Canadian distributors’ top business challenges persist in 2026.

New data from ASI Research indicates that “remaining profitable under pressure to cut prices” and “increasing the size of our customer base” are once again the top two concerns for Canadian firms. Scott Hulbert, managing director of ideavation (asi/229801), says profitability is “a real stress and a pressure point.”

“Costs are rising fast on everything, including rent and utilities,” he explains. “But we can’t pass everything on, and that erodes my profitability. Customers are also price-sensitive, so they take a long time to make a decision and there’s a lot of scrutinizing.” Hulbert adds that much of ideavation’s program business involves locked, previously agreed-upon pricing for end-buyers, which puts even more downward pressure on profitability in the face of rising costs and trade uncertainty.

“There’s so much flux, with tariffs and reciprocal tariffs,” he said. “It makes it hard to effectively quote programs. When items arrive here from the U.S., we’re not always sure what we’re paying. Are they duty-free? Tariff-free? Both?”

Adding to the challenges – in a competitive job market, Hulbert is constantly weighing how to find and retain talent. Recently he gave raises across the board in a retention effort, because of the often exorbitant time, energy and money it takes to find new hires.

“I’m finding I’m having to throw more resources at it than I should because I want to keep them,” said Hulbert. “We’re always on pins and needles, especially because of the shifting loyalties of younger generations.”

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