Staking out a future: Thompson adjusts as mining industry slows
Vale still largest employer in Thompson but other industries helping develop diverse economy
Rajinder Thethy has put almost $750,000 in his carwash business in Thompson, Man., and it's investments like his the northern city is banking on to help stabilize — and build — the economy as the local mining industry slows.
Thethy, who has lived and worked in Thompson for 22 years, originally built the carwash with some partners back in 2004 as a side gig. He was a professional accountant at the time.
But in January 2016, he decided he wanted a major career-and-life change and to be more devoted as a business owner.
"I know what the Thompsonites need so for me to stay here and expand my business just made perfect sense," he said.
Financial assistance from the community's economic development fund was instrumental in being able to redesign the business, Thethy said. After upgrading the automatic drive-thru car wash to the tune of $250,000, he expanded and added a convenience store and detailing bay.
It's a big commitment in a mining city that is routinely being staggered by cuts and closures in that industry. Thethy knows his own business might not skyrocket in that economy but is confident there is enough support from outlying regions to keep his carwash healthy.
Thompson has about 13,000 people but the region's population is estimated to be over 60,000 once all the neighbouring communities are linked to the city through the winter roads network.
"I wasn't 100 per cent comfortable but for me to grow my business it was essential that I made this investment," Thethy said. "Thompson has so many good stories with businesses coming in and being successful so I want to be … one of those good stories."
The City of Thompson and the managers of Thompson 2020, a task force established to sort through the economic challenges and find strategies to promote growth, say people like Thethy are going to be key in shifting and rebuilding the city's economy.
The mine company that Vale bought in 2006 has long been the largest employer in Thompson but job losses are estimated to be as high as 700 throughout 2017-2018, from the closure of the Birchtree mine and the ending of the smelting and refining processes.
It has made some residents nervous but no one is throwing in the towel.
Thompson 2020 project manager Harold Smith grew up in the city and said the mining sector has always been up and down. He noted the 700 job losses are only a projection and expects the number to be much less after retirements and other attrition is considered.
What's important now is engaging with the community and finding a new path forward, he said.
"The uncertainty is a really big driver and that's one of the things that Thompson 2020 [is] trying to put together — a path that people can see and say 'well yeah, there's at least an opportunity there after the transition,'" Smith said.
Regardless of how many people will end up needing meaningful employment, the question for the city is: where will they go? he said. If retirees look to retire down south and laid-off miners look for work in other regions, it could exasperate any municipal economic downturn.
Thompson 2020 is looking at ways to retrain anyone affected by the ongoing cuts or to find other opportunities to repurpose the skills and training that people have.
The working group is also looking at initiatives that could retain and attract more people and development. One such possibility could be a condo development or lifestyle housing that would allow people who are retiring or downsizing to stay in the city and be close to their northern cottage country.
In the past, one of the issues Thompson has faced was attracting new businesses to invest in the city because there have been labour shortages, Smith said. With a soon-to-be growing labour pool he believes that could entice new investors to look to the city.
"Thompson has always been a great place to invest with great opportunities for people who are prepared to invest. We don't see that that has changed," he said.
"The market here is strong regionally. It is largely under-served in a number of businesses and service areas and we see opportunities for individuals and organizations to invest here."
It's up to the Thompson 2020 group to explain the opportunities and get people to buy in, Smith said. One of the strategies for that could be to look at neighbouring communities that come into Thompson for services to see if they would want to invest in some of those businesses, he said.
City councillor and former deputy mayor Kathy Valentino was born and raised in Thompson and has three boys of her own that grew up in the northern city. She understands that there has been uncertainty and worry among residents but wants people to believe in what their community has to offer.
"We have to realize that we're not going anywhere. We're still going to be here, the city of Thompson," she said.
"Are we going to have a different look and a different feel? Yup. But it's what we make of it that is going to still make this a great place.
"We're going to have to rely on our service industry more because we really represent a region of 50,000-60,000 people. That has to be our mindset and our shift of what we're going to look like."
Whether that service-minded city of the future is attractive to the next generation remains to be seen. Valentino said she's not sure they're fully bought in.
Even her own sons are split on if they'd return north when they finish school, but Valentino says that northern sales pitch is part of the job.
"We have to reach out to that age group, or the younger generation, and we have to get them to be involved. We have to get them to have the want to come here to have careers here to raise their families here," she said.
Are we going to have a different look and a different feel? Yup. But it's what we make of it that is going to still make this a great place.- Kathy Valentino
"We have to create that want and give them ideas that it's a good place to come and there's a future here."
It's not a hard sell at the high school where Grade 12 students Tyler Monias and Hannah Murdy, both lifelong residents, said they could see moving back to Thompson when they finish studying in Brandon and Winnipeg, respectively.
Murdy is interested in becoming a lawyer or working in law enforcement and said she could see herself moving back one day.
"I would consider moving back here, especially if I went into policing because it would be super interesting here because a lot goes on," she said.
Monias, whose dad is a miner, plans to study to become a teacher but knows people in his class of 2018 that want to get straight to work after graduation. They want to live in Thompson and find work on Hydro projects or as tradespeople.
"Whatever happens to the mine — it will happen, some people will leave — but some people will stay because Thompson is more than just a mining community now," Monias said.
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