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Andrea in the news
(http://www.thechronicleherald.ca/Search/898623.html)
Capitalize on loonie, exporters urged
Entrepreneurs should be buying in U.S. author
By STEVE PROCTOR Business Editor
Exporters should not let the soaring loonie stifle their efforts to find markets abroad, says the author of a new book on exporting.
Instead, Andrea Mandel-Campbell believes entrepreneurs who believe they have a product with international appeal should be using the opportunity to invest in relatively cheap U.S. equipment that will allow them to improve their productivity.
"Up until now the dollar has been a convenient crutch that has allowed exporters to use the same model they have for a century," she said in a telephone interview. "We’ve been coasting, but as many people are finding out, the ride is coming to an end."
In her book, Why Mexicans Don’t Drink Molson, Ms. Mandel-Campbell details a staggering number of instances where Canadian companies have blown opportunities to take their goods to the world, either because they didn’t have faith in themselves, or they simply thought it would be too much work.
"Canadians have been content harvesting the low-hanging fruit. They have been able to make good money in the home market, maybe dangling a toe into the U.S., and then contentedly put their feet up at night," she said. "Now, unless you are lean and mean, companies are shutting down."
Noting that many much smaller countries have developed technology that supports value-added possibilities for their natural resources, she said Canada has failed to create any similar opportunities. It’s telling, she says, that Canada is home to the richest timberland in the world, but not one significant saw maker; we depend on the automotive industry, but it’s easier to get a degree in aeronautics than it is in auto parts design.
"We’ve always been content to be people who cut trees, dig out metals or assemble cars. We’ve been content to see ourselves as a lower rung on the ladder."
With China’s "Hannibal-like" incursion in world markets, however, Canadians can no longer sit on the sidelines any longer. They cannot "sell off everything to keep the status quo."
And they don’t have to. Although Canadian companies have to learn about the business climate in any country they hope to sell into, she said too many just don’t try.
"Canada is respected around the world. Just the fact that a company is Canadian offers it a natural advantage, but very few companies are cashing in on it. If more businesses simply tried, I bet they would find out they could be successful."
Nova Scotia is particularly weak at exporting. Despite 40 government-sponsored trade missions organized by the province over the last five years, there are only a handful of companies selling outside the country and the province remains near the bottom of the back in terms of exporting as an impact on the economy.
Ms. Mandel-Campbell will be a guest speaker at a NovaKnowledge luncheon in Halifax on Friday and will try to jump-start interest in exporting among local businesses. She will be sounding the alarm, she says, preaching the idea that Nova Scotians need to be designers and innovators, that entrepreneurs need to think in global terms and action has to replace discussion.
"It’s time to get out of our comfort zone. We can’t afford to be complacent," she said. "We talk about the Atlantic Gateway and LNG plants. While we’re talking about it, Australia is doing it."
She said considering Nova Scotia’s location in terms of shipping to Europe, our export base should be much bigger.
( sproctor@herald.ca)
