Brantford businesses looking for solutions in uncertain times

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Uncertainty is the biggest challenge faced by businesses in Brantford and Brant County, says the president of the chamber of commerce for the two communities.

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A long-time Brantford realtor, John Oddi is familiar with the ups and downs of the market place and while the tariffs pose a major threat, it’s not all doom and gloom.

“I think it’s going to take awhile to adjust but once that happens and other things, like the removal of provincial tariffs happens, that will help alleviate some of the uncertainty,” Oddi said.

The way forward is to shop local, buy Canadian. It will help business and unite the country, he said.

Part of the solution is to get rid of inter-provincial trade barriers to help grow the Canadian market, he said.

For some businesses, increasing sales in the Canadian market may help offset the losses and issues caused by the tariffs.

Oddi said some businesses took steps to mitigate potential damage caused by tariffs a month or so ago.

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“I was talking to an RV (recreational vehicle) dealer who specializes in used RVs,” Oddi said. “Some of those dealerships when they caught wind of the tariffs, they bought product pre-tariff.

“Now that tariffs have been imposed he won’t be ordering anything.”

Oddi spoke to many dealers at a recent RV show and many said the only thing they’ll be ordering is parts.

Still, uncertainty is the Number 1 challenge faced by local businesses.

“It has been the Number 1 challenge for the past couple of months and will likely remain so for the foreseeable future,” John Oddi said. “With all that talk about tariffs, businesses were reluctant to make any major decisions especially in terms of expansion and hiring and are looking at ways to cut costs.

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“They’re also looking to diversify, maybe look at different markets”

No one really knows how long the tariffs will be in place and without some sense of certainty, most businesses will be reluctant to make any major moves, Oddi said.

The uncertainty also affects employees who are wondering if they will be still working in the next couple of months.

Employees will be facing the same kinds of decisions as their employers. They may find themselves deciding to put off the planned purchase of a new vehicle or changing their vacation plans, Oddi said.

David Prang, the chamber’s CEO, said the timing of the tariffs and their impact come at a difficult time.

“Businesses in Ontario, in Canada were struggling to invest in their growth,” Prang said. “The uncertainty created by the tariff situation is compounding their confidence to invest.”

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“How is growth going to come without investment?”

However, Prang and Oddi agree that there will be some businesses that will find a way to seize the opportunity and benefit from the tariff situation.

Companies that already do a lot of business in Ontario may discover they will be able to develop new markets across Canada if provincial trad barriers come down. That domestic growth could offset the damage caused by tariffs.

Businesses will have to search out new markets, Oddi said.

Andy Straisfeld, president and founder of MEA Health Corporation and Lifecycle Revive Inc., of Brantford believes an international trade director could help local businesses.

Speaking at the March 4 special meeting of city council, Straisfeld said a trade director could be based in the office of  the  city’s CAO or the economic development department.

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“This person could be the ambassador, the negotiator,” said Straisfeld, who is in the personal protective equipment recycling and plastic furniture manufacturing business. “We have an airport, we have companies that we have brought here from overseas and we have ties with international communities.

“We should be taking advantage of those ties.”

Brantford has twin cities agreements with Ostrow Wiekopolski in Poland and Kaminets, Podilski in Ukraine.

Ostrow Wiekopolski has logistics, machinery and textiles and Kaminets, Podilski has manufacturing, tech and agriculture sectors, which align well with Brantford’s economy, Straisfeld said.

An international trade director would pursue new trade agreements and enhance existing ones. As well, the director would raise Brantford’s profile globally to attract new investments and partnerships, Straisfeld said.

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“The director would work with the city, the chamber of commerce as well as the sectors of industry in Brantford and Brant County,” Straisfeld said. “The key here, is that Brantford needs to grow, to diversify and there’s nothing wrong with us aligning with other cities in other provinces and invite them to Brantford.”

A trade director would be the liaison or connector between international markets and local businesses.

Long-term solutions include the diversification of the local economy to make it less dependent on the U.S. As well, the focus of economic development could shift towards service industries that are not subject to tariffs, Straisfeld said.

Vball@postmedia.com

Over five weeks we are chronicling our community’s place in the country, the promise of greater prosperity, and the blueprint to get there. See the How Canada Wins series intro here and other related  local stories here.

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