Metro Vancouver businesses say rising costs top of mind

The Greater Vancouver Board of Trade (GVBoT) says Metro Vancouver businesses are having a tough time stemming the tide of rising inflation.

A survey by the GVBoT has found that more than half of businesses surveyed are worried about inflation. Meanwhile, 43 per cent of respondents cited rising interest rates as an obstacle in the first quarter of 2023, while 36 per cent said rising real estate costs and recruiting skilled employees were the main concerns.

Nearly half — 48 per cent — of those surveyed anticipate an increase in operating expenses over the coming three months, while one per cent less say they foresee a decrease in profitability being an issue.

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Amid pressure on operating costs, customers may expect to pay for those increases. Sixty-five-per-cent of businesses say they are likely to pass on lingering pandemic debts and inflationary costs.

Persistent labour shortages, lack of skilled workers, and retirements are some of the other issues troubling entrepreneurs.

“The labour challenges and borrowing costs of the past year are beginning to manifest in a liquidity crunch that will put many of the businesses still carrying significant debt from the pandemic at risk,” said GVBoT President and CEO Bridgitte Anderson.

“We need governments laser-focused on reducing barriers associated with doing business in our region and creating efficient permitting processes, not increasing costs and fees.”