Canada a world-class exporter of cosmetics, pet food, synthetic rubber,
inorganic chemicals and photonic devices
OTTAWA, May 28, 2014 /CNW/ - Canada's overall trade growth in recent
years has been less than stellar in sectors other than primary
products, but a new Conference Board of Canada report reveals some
hidden success stories and the factors behind them.
"The common perception is that Canada only does well at exporting
natural resources. Very few people think of Canada as being a global
player in the cosmetics industry or being competitive at manufacturing
and exporting high-tech equipment or chemicals," said Kristelle Audet, Economist, Canadian Industrial Outlook. "However, they are among some
of Canada's hidden export success stories - it comes down to creating
innovative products for niche markets."
Beyond primary products, Canada's export success in markets other than
United States rests on the shoulders of a small number of companies.
A key factor in achieving global success is the ability to develop and
sell innovative products for niche markets.
Canada is already a world-class exporter of cosmetics, pet food,
photonic devices, synthetic rubber and inorganic chemicals.
The report, Canada's Hidden Success Stories: Competing Globally, identifies five little-known products from the non-primary sector for
which Canada is globally competitive and assesses the factors behind
their success. To identify these products, five economic criteria were
applied to more than 1,000 different products that Canada exports. The
criteria set minimum thresholds for total value of exports, export
growth (for both Canadian and global trade), share of exports going to
the United States, and type of products. The success stories involved
the following products:
Cosmetics - Canada is the world's tenth largest exporter of cosmetic products,
accounting for three per cent of global cosmetics trade. Our
competiveness at exporting cosmetics rests on our proximity to the U.S.
and on Canadian companies' ability to establish themselves at an early
stage in fast-growth markets.
Pet food - Canadian exports account for 3.5 per cent of global pet food trade,
making us the world's ninth-largest exporter. As in cosmetics, our
competitiveness in pet food stems from our proximity to the U.S.
market, and manufacturers' success at exporting premium brands to
emerging markets. Another key factor behind Canadian pet food
manufacturers' competitiveness in foreign markets is the "Made in
Canada" advantage. Canada is globally recognized for producing
high-quality food products in clean facilities.
Photonic devices - Canada is the world's tenth largest exporter of photonic devices.
Photonic devices include products such as imaging and machine vision
systems, 3-D scanners, and light detection and ranging mapping and
imaging systems. Our global competitiveness in this industry flows from
a large concentration of interconnected organizations (industry
clusters) located in Central Canada, as well as an ability to bring
highly specialized and innovative products to market.
Inorganic chemicals - Canada is the world's largest exporter of sodium chlorate, a chemical
used as a bleaching agent in the pulp industry. It accounts for 98 per
cent of Canadian exports of inorganic chemicals and 75 per cent of
global trade for that product. Our global competitiveness at exporting
sodium chlorate rests on low electricity costs, ready access to fresh
water supplies, and on our proximity to some of the world's largest
pulp manufacturing plants, providing us with an undisputable edge in
the North American market.
Synthetic rubber - 80 per cent of Canadian exports of synthetic rubber consist of butyl
rubber, a key ingredient in making tires. Canada is the world's fifth
largest exporter of butyl rubber, accounting for almost 15 per cent of
global trade. Exports of butyl rubber come from a single plant in
Sarnia, Ontario and are supported by the petro-chemical industrial
cluster located in the area and our proximity to the U.S. market.
However, our global competiveness is currently being challenged by
other countries, both in the North American and Asian markets.
Although these five globally competitive products are diverse, they
share some important similarities. For each of the five categories
examined, successful sales to countries other than United States was
due to a small number of companies. These companies generally built
their success on one or more of the following factors:
Proximity to key suppliers or customers
Benefiting from the presence of an industry cluster
Ability to develop and market innovative products and establish an early
presence in fast-growth markets
The report was published by the Conference Board's Global Commerce Centre. The Centre provides evidence-based tools to help companies and
governments respond successfully to the trends reshaping the global
Image with caption: "Key Statistics for Five of Canada's Hidden Export Success Stories. (CNW Group/Conference Board of Canada)". Image available at: http://photos.newswire.ca/images/download/20140528_C7219_PHOTO_EN_40823.jpg
SOURCE: Conference Board of Canada
For further information:
Yvonne Squires, Media Relations, Tel.: 613- 526-3090 ext. 221