Well, profit de /’occasion. As traditional exporters become discouraged and seek new markets, new exporters are eager to take advantage of opportunity. With a population aof over 300 million people, Americans consume over $192US billion of print, yet only 0.9%, ($1.8US billion) is imported from Canada. However, this tiny sliver represents 1/6th of Canada’s total printing production and fewer than sixty companies share in that market. This provides a huge opportunity for exporters.
Fortunately, the Canadian print industry has historically delivered exceptional product value and performance. We’ve built a reputation in the U.S. that quality and service are better north of the border. Newer equipment, better materials and refreshingly courteous, honest people are the pillars of this status. While the current reality of a stronger dollar and higher freight costs affect our competitive edge, we can respond by strengthening old ties and modifying our offerings.
The new print export plan must be focused on pre- and post-press activities, not just at the printing press. The profit curve in the print industry is U-shaped. At the bottom in the center is the press, and the top at each end is the pre-and post-press. The least successful approach is to put the emphasis on the act of reproduction (the press). The most successful one is developing the add-on activities before and after the act. In addition, content development and organization, colour management and cross-media capability are other extremely saleable add-ons.
As the U.S. moves more and more to big-brother government, we have ample public content adaptable for export. For example, there are billions of dollars in tobacco-settlement funds earmarked for anti-smoking campaigns. There are social issues, such as obesity, gambling, unplanned pregnancy, alcohol abuse and multiculturalism. Canada has those issues too and our programs have been packaged, presented and tested for years.
Connecting with Others
Working with federal and provincial trade development agencies and their private sector clients is one way of getting into exporting. Another avenue is International Trade Canada, formerly the Department of Foreign Affairs and International Trade. For a fee, you can accompany the Minister of Trade and other experts on a trade mission. These initiatives provide an opportunity to collaborate with international traders from here and abroad.
These missions often include executives from the various crown corporations that are central to the export process and management: Export Development Canada (for trade receivables and performance bonds), Canadian Commercial Corporation (for progress payments and credit lines to foreign buyers), and the Business Development Bank of Canada (for capital and equity transactions).
Participation by federal and provincial departments and organizations such as Hydro Ontario, Canadian International Development Agency (CIDA) and Loto Quebec, offer unique connections of their own. How else could smaller print companies get overseas contracts for currency, lotteries, tickets and publications? It’s all about whom you know.