Opinion: Construction season impedes businesses struggling to recover

As small business owners fight to recover from the last three-plus years of pandemic-related hardships, many now find themselves facing yet another roadblock, literally.

The arrival of spring may mean sunshine and nicer weather, but it also means the arrival of the dreadful construction season.

With construction going on nearby, businesses tend to see reduced customer traffic as there may be limited parking, and the noise and dust can be deterrents.

Deliveries may arrive late (or not at all) because courier access points are blocked. And those companies offering local deliveries lose time and money due to detours and traffic jams.

According to survey data from the Canadian Federation of Independent Business (CFIB), 41 per cent of small business owners say their operations have been negatively impacted by road work.

Of those impacted, more than half saw decreased revenues, and an alarming 12 per cent were forced to consider relocating or closing their business.

Just last week, CFIB heard from a business owner who has experienced significant revenue loss due to ongoing construction in front of his business.

This has left him with no choice but to lay off all his staff and he now operates the business on his own, six days a week. If the construction doesn’t wrap up soon, he fears he may have to close his doors for good. Unfortunately, this story is all too common.

The challenges associated with construction projects gravely affect small businesses, yet only three out of 10 disrupted business owners are satisfied with the support they received from their municipal government to help deal with these challenges.

That is why the CFIB has been calling on municipalities across Canada to introduce construction mitigation plans, to help limit the negative impacts of public infrastructure work on small businesses. We believe disruptions can be minimized through better planning, communication and execution of projects.

CFIB is asking for business owners to be consulted in the process leading up to construction projects, so that they are not surprised by the impacts and can plan accordingly.

While projects are underway, municipalities should designate business liaison officers to conduct frequent, face-to-face meetings with impacted businesses to help ease concerns and avoid confusion.

It is also important to ensure projects are completed within a strict timeline, with penalties in place for construction work that goes beyond its expected end date.

Far too often, roads remain torn up and storefronts remain inaccessible long past planned completion dates, prolonging the period of disruption for small businesses.

The cherry on top of a good construction mitigation plan would be a compensation program that would provide grants, or tax breaks to business owners who experience revenue losses due to public infrastructure work.

For example, the City of Montreal offers a financial assistance program for businesses affected by major construction projects. This program is specifically designed to mitigate the financial impacts on businesses affected by work sites and to help businesses stay open during ongoing construction.

Eligible Montreal businesses can apply to receive up to $40,000 based on the revenue losses they’ve incurred.

The CFIB is urging other Canadian municipalities to follow the Montreal’s lead and make the well-being of local small businesses a priority by working to mitigate the impacts of infrastructure work.

Construction is a very real issue for small business owners; that is why the large majority (89 per cent) support the adoption of a coherent construction mitigation plan, including compensation, by their municipalities.

It’s time for governments to stop adding to the list of roadblocks, and instead, help pave a smoother road to recovery for local businesses.