Weekly Regional Business Intelligence
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Written by Kieran Delamont, Associate Editor, London Inc.
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PowerCo firms up two major construction contracts
Two major contracts have been awarded on the construction of the Volkswagen-backed PowerCo EV battery plant in St. Thomas, moving the project one step closer to reality. The Stelcon Group was awarded the contract for the structural steel work, with Magil Construction (a Quebec-based company that maintains an office in London) winning the contract for the foundation work. The two contracts are expected to require around 500 skilled workers, on top of the 200 or so people working on the 140-hectare site currently. “By leveraging innovative and skilled local expertise, St. Thomas will strengthen Canada’s position in the global EV battery manufacturing industry,” said PowerCo CEO Frank Blome. “The St. Thomas gigafactory is a cornerstone in our ambition to build a global cell company with strong roots in Europe and North America, safeguarding direct access to one of the key technologies of the 21st century.” The first pouring of cement is expected to begin “within weeks” the company said.
The upshot: Every progress announcement, large or small, from the PowerCo project seems to bring a tiny bit of relief for those nervous about the plant’s future. Since the tariff and trade war kicked off earlier this year, and with a stumbling EV market in the background, at times it has felt like there is a Sword of Damocles hanging over the project’s future. The start of major construction work should ease worried minds somewhat. PowerCo, for its part, is singing the same tune they have since the start: that this investment is being made on timelines that will long outlast Mr. Donald J. Trump, and that they are committed to the project. “What we’re doing here really outlasts a lot of what we see going right now; it’s not something that we’re going to allow to impact what we are doing for a long-term plan,” said PowerCo’s chief procurement officer Meredith Gibbons. “We’re building this factory for decades and generations to come.”
Read more: CBC News London | Global News
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London housing starts plunge in first half of 2025
London’s housing starts for 2025 are only around half of the number of projects started last year, according to recent data from the Canada Mortgage and Housing Corp. As of July, there were only 877 starts in the London region (which includes St. Thomas and additional surrounding communities), a massive drop from 1,579 logged by this point last year and marking the slowest level of construction since 2001. “It’s been a very slow year for the region as a whole, and for the City of London specifically,” Anthony Passarelli, CMHC’s lead economist for southern Ontario, told The London Free Press. Passarelli said it is a trend they are seeing in other cities as well, chalking up at least some of the slow down to economic uncertainty around tariffs and trade. “In many of Ontario’s larger communities, we’ve seen the same story play out, where housing starts are at these decade or multi-decade lows,” he said. “This is clearly something that’s been affected by all the low consumer confidence that exists in the market.”
The upshot: Acknowledging that London is unlikely to match the total number of starts from last year (3,723) Jared Zaifman of the London Home Builders’ Association pointed out that a number of large apartment projects are set to begin in the next month or two, which tend to represent the bulk of starts in any given year. However, he agreed that “the numbers on the singles and semis has still been lower than what we would like to see right now,” but that “it’s certainly kind of par for the course with the market.” According to the CMHC’s projections, the region is on pace to build between 2,100 and 2,650 homes this year, well off the median pace of around 3,400 housing starts per year.
Read more: London Free Press
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Habitat for Humanity to close two ReStore locations
Two of the three Habitat for Humanity ReStore locations in London are set to close this fall. Habitat for Humanity Heartland Ontario, the non-profit organization that runs the stores (which supply second-hand building materials and furniture) said the Wonderland Road store (pictured) will close by the end of September, with the Adelaide Street store closing in November. The ReStore located on Pacific Court will remain open. The organization also said it would be selling a 1.3-acre piece of land on Highbury Avenue, which had been approved for a 20-unit townhouse project. “While these decisions have been incredibly difficult, we look forward to a healthy path ahead in strengthening our social enterprise model and establishing new build projects within the scope and size we have always managed well since 1993,” CEO of Habitat for Humanity Heartland Ontario, Susan Fahner, told CBC News London. “The housing crisis is persistent and unyielding and requires creativity and partnership in the path ahead across the six counties that we serve.”
The upshot: The regional organization seems to really be feeling the bite of the last five years. They had made plans to expand operations pre-pandemic, but those have been “severely challenged” by the housing crisis, rising prices and increasing costs. They certainly are not alone in that, with many non-profits and charities all dealing with increased costs and a stretched donor base. Still, the closures will be a loss to those who used the stores. “I use it all the time. It’s a wonderful way of trading in and giving back to the community, and rehabilitating stuff that’s very useable. It’s just tragic,” one resident, Leslie Brock, told CBC. “It’s very helpful for the neighbourhood and for low-income people,” said another resident, Hazem Aslan. “Sometimes you come into the store and get what you need at a really good price.”
Read more: CBC News London
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City cements hybrid work policy
The City of London says it is following council’s direction and making its hybrid work policy permanent. “This decisions comes after extensive assessments and pilot programs, all aimed at optimizing our workspace and improving our ability to serve our residents effectively,” said Paul Ladouceur, acting deputy city manager, in a statement. The city has tinkered with its hybrid work policies over the years ― most notably by asking planning building permit staff to come back to the office four days a week, in response to concerns from developers that projects were being delayed ― but for the most part has a pretty fluid policy that allows employees to spend up to 50 per cent of their time working from home.
The upshot: Take that, Doug. Cities across Ontario have been getting a little bit of pressure from Premier Ford, who wants to see municipalities get their workers back in the office five days a week, just like he’s doing with all provincial staff. It might be a hard sell in London, though, where a looming City Hall renovation project and a lack of city-owned office space pose logistical challenges ― though on the flipside one might look at the 30 per cent downtown office vacancy rate and think the city could certainly find space for people to work. That said, hybrid work remains a key aspect of worker retention, and an abrupt end to hybrid work in London would likely not be a popular move. So, the status quo stays in place.
Read more: CTV News London
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Auto supplier Qualtech Seating Systems to shut down
The Magna Corporation announced last week that it was winding down operations at Qualtech Seating Systems, a parts supplier to the GM CAMI plant. “This decision follows a comprehensive review of the business and fluctuating industry dynamics,” said a statement from Tracy Fuerst, vice-president of corporate communications. “We appreciate this decision is a difficult one for the valued and hard-working employees at Qualtech, and the company is committed to working with the team through the plant closure process to help ensure a smooth transition.” The closure of the Commerce Road facility will result in the loss of 49 jobs. “This is devastating for our members,” said Unifor Local 2009AP president Jimmy D’Agostino. “These are plants that were supposed to have a product and keep going.” The plant is expected to be fully closed by October 10.
The upshot: Fallout from the combination of a trade war, plus tepid demand for its BrightDrop electric vehicle commercial van, idled the CAMI plant a few months back. The plant is set to resume production around October, and according to Unifor Local 88 president Mike Van Boekel it is currently being retooled and there is a new interior design for the BrightDrop (one might assume that means a new seating supplier, but GM hasn’t confirmed this one way or another). Unifor said it is meeting with company officials at Qualtech to determine the next steps, which may include moving workers to other plants or setting up services to help members in their job searches.
Read more: London Free Press | CTV News London
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DJE & Associates acquired by McFarlan Rowlands Insurance
DJE & Associates, an insurance and financial services group of companies that includes Sutherland Elliott Insurance Brokers, Gaiser Elliott Insurance Brokers and Thames Financial, is being acquired by London-based McFarlan Rowlands Insurance, a division of McDougall Insurance Brokers. “We’ve always held DJE & Associates in high regard,” said Jason Schneider, president of McFarlan Rowlands. “They’ve always done things the right way ― and we know that joining the forces of McFarlan Rowlands and DJE & Associates will be of tremendous benefit to our collective customers, carriers and staff.” For DJE & Associates president David Elliott, it looks like a swan song move at the end of his career ― he says he is set to retire after a brief transition period. “Partnering with McFarlan/McDougall ensures that everyone will be treated consistently with DJE & Associates’ longstanding principles and practices,” Elliott said. “I am excited for what I know the future will bring.”
The upshot: Mergers and acquisition activity in the North American insurance industry has been on a tear for quite some time, driven by pressures modernize and adopt digital transformation, a need for scale to improve financial stability and market share, and the ongoing consolidation of independent brokerages due to succession planning and retirement. “Canadian insurance brokerage M&A activity has exhibited a consistent upward trend for the past decade,” states a February 2025 report from Smythe LLP. Lorne McDougall, VP at McDougall Insurance, said that “supplementing the excellent team behind DJE & Associates with the scale and resources of McFarlan Rowlands/McDougall will lead to win-wins across our organization,” adding that “we’ve had excellent results growing in western Ontario and know that DJE & Associates will continue this trend ― our focus on community-oriented, broker-first brokerages fits seamlessly with DJE & Associates’ existing culture.”
Read more: Canadian Underwriter
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Dispatch: August 22, 2025
A summary of recent business appointments and announcements, plus event listings for the upcoming week.
View listings here
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