Ottawa Business Growth Survey 2018

2018

Exclusive insights into the attitudes, perceptions and plans of Ottawa’s business leaders

BUSINESS CONFIDENCE IN THE CAPITAL MARKET OUTLOOK

HIRING INTENTIONS

WORKPLACE TRENDS

MAYOR’S RATING

PLUS: How is the rising minimum wage affecting Ottawa businesses?

BROUGHT TO YOU BY

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 1

2018-05-14 2:35 PM

welchllp.com/100 2 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 2

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:16 PM

FOREWORD

Valuable insights into Ottawa’s business community It is hard to believe that we are in our fourth year of the Ottawa Business Growth Survey. We started this initiative with trepidation. We were unsure of how it would be received.

We are very excited that it continues to grow and provide valuable insights for local businesses.

In order for the survey to continue to be relevant, we rely on the continued support and involvement of the local business community. Each year, the data that is derived from this survey helps shape our future initiatives.

The survey itself would not be possible without the input and support of our partners: the Ottawa Business Journal, Ottawa Chamber of Commerce, Abacus Data, RBC, Ottawa Senators and Momentum Law. Thank you for your participation and for providing valuable data that is leveraged by our city, our community initiatives and our businesses.

Micheal Burch FCPA, FCA, CFP Managing partner, Welch LLP WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 3

Shedding light on key business issues The facts speak for themselves: local businesses in Ottawa continue to grow and create wealth in our community. We all know that making business decisions is often difficult, particularly in the absence of good economic and financial data. Taken together, with changing demographics and customer patterns, business owners and managers must rely on critical information in making decisions, more than ever.

The current edition of the Ottawa Business Growth Survey again provides the type of analysis that benefits decision-making. 2017 was a big year for Ottawa with the Canada 150 celebrations in our city and across the country. The Ottawa Chamber of Commerce continued to grow as we marked our 160th birthday with a proclamation from the City of Ottawa and Mayor Jim Watson.

As we turn to the opportunities and challenges of 2018, we are buoyed by the potential that exists in our community. This includes inaugurating a new light-rail transit system this fall; finalizing plans for the long-awaited redevelopment of LeBreton Flats, which will be the hallmark of a burgeoning upper west side of downtown Ottawa; and the emergence of innovation and entrepreneurship as the centrepieces of our post-secondary educational institutions.

Simply put: 2018 will be a critical year in Ottawa’s transformation into a modern G7 capital city that will lead from the front.

Vibrant local businesses will work towards inclusive growth in our community, and the Ottawa Chamber of Commerce will continue to work with its members and economic development stakeholders to ensure those businesses continue to create jobs and produce results that will benefit all of our residents, foreign students, investors and visitors.

We think you’ll find the results of the 2018 Ottawa Business Growth Survey will help you in your business and assist us in collectively moving closer to a shared vision of a successful Ottawa.

Thank you to all those who participated in the survey and to all those who partnered with us to make it a resounding success.

Ian Faris President & CEO Ottawa Chamber of Commerce WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 3

2018-05-14 2:30 PM

Helping the business community thrive On behalf of the entire team at Abacus Data, it’s a pleasure to present the findings of the 2018 Ottawa Business Growth Survey.

This year, 755 business leaders from across the National Capital Region completed our survey.

The goal of the annual study is to obtain an accurate picture of the current state of our city’s economy through the eyes of business leaders. We seek to understand perceptions and expectations as well as identify areas where collectively all stakeholders can make the business environment stronger to achieve growth.

This year we also looked more deeply at how businesses in our community are managing some significant changes in the business environment, including the increase to Ontario’s minimum wage.

This initiative is presented by the Ottawa Chamber of Commerce

in partnership with Welch LLP and Ottawa Business Journal.

The Ottawa Business Growth Survey is co-presented by RBC, Momentum Law and the Ottawa Senators. The survey was also supported by an amazing group of partners from BIAs across the city, the National Capital Heavy Construction Association, the Ottawa Construction Association, Canadian Federation of Independent Business, BOMA Ottawa, the West Ottawa Board of Trade, the Ottawa Community Loan Foundation, the Canadian Federation of Independent Business, the Family Enterprise Xchange, Ottawa Tourism and Invest Ottawa.

Abacus Data, a full-service Canadian polling, public opinion, and market research firm based in Ottawa, carried out the survey from March 11 to April 22, 2018.

Respondents were recruited by email and website intercept by the Ottawa Chamber of Commerce, the Ottawa Business Journal and the Welch LLP contact list. Members of BIAs from across Ottawa, the Better

Business Bureau, BOMA, the Ottawa Construction Association and the National Capital Heavy Construction Association were also invited to participate.

Thank you to every business leader who took part in our survey.

Having such reliable and timely data helps us to understand where the Ottawa business community is and what we have to do to help it thrive in the future.

David Coletto CEO, Abacus Data

CO-PRESENTERS

Audit

Tax

Accounting

Consulting

4 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 4

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:16 PM

9 15 19 23 27 31 35

BUSINESS OUTLOOK: Confidence and hiring plans FINANCIAL PERFORMANCE: Revenues and profit REAL ESTATE: Housing market and workplace trends TOURISM AND HOSPITALITY POLITICS AND PUBLIC POLICY OOKING AHEAD: Exit L strategies and succession planning RESPONDENT PROFILES

Editor’s note: Some results on the following pages may not add up to exactly 100 per cent due to rounding.

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 5

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 5

2018-05-14 2:17 PM

KEY FINDINGS Businesses in the RETAIL AND HOSPITALITY sectors are feeling pessimistic, while tech firms remain highly positive.

Overall BUSINESS CONFIDENCE is down slightly.

More than two in five respondents say their organization plans to RECRUIT NEW EMPLOYEES over the next year.

The COST OF DOING BUSINESS is perceived to be getting worse.

6 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 6

Nearly one-third of respondents plan to lease or buy BIGGER COMMERCIAL SPACE for their business.

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:17 PM

Local companies are expanding and EXPECTING FUTURE GROWTH.

Attracting new customers and recruiting skilled workers are the MOST IMPORTANT ISSUES facing businesses.

51% of respondents approve of MAYOR JIM WATSON’S PERFORMANCE. 51% of businesses said their NET INCOME was higher last year than in 2016.

The RISING MINIMUM WAGE is having a negative impact on more than two in five local businesses.

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 7

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 7

2018-05-14 2:17 PM

8 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 8

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:17 PM

9 BUSINESS OUTLOOK

> Confidence > Hiring intentions > Market expectations > Economic environment > Issues and obstacles

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 9

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 9

2018-05-14 2:17 PM

BUSINESS OUTLOOK

confident capital Business confidence is a key driver of economic growth.

Company owners and managers who feel optimistic are more likely to expand their business, hire new staff and make investments that benefit the wider economy.

Locally, business confidence remains positive, despite a modest decline from 2017. The Ottawa business confidence index fell to its lowest level in three years, but remains higher than the levels recorded between 2013 and 2015.

“The last two years have been quite positive. This is just a softening a little bit,” says David Coletto, the CEO of Abacus Data.

The local firm compiled and analyzed the research in the Ottawa Business Growth Survey.

This year’s decline was largely driven by weakening confidence in the retail and hospitality sectors that failed to offset a sharp increase among tech firms.

Coletto says the softness in retail and hospitality can be explained, in part, by increases in minimum wage.

The business confidence index is a composite calculation based on the responses to several of the questions contained on the following pages. The scale ranges from zero to 200, with a score of 100 representing a neutral position.

A score higher than 100 is positive, while a score lower than 100 is negative.

business confidence index 150

122

119.2

117

114.2

120

90 FALL 2013

SPRING 2014

SPRING 2015

SPRING 2016

SPRING 2017

SPRING 2018

sector by sector SECTOR

SPRING 2017

SPRING 2018

CHANGE

Consulting

126.8

126.6

-0.2

Technology

130.2

141.6

+11.4

Hospitality

106.8

98.0

-8.8

Construction

124.8

128.8

+4.0

Retail

114.2

103.8

-10.4

Compared to a year ago, has your confidence in the local economy…

2018

19%

2017

58%

2016

17%

FALL 2015

18%

21%

46%

36%

66% 20

Increased

10 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

18%

61%

8% 0

23%

59%

23%

SPRING 2015

OBGS MAGAZINE 2018indd.indd 10

125

124

40

Stayed the same

26% 60

80

100

Decreased

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:17 PM

BUSINESS OUTLOOK

help wanted: hiring intentions Nearly half of all respondents say they plan to recruit new staff over the next year, with less than one in 10 saying they plan to downsize. Respondents from the tech (69 per cent) and construction (47 per cent) were the most likely to say they expect to hire new employees, while nearly one in four respondents from the travel and hospitality industry – which is coming off the Canada 150 celebrations in 2017 – forecast a contraction.

‘AN INCREDIBLE TIME TO COMPETE’

In the next year, do you plan to...

7%

2018

44%

36%

2017

52%

43%

5%

12%

2016

39%

46%

4%

11%

FALL 2015

37%

42%

SPRING 2015

42%

43%

0

20

40

13%

15%

6% 5% 60

10%

80

Recruit new employees

Keep employee levels the same

Reduce employee levels

I don’t know or no comment

100

CASE STUDY

silicon valley optical firm infinera expands kanata footprint A California-based optical networks company flew several of its executives to Canada’s capital in late 2017 to announce an expansion of the firm’s “fastestgrowing” R&D lab and kick off a hiring blitz in Ottawa.

Infinera, which creates products to facilitate high-speed transfers of information over optical networks, arrived in Ottawa in 2009 with an initial local workforce of three employees.

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 11

Since then, its presence has grown steadily to some 50 employees – a figure that’s expected to grow higher.

Infinera currently occupies 12,549 square feet on the second floor of the Blackwood Business Centre in the Kanata Research Park at 555 Legget Dr. and will be expanding by more than 6,000 square feet on the sixth floor to allow for the extra personnel as well as more lab and R&D space.

“I’ve seen quite a bit of movement in the last 14 months. We saw a crescendo of activity in Bayview Yards. It’s so busy right now. We have so many events happening at Bayview and it’s all different types of sectors, largely tech. We have a lot of activity happening at our site.

The climate of tech in Ottawa has never been better. It’s an incredible time to compete and grow and build.

How does the year ahead look? Ottawa is wellpositioned to be a strong force. We have to get more companies going global.

We’re very well positioned and driving very hard.”

MICHAEL TREMBLAY PRESIDENT AND CEO INVEST OTTAWA

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 11

2018-05-14 2:17 PM

BUSINESS OUTLOOK

cost of doing business jumps The cost of doing business in Canada’s capital has increased over the last year, respondents say. The percentage of respondents who said the situation worsened jumped to 68 per cent this year, up from 48 per cent in 2017.

RETAIL OPPORTUNITIES OUTWEIGH CHALLENGES “The year is full of opportunity. It’s been challenging over the last couple years in terms of bankruptcies in big names, such as Sears. It’s a tough sector, but at the same time, we’re seeing some great success stories.

Ottawa is the nation’s capital, but many retailers start in Toronto or Vancouver.

There are some very interesting conversations happening (as) we’re getting them to look at making Ottawa their next home.

We’re also still pounding the pavement in Ottawa, finding the local firms that are looking to grow.

We’re looking at the overall shopping experience: amenities, a new focus on food, dining and entertainment. It’s also about … what’s in and around the shopping centre. It’s about getting outside of your comfort zone, doing deals that are unique in how they’re structured.

It’s challenging, but there are more opportunities than challenges.”

BRIAN O’HOSKI GENERAL MANAGER CF RIDEAU CENTRE

Have the following issues improved, worsened or stayed the same over the past year?

Access to capital

5%

50%

14%

Access to skilled workers

5%

48%

34%

Public transit

5%

49%

19%

Transportation in Ottawa/Gatineau

5%

Federal and provincial business taxes Municipal by-laws regulating business activity

2%

Cost of doing business Business licensing/ permitting process at the city

30%

1% 0

27% 18%

45%

49%

2%

12%

33%

37%

3%

15%

21%

28%

63% 44%

20

5% 40%

15% 40

Improved

60

About the same

80

100 Don’t know

Worsened

market outlook More than half of all respondents believe the market for their business will strengthen over the coming year. Respondents from the tech (71 per cent) and construction (56 per cent) sectors were most likely to believe their respective market will improve.

Over the next year, do you expect the market for your business sector to...

2018

52%

31%

2017

51%

35%

9% 6%

2016

49%

37%

7% 7%

FALL 2015

45%

34%

0

20 Improve

12 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 12

45%

31%

40 Stay the same

60 Worsen

10%

12% 80

7%

9% 100

I don’t know or no comment

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:17 PM

BUSINESS OUTLOOK

top issues facing ottawa businesses Attracting new customers and recruiting skilled workers remain the most important issues to respondents.

Please rank the most important issues for Ottawa businesses over the coming five years: 2018

FEDS COOL TO CONTRACT BUNDLING

2017

Attracting new customers

56%

Skilled workforce

38%

Changes in technology

32%

Minimum wage increase

31%

Corporate taxes

28%

Attract businesses to ottawa

21%

Access to capital

19% 14%

Changing demographics Municipal taxes

13%

Transportation

10%

External global factors

10%

City hall’s fiscal management

8%

Business permitting/planning

7%

Tourism/visitor attraction

6%

Environmental sustainability

6% 0

2018 10

20

30

40

Attracting new customers

60

82%

Skilled workforce

68%

Attract businesses to ottawa Tourism/visitor attraction

56%

Municipal taxes

56%

Corporate taxes

55%

62%

Access to capital

55%

Transportation

51%

External global factors

50%

City hall’s fiscal management Business permitting/ planning Environmental sustainability

48%

2017

48% 44% 0

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 13

50

20

40

60

80

“Two and a half years after the Liberals’ election, procurement is heavily influenced by three factors.

The first is the spectacular failure of key major IT projects (email system, Phoenix pay system, etc.). This has resulted in most senior bureaucrats being cooler to implementing major projects that would result in the bundling of contracts.

Second is the union’s push against subcontracting and consultants in the federal government. This government is seen as wanting to be close to unions. This was demonstrated by the prime minister, six days after his swearing in, attending a meeting of the Canadian Labour Congress – something that had not been done in 50 years.

Third is a key push by the government to address key issues: gender equality, diversity in procurement, support to Indigenous businesses.

The government will claim that the number of contracts awarded to SMEs is growing. But the issue is not the number of contracts, but rather the value of these contracts. Local entrepreneurs want a piece of the pie – but not the crumbs.”

SERGE BUY SENIOR PARTNER FLAGSHIP SOLUTIONS

100

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 13

2018-05-14 2:17 PM

14 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 14

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:17 PM

15 FINANCIAL PERFORMANCE

> Revenue > Net income > Access to credit > Raising capital

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 15

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 15

2018-05-14 2:17 PM

FINANCIAL PERFORMANCE

access to credit The ability to access credit has remained relatively stable for most businesses in Ottawa.

Compared to a year ago, is credit…

CAPITAL ACCESSIBILITY

“Respondents are focusing on bank financing (and) personal lines of credit – what I consider bootstrapping, personal debt and taking on the responsibility of growing your business on your own.

We know our clients focus a lot on external sources of investment. So are the respondents not sure how to get a hold of that capital, how to become ready for that sort of investment? The capital is here – it’s available in Ottawa – so perhaps some of the respondents don’t know how to access that and how to have those conversations.

It’s important to make sure your growth strategy tries to access the right kind of capital. Having the right advisory team can help ensure you don’t go down the wrong route.”

MEGAN CORNELL FOUNDER, CEO AND LAWYER MOMENTUM BUSINESS LAW

2018

13%

42%

2017

11%

48%

2016

12%

51%

FALL 2015

11%

45%

0

6% 5%

35%

5%

32%

5%

20

40

About the same

Harder to access

39%

39% 60

80

Easier to access

100

I don’t know or no comment

capital requirements More than half of respondents say they have enough capital to fund their expansion plans.

Do you have the necessary capital required to execute your growth strategy?

2018

58%

26%

16%

2017

58%

23%

19%

2016

58%

25%

17%

0

20 Yes

No

40

60

80

100

Unsure

raising capital YES

Slightly more than one-quarter of respondents say they plan to seek external financing in the coming years.

26% NO

74%

Are you planning on raising capital in the near future?

16 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 16

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:17 PM

FINANCIAL PERFORMANCE

funding sources Banks, strategic partners and government grants are the most popular sources of capital.

What sources of capital do you plan to access?

Banks

GOVERNMENT’S ROLE IN RAISING CAPITAL

48%

Strategic partners

45%

Government grants

40%

Lines of credit

27%

Friends and family

20%

Personal savings

19%

Angel investors

18%

Venture capital

16% 10%

Credit cards None of the above

7% 0

10

20

30

40

50

CASE STUDY

ottawa entrepreneurs champion steady-growth startups with new fund Fed up with the grow-fast-or-perish mantra that has dominated startup communities around the world, two Ottawa entrepreneurs are introducing an alternative funding model to support local “lifestyle businesses” – firms that are growing at a steady clip but won’t yield the exponential returns on investment that venture capital investors are after.

Scott Annan and Guido Giordano, the two men behind the Mercury Grove accelerator that spawned Ottawa success stories such as Fullscript, launched Manual Ventures this spring.

The fund targets SaaS firms that

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 17

“The importance of continued funding from governments and the private sector is key. The Ontario government recognized this in its 2018 budget when it offered increased SR&ED expenses. The federal government recognized this when it set up the new IDEAS program.”

JOSHUA SMITH BUSINESS INCENTIVES LEADER WELCH LLP

already have some monthly recurring revenue under their belts, and ties small loans to that figure. Interest is paid back to investors on a quarterly basis based on how quickly the firm is growing, allowing angels to see a return on their investment without a startup necessarily achieving an exit.

Annan says the alternative model addresses a problem he’s seeing in startup communities around the world, Ottawa included: there are a lot of startups out there today, and VCs are only putting money into the ones that are likely to show an exponential return.

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 17

2018-05-14 2:17 PM

FINANCIAL PERFORMANCE

sales and revenue More than half of respondents say their sales and revenues are increasing.

How did your sales and/or revenue change in the last fiscal year?

2018

13%

22%

57%

8%

2017

15%

20%

56%

8%

2016

13%

25%

53%

9%

FALL 2015

15%

24%

48%

13%

SPRING 2015

12%

26%

55%

6%

0

20

40

Stayed the same

Decreased

60

Increased

80

100

I don’t know or no comment

net income Slightly more than half of all respondents say their profits increased last year.

How does your net income for 2017 compare to your net income for 2016?

2018

51%

17%

20%

2017

48%

20%

16%

2016

48%

17%

20%

51%

18%

22%

SPRING 2015 0

20 Higher

40 Lower

60 No change

18 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 18

80

12%

15%

16%

8%

100

I don’t know or no comment

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:17 PM

19 REAL ESTATE

> Housing market > Commercial property > Workplace trends

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 19

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 19

2018-05-14 2:17 PM

REAL ESTATE

homebuying intentions Downsizing is the most popular option among those respondents who plan to buy a home in the coming years.

In the next five years, will you be looking to…

HOUSING MARKET FACING UNDERSUPPLY

“We’re seeing an undersupply of singlefamily homes, semis and townhomes. The condo market is well-served and we have a considerable amount of new construction. But there’s undersupply of every other type of home.

The other big thing that’s happening is a construction boom (in Ottawa’s outskirts) because there is development land outside the city limits. It isn’t a bad commute and most of those communities are adding bus schedules.

That’s what’s making Ottawa’s real estate market different from Toronto and Vancouver.

We have a relief valve 20 kilometres in any given direction. (Those cities) don’t have the kind of relief that we have to answer the supply problem.”

Stay put

62%

20 Downsize to a smaller home or condo

18%

20

Upgrade to a larger home

11%

20 Enter the housing market with a firsttime home purchase

5%

Sell and enter the rental market

3% 0

10

20

30

40

50

60

70

home prices: ottawa’s competitive advantage?

Three in five respondents say Ottawa’s relatively low housing prices help local firms attract employees.

Ottawa has lower home prices than Toronto. What impact does this have on your ability to attract and retain employees?

Very helpful

17% 43%

Somewhat helpful Will have no impact

34% 7%

Don’t know 0

10

20

30

40

50

RALPH SHAW PRESIDENT OTTAWA REAL ESTATE BOARD

20 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 20

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:18 PM

REAL ESTATE

workplace trends One-third of respondents own their commercial space. Among those who lease, medium-term tenancies of between three and nine years are most common.

Do you own or lease the building from which you operate your business?

2018

33%

13%

2017

32%

15%

2016

36% 0

30%

19%

20 Own

31%

40

Long-term lease (10+ years)

11%

12%

11%

29% 60

Short-term lease (under 3 years)

12%

8% 80

8% 100

Medium-term lease (3 to 9 years)

All our staff work from home

working from home Telecommuting continues to grow in popularity, with one in five respondents reporting that employees are spending more time working from home.

Compared to this time last year, are your staff spending…

20%

More time working from home

32% 2%

Less time working from home About the same as last year Not applicable

45%

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 21

HOMEBUILDERS BUSY AMID PENT-UP DEMAND “It’s been a wonderful year for home sales in 2017. 2018 is fantastic if you’re in the home construction business and even better for subtrading.

It’s exciting to sell as many homes as we can. The challenge is managing the availability of subtrading for homes. It’s a good problem to have. The year continues to be very busy. Sales continue to be high, above average for the past few years. The residential construction industry will continue to have a very busy year with pent-up demand.

There’s nothing immediately challenging but there is no shortage of people who need a house.

The home building association and members continue to align themselves with Algonquin College, encouraging many interested young people to join the trades. We’re strongly encouraging people, especially young people, to take a career in the subtrades seriously.”

JOSH KARDISH VICE-PRESIDENT EQ HOMES

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 21

2018-05-14 2:18 PM

REAL ESTATE

office expansions Nearly one-third of respondents say they’ll need a bigger space for their business in the coming years.

COMMERCIAL REAL ESTATE MARKET ‘FIRING ON ALL CYLINDERS’

“We are seeing fundamental strength in both the office and industrial markets, as well as strong demand on the investment front in Ottawa. All three of those are firing on all cylinders.

Vacancy rates are declining, demand is increasing and we are feeling optimism in the office and industrial communities.

If you compare to three years ago, it seems that conversations regarding the federal government and the worrisome tones have moved aside.

Everything is geared towards people and there’s a humanistic quality that’s coming into real estate. Environmental sustainability, open-concept design, flexibility, working from home – all of these things have been facilitated with technology. It represents businesses looking after its most precious and expensive asset: people.

What I’m seeing for the year ahead, in one word, is growth. The private sector will continue to grow in 2018 and occupy more space than it did at the beginning of the year.”

SHAWN HAMILTON SENIOR VICE-PRESIDENT AND MANAGING DIRECTOR CBRE

22 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 22

Thinking about your organization’s space, over the next five years do you plan to…

Increase its physical footprint by moving to a larger space or expanding

31%

Downsize its physical size 8%

Stay the same

62%

0

10

20

30

40

50

60

70

CASE STUDY

telesat moving downtown with new place bell lease As Telesat prepares to turn 50 next year, the satellite technologies firm is preparing to move from its east-end campus to two floors inside the office tower at 160 Elgin St. as part of a bid to attract new talent.

Within the next year, Telesat will move into the 20th and 21st floors of H&R REIT’s Place Bell building in a multi-year lease amounting to roughly 76,000 square feet of space.

The shift downtown will take Telesat out of Telesat Court, the eponymous Gloucester street that the firm has called home for nearly three decades.

With Telesat’s age comes an impending wave of retirements. CEO Dan Goldberg says many of the company’s long-standing employees are reaching the end of their careers, and the firm must attract young talent to fill those roles and more as the 240-person firm continues to grow.

“A lot of the prospective hires would prefer to be downtown,” he says.

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:18 PM

23 TOURISM AND HOSPITALITY

> Meetings and conventions > Corporate entertainment spending

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 23

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 23

2018-05-14 2:18 PM

TOURISM & HOSPITALITY

hosting conferences Nearly one-quarter of respondents say they plan to host a national or international conference.

OTTAWA’S POPULARITY GROWS AMONG TOURISTS “It’s a very interesting and unique time coming off what was such a special year in 2017.

It was a record year for tourism in Ottawa. We spent a good portion of 2017 not just living in the moment, but trying to take advantage of the attention on Ottawa for future growth in years to come.

2018 is the first test of how well we did with that. We had an opportunity with more people here to have a really positive experience in Ottawa, an opportunity to engage with people and help them tell their stories about their experiences in Ottawa.

So far in 2018, it’s good news.

We won’t have the same big events as in 2017, but we are seeing very positive signs that the work the community put in in 2017 is paying positive dividenda beyond the year 2017.

We’re optimistic that the outside view of Ottawa has really changed and Ottawa is becoming more and more of a popular destination, both domestically and internationally.”

MICHAEL CROCKATT PRESIDENT AND CEO OTTAWA TOURISM

Many of Ottawa’s business leaders, academics and professionals contribute to tourism economic growth by hosting national and/ or international meetings and conventions in Ottawa. Is your organization in a position to do the same?

5% 18%

No

77%

We are planning for one in the future

CASE STUDY

ottawa tourism offers tour operators incentives to court chinese visitors Ottawa Tourism believes a new incentive program will help bring more Chinese tourists to the National Capital Region, and it’s preparing local businesses to capitalize on the incoming opportunities.

The initiative coincides with CanadaChina Year of Tourism 2018, a joint program from the Canadian and Chinese governments encouraging travel between the two nations. More than 650,000 Chinese visitors came to Canada in 2017, according to Statistics Canada, a number expected to rise in the coming years as Chinese nationals increasingly turn to travel. The federal government has taken steps to encourage China’s travellers to

24 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 24

Yes

consider Canada, opening seven new visa centres in the country.

Though comprehensive data is hard to come by, the latest analysis from Ottawa Tourism estimates that 41,000 Chinese visitors came through Ottawa last year.

Here’s how Ottawa Tourism’s new program works: If Chinese inbound tour operators register for the incentive program by the end of next month, they’ll receive a financial bonus for any extra room bookings they bring to the city. Existing operators earn the incentive for increasing their 2018 numbers over last year, while new operators would be rewarded for bringing any activity to the city.

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:18 PM

TOURISM & HOSPITALITY

corporate hospitality roi Respondents say they get the biggest return on their corporate hospitality spending from giving thank-you gestures to clients and perks to staff.

How would you rank the following in terms of ROI on spending from your corporate hospitality or employee engagement budgets: Thank-you gestures to clients Perks for staff

16%

11%

41%

Charitable engagement

13%

32%

Entertaining prospects

8%

29% 3%

20

17%

21%

28%

19%

8% 32%

31%

0

23% 3%

41%

40

24%

5% 60

80

Excellent

Very good

Poor

N/A

100 Neutral

corporate hospitality spending Restaurant meals and staff parties are the most popular forms of corporate hospitality spending among respondents.

In which of the following areas does your company spend money on entertaining clients, staff and community members to support sales or community engagement?

Sports and entertainment

32% 66%

Restaurant meals 24%

Cocktail events Corporate retreats

16%

EMPLOYEE ENGAGEMENT “One of the interesting trends over the past few years is the shift towards using corporate hospitality budgets for staff perks or rewards that improve employee engagement and company culture.

Entertainment is being used as a method of recruiting and retaining top talent. Employees see companies that are investing in these areas as desirable places to work.

We are also seeing that companies are looking for more flexibility and the ability to customize to their own needs.

The Ottawa Senators have adjusted our product set to reflect that, as well as our go-to-market strategy to respond to that desire for customization and flexibility.

We’ve introduced new products such as Club Bell and our newly renovated Alumni Lounge that will be ready next season, offering all-inclusive meals plus a high-end experience.”

55%

Staff parties Other professional entertainment

GEOFF ROSS DIRECTOR OF TICKET SALES AND SERVICE OTTAWA SENATORS HOCKEY CLUB & CANADIAN TIRE CENTRE

22%

In-office amenities, such as food, drink and games

52% 0

10

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 25

20

30

40

50

60

70

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 25

2018-05-14 2:18 PM

Ottawa Chamber AD - Full page.qxp_Layout 1 2018-05-11 2:17 PM Page 1

Join the largest, most influential voice for business in Ottawa

Last year, 7,400+ guests attended one or more events (48 events total) 63 members/5 committees dedicated 961 person-hours to advocacy We’ve grown to 700+ members representing 27,000+ employees

ottawachamber.ca 26 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 26

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:18 PM

27

POLITICS AND PUBLIC POLICY > Approval ratings of Mayor Jim Watson and city council > Impact of minimum wage increases > Advocating for change

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 27

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 27

2018-05-14 2:18 PM

POLITICS & PUBLIC POLICY

jim watson retains business community’s support While support for Mayor Jim Watson has softened slightly over the past year, a slight majority of respondents say they approve of his job performance.

WATSON SUSTAINS POPULARITY “The mayor is heading into his third (consecutive municipal) election, asking voters to give him another (mandate). It’s clear he remains quite popular with business leaders.

His approval rating is down slightly, but is back to where it was in 2016. For a mayor who’s been in office for eight years, those are exceedingly good numbers.

The challenges reported by the business community include getting things done at City Hall, which they perceive can be slow. But they still view the mayor as doing a good job.

There doesn’t appear to be any spike in disapproval, despite some challenges the mayor has faced such as the delay in opening the light-rail line.

Usually, (the status quo) isn’t an interesting story, but in this case, it’s (interesting). Watson has been a fixture in Ottawa politics for a long time.

Perhaps it’s because there is no alternative, no clear contenders to challenge him in this fall’s election. But regardless, when you ask most business leaders, he remains popular.”

Overall, do you approve or disapprove of the job each of the following is doing at the City of Ottawa?

14%

Mayor Jim Watson

3%

City Council

0

37%

Disapprove

40%

20

40

6%

16% 5%

8%

13% 5%

9%

60

Approve

Strongly approve

80

100

Neither approve or disapprove

Strongly disapprove

Unsure

business property tax reduction tops priorities Lowering business property taxes is the most important measure that the government can take to improve the local business climate, respondents say.

What would you like to see from government to minimize the important issues you’ve identified?

Streamline permit process

17%

Reduce development charges

14%

Implement smart cities initiatives Host more major events, such as turning some Canada 150 celebrations into annual festivities Reduce business property tax Reduce government spending Improve/invest in capital infrastructure projects

28%

40% 38% 38% 16%

Streamline hiring of immigrant talent

16% 10%

None of these 0

28 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

H

23%

Improve safety/security of our city

DAVID COLETTO CEO ABACUS DATA

OBGS MAGAZINE 2018indd.indd 28

31%

4% 26%

City of Ottawa staff

12% 5%

26%

37%

5

10

15

20

25

30

35

40

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:18 PM

POLITICS & PUBLIC POLICY

impact of minimum wage in ottawa More than two in five respondents say the increase in Ontario’s minimum wage will have a negative impact on their business.

To what extent will the increase in the provincial minimum wage affect your business?

RETAILERS ‘HOLDING THEIR BREATH’ Very positive impact

28%

Mostly positive impact

15%

No impact either way

1% 5%

Mostly negative impact

50%

Very negative impact

impact of minimum wage on specific industries Employers in the hospitality, tourism and retail sectors were the most likely to say that increases in the minimum wage will have a negative impact on their business.

To what extent will the increase in the provincial minimum wage affect your business?

4%

Retail Technology

23%

7%

38% 68%

1%

Hospitality/Travel

1% 3%

Consulting

1% 3%

Construction

22%

35%

17%

20% 40%

49% 20

40

9%

44%

67%

2% 0

28%

60

9% 9%

80

Very positive impact

Mostly positive impact

No impact either way

Mostly negative impact

100

“It’s a tough time for small retailers in Ottawa. The main street retailers are holding their breath to see how the new minimum wage and labour laws will affect them and by how much.

This is a time of uncertainty. Long-term, we’re optimistic, but right now we’re trying to absorb these cost structures and continue to run our businesses. There’s immediate concern, but long-term optimism.

The older existing businesses are concerned, while the young millennials opening up businesses are very optimistic.

We’re in a time of generational change with new business models, new approaches, new offerings.

We’re excited about our prospects on Preston Street as the area densifies and we’re looking forward to new clientele coming to live in the neighbourhood to encourage new retail in the area to meet their needs.”

LORI MELLOR EXECUTIVE DIRECTOR PRESTON STREET BIA

Very negative impact

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 29

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 29

2018-05-14 2:18 PM

POLITICS & PUBLIC POLICY

reacting to a higher minimum wage Raising prices and introducing more automation are the two most common measures respondents say they plan to take in response to higher hourly labour costs.

How likely are you to do the following as a result of the increase in the provincial minimum wage?

Cut margins Reduce operating hours

11%

8%

Look for ways to introduce more automation Reduce employee benefits

14%

21%

Raise prices

10% 16% 7%

14% 7%

0

14%

6%

8% 15%

7%

20

21%

27%

36%

27%

17%

49% 21%

34%

29%

40

30%

50%

60

Certain to

Likely to

Likely not to

Certain not to

80

100

Probably will

CASE STUDY

ottawa restaurateurs hiking prices, working more to offset minimum wage hike: study Two months after Ontario’s first of two planned minimum wage hikes, Ottawa restaurant owners said they’re coping by cutting down hourly workers’ shifts and passing the extra costs on to the customer, according to a local study.

Ottawa-based Archan Consulting surveyed three dozen local restaurant owners in Canada’s capital to gauge how they’ve adapted to meet the demands of Ontario’s rising general minimum wage, which rose to $14 from $11.60 at the start of the year and is slated to increase by another dollar in

2019. Archan said the number of respondents represents roughly 12 per cent of locallyowned and independent restaurants in Ottawa.

Some 89 per cent of those surveyed said they raised menu prices to offset the higher wages. Fourteen per cent said they had laid off staff, and 42 per cent reduced new hires. One in ten say they’ve reduced workers’ benefits, a move that attracted harsh public response towards businesses including Tim Hortons franchises in Cobourg and Whitby, east of Toronto.

30 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 30

The minimum wage increase also appears to be changing who’s doing the work at restaurants. Nearly two-thirds of those surveyed reported they’d reduced shifts for hourly workers – often students or those just entering the service industry.

In their place, salaried workers and owners themselves are taking on more work: 28 per cent of respondents said they’d increased shifts for the former group and 61 per cent said they were doing more themselves, in some cases working up to 80 hours a week.

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:18 PM

31 LOOKING AHEAD

> Exit strategies > Succession planning > Legal issues > Sustainability practices

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 31

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 31

2018-05-14 2:18 PM

LOOKING AHEAD

planning an exit Nearly half of all respondents say they are not thinking about stepping aside. Those who are thinking about an exit are roughly evenly divided on when they plan to move on.

STARTING TO PLAN “Unless you formally document something in a plan, it is really hard to have a vision of what a good exit looks like.

Unless you have a documented plan, it is hard to assess all that needs to be done and the amount of time that’s needed. And it’s really hard to gauge all the emotional things that you need to consider as a business owner.

The most important first step a business owner can take is simply documenting the plan itself and thinking holistically about all that has to happen. It’s important to bring tax, insurance and banking considerations together and thought through in a formal written plan.

You don’t have to be close to retirement to make the whole succession discussion start. What you have to do is involve the right people and enough people that can look at both the individual and business needs.”

When do you plan on exiting your business?

8% 11%

28%

3-5 years 6-10 years 11-15 years

18%

15+ years Not applicable/unsure 18%

Not planning to exit 9%

7%

succession planning The overwhelming majority of respondents do not have a formally documented succession plan.

Do you have a succession plan or exit strategy in place?

11%

2018

50%

2017 11% 0

24%

32% 20

40

Yes, it is well documented

ANDREW ARNOTT REGIONAL VICE-PRESIDENT OF BUSINESS FINANCIAL SERVICES RBC

32 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 32

<3 years

No

60

26%

19%

15%

9%

80

4%

100

Yes, it is informal at this stage

Not even thinking about it

Not applicable/unsure

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:18 PM

LOOKING AHEAD

exit scenarios An external sale is the most popular option for respondents thinking about an exit.

Which of the following exit scenarios are you likely to pursue?

MAXIMIZING VALUE 2018

37%

2017

24%

0

8%

11%

17%

20 External sale

16%

15%

7%

40

1%

24%

60

Sale to family member

Winding down the company

1% 16%

IPO

7%

16%

80

100

Sale to your management team Unsure

Other

CASE STUDY

triple merger accelerates thinkwrap commerce’s growth plans Thinkwrap Commerce is joining forces with two other firms to form a single commerce services company, letting the Ottawa-based firm focus on developing new technology.

The triple merger was orchestrated by Toronto’s Tenzing and includes Redmond, Washington-based Spark::red. Both are managed hosting providers for clients using Oracle or SAP Hybris commerce platforms.

Thinkwrap, previously named one of OBJ’s fastest growing firms and a mainstay on the Branham300 list of Canada’s top ICT companies, represents the software component of the new combined entity.

CEO Steve Byrne, who will remain in charge of the Thinkwrap side of things,

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 33

“A competitive process with thirdparty buyers can result in a higher valuation. However, a management buyout can be an attractive alternative, if done right.”

STEPHAN MAY MANAGING DIRECTOR WELCHGROUP CONSULTING

says the merger allows the company to “think bigger.”

The combined company will see its revenue base tripled – now well into eightfigures – with some-215 total employees spread across every inhabited continent in the world.

Byrne says this isn’t the first time Thinkwrap has been approached for M&A opportunities, but a critical factor has always been maintaining the company’s culture.

“One of the things that we did not want was for this company to disappear into some massive, larger version of ourselves,” he says. “We wanted all of that to persist.

What we built in Ottawa, we’re really proud of.”

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 33

2018-05-14 2:18 PM

LOOKING AHEAD

legal issues Data breaches and litigation are the most commonly cited legal concerns among respondents.

TOURISM SECTOR CARRIES FORWARD 2017 MOMENTUM “There was risk of a hangover effect after the success of 2017, but it hasn’t materialized. This year has been as strong as last year and ... there’s no reason not to be optimistic after the first quarter.

The one thing we can point to is meetings and conventions. We had a record year in 2017 and we don’t have as much business in the books for 2018, but that was to be expected. We knew that a lot of industries going through their rotation cycles were looking at Ottawa in 2017, so we’ve got work to do to replace those large conventions, but we’re doing that and are actively pursuing more business out of the U.K. and the U.S. Our dollar is favourable for international travel. The climate in the U.S. is also perhaps not as welcoming as in the past, so Canada can benefit from that. We’re in a good place. I think the whole country has seen a bump in 2017 during the anniversary year and there’s no reason to not expect us to continue to grow.”

Which legal issues related to your business keep you up at night?

Lack of proper employment agreements Data breaches / ransomware

15%

Litigation – risk of being sued or the time and expense of lodging a claim against another party

13%

Poor or inefficient business structure

10%

Lack of a proper agreement between shareholders/partners

5% 7%

Unprotected intellectual property

13%

Other None of these

53% 0

10

20

30

40

50

60

sustainability Economic challenges and a lack of incentives were the most commonly cited barriers to businesses becoming more sustainable.

Which are the barriers facing Ottawa businesses from becoming more sustainable in their practices? Please rank the following in order of importance.

Challenging economic times & conflicting internal priorities

38%

No incentives - no market pressure from customers, competitors or corporate peers Lack of skills and knowledge of how to implement practices that would lead my company to be more sustainable No clear business case to do so

34 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

25%

19%

23%

20%

10% 9%

0

17%

23%

18%

16%

Insufficient direction from the City of Ottawa

STEVE BALL PRESIDENT OTTAWA GATINEAU HOTEL ASSOCIATION

OBGS MAGAZINE 2018indd.indd 34

7%

15%

20 1

19%

28%

20%

24%

21%

10%

20%

45%

60 2

10%

15%

23%

20%

40

13%

3

80 4

100 5

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:18 PM

35

PROFILES OF SURVEY RESPONDENTS

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 35

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 35

2018-05-14 2:18 PM

SURVEY RESPONDENTS

breakdown of survey respondents Some 755 business leaders completed the 2018 Ottawa Business Growth Survey. Hereâ&#x20AC;&#x2122;s a closer look at their roles and companies: What is your position in the business?

President/CEO and Owner

53%

President/CEO (non-owner)

3%

Partner

9% 5%

Vice President

7%

Vice President/Director

13%

Manager Other

10%

0

10

20

30

40

50

60

company size How many employees does your organization have?

14%

Owner/Operator 1-5 employees

24%

6-10 employees

14%

11-20 employees

13%

21-50 employees

12%

51-75 employees

6%

76-149 employees

5%

150+ employees

12% 0

5

36 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 36

10

15

20

25

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:18 PM

SURVEY RESPONDENTS

industry sector Which industry does your organization operate in?

Retail

10%

Consulting

9%

Technology

9%

Hospitality

8%

Construction

6%

Healthcare

6%

Real Estate

5%

Not-for-profit / Association

5%

Banking and Finance

4%

Legal

3%

Accounting

3%

Education

3%

Communications

3%

Manufacturing

3%

Employment

2%

Arts

2%

Travel

2%

Energy

1%

Aerospace

0%

Other

18% 0

5

10

15

20

head office location What best describes the company you work for?

Locally based company (HQ is in the National Capital Region)

5% 2%

12%

Regional office of a Candian company (HQ is elswhere in Canada) Regional office of an American company Other

80%

Regional office of a European compnay Regional office of an Asian-Pacific company

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 37

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 37

2018-05-14 2:18 PM

INDEX

ottawa business growth survey questions at a glance BUSINESS OUTLOOK Compared to a year ago, has your confidence in the local economy improved, worsened or stayed the same?

In the next year, do you plan to hire more employees, keep your staff numbers stable or reduce your headcount?

Have the following business issues improved, worsened or stayed the same over the past year?

Over the next year, do you expect the market for your business sector to improve, worsen or stay the same?

What are the most important issues for Ottawa businesses over the coming five years?

10 11 12 12 13

FINANCIAL PERFORMANCE Compared to a year, is credit harder, easier or the same to access?

Do you have the necessary capital required to execute your growth strategy?

Are you planning on raising capital in the near future?

What sources of capital do you plan to access?

How did your sales and/or revenue change in the last fiscal year?

How does your net income for 2017 compare to your net income for 2016?

16 16 16 17 18 18

REAL ESTATE Thinking about the residential real estate market, in the next five years will you be looking to upgrade, downsize, make your first home purchase or sell and start renting?

Ottawa has lower home prices than Toronto. What impact does this have on your ability to attract and retain employees?

Do you own or lease the building from which you operate your business?

Are your staff spending more or less time working from home?

Thinking about your organizationâ&#x20AC;&#x2122;s space, over the next five years do you plan to expand, downsize or stay put?

20 20 21 21 22

TOURISM AND HOSPITALITY Is your organization in a position to host national and/or international meetings and conventions in Ottawa?

Rank the uses of corporate hospitality or employee engagement budgets by ROI In which areas does your company spend money on entertaining clients, staff and community members to support sales or community engagement?

24 25 25

POLITICS AND PUBLIC POLICY Do you approve or disapprove of the job the mayor, city council and municipal staff are doing?

What would you like to see from government to minimize the issues facing businesses?

To what extent will the increase in the provincial minimum wage affect your business?

How will your business respond to the increase in the provincial minimum wage?

28 28 29 30

EXIT STRATEGIES AND SUCCESSION PLANNING When do you plan on exiting your business?

Do you have a succession plan or exit strategy in place?

Which exit scenarios are you likely to pursue?

Which legal issues related to your business keep you up at night?

What are the barriers facing Ottawa businesses from becoming more sustainable in their practices?

38 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018

OBGS MAGAZINE 2018indd.indd 38

32 32 33 34 34

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:18 PM

Ottawa business news

DELIVERED STRAIGHT TO YOUR INBOX

STAY INFORMED AND NEVER MISS AN IMPORTANT DEVELOPMENT WITH OBJâ&#x20AC;&#x2122;S FREE E-NEWSLETTERS

Subscribe and win!

New subscribers are entered into a monthly draw for the ultimate smartphone charger, the PowerTrek, from Ottawa-based Powerstick.com.

It Includes a 9,000 mAh battery and built-in charging cables so you are never left searching for the right cable. Charge up to four devices simultaneously!

Draw will be held on the last business day of the month and winners contacted via email.

ENTER TODAY! objtoday.ca

WWW.OTTAWABUSINESSSURVEYREPORT.CA

OBGS MAGAZINE 2018indd.indd 39

WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2018 39

2018-05-14 2:18 PM

THANKS TO OUR SUPPORTING SPONSORS

IN PARTNERSHIP WITH

CA RP ROA D CORRID OR PROMOTING ECONOMIC DEVELOPMENT IN WEST OTTAWA

BLACK

CMYK

PANTONE

Preston Street | OTTAWA

How does your business compare? Contact us to find out more.

Welch LLP 123 Slater St. 3rd Floor, Ottawa, ON K1P 5H2 (613) 236-9191 welchllp.com email: obgs@welchllp.com

Ottawa Chamber of Commerce 328 Somerset St. West Ottawa, ON K2P 0J9 (613) 236-3631 ottawachamber.ca email: info@ottawachamber.ca

Follow us on Twitter at #OBGS © 2018 Ottawa Business Journal This publication contains information considered accurate at the time of printing. However, the publisher is not responsible for any errors or omissions that may occur. Reproduction in any form is prohibited without the written permission of the publisher.

40 WELCH LLP/OTTAWA CHAMBER BUSINESS GROWTH SURVEY 2017

OBGS MAGAZINE 2018indd.indd 40

WWW.OTTAWABUSINESSSURVEYREPORT.CA

2018-05-14 2:32 PM