By Phil Charal
LO president

Judging from my conversations with LO members over the past few months, our industry seems to be surviving the recession quite well. Considering the financial state of most countries throughout the world, this is wonderful news. Let’s hope this continues into 2013 and beyond.

In a recent end-of-the-year interview, Prime Minister Stephen Harper gave all Canadians some advice for 2013. Get your spending and your debt under control!

Apparently, we Canadians are borrowing at an alarming rate. These borrowed dollars are sustaining consumer spending, not wealth-building through investments in business or a family home. Statistics show that for every dollar Canadians make, they owe $1.64. These levels compare to what was reached in the U.S. before the economic crash, from which that country is still trying to recover.

I realize that with low interest rates and a relatively healthy Canadian economy that this is sustainable for the short-term. At some point, possibly in the very near future, interest rates will increase. We must all be aware of this and prepare ourselves appropriately.  

Predictions for Toronto, say that there will be slightly slower population growth, due to relative high unemployment, which is slowing the migration to the city. Major investments in power and transportation projects will, however, drive construction employment, even though it is predicted that housing starts will slow down.

The Ontario housing market will remain well balanced, supported by record low mortgage rates, with prices continuing to rise.

Our biggest challenge will be the perennial problem of acquiring labour. Ontario will face lower labour force growth due to its aging population. The population growth rate between the ages of 15 and 64 declined from 14.5 per cent between 2001 to 2011, to an expected 6.6 per cent level between 2011 and 2021.   

Over the long run, an aging population is a central challenge facing all of us. It is also of major concern for future growth of Ontario’s economy. The aging population will also demand more public services, such as efficient health care.

According to the Canadian Federation of Independent Business (CFIB), the outlook for 2013 is optimistic. Forty per cent of its members expect a positive performance over the next three months, and 49 per cent expect a stronger performance over the next year. The CFIB survey showed 32 per cent of firms are looking to increase full-time employment over the next year, while eight per cent expect to cut jobs.

Business optimism has been greater across western Canada, than in Ontario for the last nine quarters. This province has experienced moderate growth performance this year, and that is expected until 2014. The weak growth in Europe and in the U.S. has contributed to the slow growth in Ontario over the short term.

As I have stated before, these are difficult times, not just for our industry, but many others. There is still opportunity for success and long term growth even in the present economic conditions.

From what I can see, the economic outlook for 2013 looks like more of the same. Now, more than ever, it is essential that we stay organized, informed and up-to-date on all that is available to enhance growth, success and prosperity.

Do not overlook the great learning, educational and professional development programs that Landscape Ontario offers to help in any area of development that you require.

The winter months are a good time to review your business plans, goals and long term outlook. I encourage you to contact membership services at Landscape Ontario to obtain all the information on the unique and exciting programs offered by our great association. Do not miss this opportunity to improve your economic situation.