October 1, 2009

Modest Growth Predicted by Employers

Preliminary data from a new labour market study commissioned by the Canadian Automotive Repair and Service (CARS) Council indicates that 53% of employers across Canada have experienced revenue growth from 2007 to 2008 and 28% have stayed the same over the same period. Further, the number of locations expecting revenues to stay the same in 2009 (35%) is higher than the proportion of those that reported flat revenue for 2008 (28%).

Fewer businesses are predicting growth for 2009 (46%) than experienced growth in 2008 (53%). However, given the economic instability over the past year, it is optimistic that a significant number of employers are predicting to at least maintain their current revenue level or see some modest growth.
 

Interestingly, employers whose revenues grew between 2007 and 2008 were more likely to have had both a training plan and a training budget as part of their overall business plan. Employers who had neither of these were more likely to include those whose revenues stayed the same or declined. The unfortunate news is that 59% of the industry has neither a training plan nor training budget in place.

Looking forward, employers were also asked to relate their plans or thoughts about their business over the next 12 months and over half (52%) see the opportunity to grow their business in the next year and almost as many (41%) plan to “wait and see” as the economy stabilizes. Those most optimistic are businesses whose primary activity is the sale or distribution of parts with 64% seeing an opportunity for business growth over the next 12 months.

The survey was completed by 2,181 employers across Canada during the spring of 2009 and was a key component to the new labour market study to update the data from the 2005 report, “The Road Ahead”. The timing of the survey proved to be interesting given the economic conditions of the past year and provided an opportunity to see how the industry was ‘weathering the storm’. The research explores current and emerging human resource trends, with a focus on : 

• Recruitment and retention

• Training and skills acquisition

• Workforce characteristics

• Economic and regulatory environments

A national advisory committee has guided the project and the research team has benefited from many other contributors across Canada.

The completed research report will be available on the CARS Council web site (www.cars-council.ca) by early December. If you would like to receive an e-bulletin to alert you to the report’s availability, please send an email to : tammy@carscouncil.ca.