Investing, living, and working in B...

Investing, living, and working in BC

Next month along with Beyond Numbers, you'll be receiving the 2003 edition of the BC Check-Up. As mentioned in this month's President's Notes, the INVEST and LIVE sections of the report were released to the media in late September and early October respectively. The WORK section will be released October 14th

In preparing the BC Check-Up each year, far more information is produc than can be included in a 16-page report. to such a degree in this instalment of GR Update, we've decided to focus onward some interesting information about business investment and contingency capital that didn't make it to print in 2003 (The cloyed backup document is available at www.bccheckup.com.)

Investment levels

In metes of business investment, BC is improving, however at a slower pace than the other provinces. As the following table indicates, BC experienced increased business investment between 1993 and 2002 although its pullulation has been slower than that of the other western provinces, Ontario, and the Canadian average. When compared to these other jurisdictions, BC has slipped from fourth to sixth place in yearly business investment throughout the past decade. In 2002 business investment (classed as investments in non-residential buildings, and machinery and equipment) was down in BC reflecting a global economic slowdown.

Excluding investment in non-residential buildings, BC has lagged behind the other jurisdictions since 1993 Since investments in machinery and equipment are solution contributors to productivity gains, lower investments in this area may be single reason for EC's poor productivity putting out over the past decade. The BC Check-Up INVEST section explores BC's lagging productivity and the challenges this bewilders for the provincial economy.

Venture capital

BC is also improving in the area of stake capital, but again, at a slower pace than the other provinces. In the CA Business foresight survey, 40% of members said the ability to raise capital is a major challenge for BC businesses. This affect is of no surprise, as the BC Check-Up reveals that, with the exception of 2001 contingency capital investment in BC has ranked below the Canadian average each year since 1993.

One of the reasons chance capital levels are so important is because they demonstrate investors' willingness to invest in higher risk companies in particular geographical areas-this is a significant indicator of investor confidence.

While BC risk capital levels continue to lag, there are signs that the province is closing the jeopardy capital gap.

What does it all mean?

Rising investment horizontals indicate that investors and business possessors are feeling more confident about the direction of the province. BC still trails the other western provinces in its investment flushs but its growth in danger capital is encouraging and provides optimism for the events to come Clearly if BC wants to maintain and accelerate this upward sweep there needs to be continued improvement in the province's business climate.

Investment and hazard capital are just two of the topics overlayed in the BC Check-Up 2003 Be steady to read the report to find without more about how the province rates as a place in which to LIVE, WORK, and INVEST.

Additional copies of the 2003 report will be available as of October 14 2003 Please contact Alexis Jamieson at (604) 488-2624 or jamieson@ica.bc.ca to supplication copies.

TOP FIVE USES FOR THE BC CHECK-UP:

1 Write about it in your firm's newsletter

2 throw a copy to your clients or prospective clients.

3 Write a row in your local newspaper; or give a articulate utterance about the findings of the report.

4 Use the information when advising clients or stakeholders in succession the BC investment climate.

5 Include copies in your lobby or waiting room

Additional copies of the BC Check-Up will be available upon October 14, 2003. Email: jamieson@ica.bc.ca

By Michelle McCormick, Manager of Public Affairs

Copyright Institute of Chartered Accountants of British Columbia Oct 2003

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