Firstly, the cost of doing business which has been driven by global inflationary pressure and the higher rates used by policymakers to tame inflation in their economies. Three quarters of respondents to the survey said rising costs have impacted their business. But while some of the costs will ease, energy is one key cost that is likely to remain elevated for the foreseeable future due to geopolitics and the lag in investment to transition to lower cost solutions.
Next, is the changing consumer base with all Gen Zs entering adulthood by 2030 and demanding change in the products they choose. While two thirds of Canadians said they would pay more for locally produced goods, half of consumers said they would pay more for environmentally friendly goods and this rises to 71% among Gen Zs compared to 54% of other generations.
ESG will become more important throughout the supply chain as consumers demand more transparency in the goods they choose.
The third trend is the labour shortage, which the report says will likely remain for the next decade with skilled workers in demand and especially in areas where unemployment is among the lowest. Although 88% of businesses think it will be just as hard or harder to find employees in the next five years, one third are not planning strategies for hiring, training, or retaining employees.
Finally, technology and the rapid pace of change is a key trend. While tech can help with some of the other challenges including hiring gaps and cost savings, the risk is being disrupted by emerging technologies.
