New research from KPMG in Canada has found extreme weather events this year, from rampaging wildfires to damaging storms, floods, and heat domes have impacted nearly 60 percent of Canadian small- and medium-sized businesses.
The impacts on their operations ranged from damaged facilities and broken supply chains to increased costs and insurance claims.
More than half experienced a significant rise in their overall costs, while 44 percent cited a direct loss in revenue.
Key poll findings:
- 59 percent of Canadian SMBs say they were “directly impacted” by extreme weather events
- 51 percent experienced disruptions in their supply chain or broken supply chains
- 45 percent say their facilities were damaged, for example, a store or factory, etc.
- 41 percent had to relocate their operations or move to other facilities
- 54 percent say their costs rose significantly
- 44 percent suffered a direct loss in revenue
- 44 percent say their employees were also directly impacted
Canada’s largest companies are also feeling the heat. As many as three-quarters of Canadian CEOs believe that natural disasters and extreme weather events are trends that will negatively impact their organization’s prosperity over the next three years, according to KPMG International’s 2023 CEO Outlook survey, which compares to only 56 percent of their global counterparts.
|
National (700) |
BC (137) |
BC excl GVA (64) |
AB (78) |
SK&MB (31) |
ON (264) |
ON excl. GTA (160) |
PQ (154) |
Atlantic Canada (36) |
|
|
Our operations were directly impacted (e.g., shut down operations to prepare) |
59 % |
55 % |
64 % |
49 % |
71 % |
63 % |
79 % |
59 % |
61 % |
|
Our supply chains were broken, disrupted or impacted |
51 % |
47 % |
50 % |
42 % |
58 % |
54 % |
61 % |
51 % |
58 % |
|
Our operations/facilities were damaged, for example, a store or factory, etc. |
45 % |
48 % |
66 % |
42 % |
52 % |
45 % |
56 % |
44 % |
33 % |
|
We had to relocate our operations or move to other facilities |
41 % |
43 % |
52 % |
29 % |
39 % |
44 % |
50 % |
44 % |
28 % |
|
Our costs rose significantly |
54 % |
57 % |
67 % |
45 % |
48 % |
58 % |
72 % |
53 % |
56 % |
|
Our revenue declined due to impacts on our customers, including decline in tourism |
44 % |
41 % |
61 % |
44 % |
58 % |
43 % |
54 % |
47 % |
42 % |
|
Our employees were also directly impacted |
44 % |
39 % |
42 % |
37 % |
35 % |
48 % |
55 % |
45 % |
44 % |
|
Our insurance was cancelled, or our insurance costs increased significantly |
44 % |
47 % |
52 % |
38 % |
42 % |
46 % |
54 % |
41 % |
42 % |
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