COVID-19 Survey – The Chamber is listening to support you

Data collection period: September 14 to 18, 2020

Evolution of the consequences of the crisis

• 83.4% of respondents are worried about a tax increase following the COVID-19 crisis.
• 68.1% of respondents indicated they had sufficient funds to pay their fixed costs for September 1.

Working from home and employees returning to office towers

• 37.7% of respondents report that the percentage of employees who are working in their office space is greater than 20%.

Possibility of a second COVID-19 wave

• Well before the Montréal area became an orange and then a red zone, 87.8% of survey respondents reported already being somewhat or highly concerned about the possibility of a second COVID-19 wave.
• 79.8% of respondents reported implementing the health and safety measures required to continue their business’s activities in the event of a second COVID-19 wave.

Priorities and concerns of the business community in a context of recovery

• The development of aid measures targeted to sectors of activity most affected by the crisis ranked 1^st among priority actions for governments according to businesses.
• 82.7% of businesses are in favour of lowering property taxes for commercial spaces downtown.

Profile of respondents

Data collection period: July 14 to 20, 2020

• 34.2% of respondents stated that the crisis caused a 20% to 60% drop in their company’s sales over June 2019.
• 42.2%of respondents said that they were concerned about the decline in customer traffic and economic activity in downtown Montréal.
• 28.4% of respondents said that they are already gradually returning their employees to the office.
• Companies are prioritizing employee well-being when determining which employees will return to the office first.
• The employee’s voluntary decision to come back was the number 1 criteria that companies used to determine which employees will return to the office first.
• How easy it is for employees to perform their duties remotely was the number 2 criteria used to determine which employees will return to the office first.
• The employee’s hierarchical level was the number 3 criteria used to determine which employees will return to the office first.
• Whether the employee is involved in customer service was the number 4 criteria.
• 73.1% of respondents are planning to permanently implement a hybrid model of in-person and remote work for their employees.
• 30% of respondents are planning to reduce their office/commercial space due to the crisis.
• 55.1% of respondents were considering implementing measures to facilitate their employees’ commute to the office, including flexible working hours (72.5%) and remote work (73.4%).
• 89.1% of respondents stated that they are in favour of making masks mandatory in indoor public spaces.
• Companies are deploying strategies to create a safe work environment.
• The availability and accessibility of protective gear and disinfectant products (masks, gloves, sanitizer, etc.) at all times is the number 1 strategy that companies will employ to create a safe work environment (81.3% of respondents selected this strategy).
• The daily disinfection of offices and common areas was the number 2 strategy that companies will employ to create a safe work environment (69.4% of respondents selected this strategy).
• Making masks mandatory in common areas was the number 3 strategy to create a safe work environment (59.4% of respondents selected this strategy).

Profile of respondents

Data collection period: May 27 to June 16, 2020

• 41.2% of respondents said that their company’s main challenge to export to foreign markets is finding international customers, partners or suppliers.
• 42.2% of respondents that qualify as exporting companies said that the crisis has prompted them to review their strategy for entering international markets.
• 80.3% of respondents plan to partially or fully implement new practices to manage clients remotely and with digital tools.
• Travel restrictions have had many impacts on companies’ economic activities:
• 72.5% of respondents reported negative impacts on business development due to temporary travel restrictions.
• 65.9% of respondents reported negative impacts on how they make sales due to temporary travel restrictions.
• One quarter of respondents saw increased demand for local products both in their target markets outside Quebec and in the local Quebec market.
• 67.8% of respondents stated that they have not reviewed their growth strategy to further develop the Canadian market since the modernization of the Canadian Free Trade Agreement (CFTA).
• 65.5% of respondents believe that removing trade barriers between the Canadian provinces should be a priority for the Government of Canada.

Profile of respondents

Data collection period: May 15 to 20, 2020

• 53.9% of respondents reported a slowdown in their activities due to the crisis and economic downturn.
• For comparison, in the Chamber’s 2nd survey from March 24 to 27, 49.9% of respondents stated they had experienced a slowdown.
• Remote work appears to be here to stay, with 59.2% of respondents planning to keep most employees working from home after the restart.
• 60.8% of respondents invested in computer equipment to facilitate work from home, while 20.8% invested in office furniture and 47.5% invested in telecommunications equipment/expenditures.
• 44.7% of respondents said that work-family balance has had a moderate to significant impact on reduced employee productivity.
• 24.7% of respondents are planning to reduce their office/commercial space due to the crisis.
• This percentage rose to 29% for respondents physically located in downtown Montréal.
• 41.2% of respondents plan to change their employees’ work schedules so that they can commute during off-peak hours.
• This is in addition to 28.2% of respondents who already had this policy in place before the crisis.
• 30.2% of respondents reported a significant or moderate impact on their business activities due to decreased tourism in Greater Montréal.

Profile of respondents

Data collection period: April 9 to 15, 2020

• 48% of respondents reported they were able to maintain their activities through remote working and online services.
   
• The impact of remote working on business productivity is divided:
• 43.3% of respondents reported that the increase in remote working has resulted in a drop in productivity in their business’s activities;
• 45.4% of respondents reported that the increase in remote working did not result in a change or an increase in productivity in the business’s activities.
• 64.1% of respondents reported that the increase in remote working has not increased operating costs for their business.
• On the other hand, 24% of respondents indicated that the increase in remote working increased operating costs.
• 75.6% of respondents did not have a transactional website at the start of the crisis.
• 17.3% of respondents are working to put in place a transactional website.
• The impact of the crisis on production and procurement is real:
• 47% of respondents reported a significant or moderate impact with respect to the reduction in production capacity.
• 34.7% of respondents reported a significant or moderate impact with respect to the inability of suppliers to make deliveries.
• 37.2% of respondents reported a significant or moderate impact with respect to the fragility or interruption of supply chains.

Profile of respondents

Data collection period: April 3 to 7, 2020

* 51.6% of respondents had to lay people off, an increase of 18% compared with the March 18 survey.

* 97.6% of respondents indicated having learned of the wage subsidy program announced by the Government of Canada at the end of March. However, 45.2% of respondents indicated they are not able to show a revenue loss of 30% over the reference period of last year to be eligible, even though they are suffering negative effects of the crisis.

* Assuming activities can resume in mid-May:

• 18% of respondents believe that their business may survive, but fear having an unsustainable debt load if they use loan guarantees.
• 25.9% of respondents indicated that their business could survive if they can stagger loan repayments over more than one year.

* 45% of respondents encountered difficulties paying their fixed costs from the beginning of the crisis, and 56% foresee difficulties doing so for May 1.

Profile of respondents

Data collection period: March 24 to 27, 2020

* 65.9% of respondents have little or very little confidence about Canada’s economic prospects for the next 12 months.

• The survey shows that the confidence of entrepreneurs in Canada’s economic outlook has collapsed since the Chamber’s last survey on the question, in August 2019. At the time, barely 14% of respondents said they have little or very little confidence about the next 12 months.

* 23% of respondents reported their company has had to close its doors because of the government’s decision to suspend non-essential economic activity.

* 37% of respondents believe they will be able to keep their business operating and avoid its definitive closure within a time horizon of less than 3 months given the current restrictions.

Respondents’ profile

Methodology

• Opening of the survey: March 18
• Closing of the survey: March 20

Over 90% of respondents represent SMEs¹. While representatives were from a wide range of sectors, the predominant sectors in this survey are: information technology; professional services; communications; advertising and public relations; and construction.

Reminder: Data was collected from March 18 to 20. A number of aid measures and restrictions for businesses have been announced subsequently. Survey results should be interpreted in light of this information.

¹ Businesses with fewer than 500 employees were considered SMEs, as the information collected did not take into account sales