The brochure91Ƶs cover has the Texas flag as a backdrop and shows an arrow pointing from Alberta to the Lone Star State.
91ƵArrowstar Realty invites you to relocate to Texas,91Ƶ reads the mailer sent to businesses across Western Canada recently. 91ƵJoin the 100s of companies that have already made the move!91Ƶ
Inside is a letter 91Ƶ beginning 91ƵDear Canadian Neighbour91Ƶ 91Ƶ boasting of Montgomery County91Ƶs 91ƵBOOMING91Ƶ economy, tax incentives and ranch-style properties. It offers to link prospective clients with banks, accountants and lawyers to ease their move.
Realtor Robert Graham says 15,000 brochures have been delivered in British Columbia, Alberta and Saskatchewan so far. Another 50,000 are coming.
He says Arrowstar has helped about 100 western Canadian companies move north of Houston in the last decade, and 40 of them were in the last year and a half.
The majority of newcomers have been Canadian oil and gas drillers, a sector that has hit a rough patch in recent years.
91ƵI definitely want Canada to pick back up. I would love for that more than anything,91Ƶ says Graham.
But for now, he says, a lot of Canadian businesses need help to keep going.
91ƵWe91Ƶve got doors open and we91Ƶre ready for them.91Ƶ
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Krisjan Jones, operations manager at livestock feed supplement maker Canadian Bio-Systems, says Lubbock91Ƶs economic development agency recently made an enticing pitch to move his business to the west Texas city.
It was offering land at no cost with utilities and rail access.
91ƵSo essentially you get a blank canvas for free,91Ƶ says Jones, who adds he91Ƶs waiting on the outcome of the Oct. 21 federal election before pulling the trigger. He cites the federal carbon tax as a major issue for him.
Clogged railways that make it difficult to get international shipments out on time are another big knock against Canada, he says.
John Osborne with the Lubbock Economic Development Alliance says pitches are centred more on the long-term business case than politics or potential perks. When benefits are discussed, it91Ƶs more of a problem-solving exercise.
91ƵWe look at it as 91ƵWhat91Ƶs stopping you from saying yes to coming to Lubbock right now?91Ƶ91Ƶ
That could mean free land, sewer and water hookups or road paving.
Osborne says his group has been doing Canadian outreach for about a decade, but it91Ƶs gone from sporadic to regular in recent years. Most trips are to Calgary and Toronto and have been with companies in oil and gas, manufacturing and agriculture.
Precision Drilling CEO Kevin Neveu moved to Houston from Calgary three years ago with the rest of the company91Ƶs management team. It has about 250 employees in each city now.
Neveu says 2017 was the first year Canada made up less than half of Precision91Ƶs activity and this year it91Ƶs at 30 per cent.
Alberta91Ƶs oil curtailments, trouble building new pipelines and cooling investor sentiment have depressed the Canadian industry, he says.
91ƵIt91Ƶs those three factors that are really starving our customers for capital, which means they91Ƶre not reinvesting in drilling, which means that our business here is just really slow 91Ƶ brutally slow.91Ƶ
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Mark Scholz, head of the Canadian Association of Oilwell Drilling Contractors, says every member he91Ƶs spoken to has at least seriously considered moving people or equipment out of Canada. The association represents more than 100 companies that drill or service oil and gas wells.
He says moves from Alberta91Ƶs new United Conservative government to lessen the regulatory and tax burden are helping with competitiveness, but the southbound exodus is a wake-up call.
91ƵThe Americans are playing a very strategic game and quite frankly I think they91Ƶre winning at that.91Ƶ
Lauren Krugel, The Canadian Press
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