-
Most Atlantic Canadian Businesses In Good Shape, But Labour Concerns Persist
Thursday, March 10, 2022
Atlantic Canadian businesses are still coping with challenges brought on by the COVID-19 pandemic but they also have a sense of optimism and expectations for growth in 2022.
That’s according to The Atlantic Chamber of Commerce’s (ACC) 2021-2022 Atlantic Insights Survey. The ACC polled members last fall to find out how their businesses were doing and what they expect in the future.
The survey findings show resiliency and renewed focus for some members, with many saying new technology (81 percent) and people (79 percent) are crucial to successfully running their business. Sixty-four percent also said they are well-positioned for a younger, millennial-influenced Canada.
More than half felt social and economic change has brought opportunities for their business; however, a similar proportion (55 percent) feel external trends lessened their bottom-line control in the previous year.
Fifty-seven percent said their business was in “very good” or “good” shape, while one-third (32 percent) said their business is in “acceptable” shape.
Prince Edward Island had the most businesses reporting to be in “very good” or “good” shape, while perceptions were lowest in New Brunswick and Newfoundland and Labrador.
Just over two-thirds (69 percent) described their business prospects over the next three to five years as “good” or “very good.” Larger companies and those in the retail sector were more likely to express greater prospects.
Survey data was gathered through ACC’s online community, Atlantic Impressions, and conducted online with 158 business leaders from November 24 to December 17. It was analyzed by Narrative Research.
“Given the ongoing pandemic and hearing so many stories of struggle for business and economies, it’s promising to see the levels of optimism towards business prospects and growth reported in the 2022 Atlantic Insights survey,” said Peter MacIntosh, the chief research officer at Narrative Research.
“While the ongoing labour gaps and costs of business are impacting profitability, many businesses feel their bottom line is affected by trends outside of their control.”
Most businesses said provincial governments could help improve business conditions for them by providing better funding and financial support, reducing bureaucracy and red tape, and lowering taxes.
Opinions, however, were mixed on which level of government had the greatest impact on their business. Four in ten said the provincial government, one-third said federal, and one quarter thought their local government was most impactful.
Employee attraction and retention still a major issue
Sheri Somerville, CEO of the Atlantic Chamber of Commerce, says one real concern in the survey lies in the intensifying issues of labour and the cost of doing business. She noted a more cost-competitive environment for business is needed to find ways to fill the positions they need to maintain operations.
Half of the respondents reported the cost of doing business, availability of workers, and access to skilled labour all worsened for their operation last year.
The majority of respondents reported, to some extent, that recruiting and retaining employees remains a challenge for their business, a trend that also impacted their profitability.
Seventy-two percent of those replying to the survey experienced challenges recruiting and retaining employees in the past year, with only one in ten saying those challenges have not impacted their profitability.
The greatest factors affecting worker availability were not enough people with the needed skills, and not enough people willing to do the jobs.
Most answered they had to offer higher wages, more flexible work arrangements, and increased benefits to aid in recruitment in 2021. many others had to work more, change growth plans, or reduce output or hours of operation to deal with labour shortages.
Confidence in the pre-inflation economy
The report notes businesses generally felt the regional and national economy have both improved over the previous year, with nearly half feeling Atlantic Canada is now in a better position for the future.
However, perceptions of the global economy were divided between improvement and decline.
Inflationary pressures have also grown in early 2022, a noticeable trend not captured in the survey due to it being conducted in the final quarter of 2021.
While 82 percent of businesses surveyed have set a goal to grow at least a bit over the coming five years, half of the respondents reported the cost of doing business, availability of workers, and access to skilled labour all worsened for them in 2021. More than one-third said the cost of labour has worsened.
The outlook on growth opportunities was uniform across all provinces, sectors, company sizes and industries with growth goals coming in higher among those working in the professional, scientific, and technical services areas, but were lower among those in retail trade.
Tyler Mclean is a reporter with Huddle, an Acadia Broadcasting content partner.
Moncton, NB, Canada / 91.9 The Bend
Mar 9, 2022 | 1:10 PM
https://www.919thebend.ca/2022/03/09/most-atlantic-canadian-businesses-in-good-shape-but-labour-concerns-persist/
-
Business Truth & Reconciliation
The Atlantic Chamber of Commerce takes proactive steps to promote reconciliation and respect for Indigenous rights within the corporate sector. In response to the Truth and Reconciliation Commission's Call to Action 92, the Chamber urges its members to embrace the United Nations Declaration on the Rights of Indigenous Peoples as a guiding framework.
Recognizing the importance of education, the Chamber encourages businesses to provide comprehensive training for management and staff on the history of Indigenous peoples, including the legacy of residential schools, Indigenous rights, and Aboriginal-Crown relations. Emphasizing intercultural competency, conflict resolution, and anti-racism, these efforts aim to foster a more inclusive and harmonious corporate environment rooted in mutual understanding and respect.
Learn more click here