According to the latest Trade Confidence Index (TCI) results from Export Development Canada (EDC), close to one-third (29%) of exporters surveyed cited supply chain challenges as their top concern for growing or maintaining a business outside of Canada.
More than half (57%) said it is impacting their production. Other key challenges facing respondents include rising business expenses (28%), global economic conditions (26%) and hiring skilled talent (25%).
Nearly one-third (31%) of survey participants indicated the ongoing Russia-Ukraine conflict is creating challenges, while more than two-thirds (74%) said rising inflation is negatively affecting their business, and more than half (51%) expressed that a global economic slowdown would negatively impact them in the next six months.
Despite these challenges, exporters said they remain optimistic about diversifying into new markets, including reaching the Asian export destinations of Japan and South Korea. The survey saw a slight increase to 38% from 34% in the spring in businesses that started exporting. The U.S. is still the top new market at 26%, followed by Brazil (12%), Australia (11%), Mexico (11%), and the United Kingdom (9%).