3 Benefits of an American and Canadian Industrial Subcontractors Partnership

Canada, thanks to its geographical proximity, is the natural partner of the United States, even though many experts said a few years ago that the future of the United States is in China. Some of them even advocated a total relocation of American manufacturing activity to China in order to reduce production costs and trade deficits. Despite this, the volume of trade between manufacturing companies on both sides of the border continues to grow, offering a variety of business opportunities, especially for US manufacturers and their subcontractors. Here are 3 reasons why:

1- The Weakness of the Canadian Dollar

As Canada being a major energy producer, the fall in oil prices exerts pressure on the Canadian dollar, dragging down its value. Of course, both winners and losers come out of this situation. It puts Canadian importers, retailers, and wholesalers at a disadvantage, but it gives American subcontractors the opportunity to put hands on Canadian expertise at very competitive prices, and it allows Canadian subcontractors to benefit from this strong demand for goods and the dynamism of the American industrial sector.

 

2- The Rebirth of the American Manufacturing Industry

After spending ten years to adapt to the impact of China’s entry into the World Trade Organization (in 2001) and to recover from the recession of 2008, the American manufacturing sector is experiencing a strong recovery. This sector is stimulated by the lower oil and gas supply costs, higher wages in China, as well as a myriad of partnerships between American and Canadian companies. Besides, these partnerships allow American manufacturers, as well as their subcontractors, to benefit from specific Canadian know-how and expertise to keep up with the advancements of technology, while remaining very competitive. This is why many American manufacturers, and even their subcontractors, entrust part of their business operations to Canadian outsourcing companies, especially in periods of peak workload.

 

3 – Canadian Industries

Canada is one of the countries with the most industrial subcontractors in the world. As a result, American manufacturers and their subcontractors can benefit from a strong value chain with strengths in a broad spectrum of verticals. Added values include knowledge in metal processing, cutting, painting, automation, mining machinery, and agri-food production machinery. Moreover, American and Canadian companies have many things in common, which include corporate culture, business practices, and perception of certain parameters such as the quality.

 

What is the Groupe Hyperforme all about?

Specializing in strategy coaching for industrial companies, Groupe Hyperforme offers a full range of outsourcing services in the manufacturing sector, thanks to its extensive network of subcontractors in Quebec, in Canada, and on the international scene, all top leaders in their respective fields. Group Hyperforme provides its expertise in international business development to its partners, in order to highlight their activities and to ensure the most profitable business arrangements.

Please contact the Groupe Hyperforme for a free assessment of your project without any obligation on your part.

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