Rising dollar threatens B.C. jobs, industry

The rising loonie is presenting challenges for many B.C. companies that may result injob layoffs, say trade and industry executives.

"There is a high risk there will be layoffs because as the dollar goes up and the margins get squeezed, cash flow gets impacted," Warner Knittel, vice-president of the B.C. division of Canadian Manufacturersand Exporters,said Wednesday in Vancouver.

The easiest way to counter the squeeze is to reduce labour costs, which will be felt most in the forestry sector, Knittel said.

But B.C.'s manufacturing sector is a resilient group of niche companies and that may find one benefit— the chance to invest in new equipment cheaply, he said.

"I think the only shining light for higher value added manufacturers right now is that the higher Canadian dollar silver lining is they can now afford to buy that machinery, equipment, technology that they so desperately need."

Still, Knittel said there is resignation among association members — they feel the strong Canadian buck is here to stay.

Movie, TV production investment already slowing

The rising dollar could mean a lot less action forB.C.'s billion-dollar film industry.

Movie and television productions already underwayare secure, because they generally buy Canadian dollars months in advance in anticipation of projects they will need to finance.

But industry executives here worry the American business will dry up soon because of the high value of the Canadian dollar.

Peter Leitch, president of North Shore and Mammoth Film Studios, agrees the rising dollar will make it more challenging to bring American companies to Canada.

"We're getting less U.S. [business] than we could previously when the dollar was lower, and there's lots of competition in some of the lower states, so it's going to be challenging for us," said Leitch in Vancouver.

Pete Mitchell, executive vice-president of Vancouver Film Studios, says there are many advantages to filming in Vancouver. He points to the well-trained technicians and performers.

But the value of the dollar matters, says Mitchell, "and that will make us look less competitive against other jurisdictions."

For now, the province remains one of the largest production centres for film and television in North America.