Page 34 - April 2024 INSIGHT MAGAZINE.indd

ECONOMIC OUTLOOK

Business conŒdence survey results are

not all bad

“We must also ensure there is a balance or He questions whether the pessimism
equity in tax distribution from not only a around growth and confi dence outlined
cost perspective but also on deployment in the survey is related to the economy or
so when money is being handed out it’s stems more from the fact many businesses
being handed out appropriately,” says are unable to hire the people they require
Greg. so they can grow their business.
The OER contains regional and sector- “There are lots of companies out there that

specific data on business confidence and need people and that’s always a good thing
growth, public policy priorities, regional when you’re at a very low unemployment
forecasts, and timely business issues such rate now which is hovering around the 5%
as supply chains, employee well-being, rate,” says Greg, noting he receives calls
diversity, equity and inclusion, economic and emails daily from local companies
reconciliation, and climate change. seeking workers. “As inflation starts to

The report, compiled from a survey of drop and as the Bank of Canada rates start
businesses provincewide conducted to drop, I think we’ll see that pessimism go
between Oct. 12 and Nov. 21, 2023 and away.”
received just under 1,900 responses, states
that 13% of businesses are confident Outlook highlights:

in Ontario’s economic outlook. That • Small businesses are less confident

represents a 3% drop from last year and (12%) than larger businesses (22%)
a 29% drop from the year before with the due to challenges with repaying
cost of living and inputs, inflation, and debt, fluctuations in consumer

housing a†ordability as the key factors for spending, inflationary pressures,

the confidence drop. and workforce-related challenges
High inflation, interest rates and housing The sector showing the most confidence such as mental health.

costs continue to drive pessimism in was mining, with the least confidence

Ontario’s economic outlook, according being shown in the agriculture, non-profit, • Simplifying business taxes is

to the Ontario Chamber of Commerce’s health care and social assistance sectors. identified as a major policy priority
(OCC) eighth annual Ontario Economic of 50% of surveyed businesses.

Report (OER). Despite this, many The most confident regions were • Confidence in Ontario’s economic

businesses surveyed remain confident in Northeastern and Northwestern Ontario, outlook varies considerably across

their own outlooks, with 53% expecting to both at 23%, and the least were Kitchener- industries and is lowest within
grow in 2024. Waterloo, Windsor-Sarnia, and Stratford- the agriculture sector (3%), non-

“In spite of the fact there seems to be a Bruce County. (The survey indicated profit (8%), health care and social
these latter two regions had a high share
mood of pessimism in the air, the reality of of respondents in the non-profit and assistance (8%), and retail (10%)

it is there seems to be more bright lights agriculture sectors compared to other sectors.
than there are dim lights,” says Cambridge regions). • Confidence is highest in the

Chamber of Commerce President and CEO province’s mining (46%) and
Greg Durocher. “We’ve had years where “As the report suggests, businesses still utilities (27%) industries, both of
business confidence and prospects of need to grapple with economic headwinds which benefited from strong growth

being confident are going to be over 60% and many of those headwinds are limiting and investments in the province’s

but given where we are today, I think having their ability to invest in important issues electrification infrastructure and

around 50% of businesses confident they within the workplace and that may well be electric vehicle supply chains.

are going to have a good year and grow is part of the reason they are having di culty
a positive sign.” hiring people,” says Greg. • Businesses in Northeast and
Northwest Ontario exhibit the

However, he says that figure doesn’t “That said, entrepreneurs are interesting highest confidence at 23%, where

minimize the economic issues facing individuals, and they always will find a the mining industry is a major

businesses, including a†ordability and also way to wiggle themselves through the employer.

notes the struggle to achieve necessary tax di culties of the economy.”
reform measures continues.
34 Spring 2024 www.cambridgechamber.com