For Immediate Release
June 22, 2022
VANCOUVER, B.C. —The Greater Vancouver Board of Trade, in partnership with the Business Data Lab at the Canadian Chamber of Commerce, is releasing the results from the Canadian Survey of Business Conditions for Metro Vancouver from Statistics Canada.
New survey data shows 35% of businesses in Metro Vancouver report being in a worse overall position today than in 2019, substantially higher than the national average (28%). Half of businesses (52%) listed the rising cost of inputs as an obstacle over the next three months and 37% expect to raise the price of goods and services, particularly in retail (71%) and accommodation and food services (67%).
“Inflationary pressures and the surge in fuel prices have significantly increased the cost of doing business and these obstacles, coupled with prolonged labour shortages and supply chain disruptions, have created an increasingly challenging business environment,” said Bridgitte Anderson, President and CEO of the Greater Vancouver Board of Trade. “Considerable economic uncertainty lies ahead, and governments must be mindful of business conditions to ensure that they are not adding costs or burdens onto an increasingly tapped business environment.”
A significant percentage of businesses (39%) expect recruiting skilled employees will be an obstacle in the next three months along with labour shortages (37%) and retaining skilled employees (30%). Rising costs are also hurting profitability as nearly 4-in-10 businesses say profits will decrease in the next three months.
- Labour shortages: Difficulty attracting and retaining talent continues to hamper economic growth. Of businesses expecting labour challenges, 64% reported it is more challenging to recruit and retain staff than 12 months ago. The impact of labour-related obstacles is expected to result in management (47%) and existing staff (43%) working increased hours.
- Supply chain disruption: A full 82% of businesses that expect supply chain challenges in the coming quarter reported that supply chain challenges have worsened in the past three months, with increased delays in deliveries (81%), increased input prices (78%) and shortages (68%).
- Inability to take on more debt: More than half of businesses either cannot (33%) or are unsure whether (22%) they can take on more debt. This number has been climbing and is expected to climb higher as interest rates increase.
- Rising costs: Increased input costs have been accompanied by supply chain challenges. Of businesses that anticipate supply chain challenges, roughly 4-in-10 expect difficulty maintaining inventory levels (40%) and acquiring inputs, products or supplies domestically (38%) and internationally (43%) to continue for 12 months or more.
- Businesses investing in upskilling: nearly one-in-four businesses are boosting their training budgets to attract, retain, and upskill their staff.
- Leading in innovation: 30% of businesses reported having introduced a new innovation since 2020, higher than the national average of 24%.
About the CSBC
The CSBC was created in the spring of 2020 by the Canadian Chamber of Commerce and Statistics Canada to provide timely, relevant data on business conditions in Canada, as well as business expectations and views on emerging issues. The 2022Q2 CSBC was collected by Statistics Canada from April 1 to May 6, 2022. The sample of businesses in Metro Vancouver survey includes responses from 686 businesses, and was conducted via electronic questionnaire, using a stratified random sample of business establishments with employees. Population totals are estimated using calibration weights.
About the Greater Vancouver Board of Trade:
Since its inception in 1887, the Greater Vancouver Board of Trade has been recognized as Western Canada's leading business association, engaging our members to inform public policy at all levels of government and empowering them to succeed and prosper in the global economy. With a Membership whose employees comprise one-third of B.C.'s workforce, we are the largest business association between Victoria and Toronto. We leverage this collective strength, facilitating networking opportunities, and providing professional development through unique programs. In addition, we operate one of the largest events platforms in the country, providing a stage for national and international thought leaders to enlighten B.C.'s business leaders.