A new economic outlook from Deloitte and Desjardins confirms what many Canadian business leaders have begun to sense: Canada is entering a modest but impactful downturn. GDP is forecasted to shrink by 1.1% in Q2 2025 and 0.9% in Q3, with unemployment peaking at 7.5% before recovering. Investment is retreating sharply, especially in construction and machinery, and uncertainty around U.S. tariffs and shifting trade policy is clouding long-term planning.
Yet amid this turbulence lies a clear opportunity: a chance to build resilience, unlock productivity, and accelerate transformation.
What’s Driving the Downturn?
Tariff Uncertainty: Short-term boosts from front-loaded activity are fading. Many firms rushed orders before tariffs kicked in, but the longer-term impact is a sharp slowdown.
Investment Pullback: Business investment is expected to fall 11.5% in Q2, with machinery and equipment spending dropping 37%.
Labour Market Pressure: Job cuts are rising as companies tighten operations. Unemployment is expected to peak at 7.5%.
Shifting Trade Patterns: A possible loss of free-trade access to the U.S. could lower Canadian GDP by 3% by 2030, driving the need for market diversification.
Why Interim Leadership Is the Answer?
At xNorth, we see this moment as a strategic window, one that rewards agility, expertise, and action. In a climate where many companies are freezing permanent hires, reassessing investments, or pausing major initiatives, the pressure to adapt quickly has never been greater.
Yet the reality is: transformation can’t wait. Leadership gaps, stalled projects, and shifting priorities demand immediate and experienced execution.
That’s where interim executives step in. These are seasoned leaders who have faced similar challenges before, whether it’s stabilizing operations, managing change, launching a market pivot, or turning around underperforming units. They integrate rapidly, make decisions decisively, and deliver measurable results.
Unlike traditional consultants, interim leaders own the outcome, not just the advice. And unlike permanent hires, they bring flexibility, speed, and a laser focus on short- to mid-term impact.
How xNorth Helps Companies Navigate the Downturn?
Operational Optimization
During periods of volatility, strong operational control is critical. Our interim CFOs and COOs step in to stabilize margins, reinforce financial discipline, and realign cost structures without compromising day-to-day performance. Whether it's managing cash flow, renegotiating supplier terms, or reshaping internal reporting, they bring immediate clarity and action to protect the core business.
Transformation & Resilience Projects
With infrastructure investments and productivity at the center of government stimulus efforts, organizations need proven leaders to deliver results, not just plans. xNorth provides interim transformation leaders who have successfully driven similar initiatives before. They design and execute transformation roadmaps, align teams around key priorities, and ensure delivery stays on time, on budget, and on target.
Trade Diversification & Market Expansion
In a shifting global trade environment, businesses that rely too heavily on U.S. markets face growing risk. Our interim sales, marketing, and supply chain executives help companies identify and activate new growth paths. From go-to-market strategy development to supplier diversification and international expansion, they enable organizations to pivot with confidence and speed.
Bridging Leadership Gaps
Executive transitions don’t wait for the right timing, and leaving a key seat vacant can stall momentum. Whether triggered by a sudden departure, leave of absence, or upcoming strategic shift, xNorth quickly deploys interim leaders who provide stability, maintain governance, and keep initiatives moving forward. They integrate quickly, align with existing teams, and deliver continuity from day one.
The Future Belongs to the Bold
As Deloitte’s chief economist Dawn Desjardins stated, “If we can capitalize on this momentum, Canada’s economy may well find itself emerging from this shock stronger and more resilient.”
At xNorth, we believe that outcome is within reach, but only for companies that act decisively. This economic shift presents a real opportunity for Canadian businesses to rethink strategy, accelerate transformation, and emerge stronger. As our CEO Benoit Creneau puts it "This is a defining moment for Canadian companies. Those who stay focused, make bold decisions, and strengthen their teams with the right leadership will emerge stronger. Interim executives help organizations stay focused, act quickly, and keep moving, even when the path ahead isn’t clear".
With a trusted network of operational interim leaders across all functions and over 1,000 mandates delivered annually via the Valtus Alliance, we help companies turn uncertainty into competitive advantage.
Get in touch to learn how interim leadership can drive your next phase of growth or stabilization.
