Archive for December, 2009

December 17th, 2009

A great example of economic development collaboration in Laval

One of the most important roles of an economic development agency is to further the emergence of investment projects on its territory. And sometimes, it takes the combined efforts of several partners to help a company see its project through to completion. Such was the case with CDVI Americas, a Laval SME that has been obtaining assistance since 2008 from a number of local organizations, including the International Business Centre, the CLD de Laval, the MDEIE, Investissement Québec, Canada Economic Development, and the NRC, through the IRAP program.

This subsidiary of the French company CDVI Group, a global leader in the access control and locking systems industry, is responsible for marketing, support and product development for North and South America. CDVI sales have been growing in Latin America and the company received a highly prestigious award in Brazil this fall, which we wrote about shortly after.

CDVI Americas handles all the product development for the Americas and the specific needs of these markets. Thanks to the funding obtained from its partners, the company was able to invest over $1 million in foreign market development and in a major R&D project. These investments are expected to create six jobs in Laval over the next few years, several in engineering. CDVI chief executive René Mallandain just recently told us, after our successful Brazil trade mission, that it would have greatly helped his company had he known about the services of the International Business Centre, the CLD de Laval and the other partners when it first opened its doors back in 2004.

As you can see, great things can happen when everyone works together and I therefore encourage all SME owners to build themselves a solid partner network.

Bruno Séguin

December 17th, 2009

Costa-Rica and Panama, 2 markets 2 hours apart and 488 million consumers

On November 12, we hosted Román Salazar, president of Edificar, one of Costa Rica’s three largest construction firms, and Martin Lampron of Xpand Group, both of whom spoke about business opportunities in Costa Rica and Panama. According to Mr. Lampron, these two countries are an excellent gateway into Latin America as a number of major players already do business there.

I spent some time living in Panama and therefore know this country well. During my stay, I remember noticing many business opportunities for Quebec SMEs. As I mentioned in my last blog, Panama is booming, thanks in large part to the construction of the Canal and scores of hotel complexes. However, I was surprised to find out from our two guests just how different the construction market is in each country. I had always been under the impression that they were similar. I’d like to share what I learned with you.

First, in Costa Rica, the construction sector is divided into three spheres: owners (developers, buyers and operators), consultants (small independents and specialized firms) and builders (general contractors, subcontractors, and industrial distributors and manufacturers). Players like Edificar (general contractor) account for about 30% of the market and are the best bet for Quebec SMEs because they oversee large projects. In Panama, the industry is much more centralized; labour plays a big role, and the government is heavily involved.

Second, Costa Rica looks for standardized energy-efficient products while Panama is interested in innovative design and systems for high-rise construction. Both, however, are looking for modular systems and value-added products that make installation easier. If your products meet these criteria, you should consider exploring these two markets.

Although different, both the Panama and Costa Rica markets offer good opportunities for Laval SMEs. As a result of one-on-one meetings with Mr. Salazar, 13 SMEs were able to confirm their business potential in these countries. This is why I think other companies could benefit as well. If you’d like to find out whether your products are suitable for these markets, feel free to give me a call.

Caroline Bouchard

December 15th, 2009

Our next Mexico trade mission

As you know, we’re organizing a trade mission to Mexico in April 2010. You may be wondering why we chose this country.

There are several reasons why we’ve decided to go back for the second time.

First, because when we were first there in 2008, I noticed that the Mexicans source mainly to the U.S. but that they do so reluctantly. That’s because U.S. manufacturers have a hard time adapting their products and services to the Mexican market. In the meetings I attended, it was clear that the Mexicans would like to find other business partners. This bodes well for Laval firms.

Second, according to National Bank and EDC, the Mexican economy is expected to grow next year – 1.6% according to NB and 3% according to EDC.

Third, we’ve found an excellent business partner for our Mexico missions. The outcome of the first trip was so positive that we will be working with him next time round as well.

Lastly, a number of you have told us that you’d like to develop this market, and you are absolutely right. Countless opportunities await you just a short flight away.

Véronique Proulx