Page 2 — Terrace Progress Edition 1997, February 26, 1997 Terrace poised to continue its role as regional centre By KEN VELDMAN OVER THE past decade, Terrace has ex- hibited one of the strongest local economics in British Columbia. A business centre for a third of the province, the community has developed 4 strong retail and service sector on (he back of a stable set of northwest manufacturing industries. This will continue over the next decade, notwithstanding a few crucial unknowns. that will factor into the mix. Before we gaze into the future, we must understand the past. Ten years ago, Terrace was struggling oul ofa devastaling recession that hammered many of the province’s resource’ communilics. Since then, greater Terrace has. grown from 17,390 people to approximately 21,500, an increase of 24 per cent, The previous decade saw an in- crease ofS percent. , Three factors contributed. First, highways were significantly improved, especially to the -north and west. Year-round access to and from Terrace from throughout the region is much more dependable, Second, primary industries in the northwest remained very stable. Expenditures of the asso- -Ciated businesses and the expenditures of their employees were also very slable. Third, a regionalization trend persuaded many businesses and govermment agencies to con- solidale their northwest operations in Terrace. This was made possible through improved telecommunications technolcgy and highways, allowing businesses to operate much more cost efficiently by serving the entire region from one central location. Accordingly, Terrace’s economic growth con- ceitrated in retail, business services, industrial supply and = transportation/distribution —in- dustries. Along wilh this came an increased awareness that Terrace’s trading area includes ‘the industries and communilics of the entire ‘northwest. In other words, whal’s good for the region is good for Terrace. Moreover, this has allowed the local economy diversify by lessening its sole dependence on forestry, and adding aluminum, pulp, paper, -methanol and mineral production to its base. Investment intentions indicale these trends ‘will continuc. We'll likely see the construction of several ‘big box’? retailers in Terrace with business plans aimed at the regional market. Given the dependency of the retail sector on ihe bigger economic picture, this suggests the “marketplace has confidence in the economic fu- * ture for Terrace and the norlhwest. The introduction of these retail heavy hitters will solidify Terrace’s role as a regional centre, Ken Veldman but if will also change the local retail landscape. The presence of big name stores tends to in- crease the number of shoppers coming in from the rest of the region, increasing the potential market for all retailers. Existing local retailers may be forced to adapt their product mix and marketing plans in order to deal wilh the competition. Those who are successful will be those who are able to take full advantage of the increased regional market. On a cautionary nole, ihe region’s base in- dustries wil] nol achieve the same stability as they enjoyed over the previous decade, The forest industry appears to be entering a period of substantial uncertainty that makes it difficult lo forecast the next couple months, much less the next decade. A series of regulatory and market changes have made norlhwest operations extremely marginal al the present. Given the importance of the forest industry to the northwest’s economy, Terrace’s future is linked closely to finding short-term, and, more importantly, long-term solutions. But the number of industries is poised to grow. The proposed Pac-Rim LNG plant pro- posed for Kitimat (and its 200 full-time jobs) will be an impressive addition to the region’s stable of basic industries. The demand for natu- ral gas products in Pacific Rim markets bodes well for the heavy indusiry/commodity export orientation of Kitimat and Prince Rupert, and may lead to additional facilities in the region. Tourism has been historically underrated in the resource-oricnted north. Yet the potential for soft adventure and ecotourism is great, and is slowly beginning to develop, Historically, the ~ industry has depended on smal] businesses and local talent to exploit this potential. The encouragement of tovrism and entrepre- neurism as a carcer in our education system will We have now stationed a weight truck c/w 10,000 kg. test weights in the Terrace area. Certified by dept. of weights and measures. To Serve You Better Northern Scale Co. (1956) Exclusive Dealer For Western Scales 1-800-696-8866 be a vital factor in the industry’s development, The development of a major attraction such as Seven Sisters Veunture’s proposed wilderness resort will greatly accelerate this process. Mining has the potential to become a major industry for Terrace through its role as a service and supply centre and as a gateway to the region. Promising ore bodies to the north could become major economic generators given the right mix of regulation and infrastructure from the provincial government. However, given cur- rent attitudes toward mining, the necessary in- centives seem unlikely to appear. The current growth of telecommunications technology and infrastructure will allow knowledge-based iocal companics to become more compelitive in global markets. Informa- tion and ideas are now transported in- stantaneously, making. the choice of business location somewhat irrelevant. The growth of these kinds of companies will be a major good news story for Terrace over the next decade, The importance of lifestyle in this decision will demand that Terrace view its recreational, health and education services as strategic asscts in order ta remain competitive. Moving the airport from federal to local con- trol should be relatively seamless and there is the possibility of more aggressive route devel- opment. Of more importance is developing the air- port’s reserve lands to light industrial uses such as warehousing, service shops and other distribution-related industries. Subsequently, many light industrial properties tear the downtown will be developed as commercial properties, Provincial and federal financial woes will likely mean less services located in Terrace in the fulure. The regionalizalion trend that favoured Terrace over the last decade may mean the provision of services out of Prince George or Vancouver. These financial woes will likely mean a sub- stantial lower level of infrastructure building, i.e. highways aud ferries, as well. Can Terrace sustain its current pace of eco- nomic growth? If so, the population of greater Terrace will nudge 27,000 people, an increase of 6,000 over the mimbez here now, However, Terrace, the northwest, and B.C. must make a concentrated effort to provide a business environment thal allows those funda- mentals to operate and keeps us competitive. If we do, we can expec! more of the steady growth that made the last decade one of the goad anes. Ken Veldman is the economic development afficer for the City af Terrace. Plentiful Preserves PRIVE WINNING ANTIPASTO, JAMS AND CHUTNEYS Phone # Jeff Town (250} 635-3259 3675 Walnut De Fax # ee GT (250} 635-0186 Come see us at the Farmers Market May - October Come into Home Hardware for all your house hold needs. * Electrical ¢ Plumbing * Lawn & Garden * Hardware * Heating * Tools 4818 Highway 16 W. 635- 7335 Pacific Cascade Consultants Ltd. P.O, Box 220 Terrace, B.C. 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