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While businesses across the country are projected to struggle over the coming months, the long-term economic health of Strathcona County remains strong.

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According to recent data collected by Statistics Canada and distilled by the Canadian Chamber of Commerce, inflationary pressures continues to be the top obstacle across all sectors.

“Inflation continues to be the top concern but attracting customers has gone up by five per cent, to 25 per cent, so now businesses are worrying about the ability of customers to purchase goods and services now,” Sherwood Park and District Chamber of Commerce executive director Todd Banks said.

Nearly half of firms in administration, accommodation, retail and manufacturing are also expecting a short-term labour challenge. While the outlook looks great for sectors such as healthcare, professional services, and finance, goods-producing sectors such as mining, oil and gas, manufacturing, agriculture, accommodation and food services, and construction have a less optimistic projection.

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On top of all of that, threats of U.S. tariffs are already having a dampening effect.

“No one wins in a tariff war,” Banks stated. “Tariffs will result in higher costs for Canadians and Americans, causing the price of goods and services to rise and creating pressures to raise wages as disposable income decreases. This could potentially trigger a recession as consumers spend less or go into debt to maintain their lifestyles.”

One quick service restaurant is currently acquiring as much stock as much as possible — pre-purchasing and filling their warehouse up now — to be prepared for their businesses’ peak busy season next summer.

“Instead of having a just in case inventory, they’re switching to overstock in order to keep the 25 per cent tariffs off their stock this coming summer. They’re spending more on their input costs and inventories in preparation for the tariffs,” Banks detailed.

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So, how can residents and businesses help the local economy now? Shop local.

While the shop Canadian adage has gained momentum within the past month in opposition to U.S. President Donald Trump’s tariff threats and talks of making Canada the 51st state, shopping locally doubles the impact. Shopping local reduces supply chain issues, creates local employment, grows the local tax base (thus reducing taxes), lowers prices due to increased competition, and allows businesses to donate more money to local causes and non-profit organizations.

“The Sherwood Park Chamber has been a champion of the Shop Local, Sherwood Park Campaign for many years with a major focus during the pandemic years where it was very successful with overwhelming support of our residents. The threat of U.S. tariffs has invigorated this campaign once again,” Banks said. “Buying local, provincial or Canadian whenever possible recirculates dollars within our community, province and country creating jobs and making Canada less reliant on international supplies. Growing our own economy protects us from external factors such as tariffs and other geo-political concerns.”

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Based on a retail market analysis conducted for Strathcona County, the area has a leakage rate of 13 per cent for products purchased by Strathcona County residents outside of the county.

“This can always be improved on, but this statistic shows that you can purchase most goods and services locally and that our residents do a ver good job of shopping local,” Banks underlined.

Local shopping habits could be improved in electronics and appliances (which have a 65 per cent outflow rate) and apparel (a 36 per cent spending outflow rate).

As areas such as Cambrian, Ardrossan, Hillshire build out and with the construction of Bremner starting soon, Banks said construction companies will require more trade workers to create the new residential and commercial areas and there will be a positive spin-off effect for the local economy.

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“Many of the same businesses that supply goods and services to existing residents will be required in the developing areas to ensure they are local and convenient,” he said.

Acknowledging that Strathcona County is a great place to do business, the Chamber executive director outlined a number of policies that could bolster the local economy, and those include:

• Having less restrictive on-site signage policies from Strathcona County, which will allow owners to market their goods and services.

• Allowing billboards within the county, which will allow businesses to advertise — especially in the industrial areas where there are no residential neighbourhoods nearby.

• Conducting a comparison study to see how business taxes have increased annually versus residential taxes for the past 20 years and work to balance the tax increases.

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Overall, the key to the future economic success for both Strathcona County and the Edmonton capital region is fostering a competitive business environment, which includes good supply chains, labour availability, affordable business space, reasonable insurance and utility costs, and increasing options for shipping and receiving logistics.

Residents and businesses can help by exploring and researching local businesses, shop locally online, eating locally, and sharing experiences with your friends.

“I’ve lived in six provinces and I’ve never seen such entrepreneurial spirit as I have in Alberta,” Banks added. “In some other provinces, people wonder how others start a company. It doesn’t seem attainable or the perception is that it’s hard to start a company, but here in Alberta, we just do it. That’s one of the top advantages that we have here, our entrepreneurial spirit to grow a business and bring about all the benefits to a community that a business creates.”

lmorey@postmedia.com

X: LindsayDMorey

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