The BDC recently published a paper with questions and answers relative to the outlook for small businesses for 2023. Some of the more pertinent ones are worth mentioning here as they could impact your planning as you look down the road.
The question of a possible recession in Canada keeps coming up. After exploring the technical definition of a recession finally they conclude that while the economy is going to slow down, we will avoid a recession. Broadly speaking, this should mean business as usual in T-shirts.
The next significant question is the outlook for the Canadian dollar versus the US dollar because just about everything we consume in producing imprinted garments in Canada comes from the US and offshore. It’s projected here that downward pressure on the CAD will continue which could mean higher consumable prices for stuff like chemicals and ink. But time will tell and is mostly in the hands of the big manufacturers.
A big question is about workers. Apparently 2023 could be difficult in this regard because job vacancies are still high and retirements are at a peak. We’re being told that labour shortages will be with us for some time yet in Canada.
And related to the labour availability question, is the question about where wages are going. They will continue to rise but not as the same rapid pace as in late 2022. The projection is an average wage rise across the country of 4 percent in 2024.
So, plan accordingly.