Issue - January/February 2005

The Twain Does Meet

You can’t avoid reading, talking or hearing about the “golden” business prospects and exciting partnerships and outsourcing opportunities presented by China’s expanding marketplace. Nor would you want too. That country’s giant and still rapidly develping economy cannot be ignored by Canadian companies selling or purchasing beyond their own borders. And that simply means that no sector of Canadian commerce is left out of the equation. As an indicator of our involvement, Canada-China bilateral trade increased to $23.2 billion in 2003, pushing China closer to the top as one of Canada’s biggest trading partners. Only the U.S., Japan and the U.K. now outrank it.
“In addition to export opportunities, China’s economic expansion also presents significant opportunity for investment,” says Jayson Myers, chief economist and senior vice-president of the Canadian Manufacturers & Exporters. “Foreign companies now account for just over half of China’s exports and 60% of total Chinese imports. Approximately 60% of China’s exports into the North American market originate from North American companies that have established production facilities in China.”
The emergence of China as an industrial powerhouse, and as one of the world’s largest and fastest growing economies, is revolutionizing global markets. Competition has become incredibly intense for manufacturers fighting for market share with low cost and increasingly sophisticated and high quality products being imported from China. But at the same time, China offers companies in Canada—and around the world—enormous opportunities for exporting or improving productivity.
For all of the above, we have devoted this issue’s cover story to the benefits (many) and pitfalls (also plenty) of outsourcing components or compete product assembly out-of-country. Although China is a focus in the article, the same logistic strategy would be applicable in evaluating any foreign partnership arrangement. That means making full use of all our own government and private resource sector to become as knowledge as possible before taking the plunge. To paraphrase Teddy Roosevelt, speak softly but carry a big stick of business acumen,
 
Welcome Aboard
There will be a new editor at the helm for future issues of Purchasingb2b. She is Lisa Wickmann, a highly skilled and respected business journalist and freelance writer, who is returning to the world of bylines and deadlines following maternity leave. Lisa previously worked at Rogers Publishing Ltd. for several years and has held senior editorial positions on various industry publications, including being a contributer to Purchasingb2b. Lisa will bring her own special perspective to this magazine and we can promise you interesting, informative and profitable reading. And just as a bonus, she hails originally from Newfoundland.
 
Ron Richardson
Interim Editor