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Business in Vancouver September 9-15, 2008; issue 985 Energy costs causing seismic office culture shifts, survey finds Workplace operations re-examined, prices set to rise, according to business leaders Andrew Petrozzi B.C. business leaders are addressing the continuing high cost of energy by altering workplace behaviours and are more likely to raise prices, according to the latest BIV-Ipsos Reid survey. The poll found that: •more than two-thirds of respondents (68%) said rising energy costs have had a somewhat/very significant impact on their businesses; •shipping and/or transportation costs (68%) and costs associated with employee commuting (62%) were the leading factors having a somewhat/very significant impact on B.C. companies. •other fallout from higher energy prices included increased production and/or manufacturing costs (37%); input/raw materials costs (37%); higher gasoline reimbursement (51%); and air travel costs (57%). “The expectations at the end of July when we did the survey was that things are going to get worse and that the impact is going to be felt even more,” said Kyle Braid, vice-president, public affairs, for Ipsos Reid. Almost three-quarters of respondents believe energy costs will increase in the next six months; 76% and 79% said costs would continue rising over the next 12 months and 24 months, respectively. According to Braid, cost increases will result in steps that business leaders take today becoming more prevalent tomorrow. “There’s not a lot that businesses can do for shipping and transportation. It’s really a necessary cost of doing business,” said Braid. “Those businesses that can, pass it along to the end customer. Some of them have done so and some of them are likely to do so in the near future.” Approximately 34% of respondents said they had raised prices for products and/or services as a result of rising energy costs. Another 27% were considering it. Only 32% said they had not raised prices and were not considering it. “[It] stands out as a bit of a warning to consumers that not all the price increases they might expect have all been taken yet,” said Braid. Rising energy costs are also changing employer attitudes and approaches to business. But Braid pointed out that many of the changes were occurring prior to the recent energy cost spike, in response to calls for greater environmental stewardship, and are now simply accelerating. “When you look at the efforts people describe for lowering energy consumption, they really haven’t been short-term knee jerk reactions,” he noted. More survey findings: •telecommuting is becoming more prevalent: 31% of companies now allow employees to work from home more often; another 17% are considering the option; •new business trip policies are being implemented by 23% of respondents; another 33% are considering making changes; •conference calls, video conferencing and Internet meetings are also becoming more popular: 41% of respondents now hold such meetings because of rising energy costs; another 20% are considering adopting the practice; •32% of respondents are encouraging employees to take alternative forms of transportation to and from work; another 16% are considering the idea; and •creating an energy efficient office was the most common response to rising energy prices: 54% of respondents are taking action to reduce consumption; another 25% are considering it. The dark cloud of rising energy costs has another silver lining: niche business opportunities. Braid said companies and consultants that set up home offices for telecommuters, and internal company networks that allow employees to work from home efficiently and securely could benefit. Consultants who advise companies how to reduce their energy consumption and those who set up video-conferencing systems and conference call networks will also find more work. “There will be a market for it.” • apetrozzi@biv.com |
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