Cost to land St. Thomas Volkswagen EV plant revealed

Justin Trudeau and Doug Ford will be in the region today, joining Volkswagen AG execs to unveil details about the recently announced VW electric battery plant in St. Thomas. But the bigger buzz yesterday surrounded the unveiling of details regarding federal subsidies to land the plant: up to $13 billion over a decade and $700 million in grant money. The money is considered a matching offer to what the company could have received south of the border via the Biden administration’s Inflation Reduction Act had it located the plant in the U.S. Sources told the CBC that the Canadian incentive programs were essentially designed that way ― if the U.S. had reduced its incentives, Canada would follow. The government is defending the massive investment as a generational transformation for Canadian automotive industry. “When you see a transformation in history like that, you have to seize the moment. You lose that, what's going to happen to the auto sector? What's the cost of inaction?” said Innovation Minister Francois-Philippe Champagne on Thursday. 

The upshot: Yes, generational investment, progress for the economy, and so on ― but any way you slice it, $13 billion in subsidies for a single plant is an enormous amount to give to a company whose profits were themselves in the billions last year. Defenders of the investment suggest that in the new industrial economy, it’s just the price of doing business; critics from the conservative ranks did their best left-wing impression with complaints about “corporate welfare.” But for the government, it is seen as seed money to spur knock-on industries, attract future plants and claim a leadership spot in the EV race. The plant is expected to open in 2027 with up to 3,000 workers.

Read more: CBC | Financial Post

Info-Tech Research Group cracks top three on LinkedIn ranking of 25 best workplaces to grow a career

London-based IT research and advisory firm Info-Tech Research Group has been ranked by LinkedIn as the third best workplace to grow your career in Canada. The methodology for the Top Companies 2023 ranking looks at components like how employees are advancing both within a company and when they leave, how they’re upskilling while employed there and how companies help people get ahead in their careers. “We are sensitive to the talent attraction and retention challenges facing organizations across every industry. As such, now is a critical time for organizations to remain committed to providing opportunities for ongoing learning and offering a collaborative, inclusive work culture,” said Shawn Gibson, Info-Tech’s associate vice president of HR operations.

The upshot: This is a big win for the London-rooted firm, which also has offices in Toronto, Australia, the UK and a just-opened Arlington, Virginia facility. Despite an uncertain economy and challenging labour market ― and plenty of negative news on the tech jobs front ― Info-Tech has experienced rapid growth over the past few years, expanding its workforce exponentially while still meeting the less than 10 per cent attrition as required by LinkedIn data to be eligible for the list. With a growing global footprint, the businesses founded by Joel McLean September of 1997 now has over 1,300 employees.

Read more: LinkedIn

Ontario invests $2.1 million in two area manufacturers

The Ontario government is investing more than $2 million in two local manufacturing companies, London’s EDGE Automation and St. Thomas’ Takumi Stamping, in support of around $14 million in planned capital investments by the companies. Through the Southwest Ontario Development Fund, the province is investing $778,000 with EDGE to support the building of larger production facilities, and $1.3 million with Takumi for plant expansion. “At a time of economic uncertainty and rising costs, the funding helped make our expansion plans more financially viable,” said Gerard Regier, president of EDGE Automation. “The expansion will help us create local high-value jobs and reinvest into our employees.”

The upshot: The government pointed to this investment, as well as their work on the Volkswagen file, as examples of support for the region’s manufacturing sector ― something that’s been a key focus of this government’s policy in recent years. According to the companies, these investments will hopefully support around 78 new jobs. Of late, both the feds and the province have taken a much more active approach to industrial policy in Ontario, particularly after the pandemic exposed weaknesses in the supply chain. The investments also pair with manufacturing tax credits announced in the recent provincial budget, all aimed at shifting more momentum back into domestic manufacturing.

Read more: Ontario.ca

Apartment rents continue their upward climb

London’s rental rates are up...again. Rentals.ca released its latest snapshot of the market from this past March, indicating the year-over-year rent for a one-bedroom apartment jumped a staggering 27.3 per cent to $1,767, and two-bedroom rents jumped 24.3 per cent to $2,119. (The usual caveats apply: the Rentals.ca data captures a snapshot of the listings market, which may be skewed up or down month-to-month.) The factors are well-known by this point: inadequate housing supply, rapid urban population growth, rising interest rates and regional student demand mixed in energy costs, landlord behaviour, municipal red tape, etc.

The upshot: News about rent trends in the city has been of only type for the past few years ― concerning. And amidst a prolonged labour crunch, some are starting to question how rents are impacting available talent ― something London needs ample supply of to keep up with ambitious growth plans. Steve Cordes of Youth Opportunities Unlimited wondered how the city was supposed to keep its younger population: “People with part-time jobs or earning minimum wage, how can they pay for an apartment?” he asked in a Free Press article. It’s worth noting, however, that this is far from a London-centric problem. With major centres around the country all grappling with the same overarching issues, Forest City rents remain cheaper than more than 15 other Canadian centres. 

Read more: Rentals.ca | London Free Press

Curley Brewing Company closes its doors...for now

London is one craft brewery lighter: Curley Brewing Company on Hyde Park Road has closed. Though hopefully not for good ― in a short goodbye note posted to Facebook, the brewery only said that their time at 1634 Hyde Park Road was ending after five and a half years. “This is not the end, just the beginning of something new,” wrote owners Kelsey Watkinson and Nigel Curley. Curley Brewing first opened in 2018 under the concept of a vegan “craft beer café,” and gained a reputation for tart creations like Relish, a pickle-flavoured sour.

The upshot: Local craft beef aficionados are hoping this isn’t the end of the unique nano brewery and eatery. With plenty of development going on in the area, including a residential project proposed for the strip mall where Curley was located, folks are hopeful of an eventual reopening, though the owners haven’t given any firm indication one way or the other. 

Read more: Canadian Beer News

Community and businesses rally around Black Walnut Bakery Café

A long-time Wortley Village standby, the Black Walnut Bakery Café, was demolished after a fire that ripped through the building early Sunday morning, causing an estimated $2 million in damages, according to London Fire Department. The blaze was immediately deemed suspicious by fire marshalls, and on Tuesday a 20-year-old man was arrested and charged with two counts of arson. “It’s a devastating loss for the community,” said Ed Etheridge, who co-owns the business with his sister Mandy Etheridge.

The upshot: It’s a significant gut punch to the Wortley community, that’s for sure. But they don’t seem to be taking it lying down. Etheridge said that they are definitely planning to rebuild the café, and the community is pitching in to help, with around $8,700 raised already to support the café through an Old South/Wortley Village Business Association-led recovery fundraiser. Luckily for patrons and the bottom line, the Black Walnut has a second location downtown at Richmond and Piccadilly streets, as well as a small coffee counter at Western’s Discovery Park to help them through. Local coffee shops Sidetrack: A Wortley Café and Locomotive Espresso also launched a campaign that will see $1 from every drink sold on Wednesdays until May 17 go to the recovery fund. Click here to contribute to the fundraising campaign.   

Read more: Global News | CBC London

Dispatch: April 21, 2023

A summary of recent business appointments and announcements, plus event listings for the upcoming week.

View listings here