Jock Finlayson, Executive Vice President and Chief Policy Officer of the Business Council of British Columbia (submitted)

Jock Finlayson, Executive Vice President and Chief Policy Officer of the Business Council of British Columbia (submitted)

FINLAYSON: Government should focus on strengthening B.C.’s leading export industries

To revive the economy, this piece in the strategy is integral, writes Jock Finlayson

As Premier John Horgan and his cabinet colleagues explore options to kick-start the economy while the province slowly emerges from the COVID-19 crisis, they have several strategic options to consider. For example, they could seek to boost industries which employ the most people or those that underpin economic activity in the individual regions that make up the province. They could look to accelerate new business-startups or, instead, put more emphasis on encouraging existing B.C. companies to expand and hire more people. They may decide to double down on industries that have performed well during the pandemic – such as digital services — or, alternatively, concentrate on reviving sectors that have struggled.

One way B.C. policymakers can approach the task of economic recovery and re-building is to focus on the fundamental drivers of our prosperity, or what some analysts call the province’s “economic base.” A paper published by senior B.C. public servants in late 2019 defines the economic base as activities that “bring dollars into the provincial economy through exports of goods and services.” In a small jurisdiction like B.C., export-oriented industries are vital to sustaining and improving living standards. Without competitive export industries, B.C. would have far less capacity to pay for imports. We would also find it harder to grow local companies and the high-paying jobs which are abundant among export-capable businesses.

The industries which generate export earnings for B.C. are diverse. They include businesses in the natural resources and manufacturing sectors as well as others that produce services that are sold to out-of-province buyers. Some of these industries export internationally, while others mainly sell goods or services to the rest of Canada.

In 2019, the total value of B.C.’s exports of goods and services to all external markets – other provinces plus other countries combined – was about $118 billion. The table below divides total exports into four categories, based on the type of export (good or service) and whether it was sold internationally or to other Canadian provinces.

Goods sold to other countries are B.C.’s top source of export earnings. Natural resource-based products account for two-thirds of this category, with forestry providing the biggest slice, followed by ores and minerals, energy, and agri-food products. Several of these industries have been spearheading B.C.’s recovery from the pandemic-induced recession, with exports of lumber, minerals and natural gas all rebounding since mid-2020. Other B.C. products sold in international markets include primary and fabricated metals (notably aluminum), machinery, advanced technology products, and processed food. Our province also exports a similar mix of natural resource-based and other manufactured goods to the rest of Canada, amounting to around $13 billion in final export sales in 2018.

Turning to services, each year B.C. sells in the vicinity of $30 billion of services to other Canadian provinces. Included in this category are transportation, professional and technical services, financial services, and money spent in B.C. by both leisure travelers and business visitors from elsewhere in Canada. B.C.’s status as Canada’s dominant transportation and trade gateway to the Asia-Pacific is reflected in the high value of service exports to the rest of Canada.

B.C. also earns income by selling locally produced services to international customers. Again, these include transportation services, professional, technical and financial services, and spending by international tourists. Film and t.v. production is also on the list of international service exports. It, too, is contributing to B.C.’s ongoing economic recovery. Of note, prior to the arrival of COVID-19, film and television ranked as the fastest growing industry in the province in the decade to 2019. Education is another important international service export, with billions of dollars spent in B.C. by the 130,000 or so foreign students enrolled in B.C. colleges, universities and schools prior to 2020.

Rebuilding a strong economy after the COVID-19 crisis is a top priority for provincial policymakers. Creating an attractive business and investment environment for the industries that comprise B.C.’s “economic base” will be essential to meeting the challenge.

Jock Finlayson is executive vice president and chief policy officer of the Business Council of British Columbia

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Mandeep Grewal was gunned down outside an Abbotsford bank in October 2018. Police said a violent gang war to control drug-line territory was going on at that time. Drug charges have now been announced against seven people. (FILE PHOTO: John Morrow/Abbotsford News)
7 people face 38 charges related to gang drug activity in Abbotsford and Mission

Police say investigation began in 2018 into expansion of Brothers Keepers’ drug line

A memorial to former Abbotsford and RCMP police officer Shinder Kirk in Cedar, B.C. Kirk died in a car accident on Cedar Road in December 2018. (Chris Bush/News Bulletin)
Trial begins for driver involved in car crash that killed retired Abbotsford police sergeant

RCMP accident reconstructionist takes stand in trial of Conrad Nikolaus Wetten

RCMP
Vehicle in alleged hit and run ploughs into road sign in downtown Chilliwack

Police are looking for footage of a gold-coloured two-door Chevy car

The map shows the number of COVID-19 cases for the week of April 25 to May 1. The darkest areas indicate communities with a daily average of more than 20 cases per 100,000 population. (BC Centre of Disease Control)
Surrey and Abbotsford battle for top COVID hotspot in Fraser Health

Two communities are among areas across province showing highest transmission

One section of a bank of community mailboxes in Ryder Lake was stolen. (Facebook photo)
Brazen thief goes next level with mail theft in Ryder Lake

Chilliwack RCMP confirm a section of a community mailbox was taken off its base and removed

(The Canadian Press)
Trudeau won’t say whether Canada supports patent waiver for COVID-19 vaccines

‘Canada is at the table to help find a solution’

Flags flown at half mast out front of Fraser Regional Correctional Centre for slain corrections officer Bikramdeep Randhawa. (Neil Corbett/ The News)
Public vigil and flying flags at half mast done to honour slain prison guard

Maple Ridge corrections officer Bikramdeep Randhawa, 29, is being remembered in a number of ways

A sign indicating face coverings are required by the establishment is pictured on the front door of a business in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
A sign indicating face coverings are required by the establishment is pictured on the front door of a business in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
B.C. to start releasing neighbourhood-specific COVID numbers after data leak

Documents obtained by the Vancouver Sun show cases broken down by neighbourhoods

Provincial health officer Dr. Bonnie Henry and Health Minister Adrian Dix update B.C.’s COVID-19 situation at the B.C. legislature, April 29, 2021. (B.C. government)
B.C.’s COVID-19 case count creeps up, seven more deaths

445 people in hospital, 157 in intensive care

Summerland’s positive test rate is much higher than surrounding local health areas, according to internal BC CDC documents. (BC CDC)
Summerland 3rd behind Surrey, Abbotsford in daily per capita COVID-19 cases

Interior Health is rolling out additional vaccine availability to the community

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Amazon is pausing its Prime Day marketing event in Canada this year amid ongoing COVID-19 outbreaks at its facilities in Ontario. THE CANADIAN PRESS/Nathan Denette
Amazon Prime Day halted in Canada due to COVID-19 outbreaks in warehouses

The event was postponed to protect the health and safety of employees and customers, the company says

Ally Thomas, 12, seen in an undated family handout photo, died on April 14 from a suspected overdose. Her family says they are frustrated more public supports weren't available when they tried to get her help. THE CANADIAN PRESS
Minister says suspected overdose death of 12-year-old pushing B.C. to ‘do better’

Minister Sheila Malcolmson of Mental Health and Addictions says the government is working ‘as hard as we can’ to build a system of care for youths

Most Read