When China called, Dennis Brown listened.
The owner of Flags Unlimited on St. Vincent Street in Barrie has opened a small plant in China to handle some of its custom digital advertising business overseas.
However, Brown said he had to lay-off a handful of Barrie staff to make the project more economically feasible.
With 48 remaining staff, Flags Unlimited, which has been a mainstay in Barrie for the past 50 years – with Brown at the helm for 20 – will continue to expand the flag market across the globe.
“We’re doing this from a position of strength. Sales are up dramatically this year. Some of the equipment here was nearing the end of its life cycle, so it seemed like the best way to proceed,” Brown said.
In a Canadian Business article, Jason Henderson states Chinese exports are expected to grow by 11% and imports are expected to see growth of 8% during the next few years.
China is now Canada’s second largest trading partner next to the United States.
Canada was listed as China’s 21st trading partner, so there is opportunity for growth, Henderson said.
Barrie’s director of business development, Stephanie Schlichter, said many manufacturers are now working in a global marketplace.
“We have been in contact with Flags Unlimited, who have made shifts in a small component of their business operation to increase their overall competitiveness in the marketplace and support their future growth. They do remain committed to their Canadian operation in Barrie,” Schlichter said.
While some companies shift business globally to remain competitive, Schlichter said there is an overall trend to reshoring and some companies are moving their operations back into the North American market.
“Specific to Barrie, businesses choose to grow and stay in Barrie due to its highly competitive cost of doing business, strategic location to both domestic and foreign markets and skilled labour pool,” she said, pointing to the growth in a number of local firms including Linear Transfer Automation, Transcom and GEEP.
As for Brown, while his new plant in China will employ approximately 15 people, he said he has no plans to close the Barrie operation.
“We’re going to be here for another 50 years,” Brown said.
