Inflation is both a challenge and an opportunity for companies.
The Côte-de-Gaspé Chamber of Commerce invites you to a cocktail conference where you can network and learn more about this hot topic.
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Senior Director, Consulting Services
Soaring inflation is causing headaches for consumers and entrepreneurs alike. With the Consumer Price Index reaching 6.3% in December 2022, the situation is far from settled, even if it is tending to stabilize.
What explains this rapid growth?
Many factors are at play, such as supply chain disruptions, higher transportation and energy costs, the war in Ukraine, and even labor shortages. That's why the Bank of Canada has gone to great lengths to calm things down, raising its key rate several times in recent months. However, this policy has caused several interest rates in the economy to rise rapidly. As a result, SMEs are suffering from both rising costs due to inflation, and rising interest rates, which are placing an additional burden on their shoulders.
Devastating impacts
A company that fails to react to this situation will see all its costs rise rapidly as a result of high inflation. Wages, raw materials, interest charges... The impact is already being felt at every level, creating the imminent danger of a gradual erosion of profitability. Because profits will no longer be made or sufficient cash flow generated, it will be very difficult to repay debts. Ultimately, the company could find itself in a situation of insolvency, or worse still, be forced into bankruptcy.
Step back and take action
It's time to take the bull by the horns. Instead of letting the situation gradually deteriorate, it's urgent to take a step back and take stock of your business processes.
Because by taking charge, you can not only create business opportunities in the short term, but also improve your productivity in the medium and long term.
