Long-term outlook looking bleak for many Canadian companies: survey

Canada lags behind global CEOs in assessing business viability

Long-term outlook looking bleak for many Canadian companies: survey

The long-term future is looking bleak for many Canadian companies.

That’s because the number of employers doubting their business will still be around in a decade has increased, according to a report.

But some say human resources can play a big role in keeping the business going.

Overall, 35% of Canadian CEOs think their businesses might not be viable in 10 years, found PwC’s survey of 4,701 chief executives across 105 countries and territories conducted between Oct. 1, 2024 and Nov. 8, 2024.

That number is up from 32% in the 2023 survey. The number was 24% in the 2022 survey.

In contrast, more CEOs globally (42%) say their company will remain viable for less than 10 years, according to PwC.

What is the global business outlook for 2025?

Despite the gloomy long-term view, almost 60% of CEOs globally expect global growth to improve in the 12 months ahead, up from 38% in last year’s survey and only 18% two years ago, according to PwC. 

They also remain broadly confident about the outlook for their own company. Notably, more than twice as many expect to increase headcount in the year ahead (42%) as expect to reduce it (17%).

However, most responses to the survey were collected prior to U.S. President Donald Trump taking office once more, notes Yahoo! Finance.

Trump has since threatened to impose a 25% tariff on all Canadian imports to the U.S., and it has had an impact on Canadian business confidence, especially among small- and medium-sized enterprises, according to the Canadian Federation of Independent Business (CFIB).

How do you create a viable business?

As business viability has become a huge issue, 63% of CEOs globally have taken at least one significant action to change how their company creates, delivers and captures value, according to PwC’s latest report.

The most common reinvention actions taken by companies are:

“While Canadian CEOs are more optimistic about economic growth than they were last year, they recognize the need to embrace AI and new technologies, invest in new sectors and reinvent their businesses. Despite the uncertainty around potential economic measures that could come into effect with the new US administration, Canadian CEOs remain remarkably resilient and are preparing to take on the challenges ahead,” says Nicolas Marcoux, CEO, PwC Canada

But PwC is calling on employers to exert more effort on their reinvention.

“Importantly, almost half (46%) of Canadian CEOs said more than 20% of their revenues in the last five years came from competing in new sectors or industries, a promising finding showing the impact of some of the key changes underway. But we also encourage leaders to double down on reinvention given the opportunities it offers Opens in a new window   to deliver above-average returns and the threats and competitive dynamics that are reconfiguring industries faster than they may have thought.”

Nine in 10 Canadian CEOs of large organizations are planning acquisitions over the next three years, with four in 10 considering major transactions that could significantly impact their operations, according to a previous KPMG report.