What Rural Businesses Are Saying About 2025—and What It Means for Huron County
As we close out the first quarter of 2025, new data from Statistics Canada paints a detailed picture of the challenges and opportunities facing rural and small-town businesses across the country. For those of us in Huron County, where small business drives the economy, these findings feel especially relevant—and a few local factors add important context.
Costs Are Up—And So Is Caution
Obstacles for rural and small town businesses over the next three months, fourth quarter of 2024 and first quarter of 2025
Across rural Canada, business owners are feeling the pinch. Over 43% of rural businesses say inflation is their top obstacle heading into spring. Rising labour costs, higher prices for raw materials, and expensive insurance are putting pressure on already tight margins.
More than two in five businesses expect their operating expenses to continue rising, and over a quarter anticipate lower profitability this quarter. While some businesses plan to raise the
ir prices to keep pace, the majority are choosing to hold prices steady—likely to stay competitive in an uncertain market.
Supply Chain Woes—and a Cross-Border Concern
Nearly one in five rural businesses report ongoing supply chain disruptions, especially in the form of delivery delays and rising input costs. Almost half of those say things are getting worse, not better.
While Statistics Canada doesn’t identify causes, it’s worth noting that Canada’s on-again, off-again trade tensions with the United States are adding fuel to the fire. The current tariff dispute is increasing costs for many cross-border goods and components, which could be driving some of the supply issues rural businesses are seeing.
Labour Shortages: A Familiar Story with a New Twist
Labour remains one of the most persistent concerns in rural Canada. In Huron County, where unemployment has been the lowest in Ontario for several quarters, employers have long struggled to find and keep workers. Now, there are signs that the landscape is beginning to shift.
A recent uptick in the local unemployment rate may indicate that more workers are entering the market—or that some are being displaced by economic uncertainty. Either way, nearly half of rural businesses say they plan to raise wages, and a third are investing in employee training. The goal: attract and retain talent in a competitive (and potentially shifting) labour market.
Tech Investments? Not So Fast.
Despite the challenges, many rural business owners aren’t turning to technology for help—at least not yet. Nearly two-thirds of rural businesses say they have no plans to invest in advanced technologies this year. Some cite cost concerns, while others simply don’t see how it fits their operations. But as competition grows and efficiency becomes even more critical, digital tools may prove to be a missed opportunity if left unexplored.
A Mixed Year for Revenues
The revenue picture in rural Canada is split down the middle: about one-third of businesses say revenues increased in 2024, while a similar number saw declines. In other words, there’s no single narrative. Some sectors—and some regions—are faring better than others.
What It All Means for Huron County
In Huron County, we know our businesses are resilient. But this data confirms what many local business owners are already experiencing: inflation is hitting hard, supply chains are unreliable, and finding workers remains a challenge. With the added complexity of trade uncertainty and signs of change in our local labour market, it’s more important than ever to stay informed—and connected.
At the Huron Chamber of Commerce, we’re here to support your business with advocacy, resources, and community connections.
Now, more than ever, a Chamber membership matters.
Let’s navigate this together.