Mark Clairmont | MuskokaTODAY.com

MUSKOKA LAKES — Monday’s reopenings in Ontario, while positive for business, highlight “the very real consequences of labour shortages, global supply chain disruptions and inflation.”

A survey including local business owners out today says: “Pain points throughout Ontario’s economy are impairing business operations, and now consumers are feeling the pinch, too.

“The frustration is palpable” and it’s affecting Ontarian’s pocketbooks from grocery stores to entertainment venues.

The Muskoka Lakes Chamber of Commerce along released the Ontario Chamber of Commerce’s (OCC) sixth annual Ontario Economic Report (OER) that offers a regional and sector-specific data on business confidence, policy priorities and economic indicators, which they say together provide a unique view on the hurdles ahead.

“Ontario began to see some positive momentum in 2021 thanks to progress on vaccines and reopening,” said a release Thursday.

Business confidence, GDP and employment growth are trending upwards after record lows in 2020, it states.

“However, the road ahead remains uncertain for businesses and households as labour shortages, supply chain disruptions and inflation are hitting home,” said Rocco Rossi, president and CEO of the Ontario Chamber of Commerce.

He says “a staggering 62 per cent of sectors are facing labour shortages in Ontario and expect to continue facing them over the next year.

“This is having real-life consequences on the cost of living, service delivery and product availability.”

Rossi said, “not surprisingly,” of the 158 respondents to the survey in the Muskoka-Kawarthas region 54 per cent agreed the labour shortage problem was a No. 1 barrier for their business.

He says when it came to confidence in business outlook for their own organizations, of results reported from 11 regions, Muskoka-Kawarthas took the middle ground with 55 per cent reporting confidence in their own organizational outlook.

But for the entire region, the confidence rating for Muskoka-Kawarthas — of those surveyed — was slightly lower than others at 26 per cent.

Norah Fountain, executive director of the Muskoka Lakes Chamber of Commerce, adds in the release that: “While some have struggled and some have even closed, sadly, small businesses across Muskoka have generally proven their strength and resilience over the past two years.”

She said business confidence is rising across the province “and we have confidence here, too.

“But for many the strain from new variants and additional protection measures is dampening their recovery.”

Fountain adds: “The good news is that 59 per cent expect their business to grow this year.”

But, she admitted, “It’s the usual housing, broadband, transportation and daycare” that are affecting business.

She said “lots of skilled workers — and young families — want to move to Muskoka,” but there’s not enough services to support them.

Fountain said the district doesn’t need more cottages, but “tiny houses.”

The province allows that she said.

“Have you seen Hwy. 118 in the morning, it’s crazy with all the traffic and trucks driving in to Muskoka Lakes from Bracebridge.”

It’s the same on the west of Muskoka as Hwy. 169 is busy thoroughfare with contractors having to have to commute to work.

She says “Muskoka needs to step up and become the four-season destination it’s always wanted to be.”

The report says the impacts of the pandemic continue to disproportionately impact small businesses and organizations led by women and people with disabilities. The hardest-hit sectors are in the arts, entertainment, food services, and agricultural sectors.

“We are seeing a domino effect of structural issues. Jobs are going unfilled, demand is outpacing capacity, and these issues are driving up prices for consumers and uncertainty for businesses,” according to the report’s co-author, Claudia Dessanti, senior manager of policy with the Ontario Chamber of Commerce. “Two years into the pandemic, there is light at the end of the tunnel, but we need a long-term plan that will provide stability and lay the groundwork for economic growth.”

Key highlights of the Ontario-wide report include:

• Overall, 29 per cent of Ontario businesses were confident in Ontario’s economic outlook in 2021 (compared to 21 per cent the year prior), and 57 percent were confident in the outlook of their own organizations (up from 48 per cent).
• Most sectors (62 per cent) are facing labour shortages and expect to continue facing them over the next year.
• Inflation of raw materials and transportation costs at the producer level are affecting consumer prices, which rose 3.5 percent and are expected to rise another 3.5 percent in 2022. Ontario’s year-over-year housing price growth was above 30 percent in December 2021.
• Small businesses are more preoccupied with cost relief measures such as business taxes and electricity rates, while larger businesses are more focused on long-term infrastructure, regulatory, and workforce development issues.
• All regions except northeastern Ontario saw positive employment growth in 2021, though several regions have yet to offset the major job losses seen during the first year of the pandemic.

The sixth annual OER is from the annual Business Confidence Survey (BCS) and economic forecasts for the year. It was conducted online from Oct. 6 to Nov.19, attracting responses from 1,513 organizations across Ontario. The OER was made possible by the Ontario Chamber’s Landmark Partner, Hydro One, and Research Partners, Golfdale Consulting and Bank of Montreal.

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