Leaders more cautious around staffing levels
The majority of business leaders in British Columbia expect to see more activity in the province's economy in the coming year, according to a new study.
The 2010 Business in Vancouver Business Confidence Study, conducted by Ipsos Reid, surveyed 1,044 business leaders including CEOs, partners, executives and directors.
The study found 61 per cent of respondents predict a higher overall level of activity in the B.C. economy in the next 12 months compared to only 19 per cent who expect a lower level and 20 per cent who expect no change.
When thinking of their own business's prospects for 2010, a majority are counting on higher sales (61 per cent) and profits (56 per cent) compared to only 18 per cent who expect lower sales and 22 per cent who expect lower profits.
Employment levels are not viewed as optimistically, but respondents feel there will be at least some recovery in the next 12 months. One-half expect staffing levels to remain the same, while 34 per cent expect to hire and 15 per cent foresee layoffs.
“What a turnaround one short year makes. In this poll, we have seen optimism return with a vengeance, and business leaders really feel as though we have turned the corner. However, we will have a way to go before we return to the optimistic days of 2008," said Steve Mossop, president of Ipsos Reid Canada West.
All of B.C.’s main industries are making a solid contribution to the future overall well-being of the province’s economy, according to respondents. Tourism leads the pack of industries making a high contribution (95 per cent) along with the high tech/information technology sector (90 per cent), other resource based industries (81 per cent) and retail (80 per cent).
Respondents predict high tech (29 per cent), tourism (25 per cent) and green energy/clean technology (16 per cent) are the sectors likely to generate the most economic activity and jobs in B.C.
However, respondents identified some challenges for the coming year. One-third see government-related issues, such as the harmonized sales tax and political leadership, as being a challenge. Business specific issues, such as being competitive and innovative, are a challenge for 18 per cent of respondents and labour issues, particularly unemployment, are a challenge for 17 per cent of respondents.
Also, 13 per cent of respondent are worried about issues related to the value of the Canadian dollar and 11 per cent are concerned about the impact of the 2010 Olympic Winter Games.
