Blog - Cambridge Chamber of Commerce

More than 60 per cent of Canada’s restaurants risk having to close their doors permanently by November, according to government data.

 

The Canadian Survey on Business Conditions (CSBC), produced by Statistics Canada with support from the Canadian Chamber of Commerce, found that 29% of accommodation and food service businesses cannot operate at all with social distancing measures in effect. A further 31% will only be able to remain operational for up to 90 days with distancing measures in effect. In other words, up to 60% of the industry could fail within three months.

 

 

These figures are even more troubling when you consider the jobs already lost. When COVID hit, 83% of businesses in the accommodation and food services industries temporarily closed and two-thirds were forced to lay off some staff, including almost a quarter that were forced to lay off all their staff.  According to Restaurants Canada, the food service industry lost 800,000 jobs.

 

While the economy is now slowly beginning to recover, to date the federal government has not offered help tailored to the needs of the hardest hit industries like food services, which will take a long time to recover. That’s why, with the support of the Cambridge Chamber of Commerce, the Canadian Chamber of Commerce and 15 food service businesses, representing more than 60 brands, has launched the ‘Our Restaurants’ campaign.

 

“Local restaurants are vital to our economy and play an integral role in making Cambridge such a great community,” said Cambridge Chamber President and CEO Greg Durocher. “They need our support now more than ever.”

 

Canadian Chamber of Commerce President and CEO Hon. Perrin Beatty agrees.

 

“We need to act now. Across Canada, our restaurants are where we meet for business or pleasure, where we got our first job and where our families spend a night out. Simply put, our restaurants are cornerstones in our communities,” he said. “The ‘Our Restaurants’ campaign underscores the urgent need for Canadians – both the public and our governments – to come together to support these businesses in their time of need.”

 

The campaign puts a spotlight on the current situation faced by Canada’s restaurants amidst COVID-19: high costs, fewer customers, and government programs ill-equipped for the unique, long-term challenges faced by the industry.

 

Our Restaurants is a campaign led by the Canadian Chamber of Commerce and supported by:

  • Arterra Wines Canada
  • Benny & Co.
  • Boston Pizza
  • CWB Franchise Finance
  • Firkin Group of Pubs
  • Foodtastic
  • Gordon Food Service
  • Molson Coors Beverage Company
  • Northland Restaurant Group
  • Paramount Fine Foods
  • Pizza Pizza
  • Restaurants Canada
  • Service Inspired Restaurants (SIR Corp)
  • St. Louis Bar and Grill Restaurants
  • Sysco Canada

Together these companies represent more than 60 of the best-known restaurant brands across Canada and the whole of the food services industry.

 

“We can all make a difference. Canadians need to observe safety measures while also starting to resume our normal lives, including being able to go out for a meal. Everyone also needs to remind their elected representatives of the importance of our restaurants in our lives,” concluded Beatty.

 

The campaign is national, bilingual, includes paid advertising, and the launch of the website OurRestaurants.ca.

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The Cambridge Chamber of Commerce and Ontario Chamber of Commerce have released The She-Covery Project: Confronting the Gendered Economic Impacts of COVID-19 in Ontario.

 

This policy brief lays out a path to Ontario’s economic recovery offering practical recommendations to confront both immediate and longer-term challenges faced by women.

 

“With women’s labour force participation at a record low, decades of progress towards gender equality are at stake,” said Rocco Rossi, President and CEO, Ontario Chamber of Commerce. “This is not only a watershed moment for women but for Ontario’s economy and society more broadly, as women’s participation in the labour market is a precondition to its fulsome economic recovery and future prosperity.”

 

“The economic impacts of the pandemic were direct and immediate for women in Ontario,” said Cambridge Chamber of Commerce President and CEO Greg Durocher. “Temporary business shutdowns during the state of emergency most severely affected sectors that predominantly employ women. Restrictions on schools and paid child-care facilities have shifted additional hours of unpaid family care onto parents, and this work has largely been taken up by mothers.”

 

Major takeaways from the report include:

  • Leadership and accountability begin with a commitment from stakeholders to set collective targets, reward diversity, include women in decision-making bodies, and apply a gender and diversity lens to their strategies, policies, and programs for recovery.
  • Child care requires a short-term strategy to weather the pandemic and longer-term, system-wide reforms to improve accessibility and affordability.
  • Workforce development initiatives should focus on defining critical skills, accelerating women’s reskilling, and ensuring their skills are utilized – with a focus on increasing their participation in skilled trade, technology, and engineering roles in fast-growing sectors.
  • Entrepreneurship should be understood as a pathway to economic growth, and an inclusive ecosystem is critical to supporting women entrepreneurs.
  • Flexible work arrangements are one way to level the playing field for women and improve organizational outcomes.

 

For more, see the report at:  https://occ.ca/wp-content/uploads/OCC-shecovery-final.pdf

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Tired of staring at the same four walls?

                                                

The reality of COVID-19 has clearly altered travel plans for millions of people this summer and for the months to come, but the desire to get away from our day-to-day lives remains strong.

 

“I think there is a pent-up need for people who want to travel,” says Judy Silva-Foye, Branch Manager of Vision Travel Solutions.

 

With more than 30 years experience in the business, Judy has seen it all but says the COVID-19 crisis is something she has never faced before, even taking into account such other health emergencies like SARS, H1N1 and Swine Flu.

 

“We survived 9/11 and thought at that time there wasn’t anything that would look quite as a bad,” she says, noting the shutdown happened in early March marked the first time in 35 years she was forced to lock her office doors. “It felt so surreal.”

 

For Darlene Whipp, office manager at Donaldson Travel, reopening her office to the public in June – by appointment only – was a big step to returning to some sense of normalcy, even though several desks were removed to create safe physical distancing, plexiglass partitions installed and hours of operation shortened. 

 

“We’ve been dealing with a lot of cancellations and rebookings,” she says. “But we are getting a lot more people coming in wanting to travel.”

 

Winter holidays to the Caribbean, which has seen many destinations reopen thanks through various health and safety protocols, have sparked the interest of many travellers looking to get away.

 

“A co-worker of mine just issued tickets for 12 people to travel to the Dominican Republic in January,” says Darlene, adding her office has been keeping close tabs on what is taking place in the Caribbean. “We’ve constantly been taking webinars with the resorts as they go over all their new protocols and what they’ve been doing to make things safe for clients.”

 

Donaldson Travel President Mark Crone says the airlines have also stepped up with many new protocols and recalls a very positive experience he had on a promotional flight in mid-July to Montreal sponsored by Air Canada to showcase their company’s changes to travel industry experts.

 

“I think it’s really reassuring that planes are really being properly cleaned,” he says, adding that loosening restrictions around the 14-day quarantine period in Ontario would be in a major boost and confidence is coming back as more offices reopen. “A few months ago, we were all self-isolating but now I think we just want our freedom. But the big thing is what’s happening in the U.S. and if they could get more control of it (COVID-19) I think that would help the mindset here all that much more.”

 

Keeping that in mind, Judy says travel destinations in Canada has been a wonderful option for those itching to get away, which could include renting an RV.

 

“We’re suggesting to people that now is the time to see your own country,” she says, noting there are many options just within Ontario to provide people a great holiday, such as a wine tour. “I think this opened our eyes that we have to look into our own backyard this year and seeing what we have closer to home.”

 

But for those looking at travelling – for both holiday and personal reasons - to other provinces, or other countries that are allowing Canadian visitors, travel experts say that research is necessary to ensure what guidelines are in place.

 

“We have become quite the experts on where to find information,” says Judy. “Because it’s not just about the country you’re leaving from but the country you’re going to.”

 

Mark agrees and says the amount of information surrounding travel is overwhelming as the COVID-19 crisis continues.

 

“It’s all very fluid, and changes,” he says. “We’re getting creamed with information every day. You have to be on top of it for sure.”

 

That’s why Mark says turning to a travel expert for assistance is very good idea.

“For the life of me, I don’t understand why anyone would try to book a trip online if they don’t absolutely understand what’s going on right now,” he says. “There’s certainly a short list of places you can go.”

 

Judy says she is confident the travel industry will survive.

 

“Travel will come back because there is always going to be a desire for travel,” she says. “But will it come back the same? No. It will never be what it was before, just different.”

 

She says the impact of COVID-19 has created a domino effect and has resulted in a global connection towards trying to bring the virus under control.

 

“We don’t all have to have share the same beliefs, but we should all try to end up at the same place,” says Judy.

 

 

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  “Complacency is a state of mind that exists only in retrospective: it has to be shattered before being ascertained.”
    – Vladimir Nabokov

 

As countries across the world continue to cope with the devastating impacts of the COVID-19 pandemic, necessary questions are being asked about how governments and the various multilateral and national institutions and organizations designed to prevent these kinds of outbreaks failed.

 

It will take time to untangle the myriad of geopolitical and governance failures behind the present condition, but it is hard not to see how complacency played a role in our collective pandemic prevention and preparedness.

 

The result of this complacency is that Canada is experiencing its worst economic downturn in decades that is wreaking havoc on Canadian companies, their employees and federal, provincial and municipal balance sheets. According to Statistics Canada’s Canadian Survey on Business Conditions in May, 61% of businesses in Canada reported laying off 50% or more of their workforce. Even the most optimistic economists are projecting that it will take years, not months, for Canada return to the levels of economic activity that was taking place before the pandemic.

 

The biggest recovery issue for governments around the world – including in Canada – is whether they can control and reduce the spread of COVID-19 without resorting back to economically devastating shutdown measures. Our short-term economic health and public health are inextricably linked.

 

As Canada tries to chart its medium- and long-term economic recovery plans, one of the most important issues is whether the country can overcome the economic complacency that had taken root long before the pandemic hit. Before COVID-19 disrupted nearly every aspect of our economy, Canadian policymakers were seemingly content with low-level business investment and economic and productivity growth.

 

Despite having an unnecessarily complex and inefficient tax system, successive Canadian governments over the last 60 years have avoided taking the necessary step of comprehensive tax reform. In the face of this inattention, the Canadian Chamber recently launched an independent tax review to help spur our recovery.  Other countries including the U.K. and New Zealand have shown it can be done and overhauled their outdated tax systems. Now, as business demand and revenues are down, it is more important than ever for Canada to look at tax reform as an opportunity to lower business costs and free up more capital for them to invest in recovery, growth and job creation.   

 

Despite having some of the highest environmental standards in the world, Canada has become complacent about allowing much needed infrastructure to be built so we can sell our energy resources to customers that are willing to pay just as much for energy products produced in jurisdictions with inferior environmental standards. In our present economic and fiscal situation, it would be economically negligent to concede that new energy driven jobs, growth and tax revenue to fund social and other spending programs should happen in those other countries and not ours.   

Despite federal governments over the last two decades repeatedly acknowledging that red tape and regulatory inefficiency continues to be a drag on growth in this country, they have all continued to introduce measures that increase the overall burden on businesses. Serious economic recovery plans must include regulatory measures that create a less uncertain and less costly environment to operate a business.

 

Canadian businesses and their employees have paid an exceedingly high price for the global complacency that got us here. Many businesses did not survive the first half of 2020 and more will close their doors permanently in the coming months. The ongoing impacts of this pandemic have shattered governments out of the complacency that allowed a localized outbreak of a novel coronavirus in Wuhan, China to spread to every corner of the globe.

 

As it considers long-term recovery and growth ideas this fall, it is still unclear whether governments recognize that economic complacency has shaped Canadian policymaking in recent years. By watching what happens with tax, regulatory and energy policy over the next several months we will soon find out.

 

For more information, please contact:
policy@chamber.ca

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The Cambridge Chamber has joined Canada United, a national movement to support local businesses in communities across the country.

 

As part of the movement, RBC has brought together more than 50 of Canada’s leading brands, Business Associations and the national Chamber network to rally Canadians to “show local some love” by buying, dining and shopping local.

 

“The Cambridge Chamber is pleased to support the Canada United movement and help bolster businesses in and around our community. Small businesses are the backbones of our local economies and key to thriving communities,” says Cambridge Chamber of Commerce President & CEO Greg Durocher. “The COVID-19 pandemic has created unprecedented challenges for businesses in our region and across the province. We need to continue to support SMEs who create jobs, drive innovation, and generate wealth for communities across Ontario – they will play an integral role in helping the province bounce back.”

 

Canadians are invited to join the Canada United movement by buying and dining local, including celebrating and supporting local businesses during the Canada United Weekend from August 28 to 30.

 

Canadians are also encouraged to watch the Canada United videos online at GoCanadaUnited.ca, like posts from @GoCanadaUnited on social media and use #CanadaUnited to demonstrate their support. For each of these actions until August 31, 2020, RBC will contribute 5 cents up to a maximum contribution amount of $2 million to the new Canada United Small Business Relief Fund, while working with government and corporate partners to source additional contributions to the fund during the course of the campaign. This fund will provide small businesses with grants of up to $5,000 to cover expenses related to personal protective equipment (PPE) renovations to accommodate re-opening guidelines and developing or improving e-commerce capabilities.

 

Small Canadian businesses across the country will be able to apply for up to $5,000 in grant funding. The program intends to support small Canadian businesses of all kinds from across the country. The Canada United Small Business Relief Fund will be administered by the Ontario Chamber of Commerce on behalf of the national Chamber network. Small business owners who are interested in the program can visit GoCanadaUnited.ca to learn more about grant application details, including eligibility criteria, and to apply.

 

“We are excited to welcome the Cambridge Chamber to Canada United to help local businesses and Canada’s economy come back strong,” said Neil McLaughlin, Group Head, Personal & Commercial Banking, Royal Bank of Canada. “Canada United was created to kick-start an economic rebound by rallying consumers to give local businesses the support they need to re-open during these uncertain times. By bringing together government, business associations and corporate Canada, we are looking to start a movement to get Canadians to buy local and support businesses across the country. We are genuinely excited by the energy all of our partners are bringing to this effort.”

 

“If there has been one silver lining in all the tragedy and sacrifices of the current crisis, it has been the spirit of collaboration and unity of purpose that has been evident between levels of government, across provinces and across sectors,” said Rocco Rossi, President and CEO, Ontario Chamber of Commerce.

 

“We are calling on that same unity of purpose with Canada United. Small, local businesses are the heart of our communities, our Main Streets and our economy. Together, it is time to show local some love.”

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The effects of COVID-19 continue to test our economy, but the fiscal uncertainties surrounding this unprecedented crisis has not stopped many local businesses from reaching out to help others.

 

From local food banks, to frontline workers, to seniors and those with disabilities, the Cambridge business community has come forward to ensure those in need during this pandemic are not forgotten.

 

“The Cambridge community has always been exceptionally supportive of the Cambridge Self-Help Food Bank and they’ve stepped up for us in a way like we’ve never seen before,” says Dianne McLeod, the food bank’s interim executive director. “We’ve had lot of different restaurants donating products to us, whether it’s milk or eggs; stuff we’re not typically able to offer to everyone.”

 

But financial donations have also been coming in to allow the food bank to purchase some much-needed supplies for the 100 or so clients it serves daily, and Dianne credits many local businesses for this valuable support.

 

“We have all been so affected by the COVID-19 crisis and even though as a business have had our challenges, we all want to help those who truly need help,” says Christina Marshall, Director of Business Development at Gaslight Events Company Inc. which operates Tapestry Hall.

 

Her company, through its Tapestry Hall Delivers program which offers healthy meals via delivery and curbside pickup, has been donating $1 from every order to the Cambridge Self-Help Food Bank and The Food Bank of Waterloo Region.

 

“We have had two very solid weeks of the food delivery services, which means two weeks of orders that are supporting the food banks in our region,” says Christina.

 

But tasty dishes are not the only way the food bank has benefitted. Funky t-shirts emblazoned with the slogan ‘Eat, Sleep, Quarantine, Repeat’ have been popping up all over our community on social media thanks to a charitable partnership between MitoGraphics and Cambridge Centre Honda.

 

Since mid-April, the two companies have sold dozens of the shirts for $20 each, with every cent from each sale being divided equally between not only the food bank, but Trinity Community Table, Cambridge Shelter Corporation (The Bridges), and Women’s Crisis Services Waterloo Region.

 

“A friend in Peterborough who owns and operates a Honda dealership was creating t-shirts and I loved the idea,” says Cambridge Centre Honda’s Nicole Pereira, explaining how the idea came about. “I thought if Peterborough can make this happen, so can Cambridge.”

 

With the expert help of MitoGraphics’ Kristen Danson, the women went to work creating their #QuarantineTees in several colours and through the power of social media have started a virtual movement of support.

 

Originally, they had hoped to sell 50 of the shirts but during a pre-launch weekend sale in mid-April wound up more than doubling their sales.

 

“We both love our community and think the people of Cambridge are awesome, so it’s not surprising that we have received such great support,” says Nicole, adding the t-shirts have now been sold as far west as Alberta and on the East Coast.

 

She says the four charities have been great at promoting the shirts on social media and that one local store, Once Upon a Child, has also been selling them via its online store.

 

“There are so many great examples of businesses giving back to our community,” says Nicole.

 

For Golfplay’s President and General Manager Steve Harris, giving back seemed liked the best thing his business could do since it was required to shut its doors along with thousands of other Canadian businesses back in March.

 

“There are lots of needy organizations,” he says, noting after sitting idle for about two weeks, Golfplay fired up its stone pizza oven in its Ironwood Bistro to try a new approach. “I thought, we’ve got a perfectly good pizza oven so why not sell pizzas and give some of the money to charities?”

 

They tried doing it one day a week and gave $10 from every pizza sold, starting with the Cambridge Memorial Hospital and The Bridges shelter. They quickly sold out and began doing it three nights a week (Thursday to Saturday), selecting different charities each week to benefit, including Grand River Hospital, St. Mary’s General Hospital Foundation, Family & Children’s Services Foundation, and more recently the Sunnyside Foundation.

 

Orders for pizzas and other menu items are taken online for fast and easy curbside pickup.

 

“We just kind of go around,” says Steve, referring to how the charities are selected. “All of them could use help because their fundraising events have been cancelled.”

He says working with charities is also a good way to foster new relationships and potential spinoffs down the road when restrictions eventually ease.

 

“This has sort of helped increase the awareness of what we do here. People at least get the chance to sample our food,” says Steve, joking many people may not think of getting great pizza from a place called Golfplay.

 

“We’re trying to build a business and trying to give something back in the process,” he says, describing the situation as a ‘win-win-win’ for all involved. “The customers win because they feel good about helping others, we win because we get more exposure and the charities win because they receive some money in the process.”

 

Support among those in the business community is crucial says Christina, especially as the recovery process begins.

 

“By banding together and helping each other get through this, we show our strength as a community economically and socially,” she says. “If a business closes, the employees lose their income and that means other businesses do not benefit from that person’s buying power.”

 

Keeping that in mind, Tapestry Hall’s Delivers and HIP Developments have formed a partnership to create the Feeding the Frontlines program. On the Tapestry Hall Delivers’ website, customers have the option to contribute to the program which aims to see $5,000 in meal vouchers distributed to essential workers in Waterloo Region, including those working in healthcare, shelters, and grocery stores. On the site, the public can nominate businesses where essential workers are busy.

 

“They are doing the hard work in this community,” says HIP Developments President Scott Higgins. “We are just trying to find ways we can say thank you and make their family lives a little easier.”

 

Christina agrees and says these workers have gone into work each day to ensure the rest of us have the things we need.

 

“We wanted to do something kind to say thanks,” she says. “A stress-free meal may not seem like a lot, but when you have had a long and sometimes scary week at work, one less thing, like cooking a dinner or meal planning, can help ease that stress.”

 

Easing stress for others is what prompted Driverseat Cambridge owner Sean Mulder to follow the lead of the company’s Calgary office and offer a ‘shop and drop’ program free to seniors and those with disabilities. Those in need of groceries can call, or text Driverseat and will be provided with a link that allows them to fill out a grocery order.

 

“It’s kind of cool. We’re the third location to test this out,” says Sean, adding having fewer people going to grocery stores means less points of contact to spread the virus. “This makes great sense.”

 

Driverseat chauffeurs, many of whom Sean says are doing this on a volunteer basis since many only work part time for the company, do the shopping for the customer using a preauthorized payment system and then deliver the groceries following strict physical distancing guidelines. Currently, Driverseat is offering this at a few stores but expects that will increase as the program expands.

 

“A lot of our posts on social media have received a wide reach and from that, we’re getting quite a lot of people calling and messaging us,” says Sean.

 

He says since a huge portion of Driverseat’s regular services have been scaled back considerably since the lockdown began, this has allowed the company team to stay connected. Also, Sean says it has been a boost for those in need and are isolated on their own.

 

“It gives people peace of mind. We’re a person they can talk to,” he says, adding clients can call the chauffeur if they have special requests that may not be on the grocery list, or if they forgot to add something. “They’re not just punching information into an app; with us there’s a voice you can talk to.”

 

Sean admits even though businesses are facing challenging times it shouldn’t prevent them from lending a hand.

 

“There’s a huge need in our community and if you have the means or the time, you should do something,” he says.

 

Christina agrees, especially when it comes to assisting the non-profit sector.

“If you have the chance to help those that are helping others, isn’t it the right thing to do?” she says.

 

At the Cambridge Self-Help Food Bank, Dianne says she is thrilled by the extent of generosity from the business community which has included free security service and the creation of safe work stations for staff to work with clients at the front of the building thanks to the donation of free reno work.  As well, she says the local CAA office has deployed its vehicles to pick up food bank donations from the grocery store bins.

 

“No matter what people’s struggles are, they’re still considering us and donating to us which helps us keep going,” says Dianne.

 

Contact Information:

 

For information about Tapestry Hall Delivers, visit www.tapestryhall.ca

 

To order a #QuarantineTee visit www.cambridgecentrehonda.com/community-fundraiser/

 

For information about Golfplay, visit www.golfplay.ca

 

Contact Driverseat Cambridge at www.driverseatinc.com, or call 226-241-3736

 

For information about the Cambridge Self-Help Food Bank (which now has community donation bins set up at St. John’s Anglican Church in Preston and PetroKing in Hespeler), visit www.cambridgefoodbank.org

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Physical distancing and thoroughly washing your hands are ways for the general public to battle the spread of COVID-19.

 

For manufacturers looking to find ways to help fight the battle by retooling their operations to create much-needed medical supplies such as masks and face shields, collaboration is the key way says Steve Mai, CEO and President of Eclipse Automation, one of many local companies stepping up to the plate.

 

“It really helps if you build networks,” says the Eclipse founder. “Don’t work in a bubble, get out there and do it.”

 

 

The Cambridge-based company, which has been an industry leader in custom automated manufacturing equipment for 20 years, recently inked an agreement with Harmontronics Automation in China to manufacture, sell and distribute its automated N95 vertical flat fold respirator mask production line system in North America. As well, Eclipse also signed an agreement last week with Irema Ireland to access its N95 and FFP2 mask product designs and technology, including respirator designs, specifications, and manufacturing process for exclusive use in Canada.

 

These agreements will provide Eclipse the opportunity to rapidly create automation systems to support the design and assemble these important medical supplies, plus pave the way for a domestically produced N95 respirator.

 

Ultimately, Steve has a goal to produce vital life-saving protection products domestically.

 

“We shouldn’t be losing sight of the fact that we have a definite problem in quality of what is coming in through the supply chain,” he says. “I want to know there are masks produced in this country that have every element of the supply chain controlled.”

 

He admits the overall process has been taking place at a slower pace than he’d like, taking into consideration the strict regulations in place to have a mask receive NIOSH (National Institute for Occupational Safety and Health) approval, but notes Eclipse has not lost sight of  its end goal to ensure these supplies get into the hands of those who need them most. According to a recent media release, Eclipse expects to be first-to-market domestically by early July and plans to ramp up to make one million units per week.

 

“This is what we do for a living, this is not a secondary thing we’re trying to get into,” says Steve, describing the company’s decision to enter the battle against COVID-19.

He says the company, which employs approximately 800 people among its locations in Cambridge, U.S., Europe and China, has used a foundational approach by building on its core competencies to reach its goal.

 

He recommends other companies wishing to retool should consider doing the same.

“They’ve got to be careful not to overextend themselves and stay with what they know and focus on their core competencies,” says Steve, adding working with others is also important.

 

“We’re learning about a completely different network than we’re used to,” he says. “I’m seeing people sharing their ideas and being quite open.”

 

Since Eclipse undertook this major endeavour back in March, Steve says he has connected with many businesses that he has never had contact with before and expects to see these new relationships only strengthen.

 

“There’s some decent networking that’s going to come out of all this,” he says, describing the numerous phone calls he has had with various business leaders. “It’s really been amazing. I can’t wait to meet them in person.”

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Energy producers throughout the world are in uncharted territory. With nearly half the world’s population under some form of lockdown, an equivalent of the United States’ energy demand has evaporated from the global market. Poof.

 

This pressure alone was sufficient to put long shadows ahead of the industry, but the breakdown of the production cap brokered between OPEC nations and Russia has glutted the market with oil, sending prices down at a breakneck speed, in some corners of the market even into negative territory. Only an oracle would dare predict what is next for Canada’s oil and gas industry. Mere mortals must content themselves with taking stock of what is and what is not within our power as we muddle through the shadow-world of an ‘upside down’ energy market.

 

Until a vaccine is developed, the price of Canadian oil, like oil everywhere, will remain hostage to a pathogen. Strangely, what cannot be changed begets new choices. The federal government is at the crossroads. It can listen to the oil and gas sector’s permanent critics and shutter the industry, punch a 6% sized hole into Canada’s GDP, and put Canada in a position where we decide to let others be responsible for our energy security and for halting climate change internationally. Today, this might be the politically easy choice for our government to make, but easy choices pave roads to unhappy endings.

 

The other choice involves helping the industry carve a path in a global energy system that is most likely on a new trajectory. Peak oil may come earlier now, but there will still be demand, albeit less, for oil and gas over the next three decades, at least. With the right supports, Canada can gain market share by innovating to create less emission intensive oil and gas products, provide billions to governments in revenues, and drive investment in renewable clean technologies. Market share will increasingly be up for grabs given that current estimates suggest nearly 100 U.S. shale producers are likely to file for Chapter 11 in the months ahead. Decisions made today could see Canada improve its economic footing and maintain energy security in a world where autarky is fast becoming more attractive to world leaders of all political stripes.

 

So, what can the federal government do to help the industry, and the nearly one million women and men employed by the sector across this country, pass through the darkest valley they have ever faced?

 

Start by keeping as many of the people employed in the sector across the country working by targeting resources for well reclamation, and continue research and field work on carbon mitigation technologies. Government can also pause all new regulations and standards that increase the cost to the sector, from the Clean Fuel Standard to the increase in the carbon tax. This would provide companies that have already slashed capital costs with a little more capital to ride out a period where they are producing at a loss.

 

Such measures would augment the benefits of the federal wage subsidy, increased to 75%, in giving these companies time to adapt.

 

Perhaps most importantly, Canada’s energy producers have the vision to further reduce emissions, some before this crisis could see a path to net-zero by 2050. Realizing this vision demands new infrastructure projects and investment. The industry continues to be let down by a regulatory system that increasingly rewards investors looking outside of Canada. Infrastructure projects of all types will be crucial to Canada’s economic recovery. Reduced decision timelines and concerted efforts to guide projects key to Canada’s energy resiliency could go a long way to driving Canada’s economy and supporting investment in the sector.

 

Some choices are hard. Some are not. Support for our oil and gas sector today, will allow the sector to carry Canada tomorrow.

 

For more information, please contact: policy@chamber.ca

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I am a small business owner based in Cambridge, Ontario.  Along with my partners, we operate two manufacturing operations employing a total of about 25 people.

 

I am proud of all of the response of our political leaders to this crisis on all levels – local, provincial and federal.  They have taken a sober and analytical approach to the immediate needs of the citizens of this country.

 

Their willingness to commit funds, resources and support to our front line workers, small businesses and all in need will get Canada through this ordeal.

 

As a business owner, my top priority is always looking ahead to determine how I can not only succeed; but avoid unexpected disruption to my team; and minimize our potential for risk of any kind.

 

This is where I think the business community needs more support from our leaders.

 

The question of when we should re-open for business is open for debate.  The leaders in Canada, USA and abroad have differing opinions on this matter. 

 

There is only one question on my mind – what is required for me to do business in a way that will be safe for my team, clients and supply chain?  This is the question that must be answered prior to our return to regular business.

 

There is no doubt in my mind that the scientists of the world will determine when it should happen; using the tools and expertise available to them.  It brings me comfort to know that our Canadian politicians are being guided by science in their decision making process on these issues.  

 

However, there is another component to this decision that I think we are neglecting.  Whenever we return to work, it will be to a new business landscape.  There are new risks, new considerations and a higher expectation from the community for business owners to provide a safe working environment.  As a community, we need to determine what will be required to have in place prior to a return to “regular” business. Until we have a vaccine / “herd immunity”, do workers require masks to be safe?  Do we need to require hand sanitizer at entry points to work areas and require all team members to use?  In Taiwan, there are some common practise expectations for citizens that have allowed them to maintain a very low infection level of COVID without restriction on children being at school, or businesses operating normally.  What can we learn from their example that can help us to prepare to resume our work?

 

If Toyota, Honda, or even my business or a local hair salon re-opened in two or four weeks without making any adaptations to how the risk of COVID transmission is controlled; how will we have made progress against this disease?

 

The saying “time heals all wounds” has never resonated with me.  Time doesn’t heal all wounds; but time does offer us the opportunity to prepare for what is coming at  us next.  We know that the economy will have to resume prior to COVID being completely eradicated.  The question is – what will we as a community do to mitigate the risk of another peak of infection as we make that return to the new normal?

 

There is no question that children will have to return to school; I am less concerned about when that happens than I am about what the plan is to keep them safe and healthy once they are there.  We have the example of how Taiwan has made this work; kids wearing masks and having plastic cubicle style dividers between desks during meals.  Will we use this time to learn from their example and adapt our own action plan for what is required to be in place prior to resuming their in class education?  My hope is that we do. 

 

The Cambridge Chamber of Commerce is starting to gather experts and business owners to start this discussion.  I am proud to be a part of this discussion; I look forward to learning and planning together with others to determine how we as a business community can plan to get back to business.  This is new territory for everyone – consumers, business owners, employees, politicians, government, youth and seniors.  If we can agree on the supports that are needed to re-open in a safe manner, the time spent until that happens can be spent planning and making the required changes to how we do business to accommodate the new reality we live in.  If as a community we neglect this opportunity to plan and adapt, we are destined to repeat this cycle of the pandemic again in the not so distant future.

 

This is work that our Chambers of Commerce, professional associations, industry associations, regulatory bodies or governing standard registrars, perhaps the labour unions and school boards are well poised to do.  They have connections to business in their sector, a communication channel with a broad range of companies in a vertical market, and the support of their members.  If we all pressure these organizations in our own industries to get to work on our behalf, we can start planning for the future.

 

It’s time to change the question from “when can we re-open” to “what is required for a safe and healthy re-opening in my workplace to get through this crisis”?

 

Let’s get to work.

 

Kristen Danson

Managing Partner

MitoGraphics Inc. / Swift Components Corp

519 240-4205 Direct

 

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Boom! Canada hit 4.5% growth in the second quarter after a torrid 3.7% expansion in Q1! Sounds like growth in India, not a sleepy advanced economy. As a result, Canada’s deficit is lower than expected and the government announced additional spending. So is it time to stop worrying and pop the champagne?

 

 

There are four key drivers of this bonanza: (1) export growth thanks to the oil and gas sector; (2) consumption, because Canadians continue to borrow and spend like there is no tomorrow; (3) housing which saw the biggest gains in 8 years; and (4) a healthy gain in business investment. The question is whether these are likely to continue?

 

Firstly, Canada’s exports are set to rise 8% this year, which is superb, but is almost entirely driven by oil and gas sales which are up almost 42% so far this year (see chart on the following page). If you take out the petroleum sector, Canada’s exports grew just 1%.

 

But the export boom won’t last: the strong loonie and US weakness caused Q3 exports to fall 11.5%, while imports fell 7.1%. Net exports will be a drag on GDP growth for the rest of 2017.

 

Consumption will also slow down in Q3. Retail sales fell two months in a row (July and August). And job growth slowed:  just 43K jobs were created in Q3, the weakest quarter in a year, with gains entirely in the self-employment category. Private sector employment fell for the first time since 2015.

 

Housing has been a powerful driver of growth, but the foreign buyer tax hit Canada’s largest and fastest growing real estate market in May. Toronto’s home  sales have fallen 35% while prices were off 20%. The effects are likely to be temporary, as we saw in Vancouver, but will surely be felt in Q3.
 
The star of investment spending has been the recovery in the oil and gas sector but that is also facing tough times. The National Energy Board’s expanded focus on downstream emissions has created an effective moratorium on new energy projects. TransCanada finally pulled the plug on Energy East and in the last two years, $82 billion of investment has been cancelled.

 

So, we can expect a sharp downturn in exports and housing alongside much weaker consumption and business investment. Statistics Canada will release Q3 growth on December 1st and we expect it to be below 1%. What should we do? How do we keep growing?

 

Look around the world - these are exciting times in tax policy! France has just embarked on major tax reforms, with a 2017 budget that reduces or eliminates several business taxes, while lowering overall rates. The UK Government undertook a major tax reform effort last year, but backed away from the most contentious measures in April 2017. And in the US, Congressional Republicans are determined to press ahead with a biggest tax reform in 30 years, to slash the general corporate rate from 35% to 20% while eliminating certain tax credits.

 

What is Canada doing in the midst of our trading partners' laser-like focus on competitiveness? We've just spent most of the summer in a ferocious battle over income sprinkling.

 

Instead, Canada could create an internationally competitive system of business taxation that rewards entrepreneurship, encourages businesses to invest in the technologies, skills, and capacity they need to grow, and attracts capital and highly qualified people from around the world. That would ensure Canadian growth for generations!

 
For more information, please contact:

 

Hendrik Brakel

Senior Director, Economic, Financial & Tax Policy

hbrakel@chamber.ca

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