Canadian Exporters Missing the Low-hanging Fruit, Must Tap into Value Chain: HSBC

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By David Kennedy, Canadian Manufacturing Sep 15, 2015

Exporters need to fight harder for U.S., world market share over next decade

With a wealth of resources at their disposal, deep talent rosters and unfettered access to the world’s largest market, the cards have always seemed to fall into place for Canadian exporters. At the high water mark in the 1990s, Canadian exports accounted for four per cent of the global export market. All signs pointed to further gains, and the country seemed poised to become an export superpower.

Yet, despite the stacked deck, complacency seems to have set-in. Canada’s share of shipments began to erode and export growth sputtered as other nations swooped in. And now, 20 years later, businesses are left wondering what went wrong. Canadian shipments now account for just 2.5 per of global exports, while the country’s share of the all-important U.S. market has fallen to 14 per cent from 20 per cent a decade ago.

Though a few bright spots remain, HSBC Bank Canada says Canadian exporters must stop harbouring expectations the U.S. market will miraculously recover its taste for Canadian goods and begin creating new opportunities. Indeed, the bank says the time has come for Canadians to focus on growth industries both in the U.S. and worldwide.

“We don’t flip a switch and become an export powerhouse once again,” Canadian chief economist at HSBC Bank Canada, David Watt, said. “We need to work, probably harder than we’ve ever worked before, in order to gain market share in the U.S. and… in export markets across the world.”

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