Layoffs have begun among Shuswap businesses feeling the strain of the slowdown in Canada’s oil industry.
Sicamous’ TA Structures, which builds mobile living quarters for worksite camps, has had to lay off up to 40 employees in response to the sudden apprehension in the energy resource sector at home and abroad.
TA Structures manufacturing manager Nigel Watson says the company isn’t alone – that other worksite accommodation providers are feeling the pinch, including Horizon North Logistics in Kamloops where 130 employees were recently served layoff notices.
“It’s unfortunate, we have had to make some layoffs coming in to the new year here,” said Watson. “Traditionally at this time of year, it’s a little quiet for businesses like ourselves and the oil patch. But I think there has been a slowdown somewhat, and I’m sure you’re aware Northern (Logistics) got laid off a few weeks ago and the price of oil is obviously affecting the industry somewhat regarding budgets and capital expenditure.”
That slowdown is also having an impact on businesses in Salmon Arm’s industrial park. One owner, who declined to have his name used, said his company is “hurting hard,” and that he may be considering layoffs in the near future.
Salmon Arm Mayor Nancy Cooper says she, along with the Salmon Arm Economic Development Society, have been in communication with some business owners in the industrial park, and confirmed there have been a few layoffs already. But she’s also heard from businesses who are doing OK because they didn’t have all their eggs in the oil-sector basket.
“My understanding is there would be some (layoffs) but, because of the diversification, they have other markets,” said Cooper.
Watson says this is the case for TA Structures, which is in the process of shifting back to houseboat construction.
“Fortunately for us, we have three 60-foot houseboats coming into our plant and the first stages are in the welding shop now, the first boat,” said Watson. “We have two houseboats we’re building for Ontario and we have one houseboat we’re building for California. So we’ve seen a little shift in the market.
Watson said the company hasn’t built houseboats on a large scale since 2010, but having this ability gives TA a competitive edge that will keep things moving forward and bring people back to work in about six-weeks time.
“The last thing we want to do is lay people off in the community… but we’ll certainly be bringing them back as soon as these boats roll through the shop. It’s a positive thing coming out of it and hopefully that diversification will keep us working and keep the people in the community working too.”
TA Structures president, Shuswap MLA Greg Kyllo, was unavailable for comment before press time.
Asked how the slowdown might impact the local tourist industry this summer, Cooper suggested the area may see more visitors from the U.S. this year on account of the low value of the Canadian dollar.
“I mean an 80-cent dollar… that’s a really good deal for an American tourist coming up here,” said Cooper. “They can take in some really great tourist spots, come to the Roots and Blues, come to the lake and the houseboat industry. We really need to be focusing energy down there.”
Sicamous Mayor Terry Rysz is also optimistic, suggesting the community’s annual Alberta guests will benefit from the drop in gasoline prices.
“From my point of view, when it comes to the community, I actually see where it could be very positive because gas now is less than a dollar…,” said Rysz. “People, I think, may have the time and also still can afford to come here. I don’t think it’s going to have that big of an impact, negatively, on Sicamous.”