86 BCBusiness july 2015
Recession, and we're still being ham-
pered by a relatively slow-growth mar-
ket globally," explains Bryan Yu, senior
economist with Central 1 Credit Union
in Vancouver. If demand's not there,
says Yu, it puts cost pressure on the
rest of the business. And in 2014, there
were many cost pressures—including a
reinstated provincial sales tax—for busi-
nesses to account for.
Then there are the historically low
interest rates, which are good for just
about everybody—except financial insti-
tutions. "Areas such as financial are
still being squeezed by tight margins
in terms of what they're getting and
the rates they're paying out," says Yu.
"It's essentially a gap that narrows, and
that's something they've been facing
for a few years now." While consolida-
tion among credit unions has created
internal efficiencies and facilitated new
investments, pinched margins present a
universal challenge. They make it
harder for companies to reinvest in
themselves and their workers. On
average, Canadian companies invested
$13,200 per worker in their operations
last year, but B.C. companies spent just
$10,400—the least of any province in
Western Canada.
Rising revenues are good, but with-
out reinvestment, it will be harder for
companies to gain a greater share of
global markets—in good times, as well as
bad. While the biggest companies on this
year's Top 100 list might rule the domes-
tic pond, a lack of investment threatens
to leave them gasping for air when they
reach the roiling global waters.
■
whIle The bIggeST COm-
panIeS On ThIS year'S
TOp 100 lIST
might rule
the domestic pond,
a laCK Of InveSTmenT
threatens to leave
them gasping for air
when They reaCh The
rOIlIng glObal waTerS
