Business opportunities abound abroad

Businesses can learn about the export market at Export Development Canada’s new hub in Kitchener

KITCHENER — For many Canadian businesses, the opportunities that exist in the global marketplace are strong.

But those ambitions can be tempered by fear, in light of the risks that can accompany the export market.

“There’s no question there are risks in international markets,” said Stephen Callaghan, vicepresident of Export Development Canada’s (EDC) Ontario Region. “What we want to make sure is that they’re managed risks.”

EDC is a financial Crown corporation that helps Canadian businesses on the world stage, providing financing, insurance, knowledge and connections. And they’re aiming to make those services even more accessible with the opening Thursday of an Export Growth Hub at the Catalyst137 tech space in Kitchener.

“Historically, as a financial institution, we have been in the office towers, so this is a first of its kind for us,” Callaghan said. “We’re quite excited about it.”

Six EDC employees will work out of the location, where businesses can learn more about the export market and the services that EDC provides. It will also host workshops and special events. While it’s located at a facility primarily geared toward companies working in the Internet of Things space, the EDC hub is available to all area businesses.

And it’s a prime time for companies to look abroad, said EDC vice-president and chief economist Peter Hall. “Growth is strong, and we believe it’s not just strong but it is spreading.” Hall will discuss the export market Thursday at the opening event in Kitchener.

There’s no doubt there are headwinds, he said — global populism, protectionist stances, and rising prices. But Canadian exports will still likely rise more than eight per cent this year, Hall said, even beyond EDC’s “optimistic” six per cent forecast issued earlier this year.

“That’s really feeding off the strength of the Canadian economy.” Reaching a new United States-Mexico-Canada trade agreement has also removed many concerns.

As manufacturers abroad reach capacity, high-tech solutions can improve productivity and efficiency — and that could prove advantageous to Waterloo Region’s tech sector, Hall said. The U.S. and western Europe are key prospects.

Canadian firms may also stand to gain in the face of a tariff tiff between the U.S. and China, forging long-term business relationships that could endure even after those trade spats have been settled.

If trade growth continues at its current rate, China could conceivably become Canada’s top market for merchandise exports (not services) in about 25 years, Hall said. One of the leading opportunities in the Chinese market lies in the agrifoods sector.