‘We’re ready for them:’ Texans see opportunity in western Canadian malaise

Realtor Robert Graham is delivering tens of thousands of brochures to British Columbia, Alberta and Saskatchewan

Cars travel along a highway with the skyline of downtown Houston in the background on May 20, 2010. (THE CANADIAN PRESS/AP-Houston Chronicle, Michael Paulsen)

The brochure’s cover has the Texas flag as a backdrop and shows an arrow pointing from Alberta to the Lone Star State.

“Arrowstar Realty invites you to relocate to Texas,” reads the mailer sent to businesses across Western Canada recently. “Join the 100s of companies that have already made the move!”

Inside is a letter — beginning “Dear Canadian Neighbour” — boasting of Montgomery County’s “BOOMING” 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.

“I definitely want Canada to pick back up. I would love for that more than anything,” says Graham.

But for now, he says, a lot of Canadian businesses need help to keep going.

“We’ve got doors open and we’re ready for them.”

READ MORE: Trudeau promises added incentives for first-time home buyers in Greater Victoria

Krisjan Jones, operations manager at livestock feed supplement maker Canadian Bio-Systems, says Lubbock’s 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.

“So essentially you get a blank canvas for free,” says Jones, who adds he’s 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, it’s more of a problem-solving exercise.

“We look at it as ‘What’s stopping you from saying yes to coming to Lubbock right now?’”

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 it’s 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 company’s 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 Precision’s activity and this year it’s at 30 per cent.

Alberta’s oil curtailments, trouble building new pipelines and cooling investor sentiment have depressed the Canadian industry, he says.

“It’s those three factors that are really starving our customers for capital, which means they’re not reinvesting in drilling, which means that our business here is just really slow — brutally slow.”

READ MORE: Developer offers free Tesla 3 with purchase of South Surrey townhome

Mark Scholz, head of the Canadian Association of Oilwell Drilling Contractors, says every member he’s 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 Alberta’s new United Conservative government to lessen the regulatory and tax burden are helping with competitiveness, but the southbound exodus is a wake-up call.

“The Americans are playing a very strategic game and quite frankly I think they’re winning at that.”

Lauren Krugel, The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

No active confirmed COVID-19 cases in Interior Health: BCCDC

Numbers from the BCCDC’s dashboard show 193 of the 195 COVID-19 cases in the region have recovered

Historic Hat Creek finds novel way to keep part of site open

VIP shopping experience offers people private visit to site’s gift shop

Mobile harm reduction service making weekly trips to Cache Creek

Service provides free kits, instruction, information, and referrals to those who need it

Ashcroft food bank benefits from donation as demand increases

Community Futures Thompson Country provides much-needed cash donation

MAP: Dr. Henry reveals which B.C. regions have seen most COVID-19 cases

B.C. health officials release a first look at how the novel coronavirus has reached all corners of the province

Pair accused of ‘horrific’ assault at Vancouver’s Oppenheimer Park at large

Police say Jason Tapp, 30, and Nicole Edwards, 33, did not show up to meet their bail supervisor this week

IHIT names homicide victim found in the Fraser Canyon this week

Police asking for tips into the suspicious death of 29-year-old Alicia Berg

No charges to be laid against 22 northern B.C. pipeline protesters

Twenty-two people were arrested in February, but Crown has decided not to pursue charges

“The Great Regional Air Hug” being organized by the Vanderhoof International Airshow Society

A multi-aircraft flyover over the region is being planned for August 15.

‘I’m pissed, I’m outraged’: Federal minister calls out police violence against Indigenous people

Indigenous Minister Marc Miller spoke on recent incidents, including fatal shooting of a B.C. woman

Plan in place for BC Ferries to start increasing service levels

Ferry corporation reaches temporary service level agreement with province

B.C. starts to see employment return under COVID-19 rules

Jobless rate for young people still over 20% in May

Williams Lake RCMP capture fugitive walking along Highway 97 in city limits

Witness said they could hear police yelling for suspect to ‘get down’

Most Read