Hamilton's economy?

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Positives...


Rebound in business licences 'positive sign' for Hamilton economy
Data signals many sectors that suffered during the pandemic are now showing signs of bouncing back.

https://www.thespec.com/business/hamilto...0a80e66-6e66-5c6f-af3c-7cc33b35ebc0.html

Fallon Hewitt
The Hamilton Spectator
Wednesday, March 6, 2024


The City of Hamilton issued more than 10,000 business licences in 2023 — the most in a single year since before the pandemic.

Data obtained by The Spectator shows that 10,030 businesses were issued licences to operate last year, marking the first time the city has hit five digits since 2019.

Most of the businesses that require a licence fall under the city’s public health and safety regulatory and inspection regime, including restaurants, salons and taxis — meaning the data does not capture or tell the full story of the local economy.

But it does signal that several sectors that suffered during the pandemic are now showing signs of bouncing back.

The number of business licences issues by the city plummeted amid COVID restrictions, falling to 8,262 in 2020 and further to 8,008 in 2021. In 2019, 10,163 were doled out.

They began to climb in 2022, when 9,191 were issued, according to the data.

Norm Schleehahn, the city’s director of economic development, told The Spectator the 2023 tally is a “positive sign” parts of the local economy are getting back to pre-pandemic levels.

“Businesses appear to be optimistic about the future,” said Schleehahn. “It’s taken a bit of time to get here, but that confidence is there.”

Hospitality sector grows with 'strong demand'

The city’s hospitality sector saw the greatest growth in business licences last year, according to the data.

The number of food service vehicles (food trucks) surged, with 217 licences issued last year, up by 144 per cent from 89 in 2021.

Schleehahn said that reflects the state of events amid the pandemic, which saw festivals and celebrations either cancelled or downsized due to gathering limits.

However, Schleehahn noted that some of the growth could be connected to the cost of doing business, as food trucks are more manageable.

“Many businesses are looking at smaller venues and lower rents,” he said. “Food trucks also offer the chance to follow the customer, experiment with different things at events and they still feed into the city’s foodie culture.”

While many well-known restaurants have closed in the city over the past few years, the number of licences issued for eateries was up to 1,617 in 2023. That's a 24 per cent increase over 2021 when 1,301 were doled out.

Schleehahn noted some restaurants shut down due to financial difficulties, while others closed as owners decided to retire.

But in either case, Schleehahn said the spaces left behind often “don’t stay empty for long,” pointing to the former home of Ray’s Place on Dundurn Street South.

Licence growth 'good news' for city

Schleehahn noted the city data excludes larger businesses that opened in Hamilton in the past few years, including commercial businesses and retailers.

However, Schleehahn said the recovery of smaller businesses, such as restaurants, shows there is a “strong sense of confidence” for those looking at setting up shop in Hamilton.

“The general business climate in the city has been very good over the last while,” he said, pointing to the city surpassing $2 billion worth of construction last year. “And I see that getting stronger as we go along.”

Simon Gaudreault, chief economist at the Canadian Federation of Independent Business (CFIB), told The Spectator that while business creation in the city is “good news,” the data does not reflect the gruelling environment that entrepreneurs are facing.

Those challenges include rising costs, high interest rates, pandemic loan repayments and sluggish spending by consumers — all of which come on the heels of COVID.

“They are at the end of an ultra-marathon and we’re asking them to run another mile,” said Gaudreault. “Some might have to make hard decisions and throw in the towel.”

Bouncing back

Over 10,000 businesses were issued licences to operate last year, marking the first time Hamilton has hit five digits since the pandemic. Here's a look at some sectors that saw a significant bump:

................................2021....2022.....2023
Total licences.............8,008....9,191....10,030
Eating establishment..1,301....1,548......1,617
Food Service vehicles......89.......161........217
Taxi cab owner.............433.......446.........615
Taxi drivers..................925....1,081......1,155
Mobile sign rental.............9..........8...........13
Personal care facilities...656.......774.........779

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