Metro Vancouver inflation, property tax top of mind for business owners: report
Posted March 29, 2023 5:32 pm.
Last Updated March 30, 2023 2:42 pm.
It looks like inflation continues to be a top concern for business owners in Metro Vancouver, according to a new data.
The “top five obstacles” that businesses are anticipating for the next three months are rising inflation, costs of inputs, real estate, leasing or property taxes, recruiting and retraining skilled employees, and rising interest rates and debt costs. This is according to data from the Greater Vancouver Board of Trade (GVBOT) and the Business Data Lab.
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A release from the GVBOT says more than half of the businesses surveyed through The Canadian Survey of Business Conditions are expecting an increase in operating expenses.
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About 34 per cent also reported a “meaningful decline in profitability” and “cash reserves.”
Bridgitte Anderson, the president and CEO of the GVBOT, says she believes business owners will have no choice but to pass these costs along to customers.
“Higher interest rates are putting upward pressure on the cost of inputs, borrowing, and virtually every expense associated with owning and operating a business,” Anderson said.
“With no relief in the recent provincial budget and a 10.7 per cent property tax increase in Vancouver, many business owners will have no choice but to pass these costs along to consumers in the form of higher prices.”
“All of these cost increases are making it more challenging for businesses to implement new technologies or make long-term investments. As operating expenses go up and profitability expectations go down, business owners are certainly feeling the squeeze.”
