Buying Local Builds Communities

At McCue, we recognize the importance of buying local and how buying local supports our province. Local spending means money and prosperity stays in our communities.

When we manufacture a water treatment plant, we rely on suppliers to provide pipe and valves, pumps and tanks, wiring and lighting, and more. Materials are delivered to our facility in Delta where we construct the plant. Through the years we have developed relationships with many suppliers and we are loyal to our trusted supply chain; the suppliers who provide good service and quality materials.

Many of our suppliers are our neighbours in Delta, and many others are in other municipalities in Metro Vancouver and the Fraser Valley. We also buy from suppliers elsewhere in Canada and the USA as supply dictates.

A recent study conducted by the Mining Association of BC got us thinking about where we purchase materials, and how our spending impacts our community. The study, called “One Province, One Economy,” showed the impact of mining on communities in BC.

One Province, One Economy

The Mining Association of BC (MABC) and the Mining Suppliers Association of BC (MSABC) conducted a study of our sector’s BC supply chain to provide a clear picture of the economic and societal benefits of the mining sector at the community level. The study quantifies the amount spent by 17 operating mines and two smelters on materials, goods, and services within British Columbia.

In 2018, the BC mining industry generated $12.3 billion in economic activity, over 33,000 direct and indirect jobs, and $1 billion in direct payments to the government to support healthcare, education, and public services.

The same year, BC’s mines and smelters spent $2.9 billion purchasing materials, goods, and services from more than 3,700 businesses located in 215 BC municipalities, communities, or Indigenous nations. Furthermore, each direct job at a mine or smelter in BC supports at least two jobs in supply or services in Metro Vancouver.

Read the full report here

The MABC study focused on primary suppliers to mines but did not capture secondary suppliers; those who supply the suppliers. We decided to conduct our study using one of our mine water treatment projects to show where we buy.

OUR STUDY

We chose Barkerville Gold Mine for our study.

Osisko Development’s Barkerville Gold Mines’ Cariboo Gold project is shaping up to be BC’s next big gold mine and one that promises to breathe back some of the history of B.C.’s Barkerville region.

The most recent drill results confirm high grades of gold in multiple zones, notably Cow Mountain. The project will employ about 1,500 workers during construction and 500 to 600 employees once the two mines are in operation. Osisko also announced on October 13, 2020 that it has inked an agreement with the Lhtako Dene Nation (LDN) to provide jobs, training, and contracting opportunities.

Our scope of work for Barkerville Gold was to design, manufacture, and commission a mine water treatment plant for their Bonanza Ledge site, located near Wells, BC, Canada. The plant was designed to remove solids and dissolved metals from mine contact water. Modules were constructed at our Delta facility and shipped to site for final interconnections. We commissioned the plant in the summer of 2020 and it has been successfully treating water since. When we decided to conduct this study we weren’t sure what it would show. During a water treatment plant build we choose our suppliers based on our existing relationships (trust), the availability of the products we need, and the cost. But the project schedule is often the determining factor in where we ultimately obtain our materials. Our clients need things fast, so we do too.

In the end, approximately two-thirds of our total project value was spent on local businesses. What it means is that 70% of BGM’s investment was spent on purchases in Canada, almost 50% on purchases in BC.

How We Spend Makes a Difference

Research in Canada has shown that money spent with local businesses generates almost 5x more revenue than larger corporate competitors. For example, a study conducted in British Columbia found that, for every $100 spent with a BC Local business, $63 was re-circulated back into the BC economy (vs $14 for multinational corporations).

This 2019 research found that independent businesses recirculate up to 4.6 times more revenue than multinationals, keeping up to 63% of revenue in B.C. compared to 14% with multinationals. Independent businesses produce up to 8.4 times more jobs & up to 8.1 times more revenue than multinationals, and they spend up to 31.4% of their revenue on B.C. products & services from British Columbia-based businesses.

Independent businesses donate up to 24 times more per dollar of revenue to local charities than multinationals. Based on these results, a 10% shift in B.C. consumer spending towards independent businesses would create 14,150 jobs & keep $4.3 billion in the B.C. economy.

Mining, a Source of Jobs and Community Development

In the mining industry, over 3,700 BC suppliers across the province provide $2.9 Billion worth of goods and services at BC mining operations and we are one such company.

McCue is part of one of the sectors that create more jobs in the province. More than 28,000 people in 50 communities throughout the province are employed in the minerals and coal economy.

Mining has always been a vital part of BC’s economy. It provides more than 7,400 jobs directly and has helped support more than 50 communities around the province.

The mineral exploration and mining industries affect both the economic and geographic aspect of B.C. and stimulate regional economies, small communities, and infrastructure within B.C. (Ministry of EMPR, 2008)