MISSISSAUGA, ON, Feb. 19, 2013
Canada remains steadfast in its optimism despite less than rosy fiscal forecast
MISSISSAUGA, ON, Feb. 19, 2013 /CNW/ - As policy makers south of the 49th parallel toiled to manage spending at the close of 2012, Canadian business leaders seem to have adopted a surprisingly bullish stance regarding their economic prospects for 2013.
According to a quarterly survey of Canadian businesses commissioned by UPS Canada and conducted by Leger Marketing, three in five business leaders believe that they will see more revenue in 2013 than they did in 2012. The majority of business leaders (57 per cent) expect at least moderate growth in Canada's economy in the coming year.
"Canadian businesses have certainly been keeping a close eye on the pulse of the economy south of the border and globally. Yet, despite significant uncertainty, it is reassuring to see such a groundswell of optimism in Canadian business circles as we move into 2013," said UPS Canada vice- president, Nicolas Dorget.
According to the survey, economic confidence increased substantially since Q1 2012 when only 45 per cent of businesses felt they would see growth over the next quarter compared to 63 per cent at the end of 2012. Confidence has also increased since Q3 when 54 per cent of businesses predicted growth.
Projections and Goals
This optimism has also fuelled strong projections as businesses put plans into place for 2013. More than one third of businesses expect to increase growth by five to 10 per cent this year, while over 20 per cent of businesses have ambitions to increase growth by more than 10 per cent. Other notable goals for business leaders include:
Facing the various global economic challenges and fiscal cliff of 2012, Canadian businesses' view on export has been influenced. Still, the Federal government encourages businesses to diversify into international trade. The most recent survey suggests that:
"While it's encouraging to see optimism mounting among Canadian business leaders, it's also important to note that now - perhaps more than ever - trade diversification should be looked at as a key tactic for any business looking to expand," said Dorget. "By capitalizing on new and emerging markets, business owners can significantly increase their long term growth prospects."
While confidence is strong, businesses do anticipate some challenges for 2013. Twenty per cent of business leaders feel increased competition will be their greatest challenge, while one in ten anticipate having difficulty finding qualified employees. Increased competition within local markets could fuel the need to expand outside Canada to new markets; a positive differentiation for any business.
Conversely, one in six business leaders do not anticipate encountering any major challenges in 2013. In fact, 20 per cent of small-to-medium sized businesses believe they are poised to avoid any major challenges in the coming year. Large businesses, on the other hand, are less optimistic with only 10 per cent expecting to avoid major hurdles.
About the survey
From November 13 - 18, 2012, Leger Marketing conducted an online survey among a sample of 250 Canadian business decision makers (CEO, executive level, senior managers). The margin of error for a sample of this size is accurate within 6.20 per cent, 19 times out of 20. For the purposes of this study, small to medium businesses employ 1 to 99 individuals and companies who employ 100 or more are considered to be large businesses.
UPS (NYSE:UPS) is a global leader in logistics, offering a broad range of solutions including the transportation of packages and freight; the facilitation of international trade, and the deployment of advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, Ga., UPS serves more than 220 countries and territories worldwide. The company can be found on the web at UPS.com and its corporate blog can be found at blog.ups.com. To get UPS news direct, visit pressroom.ups.com/RSS.
SOURCE: UPS Canada Ltd.
|U.S. Businesses Expect Organic Growth Amid Economic Uncertainty, Chase Business Leaders Outlook Survey Shows (2013/4/23)|
|Global Economic Uncertainty Weighs on Asian Shares (2013/4/15)|
|Tyson Remains Optimistic About FY2013 Results Despite Near-Term Challenges (2013/2/26)|
|Construction Industry Executives Remain Optimistic Heading into 2013 (2013/3/6)|
|Continued Economic Uncertainty Keeping California Small Business Owners Awake at Night (2013/5/6)|
|European CDS Spreads Remain Stable Despite Cypriot Banks' Insolvency (2013/4/16)|
|The Internet remains uncharted territory for Canadian businesses: RBC Poll (2013/2/27)|
|CEZ: Market, Economic Uncertainty Cloud Outlook (2013/5/7)|
|BMO: Canadian Business Confidence Remains High (2013/4/5)|
|Micro Business Owners Optimistic for the New Year (2013/3/4)|
|United Parcel Service Inc (UPS) Class B||View ups Stock Quote|
|United Parcel Service Inc (UPS) Class B||View ups Stock Quote|
|Face Up Entertainment Group Inc||View fueg Stock Quote|
|Changchun Up Optotech Co., Ltd.||View 002338 Stock Quote|
|United Parcel Service Inc (UPS) Class B||View upab Stock Quote|
|Up Energy Development Group Ltd.||View 00307 Stock Quote|
|Union Plastic Public Company Limited DR||View up-r Stock Quote|
|Start Premium Trial||Register For Free|
|P||F||Fund Financial Data (13,000+ funds)|
|P||F||Stock Financial Data (7,000+ stocks)|
|P||F||Stock and Fund Screeners (basic)|
|P||F||Investing Articles and Market Commentary|
|P||F||Articles Archive (>30 days)|
|P||F||Discuss (dozens of stock, fund, bond, and general bulletin boards)|
|P||F||Portfolio Manager (basic)|
|P||F||Morningstar Investment Classroom|
|P||F||Morningstar Investing Classroom Rewards (earn as you learn and redeem for Morningstar merchandise)|
|P||Morningstar Fund Analyst Reports (full research on 2,000 funds and ETFs)|
|P||Morningstar Stock Analyst Reports (full research on 2,000 stocks)|
|P||Morningstar Stock and Fund Stewardship Grades|
|P||Portfolio Manager (advanced with 10 x-ray analyses, including guidance)|
|P||Portfolio Monitor (monthly and on-demand personalized portfolio statements)|
|P||Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)|
|P||Morningstar Stock and Fund Favorites & Red Flags eNewsletters|
|P||Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)|
|P||Discounts on Morningstar newsletters, books, seminars, and more|
Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.
Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.