This is Small Business Week. We are celebrating the small businesses in our community. The definition of small business is 100 employees or less which captures a lot of the workforce in Peterborough. The Peterborough Chamber of Commerce has almost 900 members and 93% of them are in this category. Recently, we celebrated over 50 businesses at the Peterborough Business Excellence Awards night. The videos profiling all finalists are available on YouTube and are a shining example of the great work and workplaces we have in Peterborough. Check them out and learn more about the businesses in our community. Often the most telling part of that evening is the comments from the recipients. The first people to be thanked are usually the team and it goes without saying that the work team is crucial. However, we’d like to broaden the thank you to the owners and franchise owners and say thank you for taking the risk. Thank you for making the conscious decision to give back to your community in the form of employment opportunities and sponsorship of community events, sports teams, the arts and so much more. Often, and as is the case with the current municipal election, the creation of jobs is a topic that receives a lot of attention. So, we feel it’s worth understanding what it takes to create a job… As Chamber President and CEO Stuart Harrison explains: “Simply having an employee in the building costs roughly 50% more than that employee’s salary. There is the cost of the building, the utilities to run it, the multiple taxes, the cost of regulation compliance (let alone the fees for the privilege of complying), and this doesn’t even scratch the surface. Most small businesses operate on a profit margin of 10% or less. This means that for every dollar that goes into the cash register it costs the owner 90 cents. That leftover dime is typically sunk back into the business for expansion, new equipment, building improvements, new employees, etc.” “This is above and beyond any government legislated cost increases such as when hydro rates go through the roof, and when wages get a legislated increase,” adds Harrison. “It leaves a business owner with very few options, and only 10 cents to solve the problem.” All this to say that, unless you’ve sat in the chair of a small business owner and faced the responsibility of mounting expenses, take a moment before judging. We need our small businesses to thrive and be successful and to have an environment in which there are fewer barriers, so that they can create more jobs and have more opportunities to give back. The strength of the community is reflected in the strength of the business community. We’re stronger together.
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 Over the next three columns is the statement from the Canadian Chamber of Commerce (CCC) on the USMCA (United States Mexico Canada Agreement).
The Peterborough Chamber of Commerce is proud to be a member of the national Chamber network as it continually offers perspective to be applied here in the City and County. We know there will be impact from this deal as we have dairy farmers, manufacturers and retailers that all had their eye on what was going to happen with a renewed NAFTA. We also know that this is one of many international trade deals to be renewed or developed in the past number of years and while the others (CETA and CPTPP) will open doors for Canadian products the USMCA is particularly important because of, among other things, proximity. Members, we are compiling a series of links to the document on our website peterboroughchamber.ca. As we learn more ahead of ratification and build lived experience with the deal after ratification, please stay connected with us. We’re here to advocate on your behalf. policy@peterboroughchamber.ca Statement from the CCC “The Chamber is delighted to learn of a deal in principle for a renewed NAFTA. This step forward comes as a relief for our members who have been searching for much-needed clarity and predictability in the relationship with our NAFTA partners. As with any trade agreement of this breadth and scope, the Chamber will want to carefully review the details before making a final assessment. Specifically, we will seek clarity on how the agreement addresses the existing tariffs on Canadian steel and aluminium, as well as how it will ensure that tariffs and quotas upon Canada’s auto sector exports will be avoided. The Chamber’s members will also look closely at how the agreement treats specific sectors, including dairy and government procurement, and how IP will be dealt with across several industries. Our retail members will also want to evaluate the impacts of any changes to the de minimis level on their domestic sales. While we applaud the achievement of an agreement, Canada must remember the lesson this turbulent period has provided: we must never again allow ourselves to be overly-dependent upon one trading partner. We must continue to diversify our markets to protect ourselves from capricious and unfair actions in the future. Additionally, we urgently need to boost Canada’s competitiveness. Our members, Canadian businesses from all sectors across the country, continue to be woefully disadvantaged compared to our international peers. For Canada to prosper as a trading nation, we must overhaul our regulatory and taxation frameworks, which are suffocating the ability of our businesses to innovate, to compete for talent on the global stage, to deliver nation-building projects, and to attract foreign investment. We must also redouble our efforts to dismantle the remaining barriers to internal trade and mobility. The Chamber congratulates Minister Freeland and Canada’s negotiating team for delivering an agreement that remains trilateral and that will continue to deliver prosperity for Canada, and for doing so under extraordinarily challenging conditions. For now, the 200,000 businesses that comprise the Chamber’s network can breathe a little easier and return their focus to where it should be: serving their customers and providing jobs for their employees. The Chamber will continue to advocate on their behalf so that, together, we can build a Canada that wins."  The City and County of Peterborough are exceptional places to build a business, raise a family, and enjoy all Mother Nature has to offer. In the past several months Peterborough has been recognized as 2nd best for real estate investment and one of the friendliest communities.
The Greater Peterborough Chamber of Commerce represents approximately 900 businesses in the city and county employing about 25,000 people. Our mission is to be a leader in advocacy, networking and education for our members and community at large. We also act as a catalyst to enhance business growth and opportunity, innovation, partnerships and a diverse business community. The start of a new term of council is an opportunity for reflection as well as a time to set goals for the next four years. Recently, the Peterborough Chamber of Commerce released the ‘Building a Community Outside the Ordinary’ platform for the upcoming municipal election. The platform outlines three pillars of a strong, resilient community and includes ten recommended actions that are needed to support the development of opportunities for everyone in the City and County of Peterborough. The ‘Building a Community Outside the Ordinary’ platform has been developed through consultation with Chamber member businesses who identified several factors that are limiting our ability to provide opportunity for our citizens. To become a city and county for everyone, we need our candidates and the next council to support a “culture of forward and full circle thinking”. The ‘Building a Community Outside the Ordinary’ platform calls for: Strengthening Peterborough’s Competitiveness, Economic Growth and Job Creation Through commitments to:
Building Whole Communities Through commitments to:
Improving Government Accountability Through commitments to:
“We are asking all candidates for City and County Councils to endorse our ‘Building a Community Outside the Ordinary’ platform,” says Stuart Harrison, President & CEO, Peterborough Chamber of Commerce. “We believe that by adopting the pillars of strengthening Peterborough’s competitiveness, economic growth and job creation, building whole communities, and improving government accountability, our next Councils can build a community outside the ordinary for everyone.” All said, there is interconnectedness between the themes and recommendations of this platform and all citizens in our community. Action on these recommendations helps us all. We are all in this together. Learn more about the 2018 Municipal Election  Author: Ryan Greer, Director of Infrastructure & Transportation Policy, Canadian Chamber of Commerce As of October 17, Canadian adults will be able to legally purchase and consume cannabis for recreational purposes; a year and a half after the federal government introduced its legislation to do so. It will mark the beginning of a fascinating battle between a new regulated industry and the existing illegal market that Canadians are currently turning to for recreational cannabis use.
So what are the steps to legalizing a multi-billiondollar illegal market? Over the last 18 months, federal legislators and civil servants have been establishing a national framework for regulating access to cannabis, which includes rules for cultivation, production, possession and marketing. Meanwhile, provinces and territories have been busy setting the rules for distribution and retail sales. This has been accompanied by a frenzy of private sector activity to supply the legal market with licensed producers, retailers, ancillary businesses and others investing billions of dollars in this new sector. Some of the factors that will influence how effective Canada’s legal cannabis market is at reducing illegal sales include safety, quality, access, supply and branding. Like all markets, one of the biggest factors will be price. As the head of the federal Task Force on Cannabis Legalization and Regulation, Anne McLellan, told Members of Parliament studying the Cannabis Act, "Price point here is going to be key in terms of what you see in the illicit market and how effective the legal market is at moving people over.” In late 2017, the federal government reached a cannabis tax revenue sharing agreement with the provinces and territories. On top of sales taxes, the agreement included a cannabis excise or ‘sin’ tax of 10% of the retail price or $1 per gram—whichever is higher. The 10% tax is expected to raise $300 million annually for the provinces/territories and $100 million annually for the federal government. The agreement projected that including the excise tax, legal recreational cannabis will be priced around $10 a gram. Only a few months later, Statistics Canada released a survey that found Canadians are currently paying an average of less than $7 a gram for cannabis. Health Canada proposed four ‘cost recovery fees’—otherwise known as user fees—on the industry to recoup the costs the government will incur by regulating the sector. User fees are typically associated with a specific service from the federal government, such is the case with the first three of the proposed fees. An annual regulatory fee of 2.3% of gross revenue for licensed producers was proposed, with a 1% fee for micro-cultivators and processors. The proposal is expected to put an additional $100 million into federal coffers every year. No clear policy rationale has been shared with industry for how government determined the 2.3% fee level. This additional tax (which is what the fee is), was also proposed after licensed producers had already negotiated multi-year supply deals with provincial wholesalers based on the previously announced 10% excise tax. As others have warned, high government taxes and fees will hurt legal producers’ ability to compete with the illegal market and ultimately hurt Canadians as well, which runs counter to the government’s rationale for legalizing cannabis in the first place. There are other looming policy issues that will influence the effectiveness of breaking up the illegal market. The government of Ontario’s recent decision to move from a sparsely populated government-run retail distribution network to a private retail model will increase the reach of the legal market in Canada’s largest province. Municipalities across the country will need to deal with the hundreds of unlicensed dispensaries that are operating outside the law to protect retailers who are investing and operating within new provincial rules. The federal government must also move quickly to establish regulations for the recreational production and sale of cannabis edibles, beverages and other products that will remain in the hands of the illicit market after October 17. Deloitte has forecasted that Canada’s cannabis market will be worth up to $7.17 billion in sales next year. To maximize the economic benefits to Canadians of this $7-billion market, governments must create an environment that supports businesses that are playing by the rules, so they can in turn create new jobs and investment, along with the significant tax revenue for governments that will follow. More: chamber.ca  This is the culmination of a long time goal and request of the Ontario Chamber Network, including your Peterborough Chamber of Commerce.
According to the government, the WSIB will be able to cut the average premium rate for employers by almost 30 per cent, starting January 1, 2019. The rate reduction is the result of the elimination of the unfunded liability. We welcome this announcement and the opportunity to reinvest in business and our Ontario economy. WSIB is often mentioned by our local businesses as a system that takes time and reinvestment opportunity away from their business. “Premiums come out of the pockets of business owners. Today’s news means that this money saved can be better spent on job creation, new technologies and infrastructure, and better, safer workplaces," said Rocco Rossi, President & CEO, Ontario Chamber of Commerce. #StrengtheningBusiness  The 3rd annual Peterborough Aerospace Summit was held recently at the Peterborough Airport. What we know about the aerospace industry is that it’s a growing field with many opportunities for our workforce. In fact, worldwide, the staff shortages anticipated in aerospace are staggering. The industry says it will be short 800,000 pilots, 750,000 maintenance staff and about the same number in cabin crew. The positive news is that with Seneca and Fleming College along with Trent University and the Holy Cross High Skills Major program in aviation, Peterborough is in a good position to help fill the need.
It’s important to recognize the role, the return on government investment and impact the airport has in our local economy. In 2017, 730 people were employed at the airport; up from 422 in 2008. The growth in jobs is also reflected in economic impact with the airport generating $74 million in GDP in 2017 and supporting 60,000 airplane movements. Most of the work is in maintenance, refurbishment and overhaul (MRO) of airplanes and the supply chain that supports those companies. The Peterborough Airport is also making its mark as one of 11 regional airports in the Southern Ontario Airport Network (SOAN). The group is working toward understanding and planning to help Pearson International Airport as it reaches capacity. Across the network, the regional airports support 55,000 jobs in Ontario and pay about $2.3 billion in taxes. But at a time when the industry is taking off, there are also some barriers that need to be addressed. Training the workforce Experts believe building a workforce will require more co-op opportunities and awareness of the industry and potential jobs at an earlier age, perhaps Grades 5 or 6. Part of the panel discussion at the Summit identified the various types of work available in the industry from pilots to maintenance crew to finance managers, marketers and HR staff. That said, for those looking to enter a growth industry, Canada has the 7th largest aerospace industry in the world, with 29% of Canadian aerospace jobs in Ontario. 95% of Ontario aerospace companies have fewer than 100 employees, which means an employee can potentially get in on the ground floor. These are also the types of companies that Canada needs to scale and grow in burgeoning industries with high-paying jobs. Recently, Flying Colours Corporation announced its $30 million expansion which will include an additional 60 jobs. Filling in the last mile In many cases, the regional airports are geographically set apart from the community they are connected to, including Peterborough. There are currently no transit stops to this local employment hub and employees and students are walking and cycling to work. Considerations for new transit routes will help this economic driver continue to grow and open the doors for employees. Several committees examining transportation in the region have identified this issue as one that requires attention. At the federal chamber level there is a lot of discussion around airports with a series of policy resolutions on the books from how they operate and can access funding to improving security wait times. That these discussions are constant is an indication that there is a role for air in our transportation mix and now is the time to ensure it soars.  SEMPTEMBER 19, 2018, PETERBOROUGH: The Peterborough Chamber of Commerce is releasing its the ‘Building a Community Outside the Ordinary’ platform for the upcoming municipal election. The platform outlines three pillars of a strong, resilient community and includes ten recommended actions that are needed to support the development of opportunities for everyone in the City and County of Peterborough.
The ‘Building a Community Outside the Ordinary’ platform has been developed through consultation with Chamber member businesses who identified several factors that are limiting our ability to provide opportunity for our citizens. To become a city and county for everyone, we need our candidates and the next council to support a “culture of forward and full circle thinking”. The ‘Building a Community Outside the Ordinary’ platform calls for: Strengthening Peterborough’s Competitiveness, Economic Growth and Job Creation through commitments to:
Building Whole Communities through commitments to:
Improving Government Accountability through commitments to:
“We are asking all candidates for City and County Councils to endorse our ‘Building a Community Outside the Ordinary’ platform,” says Stuart Harrison, President & CEO, Peterborough Chamber of Commerce. “We believe that by adopting the pillars of strengthening Peterborough’s competitiveness, economic growth and job creation, building whole communities, and improving government accountability, our next Councils can build a community outside the ordinary for everyone.”  We’ve mentioned it before and we’re saying it again, business likes certainty. However, for a very long time certainty has been elusive for the business owner.
The Bill 148 legislation came into effect January 1, 2018. Before hand there was concern. Businesses had a very short time frame to institute some major changes. There was no economic analysis done by government to understand the impact of so many changes all at once. Several independent groups , including the Ontario Chamber of Commerce, issued analyses that predicted job losses of between 50 -100,000 over the next two years because of the reforms. A survey of the Peterborough Chamber membership painted a wide array of impacts and reactions, including increased prices, decreased hours, and a lot more automation. We also heard that businesses made the changes and well, got on with business. As always there are different levels of impact. The feeling from the economic analyses and those in business is that the true impact of the changes won’t be seen until one or two years after implementation. With the change in government we've been asked what will happen with this legislation. The short answer is, it will remain in place. That said, one of Premier Ford’s campaign promises was to stop the second minimum wage increase, from $14 to $15, in the Bill 148 legislation. In order to do so, the legislation must be brought forward to Queen’s Park and opened to make the change. In most cases, legislation is reviewed every five years or so, but now there is potentially an opportunity coming up to get in and make changes. The Chamber’s number one concern with the Bill 148 legislation was the speed at which it came into effect and the depth and breadth of impact in the business community. We constantly speak about the piling on effect or cumulative burden. Bill 148 introduced a significant amount of new rules, regulations and costs, on top of increased hydro rates, gas prices, and various federal regulations. Bill 148 was also intended to improve the economic prospects for the most vulnerable members of society, but it placed the burden almost squarely on the shoulders of the business community, as though we are an endless source of wealth. In addition to a longer implementation of Bill 148, the Chamber lobbied hard for income tax measures for the lowest income earners, and the completion and consideration of the Basic Income Guarantee study. This study, which included the City of Kawartha Lakes has now been cancelled, a missed opportunity for significant change in how we treat our most vulnerable. The Ontario Chamber of Commerce, along with several other organizations is calling for a full repeal of Bill 148. We are asking our members to provide us with some feedback as to how they are coping with the legislative changes, and the increased costs. What are some of the mitigation measures they’ve implemented, and what do they anticipate will be the long term impacts? We are also curious to know if there are specific areas that need to be changed or receive further consideration should the legislation be opened up.  The Peterborough Chamber of Commerce is looking for feedback on the impact of Bill 148 on the business community.
We've built a short two question survey that is looking for what has changed, if anything, in the past eight months since the legislation came into effect. We are also asking for input to present to the provincial government should they reopen or solicit feedback on potential changes to the legislation. Businesses, please take a moment to fill out the survey. It will help us best serve the advocacy needs of our business community. Thank you for taking our survey. Questions about Bill 148? Check out our advocacy page.  In a few weeks, chambers of commerce and boards of trade from across Canada will be gathering in Thunder Bay to discuss and debate how to influence federal public policy. It’s fitting that this year’s Canadian Chamber of Commerce (CCC) Annual General Meeting is happening in a city that’s fairly close to being the middle of our country. Now more than ever Canada and Canadian businesses need to band together behind common values and ideals of how to move our economy forward.
Between NAFTA negotiations, newly inked trade agreements CETA (Comprehensive and Economic Trade Agreement) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, interprovincial challenges, regulatory regimes and the desire for business tax reform by the federal government these are challenging times. Earlier this year the CCC issued the 2018 version of “10 Ways to Build a Canada that Wins” and as our national meeting approaches, this document is worth revisiting as it will be a guide for advocacy.
In fact, a quick scan of the 10 ways and you can see how each could be connected to the economic climate in the City and County of Peterborough. Here’s a look at a couple of them as we profiled them earlier this year. Make Canada an Agri-Food Powerhouse “Canada’s agriculture and agri-food sector has a strong and well-earned reputation for efficient production, innovation, food quality and safety that has propelled Canada to be the fifth largest exporter of agricultural and agri-food products in the world.” The CCC report goes on to say that the agri-food industry, from primary producers to advanced food manufacturers to agri-food based technologies to data analytics accounts for 7% of GDP and one in eight jobs across the country. In 2018, the Chamber Network will focus on championing a more integrated approach involving federal and provincial governments in the development of policy in this area. There is also a continued desire to work with the government to develop a long-term vision for growing Canada’s agri-food sector. On the economic development front in Peterborough, Peterborough & The Kawarthas Economic Development Agriculture Advisory Committee has identified three priority areas for 2018:
Develop Agile Workforce Strategies Accessing talent has been identified as one of the biggest challenges to business competitiveness in Peterborough and across the province. The ability to make a difference in this space requires targeted strategies at all levels of government. Among the policy areas identified as priorities from the CCC and Chamber Network are workforce strategies that:
Helping SMEs Trade and Grow We know and previous studies and research have told us that Canada, is really good at starting companies, but where we fall short is in our ability to grow those companies into medium or even large businesses. In the CCC document we learn that 99% of all businesses are SMEs and that SMEs contribute 25% of all goods and services and yet exports less than a third of Canada’s GDP. Encouraging companies to scale up and become global leaders requires a host of tools including funding programs, tax and regulatory policy that enable easy and low-cost compliance and programs that continue to connect SMEs to domestic and international business opportunities. Businesses will always be up to the challenge to build a “Canada that wins”, looking for new ways to grow and reach new customers and markets, but governments and policy makers cannot lose sight of the importance of a policy climate that allows for business success. |
AuthorThe Peterborough Archives
October 2018
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