Canada: A Supply Chain Partner For Businesses Seeking Stability, Growth

For global companies seeking resilience and excellence in their supply chains, Canada offers a range of factors prized by businesses looking to grow and expand their operations.

By Katie Curran, Interim CEO, Invest In Canada
From the March/April 2022 Issue

Supply chains are emerging as a defining business issue in the 2020s. Long a system that few outsiders know much about or concerned themselves with, supply chains are now top of mind for businesses, policy makers and customers alike. Canada is the perfect location for global companies who are seeking resilience and excellence in their supply chains.

Canada Supply Chain
Katie Curran, Interim CEO, Invest In Canada

Canada’s supply chain advantage may start with its geographic location next door to the world’s largest market. But Canada has much more to offer beyond proximity to the United States; the Canadian advantage is based on a range of factors prized by businesses looking to grow and expand their operations.

In an economic period that has faced significant disruption, Canadian principles of an open economy and stable democracy, with a strong commitment to the rule of law and fundamental freedoms form the basis for a positive “Canada brand.” Canada has one of the soundest banking systems in the world and offers unmatched free trade access to more than 50 countries that comprise more than two thirds of the world’s gross domestic product. Investing in Canada introduces companies to a wealthy domestic market, and opens access to every other G7 country and most of world’s largest economies in Europe, Asia and South America.

Canada’s greatest attribute is its exceptional talent. According to the OECD, Canada has the most-highly educated workforce in the world, as 60% of the population has completed post-secondary education. Diversity is a Canadian strength; more than 200 languages are spoken here and Canada takes in more than 400,000 newcomers a year, most of whom arrive with valuable labour force skills. Where specialized talent may be needed, Canada’s Global Skills Strategy can process workers in as little as two weeks.

Canada’s advanced economy means that supply chains and the infrastructure to support them already exist in numerous industries—resource extraction, agribusiness, manufacturing and information services to name just a few. Building on this foundation and utilizing the talent in the labour force, supply chains can be adapted or upscaled relatively quickly to utilize cutting-edge processes and technologies as business needs evolve.

In addition to providing strong traditional supply chain logistics, Canada is also on the leading edge of the industries of the 21st century. Take battery electric vehicles, a clean-energy technology that promises to herald a transportation revolution. Canada has all the ingredients needed to be the supply chain partner of choice in the transition to zero emission vehicles, enabling forward-looking companies to shape the industry with early-stage investment.

Canada is the only country in the western hemisphere that has all the critical minerals needed to produce batteries and is developing the capacity to manufacture them here. Global automakers have announced more than $4 billion worth of investment in Canada since 2020 to transform facilities to produce battery-powered vehicles. Canada also has a leadership position in the safe disposal and recycling of batteries, creating a truly circular and sustainable value chain.

Canada’s advanced economy means that supply chains and the infrastructure to support them already exist in numerous industries — resource extraction, agribusiness, manufacturing and information services.

And Canada’s leadership position extends to other clean technologies, such as hydrogen. Each region of the country has unique resources to produce hydrogen and to supply both the energy and the technology that could decarbonise much of the global economy.

Agribusiness is another priority sector for supply chain investment. Agri-tech plays an increasingly important role in improving the yield, profitability and efficiency. Canada is already a significant agribusiness producer, contributing over $110 billion annually to its GDP in a full range of crops and livestock. of businesses in this sector.

Supply chain challenges are likely to be part of the global economy for some time to come. Companies can help themselves stabilize their supply chains by investing in Canada.

Invest in Canada is Canada’s global investment promotion agency. To learn more about Canadian opportunities, please contact an Investor Services team member at Invest in Canada.

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