Businesses much more likely to leverage deal with supply chain strategy
MISSISSAUGA, ON, May 5, 2014 /CNW/ - According to UPS Canada data
released today, there is a significant divide between what small,
medium and large businesses in Canada support in principle when it
comes to free trade and how or if they plan to capitalize on the
UPS's Canada-European Union Comprehensive Economic Trade Agreement
(CETA) survey, conducted by Leger, reports that more than 4 in 5
businesses in Canada see global trade as critical to driving private
sector competitiveness. Some 84 per cent believe that trade
diversification beyond North America is necessary. Yet, less than 25
per cent of businesses in Canada strongly support CETA, with another 44
per cent showing only lukewarm support.
"The ambivalence we're seeing among Canadian business may be a result of
the fact that the deal is still very new," said Cristina Falcone,
vice-president, public affairs, UPS Canada. "Still we're optimistic
that as businesses learn more about CETA and how it opens up new
opportunities for competitiveness, we'll see a stronger endorsement and
strategic engagement with prospective new European customers."
Other important findings from the UPS Canada CETA survey include:
Two thirds of businesses currently export globally and of these
companies, only one third export to the E.U.
Of those businesses that target Europe for export, 37 per cent expect
CETA to compel them to increase export volumes to E.U. markets
Only 17 per cent of respondents anticipate the deal to motivate them to
examine opportunities in Europe for the first time.
Businesses that have a supply chain strategy in place (62.7%) are much
more likely to believe that their organizations could leverage CETA to
their advantage than those that don't (43.7%)
Overall businesses were more likely to exceed their growth benchmarks
with a supply chain strategy in place (24.6%), rather than without
Nearly 6 in 10 organizations have a supply chain/shipping strategy
Part of the solution to the divide between support for the deal and
putting it into practice are the use of third-party partners for
exporting. One half of businesses in the survey currently use a
third-party company for exporting or would find it beneficial. Of those
who do, 84 per cent would recommend businesses of any size leverage the
services of a third-party supply chain specialist.
"It's encouraging to see that a supply chain strategy that has
international legs is fundamental to driving innovation and
productivity," adds Falcone. "As global logistics specialists, we
encourage businesses of all sizes - but especially small business - to
get to know this deal better. By integrating their products or services
into global value chains; companies of all sizes can benefit from this
opportunity. CETA represents an exceptional channel into a market that
boasts more than 500 million people who live and work in highly
developed and diversified economies."
Representing Canada's largest importers and exporters, Joy Nott,
president, I.E.Canada adds, "CETA is a new type of trade deal suitable
for companies operating in the realities of today's global markets. The
deal will reduce barriers to the movement of goods, but it will also
mean competitive advantages and an increase in employment opportunities
To learn more about capitalizing on CETA, businesses can:
This survey was completed on-line between March 17th and March 21st,
2014 using Leger's online panel, LegerWeb, with a sample of 807.
Individuals across Canada working for, or running, a business that
currently spends at least $5,000 annually on shipping were interviewed.
Only those at a manager level or above qualified. Awareness of the
Canadian-European Union Free Trade Agreement was not required to
qualify for this survey.
A probability sample of the same size would yield a margin of error of
+/- 3.5%, 19 times out of 20.
UPS (NYSE: UPS) is a global leader in logistics, offering a broad range
of solutions including the transportation of packages and freight; the
facilitation of international trade, and the deployment of advanced
technology to more efficiently manage the world of business.
Headquartered in Atlanta, Ga., UPS serves more than 220 countries and
territories worldwide. The company can be found on the web at ups.com® and its corporate blog can be found at blog.ups.com. To get UPS news direct, visit pressroom.ups.com/RSS.
SOURCE: UPS Canada Ltd.
For further information:
Katie Boland, APEX
416-934-2121 / firstname.lastname@example.org