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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 end to the recent Canada Post strike came as welcomed news to many businesses but it has inevitably raised concerns about the reliability of one of Canada’s primary delivery services.

While strikes are not uncommon, the disruption they cause can have lasting effects on stakeholder confidence. For many businesses, especially small and medium enterprises (SMEs), this disruption may have eroded trust in Canada Post as the overall impacts continue to be tallied. 

“This has been totally devastating to us and our 900 customers,” says Frank Mosey, owner of Tstone Mailing Inc., a Cambridge-based direct mailing business. “Currently, we have lost about 250K in revenue and that pales in comparison to what our customers are experiencing.”

He is not alone. According to Canadian Federation of Independent Business (CFIB) President Dan Kelly, smaller firms had been losing $100 million per day with a total damage of $1.6 billion since the month-long strike started Nov. 16.

“Nearly three-quarters of small firms report they will reduce their dependence on Canada Post going forward, making it even more challenging for the corporation to operate in the future,” he was quoted by the Financial Post.

Reliability an issue

To restore confidence, Canada Post will need to demonstrate its reliability in the months ahead. Proactive measures, such as transparent communication, operational improvements, and compensatory programs for affected businesses, could help mitigate lingering concerns.

“There’s no question about it, there is a lot of Canadian businesses that aren’t going to have faith in the Canadian postal system any longer and they are going to try and find alternative solutions; whether it’s through technology or whether it’s through other services that are available,” says Cambridge Chamber of Commerce President and CEO Greg Durocher. “I think the message to Canada Post is ‘you’d better fix what’s wrong’. Canada Post can't keep losing $750 million dollars a year and continue to operate and really needs to figure out how to do things better.”

While he believes Canada Post workers deserve a wage increase and to participate in a fair negotiation, he says the impact of this labour dispute reached the critical stage very quickly and that support for the 55,000 striking Canada Post workers rapidly waned as the strike dragged on. 

Key bargaining issues have centred around potential expansion into weekend deliveries, with the two sides at odds over how to staff the expansion, plus wage increases, a cost-of-living allowance, and more job protections. Canadian Union of Postal Workers (CUPW) members resumed operations Dec. 17 under the terms of the current collective agreements until May 22, 2025.

Businesses need predictability

During the strike, the Canadian Chamber of Commerce network sent two letters to Labour and Seniors Minister Steven MacKinnon and Public Services and Procurement Minister Jean-Yves Duclos, calling for intervention from the Federal Government to end the walkout. The letters were signed by Chambers and Boards of Trade nationwide, including the Cambridge Chamber.

“According to Statistics Canada’s Canadian Survey on Business Conditions, 90 percent of businesses that recently experienced supply chain obstacles expect those difficulties to either persist or worsen over the coming three months,” the second letter dated Dec. 11 stated. “Businesses need predictability in our supply chains, and yet another labour disruption has unfortunately continued the alarming trend of work stoppages limiting Canada’s ability to deliver goods. This issue extends far beyond gifts and holiday cards; it affects the viability of small businesses and families’ livelihoods.”

Greg agrees and says Canadian businesses should not be held responsible for Canada Post, especially if talk of a potential bailout surfaces if the Crown corporation can’t make the necessary repairs to its financial house.

Shipments continue to shrink

“I think Canada Post has to be responsible for itself. Canadian businesses will support it if it takes that responsibility and does the things it needs to do in order to become profitable, or at least break even,” he says.

In terms of finances, according to its 2023 Annual Report Canada Post recorded a loss before tax of $748 million, compared to a loss before tax of $548 million in 2022 and predicts larger unsustainable losses in the future unless structural challenges with its operating model are addressed.

Also, the postal service’s share of the parcel market has fallen to 29 per cent from 62 per cent before the COVID-19 pandemic, as Amazon and other competitors seized on skyrocketing demand for next-day doorstep deliveries. Canada Post’s shipments have shrunk by nearly a quarter since 2020 to 296 million parcels in 2023.

“Businesses are fed up with government agencies and institutions who leave them in a lurch at a very difficult time and they’re going to try find solutions that will give them a permanent fix to the problem,” says Greg. “I’m sure there are many Canadian businesses that have already done that.”

The strength of the Chamber network when it comes to advocating for the business community was very apparent recently as representatives from Chambers of Commerce and Boards of Trade nationwide recently gathered in Halifax to debate and approve policies aimed at boosting Canada’s economy.

Several hundred delegates gathered Oct. 16-19 at the Canadian Chamber of Commerce’s CCEC Conference and AGM to network, hear from several high-profile business and industry leaders, but more importantly debate policies that can make a difference at a time when Canada’s productivity is suffering to the point where we rank the lowest among the G20 countries, and small businesses continue to face hardships.

“I do think regulation is one of the biggest challenges facing Canadian productivity,” said Shaena Furlong, President & CEO of the Richmond Chamber of Commerce in B.C, while speaking as part of a panel discussion on the outlook for small business. “I think generally in Canada, and this is across all regions, we have problem in that the folks who are imposing regulations on business have only ever signed the back of a pay cheque and there is a sentiment that business and industry are a bottomless well and it’s not just true.”

Delegates were told by Isabelle Hudon, President and CEO of BDC, there are now 100,000 fewer entrepreneurs in Canada than there were 10 years ago, an issue touched on by outgoing Canadian Chamber President and CEO Perrin Beatty during a special tribute to his 17 years as head of the organization. 

Network provides a strong voice

“Capital is fluid, and you are not going to know when an investor chooses not to stay in Canada or not to invest in Canada,” he said. “We need to increase our ease in doing business.”

However, Perrin credited the work of the Chamber network and its advocacy efforts to create a better climate for businesses. 

“Businesses have never more greatly needed a strong, effective and organized voice,” he said. “I’m confident the Chamber can make an even greater contribution to Canada in the future. You are the ones who will carry out that mission. It will be your imagination and your commitment, your energy and your collaboration that will create a brighter future for our country.”

This sentiment is shared by Cambridge Chamber of Commerce President & CEO Greg Durocher who says a key role of Chambers is to develop policies that can lead to fundamental changes in legislation to create environments where businesses can thrive and in turn, communities can prosper. Greg attended the AGM, along with Board Chair Murray Smith and the Chamber’s policy writer Brian Rodnick.

“The policies approved by delegates at the Canadian Chamber AGM and Ontario Chamber AGM provide the tools needed to urge both the provincial and federal levels of governments to make decisions that can assist our economy,” he says. “The Chamber network from coast-to-coast provides a strong voice for businesses.”

At this year’s Canadian Chamber AGM, just over 40 of the policy resolutions presented by Chambers and Boards of Trade nationwide, were approved by nearly 300 voting delegates.

The policies – which now become part of the Canadian Chamber of Commerce’s ‘official playbook’ - touched on the following areas: taxation and finance; labour, skills, and immigration; transportation and infrastructure; agriculture; health; manufacturing; and international affairs.

A policy submitted by the Cambridge Chamber and four others co-sponsored by the Chamber received overwhelming support:

Calling for a comprehensive, independent review to simplify Canada’s tax code

Delegates supported a call to reform Canada’s tax system by establishing an independent, comprehensive review of the tax system ensuring its terms of reference focus on simplification and modernization, identifying potential changes to encourage more economic prosperity for Canadians.

​Implementing a Canada Trade Infrastructure Plan (CTIP) (co-sponsored)

The Chamber network supported a move to have the Federal Government implement, in cooperation with the national business sector and Provinces-Territories, a Canada Trade Infrastructure Plan to guide future planning and construction activities. The hope is to help grow the economy nationwide and ensure that all trade corridors have the capacity to move Canadian goods and service as markets expand.

​Increasing capacity across Canadian manufacturing (co-sponsored)

Delegates supported a call for the Federal Government to implement a 10% refundable manufacturing investment tax credit for all operations nationwide, like the current Atlantic Investment Tax Credit. 

​Addressing the affordability crisis by getting back to fiscal balance & right sizing (co-sponsored)

The Chamber networked supported a series of recommendations to bolster the economic wellbeing of the private sector, including working toward bringing down the level of debt, reviewing government expenditures, if necessary, via a Royal Commission, mandated reviews across all ministries and departments that re-examine government services and the implementation of a cash pooling arrangement within and between all departments and ministries.

​Improvements to the Artificial Intelligence and Data Act (co-sponsored)

The delegates approved a series of recommendations calling for more public consultation when the legislation gets rolled out and assurance that regulations imposed on the industry allow it to remain competitive with other countries including our major trading partners. Also, the policy called for the Federal Government to separate AIDA from Bill C-27 to ensure that it receives due attention and is not held back by other controversial legislation as well as clarifying what makes an AI system ‘high impact’ to better enforce the regulations. 

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.

Portions of the provincial government’s 2024 budget and the economic impact they will have on businesses are being welcomed by the Ontario Chamber network, but a call remains for more to be done.

“This budget takes important steps in the right direction, and at a time when Ontario faces declining productivity, we hope it sets the stage for bigger leaps forward,” said Daniel Tisch, President and CEO of the Ontario Chamber of Commerce (OCC) in a release. “The government has been bold in attracting investments and committing to build infrastructure to create jobs – and we need similarly bold investments in our people, public institutions, and communities.”

Building a Better Ontario, tabled by Minister of Finance Peter Bethlenfalvy on March 26, is the Province’s largest spending budget coming in at $214.5 billion.

While it featured no tax hikes or tax breaks, it did include substantial funding for infrastructure and highways, something Cambridge Chamber of Commerce President and CEO Greg Durocher says is vital to the business community.

He notes Minister Bethlenfalvy’s mention of the long-awaited Highway 7 project between Kitchener and Guelph, as well as improvements along the Kitchener Line to facilitate future two-way all-day GO Train service, should bode well for local businesses.

"This shows these projects are still a priority for this government and that’s what we have been fighting for in this region for a very long time,” he says, adding a $1.6 billion investment also announced for the new Municipal Housing Infrastructure Program to help Ontario build at least 1.5 million new homes by 2031 also comes as good news. “The cost of housing is very concerning to businesses because they can’t attract the brightest and best people to come and work here if housing costs are beyond the pay-scale they are willing to offer.”

Housing Crisis

However, Greg questions whether the financial commitment outlined in the budget will be enough towards creating a long-term solution to the housing crisis.

“The reason housing and rent costs are through the roof is because the supply isn’t even close to the demand. Everybody needs to understand the price of any commodity is based on supply and demand,” he says, adding the Province should amend the Planning Act to give municipalities the broader ability to accelerate the housing construction process. “I also think the Federal government needs to weigh in as well if they are truly concerned about it and reach out to municipalities to see what areas of responsibility the feds can have, perhaps on the subsidized housing side.”

Greg says costs surrounding new home construction, which rose during the pandemic, have also not decreased despite the fact supply chain issues have improved. “You can’t ask a builder to build a home for less than what it costs them.”

The budget also outlined an additional $100 million investment through the Skills Development Fund and an additional $49.5 million over three years for the Skilled Trades Strategy in hopes to address the growing skills gap in Ontario, something both Greg and the Chamber network were pleased to see.

“We have the country’s No. 1 skilled trades school (Conestoga College Skilled Trades Campus) right here in Waterloo Region, so this announcement is very important,” he says. “What is even more important is that Cambridge has such a density of advanced manufacturing and each one of those facilities need skilled tradespeople to work. Investment in skilled trades is certainly paramount for us and it should be paramount for the province and the entire country.”

And while the Chamber network applauds the Province’s $546 million investment in healthcare access, Greg admits he’s disappointed the budget contains only an overall 1.3% hike for health care.

“I really believe this government is working hard behind the scenes to try and figure out where the money will be best spent because with a system like health care, which is the biggest piece of the puzzle here in Ontario, you can’t just keep dumping in money. You have to rationalize where we’re putting it,” he says. “Our healthcare system is a rationalized system where we get what we need, not what we want. So, let’s make sure we get the money directed in the right places to ensure our health needs are taken care of.”

Click here to read the budget.

Several positive measures in the budget to help the business community:

• Housing through an investment of $1.6B for the new Municipal Housing Infrastructure Program and an additional $625M towards the Housing-Enabling Water Systems Fund to build roads, water and infrastructure needed to enable Ontario to reach its goal of building at least 1.5 million new homes by 2031.
• Workforce development by continuing to address skills gaps in critical sectors of the economy through an additional $100M investment through the Skills Development Fund, and an additional $49.5M over three years for the Skilled Trades Strategy, supporting programs that reduce stigma and attract younger Ontarians into skilled trades.
• Healthcare access through a $546M investment expected to connect 600,000 underserved Ontarians with access to primary healthcare teams of doctors, nurses and professionals, and the opening of a new medical school at York University to improve the pipeline of family doctors.
• Mental health, addictions, and homelessness through an additional $152M over three years towards supportive housing, $396M in mental health supports through mobile health units, and $60M to Indigenous mental health.

As the government enters the second half of its mandate, the OCC urges action to support:

• Business competitiveness by improving access to private capital and credit for small businesses, developing an employee ownership policy framework, and supporting greater business adoption of co-operative conversion.
• Interprovincial trade by signing mutual recognition agreements and/or unilaterally recognizing standards in other parts of the country, where appropriate, to promote trade and labour mobility.
• Post-secondary institutions through aggressive investment to create a financially sustainable and globally competitive post-secondary education and research sector, aspiring to have the best-funded system in Canada.
• Energy infrastructure by investing in generation, transmission, and distribution to support expanded charging infrastructure and address expected electricity shortfalls.
• Climate resilience through a climate adaptation and mitigation plan, with strategies that value nature and ecosystem services, and support the federal Task Force on Flood Insurance and Relocation.

Advocating for public policies that can benefit businesses has been a cornerstone feature of the Chamber of Commerce movement for generations.

The Cambridge Chamber of Commerce, like many of its counterparts in the Ontario Chamber network, works consistently all year striving to translate the needs and wants of their members into potential policy resolutions aimed at prompting change at both the provincial and federal levels of government.

But this work, and the work of other Chambers, is often carried out without many of their members even aware there is a widespread network advocating on their behalf.

“This isn’t unique to the Chamber movement and quite common for any advocacy organization because it’s a concept so intangible to a lot of individuals who aren’t engaging in it and don’t necessarily understand the value of it,” says Andrea Carmona, Manager of Public Affairs for the Ontario Chamber of Commerce. “Advocacy, I feel, is a little bit like a unicorn. When you’re a small business owner who is probably focused on keeping your business running, you’re more likely to be looking towards your local Chamber for what are the more tangible services they can offer – programs, events, and grants.”

She says collectively, promoting its advocacy work is something the Ontario Chamber network must communicate clearly as possible.

“It is kind of a difficult thing to explain to people, but really it’s all about amplifying issues and having a chorus of voices saying the same thing so that we can move the needle and make an impact,” says Andrea. “That’s ultimately what advocacy looks to do.”

Making that impact formulated the basis of the Ontario Chamber of Commerce’s recent Advocacy Day at Queen’s Park. This nineth annual event gave nearly 100 delegates representing Chambers provincewide, including Cambridge Chamber President and CEO Greg Durocher and Board President Kristen Danson, the opportunity to meet with MPPs to discuss various issues facing business communities.

Some of the key areas targeted by delegates included:

• Investing in inclusive workforce development: To address labour shortages, investments to resolve skills mismatches are vital. These initiatives should be designed to close the gap between current workforce skills and the evolving demands of Ontario’s labour market.
• Enhancing sustainable infrastructure: Strategic investments in smart and sustainable infrastructure, including transportation, clean energy, and digital connectivity, can boost immediate economic activity while supporting long-term growth. This includes expanding broadband access in rural and remote areas and upgrading public transit and road networks.
• Fostering a business-friendly environment:  Implementing policies that reduce red tape and create a conducive environment for business growth is essential. This includes reviewing and streamlining regulatory processes, providing tax incentives for businesses looking to grow and targeted support for small businesses.
• Cultivating resilient, healthy communities: Improving health data system integration, addressing capacity gaps in health human resources, and empowering municipalities with new revenue sources are crucial steps in ensuring the well-being of Ontarians and fostering community prosperity.

Although the Chamber network’s advocacy efforts are ongoing year-round, Andrea says Advocacy Day provides an ideal opportunity for face-to-face meetings and discussions with the decisionmakers.

“It’s all about ongoing engagement and follow up,” she says. “It can’t just be a single day of advocacy. We need to ensure Chambers are keeping connected with their local MPPs. A lot of this is relationship building since they see Chambers as a credible source for what is happening on the ground.”

Andrea says building those relationships sets the groundwork for support and the ability to drive change that can assist the business community.

“It’s a great opportunity to connect across party lines,” she says. “Politics is unpredictable, and you don’t know what is going to happen in 2026 so you want to ensure you are establishing relationships across the board. We are a non-partisan organization and of course the government of the day is important, but that’s not to say you shouldn’t be engaging with other parties.”

Andrea notes it’s also a two-way street for the decisionmakers who participate in Advocacy Day, as well.

“It’s such a great opportunity for them to hear about such a broad stroke of local perspectives across the province,” she says.