Kelowna Economy: Top Industries, Biggest Employers, & Business Opportunities

Kelowna, British Columbia, is the principal city in the Okanagan Valley with a population of about 150,000 people. The city's location in the valley and on the shores of Okanagan Lake has made it a favourite destination for water sports, biking, hiking and golf, as well as skiing and snowboarding.

But it's more than just a picturesque destination; it's also a thriving economic hub. The service sector dominates Kelowna employment, a testament to the area's thriving tourism industry. Those considering a relocation to Kelowna may appreciate the following information about Kelowna's economy.

Quick Notes on Kelowna's Economy

• There are more than 30,000 businesses in Kelowna.
• Healthcare, tourism, technology, and agriculture are a handful of the top industries.
• The Central Okanagan Economic Development Commission provides resources for those looking to start a business.
• Kelowna's two Business Improvement Areas are the Downtown Kelowna Association and the Uptown Rutland BIA.
• The city's economy ranks among the best in Canada.

Kelowna Economy Facts and Figures

The cost of living in Kelowna is lower than the cost of living index in cities such as Vancouver, Calgary, and Toronto.

Despite this lower cost of living, housing costs in Kelowna are high. This is true all across British Columbia. Single-family homes in Kelowna can easily push the $1 million mark, with luxury homes and new construction homes selling for even more.

The savings start coming in other areas, especially when compared to the pricier cities in Canada. Grocery prices in Kelowna are nearly 15 percent lower than in Vancouver, and rent prices are about 30 percent lower in Kelowna than in Vancouver. The sales tax rate is 7 percent.

The unemployment rate in Kelowna is 4 percent, and the median household income is over $80,000. Kelowna has one of the top job markets in Canada, ranking number three overall.

The average hourly rate in Kelowna is $23.93. Some average hourly pay rates for popular occupations include $21 per hour for administrative assistants, $26 for carpenters, and $24 for office managers. Sales associates average about $17 per hour, certified dental assistants bring home $27 per hour, and mechanics earn $29 per hour, on average.

Some highest-paying careers in the province include social worker, with a median hourly wage of $41 per hour; industrial engineers, with a median hourly wage of $38; and software engineer, at $29 per hour.

Kelowna Industries

Mining served as an early force in the Kelowna economy. This led to the establishment of agriculture and a small service industry to meet the needs of miners. While agriculture continues to play an important role, the valley enjoys a more diverse economy today.

Kelowna's commercial fruit production got a foothold in the 1920s and remains a vibrant part of the area's economy today, including the production of fruit, wine, and ciders. Because of the valley's extended growing season and premium cultivars, many of its products are in demand worldwide. Agriculture in the valley employs about just over 1,000 residents. As an extension of this robust industry, Kelowna fruit picking is a highly popular summer activity.

Set on the shores of scenic Okanagan Lake, tourism and associated service industries have played an increasingly important role in Kelowna's economy, attracting not only visitors from Canada but worldwide. Tourism in the greater metro area has been a $1 billion a year industry since 2016; in 2022, the industry's total economic output reached $2.4 billion with 12,630 jobs.

Healthcare is estimated to account for about 14 percent of all job opportunities in the Okanagan Valley. The primary employers are the Kelowna General Hospital and the University of British Columbia's Southern Medical Clinical Academic Campus.

Kelowna continues to have a strong manufacturing sector and is a growing hub for aerospace-related companies meeting the needs of the aviation and defence markets. KF Aerospace is the region's largest private employer, but the aerospace sector also attracts a growing number of smaller companies, as well as research and development investment.

The city is also considered one of the largest and fastest-growing technology centers in all of British Columbia. Anchor companies like Disney Interactive and QHR Technologies drive the sector, but the industry is also fed by a growing number of innovative startups, thanks to Accelerate Okanagan, the region's incubator for technology-enabled businesses. The economic impact of the sector is estimated to be over $3 billion.

Top Employers

The leading employers in Kelowna are reflective of the region's agriculture and aerospace sectors.

Top of the list is Kelowna Flightcraft Group of Companies with about 1,000 employees. Also known as KF Aerospace, the company was founded over 50 years ago. KF Aerospace started out fixing aircraft in the valley and is today a world-renowned provider of aircraft maintenance and engineering. The company is known for innovative aircraft solutions that serve the military, commercial, and corporate sectors. KF Aerospace's operations today focus on aircraft maintenance and modifications, as well as military aircrew training and air cargo leasing and operations.

From the agriculture sector, SunRype Products Ltd is another large Kelowna employer, with around 400 workers. SunRype is a Canadian snack and beverage company with headquarters in Kelowna. The company was launched in 1946 when area fruit growers created BC Fruit Processing Ltd. for apple juice, which they named SunRype. Today, the company offers a wide variety of fruit juices and snacks, in addition to adding new non-fruit product categories.

Located in West Kelowna, Alpine Aerotech is Kelowna's fourth-largest employer and retains 140 employees. The company has operated for 30 years and provides comprehensive, worldwide helicopter support and aircraft maintenance services.

Is Kelowna a Good Place to Start a Business?

Kelowna offers a vibrant and supportive environment for entrepreneurs looking to start a business. The area is home to over 30,000 registered businesses, reflecting its strong entrepreneurial culture and robust support networks. Organizations such as Accelerate Okanagan provide programs, coaching, and mentorship to assist early-stage and growing businesses.

The region also benefits from competitive costs, making it an attractive location for startups and small businesses. Resources like the COEDC Business Services Guide and the COEDC Business Finance Guide offer valuable information to help entrepreneurs navigate the complexities of starting and growing a business.

The combination of a supportive startup community, access to essential resources, and a favorable business environment makes it an excellent choice for those aiming to start a business.

Living and Working in Kelowna

Kelowna’s economy is both diverse and dynamic, offering a wealth of opportunities for businesses and workers alike. It relies on such industries as agriculture, manufacturing, healthcare, tourism and services, and technology. A strong job market, competitive wages, and a lower cost of living compared to larger cities are just a few of the reasons to love living in Kelowna. This large metropolitan area in British Columbia is quickly growing, thanks to its balanced lifestyle and economic promise.

If the opportunities in Kelowna excite you, contact the agents at KelownaHomes.ca at 250-999-9844 to get in touch with a local real estate agent who can help you find the perfect home in Kelowna today.