Important Update for YXE Businesses: GST Holiday Confusion
December 18, 2024
Advocating for Shared Prosperity:
January 22, 2025
Saskatoon businesses shifting from “surviving” to “thriving” in 2025
Business confidence in Saskatoon remains high according to the 2024 Saskatoon Business Barometer, the Saskatoon Chamber’s annual survey of business professionals and owners as they head into a new year. Nearly 80% of respondents feel optimistic about Saskatoon’s economy heading into 2025 with enough economic opportunities for their businesses to succeed.
According to Erin Lawson, CEO of the Saskatoon Regional Economic Development Authority (SREDA), this means economic benefits for our city and region: “Saskatoon consistently ranks among Canada’s top cities for economic growth thanks to the strength and forward-thinking mindset of our business community. Their confidence, coupled with their commitment to invest in homegrown talent, means jobs and growth for Saskatoon and all the communities that contribute to the success of our region.”
While 2025 looks bright, the Chamber’s Business Barometer detected a few scattered clouds overhead. The results of municipal and provincial elections in 2024, and the current uncertainty looming over Ottawa, has left 6 out of 10 businesses feeling uneasy about the political climate and how potential policy changes could affect their operations.
“As businesses look forward to shifting from surviving to thriving, they are closely monitoring potential shifts in government policy that could derail their plans,” says Jason Aebig, Chamber CEO. “Add the threat of U.S. tariffs on our products and commodities, as well as the economic fall-out from a change in Canada-US relations, and it is clear many businesses are hoping for the best as they prepare for the worst.”
Business leaders identified “customer demand” as their top growth challenge, replacing “inflation” in 2023. Declining disposable income, and rising costs of living, are driving demand concerns, particularly within the retail, tourism and hospitality sectors. These industries face continued strain as consumers tighten their budgets and limit their spending to essential goods and services.
Key findings from the 2024 Saskatoon Business Barometer include:
Revenue Projections:
- Approximately 55% of businesses anticipate revenue growth in the next 12 months, down from 2023 levels.
- 37% expect revenues to remain stable, a notable increase over the past two years (2022: 22%, 2023: 29%).
- The proportion of businesses expecting revenue to decrease remains stable at 7%.
Top Growth Challenges
- Customer demand (20%) has overtaken inflation as the top concern, followed by labour supply (19%) and access to capital (14%).
Supply Chain Confidence
- 78% of businesses are confident in their ability to acquire necessary goods and services, consistent with 2023 levels (76%).
Government Relations
- A majority of respondents (65%) reported no appreciable difference in the level and quality of their interactions or communications with government. Generally, their dealings with governments, at all levels, have neither improved or declined.
- Only 27% of businesses agree that current municipal taxation and fees reflect the level of services provided, echoing concerns from last year. Businesses continue to voice frustration over tax and fee increases as service levels decline, calling this trend unsustainable.
The Saskatoon Chamber deploys its annual “Saskatoon Business Barometer” survey in Q4 every year to benchmark business confidence across the city and advance pro-growth policies at the local and provincial levels.
The Greater Saskatoon Chamber of Commerce is Saskatoon’s voice for business and province’s largest Chamber, representing a powerful network of community-minded businesses, organizations and leaders who want the best for their city. Learn more at saskatoonchamber.com.
The Saskatoon Regional Economic Development Authority (SREDA) is committed to driving economic prosperity by supporting local businesses, attracting investment, and facilitating innovation across the Saskatoon region.