CFIB says small businesses are frequently impacted by local building work
Public construction projects, especially those that overrun, are costing Canada’s small businesses thousands of dollars from disruption.
That’s according to the Canadian Federation of Independent Business which says that 68% of firms it has surveyed said they had been negatively impacted by local construction projects, up 27% from 2018.
For more than a quarter of a million SMEs the disruption is said to have had a major impact on their business and when projects are not completed on time the disruption is exacerbated. On average, small firms endured 508 days of construction-related disruptions over the past five years.
During the most significant construction projects that have impacted them over the past five years, firms report a 22% loss of revenue and additional expenses of $10,000 for cleaning and repairs.
The disruption includes traffic congestion, dust, debris, and noise, along with customers struggling to find business premises or to park, which along with stress and lack of notice are among the largest impacts of construction to small business owners.
"Small businesses face a myriad of issues when local construction projects take place, from traffic congestion and dust and debris, to losing customers and navigating logistical disruptions," said Emily Boston, Senior Policy Analyst at CFIB and report co-author. "Now, imagine dealing with it for over 500 days! Sadly, this is a reality for too many small businesses across Canada."
While acknowledging the importance of upgraded local infrastructure, Boston says there should be comprehensive construction mitigation plans provided by the government including funding to offset costs for impacted businesses, improved planning and communication strategies, and more clarification on how each level of government will be involved.
"All too often it seems as though levels of government punt the responsibilities of construction projects back and forth. There needs to be a clear directive as to who is responsible for the construction mitigation of projects and what mitigation tools will be used," Boston concluded. "Improving how construction projects are handled would benefit local businesses, municipalities, provincial governments and citizens alike."
