Businesses Anticipate Continued Supply Issues

Over one-quarter (26.8 per cent) of businesses expect difficulty acquiring inputs, products, or supplies domestically over the next three months, says Statistics Canada’s ‘Canadian Survey on Business Conditions.’ Of these, 54.3 per cent expect these challenges to continue for six months or more, down slightly from the previous quarter (57.3 per cent). Meanwhile, one-third are uncertain how long these challenges will persist. It says 47.8 per cent of businesses in construction and 43.9 per cent of businesses in manufacturing expect difficulty acquiring inputs, products, or supplies domestically during this time. Of businesses that expect supply chain challenges over the next three months, whether that be difficulty maintaining inventory levels or acquiring inputs, products, or supplies domestically or abroad, 58.2 per cent reported that the challenges the business experienced have worsened over the last three months, down from over 67.9 per cent in the second quarter. Leading factors that contributed to worsened supply chain challenges were increased delays in deliveries, increased prices, and supply shortages. While 9.5 per cent expect supply chain challenges to improve over the next three months, 58.6 per cent expect the situation to remain about the same and 31.9 per cent expect supply chain challenges to worsen.