Spring 2007 Issue
Special Issue - Canada
Canada Bonanza
Posted: October 1, 2008
From Crankshaft to Crackers, The Canadian Market Can Work For You if You Have the Right Product A retooled crankshaft for a Caterpillar 3612 diesel engine and a Blue Star Farms Stone Ground Multigrain Cracker don’t have much in common. But they share at least two things.
• Canadians buy them, and
• They’re made by family-owned businesses based in the State of Washington.
Canada is by far the easiest export market to penetrate for many Washington companies, and you don’t have to be a big corporation to succeed there. Government agencies on both sides of the border will help make connections. You can enter the market in ways that are nearly innumerable. And right now Canadians are buying lots of everything thanks to the exceptional economic boom that’s taking place in the western provinces of British Columbia and Alberta.
It all worked for B&G Machine, the company that rebuilt the crankshaft, and for Partners, the company that makes the cracker.
Turn the page to learn how it might work for you and your business.
“Canada Bonanza” was produced in March 2007 by Seattle Industry magazine in partnership with the Canadian Consulate General in Seattle, the International Trade Alliance of Spokane, the Manufacturing Industrial Council of Seattle, the U.S. Department of Commerce Export Assistance Service Centers of Seattle and Spokane, and the Washington State Department of Community, Trade and Economic Development.
B&G Machine
Like most Washingtonians, Johnny Bianchi is no stranger to Vancouver, British Columbia, and when he used to visit the city he was struck by the fact that it appeared to be home to so many companies that might be customers for the Bianchi family’s business, B&G Machine in Seattle. So he embarked on his own marketing plan, setting aside Wednesdays most weeks to drive up to Vancouver and call on prospective customers. It was 146 miles up and 146 miles back, with lots of frustration in between, but it worked. That was in 1998. Today, B&G Machine runs two trucks to Canada most weeks to serve a customer base ranging from the commercial hub of Vancouver to the oil sands of Alberta and the diamond mines north of Yellowknife in the Northwest Territories. B&G Machine retains the services of a broker to obtain the necessary permits for border crossings. Otherwise, serving Canada is not really any different for B&G than working with customers in the United States. Says Bianchi, “We’re happy with the way it paid off and find the Canadians very easy and straightforward to do business with.”
Partners
Marian Harris was a restaurant owner who grew tired of the restaurant business. So, in 1992 she started a small baking company called Partners to make the gourmet crackers that she had baked by hand for her restaurants. Just a few years ago Partners had a display at a trade show where a wholesale food broker from Canada saw and tasted some of the crackers. He offered to market them up north. Harris agreed.
Today, Canada accounts for about 20 percent of the company’s sales and Partners has grown from 15 to 80 employees. Partners has doubled its sales figures in each of the past two years and the company just opened a brand-new production plant in Kent, where its bakers turn out crackers that are now sold coast to coast in the U.S. and Canada.
Marian’s daughter Cara directs sales for the company. She says the Canadian experience helped Partners learn what it will take to approach markets such as Japan. “Canada was a great first export market experience,” she said. “They speak the same language, attend the same trade shows, and it’s convenient to ship across the border.
To sell its products in Canada, Partners had to revamp all the wrappers for its exported merchandise to include French for all written material. To help pay for that process, the company tapped into a program available
through the Market Access Program of the U.S. Department of Agriculture. The program provides cash matches
for U.S. companies making investments to sell U.S. food products internationally, and the funds helped pay for
translating for Partners’ first batch of exports.
Joke as we may about the effectiveness of government “help,” the Market Access Program shows that government will do what it can to help wealth-creating exports, and in some cases that means providing financial assistance. The following public agencies provide many services – for free – to help facilitate trade.
U.S. Department of Commerce
The U.S. Commercial Service of the U.S. Department of Commerce is a federal agency dedicated to helping small- to medium-sized companies with their exporting strategies. Services are provided through regional U.S. Export Assistance Centers. Staff at the centers can also provide access to services available through the Small Business Administration, the Export Import Bank, Multilateral Development Banks, and other federal agencies and programs to support exports.
The U.S. Export Assistance Center in Spokane has zeroed in on opportunities arising from the oil sands. Learn more online at www.buyusa.gov/spokane/oilsands.html.
The U.S. Commercial Service also has on-the-ground staff available in Calgary and Alberta, and general services are available through the Export Assistance Center in Seattle. Learn more about all services at www. buyusa.gov/pnw/export_services.html.
Washington State Resources for Trade and Economic Development
The Washington State Department of Community, Trade and Economic Development (CTED) helps Washington businesses gain access to international markets. Mary Rose, 2010 Program Manager, is the point person for companies wanting to learn more about opportunities associated with the 2010 Winter Games in British Columbia. CTED’s international trade program managers have expertise in aerospace and marine industries, building materials and wood products, industrial machinery, information and communications technology, and medical equipment and devices. CTED has representatives in Vancouver, B.C., to assist companies in making connections and developing business opportunities. The agency also maintains foreign offices in China, Japan, Taiwan, South Korea, Mexico, and Germany. To access these services, contact Mary Rose at maryr@cted. wa.gov. For more information about CTED export services, click “Trade and Economic Development” at www. cted.wa.gov/.
International Trade Alliance
Karen Cooney, Trade Assistance Director for the International Trade Alliance, is the contact for companies east of the mountains. The International Trade Alliance, located in Spokane, Washington, is a nonprofit international business development organization. The ITA provides export services to businesses throughout Eastern Washington and Northern Idaho. In addition, the ITA offers educational and networking opportunities, including several exciting Canadian programs.
CTED and the U.S. Commercial Service are ITA partners. Contact Karen about Canadian opportunities at kcooney@intrade.org.
Communities and companies throughout western Canada are experiencing unprecedented growth due to the combined impacts of the Alberta oil sands, the 2010 Winter Games in British Columbia, and construction of a new mega port at Prince Rupert on the Pacific Coast. These activities are resulting in a growing list of opportunities for individuals and businesses in the United States that want to invest in Canada.
The opportunities are enhanced by the fact that Canada is one of the most stable nations in the world for outside investors. The provincial and national governments are also implementing a number of new measures to make Canada more business-friendly.
The Canadian Consul General office in Seattle is a good place to start to learn more about the opportunities. Consul General Peter Lloyd leads a diplomatic mission that includes a team of trade commissioners headed by Senior Consulate Trade Commissioner Michael Virr, who are available to help make introductions and connections.
Don’t call if you want to sell products to Canadians or wish to open a restaurant or retail outlet in Canada that would compete with Canadian firms. Do call if your idea would help Canadian companies or communities. The Canadian government is especially interested in helping those who want to invest in Canadian manufacturing, research and development, information technology, and life sciences.
A good contact is John Pearce, the consulate’s Trade Commissioner for Investment and Technology. He can be reached at John.Pearce@international.gc.ca. The general information line at the consul’s office is 206-443-1777. The Canadian Consul General staff in Seattle serve the states of Washington, Alaska, Oregon, and Idaho.
Networking opportunities are also available through the Canada-America Society; visit them at www.canada americasociety.org/contact.html.
