VAUGHN, SUDBURY, BURLINGTON and NIAGARA, ON, May 30, 2017 /CNW/ - Export Development Canada (EDC), Canada's trade finance agency, reports that last year's export success is posing potential challenges for Canada's industrial heartland in 2017.
According to EDC's semi-annual Global Export Forecast, Ontario's export engine is finding itself running at full throttle, providing little room for growth after coming off a nation-leading 4 per cent increase in exports in 2016. The forecast predicts the province's international sales will post a modest 2 per cent increase this year, courtesy of gains in machinery and equipment, ores and metals, as well as consumer goods. That's below this year's national level of 6 per cent export growth.
Accounting for approximately 40 per cent of total exports, the province's largest sector, automotive, will stall after posting an increase of 9 per cent last year. However, Ontario's export sector is expected to rebound with a 4-per-cent increase in 2018.
"Ontario exporters have their foot on the accelerator, but with capacity rates at 90 per cent for the province's export-intensive industries, it's hindering short-term growth. It's a good news story for today, but there's little room for growth tomorrow if the capacity challenge isn't resolved," said Peter Hall, EDC Chief Economist and Vice President. "Overcoming these constraints will enable Ontario exporters to tap into new opportunities in markets outside North America in the long term."
Canadian exporters are facing unprecedented risk in global markets due to an increasing trend that is threatening to dismantle globalization. Even as the globalized architecture of international commerce is being questioned in the geo-political space, EDC is convinced that trade business and foreign investments will continue to gain steam in the short term.
"This is a story of risk, opportunity, and what-ifs. Is this the beginning of the end for globalization? That's highly unlikely – the cost is massive, and everyone gets a bill in the mail," Mr. Hall said. "The message that EDC has for Canadian companies is to stay in the game and win the contracts that others have been frightened away from."
Mr. Hall is discussing export prospects for Ontario as well as the nation during four Ontario events – May 30th in Sudbury, May 31st in Burlington and Vaughn, and June 6 In Niagara. All are part of a month-long, 13-location cross-country Let's Talk Exports tour. The initiative highlights export prospects for Canadian companies around the globe in addition to providing insights into the health of the global economy and how it will impact Canadian exporters. For more information, visit <<EDC's Global Export Forecast>> to learn more.
EDC helps Canadian companies go, grow, and succeed in their international business. As a financial Crown corporation, EDC provides financing, insurance, bonding, trade knowledge, and matchmaking connections to help Canadian companies sell and invest abroad. EDC can also provide financial solutions to foreign buyers to facilitate and grow purchases from Canadian companies.
For more information about how we can help your company, call us at 1-888-434-8508 or visit www.edc.ca.
SOURCE Export Development Canada
For further information: Shelley Maclean, Export Development Canada, (613) 291-3689, firstname.lastname@example.org