Gain – but not without pain: Canada Sees Revenues Rising But Slowdown in Pace of Growth
DALLAS – May 4, 2010 – Global economic growth is progressing steadily, but full recovery will not be reliably under way until December 2010, according to the latest edition of the bi-annual Regus BusinessTracker survey. The survey’s 15,000 respondents reported a higher percentage of businesses seeing revenue and profit growth than were experiencing decline. However, respondents, who were asked “When do you expect economic recovery and growth to be advancing strongly and reliably in your country?” have now shifted their expectation of the full momentum of economic recovery back five months, from July to December. In the Canada specifically, net growth companies are positive at +13%, but recovery expectations have shifted from June 2010 to November 2010.
The key findings of this worldwide survey emphasize that the business community needs to retain an element of caution in their optimism. The study revealed net growth, with 12% more firms reporting a rise in revenues rather than a decline, and 8% more companies experiencing an increase in profits rather than a reduction. However, businesses across the globe need to stay focused on strategies for cost management, streamlining and greater operating flexibility.
The second edition of the Regus BusinessTracker international economic indicator survey canvassed businesses in more than 75 countries about their financial performance and expectations for growth.
The survey analyzed growth expectations, with 76% of Canadian firms predicting revenue growth in the coming year compared to 70% globally. The effects of company size on economic expectations and stimuli were also studied. In Canada, more small companies (24%) than the national average (20%) advocated government guarantees against default. Additionally, the survey also analyzed sector differences, with 83% of financial services firms predicting revenue rises in the coming year, compared with 76% nationally and 70% globally.
Mark Dixon, Chief Executive of workspace solutions provider Regus, comments: “Despite the slippage between expectations and real experience of business growth observed in this latest survey, it is important to emphasize that the experience of growth is overall still positive around the globe. With a quarter of all financing to Canadian businesses deriving from the U.S. and exceptionally stringent lending,[1] small companies indicate they are particularly concerned with government guarantees against default.
An important caveat remains, however; commentators everywhere agree that businesses must take some important lessons away from the downturn. In particular the restructuring of workforces and workplaces should become a continuing process as the flexible working practices which helped weather the recession have yielded a number of positives for employers and employees alike. Anecdotal evidence gathered by Regus from its operations globally indicated that the shift from traditional commercial property leasing to solutions that accommodate more flexible working systems is certainly underway and likely to play a large part in the coming recovery.”
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Regus, the world’s leading global provider of innovative workplace solutions with 1,000 locations in 450 cities and 80 countries, offers products and services ranging from fully equipped offices to professional meeting rooms, business lounges and the world’s largest network of video communication studios.
For more information please visit www.regus.com.