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The collective strength of the Ontario Chamber network to advocate for businesses during one of the most turbulent economic junctions in Canadian history became a unifying theme at the recent Ontario Chamber of Chamber of Commerce AGM in Windsor.

The event – held April 24-26 and hosted by the Windsor Essex, Amherstburg and Leamington District Chambers of Commerce - brought together approximately 150 delegates representing 60 chambers provincewide to network, hear from economic leaders, and to debate policies that can create evidence-based solutions to benefit the business community and province’s economic growth.

“The annual AGM is a great opportunity for Chamber leaders to not only share ideas and best practices, but to find ways to navigate current economic upheavals created by U.S. President Donald Trump’s continued trade threats,” says Cambridge Chamber of Commerce President and CEO Greg Durocher, who attend the AGM accompanied by Board Chair Murray Smith. “Having a unified voice is pivotal, especially now, in helping to create the certainty businesses need.”

Drop in business confidence

It was a sentiment echoed by Ontario Chamber of Commerce President and CEO Daniel Tisch during his opening remarks at the conference, entitled Bridges, Not Barriers. 

He spoke about the immense stress business leaders are under due to staffing concerns and rising prices and referenced the OCC’s ninth annual Ontario Economic Report (OER) released earlier this year which showed a significant rise in business confidence over the course of 2024, climbing from a historic low of 13 per cent to 26 per cent by year’s end.

However, despite this improvement, confidence remains historically low and fragile, with 48 per cent of businesses expressing a lack of confidence in the economy. When U.S. tariff threats are on the table, business confidence dropped dramatically to just 15 per cent, almost erasing the last year’s gains, according to the OCC’s separate tariff survey in early February.

Tisch said business leaders are looking for assistance and guidance, noting the Chamber network is the best organization to take on that leadership role.

Trade clarity will come

“We can provide that platform and provide the clarity and collaboration and continuity they need to be successful, and that they deserve because we need them to help build our province and to create jobs and economic opportunity and the growth that we all want,” he said, adding Canada will eventually achieve some level of clarity when it comes to U.S. trade. “We don’t exactly know when, but we know that it’s going to be fragile and as long as the president (Trump) is in office there is no guarantee he will respect any (trade) deal that he signs because he didn’t respect the last one. We can’t put all our eggs in that basket anymore and have to diversify as a trading nation.”

Competitiveness was the underlying theme of two sessions at the AGM featuring a panel of experts, including Windsor Essex Chamber of Commerce President and CEO Ryan Donally, who spoke about the long-standing trading relationship between the U.S. and Canada. It was noted that 25% (approximately $320 to $390 million) of all trade between the two countries crosses the Ambassador Bridge daily.

Long-term strategies needed

“You can’t unscramble this egg since cross-border trade has been around for at least a century,” he said, adding Trump’s tariffs will cost thousands of jobs on both sides of the border before stressing the need for trade diversification and long-term strategies.

It was a sentiment shared by Luke Polcyn, Senior Executive, Development and Economic Transformation for the City of Detroit, who outlined the vibrant trading relationship between the two cities and the opportunity for cross-border partnerships in terms of innovation assets.

“This disruption (tariffs) is being done in our name but ask any SMEs on the U.S. side and they would tell you the system could be tweaked but not blown up,” he said.

A second panel of experts which focused on Ontario’s ‘competitive edge’ offered insights on how key sectors can navigate policy changes, and how the province can build on its future competitiveness.

“Our responsibility at the moment is to think long-term,” said panelist Jaipaul Massey-Singh, CEO of the Brampton Board of Trade, adding more could be done to commercialize innovation. “Let’s not let this crisis go to waste. It’s not all doom and gloom but a wakeup call.”

He stressed the need to hold decision-makers accountable to push for change, an opinion shared by a fellow panelist, Sueling Ching, President and CEO of the Ottawa Board of Trade.

“We must demand a continued collaboration of strategies,” she said. “Our new normal is change.”

Policies will help businesses

In effort to make changes, this year 36 policies were approved by the delegates covering a wide variety of issues that can directly affect businesses. These included  policies relating to education, healthcare, homelessness, mental health and addictions, transportation, infrastructure, and manufacturing. These policies now become entrenched in the Ontario Chamber of Commerce’s policy ‘play book’ to guide its ongoing advocacy work at Queen’s Park.

The Cambridge Chamber co-sponsored three policies which received support from delegates:

Create and Implement a Provincial Strategy to Address Homelessness, Mental Health and Addictions

• This policy outlines several recommendations for the Province, including ensuring social services outreach teams are available as partners to police throughout Ontario to support marginalized individuals and improve province wide data collection and access for frontline services to enable better decision-making. Also, prioritize funding, program, and policy changes to better support those with complex mental health conditions that may pose a risk to themselves and others, and incentivize municipalities to develop more low barrier supportive housing solutions.

Cutting Administration for Ontario Physicians

• This policy sets out several recommendations, including encouraging the Province to collaborate with physicians, healthcare administrators and stakeholders to set key performance indicators for administrative workloads and set targets based on industry benchmarks to ensure improvements in physician efficiency. It also calls for the prioritization of secure digital technology to reduce administrative burdens, and collaboration with the Ontario Medical Association and other healthcare organizations to implement proven strategies that reduce physicians’ workloads.

Ontario Government Assistance on Employment Land Assembly

• This policy calls for the Province to financially assist municipalities with the purchase of land for major industrial and economic development projects. It also recommends funding support be provided for necessary infrastructure, such as roads, utilities, and servicing, to enhance the viability of potential employment lands to attract investors. As well, it recommends the need for regional partnerships and engagement with the private sector to optimize both existing and new employment land uses to ensure the land assembly efforts integrate with broader economic strategies. 

The uncertainty surrounding trade policies and the potential for sustained tariffs have already begun to erode business confidence in Ontario. 

A survey conducted in February by the Ontario Chamber of Commerce (OCC) has revealed that more than 80% of businesses believe U.S. tariffs are clearly impacting confidence in Ontario’s economy. 

Coupled with the results of the OCC’s 2025 Ontario Economic Report released last month which revealed that business confidence had risen from a historic low of 13% to only 26% in 2024, Canada’s economy remains in a precarious position in wake of U.S President Donald Trump’s continued tariffs attacks.

“The problem is we have Trump, a 78-year-old man trying to run a country in the same manner as it would have been run in 1968,” says Cambridge Chamber of Commerce President and CEO Greg Durocher. “But that country doesn’t exist anymore.”

He notes Trump’s continued claim that NATFA (North American Free Trade Agreement) resulted in the closure of 90,000 plants and factories in the U.S. is an exaggeration as well as touting that introducing exorbitant tariffs will eliminate the need for income tax.

Many industries at risk

“It’s literally impossible for that to happen,” says Greg, adding revenue from tariffs would equate to about 2% of the U.S. budget. “His whole end game centres on minerals, considering all he talks about is titanium and lithium from Ukraine. There’s no question about it.”

But in the wake of this pursuit, experts agree the impact of sustained tariffs will hit Canada hard.

The manufacturing sector stands at the forefront of potential adverse effects due to its substantial contribution to Ontario's economy and its heavy reliance on U.S. markets.

The automotive industry, a cornerstone of Ontario's manufacturing base, is especially vulnerable. Tariffs could render Canadian auto parts and vehicles less competitive, leading U.S. companies to seek alternative suppliers. This shift threatens to result in decreased production, layoffs, and a contraction within the sector. 

Beyond automotive manufacturing, other industries such as steel and aluminum production are also at risk. 

In retaliation to the U.S. tariffs, the federal government has already announced a $155 billion tariff package targeting various U.S. goods. The first phase included 25% tariffs on $30 billion worth of U.S. imports, confirmed March 4, encompassing products like orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper.

An additional list targeting $125 billion worth of U.S. goods is under consideration on products such as electric vehicles, trucks and buses, certain fruits and vegetables, aerospace products, beef, pork, and dairy. 

Businesses ready to adapt

While these countermeasures aim to protect Canadian interests, they also risk escalating trade tensions, potentially leading to a trade war that could further destabilize Ontario's economy.

The results of the OCC tariffs survey reflect these concerns considering 77% of the 600 respondents said they expect U.S. tariffs will negatively impact their business, while slightly fewer (74%) believe that Canadian tariffs will have a negative impact.

However, when it comes to adapting to U.S. tariffs, approximately half (52%) of the respondents remain confident in their businesses ability to do so, something that doesn’t surprise Greg.

“When Canadian entrepreneurs are pushed, they become very structured and organized and say if our only option is to branch out and look elsewhere, then we're prepared to do that,” he says, adding having 52% of business owners prepared to seek other opportunities and avenues is a positive sign. “It just demonstrates that the structure of the businesses in Canada are probably more resilient than they are anywhere else, even compared to businesses in the U.S. They’re not relying on Donald Trump when it comes to changing his mind, they're relying more on themselves.”

Key findings of the OCC tariffs survey

The OCC conducted an online survey from Feb. 7-23 in co-ordination with local Chambers and Boards of Trade

Business confidence

• 60% of respondents do not currently feel confident in Ontario’s economic outlook, with nearly a quarter indicating they are not at all confident (24%).
• 88% of respondents indicated the U.S. tariffs are negatively impacting Ontario’s economy. In fact, 51% said that U.S. tariffs will have a significant negative impact on their confidence in the province’s economy.

 Business impacts of U.S. tariffs

• 77% expect U.S. tariffs on Canadian goods will negatively impact their businesses, while 74% expect Canadian tariffs will also be negative for them.
• 26% are expecting decreases sales/revenue and/or increased costs, while 23% expect increased costs of raw materials.  About 21% expect changes in customer demand because of tariffs.

 Adapting business to U.S. tariffs

• 52% of responding businesses are confident they can adapt with ongoing trade tensions between Canada and the U.S.
• 35% of businesses say they are diversifying their suppliers or considering it while 24% are considering a price increase. Approximately 84% said they are not looking to relocate any part of their business operations due to U.S. tariffs.
• 36% of respondents are anticipating a shift in market focus, while 31% expect innovations in products/services in their industry.
• 48% of respondents would welcome information and guidance, or advocacy when it comes to dealing with U.S. tariffs, while 41% would welcome financial assistance.

Click here to read survey results.

The high cost of living, inflation, housing affordability, and rising operational costs top the lists of concerns for Ontario businesses, according to the Ontario Chamber of Commerce’s (OCC) most recent Ontario Economic Report (OER). 

The report shows a significant rise in business confidence over the course of 2024, climbing from a historic low of 13% to 26% by year’s end. Despite this improvement, confidence remains historically low and fragile, with 48% of businesses expressing a lack of confidence in the economy. Affordability and the cost of living continue to be the most pressing concerns for businesses.

The survey, conducted between October 15 and December 2, 2024, gathered insights from 1,714 respondents representing a diverse range of industries, regions, and organizations.

The results show that when U.S. tariff threats are on the table, business confidence drops dramatically to just 15%, almost erasing the last year’s gains, according to the OCC’s separate tariff survey in early February. This recent research also shows that with tariffs in play, six in ten (60%) business decision makers would lack confidence in Ontario’s economic outlook.

“I may not use the word fragile describing the confidence level and instead use the word tempered,” says Cambridge Chamber of Commerce President and CEO Greg Durocher. “People's optimism for the future of business in the short term is tempered by the impact of Trump’s tariffs. I think most people in business realize that the impact of any decision is probably going to be short term. Whether or not tariffs are long term isn't the issue, it’s the impact of tariffs. So, after a period time, the marketplace settles down and people get used to whatever is the new reality.”

Ontario’s economic outlook varies

Confidence in Ontario’s economic outlook varies significantly across industries, with the information and cultural industries sector reporting the lowest level of optimism at just 17%.  Businesses in this sector cite high operational costs, shifting consumer behaviour, declining advertising revenues, and mounting pressures from technological disruption, global competition, and regulatory challenges as key drivers of their pessimism.

The retail (18%), non-profit (20%), utilities (21%), and accommodation and food services (22%) sectors follow closely, reflecting the impact of declining consumer spending amid heightened cost-of-living pressures.

The agriculture sector, while showing a slight improvement over last year, also remains among the least confident sectors (22%). Concerns in this sector centre on extreme weather events, trade and supply chain barriers, and growing labour gaps and succession planning challenges as a significant portion of the workforce approaches retirement.

By contrast, confidence is strongest in the mining (56%), finance and insurance (40%), and administrative and waste management services (40%) sectors. This could be explained by the strong demand for critical minerals supported by Ontario’s Critical Minerals Strategy, rising sustainability initiatives the finance sector’s ongoing resilience, and growth driven by fintech advancements. These sectors demonstrate adaptability and the ability to capitalize on emerging opportunities.

Survey respondents remain optimistic

Regionally, most of Ontario’s regions outside the GTA saw a significant reduction in confidence compared to the previous year.

Confidence is lowest in Stratford-Bruce Peninsula (19%), Northeast Ontario (21%), and the Greater Ottawa Area (21%), where in addition to concerns surrounding high costs and housing affordability, businesses are disproportionately sensitive to government policies and investments and have suffered more extreme weather events than other regions.

Confidence is highest in the Greater London Area (34%), a significant rebound from last year (9%). This resurgence is likely fueled by strong consumer demand, and domestic manufacturing capacity and supply chains, including the announcement of the Volkswagen EV battery plant in St. Thomas.

Despite the challenges, respondents report relative optimism about their own business growth prospects. Nearly half (49%) express confidence in their own future, citing factors such as strong consumer demand, innovation, and improved inflation management, something that doesn’t surprise Greg.

“I think that you'll find that there's going to be a growth and optimism because many sectors in Canada are going to strengthen as a result,” he says. “We’ve never been the ‘buy Canadian’ kind of a nation and the U.S. has always had buy American programs in place because we’ve always understood we were a player in the global market.”

He says there are initiatives created by the Provincial and Federal governments to encourage Canadian businesses to look at other, more reliable markets, rather than depending on the American market.

European Union agreement key

“Why we perceive the U.S. market to be unreliable right now is because anything that the American government does that impacts the trade with their nation is exponential in our case because 80 per cent of our GDP goes to the United States,” says Greg. “So, we're vulnerable to every whim of the U.S. government. For us to get more reliable sources, we need to diversify so we need to have relationships in the European Union.”

He notes the Canada-European Union Comprehensive Economic and Trade Agreement, which Canada signed in the fall of 2016, has been underutilized. 

“I think it stands to reason that we have not served ourselves well by not really looking seriously at the European Union for economic trade,” says Greg, noting this happened primarily because of our expectation the U.S. would always remain a reliable trading partner.

“We need to understand what the reality of this is going to be going forward and whether we do get aggressive when it comes to find other trading partners.  And if Canadians continue to buy Canadian that will really impact the U.S. exponentially because we do consume a lot of American products.”

Click here to read the report.

Report highlights: 

• Business confidence in Ontario’s economy has doubled in the past year, rising from 13% to 26%, but a majority of respondents (48%) lack confidence in the economy. 
• High costs remain the top concern for businesses, with 78% citing the cost of living, followed by inflation (62%), housing affordability (57%), and rising operational costs (51%).
• Simplifying or reducing business taxes (42%) is the most frequently cited policy solution to improve economic conditions, followed by affordable housing (32%), health system capacity (30%) and workforce development to solve labour shortages (29%).
• While businesses recognize the economic importance of technology adoption, environmental sustainability, diversity and inclusion and Indigenous reconciliation, businesses report a need for support and guidance in seizing these opportunities.
• Businesses report being ill-equipped to support workers and communities through mental health and addictions challenges. For example, while 71% of businesses recognize the importance of mental health and well-being to their success, only 41% have formal mental health strategies.
• Business leaders are confident in their ability to adapt to ongoing trade tensions between the U.S. and Canada with nearly half (48%) reporting confidence, while 32% are neutral and only 15% expressing a lack of confidence. 
• Ontario’s post-pandemic recovery faces significant headwinds, including potential U.S. tariff threats, geopolitical instability, lagging productivity, affordability challenges, and rising unemployment.

While the recent 30-day postponement of U.S. President Donald Trump’s tariffs and Canada’s retaliatory measures came as welcomed news to businesses, the lingering presence of these threats remain prompting the Chamber network to act using a variety of tactics, including advocacy, negotiation, education and promoting partnerships.

Trump’s demand for 25 per cent blanket tariffs on all Canadian goods, with the exception of a 10 per cent tariff on Canadian energy, and Canada’s proposed retaliatory tariffs on $155 billion of U.S. goods, has sent economic shockwaves through both nations prompting calls for action on both sides of the border.

To clearly map out the vital importance of the trading relationship between the two countries and the risks businesses face, the Canadian Chamber of Commerce’s Business Data Lab has introduced the Canada-U.S. Trade Tracker —a new tool designed to illustrate the ties between the two economies. It notes that $3.6 billion in goods crosses the Canada-U.S. border daily, generating a $1.3 trillion annual trade relationship.

"A 30-day delay means more time for Canadian businesses and governments to drive home the point that tariffs make no sense between the two closest allies the world has ever known,” said Candace Laing, President and CEO, Canadian Chamber of Commerce, in a release. “The Canadian Chamber, our network and businesses across the country will spend every day of it fighting hard to secure this historic, robust trading relationship. Raising the cost of living for Americans and Canadians with these taxes is the wrong move. Canada and the U.S. make things together, and we should in fact be building on that.”

Call to dismantle interprovincial trade barriers

It is a sentiment echoed by her colleagues at the Ontario Chamber of Commerce who have rallied their members, which includes the Cambridge Chamber, in a show of unity and strength and targeted actions including supporting a unified call for Canadian premiers to quickly dismantle interprovincial trade barriers and the creation of a business and trade leadership coalition.

Called the Ontario Business & Trade Leadership Coalition (OBTLC), it aims to unit leaders from key trade-dependent sectors to champion business-driven solutions, advocate for effective government policies, and solidify Ontario’s position as a global leader in trade.

“President Trump has claimed the U.S. doesn’t need Canada – but we are here to show just how invaluable we are. Ontario businesses are stepping up to safeguard our economy and reinforce our global competitiveness,” said Daniel Tisch, President and CEO of the Ontario Chamber of Commerce, in a release. “The Ontario Business & Trade Leadership Coalition represents a united response – a coalition of industry leaders committed to resilience, collaboration, and growth.”

BestWR brings business groups together

But the fight to ward off economic turmoil caused by these tariff threats has also been ramped up locally, says Cambridge Chamber of Commerce President and CEO Greg Durocher, through the revival of a unique partnership created during the pandemic to assist businesses.

“We created the Business Economic Support Team of Waterloo Region (BestWR) during COIVD-19 consisting of organizations that are fundamentally engaged in the economic activities through business in the region and have brought it back as a support mechanism for local businesses with respect to trade,” he explains. “It was created during the pandemic, but this is now really about a united force of business organizations helping local businesses navigate these turbulent trade waters.”

Besides the Cambridge and Greater Kitchener Waterloo Chambers, BestWR also includes Waterloo EDC, Communitech and Explore Waterloo Region.

“We are engaged right now with regional municipalities to create opportunities whereby we can offer a support role in helping local businesses find local or Canadian suppliers, or to expose local businesses to the products they currently manufacture or sell and may be able to find Canadian customers for,” says Greg, noting BestWR also has strong federal and provincial connections which they will use to assist businesses.

“We have the insight to be able to tap into key levers within provincial government and within the federal government to have input on what potential supports those governments may need to provide businesses to keep them moving through this turmoil.”

Ask the Expert returns

As a further measure to assist, both the Cambridge and KW Chambers have revived their online tool 'Ask the Expert'.

These weekly Zoom calls - created during the pandemic to provide business leaders with current information – will now provide an opportunity for manufacturers and businesses in the region who export to the U.S. to ask questions.

“We will invite various experts to take part in the one-hour call, and hopefully get some answers to their questions and help them keep their business humming along and doing the things they need to do to support their employees,” says Greg.

'Ask the Expert' will take place every Thursday, between 9-10 a.m.

“This all about businesses,” he says. “And how do we navigate the turbulent challenges ahead and make it a win for Canadian businesses.”

The Chambers have also revamped the chambercheck website (which offered timely resources for businesses during the pandemic) to provide a growing list of trade-related resources to inform and assist businesses.

Reasons for businesses to remain confident and optimistic:

Economic Resilience

Canadian businesses have demonstrated remarkable resilience in the face of past economic challenges. Our diverse economy and strong trade relationships beyond the United States provide a buffer against potential disruptions.

United Response

The Canadian government, provincial leaders, and business organizations like your local Chamber of Commerce are presenting a united front in response to this threat. This co-ordinated approach strengthens our negotiating position and demonstrates our commitment to protecting Canadian interests.

Potential for Internal Growth

For years the Chamber network has been encouraging the government of Canada to remove interprovincial trade barriers and unlock the economic prosperity lying dormant in these archaic policies. This situation presents an opportunity to address long-standing interprovincial trade barriers and by removing them boost Canada's economy by up to $200 billion per year, potentially offsetting the impact of U.S. tariffs.

Mutual Economic Interests

It's important to remember that the proposed tariffs would also significantly harm the U.S. economy. American businesses and consumers would face higher costs and reduced competitiveness, which could lead to pressure on the U.S. administration to reconsider this approach. 

Time for Preparation

With the proposed tariffs not set to take effect until at least March 1, there is time for diplomatic efforts and for businesses to prepare contingency plans as we work our business contacts and channels to influence key stakeholders in the U.S.

Leveraging Canadian Assets

Canada continues to highlight its valuable assets that are strategically important to the U.S., including:

• Energy resources
• Critical minerals
• Nuclear power capabilities
• AI research excellence
• Lumber and building materials
• Automotive
• Agriculture

By emphasizing these assets, Canada is demonstrating that doing business with us is not just beneficial but strategically smarter than alternatives.

Government Support

The Canadian government has a track record of supporting businesses during trade disputes. We can expect measures to be put in place to assist affected industries if the tariffs are implemented.

The following column by Cambridge Chamber President and CEO Greg Durocher appears in the winter edition of our INSIGHT Magazine

There’s a chance we might be panicking over nothing after Donald Trump was again elected this past fall as President of the United States, defying political norms in a way few others have.

Despite being a convicted felon—yes, by a jury of his peers, not a partisan judge—Trump secured his return to the highest office in the land, with a staggering 34 convictions under his belt. His campaign rhetoric was, as always, polarizing and often crossed the line of decency. 

Politics has clearly changed since there was a time when even a fraction of Trump's controversies would have ended a political career. Yet here we are. Some Canadians celebrated his victory, but it perplexes me why anyone north of the border would since he has demonstrated little regard for Canada, dismissing us as an afterthought despite our deep economic ties.

The truth is America’s prosperity is intrinsically linked to our resources and partnership.

Canada: An Indispensable Ally

Consider this: 60% of the crude oil the U.S. consumes comes from Canada. Saskatchewan supplies uranium, which is essential for energy production and national security, and potash essential for the agriculture industry. Quebec powers the northeastern United States with hydroelectricity. Alberta’s natural gas and Canada’s aluminum and steel exports are cornerstones of U.S. infrastructure.

But what would happen if we turned off the taps? A trade war would hurt us both, but Canada’s contribution to the U.S. economy is undeniable. Trump’s focus should be on challenges like China and Russia, not antagonizing U.S. allies.

Revisiting NAFTA and Trade Tactics

However, his threats are nothing new since we’ve seen this playbook before. In 2016, Trump declared NAFTA (North American Free Trade Agreement) dead, demanding a "fair deal." After much posturing, the agreement was merely updated—something long overdue. Trump called it a victory, and his supporters cheered him on, but the changes were only modest at best.

Similarly, his famous promise to build a wall funded by Mexico resulted in just 732 km of construction—most of which replaced existing barriers. Mexico, of course, didn’t pay a dime and some of the "new" wall even deteriorated quickly, bogged down by allegations of corruption among Trump’s staff.

The Reality of Trump’s First Term

Let’s be honest—Trump’s first term was marked by unfulfilled promises and many controversies. His pandemic response was completely disastrous, with state governors openly criticizing his lack of leadership. Who could forget his infamous suggestion to inject bleach as a COVID-19 treatment? Why would a person even suggest that? Trump signed agreements that drove up gas prices, contributing to inflation.

Running a country is vastly different from running a private business, and Trump’s approach often revealed his lack of governance expertise.

What’s Next?

His 25% tariff plan threat on Canadian goods are likely bluster—an opening gambit to pressure Canada and Mexico into renegotiating trade agreements. It really is a strategy very reminiscent of his NAFTA theatrics.

In the end, we’ll likely see a slightly revised deal that Trump will tout as another one of his "wins." Of course, his base will applaud, despite little substantial change.

Canada’s Challenge

For Canadians, Trump’s presidency is very concerning since his leadership style— always chaotic and self-serving—offers no real benefit to Canada. Therefore, we must brace ourselves for uncertainty and prepare to protect our interests.

Meanwhile, south of the border, Americans will face the consequences of his polarizing and often ineffective leadership.

In the end, Trump’s bravado may have won temporary support from his base, but we must remember it’s critical to separate rhetoric from results. As the old saying goes, “Be careful what you wish for—you just might get it.”

The small Canadian businesses with high-growth potential and expectations might not be the ones you have in mind, says a new report from the Canadian Chamber of Commerce’s Business Data Lab (BDL).

The report, entitled Scaling Success: The Characteristics of High-Growth Small Businesses in Canada, shows that while many Canadians might think of the tech sector when thinking of firms with high-growth potential and expectations, the common characteristics for small businesses that are most likely to project high growth are, in fact, quite different. These firms typically:

• Have 5–19 employees.
• Have operated between 3–10 years.
• Are in Ontario and Quebec.
• Are based in manufacturing, accommodation and food services, or professional services.
• Are owned by immigrants or visible minorities.
• Are exporters.

The findings in the report do not come as a surprise, says Cambridge Chamber of Commerce President and CEO Greg Durocher, noting the important impact small and medium-sized businesses have on our economy. 

“A lot of people, especially those in decision-making positions of the government, look at small businesses as ‘mom and pop’ organizations on ‘Main Street’, but overlook the fact that even the major employers we have in this country today all started off as small businesses,” he says, noting the success of a previous Cambridge Chamber program several years ago that promoted small businesses called Small Business Too Big to Ignore. “Everything starts small and it’s one step at a time to reach the pinnacle of corporate success.”

According to Statistics Canada, approximately 98.6% of businesses are considered small with less than 100 employees and historically, small businesses have been a key driver of job creation in Canada, employing nearly 70% of the private sector workforce. Despite slower employment growth over the last four years, small businesses continue to account for almost (43%) of all job gains.

Greg says the government, both federal and provincial, must recognize the fact that growing small businesses is the future of economic growth and prosperity in Canada.

Stronger government connections needed

“It’s kind of like nurturing a child. You want that child to be extremely successful and we as parents do things to help that child through the growing and learning years. It’s the same thing government needs to do for small businesses,” he says, adding this is particularly key for a growing number of businesses started by newcomers. “They are coming to Canada for an opportunity and in many cases, they are starting small businesses because they have skills or expertise in other areas but can’t find work, so they create their own opportunities.”

The report details how approximately 12% of small businesses project growth of 11% or more, compared to almost 8% of medium and large businesses. Three percent of small businesses believe they can achieve “high-growth status,” defined as annual growth of 20% or more.

To help small businesses scale effectively, the report recommends public policy that targets firms’ biggest challenges by simplifying financing, reducing regulatory burdens, fostering export growth, and prioritizing upskilling.

To assist, Greg says the government needs to create stronger connections with small businesses which isn’t easy since nearly one and half million exist in Canada and that their ‘voices’ are often watered down. More often, he says decision-makers can easily connect with much larger businesses since there are fewer of them.

“In most cases they are household names and really big companies,” says Greg, noting these same companies often rely on smaller businesses as suppliers. “But the fact of the matter is that small businesses really need a hand up and support to grow to become medium sized or larger employees.”

Chambers a conduit for government

He says Chambers of Commerce, located in most communities nationwide, are the ideal conduit for government to nurture connections with those smaller operations.

“The mantra of ‘Small Business Too Big to Ignore’ is something the Chamber network should be carrying as a banner. That’s our wheelhouse. We have a personal relationship with these businesses.”

The report also underscores increased input costs, inflation, difficulty attracting and retaining labour, and weak consumer demand as key challenges to growth. The most crucial factors for growth include access to financing, the ability to export, technological adoption and a supportive policy environment.

“Canada needs more high-growth firms,” says Marwa Abdou, the report’s lead author and BDL Senior Research Director. “Years of slow economic growth, low productivity and underinvestment have weakened our global competitiveness and resulted in declining living standards for Canadians. Historically, it’s small businesses that have been a key driver of job creation in Canada.”

Click here to read the full report.

Assisting small and medium-sized manufacturers is critical for several reasons, including economic growth, innovation, job creation, and regional development. 

By investing in their success, governments, industry leaders, and policymakers can help create a more inclusive, dynamic, and sustainable manufacturing sector that benefits not only individual businesses but also the broader economy and society at large.

According to the City of Cambridge’s website, the manufacturing sector accounts for approximately 22% of the city’s labour force and includes more than 500 businesses and employs more than 15,000 people. In Waterloo Region, more than 17.5% of residents in total are employed in the sector making it the fourth largest manufacturing centre in Canada.

The Cambridge Chamber of Commerce has long since recognized the vital role these SMEs play in our community and as an organization that champions momentum to spark economic growth has developed a new program in partnership with Toyota Motor Manufacturing Canada (TMMC) to assist them. 

Entitled Manufacturing SkillUp for SMEs, this six-part learning opportunity led by a team of industry experts focuses on a variety of topics important to small and medium-sized manufacturers.

These include AI integration, supply chain dynamics, mastering customer service, bridging cultures in the workplace, precision advancement, and developing a Kaizen strategy. 

Productivity lagging in Canada

The program is available to both Cambridge Chamber members and non-members throughout Waterloo Region.

Cambridge Chamber of Commerce President and CEO Greg Durocher said the launch of the program comes at the right moment considering Canada’s productivity continues to lag.

According to a recent Financial Post article referencing Statistics Canada data, labour productivity at Canadian businesses has declined for two consecutive quarters, after a 0.3 per cent drop in the first quarter of 2024, with 11 of the 16 main industries recording declines. At an annual rate, productivity in Canada – which has been lagging for decades - fell by 0.7 per cent and since 2019 has declined 0.5 per cent. 

“We thought it would be a good idea for us to develop a program for small and medium-sized manufacturers and advanced manufacturing firms so they are able to learn leading edge technologies and leading-edge performances that can make them a better and stronger player in the international market,” says Greg, noting the Chamber provides a variety of programming to find the path towards successful solutions. “Through the pandemic we found a lot of SMEs were turning to the Chamber for advice, direction and guidance.”

Manufacturing SkillUp for SMEs begins in October with a session at the TMMC facility on Fountain Street North entitled ‘Crafting a Kaizen Strategy’ and features a tour of the plant. The remaining five sessions will run monthly into March of 2025.

Click here to learn more. 

Series Topics

October - Crafting a Kaizen Strategy: Embracing Continuous Improvement for Lasting Success (Includes a Toyota Tour)

November - Integrating AI into Daily Operations: Transforming the Future of Work

December - Mastering Customer Service Excellence: Elevating Standards for Business Success

January, 2025 - Bridging Cultures: Mastering Intercultural Communication in the Manufacturing Workplace

February, 2025 - Mastering Supply Chain Dynamics: Insights from TPS and TMMC Practices

March, 2025 - Advancing Precision: Upskilling Employees in Cutting-Edge CNC Machining Techniques.

Sometimes, yes only sometimes, do I feel sorry for elected officials at all levels. Now is one of those times, however, I also firmly believe it is their own doing. Some of the problems the Chamber and our colleagues provincewide and nationwide are dealing with right now is ensuring that all the issues related to businesses can get highlighted and dealt with.

The reason I say much of this is of their own doing is because, in fact, it is either the action government officials have taken, or it’s their inaction. This is, without question, a result of simply not paying attention to what is happening in the world of business. 

Earlier this year, our former Past Board Chair Kristen Danson and I converged on Queen’s Park in Toronto for the Ontario Chamber network’s annual ‘Advocacy Day’ event. This was a time for us to meet with senior government officials and lay out the issues and solutions they can implement to assist businesses.

While this is extremely valuable and important, this is often just the beginning of the process. The wheels of government turn very, very slowly; Ontario Premier Doug has said this to me personally and that he is as frustrated as many of us are as well. 

At some point, however, we need to get our provincial and federal governments to act, and act as quickly as we need them to act. 

Connecting people is our job

Local governments are not any different, which is what I hear nearly daily from a business owner, contractor, or developer who is in the process to get some of the simplest answers out of City Hall. These answers can often take far too long and require correction. In some ways, I think politicians need to stay out of the way because they often slow the process down, but at the same time should be involved to insist on immediate action.

Another vital job we have as a Chamber is connecting people. You see, no one has ever purchased a major product or service from a company. You don’t buy a car from the manufacturer; you buy it from the salesperson at the dealership.

People are the endearing element in the equation of sustainable economic prosperity. So, we embark down the path routinely by creating programs and events that centre on connecting one another.

Among these is our new Chamber Circles mentoring program which enlightens participants on connecting and benefiting from each other's experiences and knowledge. As well, our staff regularly facilitates meetings with buyers and sellers to ensure that everyone understands we all do business with people we know, like and trust. 

And finally, bringing our community together in these ways, working hard on behalf of our business community and the broader community to find solutions to our problems is at the core of our existence in this community.

It is why we’ve had 100 successful years of building, fostering, influencing, and leading our community in many different directions. We connect, we influence, we drive, we solve, and we are committed to you and this community today. We expect to be here for at least another 100 years, ringing a bell which tolls for you, too.

- Cambridge Chamber of Commerce President and CEO Greg Durocher

Debating policies to create evidence-based solutions that will benefit the business community and province’s economic growth played an important role at the Ontario Chamber of Commerce’s recent 2024 Annual General Meeting and Convention in Timmins.

Approximately 100 delegates representing Chambers provincewide made the trek north, including Cambridge Chamber of Commerce President and CEO Greg Durocher and incoming Board Chair Murray Smith.

“Ensuring businesses have the legislative backing and supports they need to succeed and prosper is at the core of what Chambers and Boards of Trade do and the policies approved at this event assists our network in creating a roadmap to make that happen,” says Greg. “The conference also provides a great opportunity to connect with other Chamber leaders and share ideas and best practices.”

This year, 28 policies were approved by the delegates covering a wide variety of issues that can directly affect businesses including labour, education, healthcare, transportation, infrastructure, manufacturing, and housing.  These policies now become entrenched in the Ontario Chamber of Commerce’s policy ‘play book’ to guide its ongoing advocacy work at Queen’s Park.

The AGM, held April 25-27 and referred to as A Northern Experience, featured sessions related to the creation of a more prosperous business climate for success in Ontario’s north surrounding labour and supply chain issues touching on the needs of the growing EV market in the southern part of the province. Guest speakers included Minister of Mines the Hon. George Pirie, plus representatives from the mining and renewable energy sectors.

Another session focused on the OCC’s Economic Reconciliation Initiative, created in partnership with the Canadian Council for Aboriginal Business, and provided delegates the opportunity to share challenges and opportunities with OCC representatives that they have regarding building relationships with Indigenous Peoples and businesses in their communities.

The OCC will now review their findings and report back to the Ontario Chamber Network with feedback and potential solutions.

Economic growth imperative

The need to create economic growth was at the heart of a video message shared with delegates from Canadian Chamber of Commerce President & CEO Perrin Beatty, who urged the government to modernize its regulatory framework.

“Requiring federal regulators to apply an economic and competitive lens would encourage manageable regulations and reduce the interprovincial trade barriers affecting over 1/3 of Canadian businesses,” he said, adding doing this would ‘fortify’ Canada’s economic foundation. “Modernizing our regulatory framework would cost the government little or nothing at a time when Canadians and businesses from coast to coast are struggling with affordability. The government should be looking to relieve financial burdens wherever possible.”

Beatty also stressed the need for strategic and long-term investment in infrastructure to create a “resilient network” of gateways and corridors. 

“As the world increasingly needs what Canada can provide, it’s critical that Canadian businesses are able to get their goods and services to market reliably,” he said. “If we have learned anything from 2023 is that supply chains are only as strong as their weakest link.”

As well, Beatty also called on the need for the government to provide financial supports, like the CEBA (Canada Emergency Business Account) program during the pandemic, that require more tailored, strategic, and innovative solutions.

“The issue isn’t about how to bail out small businesses but how to build them out,” he said, adding collaboration between the Canadian and Ontario Chambers of Commerce, as well as local Chambers, is needed to make change happen. “The work of the Canadian and Ontario Chambers, and the rest of the Chamber network has never been more important than it is today. Canada has never more greatly needed what we as a network of Chambers can offer.”

Click here to see the OCC Policy Compendium.

Cambridge Chamber policies approved by Ontario delegates

The AGM provides an opportunity for Chamber leaders to come together to discuss and debate key policies that shape the Ontario Chamber of Commerce’s (OCC) advocacy agenda for the coming year. The Cambridge Chamber presented three policies which received overwhelming support from delegates:

• The first policy calls for the Province, in consultation with municipalities, police boards, and businesses communities, to use economic analysis principles when it comes to current and potential crime diversion programs that could reduce crime and in turn make it safer for businesses to operate. As well, the policy recommends that underperforming programs that don’t adequately serve communities of all types be identified and that funding be prioritized accordingly, and that the efficacy of these programs be evaluated in the context of other wrap-around services available in each community. Also, the policy calls for the implementation of a system to measure the long-term impacts of these program investments and insists municipalities continue to use Special Constables in urban areas instead of fully sworn officers to reduce tax burdens.
• The second policy, which the Cambridge Chamber co-sponsored,calls for the establishment of timelines for the Province’s new Building Ontario Fund (formerly the Ontario Infrastructure Bank) to commence investments into projects. It also calls for a strategy put in place to ensure these investments in major projects are in municipalities and regions across Ontario.
• The third policy, which the Cambridge Chamber co-sponsored, recommends the Province initiate a major review of provincial-municipal fiscal arrangements to ensure cost-effective program delivery and maintenance/expansion of infrastructure.

The federal Liberals 2024 budget landed last week to mixed reviews, especially among Chamber of Commerce leaders.

While Deputy Prime Minister Finance Minister Chrystia Freeland kept her promise to keep the deficit from growing without raising income taxes on the middle class by tabling Budget 2024: Fairness for Every Generation with a projected deficit of $39.8 billion, slightly below the $40 billion projected last fall, the document contained few surprises.

“Most of the major new spending was announced by the government over the last few weeks, and the government’s projections for the deficit are largely in line with previous predictions. Instead of using a revenue windfall to reduce the deficit more quickly, the government chose to use it along with changes to the capital gains tax, to fund this new spending,” said Perrin Beatty, President and CEO, Canadian Chamber of Commerce, in a release. “What’s still missing is a clear plan to promote productivity and restore economic growth in Canada. Canada continues to slip further behind our competitors in both of these categories.”

This sentiment is shared by Cambridge Chamber of Commerce President and CEO Greg Durocher, who says business operators regularly share their frustrations with him regarding the difficulties they continue to face trying to conduct business.

“Their concerns do not seem to reach the ears of the those who make the decisions,” he says. “The reality of it is the framework around how this current federal government wants to address the issues of the day are not conducive to solving the problem but probably more conducive to deepening the problem.”

Housing affordability crisis

Among these issues is the housing affordability crisis, which the budget addresses by putting special emphasis on generational fairness and helping younger people – Millennials and Generation Zs — with programs to help renters and first-time home buyers. While this may bring some relief, Greg says there are other ways to address the issue in a less costly manner.

“There is no secret to building more homes. You must create a market for home builders to access and ensure interest rates are acceptable for homeowners to borrow money and you must simply reduce the costs to developers in building the product we desperately need. None of these issues have ever been addressed by any level of government to this point,” he says, adding despite any incentive programs local political bureaucracies often create barriers for development. “You can throw all kinds of mud up against the wall, but none of it is going to stick when it’s already dry.”

Besides housing, the Ontario Chamber of Commerce says the budget should have addressed the need to build better resiliency surrounding supply chains by providing targeted financial support for small and medium-sized businesses. It has recommended the federal government work with the private sector to invest in digitization infrastructure and explore contingency plans for key trading partners and assess potential vulnerabilities.

“I think those are just sensible things our federal government should always be doing to ensure the flow of goods and services can happen because every issue that all levels of government deal with requires a strong, vibrant economy in order to find solutions to those problems,” says Greg. “Building a more resilient supply chain shouldn’t even part of a budget, it should be a core element of the government’s role.”

Despite these concerns, both he and Beatty both welcomed the budget’s move to support interprovincial trade through the creation of the Canadian Internal Trade Data and Information Hub, something the Chamber network has been seeking for several years.

“Strengthening our internal trade could elevate GDP growth by up to 8% and fortify Canada’s economic foundation,” said Beatty in a release. “It shouldn’t be easier to trade with Europe than it is within our own country.”

Economic survival imperative

Besides interprovincial trade, the budget’s promised investment of $2.4 billion towards building AI infrastructure and adoption advancement also came as welcomed news.

“The investment in AI infrastructure and support of start-ups in the AI field is good for business,” says Greg, adding he was disappointed the budget didn’t contain more regarding the co-ordination of broadband investments with the private sector. “The government has done nothing to extend broadband coverage to remote and rural communities and the fact of the matter is if you don’t have internet, you can’t do business. You can’t function without the most advanced technology.”

Overall, he says the 2024 federal budget sends a clear signal the current government is forgoing economic survival in favour of more social programming, a move that doesn’t bode well for conducting business in Canada.

“While I support taking care of those who can’t care for themselves, and every business I know supports initiatives to help others, we also have to recognize the No. 1 objective of any level of government is to ensure a strong and vibrant economy,” he says. “There are very little initiatives in this budget signalling that Canada wants to develop a robust economy.”

Click here to read the budget.

Several measures announced in the federal budget to assist Ontario’s business community. These include:

• Addressing the housing affordability crisis by investing in building more homes, making it easier to own or rent, and creating new programs to supply low-income affordable housing for those who need it most. The government is proposing a combination of tax measures, low-cost financing and loans, utilization of public lands, streamlined approvals, and programs to assist homebuyers and renters directly.
• Building AI infrastructure and advancing adoption through a $2.4 billion investment. A significant portion of this investment is dedicated to building and providing access to computing infrastructure. An additional $200 million is allocated to support AI start-ups to bring new technologies to the market and accelerate adoption in critical economic sectors.
• Advancing economic reconciliation through a national Indigenous Loan Guarantee Program and funding for Indigenous Financial Institutions that will accelerate capital for Indigenous-owned businesses and projects, support project development, reduce the cost of borrowing, and enable Indigenous communities to benefit from natural resource projects.
• Supporting interprovincial trade through the creation of the Canadian Internal Trade Data and Information Hub, intended to enable all levels of government to work together to eliminate barriers to trade and labour mobility.

The Ontario Chamber network is calling for further action in the following areas:

• Co-ordinating broadband investments with the private sector to avoid duplication and maximize the impact of public programs to enhance redundancy resiliency within broadband networks, collaborating with provinces and territories to establish future federal goals for broadband connectivity, assess opportunities for promoting competition and private sector investments in the sector, and expedite funding commitments while improving coordination with stakeholders to address gaps in private sector expansion plans.
• Bolstering Canada’s life sciences ecosystem by creating new funding streams to encourage innovation and high-risk ventures, working with stakeholders to review approval processes, and enhancing regional collaboration.
• Building more resilient supply chains through targeted financial support for small and medium-sized enterprises, working with the private sector to invest in digitization infrastructure, expanding capacity across all modes and channels of distribution, exploring contingency plans for key trading partners, and conducting an assessment to identify bottlenecks and vulnerabilities.
• Implementing broader Employment Insurance reform to reflect the needs of today’s workforce by ensuring the governance, programs, policies, and operations are viable and sustainable, responsive, and adaptable, non-partisan, inclusive, and relevant for current and future generations of Canadian employers and employees.