Businesses reflect on challenging year

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This article was published 05/01/2024 (726 days ago), so information in it may no longer be current.

Members of Brandon’s business community reflected this week on some of the highs and lows of 2023 while gearing up to tackle the challenges that lie ahead in 2024.

Among the challenges of the past year cited by business leaders are interest rate hikes, inflation, supply chain disruptions, economic uncertainties and labour market shortages. These obstacles are expected to continue impacting business operations in the coming year, despite the promise of new opportunities.

Brandon Chrysler general manager Warren Murray said 2023 was almost a “take it or leave it” situation in the automotive industry.

Having survived the scarcity of vehicles from 2020 to 2022 (during and post-COVID), he said last year felt more like a return to normalcy after three abnormal years.

“We didn’t witness a surge in vehicle sales due to increased interest rates and expecting sales growth in 2024 seems unattainable with interest rates where they are,” he told the Sun. “Our focus is to maintain sales rates while nurturing our service and parts departments, envisioning potential growth in these areas after stabilizing the supply of car parts.”

On the ongoing supply chain disruptions, Murray said, the challenges primarily concern the transportation of vehicles from manufacturing sites to dealerships. While vehicle production continues as planned, the logistical aspect of moving vehicles to dealerships encounters obstacles due to a shortage of rail cars and trucks to transport them.

“The shortage of drivers within this company further complicates the seamless transit of vehicles from manufacturing hubs, such as Winnipeg, to their dealership in Brandon,” he said. “To counteract these challenges and maintain their inventory, they’ve adopted creative solutions, including dispatching their drivers to the manufacturing site to collect and transport vehicles back to the dealership.”

Westoba Credit Union chief executive officer Jim Rediger said 2023 was a year marked by significant milestones and obstacles.

One of the milestones, Rediger said, was the potential partnership with Assiniboine Credit Union and Caisse Financial Group to form a new financial co-operative in the province.

“Pending approval of the business case and positive feedback from both members and staff, Westoba anticipates a member vote, expected around May or June 2024,” he said. “This strategic merger remains the primary driver shaping the organization’s activities throughout the first half of the year. If the response is affirmative, significant efforts will be directed towards the establishment and launch of the new credit union by Jan. 1, 2025.”

However, he said, challenges persist in the new year, particularly amid high interest rates and inflation, noting that despite a slight moderation in inflation, hovering around 3.1 per cent, it remains above the preferred threshold of two per cent set by financial institutions.

“We shouldn’t get too optimistic that rates are going to come down soon, considering recent statements from the Bank of Canada,” he said. “If your mortgage is coming up for renewal, you’re likely to continue to look at higher payments. Our advice is to be proactive and come in and talk to your financial institution as soon as possible.”

IntriTech Digital Marketing chief executive officer Emelio Brown told the Sun the Information Technology sector witnessed labour market shortages last year, which led him to sell Juggernaut Computers, a subsidiary, noting the decision inadvertently boosted the marketing business, increasing its workload.

“The difficulty in finding adequate talent during that challenging period forced us to make that tough decision,” Brown said. “Our usual source of new talent, such as interns from institutions like ACC, declined. This lack of new talent influx coupled with internal churn led us to the decision to sell the business.”

Brown outlined ambitious goals for 2024, aiming for 100 per cent business growth without escalating expenses. Leveraging technology and efficiency-driven strategies, the company is looking to expand without compromising quality or client retention. Despite labour shortages, Brown remains confident in the company’s growth potential.

Brandon Chamber of Commerce general manager Connor Ketchen said the chamber aims to foster networking opportunities, host impactful events, and advocate for members through engagements with government stakeholders. Key events such as luncheons, conferences and consultations form a crucial part of the chamber’s agenda, with a renewed emphasis on empowering women in the community.

Advocacy remains a cornerstone, Ketchen said. The chamber will continue regular engagements with provincial and municipal governments, collaborating with various stakeholders to ensure Brandon’s voice is heard.

“My position on the Premier’s Business and Jobs Council allows me to represent Brandon’s perspectives and bring home insights,” he said. “We’re also collaborating with multiple local stakeholders on the Grow Brandon consultation, working towards a comprehensive community economic development plan scheduled for rollout in 2024.”

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