Calgary Businesses Optimistic Despite Economic Pressures

Calgary is not only renowned as one of the world’s most liveable cities but also as an exceptional hub for business. Boasting a diverse economy, top-tier talent and the lowest tax rates in the country, Calgary offers unparalleled opportunities for businesses to succeed. However, businesses in Calgary are not immune to the challenges posed by uncertain economic conditions. Governments and businesses alike must understand and address these obstacles to foster a resilient, innovative and adaptable business community. By doing so, businesses will continue to thrive, ensuring Calgary remains a hub of economic activity and entrepreneurship.

To gain insights into the current business environment and future expectations, Statistics Canada, in collaboration with the Canadian Chamber of Commerce, conducts a quarterly survey of businesses to understand their outlook and key concerns. Notably, businesses expressed concerns about rising costs, labour shortage, waning demand and supply chain constraints. The survey revealed that 69 per cent of businesses are optimistic, and many have plans to expand within and beyond Calgary.

Rising Costs

As inflationary pressures persist, more than half of Calgary businesses (58.6 per cent) are concerned with rising costs. And the pressure is increasing – 6.7 per cent of businesses are more concerned about maintaining cash flow and managing debt compared to Q1, suggesting their ability to withstand such costs is waning.

Inflationary pressures also affect potential investment. Calgary’s competitive advantages, including low cost of living, high income and housing affordability, are all affected by these inflationary pressures as well. Consequently, Calgarians are negatively impacted and opportunities for outside investment become limited, making it essential for governments to implement policies that promote certainty and stability for business.

The Calgary Chamber calls on government to:

• Eliminate the small business tax.

• Maintain existing affordability supports.

• Develop incentives to attract investment, including targeted tax credits.

•Invest in infrastructure to support community vibrancy.

Labour And Talent Shortage

While there has been a slight improvement in labour concerns in the past six months, 19.3 per cent of businesses continue to face labour-related challenges including difficulties with talent retention and recruitment. This has led many businesses to increase working hours for their current staff, potentially jeopardizing mental health among business owners. Further, 34.1 per cent of businesses, primarily small- and medium-sized ones, anticipate limiting their growth as a response to labour challenges.

Innovative ideas for growing Calgary’s talent pool, addressing skills gaps and strengthening the talent pipeline must be prioritized.

The Calgary Chamber calls on government to:

• Refine immigration policies to attract global talent, eliminate barriers and grow our labour force.

• Invest in people, culture and infrastructure to position Calgary as the destination of choice.

• Continue championing our City and updating our brand and reputation.

Supply Chain And Manufacturing

Supply chain issues have gradually eased following the COVID-19 pandemic, with fewer businesses citing them as limiting factors for growth. However, 16.8 per cent of businesses believe supply chains have worsened over the last quarter and 75.6 per cent believe they continue to remain stagnant.

With a significant portion of Alberta’s GDP linked to exports, we need to invest in expanding and building redundancy in our supply chain infrastructure to reinforce Canada’s economic and global competitiveness.

The Calgary Chamber calls on government to:

• Promote investment in local manufacturing hubs, modernization and infrastructure.

• Reduce internal trade barriers for goods and services within Canada.

Looking Ahead

With business optimism on the rise, government must address rising costs, the labour shortage and supply chain concerns, to promote a competitive economy. Collaboration with the business community must remain at the forefront. Together, government and business can create a thriving ecosystem for innovation and economic growth.