Weekly Regional Business Intelligence | | | Written by Kieran Delamont, Associate Editor, London Inc. | | | More wobbles in VW supply chain puts PowerCo back in spotlight Volkswagen subsidiary PowerCo SE is maintaining that nothing is changing for its St. Thomas battery factory even as news hit that one of its primary customers, a VW plant in Tennessee that makes the electric ID.4 vehicles, will stop producing the vehicle. “Volkswagen’s Chattanooga assembly plant will shift its primary focus to higher-volume models that support sustained growth in North America,” Volkswagen said in a press release. The company indicated it is intending to transition the plant to manufacturing the VW Atlas — a model that has sold well but is not an electric vehicle. The official line is that nothing is changing for the St. Thomas plant, at least for the moment. “Our focus remains on delivering next-generation battery manufacturing in Canada through our landmark investment in the St. Thomas giga-factory,” PowerCo officials said in a statement. “This project represents a strategic, long-term commitment to supporting high-quality domestic jobs while strengthening North American supply chains.” The upshot: As they have each time the outlook for the plant looks in doubt, such as when VW slashed funding to PowerCo earlier in the year or when it announced closures of plants in Germany, local officials in St. Thomas have tried to stay confident. “The steel is going up now,” said Sean Dyke of the St. Thomas Economic Development office, speaking to The London Free Press. “It looks very impressive.” He also touted the meetings set up with companies interested in moving to St. Thomas. This is all well and good, but hard questions about the possibility of this plant will need to start being asked eventually. What will happen if VW pulls the plug on the facility? Or, what if the scheduled 2027 opening of the plant is delayed, likely to 2028 when VW’s assembly plant in South Carolina (and currently the only PowerCo customer) is set to start making an electric vehicle? What if production is curtailed and the job estimates that have been touted (and used to attract housing developers and additional businesses) turn out to be overstated? There is some speculation that PowerCo batteries could go elsewhere, with sector analyst Conrad Layson telling the Free Press: “My suspicion is they will open St. Thomas and, depending on demand, will export to Europe and for possible South America production. The footprint for St. Thomas is so large and it has to run at 70 to 80 per cent capacity to be successful.” For now, the optimism on the ground appears unwavering, but with each successive wobble in the VW supply chain and the mounting uncertainty of the North American EV market (not to mention the upcoming CUSMA/USMCA review), expect this plant to become a hot topic in the coming months. Read more: Volkswagen | London Free Press | | | London rents continue to fall, outpace national declines London’s residential rents continue to fall (and fall faster than the national average), according to the most recent Rentals.ca report. In London, average rent for a one-bedroom dropped to $1,663 in March, a 5.9 per cent decrease year over year (although they edged up, albeit very marginally, from February). Rents for two-bedroom apartments were down 5.7 per cent, to an average of $2,055. That drop is the 15th highest in the country and is sharper than the five per cent average decrease seen nationally. Across the country, asking rents are now at a 35-month low, the report says, after 18 consecutive months of decline. “Recent population decreases, record-high apartment completions and an oversupply of condos in certain markets has contributed to this trend,” the report stated, adding that “economic stress is also emerging as a key factor.” The upshot: The good news? Rents are down. The bad news? Rents are down. It’s definitely a good-news-bad-news story, depending on which side of the fence you sit, but agreeable to everyone is the reason rents are sputtering is an economy that is not putting out much in the way of good signals. Interestingly, while there has been a sharp uptick in rental construction over the last couple years and more supply is coming online, the narrative here seems to focus mainly on declining demand. “Whenever there’s uncertainty in any facet of the economy, there’s always going to be hesitation for the big decisions, and renting an apartment is part of that,” said Giacomo Ladas, associate director of communications for Rentals.ca, speaking to The London Free Press. That interpretation comes from a correlation the organization is drawing between rents and provincial unemployment figures, which indicate that the biggest declines are showing up in provinces like Ontario and Alberta, where unemployment is highest. “That’s driven by a variety of factors,” said Ladas, “but one of those is that young renters right now are having a difficult time finding work, and young renters, who drive a ton of rental demand, are currently under the most pressure.” Read more: Rentals.ca | London Free Press | | | LHSC plan to reduce nursing positions puts RN vs. RPN debate centre stage London Health Sciences Centre (LHSC) said this week it is shedding nearly 300 nursing positions over the next three to five years but says it won’t have to lay off any nurses to do so. “Staffing growth has outpaced patient care growth, creating a gap that we have to address responsible,” hospital supervisor David Musyj said at a community meeting on Wednesday. “We are not compromising on patient care. We are not reducing any care services, and we have no plans to lay off any staff.” The hospital says it will be shifting more of its workforce to registered practical nurses (who make less per hour than RNs). Currently, the nursing complement is 82 per cent registered nurses and 18 per cent registered practical nurses; LHSC is planning to adjust that closer to 80/20, which the hospital says will result in a net gain of 108 RPN positions. LHSC says the reduction will be phased over the next three years and will better align the staffing increase with the increase in patient volumes. “This is a very thoughtful and measured approach. It is grounded in data, aligned with peer hospitals and being implemented gradually,” Musyj said. The upshot: The mix between RNs and RPNs is a relatively important issue here, and part of what has the nurses’ unions crying foul, complaining that LHSC is trying to fix its financial pressures on the backs of workers. “It’s based on the fact that, in our opinion, registered practical nurses are paid significantly less than [registered nurses],” said Ontario Nurses’ Association president Erin Ariss, speaking to The London Free Press. The hospital says that’s not the case, and that the shift to more RPNs aligns them with “similar academic hospital peers.” The Registered Nurses’ Association of Ontario isn’t buying it, though: their president, Lhamo Dolkar, said “now is not the time to find cost efficiencies by further diluting your nursing workforce of RN expertise.” Cuts are not unique to London, though. The Ottawa Hospital recently announced plans to cut three per cent of its whole workforce, and nearby, 26 personal support workers positions were cut at Tillsonburg District Memorial Hospital; many in the healthcare sector had been warning that cut like this would become necessary if provincial healthcare funding wasn’t increased, although there’s likely some element of rightsizing following the pandemic going on here as well. The bottom-line question will ultimately be what impact this all has on patient care, though, and that won’t really be known for a while. Read more: CTV News London | London Free Press | | | Cowbell Brewing acquires Grand Bend’s Dark Horse Winery In an all-Huron region acquisition, Blyth’s Cowbell Brewing has purchased Grand Bend’s Dark Horse Winery. “It’s incredibly meaningful for us that our first expansion is right here at home,” said Natasha Fritzley, president of Cowbell Brewing Co. “The Lake Huron region is where we built Cowbell, and we’re deeply committed to continuing to invest in this region, its people and its future.” It’s the first expansion for Cowbell Brewing, and there’s one big change coming — the name of Dark Horse Winery is set to change, according to the new owners. “This is a new chapter, and we just felt that it should have its own story to tell,” Fritzley told the Exeter Lakeshore Times-Advance. She also said that plans for the site include two restaurants that will also serve as event centres, serving local dishes. “Huron County is home to an incredibly network of hospitality operators and craft beverage producers, and we’re proud to grow alongside them.” The terms of the deal were not disclosed. The upshot: The craft beer sector in North America has been dealing with stiff headwinds over the last couple of years, owing to a mix of competition, changing consumer tastes and a lower demand for alcohol overall; no surprise that some are choosing to diversify. Cowbell already makes cider and spirits, so the move into wine is the logical next step, though of course operating a successful winery is a slightly different ballgame than beers and ciders. That said, the company has proven to be a very savvy operator in building off its craft beer roots. Cowbell’s 26,000-square-foot facility in Blyth, situated on 111 acres, has become a very popular farm-to-table destination and a premier Ontario tourism spot, offering tours, dining, a huge dog-friendly patio and retail. Look for them to put that experience and expertise to work quickly in Grand Bend. Read more: Exeter Lakeshore Times-Advance | Huron Citizen | | | Ivey unveils new Toronto facility Ivey Business School officially opened its new Donald K. Johnson Centre in Toronto last week, part of its push to forge greater links with Bay Street. The new centre is located in First Canadian Place at 100 King Street West, former home of the Toronto Board of Trade, and, at 36,000 square feet, triples the school’s previous footprint in Toronto. The facility, which was realized with the help of a $30-million donation from Johnson, will be home to the school’s executive MBA programs. “I feel absolutely fantastic,” said Johnson, who was on hand to meet students and alumni at an opening event. “It’s a wonderful, wonderful space.” The facility, which Ivey says is “designed to meet the needs of the modern business leader,” features three lecture rooms, 22 breakout rooms and a 300-person event centre. The upshot: The early reviews of the building itself from students sounded positive, with one EMBA candidate saying it “feels like the Ivey experience in Toronto.” There was also praise for the design, with Ivey professor Mary Crossan noting stone design elements were a tasteful nod to the Ivey building in London. Overall, the facility is one component in a multi-year effort by Ivey to forge more tangible links to the Toronto business community. “With a greater presence in Toronto, we will be able to create even greater connectivity with the business community and further elevate our research to practice commitment,” said then-dean Sharon Hodgson in 2023, when the facility was announced. It’s also key to attracting Bay Street professionals in through its Ivey While-You-Work program, a 14-month accelerated MBA program designed to attract professionals early on the executive track. Read more: Ivey Business School | | | Five London organizations crack top SWO employers ranking Five London organizations were named to the list of Southwestern Ontario’s Top Employers this week. Two companies — Digital Extremes and LBMX Inc. — were named one of Canada’s Top 100 Employers in November, and were included on the southwestern Ontario list, while three more — London Hydro, Startech.com and Western University — were named to the Southwestern Ontario list. “Western is honoured to be in such good company on this year’s list of top employers,” said Jane O’Brien, associate vice-president of human resources. “We’re proud of our roots in London and of the impact our faculty, staff and students make in our city and across the region.” London Hydro landed on the list for the second year in a row, and CEO Ysni Semsedini added, “this recognition speaks to the culture we’ve built together. One rooted in collaboration, growth and a shared commitment to serving our community.” The upshot: There’s often an attempt to glean a larger economic narrative out of the list of winners, and this year, Mediacorp Canada went with a very elbows up, economic resilience angle to it. “A quiet transformation is reshaping Canada’s industrial heartland,” they wrote in a press release, praising employers “investing in knowledge-based roles, advanced manufacturing and emerging technologies.” Mediacorp’s editor Richard Yerema highlighted the region’s industrial base, particularly in advanced manufacturing and the electric vehicle supply chain sectors, saying that the region has seen “a shift toward advanced manufacturing and a more diversified economy.” Read more: Southwestern Ontario’s Top Employers | | | Dispatch: April 17, 2026 A summary of recent business appointments and announcements, plus event listings for the upcoming week. View listings here | | | | |