Corner Brook small business owners concerned about economy

With a dire fiscal situation looming over the province, businesses in Newfoundland and Labrador are facing a tough year. 

• N.L. unemployment rate at highest level in 5 years
• CBCNL selects prolonged oil slump and its effects as top story of 2015

Some of those who face the biggest challenges are small business owners. 

Sherry George, the owner of Take the Plunge, and Mel Woodman of Mel's Autobody and Speedy Autoglass, spoke recently with CBC Radio's Corner Brook Morning Show about what they're facing in 2016.

... 'I'm paying about $1,500 more than I would have paid just about six months ago.'- Mel Woodman

George said as a retailer, her main worry is the declining value of the Canadian dollar.

"A lot of things that I source for product merchandise in my stores are affected by that, price points are an issue for me. I want to maintain great quality, great pricing for customers, it's what they've been used to since to for the 13 years I've been around," she said.

"Some suppliers I deal with directly that are in the U.S., I have actually stopped dealing with. There are other issues with Canadian distributors, some of them source materials and/or finished products and bring them into Canada and then distribute, and bill in Canadian dollars."

Price-conscious consumers

Woodman said that consumers in Corner Brook are "very price conscious," adding the current status of the dollar affects small business owners a little bit more.

"There's no doubt that the dollar does make a difference. I purchased a piece of equipment just yesterday and because of the Canadian dollar, I'm paying about $1,500 more than I would have paid just about six months ago," he said.

Woodman said one of his biggest concerns is getting labour.

"A few years ago the biggest challenge was a lot of people moving to the mainland, Alberta was the big buzzword. But the people now who've been laid off in Alberta and have come back are still used to those big dollars," he said.

"I'd love to be able to pay that. Obviously in our economy it's a challenge. So, we have that double-edged sword. We want to be able keep people around here — but once again that would mean more pricing increases to the consumers." 

Population dwindling

With the province's population dwindling, George said it's a challenge for many small business owners to know what the consumer wants.

"You look at the population base, the numbers you have to deal with. Not everybody in the province will need your product or services," she said.

"But what you want to be really in tune with is with the customer's needs. What do they need, what do they want? Offer great service, great selection and try to develop great pricing, and you will deliver a customer base."

Some suppliers I deal with directly that are in the U.S., I have actually stopped dealing with.- Sherry George

Moving forward 

Woodman said while he's always been an optimist, he doesn't envy municipal and provincial leaders who have some tough decisions ahead.

"Corner Brook and western Newfoundland has been good to me, and my family. So moving forward, I'm just going to deal with the issues as they come," he said.

"People realize it's tough times. So many people that I talk to are saying, 'We know there's going to be some things happening in the next number of years.' When we close up it's a little different than one of the corporate stores closing up. If I were to close tomorrow, that's local people who are out of work."