The City of Edmonton is taking decisive steps to rethink its procurement practices as the province encourages municipalities to reduce reliance on American companies in light of ongoing trade tensions with the United States.

Sohrab Sohrabi, the city's branch manager for procurement and supply services, stressed the municipality's commitment to buying "locally where possible" and urged residents to support local businesses as well.

Following Alberta Premier Danielle Smith's directive, which aims to bolster local economies, Edmonton is set to recalibrate its sourcing strategies. The province has directed municipalities to prioritize contracts with companies based in Alberta, elsewhere in Canada, or nations that hold free trade agreements with Canada.

Annually, Edmonton spends approximately $3 billion on goods and services across 400 contracts, making the evaluations and adjustments necessary to minimize disruptions and maintain budget efficiency even more critical.

Mayor Amarjeet Sohi termed the directive a "wake-up call" for all Canadians, highlighting the long-standing, beneficial relationship between Canadian businesses and their U.S. counterparts that is now fraught with challenges.

He emphasized the need to scrutinize procurement strategies and to pivot toward supporting local and Canadian companies to align with trade obligations while still ensuring value for money.

While the city awaits further details from the province, it acknowledges the complexities involved in determining which suppliers qualify as local.

City spokesperson Lindsay Yarmon noted challenges in defining operations across borders, as many local businesses might source products from U.S. manufacturers despite being registered in Canada.

A review of recent contracts reveals that a significant number were awarded to companies in Edmonton or the surrounding areas.

However, some local suppliers still provide products manufactured in the U.S. For example, a recent $112,000 contract for equipment parts was awarded to a local company that sources from Bobcat, an American manufacturer.

This interconnectedness with the U.S. market raises concerns about the broader implications of the shifting procurement strategy.

The city has also engaged in contracts with American firms in the past year, notably awarding $5.5 million to a North Carolina-based company for garbage bins.

Such decisions illustrate the challenge of balancing local purchases with the realities of a globally integrated supply chain.

Local businesses express concerns over the feasibility of exclusively purchasing Canadian products.

Japa Machinery Group, which recently secured a $1 million contract for excavators, pointed out that the industry's heavy equipment is predominantly manufactured offshore.

Despite this, their operations in Alberta, including local maintenance and support, contribute to the local economy.

Experts warn against falling into protectionist behaviors while reacting to U.S. tariffs, suggesting that Canadians need to diversify their international trading relationships rather than just focusing on avoiding American goods.

David Soberman, a professor at the University of Toronto, advocates for a more nuanced approach that fosters strong ties with other countries instead of narrowing the scope of trade to solely local purchases.

As Edmonton navigates this new landscape, both the city and local businesses will need to strike a balance between supporting the local economy and ensuring access to quality goods and services from a diverse array of suppliers.

This pivotal moment presents an opportunity for a refreshed perspective on procurement practices that may redefine Edmonton's economic landscape in the foreseeable future.