Learn more about Chamber Circles for Women and Entrepreneurs
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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:
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.
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As businesses navigate an era of rapid technological evolution, shifting workplace dynamics, and global interconnectedness, preparing your workforce for 2025 demands strategic foresight.
The key to success lies in fostering adaptability, embracing technological advancements, cultivating a culture of continuous learning, and prioritizing employee well-being.
“Whether it's the benefits program, whether it's salaries, the expectations of employees have gone up and I think also to the expectation of the business culture,” says Frank Newman, owner of Newman Human Resources Consulting. “I think people are making more and more decisions based on workplace culture.”
He says since the pandemic, the continuing trend of creating a strong workplace will become even more apparent in 2025 and beyond as potential employees look for reasons why they should work for a particular company.
Strong communication
“If a business owner can't answer positively what it's like to work there, then that’s going to be a problem,” says Frank. “As an employer, you have to look at your internal culture and determine what is it like. Are we behaving as we say we are? What are our values? And because it's still a competitive world out there, how do we differentiate ourselves?”
Ensuring your company brand is on target is key when it comes to navigating the current hiring environment, which he believes has become less civil since the pandemic in terms of the way some potential employees disrespect a company’s time, in some cases by not even showing up for a scheduled interview.
“I think as people we've got used to a little bit lower standard. So, as an organization, if you want to be the preferred employer or even the preferred partner to work with as a business partner, you need to up your game a bit because that's going to put you in good stead for the long run,” says Frank, adding sending a ‘thank you’ response to potential candidates just for applying is one way to make a positive impression.
“You want to make sure you increase your communication standards because everything is now subject to online reviews. The whole review concept is important - whether it's employee reviews or whether it's customer reviews – and to be aware and make sure you check them monthly because you don't know what people are going to say about your business.”
Safe environment needed
Good communication with employees also remains key, he says, noting in wake of the pandemic mental health issues continue to be an ongoing issue for many companies.
“The latest trend now is to make sure you have an employee assistance plan that can help with mental health and other counseling needs people have,” says Frank. “We live in an age of stress. It’s about having some tools for people to access, such as mental health professionals, or even just making sure that employees feel comfortable sharing.”
Creating a psychologically safe environment is a big part of developing a mental health strategy that works, taking into consideration the various pressures employees are under at work and at home.
Frank recommends conducting a pulse survey as a way to quickly collect feedback from employees to gauge their impressions of where the company stands at the moment. Depending on the size of your workforce, he says sitting down for a coffee and an informal chat can also be just as effective.
“It’s about keeping an ear to the ground in terms of what your employees are feeling and facing,” he says. “We don’t want tone deaf business owners; that’s not going to cut it these days and I think people are looking for more humanity from their business leaders.”
A continued trends towards hybrid work situations could also play into that sense of humanity as employers look for ways to engage with their online workforce.
“You’ve got to make sure you are finding ways to leverage that and build those connections when people are isolated at home,” says Frank, noting that many employers continue to see a surge in potential applicants when it comes to offering hybrid work. “Managers must think about that and what it does to their recruiting.”
Investing in leaders
He says trusting your employees promotes growth and productivity, and that mistrust erodes confidence.
“What companies should be thinking of now is really investing in leaders. So, it’s important to make sure your leaders are connecting with their people and being authentic,” says Frank. “Most people leave an organization not because of work, but because of the boss.”
He says trust also works in both directions, especially when it comes to companies maneuvering through the current economic and political turmoil facing businesses in North America.
“It’s really about planning ahead and also letting your employees know that you’re taking things seriously and have plans in place to deal with these issues, because sometimes they are not aware of what management is doing and that may create some uncertainty,” says Frank, noting when it comes to the future, a strong AI strategy to assist employees boost their productivity is also a key consideration. “Companies should be leveraging that as much as possible.”
How businesses can prepare their workforce for the challenges of the near future:
1. Embrace Technological Integration The workforce of 2025 will operate in a tech-driven environment. Businesses should:
2. Prioritize Employee Well-Being The pandemic highlighted the importance of mental health and well-being. A healthy workforce is a productive workforce. Companies should:
3. Focus on Reskilling and Upskilling As technology advances, certain skills will become obsolete while others gain prominence. To stay ahead:
4. Foster Agility and Innovation The ability to adapt to change and innovate will be critical in 2025. Encourage:
5. Leverage Workforce Analytics Data-driven decisions can significantly enhance workforce management. Businesses should:
6. Commit to Sustainability The workforce increasingly values companies that prioritize environmental and social responsibility. Businesses should:
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As 2025 kicks off businesses must adjust to an economic landscape shaped by technological advancements, inflation, shifting consumer expectations, and global challenges.
Therefore, preparing a business for the future requires strategic foresight, innovation, and a commitment to meeting emerging demands, something Peter Wright, President of The Planning Group, is very familiar.
“In my view, businesses this year should be focused much more on margins and pricing gains,” he says. “If they haven't already made big pricing gains post COVID, they should be saying where can we increase prices?”
Peter says whether the business is B2B or B2C, operators should be pondering how they can increase that component of profitability.
“Most of the focus for a lot of businesses should be on trying to make those gains at the margin level partly through pricing, but partly through reducing the cost of goods rather than trying to make a bunch of cost cutting exercises in overheads because a lot of businesses have done that,” he says, noting the urge to reduce staffing costs is often very tempting. “They might say, ‘We’ve got this open position, so let’s just not hire someone for it’. But that position could be the thing that’s actually tied to an incredible value proposition the business is trying to achieve.”
Cutting staff can hurt business
Reducing staff can also lead to increased workloads for remaining employees, causing stress and burnout. Often, when employees feel overburdened and undervalued, their productivity declines, and engagement wanes.
Also, customer expectations are set to rise in 2025, with consumers demanding faster service, personalized interactions, and consistent quality and cutting staff can often compromise a company's ability to meet these demands. Longer response times, lower service quality, and limited innovation can erode customer loyalty, driving them to competitors.
As well, cutting back on staffing and spending often leads to a reduction in resources allocated to research and development (R&D) and other innovation-focused initiatives. Without investment in new ideas and technologies, companies risk falling behind competitors who are better equipped to adapt to changing market conditions.
Peter refers to the philosophy of author and business guru Tom Peters, and his book The Circle of Innovation: You Can’t Shrink Your Way to Greatness. “You can’t cut and cut and become a great enterprise,” he says.
Avoid being opportunistic
“I think for all businesses, not just small businesses, should be saying how can we differentiate? How can we set ourselves apart and how can we then not turn around and sell that?” says Peter, adding having everybody in the organization develop a strong a belief in the value of what it is they are selling is key to making that a reality.
He warns businesses not to be too opportunistic when it comes to mapping out their growth plans for 2025 and beyond.
“To me, the big misstep is being opportunistic and not actually clearly articulating where you're going to get your growth from,” says Peter, adding that ‘chasing rabbits’ - coining a phrase from an old Russian proverb – will not be good for business. “It goes, ‘If you chase two rabbits, you will not catch either one’; it teaches us that trying to achieve two things at once will be unfruitful.”
Strategies to ensure your business remains competitive and aligned with the needs of 2025:
1. Embrace Digital Transformation Companies should invest in cutting-edge technologies such as artificial intelligence, machine learning, and automation to optimize operations, improve customer experiences, and streamline workflows. Additionally, businesses must adopt cloud computing to enhance scalability and flexibility, ensuring they can quickly adapt to market changes.
2. Focus on Sustainability Businesses should adopt eco-friendly practices, such as reducing carbon footprints, sourcing sustainable materials, and implementing circular economy models. Transparency in environmental, social, and governance (ESG) efforts will not only improve brand reputation but also ensure compliance with stricter regulations expected in the coming years.
3. Leverage Data-Driven Decision Making Companies must invest in analytics tools to gain actionable insights into customer preferences, market trends, and operational inefficiencies. By using predictive analytics, businesses can anticipate customer needs and stay ahead of competitors. Data privacy and security should also be top priorities to build trust with customers and comply with stringent data protection laws.
4. Prioritize Employee Development Businesses should prioritize reskilling and upskilling their employees to keep pace with technological advancements and market demands. Offering flexible work arrangements, fostering inclusivity, and creating a supportive workplace culture will also help attract and retain top talent in 2025.
5. Enhance Customer-Centricity Businesses should leverage omnichannel strategies to provide seamless and personalized customer experiences across digital and physical touchpoints. Incorporating AI-driven chatbots and virtual assistants can enhance customer support, while loyalty programs can help retain existing customers.
6. Adapt to Global and Local Trends Companies must stay informed about global market trends while tailoring their offerings to meet the unique needs of local consumers. Geopolitical shifts, supply chain disruptions, and economic volatility also require businesses to maintain agility and resilience.
7. Foster Innovation and Agility Encouraging creativity, experimenting with new ideas, and learning from failures are essential for staying relevant. Additionally, adopting agile methodologies can help organizations respond swiftly to changes in the market and customer demands. |
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The small Canadian businesses with high-growth potential and expectations might not be the ones you have in mind, says a new report from the Canadian Chamber of Commerce’s Business Data Lab (BDL).
The report, entitled Scaling Success: The Characteristics of High-Growth Small Businesses in Canada, shows that while many Canadians might think of the tech sector when thinking of firms with high-growth potential and expectations, the common characteristics for small businesses that are most likely to project high growth are, in fact, quite different. These firms typically:
The findings in the report do not come as a surprise, says Cambridge Chamber of Commerce President and CEO Greg Durocher, noting the important impact small and medium-sized businesses have on our economy.
“A lot of people, especially those in decision-making positions of the government, look at small businesses as ‘mom and pop’ organizations on ‘Main Street’, but overlook the fact that even the major employers we have in this country today all started off as small businesses,” he says, noting the success of a previous Cambridge Chamber program several years ago that promoted small businesses called Small Business Too Big to Ignore. “Everything starts small and it’s one step at a time to reach the pinnacle of corporate success.”
According to Statistics Canada, approximately 98.6% of businesses are considered small with less than 100 employees and historically, small businesses have been a key driver of job creation in Canada, employing nearly 70% of the private sector workforce. Despite slower employment growth over the last four years, small businesses continue to account for almost (43%) of all job gains.
Greg says the government, both federal and provincial, must recognize the fact that growing small businesses is the future of economic growth and prosperity in Canada.
Stronger government connections needed
“It’s kind of like nurturing a child. You want that child to be extremely successful and we as parents do things to help that child through the growing and learning years. It’s the same thing government needs to do for small businesses,” he says, adding this is particularly key for a growing number of businesses started by newcomers. “They are coming to Canada for an opportunity and in many cases, they are starting small businesses because they have skills or expertise in other areas but can’t find work, so they create their own opportunities.”
The report details how approximately 12% of small businesses project growth of 11% or more, compared to almost 8% of medium and large businesses. Three percent of small businesses believe they can achieve “high-growth status,” defined as annual growth of 20% or more.
To help small businesses scale effectively, the report recommends public policy that targets firms’ biggest challenges by simplifying financing, reducing regulatory burdens, fostering export growth, and prioritizing upskilling.
To assist, Greg says the government needs to create stronger connections with small businesses which isn’t easy since nearly one and half million exist in Canada and that their ‘voices’ are often watered down. More often, he says decision-makers can easily connect with much larger businesses since there are fewer of them.
“In most cases they are household names and really big companies,” says Greg, noting these same companies often rely on smaller businesses as suppliers. “But the fact of the matter is that small businesses really need a hand up and support to grow to become medium sized or larger employees.”
Chambers a conduit for government
He says Chambers of Commerce, located in most communities nationwide, are the ideal conduit for government to nurture connections with those smaller operations.
“The mantra of ‘Small Business Too Big to Ignore’ is something the Chamber network should be carrying as a banner. That’s our wheelhouse. We have a personal relationship with these businesses.”
The report also underscores increased input costs, inflation, difficulty attracting and retaining labour, and weak consumer demand as key challenges to growth. The most crucial factors for growth include access to financing, the ability to export, technological adoption and a supportive policy environment.
“Canada needs more high-growth firms,” says Marwa Abdou, the report’s lead author and BDL Senior Research Director. “Years of slow economic growth, low productivity and underinvestment have weakened our global competitiveness and resulted in declining living standards for Canadians. Historically, it’s small businesses that have been a key driver of job creation in Canada.”
Click here to read the full report. |
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A large majority of Canadian businesses are sluggish when it comes to the adoption of Generative Artificial Intelligence (Gen AI), according to the results of a recent report by the Canadian Chamber of Commerce’s Business Data Lab (BDL).
The 38-page report details how a multitude of barriers, along with a lack of trust in the new technology, could impede the adoption levels needed to improve Canada’s economic growth.
Locally, the report shows that 11% of businesses in Kitchener-Waterloo and Cambridge are "using", or "planning to use" Gen AI, compared to 18% in Toronto or 15% in Ottawa.
The report, Prompting Productivity: Generative AI Adoption by Canadian Businesses, underscores how Gen AI (referring to Large Language Models bases and the practical applications built on top of them) can help tackle one of the most significant economic challenges facing Canadian prosperity and standard of life — low productivity — while also exploring what is holding Canadian businesses back from adopting AI technologies.
The results detailed in the report, compiled from a survey of 13,327 businesses in January and February of this year, shows that larger businesses are nearly twice as likely to adopt Gen AI compared to smaller businesses. Overall, the data shows that one in seven businesses (roughly 14%) – mostly larger businesses and industries with highly educated workers – are Gen AI adopters.
Patrick Gill, BDL's Senior Director of Operations and Partnerships, and the report's lead author, says he's surprised more small businesses haven't been embracing this new technology.
“I’ve never run into a small business owner who wasn’t run off their feet and wearing multiple hats or wish they could replicate themselves,” he says. “But that’s the nice thing about this tool. With little or at no cost a small business owner or team can leverage this to fill in some of their existing skills gaps.”
According to the report, the top three industries adopting AI includes information & culture (31%), professional services (28%), and finance and insurance (23%). The two lowest to adopt are agriculture, forestry, and fishing (8%) and construction (7%).
Building trust an issue
Patrick says historically, larger businesses usually face more barriers adopting new technologies due to the fact their operations are more complicated and often have technology ‘stacked’ on top of each other.
“Smaller businesses usually face less of a challenge,” he says. “Their biggest challenge has usually been ‘Do I have the money right now to invest in a new technology?.”
Besides potential costs, trust is also a key issue.
“Public trust and the perception of AI will definitely play a crucial role in the adoption of the technology going forward,” says Patrick, noting a survey released last year indicated that Canada was the third most pessimistic country in the world and that only 38% of Canadians view AI in a positive light, slightly ahead of those in the U.S. and France.
Patrick says the Business Data Lab report also indicates that people are nervous about what the adoption of Gen AI will mean for their jobs and notes most agree change will come in the way they conduct their jobs, versus losing them outright.
“Right now, the technology is predominantly being used to augment workers’ abilities and not to replace them entirely,” he says, adding many are looking at Gen AI as a tool that can accelerate production and improve quality and services in effort to reduce costs. “That’s incredibly important during this time of a high-cost operating environment.”
From a global perspective as interest in Gen AI continues to grow, the report indicates that Canadian businesses need to move fast to gain a competitive advantage over global competitors. Low productivity and business investment puts Canadians’ prosperity and living standards at risk and its GDP per capita is now significantly below the U.S. and the OECD (Organisation for Economic Co-operation and Development) average.
Businesses must ‘innovate or die’
“Gen AI is a generational opportunity to boost Canadian productivity at a time when our performance is steadily headed in the wrong direction. The time to prompt productivity and act is now. Canadian businesses must innovate or die, and that means embracing Gen AI,” says Patrick. “While adoption has begun in every industry, it’s likely not fast enough for Canada to be competitive on the global stage, especially since three in four Canadian businesses still haven’t tried Gen AI yet.”
Based on two adoption scenarios (“fast” and “slow”), the Canadian Chamber of Commerce’s BDL projects that Gen AI adoption by Canadian businesses will reach a tipping point of 50% in the next three to six years. This may seem fast but is probably not fast enough to keep pace with global leaders. Businesses in the U.S., China and several European countries are investing heavily in AI, likely outpacing Canadian investment.
“Those who move first basically set the standards and capture the largest market share,” says Patrick. “And everyone else is perennially playing catch up.”
He hopes the findings in the BDL report may gently ‘nudge’ businesses into more experimentation when it comes to adopting Gen AI.
“There are so many low costs and no cost options available, so experiment and give it a try,” says Patrick, explaining how AI can assist with creating emails, marketing, and promotional content, and well as new visuals. “Use and test it and eventually you’ll find a way.”
Click here to the read the report.
Key findings from the report
Recommendations for business
Innovate or die: Canadian businesses need to move fast to gain a competitive advantage over global competitors. With Gen AI so accessible and applicable for every type of business, there is little excuse for Canadian businesses to sit on the sidelines.
Pilot projects that measure uplift: Start with small pilot projects to validate the feasibility and impact of Gen AI. Compare metrics (e.g., efficiency, costs savings and revenue generation) before and after its implementation.
Change management and employee training: Prepare employees for the adoption of Gen AI. Provide training sessions, workshops, and resources to help them understand the technology and develop new workflows.
Strategic alignment: Align Gen AI adoption with overall strategic goals. Identify where Gen AI can enhance existing processes, improve customer experience, or drive innovation.
Data infrastructure and governance: Invest in robust data infrastructure and governance practices. High-quality data is essential for training Gen AI models. Ensure data privacy, security, and compliance.
Talent acquisition and retention: Attract and retain talent skilled in Gen AI. Recruit data scientists, machine learning engineers and domain experts who can develop and deploy Gen AI solutions.
Investment in cloud infrastructure: Leverage cloud platforms for scalable computing power. Cloud services facilitate model training, deployment, and maintenance, allowing businesses to experiment and iterate efficiently.
Leverage public resources: Move faster by basing policies on the federal government’s Guide on the use of Gen AI or tapping available funding, such as the NRC’s (National Research Council of Canada) IRAP AI Assist Program. |
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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:
As the government enters the second half of its mandate, the OCC urges action to support:
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In the changing landscape of business, where uncertainty and rapid change are constants, effective leaders must adeptly manage chaos to ensure organizational resilience and success.
Navigating through tumultuous times requires a strategic and agile approach, says Linda Braga, Business & Executive Development Specialist with LMI Canada, which has provided leadership development for more than 50 years.
“I think there’s still a lot of uncertainty out there,” she says, referring to issues that now exist in workplaces surrounding remote working, labour shortages and retention. “I think leaders are still adapting to managing the workplace and the whole side of leading and actually developing their people because we are successful through our people.”
Unfortunately, Linda says developing employees now often takes a ‘backseat’ as company leaders navigate these issues, some of which have been magnified by major shifts in the workplace.
“There are four generations in the workplace right now and each come with different attitudes and different viewpoints,” she says, noting older employees prefer having that ‘physical’ presence in the office while younger ones are looking for more of a ‘social’ connection. “It’s about leaders being flexible and adaptable, and having more of an open mind to solicit feedback from their people. Empathy is huge right now.”
However, this could prove to be difficult considering statistics show that at least 60% of small and medium-sized businesses owners are aged 50 or older and many will soon be leaving their companies, making it harder for some to adapt to these dramatic workplace shifts before they retire.
Self-care important
To manage the chaos effectively, Linda leaders should first look at how they manage and lead themselves.
“I think it’s important they are able to put on their own oxygen masks first because they’re very busy dealing with the day to day trying to keep their companies running and keeping their employees happy,” she says, adding ‘self-care’ is something they should take seriously.
Linda says often leaders have difficulty asking for assistance, especially from their employees.
“Just because you’re a leader or manager, or a company owner, doesn’t necessarily mean you have all the answers and know everything,” she says. “That’s what I feel separates really good leaders from managers is that they empower their people.” As well, when it comes navigating uncertainty and rapid change, setting goals is key for leaders.
“It’s important for our leaders and managers to have crystal clear goals, which they need to communicate,” says Linda, noting there is a big difference between efficiency and effectiveness. “They can be really good at being effective and doing things the right way. But are they doing the right things? Even as a leader, are you hitting your own goals? All leaders should be able to look at themselves in a mirror and be self-aware.”
Some key methods for business leaders to manage chaos:
Develop a Resilient Mindset: Successful leaders should acknowledge that change is inevitable, viewing challenges as opportunities for growth rather than insurmountable obstacles. Embracing uncertainty allows leaders to respond with flexibility and creativity.
Establish Clear Communication Channels: Leaders must provide regular updates, share relevant information, and foster a culture of open dialogue. Clear communication helps employees understand the situation, reduces anxiety, and builds trust in leadership.
Prioritize and Delegate Effectively: Leaders must prioritize activities based on their impact on the organization's core objectives. Delegating responsibilities to capable team members ensures that tasks are handled efficiently, preventing overwhelm at the leadership level.
Encourage Adaptability: Business leaders should encourage employees to embrace change, learn new skills, and remain agile in the face of uncertainty. An adaptable workforce is better equipped to navigate chaos and contribute to innovative solutions.
Invest in Technology and Automation: Leveraging technology and automation can streamline processes and enhance organizational efficiency. Implementing digital solutions allows businesses to adapt quickly to changing circumstances and minimizes the disruptions caused by chaotic events.
Build a Diverse and Inclusive Team: A diverse team brings varied perspectives and skills to the table, enhancing the organization's ability to address challenges creatively. Inclusion fosters a collaborative environment where team members feel valued, increasing their commitment to overcoming chaos together.
Conduct Scenario Planning: Business leaders should engage in proactive scenario planning to anticipate potential challenges and devise strategies to address them. This foresight enables quicker and more effective responses when chaos unfolds, reducing the negative impact on the business.
Cultivate Emotional Intelligence: Leaders with high emotional intelligence can navigate uncertainty with empathy, providing support to their team members and maintaining a positive organizational culture.
Learn from Mistakes: Successful leaders acknowledge mistakes, learn from them, and apply those lessons to improve future decision-making. This adaptive learning approach contributes to organizational resilience.
Strategic Resource Allocation: Business leaders must strategically allocate financial, human, and technological resources to areas that will have the most significant impact on maintaining stability and achieving long-term objectives. |
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As technology continues to rapidly evolve, businesses are increasingly turning to Artificial Intelligence (AI) to streamline operations, enhance efficiency, and gain a competitive edge.
There is no question surrounding the benefits of integrating AI into business processes, but there remain legitimate concerns that accompany this technological leap.
One primary concern is the ethical implications of AI implementation. As AI systems such as ChatGPT, ClickUp, Copy.ai, or Kickresume become more sophisticated, they often require access to vast amounts of data to function effectively. This raises questions about privacy and the responsible use of sensitive information, as well as legal concerns surrounding the use of intellectual property.
“The question is fair use or is it a violation of copyright,” says Maura Grossman, Research Professor, School of Computer Science at the University of Waterloo, whose expertise centres on AI policy and ethics.
She notes that an AI user can reference a particular article, book, or poem, despite it being copyrighted. “It shouldn’t be able to do that because that’s a copyright infraction, but it can. The law hasn’t caught up with that yet but there are a number of legal cases now pending.”
Algorithms a concern
As well, Professor Grossman says bias in AI algorithms is another major concern. AI systems learn from historical data, and if that data contains biases, the algorithms can sustain and amplify them resulting in discriminatory outcomes and reinforcing existing social disparities.
“You’re going to find that in the language as well as the images. Open AI has spent a lot of time trying to remove toxic language from the system, so you get a little bit less of that with ChatPT,” she says, referring to the problems Microsoft experienced when it released its Tay bot in March 2016. The bot, under the name TayTweets with the handle @TayandYou, resulted in Twitter (now known as ‘X’) users tweet politically incorrect phrases and inflammatory messages resulting in the bot releasing racist and sexually charged messages in response to other users. Initially, Microsoft suspended the account after 16 hours, erasing the inflammatory tweets and two days later took it offline.
“Most systems, like ChatGPT, are trained on the internet and that has its pluses and minuses,” says Professor Grossman, adding ‘hallucinations’ pose another big problem for AI users. “ChatGPT for example is trained to generate new content and to sound very conversational, so it uses what it has learned on the internet to predict the next most likely word. But that doesn’t mean it’s telling you the truth.”
Official policy needed
She says there have been instances of people using AI to conduct legal research and submitting bogus case citations in court. “I think the first case happened recently in B.C., but it has also happened all over the U.S.,” says Professor Grossman.
For businesses utilizing AI, she recommends drafting an official policy to outline usage.
“First they need to have a policy and then need to train who in the business is going to use AI because people need to understand what it does well and doesn’t do well,” she says. “Your policy needs to say what permissible uses are and what impermissible uses are.”
Impermissible uses could include creating a deep fake video in the workplace.
“Even if it’s a joke, you don’t want employees creating deep fakes,” she says, noting the policy should also outline what workplace devices can be used for AI. “If you need to save something because you’re involved in a lawsuit, then you don’t want to it be on an employee’s personal device because you won’t have access to it.”
Employees require training
As well, Professor Grossman also recommends employees clearly know what AI tools are okay to use and which are not and ensure they are fully trained.
“You don’t want them violating intellectual property rules or other privacy rights. You also don’t want them putting into a public tool any confidential or propriety information,” she says. “Some companies have turned off the ability to use these AI tools because they are terrified employees will put propriety information out there while asking a question about a problem they are working on. If you’re using one of these open-source tools, it’s like Google or anything else; it’s free rein.”
Professor Grossman says rules and regulations around AI will be gradually strengthened, noting a new regulation coming into play in B.C. pertaining to issues surrounding intimate imagery is just one example.
“As soon as this starts making its way more into politics, we will start to see more effort into creating regulations,” she says, referring to a recent ‘deep fake’ image that surfaced of U.S. President Joe Biden.
Despite these issues, Professor Grossman says AI is something more businesses will become comfortable using and should embrace this new technology.
“It will save on efficiency,” she says, noting AI can greatly assist in the creation of marketing material. “Companies need to explore it and learn about it but learn about it in safe ways and understand where it can be beneficial and not just let people experiment on their own because that’s going to lead to a lot of trouble.”
AI hurdles in business
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While economic and technological shocks will always be a constant feature of our world, experts say small businesses must continue to adapt and innovate to stay competitive and satisfy consumer preferences.
“The adoption of technology should be the priority for small businesses and the adoption of AI where it can help bolster their business should also be a priority,” says Cambridge Chamber of Commerce President & CEO Greg Durocher, noting 98% of Canadian businesses qualify as small businesses.
In its recent report entitled, A Portrait of Small Business in Canada: Adaption, Agility, All At Once, the Canadian Chamber of Commerce touches on this issue as it explores the integral role small businesses in play in Canada’s economy and sheds light on how these businesses can thrive despite major economic forces working against them — including the rising cost of doing business, the highest borrowing costs in over two decades and increased pandemic debt loads.
The report, which defines ‘micro businesses’ as having 1-4 employees, ‘scale businesses’ as 5-19 employees, and ‘mature businesses’ as 19-99 employees, shows how small businesses of all sizes, ages and industries are already investing in technology to better access data and applications from their computers, tablets, or mobile phones — whether in the office or on the road — to connect better with their customers and employees. However, as the report indicates, a business’s size is important to its ability to not only adopt technology, but also take advantage of a variety of technology tools. The report finds that even more change is essential.
Greg agrees and says the need for smaller businesses to adopt artificial intelligence (AI) is especially imperative.
“In all probability, smaller businesses are less likely to adopt AI technology because they may be fearful of it,” he says. “But the fact of the matter is it may be the only tool that can bring them up and allow them to compete.”
AI and digital technologies
According to the report, across all industries, a higher proportion of small businesses planned to invest in AI and digital technologies. While 62% of micro firms (compared with an average of 55% for all small firms) expressed plans for the latter, 30% of mature firms were keen on investing in AI compared with the all-industry average of 24% for all small businesses. Scale and mature businesses were more likely to adopt multiple technology tools, especially those in finance and insurance, professional services, and wholesale trade.
“If they (small businesses) don’t get knee deep in AI from a business perspective, they may be missing the boat that was inevitably sent to save them,” says Greg.
The report also highlights trends to help small businesses adapt to how Canadian shoppers have evolved. While online shopping accelerated as a result of the pandemic, roughly 75% of Canadian shoppers still visit physical stores for key items like groceries, clothing, automotive, electronics, home and garden, and health products. To meet consumer preferences, businesses need to implement on and offline sales strategies to reach customers.
In the report, the critical importance of having an enticing online commercial presence is highlighted, with 83% of Canadian retail shoppers reporting they conduct online research before they visit a store. Having physical stores near customers also supports online sales, with nearly one in 10 Canadians making purchases online from retailers located nearby.
“There is still an opportunity for small businesses to capitalize on local business by advertising and marketing themselves locally,” says Greg. “But that doesn’t mean you shouldn’t have a strong online presence and look for every opportunity in which AI can help advance your cause.”
Canadian Chamber President & CEO Perrin Beatty says the findings in this report provides yet another signal that more focus is needed to support growth, especially among small businesses.
“We can start by reducing red tape, investing in infrastructure, and enabling an innovation economy,” he said in a press release. “These fundamentals of growth will increase Canadian businesses’ ability to compete and attract investment that will benefit Canadians, their families, and our communities.”
Click here to read the report.
Highlights of the report:
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Effective leadership communication is the cornerstone of any successful business or organization.
A leader's ability to convey their vision, build trust, and inspire others can determine the difference between an average outcome and an extraordinary one.
But to arrive at that point requires the ability to be a good listener.
“There’s a lot of people that listen but they don’t hear,” says career consultant and corporate soft skills trainer Murray Comber of Life Concepts. “You cannot be a good communicator unless you are a good listener. It’s all about understanding yourself and understanding others.”
Since 2001 he has trained more than 8,000 people, noting that many in the workplace don’t realize becoming a better communicator is a very learnable skill.
“It’s all about the pattern of human dynamics,” says Murray, adding that boards of education or even in families, do not teach people how they are hard wired. “I teach my clients that. I always say to them you need to know who you are, and you need to know who you are not.”
He says at least 71% of companies that fail do so because the leader didn’t understand who they were and who their employees were.
He admits this type of soft skills training is often considered ‘fluff’ and is usually one of the first things cut from the budget or put on the backburner when economic times get tough.
“The truth is when things are going south, that’s when they should be put on the front-burner,” says Murray. “Training shouldn’t be seen as an expense but as an investment.”
In terms of advice for business leaders looking to take their first step at becoming better communicators, he says there must be a willingness to learn and connect with employees not just as a manager with subordinates.
“What I’ve learned is that there is more emphasis put on product knowledge than there is people’s knowledge,” says Murray. “When you respond to what you’ve heard and have listened, you build trust with your employees and good communication is built on trust.”
To lead effectively, one must be a skilled communicator who can inspire, guide, and unite a team. A few things to consider:
By honing these skills, leaders can create a positive and productive work environment, foster strong relationships with their teams, and achieve success in their leadership roles. |
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Brian Rodnick 231 February 7, 2025 |
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Greg Durocher 41 July 28, 2023 |
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Canadian Chamber of Commerce 24 January 29, 2021 |
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Cambridge Chamber 2 March 27, 2020 |