(Montreal) With the economic slowdown, Montreal International supported fewer foreign investment projects in the Greater Montreal area during the first half of the year, but the organization ensures that it is taking advantage of this slowdown to target the “most structuring” projects.
Companies are more reluctant when it comes to making investments in a context of economic slowdown and geopolitical tensions, notes the vice-president, foreign investments, of Montreal International, Alexandre Lagarde, in an interview. “Inflation and rising interest rates still have an impact on investment. »
During the first half of the year, Montréal International supported 46 foreign direct investment projects, compared to 55 during the same period last year, according to preliminary data from the organization. Total project value declined 15.9% to $1.38 billion.
Mr. Lagarde judges that these are “good results”. He points out that the previous years had been marked by the effervescence of investments in the technology sector during the pandemic. The slowdown in the sector overshadows a recovery in other strategic industries for the Montreal economy, such as aeronautics. The fact that the two industries have not evolved in synchrony demonstrates the benefits of a diversified economy, he said.
He also points out that 27 of the 46 projects supported come from companies taking their first steps in Montreal. “We have more implementation projects than we have subsidiary expansion projects. Usually it’s about half and half. It shows that the force of attraction is still there. »
Priority sectors
The economic slowdown is not the only challenge facing Montreal International. The scarcity of labor and the end of electricity surpluses expected for 2027 must be taken into account when the organization decides to attract a project. “It wouldn’t be fun if it wasn’t difficult,” jokes Mr. Lagarde.
Montréal International has therefore decided to target companies that can provide new expertise in the most strategic ecosystems for Québec and the Greater Montréal region. “The idea is not to make volume at all costs, it is not the goal of our action on the ground. »
The strategy is in line with that of Investissement Québec. The president of Investissement Québec International, Hubert Bolduc, mentioned in an interview in May that the financial arm of the Québec government intended to target coveted investments “in a surgical manner”.
For Montréal International, aerospace, life sciences, artificial intelligence and technologies that help fight climate change are among the priority sectors.
The organization seeks to find candidates who will fill a missing link in the various ecosystems of the region. Mr. Lagarde gives green aviation as an example. Last year, Montréal International supported the Ricardo company – not to be confused with the famous chef’s company – which is working with engine manufacturer Pratt & Whitney Canada on a hybrid engine project.
The salaries paid by the companies supported during the first six months of the year are a demonstration of the benefits of Montréal International’s targeted approach. The average annual salary is $95,687, compared to $83,535 for the projects supported last year during the same period. “It remains, as (Prime Minister) François Legault would say, jobs that are very paying. »