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

COLUMN: Getting a handle on B.C.’s export economy

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

In a small jurisdiction like B.C., raising real incomes over time depends in large part on the ability to increase exports and stimulate the growth of export-capable industries.

Export industries provide many economic benefits, including by furnishing the income to enable us to pay for the vast array of imports we consume. In B.C., households and businesses rely entirely or mainly on imports to satisfy their needs for vehicles, pharmaceuticals, medical equipment, electronic products, clothing, many foodstuffs, and much else besides.

Export industries also make a disproportionate contribution to the economy by offering generally above-average wages and salaries.

Below, I briefly examine the province’s leading export industries, concentrating on those that produce tangible goods.

Last year, B.C. earned approximately $44 billion by selling goods to other countries. More than three-quarters of these exports consisted of natural resource-based products.

Forestry continues to occupy a central place in B.C.’s export portfolio, accounting for one-third of merchandise exports in 2017 (the last year for which detailed data are available). The top forestry exports are lumber and pulp and paper.

READ MORE: Log exports high on agenda for B.C. NDP and forest industry

Approximately one-quarter of B.C.’s exports in 2017 came from the energy sector, with coal and natural gas being the principal export commodities.

Metallic minerals comprise a little over 12 per cent of B.C.’s exports. Copper, aluminum and zinc are the province’s leading mining-related exports.

Machinery and equipment industries supplied 10.7 per cent of B.C.’s merchandise exports in 2017, up fractionally from 10 per cent in 2010. Electrical/electronic equipment, transportation equipment, motor vehicles and parts, and scientific and technical equipment are among the advanced manufacturing industries in which B.C. is home to exporting firms.

The “clean tech” products that many politicians are preoccupied with account for less than 1 per cent of B.C.’s exports.

Agriculture and seafood products make up 9.5 per cent of the province’s goods exports. B.C. has a substantial and diversified agri-food sector that ships a mix of agricultural and seafood products to markets around the world.

Smaller shares of the province’s merchandise exports are supplied by fabricated metals, chemicals, plastics, apparel and textiles, and a handful of industries that manufacture consumer goods.

The industries highlighted above will remain foundational to B.C.’s economy for the foreseeable future. How can public policy help them to thrive and grow?

The primary challenge is to create an environment that encourages companies, entrepreneurs and investors in export-oriented industries to allocate capital to improve business operations, acquire new equipment and technologies, and expand production capacity. Without new investment, industries are destined to stagnate, shrink or wither away.

This, in turn, requires that the province have broadly competitive taxes and fees for its main export-focused industries; establish efficient and timely regulatory and approval processes; ensure an ongoing supply of qualified labour backed by a high-quality education system; invest in infrastructure that supports trade (e.g., transportation, energy and communications infrastructure); and keep energy and other business input costs at reasonable levels.

Today, B.C. performs well in some of these areas but falls short in others. Escalating taxes and fees and costly regulatory systems are significant competitive disadvantages for a number of the province’s export industries.

Talent shortages and the sluggish pace at which many of our companies adopt innovative technologies are also making it harder for some exporters to succeed.

If policy-makers want to advance overall prosperity and encourage industrial growth that supports decent wages for workers, they need to focus more attention on strengthening the underpinnings of the province’s export economy.

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

Just Posted

Final Home Grown performance of the season

JOHN ALLEN Mistress of Ceremonies Margaret Moe led off the evening by… Continue reading

Immunization catch up program launching

Kimberley schools sending information to parents

East Kootenay snow pack below normal

The April snow survey and water supply bulletin from the BC River… Continue reading

Quilt of Valour presentation

Cindy Postnikoff of Military Ames says that it was an honour and… Continue reading

Know It All: Kimberley Cranbrook entertainment guide

Art exhibit in the showcase at Kimberley Public Library Fourteen paintings have… Continue reading

UPDATE: Four victims identified in deadly Penticton shooting spree

John Brittain, 68, faces three counts of first-degree murder and one count of second-degree murder

Prince George sweeps to first-ever BC Hockey League crown

Spruce Kings beat Vernon Vipers 3-1 in the Okanagan Wednesday for 13th straight playoff win

Hwang’s first MLS goal lifts Whitecaps to 1-0 win over LAFC

Vancouver picks up first victory of season

Child-proof your windows ahead of warm weather: B.C. expert

Fifteen children were taken to BC Children’s Hospital for falls in 2018

B.C. trucker pleads guilty to lesser charges in fatal Manitoba crash

Gurjant Singh was fined $3,000 and given a one-year driving prohibition.

Study links preschool screen time to behavioural and attention problems

The research looked at more than 2,400 families

More than $100,000 raised for family of professional skier who died near Pemberton

Dave Treadway leaves behind his pregnant wife and two young boys

BC SPCA asks public for donations after puppy caught in trap

The puppy’s medical bills are expected to amount to more than $4,600

B.C. party bus monitors required to watch for booze, drugs on board

New rule in time for grad outings, minister Claire Trevena says

Most Read