Future-proof your business - ckca.ca

Future-proof your business Adapting to Technology and DemographicTrends

October 2017

reshaping Canada’s economy

Shifting workforce dynamics

Emergence of digital

technologies

4

Future-proofyour business

What is the impact on your business?

How should you react to keep your competitive edge?

What’s your next step?

5

Shifting demographics

6

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

2001 2005 2009 2013 2017 2021 2025

Historic Forecast

Canada’s labour force growth will be close to 0 by 2020

SOURCE: Statistics Canada.

1

Pain will be felt unevenly

SOURCE: Statistics Canada, medium-growth (M1) scenario.

Projected labor force growth rate by province

0.4%

British Columbia

–0.2%Quebec

Newfoundland and Labrador

–1.6%1.2%Alberta

0%Sask. 0.5%

Manitoba

0.2%Ontario

0%Territories

–0.9%

Nova Scotia

0.1%P.E.I.

–0.9%

New Brunswick

8

Millennials are becoming predominant in the workplaceMillennials and Generation Z will account for 50% of the workforce by 2020

f=forecastSOURCE: Statistics Canada,

8% 41% 30% 21%

Gen Z (after 2000) Millenials (1981-2000) Gen X (1966-1980) Baby boomers (1946-1965) Silent (before 1946)

2

2020(f)Gen Z (after 2000) Millenials (1981-2000) Gen X (1966-1980) Baby boomers (1946-1965) Silent (before1946)

9

Millennials: different skills and work expectations

Better educated and more tech savvy

Value work-life balance and flexible work arrangements

Seek professional development

Want a sense of purpose in their work

1234

10

Immigration will sustain Canada’s workforce growth

Immigrants will account for 80% of Canada’s population growth by 2032

f=forecastSOURCE: Statistics Canada.

3

%

Average 1992-2002

2022(f)

2032(f)80%

64%

56%

% of population growth coming from international immigration

BDC – Future-proof your business 11

What are entrepreneurs doing to secure the talent they need?Strategies to facilitate the hiring of skilled workers

Offer a more flexible work environment

30%Rely on older workers

29%

No strategy in particular

28%

12

But too few entrepreneurs are hiring immigrants…

BDC – Future-proof your business 13

Offer a more flexible work environment

Rely on older workers

No strategy in particular%

Entrepreneurs who rely on immigrants for skilled labour

Rely on immigrant workers

What your business can do

Create a more flexible workplace

MillennialsPosition your business on social media

ImmigrantsReach out to specific communities

Encourage mentorship

Partner with schools

Adjust your training

Aging workforce

Work smarter.

17

The power of digital technologies

18

E-commerce retail sales are booming in Canada

SOURCE: www.eMarketer.com, www.statista.com and BDC calculations.

1

2014$25 billion

2020(f)$56 billion

18

million

28 million

Retail e-commerce salesNumber of smartphone users

E-commerce is shifting the balance

of power from sellers to buyers

Low-cost e-commerce apps

allow small businesses to sell

worldwide

Online markets are borderless

A world of competition and opportunity

20

Automation will reshape the economy

SOURCE: World Robotics, 2016.

2

Worldwide sales of industrial robots will increase almost four times by 2019

2010121,000

2019(f)414,000

Canada lags other developed economies in automationDensity of robots by country; Multipurpose robots per 10,000 workers

SOURCE: International Federation of Robotics, 2016

South Korea

531

Singapore

398

Japan

305

Sweden

212

Germany

301

Taiwan

190

Denmark188

U.S.A.176

Canada

136

Belgium169

Italy160

Spain150

Automation boosts competitiveness

Higher productivity

Faster to market

Lower costs

More responsiveness

to customer needs

23

The rise of the data economy uncovers important business insights

SOURCE: IHS Markit.

3

201927

202031

202136

202243

202351

202575

202462

201823

201720

201618

201515

Number of devices connected to the Internet to increase four-fold by 2025Billion of devices

BDC – Future-proof your business 24

Canadian entrepreneurs are embracing digital technologiesPercentage using or planning to use technology in their business (20+ employees)

17%

24%

29%21%

In usage Plan to use in next 3 years

Social media E-commerce platform

BI technologies (e.g., big data, AI)

Robots/automated processes

69%

17%

39%

24%

22%

29%

19%21%

Build your online presence

Map out your business processes

Personalize your offerings

Learn how to attract customers online

Shop around before buying technology

Improve your efficiency with dashboards

Automation

Data economy

E-commerce

27

Canadian entrepreneurs already feeling the heat

already feel the impact of demographic shifts when recruiting skilled personnel

%

SOURCE: BDC survey, July 2017 (n=1,413).

Our survey of 1,400 Canadian entrepreneurs found:

recently changed how they do business after the adoption of digital technologies

%

SOURCE: BDC survey, July 2017 (n=1,413).

Our survey of 1,400 Canadian entrepreneurs found:

believe talent and digital technologies are of critical importance to their business

%

SOURCE: BDC survey, July 2017 (n=1,413).

Our survey of 1,400 Canadian entrepreneurs found:

31

Trends changing the Canadian landscape

Aging population1Rise of millennials2More diverse workforce3

Virtual marketplace4Rise of automation5Data economy6

DEMOGRAPHY TECHNOLOGY

32

The bottom lineEmbrace change and invest now to future-proof your business

bdc.ca1-888-INFO-BDC

BDC

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BDC

Thank you.

Michael PoyntonManager, Business Centre403 [email protected]