Quebec’s private companies more conservative about growth than other Canadian provinces: PwC

Survey shows 33% will focus on consolidation

Oct 25, 2010—The 2010 Business Insights® survey issued by PwC shows that Quebec’s private companies are being more conservative about their growth strategies over the next 12 months than in other parts of Canada. While 56% of Quebec’s private company leaders are focusing on growth in the next 12 months, 33% will be concentrating on consolidation which is much higher than the rest of the country, where only 15% rated this as their focus.

Similar to other respondents, Quebec’s private companies say that the economy is no longer the number one issue, it is now the competition (48% rated this the #1 issue in Quebec vs 40% for the rest of Canada). The survey also shows that labour shortages is the third most important issue in Quebec (at 28%), behind the economy at number two (at 33%). This differs from the rest of Canada, which selected profitability (at 26%) as the third-ranked issue of the year.

“Quebec’s private companies are ready to grow, but they are looking at the uncertainty in the U.S. economy and its slow recovery and they are proceeding with caution,” says Yves Bonin, Montreal’s leader for PwC’s Private Company Services practice. “Quebec companies have undertaken many joint ventures with U.S. partners, so our economic ties are deep.” Bonin said that although the third quarter of 2010 has been slower than the previous two quarters, there is still a feeling of optimism among his clients.

As with the rest of Canada, staying ahead of the competition will be the main challenge over the next 12 months, he says. Quebec’s private company leaders will keep a close watch on the competition and will continue to focus on better targeting of customers, reducing costs of operation, collaboration, and looking for ways to be more productive and competitive. “If you don’t make these investments when the economy picks up, you will not be armed to fight your competitors for your share of the market,” Bonin says.

The sixth annual Business Insights Survey examines issues affecting Canadian private companies. In the summer of 2010, more than 200 business leaders of Canadian private companies (with 42 in Quebec) completed the survey from a broad range of industries. The sample is concentrated around four provinces – British Columbia, Alberta, Ontario and Quebec.

Please visit www.pwc.com/ca/businessinsights for more information on the Business Insights 2010 survey, including:

• A copy of the full Business Insights report
• Regional “On-the-Ground Observations” report for Quebec
• In-depth interviews with the leaders of select private companies - Golden Boy Foods Ltd., West Canadian Industries, Budds’ Group of Companies, and Cardinal Couriers Ltd.

About Private Company Services (PCS)

More than 65% of PwC Canada's clients are private companies, ranging from high net worth individuals to owner-managed family businesses and large, professionally managed businesses. PwC's Private Company Services (PCS) group is a dedicated team of business advisors who help private company owners resolve day-to-day business issues and achieve long-term success. PCS offers the perspective of a third party with professional industry knowledge, business consulting, tax and accounting expertise.

For more information about PwC's Private Company Services, please visit www.pwc.com/ca/private.