Although Sundre's commercial vacancy rates are relatively very low, many businesses are still struggling to make ends meet. Many factors have led to a very tough market.
Sundre is keeping its head above water despite the economic downturn, but it is a struggle. It is therefore important for people to keep capital local by either shopping locally or even starting their own local business.
As of the beginning of August, Sundre's combined downtown commercial vacancy rate sits at just 6.6 per cent. In fact, the commercial (C-1) district — basically the area in the core from bridge to bridge to bridge — is only four per cent, which is indeed quite low.
However, for the purpose of our studies, Sundre economic development calculates the rate from approximately the Town of Sundre office, east toward the Best Western hotel, plus Centre Street as well as the other side streets downtown. There are more than 120 units in this combined C-1 and C-2 zoned commercial area.
The effect of people shopping outside of our region has seen millions of dollars leave over the past several years (a comprehensive commercial study to know exactly how much is still required). The leakage of capital in this manner is an issue because when people shop outside of Sundre, they are essentially supporting the export of money not only out of the region, but also to companies out of province and out of country. The macroeconomic effect of this leakage cannot be underestimated.
Keeping capital local allows businesses to make more investments in upgrades (which require trades and craftspeople to complete), productivity (which improves business vitality), and jobs (which allows people to have disposable income to put right back into those businesses). The economic cycle is obvious.
There are 1,271 households in Sundre. If each one of these households made the effort to spend only $50 extra per month locally, this would contribute an extra $762,600 per year into the local real economy.
If each household spent even more that that, the effect would increase. You get the idea.
This would help businesses struggle less, which will keep our commercial vacancies low, which in turn will help attract more investment from outside and ultimately contribute to more growth.
Sundre is fortunate to have a growing tourism sector; this is contributing to our low vacancy rates. Sundre is the service hub for everyone heading into the West Country. This presents many opportunities for potential entrepreneurs. If you're struggling to find work — perhaps it's time to consider planning on starting a local business. This is the ultimate contribution to the local economy. Some of the steps required to start a business will be looked at in a future Eye on the Economy column.
So, there you have it. If shopping local is the easiest way to support your community and the local economy, starting a business is one of the most brazen ways to do it.
