After a long time some good news is going to be coming from the August Edition of Canadian Industrial Profile Service about the Profits of the in the first half of 2010 showing some positive growth for food and beverage related businesses. A twenty percent profit is set to be recorded for the accommodation industry, food services, retail and wholesale giving hopes for a recovery from the bad phase being witnessed throughout 2009. The publisher of this chronicle, the Conference Board of Canada, has teamed up with Business Development Bank of Canada (BDC) for the Autumn Edition. This edition is set to provide comprehensive information on what can be expected in terms of profits, production, cost and revenue from the industry in the next five years starting from 2010 to 2014.
The segments that are most likely to be benefit from this projection are just four out of the six core service sectors as they are tied to various events taking place in the economy and are either gaining or losing out on business during the process. Transportation and warehousing along with food and beverage manufacturing (like those that fit nicely in our drink holder) will see a slight dip in profit. The later half of 2010 has shown less then encouraging revival and happiness will be short lived even for the accommodation industry, food services, retail and wholesale trades when the balance sheets are accessed in 2011.
The limbo that entrepreneurs face is understandable since there will be a good phase followed by a bad phase and the market has become a tad unpredictable, just like cup holder sales as wheelchair accessories. Easy credit has dried up in the market and it is difficult to get a hold of a bank which is willing to give you a loan for working capital forget about expansion of equipment or machinery. BDC has leaped into the foray to stop these small business owners from sinking into oblivion by increasing their financial activities. Jérôme Nycz, BDC Vice President, Strategy and ERM mentions that fifty five percent of the loans given in 2010 were for the accommodation sector and that is a double digit increase versus 2009 in dispersal in line with the trend with the other service sectors. There was a huge response to the Economic Recovery Loan launched between July to October and 3,800 entrepreneurs benefited from it.
The Canadian Industrial Profile Service works together with The Conference Board of Canada to make forecasts of twenty three industries every year. BDC on the other hand is a business development bank of Canada having a hundred centers throughout the country to provide financial services to businesses.