Economic

Small firms endured 508 days of construction-related disruptions over five years: CFIB

DCN-JOC News Services August 28, 2024

TORONTO —Nearly seven in 10 (68 per cent) small businesses have experienced disruptions due to local construction projects in the past five years, finds a new report by the Canadian Federation of Independent Business (CFIB).

The numbers represent a 27-per-cent increase since 2018 said the report, titled Hard Hats and Hard Times: Public Construction Impacts on Small Businesses.

Of those affected, 22 per cent report the disruptions have had a major impact on their business, which equates to 267,000 small and medium-sized enterprises across the country. When public construction projects extend beyond their established timelines, it prolongs the impact of these disruptions, the report said. On average, small firms endured 508 days of construction-related disruptions over the past five years.  

“Small businesses face a myriad of issues when local construction projects take place, from traffic congestion and dust and debris, to losing customers and navigating logistical disruptions,” said report co-author Emily Boston of the CFIB. “Now, imagine dealing with it for over 500 days. Sadly, this is a reality for too many small businesses across Canada.” 

Small firms lost on average 22 per cent of their revenues during the most significant construction project affecting them over the past five years and on top of that, spent around $10,000 in extra expenses such as cleaning and repairs. 

The most common issues affecting 58 per cent of businesses are traffic congestion, dust, debris and noise. Customers and staff having trouble accessing their business or finding parking (49 per cent), significant stress (23 per cent) and lack of notice (33 per cent) also impact small businesses in construction zones.  

The statement urged governments to support small businesses during periods of major construction by establishing comprehensive construction mitigation plans, which include funding to offset costs for impacted businesses, improved planning and communication strategies, and more clarification on how each level of government will be involved.  