Why should you expand your business into Canada?
- Published: 15 Sep 2017
Strong, growing economy
It’s no surprise that Canada is an economic powerhouse. But did you know that Canada led the G-7 countries in economic growth from 2003-2012? This speaks to its strong and consistent financial growth.
In 2015, Canada overtook Russia as the 10th largest economy in the world. At $1.6 trillion, Canada is expected to go up to $1.9 trillion by 2022, keeping it ahead of Russia. This is impressive, considering that Canada is working with a quarter of Russia’s population (36+ million vs. ~144 million). Growth year over year from 2017-2022 is projected to range between 1.8-2.0%.
The projected top economies in 2022 are:
- The United States of America
- United Kingdom
Canada is one of the largest countries in the world, but its population is dense and concentrated toward the Canadian and American border, rather than spread throughout the country. As an American-based country, this is to your benefit. Your Canadian customers are close together and easier to reach. This makes it viable, for example, for you to keep your warehouse in the US and send freight to Canada. However, if you need a warehouse in Canada, we’ve got three!
Having access to most of the population of any country doesn’t mean much if you can’t market your product to them. That’s where the close cultural similarities between the United States and
Canada benefit your company. The Canadian market is different than the American market, but not by much. This allows you to learn how to expand into an international market with significantly lower risk than if you were to expand into another international market, such as Mexico.
By expanding into Canada, there’s the potential that your product is one of the first, if not the first, products of its kind and quality to enter the Canadian market. This grants your product special attention and the opportunity to have it become a household name, much in the same way that tissues are often called Kleenex.
Not only that, but your product has the unique opportunity of being exposed to another audience that is, in many ways, similar as the audience you are currently serving, but also different in key ways. This expansion into Canada may shed light on your product’s flaws (design, marketing, etc.), which will make your product and company stronger.
Diversification is something that is tossed around a lot as a way of protecting yourself. The same goes with your business and its sources of income. With the Canadian market as an additional source of revenue, you make your company more resilient if a financial crisis, for example, happens in the USA.
We here at ADLI Logistics have helped many American companies, such as Nutrabolt, bring their products to the Canadian market. We would love to help you do the same.
Enlist ADLI Logistics to manage your freight shipping, warehousing, and distribution needs. For more information fill out our contact form or call 1-877-363-7281.