The Canadian economy is booming as it surfs the energy and commodities wave. But the stronger the surge, the more powerful the backlash. We are already experiencing the impact of our strong dollar on many sectors. What can private companies do to make currency volatility an opportunity instead of a challenge, and address issues like low productivity, increased U.S. protectionism and a talent shortage? For some, the immediate solution to staying “on top of the wave” is to expand their horizons.

This second Deloitte survey of private companies in Canada examined their current global activities in exporting goods and services, as well as sourcing components outside of Canada.

Key findings of Deloitte's survey of private company leaders
Our research indicates that doing business outside North America is an underutilized strategy in Canada. Fewer Canadian private companies participate in international business than you might expect. Of the companies we interviewed, only 38% were involved in both exporting and importing activities.

Some of the top-line findings include:

• Exporting companies make up 46% of Canadian private companies. The vast majority, 96%, sell to the U.S., followed by 39% to Europe, 29% to Mexico, 26% to China and 10% to India.
• 68% of the companies are importing. Once again, the US is the major trading partner at 94%, followed by 41% from China, 40% from Europe, 19% from Mexico and 14% from India
• Companies doing the most exporting were not the largest. Only 44% of the companies with revenues over $50 million were exporting, but 52% of those with revenues between $20 million to $50 million and 48% of those with revenues between $10 million to $20 million
• 79% of current exporters and 52% of those importing felt that increasing exporting or importing would have a positive impact on their company’s business value.

It’s time to think outside the North American box. Huge opportunities exist to increase enterprise value with current exporters and convert some who have experienced barriers, real or imagined, to doing business globally.

Pierre Pettigrew, executive advisor at Deloitte, says “Canadian companies should be reminded that if they do not currently have plans to expand their horizons internationally, numerous foreign companies are at this very moment preparing to challenge them here at home. We must adopt an international strategy – if not an offensive one designed to expand our horizons abroad, at least a defensive one that will allow us to confront competition from abroad.”

 Download the complete report, Canadian private business: Expanding horizons.

About the survey
The telephone survey of 350 owners of private business across Canada was conducted by Angus Reid Strategies in June 2007. Survey participants were selected randomly from a population of private companies with more than 50 employees.