No tariff threat here: How the pandemic prepared one Canadian developer to source local
The Canada-U.S. trade war has been stoking affordability and job security fears in recent weeks, but one B.C.-based developer isn’t too worried by levies on cross-border goods.
That’s because AB Wall has turned to local suppliers for development projects ever since the COVID-19 pandemic stalled global shipments.
“Local is 100 per cent more reliable,” Alf Wall, co-founder of AB Wall, told Daily Hive in an interview. “Even though offshore is probably cheaper, it’s unreliable. It’s like, we need the cabinets in March, but they’ll be here in June.”
The company never specifically focused on buying or not buying American products before, but now that tariffs are in place and the buying Canadian sentiment is strong, it’s finding the vast majority of their suppliers are Canadian.
For Highstreet Village, AB Wall’s latest development in Abbotsford, the company said 80 per cent of building materials were sourced locally. And 95 per cent of wood products used in the newly built houses were Canadian. The doors and windows were built in the Lower Mainland, and nine of every 10 tradespeople involved in the project were local to the region.
“I mean, our cabinets, for example — they’re made right here in Abbotsford,” Wall said.
The only products Wall has trouble sourcing locally are flooring and appliances. He used to get flooring from a plant in Ontario that has since closed down. And when it comes to textiles for carpets, he said certain US states are major exporters. But he was recently pleased to confirm the air conditioning units for Highstreet Village were Italian-made, suggesting there are options for builders in the tariff era.
Wall’s focus on strengthening ties with local suppliers started during the pandemic when getting shipments from overseas became difficult. Ever since then, Wall has prioritized getting products and materials on time — even if it costs more. He thinks navigating pandemic challenges was more difficult than the current souring of U.S.-Canada relations.
While it may not be possible to get every single item for a new home locally, Wall thinks it’s definitely doable to get a house built with a vast majority of supplies coming from Canada.
Trade war could weaken buyer demand but also soften building costs
A rendering of the interior of a home in the Highstreet Village development in Abbotsford (AB Wall/Submitted)
Of course, tariffs could still have an impact on AB Wall on the demand side. If pre-sale buyers lose their jobs and aren’t able to afford the homes anymore, that could be a problem. And securing new interest in uncertain economic times could also be challenging.
But on the building side, Wall believes the tariffs may bring construction costs down. During an economic downturn, prices could soften.
“Local trades may say ‘well, we’ll take less money to do the same job,'” Wall said. “Better to have a job than no job at all, right?”
Local government permit delays a bigger hurdle than tariffs
Construction progress at Highstreet Village in Abbotsford (AB Wall/Submitted)
Wall knows not all developers are in a similar position. Some may have a different array of suppliers coming from different places.
But overall, for his company, Wall said he faces bigger challenges than tariffs right here at home. The most frustrating roadblock? Getting the appropriate permits and approvals from local governments.
“We bought the land in 2018, and now we’ve probably completed the first dwelling [more than] six years later,” he said of Highstreet Village.
Wall thinks getting housing built at a reasonable speed is key to making homes more affordable.
“We need to get permits for shovels in a year,” he said. “That’s how it should be.”