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Low dollar spurs spending in Langley, Surrey

LANGLEY - The dropping price of oil and gas, and the related slide in the Canadian dollar's value, will be a mixed blessing for local businesses.

 

Some local merchants are anticipating more customers, while others fear increased costs.

 

Langley and Surrey residents are scaling back their trips to the U.S. for gas, groceries and other goods, according to statistics.

 

That's encouraging for local merchants, some of whom are about to launch a Buy Local campaign through the spring.

 

Bruce Heslop got riled up about shopping local when he saw an ad in a local paper promoting crossborder shopping opportunities in the United States.

 

The owner of Diamond Bar Equipment in Aldergrove, Heslop noted that his community is particularly vulnerable to cross border shopping, as well as to shoppers heading east into Abbotsford in search of cheaper gas prices. It's just a short trip for Aldergrove residents to the nearest border crossing at 264th Street.

 

However, far fewer people seem to be making that journey.

 

Statistics from the Canadian Border Service Agency show a sharp drop-off in the number of Canadians returning from a trip to the States in recent months.

 

In December 2014, 69,676 Canadians crossed the borer into Canada at Aldergrove. That compares to 95,853 in the same month in 2013, a 27.4 per cent decline.

 

Numbers from November showed a similar drop, with 67,968 returns in 2014 compared to 96,239 in 2013.

 

"Obviously, there's less incentive to go across the border for gas," said Greater Langley Chamber of Commerce president Kristine Simpson.

 

With fewer travellers heading south, this is the perfect time to emphasize the positive sides of buying local, Heslop believes.

 

Now he is planning to organize a full Buy Local campaign for this spring, to encourage Langley shoppers to keep their dollars here.

 

He'll be seeking some funding from Langley Township in February, and will be putting together flyers on the benefits of staying close to home when shopping.

 

Heslop points to the secondary benefits of spending with local merchants - things like sponsorships for youth sports. Heslop has sponsored a number of teams himself.

 

"I'm not unique, lots of businesses do that," he said.

 

The second phase of his Buy Local campaign will be getting info out to Township businesses on how they can build loyalty and attract regular shoppers.

 

Finally, he'll try a media blitz, and continue with offering education for local retailers.

 

"There's no losers by shopping local," he said. "Everyone wins."

 

This is the perfect time for such a campaign, Heslop said. The Canadian dollar has dropped in value from around 95 cents U.S. to close to 79 cents U.S. "I think it absolutely does have an effect," Heslop said.

 

The effect will be different from industry to industry.

 

There will be a positive effect for people paying less for gas, said Simpson.

 

"Everybody feeling less pinch in their pocketbook," she said.

 

However, Simpson and Gary MacKinnon, the economic development officer for Langley Township, agree that a few businesses will be affected.

 

Langley is far from the Alberta oil patch, but there are business links that reach here.

 

"I think there's two sides to this coin," MacKinnon said.

 

The big negative is for oil producers. The price of oil is hovering between $45 and $50 a barrel in recent weeks, down from around $95 a barrel six months ago. The average price of gas has dropped from around $1.38 a litre to $0.97 a litre over the same six month period.

 

However, that isn't good news for a few Langley businesses.

 

Langley doesn't have any nearby oil wells, but there are several manufacturing firms that make equipment for the oil patch.

 

They fill a small number of highvalue orders for oil drilling firms every year. As oil drillers cut back on exploration, that could seriously cut into their orders and profits.



Matthew Claxton

About the Author: Matthew Claxton

Raised in Langley, as a journalist today I focus on local politics, crime and homelessness.
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