BrightDrop EV vans begin rolling off the line in Ingersoll as VW kicks regional tires for battery plant

Officials, including Prime Minister Justin Trudeau and Premier Doug Ford, were on hand in Ingersoll this week to mark the official opening of Canada’s first full-scale electric vehicle plant. General Motors’ BrightDrop electric delivery vans began rolling off the line on Monday. “Every government in the world would love to invest millions of dollars to draw in places like this,” Trudeau said, while Ford called it “a massive vote of confidence” in the province. The first vehicles are destined to hit the road as FedEx Express delivery vans — the first of a few big production orders for the CAMI plant signed in 2021. Additional early clients include Hertz, Walmart, Verizon and DHL Canada.  

The upshot: There is a lot of speculation (and hope) that a major investment in domestic EV manufacturing such as this will kick-start an EV boom in Canada. The crux of the EV question is batteries, though ― so news elsewhere that Volkswagen is looking at establishing a Canadian battery plant in the region (St. Thomas has assembled a massive parcel of land to bid for an investment such as this) is also welcome news for the budding sector. The Southwestern Ontario region has a lot to offer here, including proximity to Northern Ontario where natural resources used in EV battery production are mined, labour force attractiveness, site availability and transport corridors to North American auto plants.  

Read more: Global News | London Free Press

VersaBank reports record loan portfolio and revenue profits

London’s B2B bank VersaBank, a Canadian Schedule I chartered bank, released its Q4 financials this week, reporting growing — and record — profits. Net income is up 9 per cent over the year and 12 per cent over the quarter, driven primarily by strong loan growth. "Continued strong year-over-year growth in the fourth quarter capped off an outstanding year that saw 74 per cent growth in our point-of-sale loan and lease portfolio, which contributed to our total loan portfolio growing 42 per cent to a new high of 2.99 billion and which drove record net income of 22.7 million,” said VersaBank’s president and CEO, David Taylor. 

The upshot: Investments made by the company over the past year (including digital and cybersecurity innovations and the acquisition of U.S. bank) seem to be paying off, and this quarter’s earnings beat analyst predictions — welcome news, given that their quarterly reports fell short of what analysts had predicted in Q1 and Q2 this year. “VersaBank was specifically designed to perform well in any economic environment,” said Taylor. “In fact, the bank has a track record of performing even a little better in economic downturns as the requisite cautious stances of our banking peers give rise to additional opportunities that VersaBank is uniquely able to capitalize on due to the bank's meaningfully lower risk profile.”

Read more: Newswire

Housing market declines continue as London home sales drop 44 per cent from year ago

Home resales in London and the surrounding area continued to struggle in November. According to the latest data from the London St. Thomas Association of Realtors (LSTAR), the number of homes sold in the London region last month (a total of 451) dropped by 44 per cent in the region compared to sales from November 2021 (the LSTAR catchment area also takes in Strathroy, St. Thomas and portions of Middlesex and Elgin counties). The average home sale price declined as well ― in the City of London proper, where a total of 318 homes sold in November, the recorded average resale price of a detached home $611,343, a drop from the $630,282 average price reported for the city in October. 

The upshot: As it has been for the past several months, unless circumstances dictate a necessity to buy or sell (or prices simply don’t enter you lexicon of concern), just about everybody remains on the housing sidelines, grappling with the impact of rising interest rates and market-bottom predictions. As LSTAR president Randy Pawlowski points out, it’s a market in full-out correction mode. “In the last two years, the local housing market’s frenzy was artificially fueled by the socio-economic climate of the pandemic. Now that the socio-economic conditions are completely different, the local housing market is in correction mode,” he said. “The market is especially affected by the Bank of Canada’s interest rate hikes, which intensify buyer reluctance and weaken people's purchasing power.” 

Read more: LSTAR | London Inc.

Info-Tech releases its 2023 technology trends outlook

What’s going to be big next year in tech? The Metaverse, generative AI, big data and digital transformation. That’s according to London’s Info-Tech, at least, which released its annual Tech Trends report this week. “Last year’s Tech Trends report focused on the capabilities organizations would need to compete in a digital economy,” the report reads. “We are continuing that theme this year with four trends that are focused on helping the organization deliver value faster and better.” The report outlines a few potential volatility risks: a stricter regulatory environment, the need for stricter cybersecurity and preparing for a looming economic downturn among them.

The upshot: Were you to boil this down, the report suggests there is opportunity in running headlong into new AI tech, and risk from macroeconomic trends, hackers and a business environment constrained by regulations around labour and the environment. The biggest headline prediction in this report is probably also the most speculative — the Metaverse may hold a lot of technological promise, but interest thus far remains pretty muted: Info-Tech’s survey found that nearly two-thirds of organizations polled have “no plans to use” the Metaverse anytime soon. 

Read more: Info-Tech

TechAlliance names Innovation Challenge winners

End-of-year awards season is in full swing ― last week TechAlliance announced nominees for the Limitless Awards. This week they’re back naming BIOSA Technologies and EXAR Studios as the winners of this year’s Innovation Challenge, which focused on the creative industries. “Our diverse adjudicators focused on impactful solutions in London, that ultimately strengthen resources available to creative industries,” shared Christina Fox, CEO of TechAlliance of Southwestern Ontario. “These companies are bridging the gap between technology and creativity while empowering local creators to expand economic prosperity in London.”

The upshot: The Limitless Awards were created in 2021 based on some funding from the pandemic-offshoot London Community Recovery Network program. While previous challenges have focused on reimagining business systems and strengthening business health, this edition recognized two creative-industry upstarts: EXAR Studios, which won for its Engage Art platform and a project to provide real-time curation of local shows, and BIOSA Technologies, recognized for a project to create a salable textile recycling process, part of a collaboration with Goodwill Industries and the Fanshawe School of Fashion.

Read more: TechAlliance

Hunter & Co. owners bringing Hamilton taco bar to city

The ownership group behind London restaurant Hunter & Co. is adding to its portfolio with plans to open a new taco bar in the city. Called The Mule, the new eatery is an expansion of a popular Hamilton taco joint opened in 2015 by a hospitality group called The Other Bird. The owners, CEO Erin Dunham and co-owner Matt Kershaw, are also expanding The Mule to Cambridge as well, with both expected to open in the spring. 

The upshot: The Mule grew as a popular spot for Hamilton foodies, after the owners launched the restaurant with a $100,000 crowdfunding campaign back in 2015. Now, the owners are looking to pivot out of hospitality towards being a restaurant group, having sold a hotel and event centre in Paris (Ontario) last month in an effort to expand their food business. The owners haven’t disclosed where the London location is going to be, but — as with their Hamilton spot — the owners have emphasized that they’ll be focusing on creating a unique atmosphere and hip vibe. 

Read more: Hamilton Spectator

Dispatch: December 9, 2022

A summary of recent business appointments and announcements, plus event listings for the upcoming week.

View listings here