2019 AN EXCLUSIVE REPORT ON THE OUTLOOK AND ATTITUDES OF OTTAWA’S BUSINESS LEADERS
BUILDING BUSINESS CONFIDENCE HOW MAJOR INFRASTRUCTURE PROJECTS ARE RADICALLY CHANGING THE CAPITAL
BROUGHT TO YOU BY
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DEEP ROOTS IN THE
OTTAWA
BUSINESS COMMUNITY
FOUNDED IN 1918 Welch LLP is a Chartered Professional Accounting firm that provides a full range of accounting, assurance, tax, advisory and specialty services. Welch offers private enterprises, government and not-for-profit organizations industry specific services and knowledge with a relationship-driven approach to client service.
613.236.9191 | welchllp.com
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FOREWORD
Valuable insights for our community Now in its fifth year, the Ottawa Business Growth Survey has quickly become an important tool for our local businesses to have their opinions heard. Over the past five years, we have seen the survey grow and continue to provide valuable insights for our community. We thank our presenting partners: Ottawa Business Journal, the Ottawa Board of Trade and Abacus Data. We also thank RBC, Gowling WLG and the Ottawa Senators for their generous support. Thank you to our local business community for your participation and for helping Ottawa to grow and prosper, making it a great place in which to live and do business.
Micheal Burch FCPA, FCA, CFP Managing partner, Welch LLP
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Data that continues to demonstrate value for Ottawa businesses The 2019 Ottawa Business Growth Survey results show strong confidence in our local economy amongst the region’s businesses, which translates into growth and wealth creation in our community. Another strong confidence score for the construction industry highlights this year’s survey, with confidence in the hospitality industry rebounding to show impressive strength. Data is at the heart of many business decisions, and I hope you’ll agree that this year’s survey doesn’t disappoint. Over the course of 2018 and into this year, the Ottawa Board of Trade has been transformed through the consolidation of the Ottawa Chamber of Commerce with the West Ottawa Board of Trade and then with the Orléans Chamber of Commerce. We are now a single voice for business. We are advocating for our business community to realize muchneeded investments in transit, transportation and city-building projects; we are working to transition to a low-carbon economy, including more green building technologies and smart city capacity; moving to improve export readiness in our businesses; and focusing on attracting, retaining and developing the best talent available. Complementing this robust advocacy agenda is the need to ensure our vibrant local businesses work towards inclusive growth in our community. The Ottawa Board of Trade continues 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. Thank you to our partners and sponsors for your tireless work in making the 2019 Ottawa Business Growth Survey a resounding success. We hope you’ll find the results helpful in improving your business as we move forward collaboratively to realize our collective vision of an Ottawa that is the best place to do business in North America.
Ian Faris President & CEO Ottawa Board of Trade
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FOREWORD
The state of the city’s economy, through the eyes of business leaders On behalf of the entire team at Abacus Data, it’s a pleasure to present the findings of the 2019 Ottawa Business Growth Survey. This year, 776 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. Overall business confidence in Ottawa is steady from last year. Confidence in the construction sector continues to rise while those working in hospitality are feeling more confident than last year. However, optimism in those sectors is countered by declining confidence among retailers. Businesses in Ottawa continue to seek talent. Some 49 per cent report plans to recruit new employees over the next 12 months, but access to skilled
talent remains a struggle for many businesses. More than four in 10 report that access to skilled workers has worsened over the past year. Getting around the city has also become a pain point for many businesses in the city. Almost half say that transportation in the region has gotten worse, and four in 10 report public transit deteriorating – both notable increases from last year’s survey. This year, we explored attitudes around major infrastructure developments in the city. Completion of phase one of LRT, the redevelopment of LeBreton Flats and greater spending on road resurfacing and repair (especially after a brutal winter and early spring) were rated as the top infrastructure investments by survey respondents. This initiative is presented by the Ottawa Board of Trade in partnership with Welch LLP and co-presented by RBC, Gowling WLG and the Ottawa Senators. The survey was also supported by an amazing group of partners that
includes BIAs across the city, the Ottawa Construction Association, the National Capital Heavy Construction Association, the Greater Ottawa Home Builders Association, the CFIB, the Building Owners and Managers Association and the Family Enterprise Xchange. Abacus Data, a full-service Canadian market research firm based in Ottawa, carried out the survey. 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
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COVER STORY
CANADA’S CAPITAL
11
BUSINESS OUTLOOK
15
FINANCIAL PERFORMANCE
19
INTERNATIONAL MARKETS
23
POLITICS AND PUBLIC POLICY
27
LOOKING AHEAD
33
RESPONDENT PROFILES
HOW OTTAWA’S MEGAPROJECTS ARE RESHAPING
CONFIDENCE AND HIRING PLANS REVENUES AND PROFITS EXPORTING AND GLOBAL OPPORTUNITIES MUNICIPAL APPROVAL RATINGS EXIT STRATEGIES AND SUCCESSION PLANNING
Editor’s note: Some results on the following pages may not add up to exactly 100 per cent due to rounding. WWW.OTTAWABUSINESSSURVEYREPORT.CA
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KEY FINDINGS
HIGHLIGHTS OF THE 2019 OTTAWA BUSINESS GROWTH SURVEY
21%
51%
of all respondents say they approve or strongly approve of Ottawa Mayor Jim Watson’s performance.
of respondents say their confidence in the local economy has increased over the past year. of respondents say the costs of doing business are getting worse.
49% 54%
of respondents say they plan to recruit new employees over the next year. However, access to skilled workers continues to be a concern for many businesses.
of respondents say their sales and/or revenues increased over the last year. Similarly, 46 per cent said their net income rose over the last year.
Tech companies are most likely to report feeling bullish about their prospects. At the other end of the spectrum, business confidence among retailers has fallen sharply for the second straight year. 6 WELCH LLP/OTTAWA BOARD OF TRADE BUSINESS GROWTH SURVEY 2019
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41%
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COVER STORY
These are city-building projects … that are going to draw talent to Ottawa (and) bring visitors into town. – IAN FARIS, PRESIDENT AND CEO, OTTAWA BOARD OF TRADE
CAPITAL BUILDING
Megaprojects set to reshape Ottawa, help attract top talent BY LISA THIBODEAU lisa@obj.ca
T
he sight of cranes, dump trucks and scaffolding has become a nearubiquitous feature of Ottawa’s urban landscape in recent years as new homes, commercial spaces and amenities are
constructed to meet the needs of a city that’s projected to surpass one million residents in 2019. However, many of these planned and under-construction initiatives are more than just growth-related infrastructure. They’re transforming how and where Ottawa residents live, work and play, improving commuting times
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INFRASTRUCTURE INVESTMENTS
LRT Phase One Top-ranked
29% Top five
65% PHOTO BY TED SIMPSON
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and changing how visitors view Canada’s capital. Among the most eagerly anticipated projects is the first phase of Ottawa’s light-rail line, which is poised to open this summer. Early construction work on its second phase is already underway. This expansion will include a link to the Ottawa International Airport, which itself is planning a $25-million overhaul of its passenger terminal that will also see a new hotel connected directly to the facility. Elsewhere, the $2-billion effort to construct a new Civic Hospital campus on the edge of the Central Experimental Farm will rank among the largest construction projects in the city’s history. And, despite setbacks, the National Capital Commission remains committed to redeveloping LeBreton Flats. In addition to changing Ottawa’s outward appearance, these megaprojects have the potential to attract skilled workers and tourists, argues Ian Faris, the president and CEO of the Ottawa Board of Trade. “These are city-building projects … that are
Ottawa Business Growth Survey respondents ranked the top infrastructure investments or major developments they believe will have the greatest positive impact on the economy.
>
(The first figure indicates the percentage of respondents who selected the project as their top-ranked selection. The second figure is the percentage of respondents who included it among their top five selections.)
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SECTOR SNAPSHOT:
TOURISM
While the Canada 150 celebrations in 2017 may have set the bar high for Ottawa’s tourism sector, the subsequent dip in visitors to the capital in 2018-19 was nowhere near as steep as some had feared. And, according to the Conference Board of Canada, Ottawa will see 11.2 million visitors by the year’s end, a slight increase from 2018. Jantine Van Kregten, communications director at Ottawa Tourism, says the 2017 celebrations bolstered the city’s reputation as a destination for major events. There have also been several upgrades of key Ottawa destinations, such as the renovations to the Canada Science and Technology Museum, that help attract visitors and keep people coming back. One of the trends shaping the sector is demand for more personalized vacations and nontraditional tours. “Visitors want customization; they want to personalize the experience so that they aren’t doing exactly what everyone else is doing,” says Van Kregten. “The city has created rural bike tours, for example … which can be customized to your needs.” Looking ahead, Van Kregten says Ottawa is in a very good position for 2020, with more large events in the works that will generate more economic activity in the city. “Tourists spend more than $2 billion in Ottawa. That is money that is earned elsewhere and spent and left here,” she says. “That enhances our quality of life ... it’s a great industry to be in.”
Top-ranked
15% Top five
63%
PHOTO COURTESY THE NATIONAL CAPITAL COMMISSION
3
Greater spending on road resurfacing/repair Top-ranked
12% Top five
55%
4
LRT Phase Two Top-ranked
10% Top five
70%
Relocating to be closer to light rail: Within the next five years, would you consider... MOVING YOUR BUSINESS TO BE CLOSER TO A LIGHT-RAIL STATION
15%
MOVING WHERE YOU LIVE TO BE CLOSER TO A LIGHT-RAIL STATION
11%
JANTINE VAN KREGTEN, DIRECTOR OF COMMUNICATIONS, OTTAWA TOURISM
NEITHER
79%
0
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2
Redevelopment of LeBreton Flats
10
20
30
40
50
60
70
80
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going to draw talent to Ottawa (and) bring visitors into town,” he says. “(They will) impact positively on how Ottawa is viewed elsewhere. We are not a sleepy government town anymore.”
Highway 417 widening
OTTAWA REIMAGINED
Top-ranked
10% Top five
53%
6 New interprovincial bridge or tunnel Top-ranked
6% Top five
43%
5G Network Top-ranked
5% Top five
38%
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Earlier this year, several local business and community leaders came together to help strategize the best approach to these megaprojects. The task force will work to drum up community support and get people excited about this new phase in Ottawa’s history while providing meaningful input into the evolution of their city. “We can be (a) world-class mid-size city, and people are starting to believe it and demand things that are world-class,” says Shawn Hamilton, a senior vice-president at real estate services firm CBRE and managing director of its Ottawa office. Indeed, some of the results of this year’s Ottawa Business Growth Survey suggest that local business leaders are paying closer attention to the impact of citywide issues on their own operations. When asked to rate several issues, the percentage of respondents who said transit and transportation issues are getting worse jumped by double digits. While that may reflect, in part, the beating that local roads took over a particularly harsh winter as well as disappointment over the delays in opening light rail, it also underscores the importance of modern rapid-transit and transportation infrastructure to the business community. But it’s not just so-called “hard” infrastructure such as roads and rail lines that stand to pay dividends. New urban developments and civic amenities are also drawing significant attention for their potential to shape the capital. For example, moving Ottawa’s central library to LeBreton Flats will create an anchor in a new community that will effectively expand the city’s downtown to the west. The 216,000-square-foot building will be located near the new Pimisi LRT station, connecting it to the rest of the city. Once open, the library is expected to receive nearly 5,000 visitors per day, up from the 2,000 who currently visit the existing Metcalfe Street branch. The project, expected to cost around $193 million, is scheduled to be completed in 2024 and promises to feature a world-class design. “It will become a strong community hub … welcoming residents and visitors alike,” says
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CITY INFRASTRUCTURE Expansion of the Ottawa International Airport
8
Top-ranked
5% Top five
43%
9
New Civic Hospital campus Top-ranked
4%
TALENT ATTRACTION
Top five
35% DND’s relocation to the Carling Campus
10
Top-ranked
2% Top five
14%
PHOTO BY LOURI GOUSSEV
New central library Top-ranked
1% Top five
11%
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Danielle McDonald, the CEO of the Ottawa Public Library. “It will be the centrepiece of the future LeBreton Flats development – one of the most important urban development projects in this city in a century.” The broader LeBreton Flats neighbourhood still retains its potential as a vast swath of undeveloped urban land, despite the collapse of plans to redevelop the site with a series of condos and an NHL arena. The National Capital Commission is moving ahead with a new process to redevelop LeBreton Flats and announced plans in March to start with a piece of land next to the new central library building. Together, the projects will bring thousands of new residents and visitors to a long-neglected corner of central Ottawa. “LeBreton Flats will change how the city views its public space (and) the library has always been a hub for all Ottawans,” Hamilton says. “These things appeal to people, whether they’re at play, visiting, creating a new life or building their existing life.”
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In several sectors, Ottawa companies are global leaders in emerging fields. Autonomous vehicles is one such sector, which is being supported by a 16-kilometre testing facility that’s touted as the first of its kind in North America. Ottawa is already home to more than 70 companies involved in various aspects of the autonomous vehicles industry, including heavy hitters such as BlackBerry QNX and Ford. To succeed, these companies need top talent. For several years, the Ottawa Business Growth Survey has found that access to skilled workers is among the top issues facing local companies. In many cases, a city’s livability can feature heavily in a pitch to prospective employees and help companies attract top talent. “Ottawa is recognized for its quality of life,” says Micheal Burch, managing partner at Welch LLP. “When you add in these (projects), it definitely shows that we are an expanding and developing city.” Hamilton also highlights the sense of momentum that these projects are bringing to Ottawa. “All of these will contribute to the economy, culture, vibe and desirability of Ottawa,” he says. Whether it’s viewed through the lens of attracting talent, economic output, tourism or quality of life for existing residents, “these things really matter,” he says. WWW.OTTAWABUSINESSSURVEYREPORT.CA
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BUSINESS OUTLOOK > Confidence > Hiring intentions > Office expansions > Market expectations
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BUSINESS OUTLOOK
CALCULATING CONFIDENCE
CONSISTENT CONFIDENCE IN THE CAPITAL’S ECONOMY
A
confidence among respondents in the hospitality sector rebounded significantly in 2019. Confidence among retailers, on the other hand, dropped significantly for the second straight year. It’s a trend that’s also seen nationally, Coletto said, as merchants face mounting competition from online retailers and rapidly shifting consumer tastes and habits.
BUSINESS CONFIDENCE INDEX 150
120 114.2
122
122
SPRING 2019
119.2 117
90 SPRING 2017
SPRING 2016
SPRING 2015
SPRING 2014
SECTOR BY SECTOR SECTOR
SPRING 2018
SPRING 2019
CHANGE
Consulting
126.6
125.4
-1.2
Technology
141.6
137.4
-4.2
Hospitality
98.0
103.2
+5.2
Construction
128.8
131.6
+2.8
Retail
103.8
96.0
-7.8
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125
SPRING 2018
124
FALL 2013
mid rising revenues and improving market conditions, Ottawa’s business community is maintaining an optimistic outlook with intentions to grow employee headcounts and, in many cases, expand their physical office space. Ottawa’s business confidence index held steady year-over-year, but remains firmly in positive territory at levels above those recorded between 2013 and 2015. That suggests a raft of downbeat macroeconomic news – such as trade tensions, rising interest rates and perceptions of a labour shortage – have failed to significantly dampen the mood among local businesses. “The results are remarkably stable, despite the headwinds that the economy is feeling,” said David Coletto, the CEO of Abacus Data. The local market research firm administered the Ottawa Business Growth Survey and analyzed the results. “There are no clear red flags … Businesses are feeling upbeat,” he added. While the overall sentiment is positive, the 2019 Ottawa Business Growth Survey revealed significant differences between respondents in various economic sectors. Confidence within the construction sector continues to rise, likely buoyed by a raft of megaprojects including the second phase of Ottawa’s light-rail network, the 10year renovation of Parliament Hill and a hot housing market. Tech respondents remain the most optimistic out of any industry, although their confidence did fall yearover-year – movement that may reflect the sector’s inherent volatility. Elsewhere, many in the hospitality sector had feared a post-Canada 150 “hangover” characterized by declining visitor numbers in the immediate aftermath of the country’s sesquicentennial celebrations. Those concerns likely contributed to declining confidence in the sector last year; with those fears alleviated and visitor numbers holding strong,
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.
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BUSINESS OUTLOOK
Compared to a year ago, has your confidence in the local economy ... n INCREASED n STAYED THE SAME n DECLINED
2019
21%
55%
23%
2018
19%
58%
23%
2017
23%
2016
17%
FALL 2015
18%
SPRING 2015
59%
21%
61% 46%
36%
66%
8% 0
18%
20
26%
40
60
80
100
HIRING INTENTIONS Business confidence can be an abstract metric to measure. However, the intention to hire additional employees and expand an organization’s headcount is generally a solid indicator of an optimistic outlook and an expectation of future growth. In 2019, nearly half of respondents to the Ottawa Business Growth Survey said they plan to recruit new employees, an increase of five percentage points over last year. At the same time, only one in 20 respondents said they planned to downsize. While hiring intentions are undoubtedly a positive indicator, it’s not clear how many respondents will be able to execute on their growth plans. As noted later in this report, businesses have consistently reported challenges in finding employees in recent years, citing it as one of their top concerns.
SECTOR SNAPSHOT:
ASSOCIATIONS Ottawa is home to hundreds of regional, national and international associations and not-for-profits – a sector that’s seeing greater experimentation with various business models in an effort to boost membership engagement and trim costs. Technology is a major driver of this shift, says OTUS Group president Richard MacNeill. “A lot of organizations are
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REDUCE NUMBER OF EMPLOYEES
5%
RECRUIT NEW EMPLOYEES
49%
KEEP EMPLOYEE LEVELS THE SAME
38%
I DON’T KNOW / NO COMMENT
9%
switching to remote or virtual offices, which doesn’t restrict your talent pool to a local geographic area,” he says. “Video conferencing, cloud file storage and accounting – it’s all about creating efficiency and making it less costly.” A recent survey of sector executives as part of the Ottawa Association Exchange found that membership fees continue to rank as the top revenue source for many organizations, with sponsorships growing in importance. Looking ahead, MacNeill says he doesn’t see any threats facing the sector on the horizon, although the
normal political cycle may cause some organizations to press pause on some of their plans. “There is a federal election coming up … so advocacy to advance the interests of their membership will be difficult,” he says. “If you’ve got money to spend on advocacy, I would suggest you save it for next year.”
RICHARD MACNEILL, PRESIDENT, OTUS GROUP
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BUSINESS OUTLOOK SECTOR SNAPSHOT:
FEDERAL PROCUREMENT Vendors large and small continue to have plenty of opportunities to sell goods and services to the federal government, even as the procurement landscape undergoes significant shifts, says Keith Parker, the president and managing director of the Proposal Centre. In recent years, there has been a major push for new government contracting vehicles to help streamline the process on both the business and government side, which has caused some confusion. “A lot of companies get caught off guard because they have never needed these (vehicles) before to do business,” Parker says. “That I understand will likely continue. It’s great once you’re on it, but you have to really be paying attention to make sure you don’t miss it.” As businesses in the sector try to catch up to the new advancements, further change and an overall slowdown is expected at the end of the year into 2020 as the federal election grows closer. “While things are humming along right now it’s difficult to say past September how things are going to look,” says Parker. “Even if the same government returns, they could have different priorities this time around.”
KEITH PARKER, PRESIDENT AND MANAGING DIRECTOR, THE PROPOSAL CENTRE
SPACE TO GROW Despite the popularity of telecommuting and other forms of remote working, most companies still operate out of traditional leased or owned commercial space. Given the significant investment of time and resources that go into relocation – as well as the multiyear commitment typically
Thinking about your organization’s commercial space, do you plan over the next five years to:
EXPAND ITS PHYSICAL FOOTPRINT BY MOVING TO A LARGER SPACE OR EXPANDING
36%
STAY THE SAME
57% DOWNSIZE ITS PHYSICAL SIZE
7% MARKET EXPECTATIONS Even the best-run businesses can face challenges if overall demand for their products or services is soft. While innovative companies can often find new ways of delivering value to customers, market conditions have a
significant impact on business confidence. In 2019, slightly more than half of all respondents said they expect market conditions to improve – the same proportion as last year.
Over the next year, do you expect the market for your business sector to ... n IMPROVE
n STAY THE SAME
n WORSEN
n I DON’T KNOW / NO COMMENT
2019
52%
33%
2018
52%
31%
2017
51%
35%
9%
6%
2016
49%
37%
7%
7%
FALL 2015
45%
34%
SPRING 2015
50%
38%
0
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required in a new commercial lease – plans for a physical expansion are another key barometer of business confidence. In 2019, more than a third of respondents said they plan to seek out larger space – up five percentage points over last year.
20
40
60
10%
5%
10%
7%
12%
9% 3%
10% 80
100
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FINANCIAL PERFORMANCE > Revenue > Net income > Access to credit
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FINANCIAL PERFORMANCE
THE TOP AND BOTTOM LINES While the outlook of business owners and executives involves looking at what’s on the horizon, confidence can also be influenced by a firm’s recent financial performance. Growing revenues and positive net income are typically what allow a company to hire new staff and make capital investments. In other cases, access to credit can fuel a firm’s expansion and allow them to achieve the scale or market readiness needed to enter their next phase of growth. More than half of respondents said their revenues increased last year. Similarly, 46 per cent of survey participants said their net income was up in their most recent fiscal year. However, the percentage of respondents who gave those positive responses was down compared to 2018. “(The decline) is something to watch, although it’s not something that’s sounding any alarm bells yet,” said Abacus Data CEO David Coletto. He noted that the rising cost of doing business, cited elsewhere in the survey as one of the top issues facing local firms, could be putting pressure on the bottom lines of respondents. Survey participants also reported that finding qualified employees remains a major challenge – something that can put upwards pressure on wages and reduce profits.
REVENUE How did your sales and/or revenue change in the last fiscal year? n INCREASED
n STAYED THE SAME
2019
n DECREASED n DON’T KNOW OR NO COMMENT
54%
23%
2018
57%
2017
22%
56%
2016
53%
FALL 2015
48%
SPRING 2015 0
20
6%
13%
8%
20%
15%
8%
25%
13%
9%
24%
55%
17%
15%
26% 40
60
13% 12%
80
6% 100
SALES FORECAST Thinking about this current fiscal year, how do you expect your revenues to change relative to your last fiscal year?
GREATER BY MORE THAN 25 PER CENT GREATER BY 21 TO 25 PER CENT
I DON’T KNOW / NO COMMENT
9%
7%
4% GREATER BY 16 TO 20 PER CENT
5%
LOWER
12%
GREATER BY 11 TO 15 PER CENT
8% ABOUT THE SAME AS LAST YEAR
GREATER BY 6 TO 10 PER CENT
13%
GREATER BY 1 TO 5 PER CENT
25%
18%
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FINANCIAL PERFORMANCE SECTOR SNAPSHOT:
CONSTRUCTION NET INCOME
A series of megaprojects around the city, coupled with a push by the federal and municipal governments to upgrade their stock of existing buildings, is helping fuel healthy demand among the capital’s construction firms, industry representatives say. John DeVries, the president of the Ottawa Construction Association, says the sector has been able to comfortably respond to the elevated market activity. “It’s not overwhelming the industry because we’re not seeing a shortage of bidders yet,” he explains. “It’s a nice, healthy demand.” DeVries says there’s been a trend among commercial, residential and institutional building owners to push for more environmentally friendly spaces and projects. Changes are also being made within the industry to help streamline work and make it more efficient. Integrated Program Delivery (IPD) is a system being implemented on more sites, which puts together teams of designers, contractors and consultants to create a collaborative workplace and eliminate the back-and-forth once construction has begun, says DeVries. “Right now, a lot of the industry is waiting for many of these city projects to begin,” he says. “We’re all hopeful that there is going to be continued growth in jobs, in confidence and in spending … which all drives construction.”
How does your net income in your most recently completed fiscal year compare to the previous year? n HIGHER
n NO CHANGE
n LOWER n I DON’T KNOW OR NO COMMENT
2019
46%
2018
51%
2017
23%
16%
48%
SPRING 2015
0
20
15%
17%
16%
22%
40
12%
20%
20%
51%
8%
17%
20%
48%
2016
23%
8%
18%
60
80
100
ACCESS TO CREDIT Compared to a year ago, is credit ... n EASIER TO ACCESS n ABOUT THE SAME n DON’T KNOW OR NO COMMENT
2019
< 4%
2018
< 6%
2017
< 5%
2016
48%
42%
20
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11%
12%
34%
39%
35%
32% 39%
11%
45%
< 5%
0
13%
51%
< 5%
SPRING 2015
14%
48%
< 5%
FALL 2015
n HARDER TO ACCESS
52%
12%
31%
40
60
80
100
JOHN DEVRIES, PRESIDENT & GM, THE OTTAWA CONSTRUCTION ASSOCIATION
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Business growth starts with a conversation.
To take your business to the next level, RBC® has dedicated teams of industry-specialized account managers who have a deep understanding of what drives your market and business model. Get our industry-specialized advice working for you.
Visit rbcroyalbank.com/commercial 18 WELCH LLP/OTTAWA BOARD OF TRADE BUSINESS GROWTH SURVEY 2019 ® / ™ Trademark(s) of Royal Bank of Canada. VPS104770 OBGS MAGAZINE 2019.indd 18
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INTERNATIONAL MARKETS > Exporting > Geographic
revenue sources
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INTERNATIONAL MARKETS
Britain
20%
United States
GLOBAL OPPORTUNITIES Even in an era of trade tensions and heightened threats of tariffs and other barriers, doing business abroad presents lucrative opportunities for many businesses. Export Development Canada argues that branching out beyond this country’s borders makes companies more productive, profitable, innovative and resilient. Citing Industry Canada data, the Crown corporation notes the top 10 per cent of Canadian exporters grew at an annual rate of more than 20 per cent between 2009 and 2011, while the top non-exporters grew at only eight per cent. EDC also notes that doing business abroad connects companies to different customers and can inspire new products or services based on those prospective markets. So where are Ottawa companies finding opportunities abroad? Given the linguistic and cultural similarities – as well as geographic proximity – it’s no surprise that many local companies are doing business south of the border. That’s followed by Eurozone countries, Britain and China.
53% Mexico
21%
Central America
14%
South America
14%
What are your most important export markets or markets where you have operations or supply chains? (Figures represent the percentage of respondents who included the market in their top five selections)
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Russia
2% Euro Zone
27% Middle East
7%
China
18%
Asia (excluding China)
11% Africa
5% Australia, New Zealand & Oceania
11% National Capital Region 74%
What are the sources of your organizationâ&#x20AC;&#x2122;s revenues?
International 4% Elsewhere in Canada 16%
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United States 6%
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LEGAL EXPERTISE THAT’S IN TUNE WITH OUR COMMUNITY. Gowling WLG has been a valued part of Ottawa’s business fabric for over a century. While we have grown into a full-service international law firm, we’ve never forgotten our roots. We are proud of our work and relationships with local organizations, and the part we play in helping them thrive – be it in our community or around the world. Find out how we can support you at gowlingwlg.com
Gowling WLG (Canada) LLP is a member of Gowling WLG, an international law firm which consists of independent and autonomous entities providing services around the world. Our structure is explained in more detail at gowlingwlg.com/legal
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POLITICS + PUBLIC POLICY > Issues and obstacles > Business priorities > Mayor Jim Watsonâ&#x20AC;&#x2122;s approval rating
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POLITICS + PUBLIC POLICY
TRANSPORTATION HEADACHES Outside of rush hour, Ottawa’s perceived lack of traffic congestion relative to other gridlocked cities has traditionally been a competitive advantage that gave residents a higher quality of life and improved business productivity. That appears to be changing. The number of respondents who say transportation and public transit service is worsening jumped significantly in 2019. “There’s a sense that getting around has gotten harder,” said Abacus Data CEO David Coletto, adding that the sharp uptick “really sticks out” among this year’s Ottawa Business Growth Survey findings. He noted that an especially harsh winter that wreaked havoc on roads, as well as multiple delays in opening Ottawa’s light-rail line, may be contributing to the negative perceptions of the city’s transportation and transit networks. COST OF DOING BUSINESS
Have the following issues improved, worsened or stayed about the same over the past year? n IMPROVED
n ABOUT THE SAME
ACCESS TO SKILLED WORKERS
12%
n DON’T KNOW
PUBLIC TRANSIT
< 4% 18%
< 3%
39%
41% 44% 41%
FEDERAL AND PROVINCIAL BUSINESS TAXES
< 1% 5% >
14%
MUNICIPAL BY-LAWS REGULATING BUSINESS ACTIVITY < 2%
< 4% 26%
27% 46%
36%
48% 24%
67%
TRANSPORTATION IN OTTAWA/GATINEAU
14%
n WORSENED
BUSINESS LICENSING / PERMITTING PROCESS AT THE CITY
< 2%
ACCESS TO CAPITAL
< 2%
< 4% 29%
37% 36%
45% 53%
48%
14% 16%
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POLITICS + PUBLIC POLICY
Please rank the top five most important issues for Ottawa businesses over the coming five years: (Figures represent the percentage of respondents who included selection in their top five responses) 1
4
77%
2
47%
6
30%
9
ATTRACTING NEW CUSTOMERS (2018 rank: 1)
ATTRACTING AND RETAINING SKILLED WORKERS (2018 rank: 2)
49%
5
33%
8
TRANSPORTATION (2018 rank: 8)
ATTRACTING MORE BUSINESSES TO OTTAWAGATINEAU (2018 rank: 4) 7
70%
3
MUNICIPAL TAXES (2018 rank: 6)
53%
CORPORATE TAXES (2018 rank: 3)
37%
ACCESS TO CAPITAL (2018 rank: 5)
EXTERNAL GLOBAL FACTORS (2018 rank: 7)
28%
ENVIRONMENTAL SUSTAINABILITY (2018 rank: 12)
JIM WATSON’S ENDURING POPULARITY As he settles into his third consecutive term as mayor, Jim Watson – a longtime figure in Ottawa municipal and provincial politics – is retaining an approval rating that’s the envy of many politicians in other jurisdictions. “Jim Watson is a clear anomaly among political leaders for how consistently he gets positive numbers,” said Abacus Data CEO David Coletto. “Give him credit – there’s a reason people generally approve of what he’s doing.” Watson’s approval rating has held strong
despite widespread disappointment that the city’s contractors have missed multiple deadlines for completing the first phase of light rail, Coletto noted. He added that the mayor “serves as a consistent source of calm” in an otherwise turbulent period that’s been marked by Premier Doug Ford’s election and precampaigning ahead of a fall federal election. “For the business community, consistency and stability is something that’s really appreciated,” Coletto said.
Do you approve or disapprove of the job Mayor Jim Watson is doing at the City of Ottawa? 2019
13%
38%
23%
15%
2018
14%
37%
26%
12%
0
20
< 5% < 6% < 5%
40
60
80
< 6% 100
n STRONGLY APPROVE n APPROVE n NEITHER APPROVE NOR DISAPPROVE n DISAPPROVE n STRONGLY DISAPPROVE n UNSURE
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Canada’s economic landscape is undergoing an unprecedented shift from a jobs economy to a skills economy. Canada’s new skills economy will give rise to a growing demand for ‘human skills’ across all job sectors and includes critical thinking, co-ordination, social perceptiveness, active listening and complex problem solving. Canadian employers are generally not prepared through hiring, training or retraining to recruit and develop the skills needed to ensure their organizations remain competitive in the digital economy. RBC is engaging the public and private sectors to further understand the difficulties facing employers and young candidates. Our efforts include RBC Future Launch, a 10-year, $500-million commitment to help Canadian youth prepare for the jobs of tomorrow. In Ottawa, RBC has helped mobilize a broad crosssection of the community, including businesses, education providers, service providers, government agencies and youth, all working collaboratively to ensure all Ottawa youth have the opportunity to build secure employment or entrepreneurship opportunities for themselves while supporting local economic development.
— MARJOLAINE HUDON, REGIONAL PRESIDENT FOR ONTARIO NORTH & EAST, RBC
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Advocating for Business, Fuelling the Future Join the most influential and independent voice for businesses in the Nation's Capital. The Board of Trade advocates for economic prosperity through Advocacy, Dialogue and Connections. We help companies of all sizes increase their visibility, raise their profile, and create new business opportunities through partnerships, networking & educational events, award recognitions, publications, and innovative business practices.
Become a member of Ottawa Board of Trade today! Contact us at membership@ottawabot.ca 613-236-3631 | www.ottawabot.ca
@ottawabot
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LOOKING AHEAD > Exit strategies > Mergers and acquisitions > Succession planning > Raising capital
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LOOKING AHEAD
It is interesting to see that over 40 per cent of respondents to the survey indicate their likely exit is via a sale of the company to an external party, with over 40 per cent planning to exit within the next three to 15 years while less than 10 per cent have a documented succession plan or exit strategy in place. Giving serious thought to succession planning and taking steps to prepare the company for a future exit event will go a long way to ensuring a smooth transaction and transition. Our team at Gowling WLG can help your company to ensure appropriate corporate documentation and shareholder structures are in place as part of your succession and transition planning.
EXIT STRATEGIES An orderly, well-timed and carefully planned exit is one of the keys to maximizing the value of a business when it’s time to move on and tackle new opportunities or transition into retirement. A majority of Ottawa Business Growth Survey respondents are thinking about this process – most frequently involving an external sale – and have even envisioned a timeline, but relatively few have formally documented their plans.
When do you plan on exiting your business?
<3 YEARS
6-10 YEARS
15+ YEARS
9%
19%
9%
3-5 YEARS
13%
Which of the following exit scenarios are you likely to pursue?
11-15 YEARS
10%
NOT PLANNING TO EXIT
24% NOT APPLICABLE/ UNSURE
16%
SALE TO A FAMILY MEMBER
OTHER
8%
7%
WINDING DOWN THE COMPANY UNSURE
11%
17%
EXTERNAL SALE
41% SALE TO YOUR MANAGEMENT TEAM
15% IPO
1% — LORRAINE MASTERSMITH, PARTNER, GOWLING WLG
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LOOKING AHEAD
Do you have a succession plan or exit strategy in place?
NOT APPLICABLE/ NOT SURE
4%
NOT EVEN THINKING ABOUT IT
9%
YES, IT IS WELL DOCUMENTED
9%
NO
31%
YES, BUT IT’S INFORMAL AT THIS STAGE
47%
MERGERS AND ACQUISITIONS Across the country, investors and advisers say they expect dealmaking activity to tick upwards in 2019. Many respondents to the Ottawa Business Growth Survey say they want to be part of that trend, either by purchasing another firm or being acquired themselves.
Do you plan to acquire another company or be acquired in the next three to five years?
YES, PLAN TO BE ACQUIRED
11%
It’s interesting to note that 60 per cent of business owners expect to exit their business in the next 15 years, yet only nine per cent of businesses have a well-documented exit strategy. Most businesses have only an informal plan, or no plan at all. A business should always have an eye on its exit strategy as that will shape how you run your business between now and then. More time should be spent to envision an exit strategy and to document it in writing. Intentional annual or biannual reviews should be conducted to monitor your progress towards achieving the vision. It’s your business. Make the most of it!
YES, PLAN TO ACQUIRE ANOTHER COMPANY
14%
NO
76% – GARTH STEELE, PARTNER, WELCH LLP
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LOOKING AHEAD SECTOR SNAPSHOT:
TECH
Ottawa’s tech sector is home to a thriving startup ecosystem, growing R&D centres and homegrown success stories that keep hiring – all reasons to cheer, says the head of the city’s lead economic development agency. “Our tech market is in really good shape,” says Michael Tremblay, the president and CEO of Invest Ottawa. “It feels to me like the mid-1990s just in terms of growth and energy.” But a lot has changed over the last 20 years. Rather than relying on a single sector such as telecom, Ottawa’s tech industry in 2019 is highly diversified. “It’s no longer about three or four disruptive tech areas, it’s about 10,000 specializations,” says Tremblay, naming autonomous vehicles as one particular field that’s drawing international attention. With so much innovation, Tremblay says he can only see the strength of the sector continuing. More and more outside tech companies are turning their sights to Ottawa as a place to grow, which can only help the city in the long term.
MICHAEL TREMBLAY, PRESIDENT AND CEO, INVEST OTTAWA
RAISING CAPITAL Some 24 Ottawa companies secured venture capital or private equity funding last year, putting the capital into the No. 4 spot nationally for total funding raised, behind Toronto, Montreal and Vancouver. While the majority of respondents in the Ottawa Business Growth Survey say they have a sufficient amount of capital, nearly one in five say they have plans to raise seven figures – or more – over the next two years.
How confident are you that you have the necessary capital required to execute your growth strategy? VERY CONFIDENT SOMEWHAT CONFIDENT
32%
NEUTRAL
24%
LESS CONFIDENT
13%
NOT CONFIDENT
5%
0
5
10
15
20
25
30
35
CASE STUDY
Smart grid startup BluWave-ai raises more than $1M in pre-seed funding A local cleantech startup is bringing the decision-making power of artificial intelligence to grids in Ottawa and around the world in an effort to optimize and reduce cities’ energy consumption. Ottawa’s BluWave-ai, founded in 2017, has raised more than $1 million in pre-seed funding for its smart-grid solution. The startup is implementing its tech locally with Hydro Ottawa, on the east coast in Prince Edward Island and overseas with one of India’s largest utilities providers. Founder and CEO Devashish Paul tells Techopia that landing the unnamed client in India, a sizeable market for energyefficiency solutions, opened the “big angel investment floodgate” earlier this
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26%
year. Among those investors is Montreal’s Ecofuel, an initiative of the cleantech fund Cycle Capital, which invests in companies such as Agrisoma Biosciences and GaN Systems in the National Capital Region. While Paul mentions India, California, China and sub-Saharan Africa as a few of the international markets where he sees strong potential for BluWave’s energy management solution, he’s adamant that he’ll be growing the company in Ottawa. “We feel that there’s the right talent in Ottawa with all of the networking, cloud computing and software to build the biggest renewable energy AI company in North America and do it right here,” he says. WWW.OTTAWABUSINESSSURVEYREPORT.CA
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LOOKING AHEAD SECTOR SNAPSHOT:
COMMERCIAL REAL ESTATE
How much capital do you plan to raise (debt or equity) in the next 24 months?
$1M-$5M
11% $5M-$25M
5% $0-$1M
82% GREATER THAN $25M
2%
CASE STUDY
Ottawa’s Assent Compliance leads Canada’s largest VC rounds in 2018 Assent Compliance’s enormous series-C round last fall was the largest such venture capital raise from a Canadian company in 2018, according to the Canadian Venture Capital and Private Equity Association. The Ottawa SaaS firm, which develops software to help companies meet compliance and regulatory demands, raised $160 million last WWW.OTTAWABUSINESSSURVEYREPORT.CA
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October in a round led by U.S.-based Warburg Pincus. The Canadian Venture Capital and Private Equity Association puts Assent at the top of the country’s 15 “mega deals” last year, surpassing Montrealbased Hopper’s $129-million round as well as large raises from Clearbanc, Ritual and Ecobee.
High demand, low vacancy and healthy rental rates are the hallmarks of Ottawa’s commercial leasing market in 2019, according to one of the city’s top brokers. “Our commercial real estate market, both office and industrial, is firing on all cylinders,” says Shawn Hamilton, a senior vicepresident at CBRE and managing director of the firm’s Ottawa office. Ottawa’s citywide office vacancy rate stood at 7.5 per cent at the end of the first quarter, down half a percentage point from the end of 2018, according to CBRE. Demand is particularly strong for premium space, with the downtown class-A vacancy rate dropping by 140 basis points since early 2017 to 4.4 per cent. The industrial market is even tighter, with an availability rate of 2.2 per cent. “From a commercial perspective, the numbers have ... everything to do with people and companies wanting to attract, engage and retain talent,” Hamilton says. “Companies are coming here to grow.”
SHAWN HAMILTON, SENIOR VICEPRESIDENT AND MANAGING DIRECTOR, CBRE OTTAWA
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RESPONDENT PROFILES
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RESPONDENT PROFILES SECTOR SNAPSHOT:
HOSPITALITY Even with the addition of more than 1,000 extra rooms to the city’s stock in 2018, the overall occupancy rate at local hotels last year was still a respectable 73 per cent, according to commercial real estate firm CBRE, down two percentage points from the recordbreaking Canada 150 year of 2017. “We’ve had to absorb that new inventory, which means our occupancy has been fairly flat,” says Steve Ball, president of the Ottawa Gatineau Hotel Association. “Our average room rate is up a few points, though, so the rest of the year is looking pretty solid.” One of the major challenges facing the sector is the rising competition from Airbnb and similar platforms, which Ball says could have an impact on the sector’s performance in 2020. The City of Ottawa is currently reviewing its regulations on short-term rental properties. Stricter rules could bring more guests into the city’s hotels. “If this happens, I think you’ll see a substantial growth in the hotel sector next year,” says Ball.
WHO TOOK THE OTTAWA BUSINESS GROWTH SURVEY? Some 776 business leaders from across the National Capital Region participated in the 2019 Ottawa Business Growth Survey, representing all of the area’s major economic sectors. More than three-quarters of respondents are executives from their respective organization, with an additional 16 per cent of survey participants holding management positions. Survey respondents hailed from all geographic areas of the region and included a mix of recently launched companies and well-established firms that ranged from owner/operator enterprises to companies with more than 150 employees. The Ottawa Business Growth Survey was administered online from March 11 to April 21 by Abacus Data, a leading Ottawa-based research and strategy firm. Respondents were recruited by email and website intercept by the Ottawa Board of Trade, the Ottawa Business Journal and 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.
What is your position in the business?
MANAGER 16%
PRESIDENT / CEO AND OWNER 54%
STEVE BALL, PRESIDENT, OTTAWA GATINEAU HOTEL ASSOCIATION
OTHER 11%
PARTNER 7%
VICE-PRESIDENT / DIRECTOR 5% VICE-PRESIDENT 5% PRESIDENT/CEO (NON-OWNER) 4%
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RESPONDENT PROFILES SECTOR SNAPSHOT:
HOMEBUILDING
Is your organization a…
GOVERNMENT DEPARTMENT 1%
GOVERNMENT AGENCY 1% CROWN CORPORATION 1%
OTHER 3% PRIVATE COMPANY 81%
PUBLIC COMPANY 6%
NOT-FOR-PROFIT 8%
How many employees does your organization have?
OWNER /OPERATOR 12% 1-5 EMPLOYEES 23%
6-10 EMPLOYEES 16% 11-20 EMPLOYEES 14%
21-50 EMPLOYEES 12%
51-75 EMPLOYEES 4%
76- 149 EMPLOYEES 7%
150+ EMPLOYEES 13%
0
5
10
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15
20
25
As Ottawa’s population continues to increase, so too does the strength of the local homebuilding sector. The industry kicked off construction of more than 7,400 homes in 2017 and 2018 – some 1,500 units above the 10-year average. While the increase in construction is a sign of growth in Ottawa, it also has a positive impact on the job market, says Jason Burggraaf, the executive director of the Greater Ottawa Home Builders’ Association. “The residential construction industry alone supplies 41,000 jobs across the region and contributes $5 billion in economic activity,” he says. “It’s a significant player in the region’s economy overall, and the health of the industry is extremely important.” Burggraaf says builders across the city are diversifying the types of homes being constructed, resulting in more even levels of condo, townhome and single-family dwelling construction and increasing consumer choice. He says one of the biggest issues facing the sector is ensuring it has a sufficient number of qualified workers who can meet the market’s demands. “Our one concern is the skilled trades availability,” Burggraaf says. “While the desire and the numbers really demand that we hit those high numbers of houses, we might be constrained by the sheer lack of labour.” JASON BURGGRAAF, EXECUTIVE DIRECTOR, GOHBA
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RESPONDENT PROFILES SECTOR SNAPSHOT:
RESIDENTIAL REAL ESTATE A limited supply of properties for sale, coupled with healthy demand from a growing population, is weighing on Ottawa’s housing market, says Dwight Delahunt, the president of the Ottawa Real Estate Board. But despite the inventory challenges, the sector is continuing to operate at or near all-time highs. Over the first four months of 2019, Ottawa realtors sold some 5,368 properties, up nearly one per cent over the same period in 2018. While the lack of inventory has driven up overall prices to an average of nearly $500,000 in April, the majority of homes are selling at or slightly below asking price, says Delahunt. One of the big local real estate stories has been the turnaround in the condo market. While there was a surplus of units on the market only a few years ago, the lingering inventory is quickly being absorbed. Going forward, Delahunt predicts persistent supply challenges, which will continue to put upwards pressure on prices – something he believes will increasingly be on the minds of politicians and policymakers. “This being an election year, housing is going to be an issue,” he says. “We are going to be watching closely to see which party comes to the table with a wellthought-out national housing strategy.”
What industry does your organization operate in? RETAIL 13% CONSULTING 10% HOSPITALITY 9% TECHNOLOGY 8% CONSTRUCTION 8% REAL ESTATE 6% HEALTH CARE 5% NOT-FOR-PROFIT / ASSOCIATION 4% LEGAL 4% BANKING AND FINANCE 3% MANUFACTURING 3% COMMUNICATIONS 2% ARTS 2% EDUCATION 2% ACCOUNTING 2% EMPLOYMENT 1% TRAVEL 1% AEROSPACE 1% OTHER 15%
0
3
6
9
12
15
DWIGHT DELAHUNT, PRESIDENT, OTTAWA REAL ESTATE BOARD
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RESPONDENT PROFILES SECTOR SNAPSHOT:
RETAIL
How many years has your company been in business? 10+ YEARS 5 TO 10 YEARS
LESS THAN 5 YEARS
67%
15%
17%
Two out of every five respondents self-identified as belonging to one of Ottawa’s business improvement areas (BIAs), representing virtually all of the city’s geographic communities. Of those, here’s the breakdown: WELLINGTON WEST 12% BYWARD MARKET 12% WESTBORO VILLAGE 10% VANIER (QUARTIER VANIER) 8% CARP ROAD CORRIDOR 7% PRESTON STREET 7% MANOTICK 6% KANATA NORTH 6% GLEBE 6% BANK STREET 5% BARRHAVEN 5% HEART OF ORLEANS 4% SPARKS STREET 4% DOWNTOWN RIDEAU 2% OTHER 2% BELLS CORNERS 1%
Ottawa’s retail sector appears to have rebounded from the highly publicized struggles of several major big-box chains that left large blocks of space sitting empty. Vacancy rates across the region are around five per cent, and with recent projects underway to replace the space formerly occupied by the likes of Target, Sears and Future Shop, there seems to be a light at the end of the tunnel, says Keith Reading, director of research at Morguard. “Generally I think we’re doing pretty good, considering the losses,” he says. “There’s been a couple bumps in the road, but I think the outlook is fairly good.” As more shoppers turn to e-commerce, retail landlords are looking at new ways to attract consumers to shopping centres and make more creative use of their land holdings. Some are redeveloping their properties to include residential space. Elsewhere, traditional food courts are being remodelled to offer healthier and more upscale choices. “The industry realizes we’re going to see more store closures, so owners are looking at how they can remain profitable and relevant,” says Reading. He notes that Ottawa’s economy continues to perform strongly, with average household income sitting close to $100,000. That’s good news for retailers. “The next year will be a period of change, but retail is here to stay,” Reading says.
KANATA CENTRAL 1%
KEITH READING, DIRECTOR OF RESEARCH, MORGUARD
SOMERSET VILLAGE 1% SOMERSET STREET CHINATOWN 1% 0
2
4
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6
8
10
12
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INDEX
OTTAWA BUSINESS GROWTH SURVEY QUESTIONS AT A GLANCE CITYBUILDING 7 8
Rank the top infrastructure projects that will have the greatest positive impact on the city’s economy Would you move your business or where you live within the next five years to be closer to a light-rail station?
BUSINESS OUTLOOK 13
Compared to a year ago, has your confidence in the local economy improved, worsened or stayed the same?
13 Over the next year, do you expect the market for your business sector to improve, worsen or stay the same? 14 Thinking about your organization’s commercial space, over the next five years do you plan to expand, downsize or stay put? 14 In the next year, do you plan to hire more employees, keep your staff numbers stable or reduce your headcount?
FINANCIAL PERFORMANCE How did your sales and/or revenue change in the last fiscal year? Will your revenues be greater, lower or about the same this year compared to last year? How does your net income in your most recently completed fiscal year compare to the previous year? Compared to a year ago, is credit harder, easier or about the same to access?
16 16 17 17
INTERNATIONAL MARKETS What are your most important export markets or markets where you have operations or supply chains? What are the sources of your organization’s revenue, by geographic region?
20 20
POLITICS AND PUBLIC POLICY Have the following business issues improved, worsened or stayed the same over the past year? What are the most important issues for Ottawa businesses over the coming five years? Do you approve or disapprove of the job the mayor?
24 25 25
EXIT STRATEGIES AND SUCCESSION PLANNING When do you plan on exiting your business? What exit scenario are you likely to pursue? Do you have a succession plan or exit strategy in place? Do you plan to acquire another company or be acquired in the next three to five years? Do you have the necessary capital required to execute your growth strategy? How much capital do you plan to raise in the next 24 months?
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