Why Latin America?
It's natural for Canadian manufacturers to focus their export efforts to sell in the United States market. After all that market is practically identical to Canada's, closer than any other and relatively more stable. The other markets of preference, to Canadian manufacturers are those that are more familiar due to cultural or ancestral ties to members of Canadian society. Because of these choices of market, entire continents are therefore not on the radar of most of these Canadian manufacturers. Those that, however have the vision to explore these markets, find themselves largely competing in a market with very few players and have the opportunity to excel.
The Latin American economy is about 1/6 that of the USA however Canada exports to Latin America 1/73 of what it exports to the USA. Even when compared to China, an economy that is basically the same size that of Latin America, the export value to that country is almost double that of Latin America for Canadian products.
Canada exports over 80% of all its manufactured goods to the United States, a Statistics Canada Report from 2002 goes even further on the level of dependency Canadian manufacturers have on the United States market. The agency claims that "almost 70% of all Canadian exporters rely on the United States as their only export market. These exporters account for 43% of total exports in 2002."
This dependency is not only a factor of movement of goods and services, but also the close relationship in every aspect of these two countries' economies. The result is that, due to our proximity to the United States, every slowdown of that economy reflects almost immediately in Canada. Causing the crippling effect of reduce demand suffered by Canadian manufactures on both sides of the boarder. As the popular saying goes "every time the American economy has a cold the Canadian economy has pneumonia".
By widening their market reach to other regions, like Latin America, the Canadian manufacturer, reduces the impact these economic fluctuation have on them. Leal Consulting can assist Canadian manufacturers tap into these under-explored markets.
Benefits
Our network of experts spans the whole of South America and Mexico. We are currently working in having key associates in Central America and the Caribbean as well.
We can function in the Latin American market on behalf of our clients while they can continue their normal operations in other markets where they are more familiar.
By allowing us to assist or operate in their behalf in Latin America our clients can reduce operating costs, maintain their work force focus in tasks that are familiar to them, remove the need to have multilingual staff, open new markets and reduce dependency on domestic or North American markets while increase sales and/or profitability
Our client can configure a tailored service which may include:
- Prospecting
- Market Segmentation
- Market Research
- Promotion
- Product demonstration
- Product selection and specification
- Quotation and technical offer preparation
- Product support
- After sale product set up and product configuration
- International trade logistics administration