Lower Canadian dollar isn’t all bad for Windsor

By Justin Prince

Financial experts have been predicting a weaker Canadian economy in recent months, but the lower dollar is a good thing for the region according to Windsor-Essex Regional Chamber of Commerce president and CEO Matt Marchand.

Since February 2014, the value of the Canadian dollar has decreased by more than 10 per cent according to the Bank of Canada. The loonie was also predicted to go as low as 69 cents U.S. by Macquarie Group and other investment banks and corporations by Feb. 2. As of Feb. 20, the value of the Canadian dollar is less than 80 cents U.S. The Bank of Canada also cut the country’s interest rates last month due to a decrease in crude oil prices.

“It’s a positive for the Windsor-Essex region and Southwestern Ontario for that matter,” said Marchand. “The low dollar will encourage people to come over from the U.S. to Windsor-Essex, but at the same time, make our manufacturing sector more competitive.”

Reynold Brash, a tool worker at Colonial Tool Group on Walker Road, agreed. He said the lower Canadian dollar has created more American business for his company. Marchand said that along with manufacturing, the tourism industry could also see more business from the U.S.

“Any advantage for tourists to cross the border … is a positive for us,” said Caesar’s Windsor Public Relations and Communications Manager Jhoan Baluyot. “It gives them another reason to come across here for the entertainment, the perceived safety of our city and also the other tourism highlights of our city.”

Marchand also explained the retail industry could also see a positive impact. He said that although stores and companies were slightly unhappy about the increase in costs for equipment and products in the U.S., the situation was a positive one.

“Our company deals with the U.S., so yes it has affected us because now our company’s invoices are up 18 per cent,” said Chris Gallant, the owner and founder of online used car search website Carcompete.com. “Obviously that’s not a good thing when we’re dealing with the U.S. or Europe that our Canadian dollar is down, but then again, you have to look at the overall economic pressures we’re facing when our dollar is too high. This is definitely going to help Canada and especially border towns like Windsor.”

Manchand also said this issue could “damper” a desire for Windsorites to shop in the U.S. He said he hoped that the currency rate would lead to more Windsorites buying local.

“My wife doesn’t go shopping across the border as much because it’s now more expensive to go across the border and because the oil prices have dropped, it’s not worth to go for the gas anymore,” said London, Ont. native Dave Goodreau. “People will stay at home in Canada and it will be better for all of us.”

Marchand reassured though that the Canadian dollar may rise at any time. On Feb. 5, the Canadian dollar rose back above 80 cents U.S. before dropping below that total the next day. He also said Windsor’s economy is more unique and “currency-dependent” than other parts of Canada because of Windsor’s proximity to the U.S. Because of the unpredictability of the value of the Canadian dollar, he is encouraging his organization’s members to invest sooner rather than later.

“We’ve had some head winds in the past with respect to a high dollar so now those head winds are turning a tail wind,” Marchand said. “Right now, it’s a good opportunity to take advantage of that.”