London Inc. Weekly

Written by Kieran Delamont, Associate Editor, London Inc.

Stellantis idles Windsor assembly plant on Trump’s auto tariffs, local eyes turn to CAMI

Canada may have been left off of U.S. president Donald Trump’s game-show-esque reciprocal tariff announcement on Wednesday, but the auto sector certainly took a hit this week. The Trump administration’s previously announced 25 per cent tariffs on all foreign-made vehicles came into effect on Thursday, to which prime minister Mark Carney responded with our own 25 per cent tariff on U.S.-made vehicles. The domestic fallout started early, with Stellantis in Windsor announcing a two-week shutdown set to begin on Monday, meaning temporary layoffs for the roughly 4,500 employees represented by Unifor there, plus 900 at five American parts factories that are also being temporarily shut down. “Unifor warned that U.S. tariffs would hurt auto workers almost immediately and in this case the layoffs were announced before the auto tariff even came into effect,” said Unifor president Lana Payne. “Trump is about to learn how interconnected the North American production system is the hard way, with auto workers paying the price for that lesson.”

The upshot: All eyes are on the CAMI plant now. On Thursday, Mike Van Boekel, president of Unifor Local 88, said that no work stoppages or layoffs have been announced yet. “We have been told it is business as usual at CAMI for now,” van Boekel said in a post. “There is a lot of language to sort through as the auto companies and unions figure out the details.” Van Boekel also said that the joint Unifor Auto Council and Independent Parts Suppliers Council were holding meetings on Thursday to determine any immediate changes coming down the pipe for Canada’s auto sector. There has been some speculation that Hyundai’s new partnership with GM may mean that the South Korean auto manufacturer would shift production of a new cargo van to the CAMI plant, but that plan appears to be on ice for the moment ― how long, exactly, is hard to predict. “We were expecting something to happen and then everything changed,” said Sam Fiorani, a U.S. auto industry analyst, of the talk of Hyundai producing vans in Ontario. “But there’s still hope. I’m looking forward to seeing what they will do.” 

Read more: The Guardian | Unifor Local 88

London home sales slide 33 per cent in March as listings pool on the market

According to the London and St. Thomas Association of Realtors (LSTAR), which released data for home sales in the month of March this week, a total of 508 homes exchanged hands in the region (the LSTAR catchment area also takes in Strathroy, St. Thomas and portions of Middlesex and Elgin counties), a 33.5 per cent decline compared to sales in March of 2024. On the supply side, a total of 1,224 new properties entered the market in March, a decline of 11 per cent compared to the same period a year ago, however active listings (a total of all listing) for the month sat at 2,442, a 21.1 per cent hike from March of 2024. At the end of March there was a total of 4.8 months of inventory (a ratio representing the number of months it would take to sell the homes that are currently listed based on current rate of sales activity) compared to 2.6 in March 2024. “The Canadian real estate market is facing a challenging environment due to various factors, such as U.S. tariffs and broader economic uncertainties,” observed LSTAR board chair Dale Marsh. “These uncertainties have clearly impacted consumer confidence, leading to the volatility we’re observing.”

The upshot: Tariffs, stock sell-offs, job uncertainty… it’s one big batch of bad-news soup for local real estate professionals, who would traditionally be heading into their busy spring season. After a long road of interest rates hikes, the Bank of Canada has brought its policy rate down by a total of 225 basis points since last June, but the tariff curveball has prevented lower rates from reviving London’s housing market. Simply put, homebuyers need to feel their employment situation is solid before committing to monthly mortgage payments, and everyone is watching the tariffs as we move through the spring. For the few that are buying, it’s worth noting that the average price remains objectively stable at $643,159, only a 0.6 per cent decline from a year ago and just a smidge lower than last month, when it sat at $647,620.

Read more: LSTAR | London Free Press

Fanshawe cuts 40 programs as enrolment plummets

The initial hammer has come down at Fanshawe, which announced the suspension of 40 programs across all of its campuses on Wednesday. “Based on enrolment trends, labour market demand, financial sustainability and changes to federal international student policies, certain programs will no longer accept new students,” the college explained, adding that it expects full-time enrolment to drop by 36 per cent over the next two years. “These decisions allow the college to refocus resources on areas with higher demand and future growth potential.” The list of suspended programs is long and wide-ranging, including such programs as broadcasting, construction project management, digital media, food and beverage management, automotive service management and international business management. “These are tough decisions and they were not made lightly,” said college president Peter Devlin. The college is also offering buyouts to all full-time staff over the age of 55. “We will have fewer programs and a right-sized workforce. We will have a deficit position while we reshape Fanshawe over time.”

The upshot: It’s not unexpected news ― everyone knew that cuts were coming in the wake of the international student visa cap, though it might be surprising to some just how wide-ranging the number of suspensions are. The school says the decisions were made on the advice of StrategyCorp, a consultant brought in to audit the program offerings with an eye to financial sustainability. “We took a very comprehensive, data-driven, evidence-based approach to the program review,” said Devlin. The extent of the job losses will have to be worked out with the faculty union, OPSEU Local 110. Its president, Mark Feltham, told The London Free Press that they were “extremely disappointed that Fanshawe has deemed it necessary to cut these programs,” and that “our collective agreement has very specific processes for dealing with such situations, and we will be following these processes to the letter.” 

Read more: CBC News London | London Free Press

Mill Street moves to Simcoe Street

Labatt is moving the production of its Mill Street Brewery beer brand from North York to the Labatt plant in London. The move, said Labatt, is primarily cost-related. “Industrial lease rates in North York have increased substantially and we have existing capacity within our Ontario brewing network,’ said company spokesperson Hannah Love. “Currenty production volumes will be maintained, and consumers can continue to enjoy Mill Street’s award-winning beers as they do today.” 39 jobs are being cut at the North York plant, but it’s not clear yet if jobs will be added at the London plant. David Bridger, president of SEIU Local 2 (which represents workers at Labatt plants), said that the move will mean “increased work in the London plant,” noting that “it’s not an insubstantial amount of liquid.” Labatt’s parent company, AB-InBev purchased Mill Street in 2015, and has produced at least some of its Organic Lager out of the London plant since 2016, according to the Toronto Star. One of the original founders of Mill Street, Steve Abrams, wasn’t thrilled to hear the news. “I get it from a business perspective, but all those people that got laid off, it breaks my heart.”

The upshot: It looks like Labatt is hoping to lean more heavily on its London plant – a couple weeks ago, it also announced that it was adding production of Busch De-Alc, a non-alcoholic beer, to the plant. Analysts predict that this will probably mean a slimming down of the number of Mill Street beers on offer, going forward. “What this is going to mean for Mill Street, I think, is basically everything but their Organic Lager is going to pretty much cease to exist,” said beer analyst Stephen Beaumont. Another beer writer, Jordan St. John, echoed that idea to the Toronto Star, predicting that only a few of their marquee beers will survive. “I think anything other than that – all of their seasonal releases – will be gone,” he said. 

Read more: Toronto Star | CBC News London

Nine-tower residential development proposed for passed-over casino site

There’s another major new housing proposal being floated at city hall, this one a 2,000-plus-unit development at Wonderland Road near Bradley Avenue in the southwest end of the city. The proposal, from property owner Walt Spivak, is located on the plot of land that was at one time earmarked as the site of a new Gateway Casino ― scrapped in favour of a renovation of its existing casino at Western Fair District ― and would include nine apartment towers, the tallest of them topping out at 22 storeys. “When one door closes, you try to open another door and look at what the best use for the property is,” Spivak told The London Free Press. “It’s the perfect location to have housing…the community that we want to build there is very unique and very attractive to not only first-time renters, but people that want to simplify their life and live in an incredible community.” The development proposal also includes over 5,000 square feet of commercial space.

The upshot: Mega-proposals like this are becoming commonplace in London lately, and city politicians seem more than happy to play ball. It’s still early stages for this project, but ward 10 Councillor Paul Van Meerbergen is on board, calling it “the needed housing that we require in the area,” and adding “it’s not like it’s disruptive in the sense that it’s right in the middle of a subdivision.” Overall, he said he was “neutral and open-minded about it.” Other councillors want to kick the tires on sewer and water capacity in the area but will need to await technical reports from city staff before the project can move forward. Council will also be happy to see major development projects proposed for other areas of the city, as opposed to just the northwest. “We’ve done as much as we can in the north and the northwest, and now I think the next opportunities are in the east, and definitely south,” said Councillor Steve Lehman, chair of the planning committee. 

Read more: London Free Press

Downtown office vacancy continues to struggle, warning bell sounded on industrial space

CBRE’s Q1 2025 numbers on London’s downtown office vacancy are in, and once again they don’t paint a pretty picture. London’s downtown office vacancy rate is the highest in Canada, standing at 32 per cent, with the downtown posting a cumulative 448,000 square feet of negative net absorption since Q2 2023. “The office market has continued to struggle with eight consecutive quarters of negative net absorption,” the report reads. Outside of the core, the suburban office market remained relatively unchanged in the city with a 10.5 per cent vacancy rate, which according to CBRE, might in turn lend a hand to the struggling core. “As suburban deals increase and push up pricing in the area, it is possible that downtown space may become more attractive, potentially reversing this trend.”

The upshot: CBRE also released its industrial market figures for Q1 2025 last week, and worth keeping a keen eye on is a jump in available industrial space, which has been beneath the three per cent mark for several years. Attributed primarily to tariff uncertainties, the report stated: “London started the year with a notable increase of 80 bps to 3.6 per cent, however is still positioned well below the national average. With increased trepidation in the auto supply chain and manufacturing industry, London and its nearby regions face immense economic headwinds and clouded uncertainty from tariff pressures.” 

Read more: CBRE Office Report | CBRE Industrial Report

LERT makes first moves in response to tariff threats

The London Economic Response Team (LERT) announced its first moves in response to U.S. tariff policy this week. On Wednesday, Mayor Josh Morgan used his strong mayor powers to direct city staff to update London’s Industrial Land Development Strategy in an effort to attract manufacturers to the city. In addition, LERT zeroed in on the regulations around home-based businesses. City Council will be asked to consider allowing home-based business owners to hire up to three employees who do not live in the home and also expand opportunities for home-based food production in accordance with provincial health regulations.

The upshot: If approved by council, the changes to the Industrial Land Development Strategy would aim to attract manufacturers that produce goods currently imported from outside Canada. “By identifying supply chain gaps and attracting strategic investment, we’re building a stronger, more self-sufficient economy for the future,” Mayor Morgan told CTV News London. The home-based business changes, while somewhat symbolic, aim to pave a path for home-based micro and small businesses to grow without running afoul of municipal bylaws. “Our small businesses are the backbone of London’s economy, and by removing outdated restrictions, we’re giving entrepreneurs more room to incubate, and scale up,” said Coun. Corrine Rahman, co-chair of the task force. “These changes will help local businesses thrive, create jobs, and support families right here in our community.”

Read more: CTV News London

Dispatch: April 04, 2025

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

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