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Oct 17, 2022

MDR: What Is It? And Why Your Business Needs This Cyber Security Protection?

This featured blog was provided by Calvin Engen, F12.net CTO, CISSP.

October is Cyber Security Awareness Month,  so if you’re a business owner or leader, you may be exploring ways to enhance your organization’s cyber security. As you do, you are bound to run into scores of perplexing acronyms. One that is gaining steam in the cyber security space is MDR. But what is it? Who needs it? And how does it differ from all the other similar sounding acronyms?

MDR is a simple and effective IT shield that every SME should have.

Managed detection and response (MDR) is a cybersecurity service that performs “threat hunting” within a corporate environment. It rapidly identifies and limits the impact of threats without requiring additional or specialized staffing within a business—music to the ears of hiring managers everywhere during this unprecedented staffing shortage. MDR is an essential component required to protect a business from cyber threats.

Detection and response are essential.

If you see value in smoke detectors, fire alarms and fire departments, you’re already a believer in detection and response. After all, it is not enough to put all the focus on fire prevention and insurance recovery. The same applies to your cyber security only, since every business is globally connected, there are multitudes of cyber arsons afoot in your digital neighbourhood. 

Without MDR it takes, on average, 110 days for a security breach to be detected.

That means a cybercriminal has over three months to quietly move around within the network, lifting data and intellectual property and preparing for a ransomware attack. Once the ransomware attack occurs, a company goes into disaster mode, implementing their incident response plan—but they’re scrambling, not knowing how the adversary gained access, what they were doing within the network and what information they exfiltrated.

MDR reduces the time of detection to a matter of days, hours or even minutes.

The surveillance service is constantly threat hunting, searching for the breadcrumbs a hacker will leave in their wake, following them and catching up before they’ve had a chance to extract any company information or damage valuable data.

EDR, EPDR, TDR, MDR, FDR?

OK, the last one is a former president. But the others are all real security acronyms, which is confusing. Here is what you need to know, EDR, EPDR and TDR are automated tools deployed to protect endpoints. MDR is a service that combines technology and human intelligence to hunt for and respond to cyber threats in real time.

A good cyber protection plan is made up of several layers.

Leadership. Business leaders need to decide how to best protect their digital assets. Identify those assets (known in the IT world as the “crown jewels”) and become educated on how to adequately secure and protect them. This includes developing and enforcing policies impacting data access, storage, retention and destruction.  

Awareness and training. Train employees to identify a malicious attack, they are your “human firewall”. It’s important to educate your team in a meaningful and interesting way, otherwise, there’s a good chance of it going in one ear and out the other. Follow-up training with varied testing so they can apply their knowledge. This should not be an annual activity; refresh everyone’s muscle memory at least once a month.

Cyber hygiene. Businesses must manage their risks with frequent updates and validation to ensure systems are patched, tools are deployed, passwords are rotated, policies are actioned, and vulnerabilities are managed. An experienced managed security service provider (MSSP) will offer services to keep a business’s cyber hygiene squeaky clean.

The MDR layer. With all the previous layers established, a company is well set up to prevent a breach of their organization—but that doesn’t mean it will never happen. It would be illogical to build a house, but never install a fire detector, right? MDR is the fire detector and the fire department, putting out the fire before there’s significant damage.

Recovery. Even with all the above, you still need insurance.  That means backups, disaster recovery plans, and, yes, cyber security insurance.  Just as you cannot get affordable fire insurance coverage without adequate fire protection, detection, and proximity to response services, you’ll find you cannot obtain affordable cyber insurance without all the other layers.

A cyber security consultant can perform a security assessment to identify and prioritize a company’s gaps. This is useful because often, a company is unclear on which security investments will have the biggest impact. An assessment will identify critical assets, pinpoint any weaknesses in the organization’s defence, and recommend measures to augment existing layers of protection so that a company’s private data stays private. And isn’t that the kind of cybersecurity your business actually needs? 

Looking to learn more about whether MDR is right for your company? Feel free to reach out to Calvin Engen, F12.net’s CTO, at cengen@f12.net.

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Oct 17, 2022

Adopting a ‘Security-by-Design’ Strategy for Small and Medium-Size Organizations

This week’s featured blog post was provided by RHEA.

Canadian small and medium-size enterprises are facing ever-increasing cyberattacks. Yet, many are still struggling to develop a plan to strengthen their cybersecurity posture. Protecting laptops and networks are no longer sufficient measures. A “Security-By-Design” strategy is required. Thankfully, business owners can look at approaches adopted in major critical infrastructure areas and adapt a strategy that fits their organizations’ profiles and level of risks.

Every year, the World Economic Forum issues its Global Risks Report. The threat of cyberattacks has been appearing year after year in the Report’s top ten 10 major risks to watch for. This should not come as a surprise, given that a targeted cyberattack could remove access to power supplies, communication systems and other critical infrastructure on which we all, ultimately, depend in our day-to-day lives.

For smaller businesses, however, business growth is often the major, if not only, imperative focus. As a result, the threat of a cyberattack can seem far removed. Installing a firewall or anti-virus is often seen as taking sufficient security measures. Unfortunately, this is no longer the case. But where does a small-medium organization begin if it wants to strengthen its security posture? The answer may be to look at large critical infrastructure organizations and adapt their models. 

More and more critical infrastructure operators are adopting a “Security-By-Design” approach, recognizing that it makes most sense to design security into products, systemsand services from the outset, instead of trying to retrofit them later. As an example, defence agencies are increasingly adopting this approach when designing new crafts. In a European project to create a tactical remotely piloted aircraft system (RPAS) – a type of drone – RHEA Group was included in the consortium from the beginning with the express aim of ensuring that the aircraft would be cyber-resilient[i]. This was done by employing a methodology called concurrent design, which enables all components of a complex system to be considered together and balanced against each other during the design process, including security requirements.

There is a sound financial case for adopting this “Security-By-Design” approach, even if your organization is much smaller and never going to be classified as critical infrastructure. A National Institute of Standards and Technology study showed that relative to the cost of getting things right at the initial stages of planning requirements and architecture, it costs around 10 times more to fix ‘flaws’ at the integration and component testing stage, 15 times higher during system/acceptance testing and as much as 30 times higher at the production or post-release stage. And this applies as much to incorporating security as fixing or retrofitting anything else. It may feel natural to consider security features later, after you have done all the design work, and possibly even prototyping, but this clearly shows that the best return on investment comes from taking an upfront approach.

A research report by the Ponemon Institute[ii] backs up this proactive approach, stating that “When attacks are prevented from entering and causing any damage, organizations can save resources, costs, damages, time and reputation.” Based on the average cost of a phishing attack, for example, Ponemon calculated that the savings by spending on prevention would be US$682,650. Whether it is your internal systems or another organization considering the security implications of buying your products or services, investing in security from day one is vital.

So, what does this mean in practice for small and medium-sized business owners planning to develop new systems or release new products on the market? It means that security should be an active part, not only of system development lifecycles but also of any products being developed. When developing a new aircraft for instance, “Security-By-Design” involves elements such as carrying out a risk impact review of initial designs AND after any design changes. it involves the clear definition of security controls and requirements. It includes a secured design environment, frequent testing and relevant training. For larger organizations a cyber-range offers an emulation of an organization’s own systems and can be used not only for training staff at all levels, but also for testing realistic cyberattack scenarios that fit a specific business environment.

What applies to aircraft development can also apply to other business areas, including organizations offering services. The main principle is the same, which is to bring security at the forefront of business development (systems, products, or services), and not as an afterthought, or worse, when a cyber-attack occurs. The most important consideration is to bring the right stakeholders together from the start. Investments beyond basic cybersecurity tools will also be important. If a business owner does not have any security expertise, investing in it – either by training staff or bringing in an external expert on a temporary basis – will pay dividends in the long run. Then, just as RHEA’s experts would do, ensure your security-related policies, procedures or processes are rigorous, complete, and fully traceable.


[i] RHEA Group; LOTUS: Next Generation Tactical Remotely Piloted Aircraft Systems

[ii] Ponemon Institute; The Economic Value of Prevention in the Cybersecurity Lifecycle

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Oct 11, 2022

A Front Row Look at the Celebration of Toronto Business Legends

On Thursday, October 6, we hosted the final installment of our 2022 Canadian Business Leader of the Year awards in Toronto. The event was in celebration of profound corporate leadership and our honouree’s dedication to their communities. We were proud to host such a fantastic night with Wes Hall and Edward Sonshine.

Wes Hall, Canadian Business Leader of the Year Honouree

Wes Hall rose from very humble beginnings in Jamacia and is now one of the most influential businesspeople in Canada. As the first black Dragon to enter CBC’s “Dragon’s Den”, he is levelling the playing field of Black entrepreneurs across Canada. He was joined on Thursday by his wife Christine.

Edward Sonshine, Canadian Business Leader Lifetime Achievement Honouree

Edward Sonshine is the Founder and Chairman of RioCan Real Estate Investment Trust, one of Canada’s largest REITs, and now one of its largest.  In 2011, he was invested into the Order of Ontario and in 2013, was named Canada’s Outstanding CEO of the Year. He accepted his award on Thursday in the company of his wife Fran.

“They share the Canadian Chamber’s values of excellence, innovation, collaboration and leadership and their long list of achievements inspires a sense of optimism and pride in the Canadian business community and its commitment to creating a brighter future for Canada.”

-Perrin Beatty, President and CEO, Canadian Chamber of Commerce

After a special performance from Dione Taylor, guests finished off the evening with dessert, coffee and tea.

With special thanks to the Ritz-Carlton and all our event sponsors.

Past Recipients

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Oct 07, 2022

September 2022 Labour Force Survey: The “cooling-off period” continues

At first glance, it looked like we finally received good news from Canada’s Labour Force Survey for September: after three months of declines, employment was up by 21,000 jobs, while the unemployment rate dropped back to 5.2% after unexpectedly spiking to 5.4% last month. Digging beneath the headlines, however, shows emerging signs of an underlying “cooling-off” period. First, hours worked are down over 1% since June. Second, labour force participation has sagged over the course of this year, and third, it’s the public-sector, not the private sector, that continues to push up employment. That said, Canada’s labour market remains historically tight. It’s remains difficult for businesses to fill the nearly one million vacant positions they’re seeking. And, though, wage growth exceeded 5% for the fourth month in a row, this still isn’t enough to boost workers’ purchasing power, as it’s below the highest rates of inflation seen in a generation.

Stephen Tapp, Chief Economist, Canadian Chamber of Commerce

KEY TAKEAWAYS

  • Canadian employment was up slightly, with 21K net new jobs added in September. This reverses a three-month consecutive trend of falling employment.
  • Still, total hours worked fell 0.6% and are off by an aggregate of 1.1% since June, although they remain up 2.4% year-over-year.
  • The unemployment rate fell to 5.2% (from 5.4%), however, this is mostly because fewer people are looking for work.
  • Public-sector employment (+35k) continues to lead the recovery, while private-sector jobs were only up by 9k; self-employment continued its weak performance throughout the pandemic (-22k).
  • Job gains in education (46k) and health care (24k) were offset by losses in manufacturing (-28k); information, culture, and recreation (-22k); transportation and warehousing (-18k) and public administration (-12k).
  • Even acknowledging the recent cooling off, Canada’s labour market remains tight. With employers looking to fill nearly a million job vacancies, and inflation near generational highs, wage growth was above 5% year-over-year for the fourth straight month. Wage growth is strongest in professional services (+9.1% yr/yr) and accommodation and food services (+8.7%), industries where labour demand is currently very high.
  • Canada’s aging population is proving to be a major challenge for labour supply. Retirements show no signs of slowing. Of the 5.2 million Canadians aged 55-64, almost 1 million are retired.
  • Provincial employment increased in British Columbia, Manitoba, Nova Scotia and New Brunswick, but was down in Ontario and PEI. Moves in other provinces didn’t exceed the survey margin of error.
  • In September, more than one quarter of workers were either fully remote (16%) or hybrid (9%).

SUMMARY TABLES

For more economic analysis and insights, visit our Business Data Lab.

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Oct 04, 2022

How Your Organization Can Quantify and Reduce Your Cyber Risk

This featured blog was provided by eSentire.

Given how cyberattacks have evolved in the past few years, no organization has the luxury of forgoing cyber risk management. As a cybersecurity leader, you must understand the likelihood of a security incident occurring and how it will impact your organization. This knowledge can also dictate your overall risk tolerance and risk appetite so you can strengthen your security posture.

We recommend leveraging the MITRE ATT&CK® framework, which provides you with an operational and tactical roadmap to make decisions about where to apply your cybersecurity capabilities. In doing so, you can start to enhance their cybersecurity programs to reduce your overall cyber risk.

However, it’s not entirely feasible to build business responses for each tactics, techniques and procedures (TTP) found in the MITRE ATT&CK® framework. Based on the severity of the observed technique, your team should build a proactive response designed to counter the cyber threat and reduce your business risk. This is a crucial first step in developing a risk-based approach to cybersecurity.

The end goal is to look inward to identify the set of gaps and critical vulnerabilities that are most impactful for your specific business and mitigate them first. Ask yourself:

  • Does my executive team accept that cyber risk is an enterprise risk?
  • What are my business’ “sources of value” and do I understand the specific risks that can impact those sources of value?
  • Do I know the specific TTPs that threat actors can use to target my business?
  • How am I planning to address the vulnerabilities that were discovered?
  • Have I identified all potential vulnerabilities that can impact my organization today?

On a day-to-day basis, it’s likely that your in-house cybersecurity team is often focused on supporting the business and projects that drive revenue. It’s also likely that they don’t have the cybersecurity expertise or staffing coverage it takes to monitor cybersecurity threats 24/7. Therefore, we recommend adopting a cyber risk-based approach that includes:

  • Adopting a comprehensive vulnerability management program that enables continuous awareness of the threat landscape, proactive vulnerability scanning to understand which systems are inadvertently exposed, and disciplined patch management.
  • Deploying a robust security solution capable of stopping both known and unknown cyberattacks, even those that leverage existing trusted applications for malicious purposes. Your security provider should invest heavily in developing original threat intelligence and research that continually enhances endpoint policy and protection.
  • Understanding the adversary’s TTPs as well as activities that constitute “normal behavior” for your internal applications to help differentiate whether or not a process is performing a legitimate, suspicious or malicious action. This information helps you understand the TTPs impacting your environment as we collaborate to harden your defenses.
  • Ensuring you have complete visibility into your endpoint devices and all events to create contextual awareness regarding what’s happening on assets across your environment.
  • Engaging an MDR service provider that provides complete visibility and coverage of your attack surface with multi-signal MDR, powered by a strong XDR platform foundation and human expertise, to identify, contain, and respond to threats that bypass traditional security controls.

If you’re not certain how well-equipped your organization is to identify, detect, protect, and respond to cyber threats, we recommend completing the eSentire Cybersecurity Maturity Assessment for a temperature check on critical areas of your cybersecurity program.

Understanding your organization’s cybersecurity maturity, knowing the gaps, and addressing those issues is critical. After all, taking proactive steps to mitigate cybersecurity risk can mean the difference between a data breach or business as usual.

Cybersecurity is everyone’s business—including C-level executives, managers, administrative assistants, and even part-time office staff. Unfortunately, you can put all the right traditional cybersecurity measures in place, but all it takes is one employee clicking on a phishing email.

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Oct 04, 2022

Employee Education is a Critical Defence Against Cyber Attacks

This featured blog was provided by the Insurance Bureau of Canada.

New research shows small and mid-sized businesses need to start with their staff to improve their cyber risk

As many companies continue to operate remotely and put greater reliance on the internet, cyber criminals are looking to take advantage of this to attack more vulnerable systems, such as mobile devices or less secure networks.

Small and medium-sized organizations are often more susceptible to cyber attacks, as they typically have fewer resources to devote to cyber security, have fewer controls in place and, often, offer their employees less training on cyber hygiene. Larger organizations are also at risk: while they are often less susceptible to cyber attacks, thanks largely to more sophisticated controls and general awareness of the cyber threats they face, they are more likely to be the target of cyber criminals because of the large amount of data they hold or the bigger impact of a successful attack. While cyber insurance may help an organization recover losses from a cyber attack, it should be thought of as just one component within a complete cyber risk mitigation strategy aimed at reducing an organization’s vulnerability to online threats.

According to new research by Insurance Bureau of Canada (IBC), some organizations may be overlooking one relatively affordable cyber defence mechanism: staff training.

A survey of 1,525 Canadians that work at small and medium-sized businesses (defined as businesses with fewer than 500 employees) revealed a number of startling findings:

  • Two-in-five employees surveyed (42%) say they have seen an increase in cyber scam attempts over the last year.
  • Only a third of surveyed employees (34%) report that their company provides mandatory cyber security awareness training.
  • Only half (50%) of employees surveyed report that their organization has introduced multi-factor authentication, a critical cyber security defence mechanism that requires a user to provide two or more verification factors to access a corporate network or application.
  • Only a quarter of employees surveyed (24%) report that their employer conducts phishing email simulations to help promote cyber vigilance.

Employees’ actions increase their company’s cyber security risk

IBC’s survey also revealed that 7 in 10 employees of small and medium-sized businesses (72%) reported at least one behaviour that could allow a cyber criminal to gain access to their company’s computer systems. This further demonstrates the urgency for more employers to educate their employees on how to reduce cyber threats.

According to survey respondents:

  • 27% use one password to access multiple websites they use for work
  • 23% access public Wi-Fi while using their work computer
  • 19% download software/apps on their work devices that were not provided by their employer
  • 7% allow family members or friends to use their work computer
  • 5% share their work login or password by email or text.


Hybrid/remote employees are even more likely (77% of respondents) to take actions that may compromise their employer’s cyber security or data.

Attitudes toward cyber security raise concerns

Employees may also underestimate the role they play in their organization’s cyber defences, with 30% of respondents saying they don’t believe cyber criminals would target them at work, and 28% of respondents saying their employer is solely responsible for protecting their workplace from cyber threats.

The survey also found that 21% of respondents believe that most cyber breaches are minor and easy to resolve, while the reality is that they can have a devastating financial impact. In 2021, the average total cost of a data breach to Canadian organizations was an estimated $7.3 million.[1]

As cyber criminals get savvier, business owners and staff have a collective responsibility to stay one step ahead. That’s why IBC has launched cybersavvycanada.ca, a new cyber education initiative to help Canadians better understand the threat of cyber attacks and what they can do to reduce their risk.

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Sep 26, 2022

Production-Cost Increases Outpacing Consumer Inflation, Survey Says

This blog was provided by Michael Graydon, CEO at Food, Health & Consumer Products of Canada, proud members of the Canadian Chamber’s Food Supply Council .

New polling of Canada’s leading food, health, and consumer product manufacturers shows that skyrocketing production costs far outpace consumer price inflation and are weakening Canada’s essential domestic manufacturing and supply chains.

Food, Health & Consumer Products of Canada (FHCP) surveyed its members in July and found the cost of inputs has shot up 23% since 2021 and a remarkable 35% since 2020. FHCP members expect these cost increases to continue apace throughout 2022. In comparison, experts like Dr. Sylvain Charlebois of Dalhousie University have assessed that consumer food price inflation shows signs of improvement and may not hit the previously predicted peak of 10% this year.

As University of Guelph Arrell Chair in the Business of Food Simon Somogyi commented earlier this year, “The cost of everything across the food supply chain is getting so expensive and that’s the same for farms, wholesalers, packers and processors right up to retailers.”

Production cost increases and consumer price inflation are a global phenomenon. From ingredients like wheat, produce, even coffee to glass and cardboard packaging to shipping containers — supply is down, costs are up, and demand is through the roof. Some of these shortages stem directly from the pandemic, while others can be traced back to a perfect storm of other factors like drought, fires, freezes, and backed up ocean shipping channels.

Droughts hit Canada’s barley, wheat, and canola crops, impacting production of everything from bakery items to beef now. Frost in Brazil has cut into global coffee supplies. Wildfires in from British Columbia to California slowed fruit and vegetable harvests. The list goes on and on.

As a result of these factors and more, 65% of FHCP survey respondents said company performance was worse in 2021 than in 2020, and 70% expect to miss their 2022 company performance targets. Canadian manufacturers are doing worse than their international peers — 72% of companies responding to FHCP’s survey said their Canadian businesses are worse off than U.S. counterparts.

The rising cost of making goods Canadians rely on every day has only compounded challenges in Canada’s already inhospitable business environment. Even before the pandemic, just 25% of Canada’s leading food and consumer goods manufacturers said they were looking to expand production in Canada. Nearly 50% said they were considering expanding operations elsewhere.

The good news is that, according to national consumer polling conducted on behalf of FHCP in late 2021, 82% of Canadians have a greater understanding than before the pandemic of the factors that can impact supplies of food and other essential groceries and 93% want government to prioritize these supplies.

As we head into another COVID autumn, supply chains are still far from normal, but manufacturers continue to work at breakneck pace to do our part to secure steady, resilient supplies of the essential food, health, and consumer products Canadians rely on every day.

Please note: This opinion editorial was published in the July 24, 2022 edition of the Toronto Sun.

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Sep 22, 2022

Pulse Check: Inflation tops list of business concerns in Q3 2022

Welcome to our Pulse Check blog series! A quarterly look at the top challenges and opportunities facing Canadian businesses from coast to coast to coast based on our Business Data Lab’s (BDL) analysis of the quarterly Canadian Survey on Business Conditions (CSBC).

Inflation is top of everyone’s mind these days and Canadian businesses are no different. Amid the highest inflation in 40 years, a whopping 60% of firms expect inflation to be the biggest near-term obstacle. And while rising costs are nothing new when it comes to the list of Canadian businesses’ biggest challenges, this is the highest level of concern in the CSBC’s history!

Thankfully, there are tentative signs of improvement on this front. Get all the details along with the top 10 things we learned about Canadian businesses from Statistics Canada’s Q3 CSBC below:

  • Growth outlook: With economic growth expected to slow in the second half of the year, Canadian businesses expect slower growth in sales, employment and investment, as well as shrinking profit margins next quarter. Looking further ahead, most businesses remain optimistic and expect modest, positive growth over the next three years.
  • Key business obstacles: Canadian businesses continue to struggle with rising costs in a high-inflation environment, hiring workers in a very tight labour market and lingering supply chain challenges.
  • Inflation: Canadian businesses identified inflation as their biggest near-term obstacle: 60% of firms expect this will be a challenge, representing the highest level of concern in the survey’s history. One glimmer of hope is that a shrinking share of businesses expect to raise prices over the next quarter, consistent with inflation decelerating in the second half of the year.
  • Rising costs: Rising input costs are the second biggest near-term obstacle, cited by almost half (47%) of firms, down only slightly from the last survey (50%). Cost pressures are highest in agriculture, manufacturing and accommodation and food services.
  • Labour challenges: Labour challenges intensified, with 36% of businesses expecting labour difficulties next quarter. These concerns are most acute in accommodation and food services, construction, health care and retail.
  • Debt constraints: Businesses’ ability to take on debt remains constrained. More than half of businesses (52%) reported they either cannot take on more debt or do not know if they can, unchanged from the previous quarter, and still a bigger worry for small firms and high-contact services.
  • Supply chains: Supply chains issues have improved, consistent with recent global trade developments. However, most Canadian businesses experiencing supply chain problems expect them to persist well into 2023.
  • Interprovincial trade: More than half of all Canadian businesses conducting interprovincial trade experienced obstacles over the last year, such as differing certification and licensing requirements for goods, services and labour as well as taxes.
  • Environmental practices: Most businesses have or plan to implement environmental practices over the next year, with reducing waste being the most prevalent. Customers’ unwillingness to pay higher prices is the top perceived barrier to businesses’ green efforts.
  • COVID-19 measures: In the long term, over half of businesses plan to maintain health and safety policies and practices adopted due to the pandemic.

The Q3 CSBC 2022 was collected from July 4 to August 8, 2022 and is based on responses from 17,013  Canadian businesses across the country.

Check out our full analysis here.

See Q2 analysis here.

What exactly is the Canadian Survey on Business Conditions (CSBC)?

Early in the pandemic, Statistics Canada created the CSBC in partnership with the Canadian Chamber, to quickly develop an innovative survey to learn about the issues facing Canadian businesses across the country, providing critical insights for decision makers and businesses. This successful collaboration has continued through our BDL.

Business Data Lab (BDL)

Our Business Data Lab (BDL) provides future-focused, real-time data and insights for companies of all sizes, sectors and regions of the country. The BDL brings together data from a variety of sources to track evolving market conditions, providing Canadian businesses with critical information to help them make better decisions and improve their performance.

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Sep 20, 2022

August 2022 Consumer Price Index data: Finally some good news on Canadian inflation.

Canada’s headline inflation fell for the second straight month — this time by more than markets expected — but more importantly, core inflation and services measures finally started to slow. Today’s positive inflation developments, alongside slowing growth, weakening labour market data over the past three months, and rapidly tightening financial conditions, could tip the scale for the Bank of Canada to deliver a more restrained 25-basis point rate hike in October, which would still move their policy rate up to 3.50%.

Stephen Tapp, Chief Economist, Canadian Chamber of Commerce

Key Takeaways

  • Canada’s headline Consumer Price Index (CPI) inflation slowed for the second straight month — to 7.0% year-over-year, down from its peak of over 8% in July. The slowdown in headline inflation exceeded market expectations (7.3%).
  • The Bank of Canada’s “core inflation” measures declined by an average of 0.2 percentage points to 5.2%, as all three measures improved. This is great news for the central bank, providing the first tangible sign that underlying price pressures may have finally turned the corner, after six months of aggressively tightening interest rates.
  • In August, energy price growth slowed (to 19% from 28%). Gasoline prices have been a key driver of headline inflation and a major issue for consumers. They peaked in mid-June at $2.14 per litre, and have since dropped back to $1.57, as global oil production has increased, and domestic refiners’ margins have fallen from elevated levels. Consumers will notice such an improvement (from 55% year-over-year price gains in June, down to 14% thus far in September), could push down the headline inflation figure again next month.

  • Prices gains are also starting to slow for transportation (+10%, with car prices up 7%) and shelter costs (6.6%, reflecting the cooling of Canada’s over-heated housing markets, as interest rates rise to rein in inflation).

  • Food prices are the only major category that kept rising (up 10%). As grocery shoppers can attest, prices are up painfully across the board — 11% year-over-year, the fastest pace since 1981!

  • Price increases for goods continue to slow (to 8.5% from 9.6%), which is expected, but the more significant move is the slowdown in services inflation (to 5.5%, from 5.7%).

  • The inflation rate fell in all 10 provinces. It is highest in Prince Edward Island (8.3%) and lowest in Alberta (6.0%).

  • In the months ahead, momentum in inflation should decelerate further due to slower global growth, a deflating domestic housing market, and positive “base effects” (i.e., comparing 2022 inflation readings with price levels that had rebounded in Spring 2021.)

  • That said, there’s still a long way to go before inflation returns to pre-pandemic levels of 2%. The Bank of Canada’s July Monetary Policy Report forecast CPI inflation of 7.2% in 2022, 4.6% in 2023, and 2.3% in 2024.

  • With this positive development for inflation, alongside weakening labour market data over the past three months, slowing growth, and rapidly tightening financial conditions, today’s data could tip the scale for the Bank of Canada to deliver a more restrained 25-basis point rate hike in October, which would take their policy rate up to 3.50%.

Summary Tables

Inflation Charts

For more economic analysis and insights, visit our Business Data Lab.

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Sep 20, 2022

How the Chambers Shipping Program Can Improve Your Customer Experience, from Freightcom

The eCommerce and physical retail market is fiercer now than it has ever been.

With the high adoption of online shopping, even the most innovative businesses have difficulty finding their customer base among the thousands of eCommerce merchants that saturate the modern consumer landscape.

There are many ways that the modern eCommerce professional and physical retailer can set their brand apart. Having access to a high-level shipping management solution like Freightcom and our eCommerce application ClickShip, can give your business the advantage necessary to edge out the competition.

At Freightcom we are focused on our commitment to helping Canadian businesses thrive.

It’s why we proudly partner with the Canadian Chamber of Commerce to provide industry-leading shipping solutions to Chamber members, as part of the Chambers Shipping Program.

Let’s take a look at a few of the ways Freightcom & ClickShip can help your eCommerce storefront stand above the rest.

Access to Leading Carriers, for Less!
The secret to what makes Freightcom work is simple: we partner with the best in the industry.

In the same way that we take great pride and care in our partnerships with organizations such as the Chamber, we also foster strong relationships with shipping carriers to deliver the best service and price possible.

Since 2010, we have partnered with many of North America’s most trusted freight and parcel shipping companies to offer businesses of all sizes industry-leading shipping rates on a wide range of shipping services.

Best of all, Chamber members can save even more on these services, thanks to your participation in the Chambers Shipping Program.

eCommerce Integrations for Seamless Fulfillment
It’s practically expected these days that businesses have not just an eCommerce presence, but a multi-channel sales strategy.

This can often lead to hassles in managing each of these channels effectively, especially when it comes to your shipping.

Thanks to Freightcom, and our sister company ClickShip, this need not be a concern.

ClickShip is an online application that integrates seamlessly with many of the largest eCommerce platforms and online marketplaces, including Shopify, WooCommerce, Magento2, Amazon, eBay, Etsy, Squarespace, Walmart, Lightspeed, Wix, and more.

Harnessing the power of Freightcom shipping rates, ClickShip improves the efficiency of the shipping process through automation and helps eCommerce businesses save time and money.

It works by consolidating and syncing all your order details and shipping information on our easy-to-use platform and gives you the ability to provide real-time shipping rates to your customers directly at checkout.

Convert More Customers with Real-Time Rates
Cart abandonment is one of the greatest pain points faced by modern eCommerce store owners.

While multiple factors can play into why customers abandon their carts, studies have found that up to 48% will do so because of sudden, unexpected shipping costs.

One of the best ways to remedy this is by providing lower, more accurate shipping rates to your customers.

With ClickShip, you’re able to display shipping quotes from multiple carriers in real-time, giving your customers the freedom to choose the available shipping rates, and level of service that best fits their needs.

Experience the Freightcom Advantage
Modern businesses need every tool at their disposal to succeed in this hypercompetitive market.

For many businesses, it can feel like shipping is out of their control, but with Freightcom & ClickShip, shipping can be another tool to help set your business apart from the rest.

Chamber members can save even more on shipping when they sign up through the Chambers Shipping Program by visiting freightcom.com/chamber to create a free account.

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