Small- and medium-sized businesses drive Western Canada’s economy, serving as a powerful engine for Canada’s economy overall. Across the Western provinces, the business community is built on many strengths including the region’s robust natural resources, growing population, diverse industries, and entrepreneurial spirit. From pristine landscapes with mountain ranges and ocean views, to thriving urban centres with high quality living standards, Western Canada continues to be a vibrant and desirable place to live, work, and enjoy.
This report provides a summary of discussions hosted by Doane Grant Thornton LLP, where leaders in various communities shared their experiences, challenges, and opportunities openly and honestly. It includes insights from over 130 participants who share a common goal: build on the thriving economy in Western Canada.
*To protect the privacy of the business leaders involved in these conversations, all quotes are anonymous. Some quotes may have been edited for clarity and brevity but have remained true to the original sentiment.
At the end of 2024, inflation in Canada was close to the 2% target and GDP growth was solid at 1.5%. While inflation remains low in 2025, in part because of reduced energy prices and the removal of the carbon tax, the economy entered a new period of uncertainty as trade tensions with the US continue to intensify.
According to an outlook from the Organisation for Economic Co-operation and Development, Canada will narrowly avoid falling into a recession in 2025 with flat economic growth for the year. While some business leaders are worried and others are seeing how things play out, respondents agreed that it’s a complicated time to do business, causing many to consider how they can mitigate any potential damage to focus on what they can control.
A constantly shifting landscape can make it difficult for any business to find the stability required to grow confidently. During times of uncertainty, the strategy is often to cut back and run leaner operations to survive. While it’s important to endure in order to navigate challenges, it doesn’t mean businesses have to sacrifice opportunity—especially to grow and flourish. By prioritizing adaptability, financial resilience, and building strong relationships with employees and customers, businesses can respond to changes with more agility and tenacity.
Western Canada’s economy experienced varied growth in 2024 and is expected to continue trending upward for the rest of 2025. Across our discussions with business leaders in Alberta, there was a strong sense of optimism for the future driven by confidence in Edmonton’s high growth opportunities, workforce, and increasing population. According to Statistics Canada, Alberta, Saskatchewan, and Manitoba combined contributed more than one-third of the 1.6% increase in national GDP last year, with Alberta (+0.43 points) contributing almost as much as Ontario.
People power businesses—without them, they can’t succeed. Businesses depend on people to operate, deliver, and support growth while carrying out their mission and purpose. But finding dependable and skilled talent is becoming more difficult for businesses across many industries in Western Canada. This was one of the most common challenges shared by leaders throughout our discussions and is notably impacting the trades. A recent Business Council of Alberta report says, “Alberta—and, indeed, all of Canada—is facing a deficit in skilled trades workers. From welders and electricians to mechanics and technicians, businesses are struggling to find the talent they need."
Building connections is crucial for growth and success in business, but partnering with fellow leaders—or even those seen as competition—can increase success, especially during uncertain times. Sharing resources, expertise, and risk is a huge benefit to joining forces. Partnerships also allow businesses to combine strengths, tackle challenges head-on together, and often accomplish more than what they could alone.
Across our discussions throughout the region, many participants noted the advantages of partnering with fellow businesses in different forms, whether meeting monthly for coffee with owners in completely unrelated industries to share knowledge, or developing legal agreements to cost-share, leverage a wider range of skills, and expand into new markets.
Keeping pace with technology can feel overwhelming—but understanding the risks, exploring the resources available, and recognizing the opportunities can transform its use from a challenge to a strategic advantage. Adopting digital tools is key for businesses to stay competitive and keep critical assets—employees, customers, and data—protected and secure.
Many businesses in Western Canada are slow to adopt new technology, despite the potential significant advantages it offers. Business leaders throughout our discussions shared they’re optimistic about using new technology and AI, but are hesitant to fully commit due to an understanding of how to properly integrate it to realize its many benefits.
Together, we can continue to elevate Western Canada’s business community to compete nationally and globally.
Opportunities are amplified when the business community comes together, and we’re looking forward to following these conversations through 2025 and beyond as new governments come into play, advancements are made in technology, and the business community continues to collaborate.
We’re closely monitoring policy changes and can help you navigate challenges and unlock opportunities. Visit our website for updates and reach out to your advisor for support. Since establishing our presence in the West over 50 years ago, we’ve helped businesses grow, transition, and thrive—and we’re just getting started. Reach out to your advisor for support.
