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Red Deer City Councillors urged to focus on economic development

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Editorial submitted by former candidate for City Council, Chad Krahn

Where is the focus?

“What gets measured, gets managed.”

As the father of management theory once said, the challenge is focus – where your time and attention go is where results will happen.

When it comes to Red Deer City Council, there has been little focus – and as a consequence even less results – on economic development.

In the last year a lot of focus has gone into social issues, like the location of the homeless shelter, and fair enough, we need a location for the shelter. But when virtually no attention has been paid to the economic health of the city, it’s no wonder that the lack of progress on this file speaks for itself.

In the last year and a half, there have only been two large private sector announcements. The first was the gondola across the Red Deer River, which has since been put on hold, and the second was the downtown casino’s move into the newly minted Red Deer Resort and Casino (formerly the Cambridge Hotel).

That certainly doesn’t speak to a vibrant, growing sector.

The Red Deer Economic Development Strategy was written in 2013 – making it over a decade old. Remember 2013? It was when CFL light bulbs were all the rage. So much has changed in the last ten years, and in the case of Red Deer, not for the better.

Since the Economic Development Strategy was written, the number of businesses in Red Deer has steadily declined from 4,040 in 2013 to 3,534 in 2022. While the number of businesses isn’t a perfect indicator of economic development, it is actually the metric chosen by Council as part of their strategic plan. Clearly, there is some work to do.

There are some things that Council can do and can prioritize right away to improve this situation.

The City tracks building permits, and those too have declined significantly in the last decade. In 2013, the City issued 2,068 building permits and that number has declined every year, so much so that, in 2022, only 903 building permits were issued. The City must work on modernizing the entire permitting system if they want to bolster this number – and make Red Deer more economically attractive.

There must be a guaranteed turnaround time on permits. Council must embrace automation to streamline the process where they can. If the City likes to use the number of permits as a benchmark for development, they can’t continue to be stuck in the status quo when it comes to getting them approved.

Taxes remain a sticking point and, while still competitive in comparison to other municipalities, Red Deerian’s taxes have gone up in the last decade. Even before this year’s new City budget and new tax rate come into effect, the commercial tax rate for Red Deer in 2022 was 14.8% – up from 12.23% in 2013.

Council has an opportunity to create new committees around its priorities. Currently, the City has committees for housing and homelessness, the library, public art, Gaetz Lake, and municipal planning, among others. Why not take the opportunity to create a new committee for Red Tape Reduction? Surely there are old bylaws on the books that could be revamped. Unfortunately, in government, it is always easier to add new laws rather than to take away old, defunct rules, but that’s no reason not to do it!

A committee on economic development is also needed, to begin the work of a new Economic Development Strategy. This committee would work to bring all the partners and economic drivers of the city and region together, and to find a way to present a clear vision of what this city has to offer in terms of economic opportunity. The economic advantages to those of us who live here are plain as day, but the message doesn’t seem to be resonating with those outside. Council needs to identify these advantages and work to convey them to potential investors, entrepreneurs, and would-be residents.

The City brands itself as an entrepreneurial one, and with a little more focus we could be the business testing grounds for Alberta. The city’s size and central location makes this an ideal site. Our city could be the launch pad for businesses for the whole country. Imagine how many more made-in-Red Deer success stories we could have.

We can be so much more – all we need is a little focus.

Chad Krahn is a former candidate for Red Deer City Council.

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Automotive

Michigan could be a winner as companies pull back from EVs

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From The Center Square

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Federal deregulation and tax credit cuts are reshaping the auto industry, as Ford Motor Co. and General Motors Co. scale back electric vehicle production and redirect billions into hybrids and traditional gas-powered cars.

Yet, the Michigan automotive industry could see increased investments from those same companies as they reallocate that funding.

While both Ford and GM previously announced ambitious targets to expand electric vehicle fleets over the next decade, they are now cutting back on electric vehicle production.

That comes in response to federal deregulation of gas-powered vehicles, tax credit cuts, and the prospect of slowing consumer demand.

In August, Ford stated it was canceling plans to build a new electric three-row SUV. Instead, it is turning its focus to hybrid vehicles, including a massive $5 billon investment into a new “affordable” hybrid truck.

GM announced similar plans earlier this month. It will be cutting back electric vehicle production at Kansas and Tennessee plants, anticipating a decline in demand once federal tax credits end Sept. 30.

This all could have a real impact on the electric vehicle industry across the nation and experts are already anticipating that.

A new forecast by Ernst & Young Global Limited now predicts a five-year delay in electric vehicles making up 50% of the new car marketshare. While previous forecasts predicted America would reach that mark by 2034, the new forecast pushed that back to 2039.

“The U.S. faces policy uncertainty, high costs, and infrastructure gaps,” said Constantin M. Gall, the company’s global aerospace defense and mobility leader.

Clean energy advocacy groups are decrying this move away from electric vehicle initiatives, largely blaming the Trump administration.

“The transition to electric vehicles now faces significant roadblocks,” said Ecology Center in an April report. “The Trump administration has rolled back key policies supporting clean transportation.”

It also pointed to a nationwide deregulation of the gas-powered vehicle industry for allowing those to remain “dominant” over electric vehicles.

“These actions prioritize fossil fuels over clean energy, threatening progress toward a sustainable transportation future,” the report stated.

While bad news for electric vehicle supporters, the Michigan automotive industry could be a winner as companies re-shift focus back to gas-powered and hybrid vehicles.

With billions of dollars previously allocated to federal pollution fines and electric vehicle costs now available for investment, GM now plans to increase production at a Detroit-area plant by 2027.

The Michigan-based company also recently announced plans to invest billions into another Michigan plant in Lake Orion Township.

For similar reasons, Ford’s CEO Jim Farley told analysts that the company anticipates monetary savings “has the potential to unlock a multibillion-dollar opportunity over the next two years.”

While Gov. Gretchen Whitmer has long been a proponent for the electric vehicle industry, she did recently emphasize her support for all Michigan-based manufacturing, no matter the type.

“We don’t care what you drive – gas, diesel, hybrid, or electric – as long as it’s made in Michigan,” she said following the GM Orion announcement. “Together, let’s keep bringing manufacturing home, growing the middle class, and making more stuff in Michigan.”

Elyse Apel is a reporter for The Center Square covering Colorado and Michigan. A graduate of Hillsdale College, Elyse’s writing has been published in a wide variety of national publications from the Washington Examiner to The American Spectator and The Daily Wire.

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Business

Deportations causing delays in US construction industry

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The Trump administration’s immigration policies are leading to worker shortages and delayed projects across the construction industry, according to a new report.

A survey conducted in July and August by the Associated Contractors of America and the National Center for Construction Education and Research found more than one in four respondents said their firms were affected by increased immigration enforcement in the past six months.

Respondents said increased immigration enforcement is making it more difficult for firms to recruit workers. Ten percent of firms reported using the H-2B visa program, which is used for recruiting nonagricultural foreign workers, to recruit salaried and hourly workers.

Congress set the cap for H-2B visa allowances at 66,000 in fiscal year 2026. The program offers temporary work for the first and second halves of the year to foreign employees.

Jordan Fischetti, an immigration policy fellow with Americans for Prosperity, said government allowances for visa programs do not meet the demand of the current workforce.

“Immigration for a long time has been centrally planned, so there’s just not a very strong appetite for letting the market do its work,” Fischetti said.

The report found 83% of firms with craft worker openings reported that positions are hard to fill or harder to fill than one year ago. Eighty-four percent of firms with openings for salaried workers also reported it was hard or harder to fill positions than one year ago.

Five percent of respondents reported their jobsites or work sites were visited by immigration agents and 10% said workers did not report or quit due to rumored immigration enforcement allegations.

Contractors in Georgia, Virginia, Alabama, Nebraska and South Carolina were more likely to be impacted by immigration enforcement, according to the report.

The report found worker shortages were the most commonly listed reason for project delays. Two-thirds of firms reported at least one project in the last six months was postponed, canceled or scaled back. The survey took into account more than 1,300 individuals across various contracting and construction firms.

Michele Waslin, assistant director of the University of Minnesota’s immigration history research center, said the construction and agricultural industries have been deeply affected by the Trump administration’s immigration policies.

“Some businesses really do have a labor shortage, and they’re unable to hire American workers, and they want to hire foreign workers and it’s not that easy to do in many cases,” Waslin said.

A separate poll commissioned by The Center Square found 85% of registered voters think it is either somewhat or very important to create legal pathways for construction workers to live and work in the United States.

The poll, conducted by RMG Research in conjunction with Neapolitan News Service, surveyed 1,000 registered voters in August and found vast agreement across partisan lines, age and race in its support for legal pathways in construction.

Fischetti said both employers and the American public have expressed interest in allowing more flexibility in the immigration system and he wants to see Congress modernize in response.

“We really need to work on providing pathways,” Fischetti said. “I don’t just mean pathways to legalization, pathways to certainty.”

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