The Fall Education Seminar, hosted by the SIOR Canada Central Chapter in partnership with Business Development Canada (BDC), brought together professionals from brokerages and development firms across Ontario. This event provided an invaluable opportunity for networking and knowledge sharing among industry leaders in commercial real estate.
With a diverse audience of attendees from across the province, the seminar featured insights from special guest speaker Pierre Cleroux, Vice President, Research and Chief Economist at BDC, who offered expert perspectives on the 2025 economic trends and their implications for the industry.
Key Takeaways from the Seminar
The seminar focused on four major trends impacting Canadian SMEs and the broader economy.
Here’s a breakdown of each trend with highlights from the presentation:
1. High Costs Impacting Businesses
Continued Cost Pressure: High costs remain a burden for businesses, affecting profitability.
Industrial Product Price Index: Despite slower inflation, prices are elevated, impacting business expenses.
Wage Growth Pressure: Wage growth remains above the pre-pandemic average, adding to operational costs.
Technology as a Solution: 35% of businesses that implemented cost-saving technology like chatbots reported reduced costs.
2. Shifting Customer Preferences
Price Sensitivity: 44% of customers prioritize the lowest price possible.
Support for Local and Green Products: 66% are willing to pay extra for local products, while 50% pay more for environmentally-friendly options.
Generational Shift: Zoomers (Gen Z) show strong preference for sustainable products, with a higher willingness to pay more for green fashion, furniture, restaurants, and groceries.
ESG (Environmental, Social, Governance) Focus: 92% of major buyers require suppliers to meet at least one ESG criterion, highlighting the importance of sustainability.
3. Labour Shortages Resurfacing
Job Market Tightening: The number of job vacancies is expected to decline, tightening the labor market by 2025.
Increased Retirements: More workers are retiring, with Ontario seeing a notable rise in retirements over recent years.
Top Strategies to Address Shortages:
Invest in technology and automation to streamline operations.
Develop a people strategy, focusing on growth opportunities, company culture, and competitive compensation.
Expand the hiring pool to include younger, older, and immigrant workers, along with upskilling current employees.
4. Importance of Technology Adoption
Expectation of Disruption: 38% of businesses anticipate technology disruptions over the next five years, up from 25% in the past five years.
Benefits of AI and Automation: 97% of businesses using AI report benefits, with 44% noting improved efficiency and time savings.
Technology Investment: Small businesses have room to grow, with only 46%-68% planning to invest in advanced technology compared to 94% of large businesses.
How to Take Advantage of These Trends
To navigate these economic shifts, businesses are encouraged to adopt proactive strategies:
Create a Technology Plan: Integrate automation and AI to enhance efficiency and reduce labor needs.
Develop ESG Practices: Focus on energy conservation, DEI (Diversity, Equity, Inclusion), and environmental governance to meet client demands.
Optimize Operations: Streamline processes, implement cost management, and improve energy consumption to reduce expenses.
Build a People Strategy: Offer meaningful work, competitive compensation, and a strong company culture to attract and retain talent.
Expand Customer Appeal: Market sustainably to attract environmentally-conscious consumers and Zoomers who value green products.
Conclusion
This collaborative event highlighted the ongoing commitment of BDC and SIOR Canada Central to fostering growth and innovation within the industry. By addressing emerging trends and providing actionable insights, the seminar equipped attendees with strategies to navigate a rapidly evolving economic landscape. Stay tuned for more impactful events in 2025 as we continue to support and inspire our industry professionals.
In the meantime, mark your calendars for our upcoming SIOR Young Professional Panel on November 27 at CoStar, where we’ll be diving into fresh perspectives and challenges for the next generation of leaders in commercial real estate. We look forward to seeing you there!
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