Town approves Germany trip in light of possible tariffs

Jeff Helsdon, Local Journalism Initiative Reporter

In light of a fluctuating relationship with the United States due to the tariffs imposed earlier this week, Tillsonburg council approved the development commissioner's request to attend a large industrial trade show in Germany.

In the draft budget last fall, Development Commissioner Cephas Panschow had attendance at the trade show in his budget for 2025. This initiative was removed from the approved budget as part of cost-cutting measures. However, in light of dynamic trade partnerships within Canada and the U.S., Panschow came back to council with a revised solution that would not impact the budget.

In his report to council, Panschow wrote that he attends one international event annually to promote opportunities in the town. With the removal of attendance at the Hannover Messe industrial trade show, he wouldn’t be attending any this year.

“This is problematic as, with an economic slowdown potentially coming, increased risk of tariffs, etc, now is not the time to cut all advertising/marketing,” he wrote. “Now is the time when we need to increase our efforts, particularly when we are targeting significant revenue generation over the next few years.”

Hannover Messe is the world’s largest industrial trade show, with more than 4,000 companies in the advanced manufacturing, mechanical engineering, electrical engineering, and energy sectors. Panschow’s attendance would be through the Southwestern Ontario Marketing Alliance, which books up to 10 meetings per day with show attendees.

Also, Canada is the partner country for the show this year, with more than 200 Canadian companies attending, including local companies such as J/E Bearing.

“This is quite timely with respect to investment attraction but also trade diversification,” Panschow told council at the Feb. 24 meeting. “There is a lot of talk about diversification right now because of things happening in the world, in particular the U.S.”

He presented council with a costing plan that would offset his attendance cost with a per diem from SOMA paid to the town and a reduction in SOMA member fees to reflect the actual 2025 cost. The net cost would be zero.

Saying it looks like an “awesome event”, Coun. Kelly Spencer asked if the ultimate goal would be to sell the industrial lands the town has available to expand its industrial park.

Panschow answered that he attends Hannover Messe this year for two purposes: to talk to the companies with which meetings are set up and to the 200 Canadian companies attending the event.

“It’s a big bang for our buck with exploring companies from across Canada that may be looking to grow within Canada,” he explained.

Spencer then asked if there are ways to “ride off the tails of the St. Thomas battery plant.” Panschow said SOMA is working together on that, and is looking at possibilities through what he called the electric vehicle triangle.

Deputy Mayor Dave Beres inquired if there were going to be MPPs at the event. Panschow said the lead on the event is federal through Invest Canada.

Mayor Deb Gilvesy asked if Panschow’s attendance at the event last year resulted in any land sales or leads. Panschow said that while there have been no land sales yet, he is continuing to work with the leads generated.

Coun. Chris Parker noted it was timely for Panschow to attend Hannover Messe.

“With the shift in climate right now and potential for tariffs, diversification is key. Any lead is a positive lead and moving forward and hopefully it brings some more investment,” he added.

The final motion passed authorized Panschow to attend Hannover Messe due to a shift to focusing on Europe for foreign investment at a zero-budget impact.