Despite another slowdown in the economy, Canadian private companies are still aiming for growth and expansion. In fact, their confidence level is the highest it's been since 2005. This year's Business Insights survey showed that 82% of respondents are striving for growth compared to 66% last year.
"Canadian private companies learned a lot through the recession about how to survive and they've repositioned their businesses to face the challenges. Having adapted to the new business reality, they are ready for whatever the markets throw at them, which accounts for the optimism," says Tahir Ayub, Canadian leader of PwC's Private Company Services practice.
While determined to grow, many private companies surveyed have been more reserved with their expectations for growth in response to the uncertainty in world markets. For example, only 10% of respondents were looking to aggressively grow by 15% or more, compared to last year, when 24% expected to grow by more than 15%. While remaining optimistic, they are also being realistic. When surveyed in June/July 2011, 83% said they expect their business to do a little or a lot better over the next 12 months. The number fell to 74% in September 2011.
Over the past 12 months, businesses predict the top three issues to be: competition (34%), profitability (29%), and labour shortages (26%).
In order to improve competitive performance, the top 10 priorities cited were:
* Improving processes -- 47%
* Reducing costs of operations -- 46%
* Improving staff skills -- 39%
* Better targeting of customers -- 37%
* Staff retention -- 33%
* Expansion plans -- 30%
* Investing in IT -- 22%
* Strategy definition/evaluation -- 21%
* Collaboration/strategic alliance -- 21%
* Increased R&D/innovation -- 19%
While these are challenging times, private companies are embracing new ways of thinking and investing in new solutions to support their growth agenda by:
* Getting a clear understanding of their cost of inputs
* Focusing on innovation for drive efficiencies
* Using technology as an enabler for efficiency and innovation
* Re-assessing their people strategies
* Embracing emerging markets at home and abroad