Manufacturing sector slows

Photo: Castanet Staff

Penticton’s manufacturing sector may be hitting choppy waters, but the local economy as a whole appears to remain mostly stable. 

Modular home manufacturer Metric Modular laid off 49 employees last week due to a “sharp decline” in orders. Across town a similar business, Moduline, laid off 120 workers in March. 

Castanet News has also been told of significant layoffs this month at Peerless Limited — a local manufacturer that builds trailers for the natural resource industry —  although the company has declined comment and the actual number of job losses is unclear. The Jim Pattison Sign Group shuttered its Penticton plant last year.

City of Penticton economic development specialist Andrew Kemp says in a seasonal tourist city, those manufacturing jobs are valuable. 

“Having employers that provide year round high-wage opportunities like those in the manufacturing sector is key to ensuring a diverse and robust local economy,” he said in an email.

The city’s job listing portal, StartHereOkanagan.com, saw 282 new jobs posted between July 1 and August 20. Just 20 of those were in the technical, manufacturing or trades industries.

“This is a substantial decrease from earlier in the year,” Kemp said, with the bulk of the roles posted falling into food service, healthcare and social services.

“We are working closely with the Penticton Industrial Development Association to support the sector’s needs and respond appropriately to business growth and retention,” he continued.

Despite the layoffs in manufacturing, there are other strong economic indicators being reported in Penticton. 

The construction industry remain hot, with 2019 building permits through to the end of July totalling $118M, up 14 per cent from the same time period last year. Two-hundred-forty-six multi-family housing units worth just under $50M have been approved this year.

Kemp says their talks with local businesses have more been regarding “the need for more labour to meet their business’s needs,” rather than anxieties about layoffs. 

According to the 2016 census, manufacturing is Penticton’s fifth-largest employer — behind construction, food services and accommodation and the two biggest; retail trade and healthcare and social assistance. As a result, Penticton’s economy despite its seasonality, is relatively diversified.

Kemp also pointed to a 2017/18 survey of Penticton business owners that reported four-in-ten actively were hiring and 87 per cent projected increased sales.