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SIGNIFICANT NATIONAL AND LOCAL HEADWINDS, SAYS CHAMBER SURVEY OF 16K BUSINESSES
The Canadian Chamber of Commerce Business Data Lab (BDL) and Statistics Canada have released the Q2 findings of the Canadian Survey on Business Conditions (CSBC). The Winnipeg Chamber of Commerce is collaborating with BDL to bring local and future-focused business insights to major cities across Canada to support economic recovery and growth.
The survey was conducted based on responses from 16,678 firms. Sector and size data for the 2022 Q2 CSBC were gathered from April 1 to May 6, 2022. In Winnipeg Census Metropolitan Area (CMA), 789 businesses responded to the survey. Over two-thirds of the local businesses that responded had less than 20 employees.
“The Q2 CSBC survey results show businesses are slowly recovering from the pandemic, under the fog of so much uncertainty,” said Loren Remillard, President and CEO of The Winnipeg Chamber of Commerce.
“Amid stubbornly hot inflationary pressures, Winnipeg’s businesses anticipate a trifecta of challenges in the upcoming three months linked to input cost increases, labour shortages, and supply chain issues. Innovation and adaptability will be key for every business, regardless of sector, to navigate successfully through these stormy waters.”
Some noteworthy Winnipeg-based results from the latest quarterly CSBC survey include:
- In Winnipeg, over half (52%) of businesses said they were either unable to take on extra debt (29.7%) or were unsure if they could (22.4%). Businesses with smaller sizes are more likely unable to take extra debt in Winnipeg, with 59% of firms with less than 20 employees reporting they could not take extra debt.
- The most significant Winnipeg business obstacles involve rising input costs and supply-driven difficulties, including those related to hiring and retaining the workforce. Almost half (48%) of businesses in Winnipeg expect rising input costs to be an obstacle in the next three months.
- About one-third of businesses in Winnipeg reported that they were in a worse position now compared with 2019. With almost half of the companies in the arts, entertainment & recreation and accommodation, and food services industries in a worse position than in 2019.
- High inflation is anticipated to increase wage pressure in the upcoming days. In light of a constricting labour market, when discussing pay raises with employees over the forthcoming 12 months, more than half of businesses (53%) predicted that inflation would be a significant concern. With 6% of the workforce solely working remotely for Winnipeg-based companies as COVID worries fade, flexible work arrangements may be stabilizing.
- On a positive note, enterprises expect sales (29%), hiring (18%) and profitability (17%) to increase over the next three months. More than three-quarters (78%) of businesses expect to maintain the same workforce size during the next three months.