The inaugural Entrepreneur Poll explored the outlook for 2006 in the eyes of the leaders of Canada’s top midcaps. Respondents in this Roynat-sponsored web panel zeroed in on skill and training issues as the top upcoming challenges.

A near two-thirds majority of respondents (63%) score highly as a challenge for 2006 the hiring of skilled employees, as shown in table 1. Those who consider it a highly serious challenge, scoring “7” on the 7 point scale, outnumber almost 6:1 those who consider it not at all or not much of a challenge, scoring it a “1”. The challenge of employee training follows in second spot.

• Volunteered comments are in keeping with these scores:
  
  • Finding employees with experience and training in our market is a big challenge
    
  • Labour...labour...labour...Mexico maybe?
    
  • Key concern for us is availability of people. Skilled and available for training.
    
  • Training and retaining people including aboriginals.
    
• Among other major challenges are exchange rates, energy costs, and the recurring issue of government red tape. The following comments capture respondents’views:
  
  • The dramatic rise of the Canadian dollar is of great concern.
    
  • I am concerned about a strong Canadian dollar and how it will affect our ability to compete in the US. I am also concerned about the threat of cheap imports from Asia, as our own customers threaten to re-source our parts unless we can meet Asian price targets.
    
  • Government interference through destructive regulation.
    
  • I think the ever increasing Canadian dollar is going to prove an insurmountable obstacle for many Canadian manufacturers. I believe that many well run companies must have dwindling resources because of the persistent rise in the dollar which is going to hinder there ability to cope with it in the future.
    
  • Will high energy costs affect spending? Will high energy costs affect spending? US dollar exchange rates and fuel costs are the two biggest challenges to our business.
    
  • Taxes are much too high, we do not have enough money to re-invest.
    
  • International "big box" competition is eroding our culture and driving products to the lowest common denominator - price. Soon every child will be dressed the same, be riding the same bike and playing with the same toys.
    
  • Our firm excepted, I believe mid-cap firms will face ongoing challenges with the instability of the Federal government. This will particularly affect those working internationally.
    
  • The Canadian dollar going higher.
    

At the bottom of the list of challenges are technology, access to capital, and reverberations from changes in the auto sector.

The 53 respondents in the handpicked panel were interviewed December 6-14, 2006. The principal investigators on this project were Dr. Conrad Winn and Tamara Gottlieb.