Mayor Speaks of Business Challenges in these Unstable Economic Times

At the recent NewWestminster Economic Forum, Mayor Patrick Johnstone spoke about the current crazy and unstable economic environment having a great impact on people's buying habits and on business investment and success. He speaks of three major contributing factors to these challenges. The pandemic, he says, caused shifts in buying habits. For example, for many restaurants, a large portion of the business is take-out now. Movie going has changed too. People can stay home and watch almost any movie on streaming services. The “on again off again tariffs” imposed by the US, he says, creates havoc for businesses – their only safe move being to stop doing anything new and in some cases having to cut back their products and services, and sometimes their staff. The high inflation rate has also reduced people's income. They buy less of what they need, and drop discretionary expenses. Not an ideal situation for business and business investment. The high inflation rate and tariffs are also having an effect on building construction. Costs have gone way up making some construction projects not viable at the moment. He also speaks to the the need for more affordable housing – important for business in finding and keeping workers. He also mentioned that the difficult economy makes commercial space construction a challenge. He says the current available space for business in the city is very limited. On the plus side, he says that the city has great resiliency. This quality has been recognized by BC Business Magazine more than once, he says. He speaks to this resiliency, and how the city has worked to invest in the things that make this possible.