
Due to the oil price rise, there are wealthy investors there and while many of them are investing around the world and in Ontario, they may invest in Calgary businesses if entrepreneurs presented their proposition expertly.