OTTAWA, June 19, 2023 – Inflation is at the top of the list of challenges for businesses in in Ottawa-Gatineau region for the next quarter, according to new data from the Ottawa Board of Trade and the Business Data Lab at the Canadian Chamber of Commerce.
The Canadian Survey of Business Conditions found the top five obstacles businesses in Ottawa-Gatineau anticipate in the next three months are, rising inflation (51%), labour-related obstacles (50%), rising cost of inputs (37%), rising interest rates and debt costs (36%), and recruiting and retaining skilled employees (36%).
Over half of the businesses surveyed anticipate an increase in operating expenses in the coming quarter while more than twenty per cent of businesses expect a meaningful decline in profitability and cash reserves.
“While it is great news that the Canadian economy has shown resilience in recent months, this resilience has prompted the Bank of Canada to further raise interest rates,” explains Sueling Ching, President and CEO of the Ottawa Board of Trade. “The higher interest rates are resulting in the rising cost of almost every expense that comes with owning and operating a business and businesses often have no choice but to pass on these costs to the consumers by raising their prices.”
“Labour challenges have also intensified in the second quarter, which is particularly affecting small businesses,” continues Ching. “These challenges are leading to longer working hours, a reduced ability to fulfill customer orders, and consequently hindering business growth, making it more challenging for businesses to implement new technologies or make long-term investments.”
Key Findings
Expected obstacles in the next three months
- Rising inflation (51%)
- Labour-related obstacles (50%)
- Rising cost of inputs (37%)
- Recruiting and retaining skilled employees (36%)
- Rising interest rates and debt costs (36%)
Anticipated changes in the business environment in the next three months
- Operating expense increase (51%)
- Raising prices (23%)
- Operating income decrease (14%)
- Profitability decrease (20%)
- Cash reserves decrease (19%)
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About the Canadian Survey on Business Conditions and Report
The Canadian Survey on Business Conditions (CSBC) was created in spring 2020 by Statistics Canada in partnership with the Canadian Chamber of Commerce to monitor evolving Canadian business conditions and trends. The Q2 2023 CSBC was collected from April 3 to May 8, 2023. The survey was conducted by Statistics Canada via electronic questionnaire, using a stratified random sample of establishments with employees. The Q2 2023 CSBC survey is based on responses from 15,401 Canadian employers.
The Canadian Survey on Business Conditions Report (CSBCR) presents in-depth quarterly analysis of the CSBC conducted by the Canadian Chamber of Commerce‘s Business Data Lab. The Business Data Lab collaborates with the Canadian Chamber’s network of boards of trade and chambers of commerce to distribute and amplify CSBC insights to the local level.
About the Ottawa Board of Trade:
The Ottawa Board of Trade is the voice of business and a key advocate for economic development in the national capital region. Our mission is to cultivate a thriving world class business community, one that drives community prosperity and builds an affordable, inclusive, and sustainable city. We also provide programs and services that help our members grow their business and their teams. We are an independent, nonpartisan, nonprofit association. We work with partners, staff and volunteers that are aligned with our values of collaboration, determination, future thinking, integrity, and passion.
Media contact:
Stéphanie Montreuil
Senior Director, Communications and Public Affairs
Ottawa Board of Trade
613-236-3631 x127| stephanie.montreuil@ottawabot.ca