MONTREAL, Quebec—After years of minimal export expansion, the international sales of Quebec companies are forecast to have two years of solid growth this year and next according to Export Development Canada (EDC).
“The U.S. continues to be Quebec’s biggest customer in trade,” said Peter Hall, Chief Economist, EDC. “As industry in the US reaches its peak capacity, American businesses will be looking to their trusted northern partners to help them continue to meet demand. This will mean big opportunities for companies in Quebec, especially those involved in machinery and equipment.”
The report estimates Quebec’s exports will grow by seven percent in 2015, and six percent in 2016.
The lower Canadian dollar will also drive foreign business investment to Quebec in 2015. This is expected to provide the most noticeable benefit to the aerospace and forestry sectors.
“Although it’s a good story, Bombardier isn’t the only aerospace story in Quebec,” said Hall. “Companies that supply aircraft parts and other materials across the aerospace sector will enjoy good growth in exports over the next two years. This is driven not only by a high level of profits in the U.S., but also increased global air travel.”
Aerospace exports in Quebec will see some of the highest growth in the country over the next two years with a forecast increase of 17 percent in 2015 and 20 percent in 2016.
“Pent up demand in the U.S. housing market is having an impact across Canada,” said Hall. “The housing market in the U.S. has been restrained in recent years but it’s now seeing an impressive comeback. For forestry and lumber companies in Quebec who are considering exporting now is the time to reach out to U.S. prospects.”
Metals and ores exports will see more modest growth of three and two percent in 2015 and 2016 respectively as commodity prices re-balance.
EDC is Canada’s leading provider of small business financing and insurance for companies with sales or business outside of Canada. EDC’s economics team is considered to be among Canada’s leading trade experts, who share their knowledge freely with Canadian companies to help them grow their international sales, and manage the associated market risks.
EDC’s semi-annual Global Export Forecast addresses the latest global export conditions including perspectives on leading economic trends and export strategies to help Canadian companies maximize their export growth. The forecast also analyzes a range of risks for which exporters should be prepared.