The head of the Windsor-Essex Regional Chamber of Commerce does not want to be pessimistic, but Matt Marchand says Ontario faces a lot of economic challenges.
The new Ontario Economic Report, the first snapshot of business confidence produced by the Ontario Chamber of Commerce, details each of those challenges.
While 62% of business owners say they are confident in their own company's economic outlook, only 24% share the same optimism for the province.
Marchand says there's a list of reasons why ,and unless Ontario can address each challenge, more companies may lose confidence in their ability to stay profitable.
File photo courtesy of © Can Stock Photo Inc. / epantha
"The high electricity prices -- the Cap and Trade program which is basically a carbon tax -- the cost structure in Ontario to do business has really risen substantially over the past couple years," Marchand says pointing out just one obstacle.
Even before the future of the North American Free Trade Agreement is determined, companies also identified as a problem uncertainty over trade. The report says Ontario exports just a third of what it produces, down from half.
"That's something that we have to as a region and as a province address because wealth is generated by exports," Marchand adds.
Both the manufacturing and agri-food sectors in Windsor-Essex are heavily reliant on exports, and Marchand says it is a major priority for the local chamber.
(Photo by Natalia Vega)
A third major challenge may surprise some. Marchand says many companies are having trouble finding qualified workers, and not just skilled-trades workers, but even semi-skilled workers. He says despite a lower unemployment rate, the participation rate in the labour market is falling and jobs across all sectors are going unfilled.
The sum of these uncertainties, says Marchand spells trouble for the Ontario economy as companies sit on cash instead of reinvesting in themselves.
"It's kind of steady as she goes, but no feeling that they need to expand," he says.
