Windsor’s slow-moving economic recovery is being met with cautious optimism by the chief economist of RBC Financial Group.
Speaking at the Windsor-Essex Regional Chamber of Commerce’s annual economic luncheon, Craig Wright said that improvements in key sectors of the U.S. economy will benefit the Windsor region as will massive infrastructure and non-residential construction investment. However, growth will remain slow.
“Construction of the Herb Gray Parkway, a new bridge, an aquatic centre and detention centre will all continue to provide support for consumer spending,” said Wright. (JASON KRYK / The Windsor Star)
“Construction of the Herb Gray Parkway, a new bridge, an aquatic centre and detention centre will all continue to provide support for consumer spending,” said Wright. “But the weak spot in the local economy remains job growth.
“While’s Windsor’s percentage improvement in job growth has outperformed the national average over the past two years, the local unemployment rate is still uncomfortably high,” said Wright. “But it is well down from its recession high and heading in the right direction.”
Wright also said that while Windsor’s housing starts correction during the recession was “brutal, harsh and early, it’s rebounding, which is a good sign.”
Canada’s role as an exporting nation means it is highly dependent upon the U.S. recovery and the good news, according to Wright, is that housing starts and automotive manufacturing, which are leading the recovery, are the two sectors which Canadian exporters benefit from the most.
“Lumber and auto parts make up a large percentage of our exports and those two sectors are where the U.S. growth is strongest,” said Wright.
Auto sales bottomed out at 9.5 million units during the recent recession, said Wright, and while projections are that they’ll hit 15.5 million units this year, some analysts are projecting a pre-recession bounce to more than 17 million units.
“If that’s the case, it’s a very important improvement for Canada, Ontario and the Windsor region,” said Wright.
Much-publicized shortages of skilled labour will continue to be a problem, said Wright, as Canada’s working population ages and more skilled tradespeople leave the labour force.
“Labour force growth will continue to be negative which will make it even more important for Canadian businesses to hold onto their best and brightest in the face of mounting competition throughout all sectors,” said Wright.
