CPABC in Focus November/December 2016 | Page 25

Each year , CPABC conducts the Business Outlook Survey to measure members ’ perceptions of the current and future economic climate in BC , in Canada , and internationally . Members are also asked to share their thoughts on : the challenges to business success , the performance of government in supporting BC businesses , and how to stimulate economic activity in the province and in their local communities . Responses are analyzed regionally and a year-to-year comparison is made . A summary of the 2016 survey results follows .

Perceptions of the economy – BC , Canada , and internationally Consistent with results from the past two years , the 2016 survey results revealed considerable optimism about BC ’ s economy , with 62 % rating it as “ good ” or “ excellent .” This positive outlook also extends to the future , with one-quarter of respondents saying they expect BC ’ s economic performance to improve within the next two years . Additionally , one-third of respondents indicated that they expect the Canadian , American , and Asian economies to improve within the same time period . When comparing BC to the rest of Canada , 36 % of respondents predicted that BC ’ s economy will grow faster than the Canadian average over the next two years . This percentage is up from 2014 ( 29 %) and 2015 ( 30 %), indicating an increasingly positive outlook for the provincial economy among CPAs .
Challenges to business success For the third year in a row , the ability to attract and retain high-calibre employees and / or skilled labour was ranked as the number one challenge to business success in BC , with 84 % of survey respondents rating it as a “ major ” or “ moderate ” challenge . Other challenges identified were government red tape ( 72 %), the ability to raise capital ( 68 %), personal taxation ( 64 %), and consumer confidence levels ( 59 %). This year ’ s survey showed a significant increase in concern regarding housing prices , with 91 % of respondents identifying the price of housing in BC as a “ major ” or “ moderate ” challenge compared to 78 % of respondents in 2015 . Commodity prices ( 74 %), the value of the Canadian dollar versus the US dollar ( 71 %), and transportation and infrastructure ( 73 %) completed the list of the top four economic challenges to business success in BC .

91 % of respondents identified the price of housing as a “ major ” or “ moderate ” challenge , up from 78 % in 2015

Governments ’ support of business As was the case last year , favourable opinions about governmental performance in creating a good climate for business and investment in BC were low . The provincial government rated the highest at 39 % ( rated “ good ” or “ excellent ”), followed by the federal government at 34 %, and municipal government at 30 %. Comparing results regionally , members in the Lower Mainland viewed the provincial government ’ s performance less positively ( 37 %) than those residing on Vancouver Island ( 45 %) or living elsewhere in the province ( 46 %). When asked how the BC government could improve the provincial economy , respondents identified the following as top priorities : improving regional economic development , reducing government red tape , and increasing fiscal responsibility at the municipal level . Almost two-thirds ( 64 %) of respondents said they think BC ’ s tax rates and incentives are competitive ; however , half of all respondents also indicated that any increase in provincial tax rates would have a negative impact on business investment plans — whether for their company or their clients . Asked what would help stimulate BC ’ s economy , a majority of respondents ( 74 %) said that offering tax credits for investment in training and education would help small businesses scale up . Slightly less than half ( 44 %) of survey respondents said they expect their business performance to expand over the next two years . When asked if their organization had put investment plans on hold , onequarter of respondents answered in the affirmative . Respondents working in smaller organizations with fewer than 20 employees were more likely ( 58 %) to have put investment plans on hold . Economic concerns , along with permits and regulatory approvals , were the primary reasons for holding back on investment .
ABOUT THE CPABC BUSINESS OUTLOOK SURVEY The CPABC Business Outlook Survey was conducted between August 22 and September 6 , 2016 , as a self-administered online survey . A total of 3,622 CPABC members completed the survey , resulting in a 17 % response rate . The maximum margin of error was +/ - 1.5 %, 19 times out of 20 . The survey was managed by NRG Research Group , an external market research supplier . Of those members who completed the survey , most reside in the Lower Mainland ( 73 %), followed by Vancouver Island / Coast ( 13 %) and Thompson / Okanagan ( 8 %). Nearly half of all survey respondents work in industry ( 49 %), with government services ( 15 %), finance and insurance ( 9 %), manufacturing ( 8 %), and construction ( 7 %) being the most common business sectors . Nearly one-third ( 27 %) work in public practice . One-third of survey respondents hold senior or executive management roles within their organization , and over half ( 55 %) work for an organization with more than 50 employees . To learn more about this year ’ s survey , download the 2016 CPABC Business Outlook Survey report online at bccpa . ca , under the News , Events & Publications tab .
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