The COVID-19 pandemic has taught us the importance of resilience, both in our individual lives and more broadly in the economy and society. The pandemic exposed risks in the predominant 21st century business model of global supply chains where commercial decisions are based on low-cost production. Global companies are reviewing their operations and considering their next investments in strategic locations with stable business environments.
Foreign direct investment fell sharply as much of the global economy shuttered during the first half of 2020. Nevertheless, investors continue to seek targeted opportunities in growth-oriented and resilient sectors. Forward-thinking business leaders are also looking to invest in the products and services that will be vital in a post-pandemic world.
Canada enjoys numerous advantages amid the reshaping of global supply chains, including:
- Brand: Canada is an open economy and a stable democracy, with a sound banking system and a strong commitment to the rule of law.
- Market access: Canada’s trade agreements provide unmatched reach to markets in North America, South America, Europe, and Asia.
- Talent: Excellent educational institutions, a highly skilled and diverse workforce, and an openness to immigration offer investors the personnel to deliver on their investments.
Invest in Canada, Canada’s foreign investment attraction and promotion agency, engaged KPMG LLP to conduct an analysis of the supply chains that offer the strongest opportunities for investment. The report, Advantage Canada: Reshaping Supply Chain Investment Opportunities After COVID-19, takes the next step in navigating the shifts underway in global commerce.
KPMG examines three supply chains with potential for growth coming out of COVID-19: Advanced Manufacturing, Agribusiness and Clean Tech. Each of these sectors have long contributed to Canada’s economic success, but its advantages in these supply chains stem from a combination of existing assets and emerging competitive strengths.
Advanced manufacturing includes high value-added processes and covers multiple sectors. The leading opportunity in Canada is the shift from geographically dispersed supply chains to production centres close to the final consumer. Proximity to the U.S. market makes Canada an ideal location for new investment or expanding existing operations.
Canada’s integrated “farm to fork” supply chain — in combination with high levels of trust in food quality and safety, which are in high demand among consumers – is a significant advantage for investors. The fast-growing plant protein industry continues to attract investment and is supported through the government’s Innovation Supercluster Initiative.
The clean tech industry focuses on applying innovative technologies that reduce carbon emissions across the energy sector. KPMG describes Canada as a “playground for Clean Tech”, with a range of investment opportunities, including the transition of the long-standing natural resources industry to clean energy uses.
Canada showed its resilience during the pandemic; it is now well-positioned to help shape the once-in-a-generation transformation of supply chains now underway. To learn more about investment opportunities, contact an Invest in Canada Investor Services team member.
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