Fuel costs main driver of profit losses for small businesses in Atlantic Canada

More than half of the small businesses in the Maritimes, Canada, have considered permanently closing their doors this year, primarily due to rising fuel costs, according to a survey by a small business insurance company. Chief Operating Officer at Zensurance, Mariano Neiman, revealed that 75% of small businesses in the Maritimes find rising gas prices to negatively impact their operations, surpassing the national average of 58%.

For businesses like NovaXpress, a trucking and courier company, fuel is "non-negotiable," as operations manager Pieter de Man explained. De Man emphasized that a slight increase in fuel costs significantly affects their bottom line, making it necessary to pass the costs onto customers. NovaXpress now quotes prices separately for fuel, with charges ranging from $370 to $880 for a $1,000 request.

De Man noted that fuel costs have nearly doubled, despite bulk pricing, and businesses need to be transparent about these expenses. However, de Man pointed out that customers often overlook the hidden logistics costs that drive up product prices, with fuel being the primary factor. Despite the challenges, growing tourism in Nova Scotia could help alleviate some of the difficulties faced by local businesses.

Nova Scotia remains more affordable compared to other Canadian urban centers, with record-breaking tourism numbers this year. Director of Communications at Discover Halifax, Sarah Reeves, mentioned that tourists often plan their vacations well in advance, taking into account various costs, including travel and accommodation. De Man stated that while margins are "razor thin" currently, he plans to keep providing services to maintain the economy's momentum.