The Logistics Impact of COVID-19 on Small Businesses

Laure-Anna Bomal, Research Analyst

More than a year after the start of the pandemic, logistics-related concerns have increasingly been added to other small business worries. COVID-19 forced the shutdown of operations, disrupted production lines and workforces and generated numerous delivery delays. Across certain European countries and the United States, 94% of companies experienced supply chain disruptions in 2020. In March of this year in the U.S., nearly 44% of small businesses reported experiencing temporary shortages and supply chain issues.

In September 2020, HSBC estimated that 93% of Canadian businesses had concerns about their supply chains. Statistics Canada reported that, in the first quarter of 2021, 25% of private sector companies anticipate supply chain challenges in the next three months.

With the current logistics difficulties worldwide, it is important to understand the extent of their impacts on the supply chain. It would appear from the above U.S. data that small businesses have not been spared, but what is the real extent of the problem on Canadian SMEs? CFIB presents exclusive data to answer this question and shed light on these disruptions and their consequences going forward.

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