CANADIAN NEWS March 23, 2022
Canadian Officials Lift COVID Restrictions, Though Recovery Is Slow
Promo firms say a full upturn to 2019 numbers will be gradual in the face of significant headwinds that remain.
As the Canadian government begins lifting the last COVID restrictions, promo companies look forward to a surge in business. However, it may be a while before that comes.
In Ontario, mask mandates for most indoor settings were lifted Monday, March 21; they remain optional, including in schools. The government there plans to lift the rest of the restrictions by April 27. Capacity limits and the provincial proof of vaccination system were dropped earlier this month.
To the east, Quebec, the second-most-populous province, plans to drop its mask mandate in most settings by the middle of next month. Less than two weeks ago, officials there dropped its vaccine passport system and capacity restrictions for restaurants, though people still must be seated to eat and drink.
Starting April 1, the negative test requirement for crossing into Canada will also be rescinded. All travelers must still be fully vaccinated to leave Canada and to return. Random testing at the border will continue for the time being, though people no longer have to quarantine while awaiting test results.
This marks a gradual easing of health restrictions across Canada as hospitalizations continue to fall, though some officials are sounding the alarm about a possible sub-variant called BA.2. But there are now other challenges facing Canadians, including ongoing staff shortages, geopolitical uncertainty, supply chain holdups and inflation rates not seen since 1991.
A poll conducted last week by market research firm Ipsos found that 60% of Canadians are concerned that the skyrocketing cost of food will make it difficult to feed themselves and their families. That’s up 16 percentage points from November. Nearly 70% of parents say they’re concerned about their ability to continue putting food on the table.
Beyond food, 85 per cent of Canadians are concerned about inflation making “everyday things” less affordable.https://t.co/0d5CqGPRWf
— Globalnews.ca (@globalnews) March 23, 2022
Inflation in Canada currently sits at higher than 5%; it’s expected to be almost 6% by the end of April. This is in addition to surging prices at the gas pumps due to the ongoing crisis in Ukraine. More than two-thirds of Ipsos survey respondents say they’re not sure how much longer they can afford to fill their tanks.
Canadians are now less worried about climate change and quality of health care, and more about daily affordability of essential goods. “What we’re now seeing is an agenda that’s very much dominated by really urgent economic issues, principally, the cost of living,” Darrell Bricker, CEO of Ipsos Public Affairs, told Global News. “What we’re going to see is people’s focus is going to get closer to home and less on what’s going on in places like Ukraine. That tends to be the pattern.”
Meanwhile, Canadian promo companies eagerly await more business recovery after two years of challenges. Mike Yager, president of Spotlight Sport & Corporate Wear (asi/332753) in Humboldt, SK, where all restrictions were lifted about a month ago, says clients are still playing it safe, and those who were hit the hardest by a COVID-induced drop in business haven’t yet returned.
“It’ll take time, because business owners will want to see a few months of steady recovery and repay some debts before they open up their wallets for promo products,” says Yager. “Promo is always the first expense line to trim and some of the last items to be added back once business starts to rebound.” He’s preparing for a tough six months and hopes for a much-improved Q4, barring any new lockdown waves.
Winnipeg-based Danny Braunstein, director of client success for BAMKO (asi/131431) in Canada, says he’s experiencing more optimism among clients across the country, though demand is still dampened. Manitoba, like Saskatchewan, has also lifted most of its restrictions, effective earlier this week.
“Clients are cautiously optimistic as businesses navigate their return-to-office policies and try to strike a delicate balance between safety and comfort as restrictions are lifted,” Braunstein says. “Our sales are extremely strong across most verticals as we continue to rapidly increase our footprint in Canada.” Braunstein says he’s anticipating that they’ll continue to contend with supply chain woes, chiefly as a result of the massive increase in oil and gas costs and a possible virus wave in Asia.
While Alco Prevention Canada (asi/30166) in Laval, QC, was able to serve the booming COVID market with masks and tests, restriction lifts have led to a significant drop in demand. President Stéphane Maurais says he and his team are now looking to the resurging restaurant and events markets.
“We’ve developed a brand-new product for distributors,” Maurais says. “Date rape has been a huge nationwide problem. Our personalized anti-intrusion lid prevents people from putting illegal substances into drinks and can fit virtually any glass size. We needed to be very creative, and stress innovation and opportunity.”
Ann Baiden, CEO and founder of Richmond Hill, ON-based Innovatex Solutions Inc. (asi/231194), says clients are finally asking for in-person meetings again, though a change of venue to Zoom if needed is a new convenience initiated by COVID. “We’re continuing to grow,” she says. “Fulfillment isn’t going anywhere, though the increase in costs is tough. The surge in gas prices has led some of the larger couriers to cut the number of drivers out on routes, which extends already-long delivery times. Events are starting to happen again, so clients expect quick turnarounds, but that can prove challenging.”
“We’re continuing to grow. Fulfillment isn’t going anywhere, though the increase in costs is tough.” Ann Baiden, Innovatex Solutions
As they’ve been doing throughout COVID, promo companies are taking one day at a time, tackling challenges as they come. “We all have our heads down, working long hours and pushing through,” says Jamie McCabe, president of London, ON-based McCabe Promotional Advertising (asi/264901). “We’re trying to find more good people while managing the business we have to the best of our ability. Nothing good is easy, and we’re really happy that we’re busy.”