BC Business Leaders See Green Lights Ahead on the Road to Recovery
61% Of C-suite executives in BC expect business to improve in 2010
High tech (29%), tourism (25%) and green energy/clean technology (16%) are the sectors likely to drive the most economic activity and jobs in BC
Thursday, February 04, 2010
Vancouver, BC – In one of the largest surveys of BC's C-suite level decision makers ever conducted in the province, the 2010 Business in Vancouver (BIV) Business Confidence Study conducted by Ipsos Reid reports favourable business prospects for 2010. Among the 1,044 BC business leaders surveyed, a majority represent president/CEOs, owner operators, partners, executives and directors, with businesses operating across BC, and in various sectors and company sizes.
BC business leaders' views of the economy appear to have turned the corner with 61% expecting a higher overall level of activity in the BC economy in the next 12 months compared to only 19% who expect a lower overall level of economic activity and 20% who expect a status quo. When thinking of their own business or company's prospects for 2010, a majority are counting on higher sales (61%) and profits (56%) compared to only 18% who expect lower sales and 22% who expect lower profits. This yields a net positive momentum score of +43 for higher sales and +34 for higher profits.
Employment levels are not viewed as optimistically, but BC's business leaders feel there will be at least some recovery in the next 12 months. Half of business leaders say there will be no change in employment levels for their company/business; with a net momentum score of +19 (34% higher and 15% lower). The prospects for capital expenditures while lower, also show signs of a positive momentum (45% expect no change, 32% higher, 23% lower).
Despite this glimmer of hope, business leaders in the province are far from the rosier economic times of 2008. Two years ago, BC's business leaders' prospects for higher sales (73%), profits (68%), and employment levels (45%) were all more than 10 points higher and even expectations for higher capital expenditures were 8 points above 2010 levels (40%).
Steve Mossop, President of Ipsos Reid Canada West comments, "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."
What's keeping these senior business leaders in BC up at night? What do they see as obstacles in the coming year? The main issues and challenges facing BC businesses in the next 12 months are the new realities of today's economic climate. There are a number of government related issues (33%) such as the harmonized sales tax, a balanced budget, political leadership, and regulations; business specific issues such as being competitive and innovative (18%); labour issues, particularly unemployment (17%); US related issues around the exchange rate (13%); and a few are concerned about the impact of the 2010 Olympic Winter Games (11%).
"The survey also sheds light on some really critical business concerns that have been obscured by less substantial and over-hyped issues of the day," adds Timothy Renshaw, Managing Editor with Business in Vancouver. "For example, the fundamental soundness of the U.S. economy in 2010 is rightly seen as a key concern for business in this province, as is the potential disruptive fallout from BC public sector contract negotiations this year. The mixed reviews given the impact of government stimulus packages are encouraging. They show that a lot of business people realize that papering over the numerous cracks in our economic system with taxpayer money is not a long-term solution."
According to BC's business leaders, all of BC's main industries are making a solid contribution to the future overall well being of the province's economy. Tourism leads the pack of industries making a high contribution (95%) along with the high tech/information technology sector (90%), other resource based industries (81%), and retail (80%). And as we head out of the recession, even the financial services industry (67%) and the green energy/clean technology industry (66%) are viewed as high contributing sectors by two thirds of business leaders.
In fact, the green energy/technology industry appears to have joined the top ranks of tourism and high tech as the industries that are going to make the difference in contributing to future economic growth in the province. BC business leaders name high tech (29%), tourism (25%) and green energy/clean technology (16%) as the sectors likely to generate the most economic activity and jobs in BC.
These are the findings of the 2010 Business in Vancouver (BIV) Business Confidence Study conducted by Ipsos Reid from January 4 to January 17, 2010 with 1,044 business decision makers in British Columbia. The online survey results were weighted to ensure that the composition of respondents reflects BC companies according to company size. With a sample of this size, the results are considered accurate within 3 percentage points, 19 times out of 20, of what they would have been had the entire population of business decision makers in British Columbia been polled. The margin of error for sub-samples may be higher.
For more information on this news release, please contact:
Senior Vice President
Senior Research Manager
About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.
To learn more, please visit www.ipsos.ca .
Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.
Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe. Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2008, Ipsos generated global revenues of €979.3 million.
Visit www.ipsos.com to learn more about Ipsos offerings and capabilities.
Ipsos, listed on the Eurolist of Euronext – Comp B, is part of SBF 120 and the Mid-100 Index, adheres to the Next Prime segment and is eligible to the Deferred Settlement System. Isin FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP