Nearly 70% of mid- to large-sized Canadian businesses expect return to pre-pandemic levels in 6 months or less
Although 54% of the businesses surveyed said their revenues had been impacted by the pandemic, either moderately or significantly, 23% said their company’s sales and revenue are now about the same as pre-pandemic, with another 23% stating they were doing better than before the crisis, according to Scotiabank’s 2021 Canadian Business Outlook report.
Looking ahead, 78% of respondents said they were feeling optimistic about their company’s future, according to the survey conducted among Canadian businesses with annual revenues between $5 million and $500 million.
“Canadian business owners have demonstrated remarkable resiliency throughout the pandemic, pivoting quickly and continuously adapting their operations to survive – and in some cases, thrive,” said Kevin Teslyk, Executive Vice President, Canadian Business Banking, Scotiabank.
“In fact, when listening to our clients, what we’ve consistently heard is that the pandemic has been a wake-up call to re-think their long-term priorities. With the economy expected to stabilize and grow over the coming months, many businesses are experiencing a renewed sense of hope for their futures.”
It was a very difficult year for many businesses in 2020, with the pandemic and the restrictions aimed at slowing the spread of the coronavirus taking a toll on customer traffic and revenues for many sectors.
The online survey, conducted on Scotiabank’s behalf by Maru Blue between Feb. 18 and Feb. 22, polled more than 300 businesses across the country about the impact of the pandemic, their response and outlook for the year ahead.
Among the mid- to large-sized companies surveyed, 36% saw revenues moderately impacted, while 16% were significantly impacted and 2% had to temporarily cease operations.
The survey showed that companies tapped the available support programs during the pandemic, with 63% noting government or bank relief programs as a critical source of support during this difficult period. As well, 78% said support from their financial institution helped them invest for growth, capitalize on new opportunities and plan for their future.
As vaccines are rolling out in Canada and around the world, there is optimism for the months ahead. Canada is expected to continue to see a solid economic recovery in 2021, Scotiabank Economics said in a recent report. In fact, Scotiabank Economics expects the Canadian GDP to grow by more than 6%% in 2021.
The findings of the latest Scotiabank study also show that Canadian businesses are not only expecting improved economic conditions, but 81% intend to invest in their companies in preparation as well. Those planned investments in the next six months will be directed towards increasing technological capabilities or tools (53%), expanding product offerings or services (52%), adding or enhancing their digital and online capabilities (49%) or hiring more employees (45%).
And 53% of the businesses polled said they believe their companies will be changed in some ways for the better once the pandemic has passed.
“Through conversations with clients, it has been astonishing to witness the strength and resilience of Canadian businesses and the creative ways they have adapted to our current situation,” Teslyk said in the report.
“From developing new strategies and infrastructure to pivoting onto new products and opportunities, one in four companies report their sales and revenues levels are equal to pre-pandemic levels.”
To learn what 5 Key Priorities for Recovery and Growth businesses should focus on for the year ahead, visit our Commercial Banking knowledge centre here.