By Dan Kelly, President at the Canadian Federation of Independent Business (CFIB)
As head of Canada’s largest small business association, representing 100,000 independently,
Canadian-owned and operated businesses from coast to coast, I’m loving the “Buy Canadian”
energy and initiatives popping up across the country in response to ridiculous U.S. tariffs. Nearly
four in five Canadians say supporting local Canadian businesses is more crucial now than it was
a year ago and 80% are likely to choose Canadian-made products over imported ones,
according to a recent survey from Interac.
While the sentiment is exactly right, it’s also leading to some confusion and unintended side
effects.
Some of the “Buy Canadian” lists making the rounds on social media suggest dropping U.S.
brands that are actually produced in Canada or owned by independent Canadian businesses.
Examples include independent bottlers of Coke and Pepsi or franchise restaurants like
independently-owned McDonald’s or Dairy Queen locations. They, too, provide local jobs,
support an incredible number of local initiatives and strengthen our local economies. Many
businesses operating under a U.S. banner, like franchise restaurants, are still Canadian owned
and should not be caught in the crossfire.
Other lists suggest looking for Canadian-made products when shopping at giant, US-owned
retailers like Costco or Walmart. Is buying a Canadian-made box of crackers at Walmart or
Costco better than buying an imported box of crackers at your locally owned independent store?
And it is also important to note that many small, independent, Canadian companies are sitting
on a ton of inventory imported from the U.S. I spoke to a B.C. retailer of outdoor furniture who
said that while he is promoting his made-in-Canada products, he worries about the unsold
inventory of U.S.-made goods, including in many categories where there aren’t many Canadian
alternatives. Much of this has been pre-paid and a movement to avoid U.S.-made goods
indiscriminately can actually harm Canadian-owned businesses instead of helping them.
So does this mean we should all give up on buying Canadian? Absolutely not. CFIB research
found that 66 cents of every dollar spent at a local small business or locally owned franchise
stays within the community. If you’re shopping at a multinational retailer, only 11 cents are
recirculated back into the local economy, and even less – eight cents – if you shop at online
giants like Amazon.
As a consumer, the best way to buy and support Canadian is to buy and support local. Focus
first on buying from Canadian-owned retailers and restaurants. This includes locally owned
franchisees. In those businesses, do seek out the goods that are made in Canada when
possible. But let’s not punish Canadian small businesses sitting on U.S. made inventory. Our
local businesses provide local jobs. They pay local taxes. Neighbourhood shops and
restaurants are critical parts of our communities and, more than ever, they need our support.
To buy Canadian or not to buy: that’s not even a question. The choice is clear. If you want to buy
Canadian – buy local.
P.S.: CFIB has created some terrific signage to promote buying local as a way of buying
Canadian. Resources can be found at: https://www.cfib-fcei.ca/celebrate-small-business/toolkits.
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