Business leaders are enjoying an upswing in confidence as shown through their expectations for several business metrics, according to two 2012 Ipsos Reid-Business in Vancouver quarterly business outlook surveys.
The most recent survey, conducted between April 2 and 10, found a continuation of trends first apparent in the first survey, conducted February 3 through 9.
Among those trends, business leaders believe:
•their profits will grow;
•they will make large capital purchases; and
•they will hire staff.
Confidence that sales would grow (55%) stayed relatively flat with 2012's first quarter (57%).
"This shows that there is greater optimism among business leaders," said Ipsos Reid West senior vice-president Catherine Dawson, who oversaw the surveys.
"They are seeing that things are going to get better. It's not just the first blush of the year feeling positive about things."
More of the 170 business leaders surveyed in April (41%) are optimistic about the B.C. economy as a whole than fear that it will get worse (22%). That compares with only 25% of business leaders who were optimistic about the province's economy in October. Back then, 40% of respondents believed B.C.'s economy would get worse.
Past surveys have supported the theory that business leaders are optimistic – a disposition that likely spurred many to go into business.
As in past studies, respondents were more positive about the future of their businesses than they were about their sector as a whole.
For example, while 55% of respondents believe their sales will get better, only 41% of business leaders surveyed believe their entire sector will enjoy that same growth.
Similar disparities are evident when the business leaders projected:
•profit increases for their own business (49%) compared with their sector (33%);
•employment increases for their own business (37%) compared with their sector (30%); and
•large capital expenditures for their business (36%) compared with their sector (26%).
Unlike past surveys, the April poll asked business leaders about how concerned they were that key staff would retire.
Employers tended to estimate that 10% of their workforce would retire in the next three years – a percentage that surprised Dawson for being so low.
Of those who have employees nearing retirement, 69% of employers said they're not worried about finding qualified people as replacements.
"I'm wondering if they believe that people will continue to work longer than they previously anticipated," she said. "It may be a warning sign that employers should consider this more." •
