Through the cannabis production industry, Olds is moving in the right direction toward a stronger, more diversified economy, but that's not the total solution, a well-known economist says.
Todd Hirsch, the chief economist for ATB Financial, made that statement during an interview with the Albertan.
Hirsch was a keynote speaker during the PowerUp! Entrepreneurs Conference Nov. 6 in the Pomeroy Inn & Suites.
Five cannabis production companies have expressed interest in locating in Olds. One, Sundial Growers, held its official opening last month.
"I think it's a good start towards moving towards more diversity and that's what we really want to see in Alberta," Hirsch said.
"It's not a silver bullet that's going to solve the problem. But it's probably one of a series of things that are starting to happen that in small ways and large will all start to help diversify the economy."
Hirsch said because Albertans have been so dependent on the oil and gas sector for jobs, the sudden plunge in oil prices that occurred in about 2015 threw the economy in Olds and throughout Alberta "into a two-year tailspin."
"So coming out of it now, we have the opportunity for more diversity. Cannabis, I think, is one piece of it. It's certainly not the whole solution, but it's one piece of it and I think it should be encouraged and lots of legitimate business opportunities to be had," Hirsch said.
He agreed that other sectors to look at encouraging include computer or Internet related businesses.
"We may never get oil to tidewater. My guess is we probably will, but with a pipeline or without, this has been a real wake-up call -- this last recession for Alberta -- that we need to do more to encourage these other industries," Hirsch said.
"And in some ways, if oil prices stay where they're at, this makes it tough for the energy sector, for sure, and a lot of the people who depend on the energy sector, but it's also given a huge shot in the arm for these other industries that often compete with oil and gas for those workers.
"Sometimes it means looking at perhaps wages that are lower than a lot of those workers in oil and gas were making.
"But see the danger is, if oil prices were suddenly to go back up or we got the pipelines in place and everything's going great again, well, a lot of those workers might be pulled back into oil and gas again because they can make more money.
"Then green shoots of diversity get mowed down all over again and we're back on that same, nasty roller-coaster," he said.
"So I understand, I don't want to sugar-coat this too much; 2018 is still a really tough year for Alberta as we crawl out of the recession, and a lot of families and a lot of people are still hurting. But we are starting to see now the green shoots of more diversity in the province.
"That's what will set us up for a healthier, more balanced economy in a few more years."
