“A Window on the
Northwest”
May 21, 2006
Where is
Recent reports on the continuing plant closure and lay-offs in the
forestry, Pulp and Paper, and its impact on related business sectors, would
seem to indicate that the economy and population of
While 2003-04 population statistics for the city of
Let us first start with trends. A trend by itself does not predict the
future, but it is a strong indicator of what would happen if things continue
the way they are or have been in the past. They indicate direction and movement
that may be difficult to stop or reverse. The recent net growth in population (there
were more people actually moving in than leaving
The last two points are very important since they place our region’s
economy and future well-being into perspective. In fact, when we look at the
potential of this region for job creation, economic growth and therefore the
municipalities’ ability to maintain services with a steady tax base, we need to
look where these jobs are coming from. I believe it is a common understanding
that Northwestern Ontario is still largely reliant on resource industries
(approx. 40 percent of jobs are created in the
The rest of the jobs can be lumped together in what one may call service
industries (government, management, financial, health care, education, tourism,
etc.) with some manufacturing. Intuitively, most people sense that there is a
need to diversify our economy and broaden our tax base. One area that naturally
comes to mind for further expansion is manufacturing and tourism. Events such
as 9/11, SARS, high Canadian dollar, and high fuel costs, have had a negative
impact on the Tourism industry that has just recently started to turn the
corner. Recent announcements for investments in this area show that all levels
of government are taking this important part of our economy seriously and
continuous support of worthwhile projects will further strengthen our region.
Forestry, mining and manufacturing are being hurt by the high Hydro
rates and Canadian dollar. Recent closure and layoffs announcements by mills
and woodlands operations in the region facing untenable wood and electricity
costs are symptoms of larger problems that require a concerted effort by all
levels of government. The ripple effects of even 100 good paying jobs
disappearing are substantial, and over 1000 have been lost in the last year
alone. I believe most of the pessimism from the business community comes from
their direct knowledge of such economic forces hitting their bottom lines.
Given the above scenarios, it is reasonable to assume that growth in the
health and education sectors, along with that in Information Technology,
service industries and tourism cannot compensate for the past and future foreseeable
losses in the natural resource industries unless some aggressive steps are
taken by the various levels of government to address what economists call
structural weaknesses in the local regional economy. Organizations like the
North Superior Training Board, the Northwestern Ontario Associated Chamber of
Commerce, the Northwestern Ontario Technology Centre, our educations and health
care institutions and many others are taking up the challenge and doing
in-depth research in the critical factors that will allow this region to face
up to the new realities of a changing economy, and look for opportunities to
renew itself.
The current trends may not look well for us, but I believe in our
region’s great potential and pioneering spirit that has brought us the new
Frank Pullia is the Principal of
Pullia Accounting & Consulting and a former City Councillor in