Canada remains steadfast in its optimism despite less than rosy fiscal
Three in five businesses expect to see an increase in revenue in 2013
57 per cent expect at least moderate growth in Canada's economy
Economic confidence has increased 20 per cent (to 63 per cent) since Q1
Booming Western provinces are more positive about Canada's economy than
others, with the majority (58 per cent vs. 46 per cent) expressing a
favourable opinion of Canada's economic prospects
MISSISSAUGA, ON, Feb. 19, 2013 /CNW/ - As policy makers south of the
49th parallel toiled to manage spending at the close of 2012, Canadian
business leaders seem to have adopted a surprisingly bullish stance
regarding their economic prospects for 2013.
According to a quarterly survey of Canadian businesses commissioned by
UPS Canada and conducted by Leger Marketing, three in five business
leaders believe that they will see more revenue in 2013 than they did
in 2012. The majority of business leaders (57 per cent) expect at least
moderate growth in Canada's economy in the coming year.
"Canadian businesses have certainly been keeping a close eye on the
pulse of the economy south of the border and globally. Yet, despite
significant uncertainty, it is reassuring to see such a groundswell of
optimism in Canadian business circles as we move into 2013," said UPS
Canada vice- president, Nicolas Dorget.
According to the survey, economic confidence increased substantially
since Q1 2012 when only 45 per cent of businesses felt they would see
growth over the next quarter compared to 63 per cent at the end of
2012. Confidence has also increased since Q3 when 54 per cent of
businesses predicted growth.
Projections and Goals
This optimism has also fuelled strong projections as businesses put
plans into place for 2013. More than one third of businesses expect to
increase growth by five to 10 per cent this year, while over 20 per
cent of businesses have ambitions to increase growth by more than 10
per cent. Other notable goals for business leaders include:
Enhancing social media capabilities
Increasing the amount spent on marketing
Launching a new social media campaign
Building e-commerce capabilities
Facing the various global economic challenges and fiscal cliff of 2012,
Canadian businesses' view on export has been influenced. Still, the
Federal government encourages businesses to diversify into
international trade. The most recent survey suggests that:
Six per cent of businesses plan on increasing exports to the U.S.
Four per cent of businesses plan on increasing exports to Asia
Five per cent of businesses plan on increasing exports to other regions
"While it's encouraging to see optimism mounting among Canadian business
leaders, it's also important to note that now - perhaps more than ever
- trade diversification should be looked at as a key tactic for any
business looking to expand," said Dorget. "By capitalizing on new and
emerging markets, business owners can significantly increase their long
term growth prospects."
While confidence is strong, businesses do anticipate some challenges for
2013. Twenty per cent of business leaders feel increased competition
will be their greatest challenge, while one in ten anticipate having
difficulty finding qualified employees. Increased competition within
local markets could fuel the need to expand outside Canada to new
markets; a positive differentiation for any business.
Conversely, one in six business leaders do not anticipate encountering
any major challenges in 2013. In fact, 20 per cent of small-to-medium
sized businesses believe they are poised to avoid any major challenges
in the coming year. Large businesses, on the other hand, are less
optimistic with only 10 per cent expecting to avoid major hurdles.
About the survey
From November 13 - 18, 2012, Leger Marketing conducted an online survey
among a sample of 250 Canadian business decision makers (CEO, executive
level, senior managers). The margin of error for a sample of this size
is accurate within 6.20 per cent, 19 times out of 20. For the purposes
of this study, small to medium businesses employ 1 to 99 individuals
and companies who employ 100 or more are considered to be large
UPS (NYSE: UPS) is a global leader in logistics, offering a broad range
of solutions including the transportation of packages and freight; the
facilitation of international trade, and the deployment of advanced
technology to more efficiently manage the world of business.
Headquartered in Atlanta, Ga., UPS serves more than 220 countries and
territories worldwide. The company can be found on the web at UPS.com
and its corporate blog can be found at blog.ups.com. To get UPS news direct, visit pressroom.ups.com/RSS.
SOURCE: UPS Canada Ltd.
For further information:
Erick Bauer, APEX PR