Businesses concerned about rising costs and supply chain problems
Almost half of Alberta businesses cite the rising cost of inputs as an obstacle heading into 2022
By Rob Roach, ATB Economics 29 November 2021 1 min read
Conducted from October 1 to November 5, Statistics Canada's Survey on Business Conditions asked businesses about their expectations over the next three months and found that 35% of respondents in Alberta expected their profitability to decline compared to 13% who expected it to increase.
This is an improvement over the numbers collected in April, when 42% of Alberta businesses expected their profitability to decline compared to 9% who expected it to increase.
Looking ahead over the next 12 months, optimism outweighs pessimism with 63% of businesses saying they are very or somewhat optimistic versus 23% saying very or somewhat pessimistic. (About 15% of respondents said the future outlook of their business is unknown.)
Back in April, the numbers were a bit better, with 68% in the optimistic camp and 15% feeling pessimistic.
In terms of the obstacles facing Alberta businesses, inflation and supply chain issues were top of mind for many respondents with 46% citing the rising cost of inputs, 36% the cost of insurance, 33% transportation costs, 29% difficulty acquiring inputs, products or supplies domestically, and 20% difficulty acquiring inputs, products or supplies from abroad.
Answer to the previous trivia question: According to Spotrac.com, Connor McDavid of the Edmonton Oilers is the highest paid NHL player at US$15 million for the 2021-22 season.
Today’s trivia question: When did the modern Canada-US softwood lumber dispute begin?