Led by Perrin Beatty (left) and Phil Noble, the Canadian Chamber of Commerce and Grant Thornton LLP are working together to encourage private businesses to pursue export opportunities and other ways to expand and strengthen their enterprises.SUPPLIED
Two years ago, Ken Field would have needed just a few fingers to count the number of countries where his company's products were sold. Today, Toronto-based GreenField Specialty Alcohols Inc. – whose products range from fuel ethanol to industrial, pharmaceutical and beverage alcohols – exports to customers in 26 countries.
"It started with our pharmaceutical customers with operations around the globe, who wanted to bring their products into the U.S. or Japan and needed alcohol with the highest purity," explains Mr. Field, chairman and founder of GreenField, which last November was the winner of the inaugural Private Business Growth Award from Grant Thornton LLP and the Canadian Chamber of Commerce. "So we thought: what about the companies we don't know about in other countries such as India, Korea, Taiwan or Singapore? Maybe we should find out how we can sell to them as well."
GreenField is among the select group of Canadian private businesses seizing opportunities to sell in global markets. And with a growing world economy and increasingly easier access to international markets, there are plenty of global business opportunities today, observes Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, Canada's largest business association representing more than 200,000 companies.
But despite the abundance of opportunities and Canada's strength in many sectors – as well as the persistent drive of companies such as GreenField – Canada has been lagging behind its peers in the international trade arena. A Canadian Chamber of Commerce report released last month highlights the volume decline in Canada's merchandise exports, which in 2012 was five per cent lower than total export volume in 2000.
There are also 9,000 fewer Canadian companies selling abroad than in pre-recession times.
"Companies looking for growth need to look strategically at all areas of their business. There's a greater focus today on geographic expansion as a way to achieve strong growth and revenue."
Phil Noble is CEO and executive partner at Grant Thornton LLP in Canada
"Traditional trade barriers, such as tariffs, are part of the problem," says Mr. Beatty. "But information gaps and a lack of international business relationships are just as important."
This state of affairs seems to be changing for the better. Export Development Canada (EDC) predicts a six per cent increase each year for 2014 and 2015 in the total dollar value of Canadian exports. A weaker Canadian dollar, increased U.S. economic activity and Europe's complete emergence from recession will also boost export volumes by two per cent this year, and by six per cent in 2015.
According to EDC, the number of small enterprises exporting to emerging markets is growing by 8.5 per cent annually.
Phil Noble, CEO and executive partner at Grant Thornton LLP in Canada, says he's not surprised by the aggressive advance of Canada's private businesses into global markets.
"Companies looking for growth need to look strategically at all areas of their business. There's a greater focus today on geographic expansion as a way to achieve strong growth and revenue," he says.
GreenField is solid proof of how global expansion can drive growth. Mr. Field expects his company, which already enjoys annual revenues of about $800-million, to triple pharmaceutical alcohol exports over the next five years to 150 million litres from about 50 million litres today.
Mr. Noble says businesses that expand geographically also become stronger because their teams become more diverse and innovative and their revenue sources expand to include more customers and markets.
"Businesses often look at geographic expansion purely from a growth perspective," he says. "But whether you're pursuing other markets in Canada or in another country, you also need to think of geographic expansion in terms of diversification and risk management."
| AWARDS |
Celebrating private business excellence, growth What does it take to grow a privately held business beyond $5-million? Performance that goes beyond a focus on revenue generation. That is the view of the forces behind the 2014 Private Business Growth Award. Now in its second year, the award – presented by Grant Thornton LLP and the Canadian Chamber of Commerce – honours private Canadian businesses focused on creating growth beyond the top and bottom line. “If we are to truly strengthen the Canadian economy, companies must be encouraged to think beyond the next quarter’s results and approach growth from a strategic and a holistic perspective,” says Phil Noble, executive partner and chief executive officer at Grant Thornton LLP. Canadian Chamber of Commerce president and chief executive officer Perrin Beatty adds, “Growth isn’t always about being bigger. It’s about being better. “Last year, the award’s shortlist showcased a variety of private businesses in different stages of their life cycle. This year’s winner could just as easily be a small or a large business, but it will certainly be a business that highly values strategically planning for the future, and putting growth at the top of the agenda.” Award nominations will be accepted through www.privatebusinessgrowthaward.com until September 5, with complete submissions filed by September 12. The winner will be announced at a gala celebration at the Four Seasons Hotel Toronto on November 19, 2014. “We are excited to be going into the second year of the Private Business Growth Award, and once again celebrate the often unsung heroes of Canadian business and the backbone of the Canadian economy,” says Mr. Noble. |
This content was produced by The Globe and Mail's advertising department, in consultation with Grant Thornton. The Globe's editorial department was not involved in its creation.