London’s tech sector a North American leader, but not immune the tariff threat

London has landed near the top of an influential list of up-and-coming tech markets in North America. CTV’s Daryl Newcombe explains.

An annual ranking of up-and-coming tech markets in North America has recognized London as among the best.

According to CBRE’s annual scoring or tech talent and employment markets, London placed fourth among a group of cities dubbed “The Next 25”.

“It’s not by accident that London’s on that list,” said Christina Fox, CEO of TechAlliance.

“It’s something we’re extremely proud of on behalf of the companies that we serve.”

TechAlliance of Southwestern Ontario grows London’s tech sector by fostering ventures, connecting tech talent, and opening access to resources, expertise, and capital.

Fox said London’s tech market has steadily climbed the rankings.

“We’re one of three Canadian cities on North America’s Next 25, and this is a jump from where we’ve landed on this list before, which was the top ten emerging tech markets in North America,” said Fox.

CBRE tracks and analyzes employment data to assemble the list each year.

“This is a great, great thing for London,” explained Greg Harris, Associate Vice-President at CBRE.

London is punching above its weight with a mix of locally grown technology giants including CarFax, Info-Tech Research Group, and Digital Extremes, plus the emergence of artificial intelligence in more traditional sectors.

Harris believes if London is to climb higher on the list of cities it will need to continue attracting and retaining young talent.

“Cities above London all tend to have larger populations, and in a lot of cases, they also have a larger population of 20 and 30-year-olds,” he explained.

Despite the momentum, London’s tech sector still faces headwinds from the threat of U.S. tariffs.

Some local companies had benefited from the “de minimis exemption”, which previously allowed shipments under $800 USD to enter the U.S. duty-free.

Other local tech businesses may not sell products directly impacted by tariffs – but some of their customers do.

“If we take the theme of automotive, think about large, headquartered companies in London,” explained Fox.

“I can think of four off the top of my head that are related to automotive manufacturing or aftermarket dealership care.”

Fox suggested the way to dull the impact of U.S. tariffs on London’s tech sector it to have Canadian corporations, governments, and consumers seek out local companies to supply their technology solutions.

“We all know as Canadians, and as Londoners, that we should be thinking about procuring London-made technologies from London-made companies. So, keep thinking that,” she urged.

London’s standing as a tech leader will be further solidified when the city hosts innovators from around the world at the TechStars Start-Up Weekend beginning Sept. 19.