A smarter approach to construction

Hey there, time traveller!
This article was published 01/08/2025 (248 days ago), so information in it may no longer be current.

Each spring, as construction season ramps up in Winnipeg, the city’s streets are transformed by road work, detours, and heavy equipment.

While these projects are essential for maintaining and improving our infrastructure, they often have unintended consequences for small businesses like disrupting access, discouraging customers, and creating unexpected costs.

Local entrepreneurs understand and support the need for infrastructure renewal. But for many, the disruption caused by long or poorly co-ordinated construction projects can be more than just a short-term inconvenience, it can threaten the viability of their business.

One recent example is Vanxai’s Restaurant on St. Anne’s Road, where a 20-week road renewal project has reduced traffic to a single lane and eliminated all nearby parking. While the kitchen remains busy preparing takeout orders, the dining room sits empty as regulars, many of them older, struggle to access the restaurant. But as weeks drag on, the mounting impact on foot traffic and in-house dining is difficult to ignore.

Sadly, this isn’t an isolated case. Our recent Canadian Federation of Independent Business (CFIB) report, Hard hats and hard times: Public construction impacts on small businesses, found that 66 per cent of Manitoba small businesses have faced construction disruptions in the past five years, a 27 per cent jump since 2018.

Those who had been impacted reported an average of 508 days of disruption. On average, impacted businesses saw a 22 per cent drop in revenue during the worst phase of projects, and some spent tens of thousands of dollars on cleanups, repairs, or other workarounds after projects were completed.

A key frustration we’ve heard again and again is the lack of timely, clear communication. Nearly half of the impacted businesses said they received little or no notice before construction began. Most only learned about the disruptions through informal channels like social media, word of mouth, or posted signs.

This is an area where improvements are possible. The City of Winnipeg could adopt a more formalized, business-conscious approach to planning construction projects.

That means proactively reaching out to business owners well before work begins, with written notice, staging plans, and clear timelines.

Designating liaison officers on major projects would also go a long way toward improving communication and providing businesses with a direct contact person for updates and issue resolution.

In addition, exploring financial support, such as temporary tax relief or targeted grants, could help offset some of the losses and unanticipated costs small businesses face during long disruptions.

Other cities have already taken steps in this direction. Montreal and Quebec City offer direct financial compensation, while Calgary recently launched a pilot program that provides eligible businesses with up to $5,000 and assigns liaison officers to support them throughout the project.

Too often, businesses watch their storefronts torn up, only to see no crews on site for days, or even weeks at a time. The project appears to be stalled, yet the disruption and financial burden for businesses continues to grow.

There needs to be far more accountability in how construction projects are managed including clear timelines, better communication with affected businesses, and consequences for avoidable delays.

We recognize that the City of Winnipeg has been open to discussing these challenges.

CFIB recently met with city officials, and we’re encouraged by their willingness to listen and engage with the concerns of small businesses.

What we hope to see now is action. Steps that show businesses are being considered as part of the planning process and supported when projects affect their operations.

Small businesses are already navigating a tough economic climate marked by inflation, high interest rates, and trade uncertainty. Ensuring that construction work is not an added burden is not just the right thing to do, it’s essential for keeping our local economy strong.

With thoughtful planning, transparency, and a genuine commitment to supporting those most affected, Winnipeg can continue building better infrastructure without building barriers to small business success.

Tyler Slobogian is a senior policy analyst with the Canadian Federation of Independent Business (CFIB).