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Greater Niagara Chamber of Commerce

Daily Update: February 27, 2026

In this edition:

  • Regional council directs Gale to ‘refrain from any further action’ on amalgamation
  • Gale making ‘no apologies’ for reviving amalgamation discussion
  • NRP looking into downtown St. Catharines office amid cash crunch
  • Economy contracted in Q4, Statistics Canada reports
  • Manufacturing sector returns to growth after two consecutive monthly contractions
  • Business optimism returning in latest survey on business conditions
  • Focus on Human Resources

 

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Picture credit: Regional Municipality of Niagara

Regional council directs Gale to ‘refrain from any further action’ on amalgamation

Niagara Region Chair Bob Gale asked for input, and he received plenty of it Thursday night.

An impromptu committee-of-the-whole meeting was called ahead of the scheduled regular council meeting, a chance for members to publicly state their thoughts on potential governance reform, as well as the two letters Gale sent on this topic late last week to Niagara’s 12 mayors and Municipal Affairs and Housing Minister Rob Flack.

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Picture credit: Alisa Valetova / Greater Niagara Chamber of Commerce

Gale making ‘no apologies’ for reviving amalgamation discussion

Not everyone is supportive of how Niagara Region Chair Bob Gale has brought the issue of potential amalgamation back to centre stage, but at least he has people talking about it.

This was an attitude he shared Friday at his State of the Region address at the Sheraton Fallsview in Niagara Falls.

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A row of buildings in downtown St. Catharines

Picture credit: St. Catharines downtown association

NRP looking into downtown St. Catharines office amid cash crunch

Describing downtown St. Catharines as a “hot spot” for criminal activity, Niagara Regional Police Chief Bill Fordy says his officers are working with the community to address their concerns.

“We have identified it (downtown St. Catharines) as a hot spot, which is a location with a high crime area,” Fordy told the police board Thursday.

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A red line on an economic graph representing a downturn

Picture credit: Who is Danny / Adobe Stock

Economy contracted in Q4, Statistics Canada reports

Real gross domestic product (GDP) declined 0.2% in the fourth quarter of 2025, after rising 0.6% in the third quarter. The fourth quarter decrease was due to withdrawals of business inventories following inventory accumulations in the third quarter. Offsetting some of the decline was higher exports, household spending and government capital investment. On a per capita basis, GDP was unchanged in the fourth quarter after increasing 0.5% in the previous quarter.

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Rolls of steel sit in a warehouse

Picture credit: industrieblick / Adobe Stock

Manufacturing sector returns to growth after two consecutive monthly contractions

The manufacturing sector rose 1.2% in December, partially offsetting the back-to-back monthly declines in October and November, with expansions in durable-goods and non-durable-goods manufacturing industries.

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Picture credit: goodluz / Adobe Stock

Business optimism returning in latest survey on business conditions

Businesses continue to anticipate a variety of obstacles over the next three months (see Note to readers). While pressures of both cost- and labour-related obstacles continued into the first quarter of 2026, the proportion of businesses with a positive outlook has increased compared with previous quarters.

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Focus on Human Resources

Canada’s construction industry is navigating a complex landscape defined by record levels of activity alongside persistent workforce constraints.

In 2025, nonresidential construction investment reached unprecedented highs, supported by substantial growth in civil, commercial, and medical construction starts according to ConstructConnect Insight data.

Despite these strong project pipelines, the construction industry continues to experience slow employment growth, which has the potential to impact project timelines and firms’ profit margins.

Recent employment data highlights this challenge, showing a 0.4 per cent decline in construction employment between January 2025 and January 2026. This marks the continuation of a three-year period characterized by limited workforce expansion, with total employment growing by just under two per cent. As construction activity remains elevated, the industry’s ability to fulfill project demand may be constrained by the ongoing difficulty in building its labour capacity.

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Through the Daily Updates, the GNCC aims to deliver important business news in a timely manner. We disseminate all news and information we feel will be important to businesses. Inclusion in the Daily Update is not an endorsement by the GNCC.

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