Companies across Canada are starting to reopen. What does this mean and how do we combat the challenges.
In Quebec, 49% of SMEs have now fully resumed their activities, which means that 1 in 2 SMEs is still partially or completely closed, according to a survey by the Canadian Federation of Independent Business (CFIB).
Interestingly, 63% of manufacturers and 73% of construction companies in Canada are fully back to work or at least partially open.
However, companies that have restarted are still doing so slowly and cautiously: only 15% of Canadian SMEs have seen their sales return to normal. That is a very low number. Re-opening does not guarantee that all of your customers will return, nor does it mean all the orders that were made before the lockdown will still be needed now. The negative impact of this is significant.
In May, business owners (all industries) reported only an 11% decline in the overall impact on their businesses. While encouraging, 67% of business owners reported are still experiencing significant business impact.
One of the greatest concerns or challenges during this time of re-opening is cash-flow. With little to no revenue being generated in most manufacturing companies over the last few months makes it extremely difficult to make the purchases needed to fill orders. Many have their capital tied up in inventory that was purchased based on projections or planned projects. But then everything stopped. The result; a situation where companies have excess inventory.
A solution is needed to help companies rectify this situation. A solution is needed to help companies free up some capital. A solution is needed to reduce the globalization of the supply chain.
Well, there is a solution and the solution not only helps with the liquidation of the inventory but also helps manufacturers to support other local businesses. BizBiz Share is a marketplace where companies can buy, sell or rent their unused inventory, warehouse space and equipment. The opportunity is there to buy from local companies for quality resources at below prime price. This is exactly the right direction for companies to consider taking right now.
The benefits of supporting local businesses are numerous. We need to create a new normal and that means minimizing global purchases, keeping capital in our own backyards. Together, by supporting local companies, we can kickstart the economy.