A new report by the Canadian Federation of Independent Business (CFIB) reveals that construction projects have significantly disrupted thousands of small businesses across Canada over the past five years, leading to declines in sales and revenue. The CFIB, representing 97,000 members, published the report on Tuesday, highlighting common issues such as traffic congestion, dust, debris, and noise.
Emily Boston, senior policy analyst at CFIB and a co-author of the report, emphasized the importance of balancing infrastructure upgrades with considerations for local businesses. “We’re not asking governments to halt necessary projects. However, prolonged construction can severely impact businesses, and improved planning and execution could mitigate some costs,” Boston stated.
The report indicates that 68 percent of CFIB members surveyed in May and June reported disruptions from local construction projects, a 27 percent increase from 2018. Notably, 49 percent of respondents faced difficulties with customer and staff access, 23 percent experienced high stress levels, and 33 percent received inadequate notice of construction activities. On average, businesses endured 508 days of construction-related disruptions over the past five years, with an average revenue loss of 22 percent during significant projects and an additional $10,000 spent on cleaning and repairs.
Local business owners shared their experiences: Matthew Lee of Louie Coffee reported reduced customer traffic due to ongoing construction near his shop, while Nishan Para of Liberty Eats experienced a nearly 50 percent drop in sales. Delivery services have also been affected by congestion, further impacting businesses reliant on takeout orders.
Julie Kwiecinski, CFIB’s director of provincial affairs for Ontario, urged municipalities to establish construction mitigation funds and better plan construction projects to minimize their impact on small businesses.
In response, Alexandra Dinsmore, communications coordinator at the City of Toronto, acknowledged the disruptions but emphasized that city-led construction is essential for maintaining infrastructure. The city has introduced grant programs, including transit expansion construction mitigation and commercial space rehabilitation grants, to support affected businesses.
The report recommends several measures for governments, including establishing compensation programs, implementing advance notice requirements, adopting comprehensive planning approaches, and designating business liaison officers for construction projects. The CFIB’s survey included 1,240 small businesses across Canada, with a margin of error of ±2.8 percent, 19 times out of 20.
