Tr Cutler Leading Industrial Journalist Discusses Emerging Industrial Markets for Canadian Manufacturers

Author: Thomas Cutler

| Posted: 24-09-2007 | Comments: 0 | Views: 9 | Rating: (50)

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TR Cutler Leading Industrial Journalist Discusses Emerging Industrial Markets for Canadian Manufacturers

The current issue of Metalworking Production and Purchasing features an article titled, “Productivity, profit primary motivators for entering emerging markets” by leading industrial journalist TR Cutler.

Despite the perils of paint tainted with lead in children’s toys, and poison in petfood products, the power of profit entices Canadian manufacturers into emerging markets which offer attractive growth opportunities. Fear, inexperience, and lack of a quality process control, causes less than one quarter of Canadian companies to enter the significant market potential of China, India, Russia, and South America. When functioning at the global level Canadian manufacturing companies can expect much higher revenue growth when taking advantage of emerging markets.

Canadian productivity level, which measures the amount of resources required to produce a product is stagnating. Increases in capital, labor, and raw materials produce barely any additional output. For the past five years, the output per hour in the Canadian business sector grew only 1% annually, down from 2.4 % in the previous five years. Canada has lost ground to international competition. Canadian business productivity is slipping relative to many members of the Organization for Economic Co-operation and Development (OECD). Four decades ago Canada was ranked third, today 17th. The public and private sectors might work together on a productivity agenda that might include reduction in the federal debt-to-GDP ratio; elimination of inter-provincial trade barriers; removal of foreign ownership restrictions in key sectors; cutting the tax rate on capital; aligning immigration and economic objectives; greater investments in infrastructure, education and knowledge-based industries. Whether some or all of these productivity efforts transpire, profitability drives current free market capitalism.

The cost of materials and labor required to manufacture products tends to be far lower than in developed markets and the populations of the emerging markets represent significant revenue-earning potential, provided the manufacturer can adapt its product offering to the realities of that local market. It is difficult to ignore an Indian and Chinese population of more than two billion, seven times larger than all of North America. Ignoring these markets represent a significant missed opportunity for Canadian manufacturers.

Competition from international manufacturers working in emerging markets and exporting their goods to Canada creates a dramatic trade imbalance if these markets are ignored as global clientele. Thanks to the recent strengthening of the Canadian dollar, Canadian manufacturers could achieve a big boost in profitability. Most Canadian businesses are unprepared to deal with the rise of China as an economic power, according to a new study of manufacturers and exporters. Just over one third of the companies surveyed are already doing business with China, the majority of them with less than three years’ experience.

Ranked as the nation’s leading manufacturing journalist and an editor for more than 300 publications, TR Cutler, Inc. President & CEO Thomas R. Cutler, (www.trcutlerinc.com) has issued a PR Checklist for manufacturers. TR Cutler, Inc. was founded almost a decade ago. Cutler maintains extraordinary relationships with clients, journalists, editors, trendsetters, and key business leaders worldwide and has become a key resource for those writing about the manufacturing sector.
Cutler founded the Manufacturing Media Consortium™ in the 90's. This extraordinary group of more than 3000 journalists worldwide is writing about trends, data, case studies, profiles, and features in the manufacturing and industrial sector. Cutler has worked with thousands of media outlets to expand manufacturing media coverage.

Cutler has authored more than 2,000 articles for a wide range of manufacturing periodicals, industrial publications, and business journals including most of the leading monthly trade publications.

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TR Cutler, Inc.
www.trcutlerinc.com
Thomas Cutler
trcutler@trcutlerinc.com
888-902-0300

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Tr Cutler Leading Industrial Journalist Discusses Emerging Industrial Markets for Canadian Manufacturers

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