6 Compelling Reasons 2015 Will be a Great Year for GTA Retailers

Low CAD $, Low Oil Price and a Growing US Economy

The deepest, darkest part of winter might be getting you down, but here’s some news that’ll cheer you up. Ontario’s economy will roll along like the Niagara river in springtime. This is big.

Ontario’s Golden Horeshoe Region from Oshawa to Kitchener to St Catherines is one of North America’s best manufacturing, research and economic zones. In full motion, Ontario produces 40% of Canada’s GDP.

As I began writing this post with my usual idea flowcharting techniques, I’m reminded of the power of momentum in economic activities. And that’s what the Ontario economy has.

This new phase is starting cautiously, but with the right conditions the torrent will flow. That’s when consumers leave their cautious buying styles behind them, become more impulsive and open  to trying new products and brands. That spells opportunity for your Toronto area company and an investment opp for venture capitalists.

Plummeting Oil Prices. How Low Can They Go?

Ontario – Trending Upward

Sometimes this snowballing or landslide effect itself is aided by “mountainous terrain” where an economy (ours) gains incredible power from the global economic landscape itself.  This is a rare boom that we’re in the midst of.

Right now the Canadian dollar and the price of oil are plummeting ($54.85 US currently), creating the foundation for  the strong retail market we’ve longed for in the greater Toronto area (GTA). Some experts believe oil will plummet all the way to the bottom.

This chart below with data from the EDC, shows previous forecasts for sectors where Ontario is active. With the lower dollar, Ontario’s auto parts and manufacturing sectors should thrive in 2015 and 2016. I’ll bet the EDC experts are scrambling to revise these forecasts because an 80 cent dollar really changes the export landscape (It fell to 62 cents back in 2002).

Spread the word about Ontario’s Booming Economy: http://www.ravenshoepackaging.com/blog/6-compelling-reasons-2015-will-be-a-great-year-for-gta-retailers

Let The Spending Begin!

The holiday retail sales numbers should be strong and lead right into a good year ahead for companies in York region, Missisauga and GTA.

There could be an especially nice payoff for manufacturers and brands that use POP displays and packaging at retail. A growing optimism will increase retail impulse spending and consumers will be more impulsive than usual, making more decisions instore and perhaps whetting their apetite for new brands and products.

A golden opportunity for entrepreneurial companies. And let’s not forget how influential POP packaging is to buying decisions.

Here’s 6 Reasons Why GTA Retailers are rejoicing:

1. Crude Oil Continues its Price Slide.  Crude oil is so vital to Ontario’s economy and when we get it cheaply, this province can flex its production muscles. Oil production will stay high as oil producing countries desperately need the revenue and that will cause an oil glut.
2. The Falling $CAD. It’s at 85.77 now, but some suggest it will hit 80 cents US.  That means our exports to the US will grow, fewer Ontarians will shop in Buffalo, take fewer vacations in the US, and more foreign vacationers will choose to visit Toronto this year.
3. The US economy is Growing Strong. Demand for our products will grow thus fueling employment and retail spending here. With low oil prices (currently at $US54.85 a barrel), the US economy should benefit by trillions of dollars.
4. Local Travel. Ontario travellers will likely stay and drive to more local destinations this year including Muskoka and Halliburton.  That will be an exciting change for many GTA families.
5. Alberta migration.  As Alberta’s economy slows, we’ll see unemployed yet skilled Ontarians come back home for jobs in the Toronto area. That will increase demand for housing and retail products here.
6. Positive Investment Climate. Investment dollars will flow into Ontario businesses fueling growth for small and medium sized companies. That includes big oil money from Western Canada.

Unrelated to oil prices are the failing China economy which may diminish the presence of Chinese products, or at least diminish their competitiveness versus Ontario manufacturing and exports. Lower oil prices should boost the global economy.

Yes, the wheel is in motion and it will be tough to stop.  The main factors are lower manufacturing and transport costs, and lower taxes. It’s an ideal time for your company to invest in retail sales promotion. Let’s get the ball rolling for 2015.

Wondering what your competitors are doing? How about ecommerce, NFC packaging chips, merchandising strategies, customer experience marketing, and pop up retail. There’s no end to packaging and marketing creativity.

Note: The opinions expressed here do not necessarily reflect the opinions of my employer.

The post 6 Compelling Reasons 2015 Will be a Great Year for GTA Retailers appeared first on Ravenshoe Packaging.