Having a sense of timing is what we can say about Anthony Vendrame, founding president of Poches
“I wanted to reduce our ecological footprint,” he says. When you source from China, you have to go there to inspect the factories and the quality, then the t-shirts travel by boat or plane, so it is very polluting. »
Then, the Montreal SME had to order 25,000 t-shirts at a time. “We were a small customer for them, so if we were not happy with something, we had no negotiating power,” explains the entrepreneur who founded his company in 2015. “We had to advance a lot of money with each order and it took a long time to sell out the stocks that had to be stored. Then, it was impossible to order the right number of t-shirts per size that we would end up selling. »
Anthony Vendrame was therefore very happy to find the t-shirt manufacturer Attraction, in Lac-Drolet, in Estrie. “Each t-shirt costs me more, but I can make small orders directly based on my needs and have them very quickly,” he explains. Also, communication is easier and I can go to Lac-Drolet easily if necessary, or request a sample and have it the same day. The work is much more cooperative. »
His 10-employee company was also able to move to reduce the size of its warehouse by more than half. Then transportation was greatly reduced and t-shirts are now made with 50% organic cotton and 50% recycled polyester. The entrepreneur is convinced that without this change, he would not have survived the pandemic.
“Ordering 25,000 t-shirts at once put immense pressure on our cash flow,” he explains. Then, the banks lend money when you present purchase orders, but only the stores give it. During COVID-19, they were not doing well. I just sold online to individuals. »
Now getting back on his feet, he can look forward and envision growth again.
If Pockets
In the eyes of Stéphane Drouin, vice-president, Quebec purchasing and economic development, at Investissement Québec, supply indeed remains a major risk currently.
The expert is also of the opinion that if logistics problems have calmed down, it is largely due to the drop in global demand.
“But we expect it to rise again in about two years and at that time, the logistical issues will return,” he believes.
He also emphasizes that there are many geopolitical risks to consider, such as the war in Ukraine which still has an impact on metals, and then the tensions between China and Taiwan.
“It is therefore time for Quebec SMEs to make changes in their supply chain,” he says. We help companies find suppliers here and if there are none, we try to interest local companies to start manufacturing the products they are looking for, or to attract foreign companies to come and make here. »
According to data collected in the Canadian Federation of Independent Business (CFIB) Business Barometer, the labor shortage remains one of the main obstacles to growth. “It still puts a lot of pressure on businesses, particularly in Quebec where payroll taxes are significantly higher than the Canadian average, while 8 out of 10 provinces have a lower tax rate and Quebec is the only one province which does not provide access to a reduced tax rate for small businesses in the construction sector,” says François Vincent, vice-president, Quebec, of the CFIB.
Another obstacle to growth is the poor match between the training offered and the reality of the job market. Moreover, in May 2023, 66% of SMEs surveyed by the CFIB in Quebec said they had difficulty finding candidates with basic skills that meet the needs of the business, while it was 63% in April 2021 “Several companies now receive resumes, but the candidates’ skills do not match their needs,” says François Vincent. There are investments to be made in training to tackle this issue. »
The increase in costs for Quebec SMEs, due to inflation, is also a brake on growth. A CFIB study reveals that as many as 73% of SMEs have increased their prices to compensate for the increase. “But among companies with fewer than five employees, only 65% have done so,” explains François Vincent. This reduces their profit margin, or leads them to go into debt, so ultimately, the consequence is that the increase in costs weakens them. »
Sustainable development requirements are another element that can slow down the growth of certain companies, notes Stéphane Drouin, vice-president, Quebec purchasing and economic development, at Investissement Québec. “More and more, major contractors, especially in Europe, are asking companies to reduce their greenhouse gas emissions, or to seek certifications, such as ISO 14,000 in the environment, illustrates- he. Quebec suppliers who operate on hydroelectricity may be favored, but more and more, we look at the entire supply chain, therefore the supplier’s supplier. »
