Posts Tagged ‘exports’

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June 2nd, 2011

Follow-up on Let’s Talk Exports

For those who could not attend the presentation Let’s Talk Exports we held on May 31 in collaboration with EDC, and for those who simply want to view it again , here’s the video starring Peter Hall, EDC’s chief economist, which was presented at the event.

I retain two ideas. First, Mr. Hall explains why exports are now the central element of future growth in Canadian GDP, reviewing the GDP calculation formula in an accelerated session of economics 101. Then, Mr. Hall discusses the importance that emerging markets will have for Canadian exporters by 2025, a subject I already covered in a previous post on how enthusiasm about Exports is picking up.

I take the occasion to thank, on behalf of the LAVAL TECHNOPOLE International Business Centre’s team, Mr Hall, EDC and all the people who attended the Let’s Talk Exports conference. The success of the event, held for the first time in Laval, has been beyond our expectations and we hope to repeat the experience next year.

Bruno Séguin

November 18th, 2010

The green technology market in China

In this third and last blog on green markets around the world, I will talk about China, a gigantic market with pressing environmental needs. A study conducted by Sinologik for the ministère du Développement économique, de l’Innovation et de l’Exportation reveals alarming environmental statistics for the Middle Kingdom. For instance, on the first page of the study summary (available in French only), Sinologik says that:

China and the U.S. are responsible for more than half of the world’s GHG emissions;
80% of the world’s most polluted cities are in China;
75% of China’s manufacturing industry (China’s largest industrial sector) is powered by coal;
About 80% of the waste produced is dumped directly into lakes and rivers, greatly exacerbating a nation-wide shortage of fresh and drinking water;
China loses 2.3% of its GDP each year as a result of its polluted fresh and drinking water.

More specifically, the study focuses on the cities of Beijing and Tianjin and on the province of Liaoning, where the most urgent needs are in water, air and waste treatment. Local expertise is especially lacking in waste management, and opportunities abound for foreign firms specializing in waste water equipment, technology and expertise.

The most accessible sectors are generally those with the largest number of private industries (e.g. construction materials, household appliances, industrial machinery) and to a lesser extent those the government wants to develop (e.g. solar, wind and biomass energy, hydroelectricity, wastewater treatment) but where some protectionism still exists. Sectors considered strategic (e.g. electric power, rail and air transport) are much more closed to outsiders.

The study concludes by suggesting that Quebec firms target small cities in order to avoid the fierce foreign competition found in Beijing and other large cities. It also recommends working with a local partner as much as possible, considering setting up a local operation to be closer to the market and to cut costs, and adapting the offer to the market’s specific needs.

To learn more about opportunities in environment-related industrial sectors, visit the site of the Canadian Trade Commissioner Service, where you’ll find five studies on the subject, including one on Shanghai that complements the Beijing and Tianjin study conducted for the MDEIE.

Bruno Séguin

October 6th, 2010

The Laval CROs rely on international business for their growth

According to this article published in the French daily La Presse Affaires, contract research firms such as Laval’s LAB Research, Warnex and Algorithme Pharma, are increasingly looking abroad to support their growth. In this period of slowdown in the biotechnology sector in Quebec, contract research companies, which test new drugs, are seeing their turnover from Quebec biotechs decrease rapidly, while their international sales seem to be on the rise again.

This article highlights the importance and relevance of events such as the North American Bio Forum held in early September. This event, organized by the LAVAL TECHNOPOLE International Business Centre allowed the hosting of 17 U.S. biopharmaceutical in Laval for two days of conferences and networking. Following the success of this first edition, the 2011 edition of the event is already on the table.

Bruno Séguin

July 8th, 2010

EDC’S 2010 export forecast

Each spring, Export Development Canada (EDC) publishes its Global Export Forecast for the year ahead. EDC’s vice-president and chief economist, Peter G. Hall, then embarks on a nationwide tour, presenting the analysis at always well-attended luncheon conferences. This forecast has become a reference in Canadian international trade and a highly useful tool for those involved in international business development, helping them set priorities and plan their activities for the year.

The following are a few highlights that could be of interest to Laval SME leaders:

-         EDC predicts global growth of 3.7% in 2010, a huge improvement from the 1.1% recorded last year. Still, EDC refuses to call it a recovery given the many risks still threatening the world economy, for instance, the maturation of huge stimulus measures, instability on the financial and commodity markets, fear of inflation, and a potential new wave of protectionism.

-         Within NAFTA, Mexico is expected to post the strongest GDP growth, projected at 3.5% in 2010 and 4% in 2011. Globally, BRIC countries (Brazil, Russia, India China) will dominate, with China and India leading the way. Solid gains are also expected in Southeast Asia and Sub-Saharan Africa.

-         After a tough year in 2009, Canadian merchandise exports should rebound to the tune of 13% this year.  Québec exports are projected to increase 9% in 2010, placing it seventh among the Canadian provinces.

-         The EDC predicts a 22% jump in Canadian merchandise exports to Brazil, the sharpest growth among the principal trading countries. Last year, exports to Brazil represented a mere 0.4% all Canadian merchandise exports and had tumbled 41.4% from 2008. What this means is that Canadian companies would do well to establish stronger business ties with this now indispensable market.

-         U.S.-bound exports should also improve, picking up 14%. Given the relative importance of this market (75%) for Canadian exporters, this bit of news is encouraging.

-         As regards industries, exports will increase mostly in energy, commodities, and vehicles and auto parts. Aeronautics, the only sector where exports grew last year, and agrifood, will be the only two with negative growth in 2010.

After reading this analysis, I noticed that the activities we have planned for 2010 fit in well with these forecasts. In fact, we just recently returned from a very successful mission to Mexico and are in the process of organizing others for the fall, namely to China and Brazil. We will also be very proactive on the U.S. market, which is still the number one destination for most Laval exports. When you return from vacation, make sure to check out our fall program – it’s packed with activities!

You can read the Global Export Forecast on the EDC Web site.

Bruno Séguin

May 12th, 2010

Visit of a Moroccan Minister in Laval

On May 6, we had the honor to receive the visit of the Minister of Industry, Trade and New Technologies of Morocco, Mr. Ahmed Reda Chami. Mr. Chami, who was coming to the Montreal Area to visit a couple of large companies in Quebec took the opportunity to make a stop in Laval, in order to meet some local companies and economic development agencies. The event was organized by Flex Group, a Laval company that does a lot of business in Morocco, North Africa and West Africa. Mr. Gilles Vaillancourt, Mayor of Laval, was present to welcome the Minister.

The conference was very interesting and attracted nearly a hundred people, including some companies from Laval. However, Morocco remains a largely untapped market by Quebec firms, despite the country’s many efforts to open up trade, its proximity to Europe and major markets in Africa, and the natural connections with the important Quebec population of Moroccan origin. A colleague informed me at the end of the conference that, as in all of Quebec, there are only 160 companies doing business in Morocco.

As pointed out by different speakers, this conference marks the beginning of a possible intensification of business relations between Morocco and Quebec, and especially with Laval. It would be interesting for the International Business Centre to possibly further activities for local companies interested in Morocco.

However, before launching large-scale activities such as a trade mission or another, it is important to ensure that there is an interest in this market for a sufficient number of Laval companies. I therefore invite all Laval companies that are already doing business or are planning to do business in Morocco to contact us. We would be pleased to discuss your projects, and potentially put you in touch with key contacts in Morocco and eventually get you involved in more extensive projects such as business development on the market.

Bruno Séguin

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