The mid-size company moving its operation to ease employee commute times, the textile business dealing with worker retention issues or the engineering firm's problems navigating commodity costs.
All these businesses are bound by concerns related to dwindling industrial and commercial space in Vancouver, inflationary pressures, the cost of living and COVID-19 trends.
Another thing they all have in common? Getting sound, trusted advice from the financial experts at Baker Tilly WM LLP Canada.
A leading, independent audit, tax and advisory firm based in Vancouver and Toronto, Baker Tilly WM LLP is uniquely positioned to address clients' needs successfully.
Drawing on expertise from a variety of disciplines, the Baker Tilly advantage ensures the alignment of its teams' professional skills and experience with client requirements, resulting in exceptional service and business outcomes for domestic and foreign corporate groups, professionals and not-for-profit organizations across a wide range of industries.
In the case of Baker Tilly partner Wilson Telford, he helps companies in the manufacturing sector with both long-and short-term planning. Is a move out of Vancouver the right move? How do companies deal with a labour shortage or retain employees who live further afield?
And if a move is necessary, how long do you have to get all your ducks in a row?
In each of these scenarios, Telford is akin to the general manager of a pro sports team: evaluating market conditions, checking in on players, interacting with coaches and monitoring both current and future trends.
“I will walk them through many important considerations, such as costs of shutting down the old location, capital requirements to set up the new location, and staffing considerations,” Telford explains. “Generally, we will try to put some ballpark numbers on paper and then fine-tune it if the client gets serious about it. It is important to give our clients the best data we can in order to make their decision.”
It’s no secret that Vancouver’s available industrial land base is shrinking. Add to that the pressures of triple net leases, high property taxes and a labour force that lives outside of the city, and it becomes clear that moving the operation could be in the cards.
The short-term considerations of a move are many. There will be downtime in the operation and potentially massive capital costs upfront.
Telford walks clients through what’s needed to keep the operation afloat or advises clients on how to ramp up work or product supply before the move to bridge that gap.
“It could be really detrimental to a business because if your customer is relying on your product and then suddenly one day you have nothing, that could be multiple customers walking out the door,” Telford describes. “There is a lot of planning on that side and a lot of cash implications.”
Then there are the everyday, practical considerations: how does the new location look, does it need upgrades or what the mortgage may look like?
Older buildings could experience unforeseen challenges like power grid issues, building code problems or space constraints. In these instances, Telford recommends clients get some backup advice from outside consultants in the building trades, an engineer or a commercial contractor.
“It’s mind-boggling how much money and time you can spend just planning it out. If your lease is up next month and you’re moving a $20-million manufacturing business, you’re screwed,” Telford says. “This is something that can take more than a year to plan. It’s something that can’t be taken lightly.”
Much of the same must be hammered out when planning a longer-term move. Return on investments, debt servicing and future growth strategies need to be considered.
“I tend to focus on the why they are contemplating the move and work on helping them understand how this will impact their business both short and long term,” Telford reveals. “In the short term, there are all the costs and headaches, but long term generally means growth and opportunity.”
To learn more about how Baker Tilly can alleviate the stresses of moving your business, connect with Wilson at Baker Tilly WM at www.bakertilly.ca/en/vancouver-british-columbia/professionals/d.-wilson-telford-cpa-ca-bba.
