Small and medium size businesses, charities all to feel the pinch from Algoma Steel’s job loss.<\/p>\n
Published Dec 02, 2025 \u00a0\u2022\u00a0 Last updated 3\u00a0hours ago \u00a0\u2022\u00a0 6 minute read<\/p>\n
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Algoma Steel’s job losses will have impact on other industries and businesses in Sault Ste. Marie. jpg, SH, apsmcArticle content<\/p>\n
As news of Algoma Steel\u2019s massive layoff announcement spread through Sault Ste. Marie, concern has deepened that other job losses from secondary industries could follow close behind. \u00a0<\/p>\n
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Sault Ste. Marie\u2019s steelmaker issued 1,000 layoff notices Monday, as it prepares to shut down its blast furnace and coke-making operations in the new year, about one year prior than expected. The quicker ramp up of the electric arc furnace comes as tariff pressures continue to plague Algoma Steel and cut off the company from the U.S. market.<\/p>\n
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\u201cIt\u2019s very unfortunate how this happened and how it rolled out,\u201d said La-Na Fragomini, president of the Sault Ste. Marie Chamber of Commerce. \u201cWe knew there would be job losses with the electric arc furnace, but the tariffs pushed those losses further ahead.\u201d\u00a0<\/p>\n
Fragomini said she\u2019s bracing for the trickle-down effect on how those 1,000 layoff notices, which kick in March 23, will affect small and medium size businesses throughout the community. \u00a0<\/p>\n
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For starters, she said, the immediate effect will see people be leery about spending and budgeting will take a more cautionary turn, including during the current holiday season and that will make it extremely difficult for existing and\u00a0new local businesses, whether they be retailers, restaurants or services. \u00a0<\/p>\n
\u201cIt\u2019s going to be a struggle. There is no doubt about that,\u201d she said. \u00a0<\/p>\n
\u00a0In today\u2019s age, many begin their Christmas shopping early, capitalizing on early sales and Black Friday deals, and that means some of the spending for the season has already been made. \u00a0<\/p>\n
However, Fragomini anticipates that Algoma\u2019s announcement may result in some people holding back on some of the extras or making adjustments like eliminating large spends on trips or vehicles, while others may refrain from smaller purchases. \u00a0<\/p>\n
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\u201cIt\u2019s not just the retail and restaurants that are going to be affected but it\u2019s things like the housing market, the car purchases,\u201d she said. \u00a0<\/p>\n
And just as concerning is the effect that the layoffs will have on local charities. \u00a0<\/p>\n
\u201cCharities will be gravely affected too. This is a huge time for them and they\u2019re already struggling with the crisis we already have in our community and now they\u2019re going to see an even bigger impact at a time when push comes to shove and people are taking care of their own house,\u201d Fragomini said. \u00a0<\/p>\n
The chamber has no knowledge of when the trickle-down effect will occur but anticipates it could come very quickly given the short timelines to shut down Algoma Steel\u2019s blast furnace and coke-making operations. \u00a0<\/p>\n
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It will be launching an advocacy campaign, asking the provincial government to offer more supports and assistance to Sault Ste. Marie and those affected by the layoffs. \u00a0<\/p>\n
\u201cWe will work with everyone and do the best we can to help,\u201d she said. \u201cWe\u2019ve been forced into a reactive versus a proactive approach, but we\u2019ll get through it.\u201d\u00a0\u00a0<\/p>\n
Rob Van Staveren, the city\u2019s director of economic development, said Statistics Canada as\u00a0a standard multiplier to determine job loss of direct, indirect and induced jobs. \u00a0<\/p>\n
An indirect job would be a supplier or servicer of Algoma Steel and an induced job as a supplier or servicer of the indirect job or company.\u00a0<\/p>\n
Van Staveren said that using the 1,050 job losses from Algoma, along with an additional 103 job estimate from known \u201cclose suppliers\u201d who could likely be affected, multiplied by 1.61 provides a total of up to 1,856 jobs that could potentially be lost in the community. \u00a0<\/p>\n
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\u201cThis is not an exact science. I stress the term \u2018up to\u2019 as other things could happen to mitigate these losses,\u201d he said. \u00a0<\/p>\n
Van Staveren said data shows that about 3,000 jobs (direct, indirect and induced), multiplied by an average salary of $49,000 leads to current spending of up to $145 million in the community. That spending could be reduced significantly, depending on job loss and a reduction of disposable income.\u00a0<\/p>\n
\u201cThere could be a significant impact on the community and individuals and their families and that\u2019s never a good thing,\u201d he said. \u00a0<\/p>\n
Van Staveren said there is a lot of work being done in the community to attract new jobs \u2013 from more OLG jobs to lobbying for funding for a new port. \u00a0<\/p>\n
\u201cThat port project is moving at a good rate of speed, and the business plan will be done by year end,\u201d he said. \u00a0<\/p>\n
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He said his department is also working on some \u201cpretty good economic opportunities that could come with good jobs.\u201d\u00a0<\/p>\n
While he couldn\u2019t provide specifics, he said his team has had\u00a0some \u201cpositive contact\u201d with one potential company, as well as varying degrees with a few others that are \u201cvery close,\u201d\u00a0that could create \u201csignificant jobs\u201d in the community. \u00a0<\/p>\n
\u201cOne major roadblock for employers in the lack of skilled labour available, but we will have that skilled labor so that puts us in a brighter light,\u201d he said. \u00a0<\/p>\n
The economic development division has also applied for significant funding that would allow it to move forward with trade missions to further help diversify the local economy. \u00a0<\/p>\n
\u201cWe\u2019re doing what we can to continue business development activities, and we\u2019re moving full steam ahead,\u201d he said. \u00a0<\/p>\n
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Meanwhile, the Federation of Northern Ontario Municipalities (FONOM) and the Northwestern Ontario Municipal Association (NOMA) are expressing deep concern about the layoff announcement and the blow to workers, families and the community. \u00a0<\/p>\n
\u201cThis is a difficult and uncertain moment for workers, their loved ones, and the entire community,\u201d said FONOM President Dave Plourde. \u201cFONOM stands firmly with the people of Sault Ste. Marie as they navigate the impacts of this decision. We will continue to advocate for a strong, stable steel sector and for the return of these jobs as quickly as possible.\u201d\u00a0<\/p>\n
NOMA President Rick Dumas echoed the same message in his statement. \u201cNorthern Ontario\u2019s workers and communities should never be caught in the crossfire of a global trade dispute. NOMA remains committed to working with all orders of government to see this trade war resolved, industry stabilized, and good-paying jobs restored in Sault Ste. Marie.\u201d\u00a0<\/p>\n
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FONOM and NOMA call on both the provincial and federal governments to work collaboratively with industry and labour partners to address the immediate impacts of these layoffs while taking concrete steps to protect and strengthen the steel sector across Northern Ontario.\u00a0<\/p>\n
Ontario NDP Leader Marit Stiles also weighed in.\u00a0<\/p>\n
\u201cWe need to make sure that government funding comes with strings attached that put workers first. Instead, the Premier handed millions over to Algoma Steel without ensuring certainty for Sault workers,\u201d she said in a press release.\u00a0<\/p>\n
\u201cDoug Ford told workers that he would fight Trump\u2019s tariffs for them, but once he got their vote, he went right back to being the Premier for the bosses and CEOs. Meanwhile, his jobs disaster continues to send more Ontarians to the unemployment line,\u201d Stiles said in the release, promising to return in December to meet with impacted workers. \u00a0<\/p>\n
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Liberal MPP Rob Cerjanec (Ajax), the party\u2019s economic development and innovation critic, was recently in the Sault. \u00a0<\/p>\n
\u201cI visited a community full of potential, with domestic and international businesses eager to invest and opportunities to expand provincial infrastructure \u2013 but that opportunity is being held back by government inaction,\u201d he said.\u00a0<\/p>\n
He called the layoffs a \u201cserious blow to the region and a warning sign for Ontario\u2019s economy.\u201d\u00a0<\/p>\n
Cerjanec wants the province to commit to supporting new production lines at the steel plant and help diversify and grow the economy in order to attract private investment through new provincial investment.\u00a0<\/p>\n
He told The Sault Star that provincial support is needed immediately, and it needs to be in a form that\u2019s more than an action centre. \u00a0<\/p>\n
\u201cThe province needs to help Algoma look for new product lines to prevent further job losses and make sure they\u2019re ready to go,\u201d he said. \u00a0<\/p>\n
Cerjanec said he will be lobbying publicly and behind closed doors for the port funding and other supports, including making use of former Ministry of Transportation property that could be used for new industry or manufacturing. \u00a0<\/p>\n
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