Published Thursday June 3rd, 2010
Survey | Province second in country in business confidence
By STEPHEN LLEWELLYN
llewellyn.stephen@dailygleaner.com
New Brunswick's small- and medium-sized business confidence in May was higher than the Canadian average, according to the Canadian Federation of Independent Business' latest barometer.
"It is quite exciting, actually, when a province can outperform the country," said Judith Andrew, Atlantic vice-president of the federation Wednesday.
"That really does reflect a pretty positive outlook for the province of New Brunswick."
Canada came in at 67.3 on the federation's business barometer while New Brunswick was 71.9. Fifty is the balance point between stronger and weaker business expectations.
"We have a pretty strong number of businesses in the province that are saying the overall status is good," said Andrew.
"Our barometer tends to be a pretty accurate coincident indicator for the economy."
New Brunswick was almost as high as the provincial leader Saskatchewan, which was at 73.8.
The survey of small- and medium-sized businesses in New Brunswick reported that 35 per cent said business was good and 51 per cent said business was satisfactory.
It found 14 per cent said business was bad.
Andrew said one in five businesses in New Brunswick is saying it wants to decrease employment, which is a little bit higher than the Canadian Federation of Independent Business would like to see.
About the same number intend to increase staffing levels and the remainder plan no change.
Andrew praised tax changes implemented by the Liberal government, although she said the small-business tax rate could be lower.
But she was critical of the Liberal government's increase to the minimum wage.
She said fuel and energy costs, labour costs and a shortage of skilled workers are big concerns for business.
Andrew said there's a "demographic drought" in New Brunswick when it comes to skilled labour and that's impacting availability of workers and wages.
She predicted New Brunswick will continue to climb on the business barometer for the rest of the year.
"It has been on the upward track," said Andrew.
In contrast, Nova Scotia is at 61.2 and tracking downwards, she said.
The federation has about 4,800 members in New Brunswick.
Susan Holt, CEO of the Fredericton Chamber of Commerce, said she isn't surprised that New Brunswick is rating high on a business confidence barometer.
"We see that daily from our members, particularly relative to other provinces and regions" she said Wednesday.
"Fredericton's economy weathered the recent economic challenges more successfully than many others."
The capital has seen high levels of employment, strong auto sales and good housing starts, said Holt.
"We have seen a lot of new businesses start up in the first quarter of 2010, certainly many more than the last quarter of 2009," she said.
The chamber is doing its annual member survey and one of the hottest issues is the skilled-worker shortage, said Holt.
But she said the capital isn't as vulnerable to high energy costs as other regions of the province.
"In terms of the business make up in Fredericton, our membership is not heavily fuel and energy dependent," said Holt.
But access to capital is a concern here and that is reflected in the federation barometer as well, she said.
"The venture capital market is certainly underdeveloped in New Brunswick," said Holt.
From THE DAILY GLEANER, published on Thursday June 3rd, 2010
