Winnipeg's self-described economic cheerleaders are predicting continued growth for the city in spite of layoffs at high-profile employers and proposed hydro rate hikes that could diminish the city's competitive advantage.

Hundreds of job cuts at Great-West Life and Manitoba Hydro and the prospect of electricity rate hikes of 46 per cent over five years have shaken some of the confidence in Winnipeg, which has relatively few corporate head offices and has relied on relatively low electricity rates to attract manufacturers to the city and retain them.

The city's economy is sufficiently diverse and innovative enough to absorb these setbacks, Economic Development Winnipeg president and CEO Dayna Spiring said Monday at the non-profit organization's annual general meeting.

"For every job that Hydro's cutting or Great-West Life is cutting, we have startups that are starting to shoot the lights out," Spiring said at the Richardson Conference Centre, referring to companies such as meal-delivery app Skip the Dishes.

"There's going to be a shift and the jobs may be different, but we're seeing a lot of growth in industries that we maybe didn't see it in before."

Spiring said she does not believe the technological change that prompted Great-West Life to lay off 450 workers in Winnipeg will result in a diminishing insurance and financial services sector in the Manitoba capital.

"Great-West Life is going to make some changes. Commerce prevails and technology's changed and we have to keep up with that, but that's not to say the financial services sector is not going to do great things," she said.

Winnipeg's self-described economic cheerleaders are predicting continued growth for the city in spite of layoffs at high-profile employers and proposed hydro rate hikes that could diminish the city's competitive advantage. 0:12

'I don't want our guys chasing a chain'

Economic Development Winnipeg is attempting to position the city to capitalize on technological change by working with universities to ensure training programs are relevant, Spiring said. The agency is also still in the business of trying to lure private-sector employers to Winnipeg, but not at any cost.

"I don't want our guys chasing a chain restaurant. I want our guys looking at skilled labour, whether it's aerospace or advanced manufacturing or technology companies. If we're going to create that kind of growth, the chain restaurants are going to come," Spiring said.

She also said while she is concerned about hydro's rate hikes, she does not believe they will impact the Winnipeg economy.

"I think we've got to be clear: our hydro rates are still the lowest in the country, so we've got a little bit of room to move in terms of being competitive on strictly hydro. And the other costs of doing business in Winnipeg are very reasonable," she said.​

Winnipeg Mayor Brian Bowman said he was unaware of hydro's proposed rate hikes, which were announced on Friday.

Manitoba Growth, Enterprise and Trade Minister Cliff Cullen said he would prefer to wait and see whether the Public Utilities Board approves Manitoba Hydro's rate hikes.

If the hikes are approved, Manitoba could retain businesses by easing up on regulations, Cullen said.

The province must foster the technology sector — but there are better ways to do that than offer subsidies, he said.

Winter is a strength

Bowman said the city must be more strategic in the way it operates and he supports Spiring's intention to go after better-paying employers.

Spiring also said the city must play to its strengths, which include cold winters that offer the manufacturing sector the chance to test engines, batteries and sensors in poor conditions.

According to its 2016 annual report, Economic Development Winnipeg posted a $63,000 surplus on a $5.4-million budget.

The organization spent $3.6 million on personnel and administration last year, $1.6 million on marketing and other initiatives and $222,000 on facilities. It receives half of its budget — $2.8 million — from the City of Winnipeg.

The report also predicted Winnipeg's gross domestic product will increase 2.4 per cent this year, or $38 million.

At the annual general meeting, Spiring encouraged Winnipeg's economic leaders to be cheerleaders for the city and avoid talking about potholes and cold weather in favour of highlighting new infrastructure such as True North Square and Investors Group Field.