The prospect of mass vaccinations against COVID-19 is in sight this year, but businesses in the Lower Mainland aren’t expecting it to result in an economic panacea.
Almost half (48%) of Great Vancouver Board of Trade (GVBOT) members anticipate lower revenue in the next three to six months compared with prior to the pandemic, according to survey results released Tuesday (January 19).
A similar proportion (44%) reports plans to reduce business investments in the next 12 months compared with pre-COVID years.
“While many hoped that the new year would offer some light at the end of the COVID-19 tunnel, these results show that many businesses are barely treading water as they enter 2021,” GVBOT president and CEO Bridgitte Anderson said in a statement.
“The near-term outlook is uncertain, with many leaders anxious about what the future holds for their businesses. Our entrepreneurs are resilient and are investing and pivoting to digital as they forge a path that will help them to not only navigate the pandemic but guide our region to prosperity in the future.”
For those that are investing, 63% of respondents plan to put their money into expanding digital technology and capabilities for e-commerce and sales compared with the 8% who plan to reduce such investments.
Almost half (49%) of GVBOT members do not believe the province is providing enough support to ensure they can stay intact amid the turmoil.
But it appears very few have applied for provincial programs: just 10% of respondents report applying for the Increased Employment Incentive and 13% have applied for the SME Recovery Grant.
The GVBOT found a lack of awareness and not meeting the criteria for the SME grant were the main reasons for the lack of sign-ups.
Among federal programs, the Canada Emergency Wage Subsidy has proven most popular with respondents giving it an average rating of 4/5 compared with 3.2/5 for the Canada Emergency Business Account and 3/5 for the Canada Emergency Rent Subsidy.
The Highly Affected Sectors Credit Availability has proven least popular, earning a rating of 2.4/5.
“Once government support programs end, approximately half of businesses (that have used government supports) expect business to return as usual but the other half anticipate layoffs, reduced hours, more debt among other steps,” the GVBOT survey stated, referring to the 49% of respondents who expect to return to business as usual.
A larger workforce doesn’t appear to be in the cards for most respondents, with 34% revealing they plan to reduce their headcount in the next 12 months compared with 22% who plan to boost the number of workers on their respective payrolls.
Among respondents who’ve already reduced staff amid the pandemic, those businesses report having laid off an average of 70 employees.
Significant upheaval in the workplace brought on by COVID-19 is also expected to linger throughout the year with 70% not anticipating bringing office workers back until the summer or later.
The majority of respondents (62%) plan to expand work-from-home policies, while 70% will be increasing their reliance on digital means for communications, sales and meetings.
Just 5% believe they will be increasing their office space requirements.
The survey, conducted January 5-12, is based on responses from 134 GVBOT members and was completed with assistance from the Mustel Group.
