Many Alberta businesses not confident they will survive COVID-19: report

CALGARY (660 NEWS) – As many as one in four Alberta business owners feel that they aren’t going to be able to hold out until a vaccine is found.

However, it’s not just the pandemic lockdown holding them back.

A report and survey from the Business Council of Alberta show the top barrier for businesses resuming normal operations is the impact of low oil prices, regardless of whether the company works in the energy sector.

REPORT: In exceptional times, we need exceptional measures. We're launching a brand new report in partnership w/ @viewpoint_yyc on COVID-19's impact on Alberta's largest businesses & what business leaders expect in recovery. Download now. https://t.co/574fTfLG2U #abpoli #cdnpoli pic.twitter.com/4QGQRdVs03

— Business Council of Alberta (@BizCouncilAB) June 15, 2020

“COVID-19 and an oil price crash has severely impacted our economy, with many Albertans unemployed and businesses facing tough decisions,” said Michael Holden, VP Policy and Chief Economist of the Business Council of Alberta. “As we move through our relaunch stages and look towards recovery, we are looking at a long path back. These survey results point to long-term economic and employment impacts.”

The survey found 26 per cent of CEOs don’t think their businesses will survive until a vaccine is available while only 18 per cent are sure they can hire back employees that were let go.

Abut 90 per cent of businesses in Alberta say they’ve had a significant decrease in revenue.

Thankfully, many companies have been able to stay afloat thanks to government programs like the Canadian Wage Subsidy (CEWS).

WATCH: Federal wage subsidy program extended until end of August, says Trudeau

About 68 per cent of businesses surveyed said they either have or intend to apply for the subsidy.

“Of the respondents that had no to minimal layoffs, almost half of them benefitted from the subsidy, saving thousands of jobs, and protecting Albertans from potential unemployment,” said Holden.

The Business Council noted recovery from the pandemic will be slow and many business owners aren’t sure if they’ll return to pre-pandemic operations.

The report showed the oil market, a weak global economy, and low consumer demand are big barriers for recovery and all levels of government need to step in.

“Relaunch and recovery are different things,” said Holden. “We are in the relaunch phase in Alberta and we are now looking at what will be necessary for a strong recovery. One-third of our surveyed businesses indicated that additional or extended support will be essential to a strong and sustainable recovery.”

Holden added Albertans are resilient and able to adapt to the challenges ahead.