Authored by Pam Campbell, Senior Vice President of Finance and Operations at Vivreau
Canadian B2B companies are contending with a volatile economic landscape defined by persistent trade tensions, supply chain disruptions, and sluggish domestic growth. According to the Canadian Chamber of Commerce, the ongoing U.S. trade conflict has inflicted collateral damage on Canadian exporters, reducing their access to traditional markets, raising input costs, and pushing many to pivot toward Asia and Europe. Further, the trade wars have led to supply chain uncertainties, as orders are delayed or cancelled, causing chaos and interrupting consistent access to certain materials.
Confidence amidst uncertainty
However, despite these growing challenges faced by B2B companies across the country, a recent Corporate Confidence Survey from Vivreau found that nearly 97% of business leaders are confident in their organization’s ability to effectively manage and thrive despite uncertain times.
As global trade relationships grow more complex and inflationary pressures rise, businesses are being forced to adapt—balancing cost containment while maintaining focus on long-term growth. Here’s how businesses are navigating these challenges.
Cost management strategies for resilience
One way that businesses are staying on top of profit margins and long-term growth is through careful financial planning and strategic cost management. According to the Vivreau survey, about one-in-three Canadian companies intend to pause certain capital expenses, while one-in-five plans to pause certain operating expenses.
Notably, only 38% of surveyed companies expect to maintain their current operational expense plans, signaling a widespread trend toward scaling back and reassessing priorities. Despite cost-cutting measures in some areas, Canadian businesses are doubling down on focused investments in key areas that they believe will drive future success. These areas include improving facilities to enhance operational efficiency and improve employee ameities, strengthening risk management practices to navigate uncertainty, fostering employee development to boost engagement and productivity, and, most significantly, advancing technology and digital transformation efforts to remain competitive in an increasingly digital economy.
The role of technology in driving agility and innovation
Canadian businesses are increasingly investing in technology such as artificial intelligence (AI) to drive efficiency and growth in an ever-evolving market. These technologies are no longer seen as optional, but as essential tools for staying competitive and future-proofing operations. In fact, the Vivreau survey found that 80% of large (500 or more employees) Canadian organizations are making tech investments a top priority.
A McKinsey study on courageous growth found that companies that outperform on growth invest more aggressively in digital-led transformations and AI to boost sales and marketing productivity. Digital tools such as AI-driven demand forecasting and cloud-based enterprise resource planning systems enable organizations to optimize supply chains, improve operational efficiency, and respond more nimbly to market volatility by streamlining internal processes while opening new channels for customer engagement, data-driven decision-making, and innovation.
Through careful investments, B2B firms can build digital resilience into their operations and turn challenges into opportunities for smarter, more agile growth. This not only helps them mitigate risks in turbulent markets but also positions them to capitalize on new opportunities. Whether it’s through predictive analytics for better decision-making or automation to reduce manual inefficiencies, these technologies empower businesses to turn challenges into opportunities.
Sustainability as a strategic priority
Despite widespread reassessments of investments and expenditures, less than 10% of Canadian companies are deferring or deprioritizing sustainability initiatives. This signals a clear commitment to long-term environmental responsibility, despite economic strain. In fact, businesses are beginning to see sustainability as a strategic imperative that aligns with evolving employee expectations, regulatory pressures, and competitive advantage.
The national ESG leader for KPMG in Canada recently expressed a general understanding among companies planning 10 to 15 years ahead: businesses actively lowering their emissions and undertaking socially responsible decisions are likely to be valued more highly than their industry peers who fail to engage in such efforts.
Employees are also placing an increased value on corporate sustainability initiatives, as nearly 70% of employed adultsexpect their employers to invest in sustainable practices. The next generation of the workforce, aged 18-34, is even more likely to take a company’s environmental practices into consideration when deciding whether or not to work there.
Whether it’s investing in more efficient water systems, reducing packaging waste, or embedding ESG metrics into procurement, B2B firms understand that sustainable operations are good for business.
Resilience through flexibility, innovation, and purpose
Canadian B2B companies are showing that resilience doesn’t mean standing still. It means making smart trade-offs, staying flexible, and committing to investments in technology and sustainability that ultimately support long-term growth.
While the road ahead remains uncertain, Canada’s B2B sector is navigating it with a clear sense of purpose. By balancing short-term needs with long-term vision, these companies are setting an example of how to thrive in uncertain times.
