Challenges Facing Nova Scotia Businesses in 2025

As we look ahead to 2025, Nova Scotia businesses are gearing up to face some significant challenges, according to new survey data from Statistics Canada. The two obstacles that are most widely expected to be a hurdle for businesses in the province are recruiting skilled employees and rising input costs for creating products and services.

Recruiting Skilled Employees

One of the key challenges identified by businesses in Nova Scotia is the difficulty in finding skilled workers, particularly in industries like construction. Maurice Fares, the vice-president of a Halifax engineering, design, and construction management company, highlighted the struggle to find workers like bricklayers and formworkers who are essential for the construction industry.

Fares pointed out that the high demand for labor sometimes results in workers being on a project with minimal training, leading to delays and increased costs. A lack of skilled labor can significantly impact productivity on construction sites, causing delays that can stretch for days or even weeks.

Rising Input Costs

Another major challenge facing businesses in Nova Scotia is the rising input costs for industries like agriculture, forestry, fishing, and hunting. Farmer Philip Keddy highlighted the struggles faced by farmers in obtaining fertilizer chemicals and other necessary products since 2020.

In the second quarter of 2022, farm production costs in Nova Scotia saw a significant increase of 17.6% compared to the previous year. This trend was in line with the national increase, with higher fertilizer costs being driven by global events like Russia’s invasion of Ukraine, a major fertilizer exporter.

While fertilizer prices have slightly decreased, other input costs like cardboard for shipping produce have continued to rise. Keddy noted that the farm’s input costs have been steadily increasing, with estimates ranging from five to 12% every six months.

Impact on Accommodation and Food Services Industries

Businesses in the accommodation and food services industries are also expected to face challenges due to rising input costs. Nearly one in four businesses in these sectors anticipate that increasing costs will be their top challenge in the coming months.

In August, the Restaurant Association of Nova Scotia reported that nearly half of the province’s restaurants are either operating at a loss or just breaking even. The continuous rise in input costs, coupled with other challenges, is putting additional strain on these businesses.

As businesses in Nova Scotia navigate these obstacles, it will be crucial for them to adapt and find innovative solutions to mitigate the impact of recruiting skilled employees and rising input costs. Collaboration between industry stakeholders and government support may also play a significant role in addressing these challenges and ensuring the long-term sustainability of businesses in the province.