Tech taking over
Study points to growth of tech sector, now among region’s 5 biggest economic generators
From almost nothing a decade ago, technology has erupted to become one of the Okanagan’s powerhouse economic engines.
“What makes it really exciting is it’s just getting started,” said Kelowna Mayor Colin Basran. “These growth figures tell their own story.”
The figures Basran is referring to are economic-impact numbers released by tech support group Accelerate Okanagan at a news conference Wednesday.
The Accelerate-commissioned study pegs tech as a $1.3-billion-ayear industry, up 30 per cent from the $1 billion in a 2014 study.
About $1.03 billion of the $1.3 billion is the revenues of 633 tech companies in the Valley, and $284 million is indirect impact with businesses supplying the tech industry.
The sector now employs 7,600, up from 6,500 two years ago.
Fifty-two per cent of tech workers are under the age of 35.
Accelerate CEO Raghwa Gopal expects the next study, in 2018, will show tech worth $2 billion a year.
“Tech is driving a demographic shift in Kelowna,” said the mayor.
“Traditionally a retirement haven, Kelowna now has an influx of young professionals like never before from across Canada. UBC Okanagan and Okanagan College graduates are also staying here for the work-life balance.”
Ten years ago, no one could have anticipated the burgeoning size and growth rate of the industry.
Tech was a niche player in the economy in 2006 with only a handful of software, animation, web and app businesses.
Today, it has charged onto the top-five list of the biggest economic generators in the Okanagan.
Central Okanagan Economic Development Commission manager Corie Griffiths said the top five are health care, construction/real estate, retail/wholesale/trade, tech/professional services and manufacturing.
Tech’s surge has helped push traditional top-five sectors forestry, tourism and agriculture/wine off the list.
“Tech was almost nothing 10 years ago, and then it was really just six years ago that it burst onto the scene,” said Griffiths.
“It’s a great addition to our eco-system of UBC Okanagan and Okanagan College pumping out graduates, fibre optics and the airport making it possible to live here and do work around the world and a desirable lifestyle that’s attracted tech and other industries.”
Okanagan tech really burst onto the world scene in 2007 when kids online playground Club Penguin sold to Disney for $350 million.
Since then, the Okanagan, and particularly Kelowna, has been considered a great place to start, grow and move a tech company to for its smaller-city work-life balance.
The resulting cluster of 633 companies is 60 per cent made up of businesses five years of age or younger.
Karen Olsson of removing-bullying-from-the-Internet firm Community Sift was invited to speak at the news conference because the company she works for is typical.
Community Sift started in 2012, has grown from eight staff a year ago to 43 now, utilized Accelerate for mentoring and finding financing, and has just finished a $1.6-million fundraising round.