Small B.C. businesses losing money due to construction: CFIB

They’re often necessary but construction projects appear to be costing small business owners a lot of money.

The Canadian Federation of Independent Business (CFIB) says nearly 42,000 small businesses in B.C. have reported losing revenue because construction is making it harder for customers to access their storefront.

“When public construction projects extend beyond their established timelines, it prolongs the impact of these disruptions. On average, B.C. small firms endured 518 days of construction-related disruptions over the past five years,” it says in a release.

Other issues include dealing with traffic closures and congestion, dust, debris, and a lack of parking options near the business.

“Now, imagine dealing with it for well over 500 days. Sadly, this is a reality for too many B.C. small businesses,” said Senior Policy Analyst and report co-author Emily Boston.

The CFIB finds, on average, businesses lost 18 per cent of their revenues during a significant construction project and spent as much as $6,000 on expenses like cleaning and repairs due to construction.

“Customers and staff having trouble accessing their business or finding parking (49 per cent), significant stress (23 per cent) and decreased sales (49 per cent) also impact B.C. small businesses in construction zones,” explained the CFIB.

At least 76 per cent of small businesses also feel they should be compensated by the government when a public construction project affects them.

“We’re not asking governments to stop upgrading roads or repairing sewers. Public infrastructure projects are important, but when they drag on for years, it’s difficult for businesses to survive in the meantime,” added Boston.

“A large portion of construction costs can be avoided with better planning, execution, and by giving more consideration to the reality of local businesses.”

The CFIB suggests all levels of government come up with a comprehensive mitigation plan to help small businesses thrive, even if construction disrupts day-to-day operations.

The report also finds many small businesses close for good before being able to reap any benefits of any construction project.

-With files from The Canadian Press