Posted on

Canadian Games to a Global Market

According to Business Insider, the Gaming industry as a whole is anticipated to contribute upwards to $139 Billion by 2022 in global revenues. In Canada, there is a growing number of companies producing games, and the vast majority of those, over 80%, are small businesses. It’s clear that there are a lot of opportunities and the potential is enormous for the gaming entrepreneur to break into the international market. 

The Global Canadian Business Forum had the pleasure of interviewing Jean Leggett with One More Story Games to get her advice to game developers about what they need to do to market their games to the world. 

Global Canadian Business Forum YouTube Video

Recently, the Entertainment Software Association of Canada released its 2019 economic impact study – The Canadian Video Game Industry 2019, exploring industry growth and contributions to Canada’s economy. 

The document looks at the industry through five lenses: economic impact, size and structure, geography, employment impact, and workforce. Canada’s video game industry is well-positioned for continued growth; in the last two years, the number of Canadian video game companies increased by 16%, to 692 active studios. The industry contributed $4.5 billion to Canada’s GDP in 2019; and, supports an estimated 48,000 Full-Time Equivalents (FTEs) of employment including 27,700 FTEs directly employed by video game companies. 

As the gaming industry is, for all intents and purposes an international market, Global Affairs Canada has taken serious note of the industry. The Trade Commissioner Service participated in the latest Montreal International Gaming Summit (MIGS) last week to support Canadian studios wanting to launch their product to the world. 

“While companies are thriving in Canada’s strong video game development sector, our industry continues to sit at the centre of an innovation ecosystem that is driving growth in Canada’s Digital Economy,” said Jayson Hilchie, President & CEO of ESAC. “With many of the world’s biggest franchises driving strong job growth in this country, our industry will continue to punch above its weight and lead the world in the development of exciting and innovative digital entertainment.”

Posted on

GCBF Signs Strategic Partnership Agreement with Canadian Chamber in Italy

Canadian Chamber in Italy and GCBF

The Global Canadian Business Forum is proud to announce the signing of a Strategic Partnership Agreement with the Canadian Chamber in Italy.  

This Memorandum of Understanding (MOU), is the first for the GCBF, and represents an important step as we work to realize our goal of connecting Canadian entrepreneurs with resources to help them succeed abroad.  Italy is an amazing trading partner with Canada and the Canadian Chamber located in Milan is working hard to further develop relationships between Canadian and Italian organizations. We are proud of this partnership and look forward to working with Jose Salgado, president of the Canadian Chamber in Italy.  

The signing of the agreement allows for the Global Canadian Business Forum and the Canadian Chamber in Italy to collaborate with each other and to execute their respective mission statements, mandates for our mutual interests and benefits of stakeholders.

Posted on

Canada’s Cannabis Companies Expanding Their Export Horizons Internationally

There has been a lot of talk about the Cannabis Market crash, the result of the fact that both federally and provincially, red tape on retail has not kept up with production output. Eve & Co., a producer in Southern Ontario, is one of the few companies that are poised to take advantage of export opportunities at a time that every cannabis producer needs to be thinking about it.

Eve & Co. is Canada’s first female founded licensed producer of medicinal marijuana and received its cultivation license from Health Canada in 2016. Since international markets for Cannabis products and CBD are far more lucrative than in Canada, Eve & Co. continues to sign agreements with Germany. The company has recently entered into a third binding, non-exclusive supply agreement for the sale of dried cannabis to a German importer and distributor.

Having established three supply agreements with Germany. The total represents a minimum of 116,000kg over the next 5 years (shipping to start early 2020) with a total value of $416 million (assuming a wholesale price of $3.50). 

No alt text provided for this image

Most CBD cultivators and producers in Canada are not only focusing on the Canadian market but also deploying some assets overseas. Considering how things have unraveled in the Canadian market in recent months, Eve & Co’s strategy makes more sense in hindsight.

The German market, has been touted as one of the largest cannabis markets outside North America. Eve & Co. hopes that cannabis laws will become less restrictive throughout Europe, which will allow it to expand similarly into more markets.

Canada has a 20-year head start on the United States in growing and processing hemp. It has allowed commercial hemp production since 1998, and within two decades, has established itself as a world leader in the production of food products as well as agricultural seed for planting, according to a study.

Canada legalized production in 1998 and since then has produced hemp primarily for nonviable hempseed used in food products. The industry has grown rather slowly over the past 20 years as producers worked through agronomic issues and a limited number of processors developed hemp products and markets.

But in 2018, Canada’s acreage shrank as the nation lagged behind its southern neighbour in developing a market for hemp extracts such as CBD, according to a new report from the U.S. Department of Agriculture (USDA) that highlights Canada’s industrial hemp industry. More than 70% of the country’s 5,400 metric tons of hempseed exports last year went to the U.S., with the remainder being sent to European Union-member countries and South Korea. 

Posted on

Is Recession Coming? Not Quite for Canada. 2020 Isn’t Gloomy for all Exports

With all of the talk of a looming global recession and economic slowdown being awfully high, there is some good news from EDC’s (Export Development Canada) recently released outlook for 2020. The report provides a glimmer of hope for some sectors that poised to increase growth over 2019. 

EDC’s fall Global Export Forecast, and expectations for 2019 show solid export growth across all provinces. Throughout Canada, exports of goods are expected to grow another 4% in 2019, following a 6% boost this year.

No alt text provided for this image

Exporting companies in the Forestry products, Agri-Food, and Ore and Metals sectors are expected to see modest increases in their growth in 2020. It also sees a near-term resolution that should reignite growth.

On one hand, global growth is slowing, led by weak business investment and trade. But the other, on the consumer side, the picture is much better; job creation continues, unemployment is low, and consumer spending is holding up.

Forestry Products

2019 has been a disappointing year for this sector with a 12% decrease in growth. The result of dropping lumber prices and weak U.S. housing starts. Coupled with soft Chinese demand for pulp, overall, it has been a difficult time. The expectation, however, is that as supply has tightened up, prices for products will rise in 2020, leading to a welcome 6% growth. The forecast is that BC will see a modest 2% increase in growth next year vs. -5% this year.

Agri-Food

This is a $66 billion a year sector. It has a broad definition, encompassing a significant number of products. Everything from Meat, Eggs, and Seafood to Ethanol from corn and other sources can be lumped into this sector. The big news, of course, is that with the loosening of the import restrictions into China of Beef and Pork, 2020 is expected to see growth of even greater than the 4% that EDC published in their report. Compared to the slight growth of only 2% in 2019, 2020 will be a welcoming year to this sector. Saskatchewan, in particular, is expected to benefit from this growth. Thanks to trade agreements with Japan (CPTPP) and the European markets (CETA), PEI is expected to see benefits as well.

Ores and Metals

Behind Energy and Automobiles, this is Canada’s third-largest export sector contributing $79 billion to the outlook table. 2019 saw a modest 2% growth in this sector but that number is expected to increase to 3% in the coming 16 months. Prices of the metals that make up the majority of this sector have been hit hard this year but that is expected to change in 2020.

Ontario and Quebec are the largest exporters for this sector and will be the regions that are expected to see the growth. Economic growth should continue at a modest pace both in Canada and internationally in 2020.

Posted on

International Trade is Key to Canada’s Economic Growth: Survey

Canadian small and medium businesses (SMEs) have made it clear that economic improvement and international trade are closely linked. According to a recent poll conducted by 2019 FedEx Express Canada, 83% of SMEs agree that increasing trade between Canada and other countries will improve the economy overall. The poll also uncovered that only 37% of Canadian SMEs currently sell their goods online to a global market, versus 44% of their American counterparts.

Small business is big in Canada: 98.2% of all businesses have fewer than 100 employees. When you add in medium-sized businesses (100 to 499 employees), the percentage rises to 99.8%. They are the engine of the economy and their success is vital to Canada’s prosperity.

According to the third annual American Express Global SME Pulse Survey conducted in September this year, Canadian small and medium-sized enterprises (SMEs) are forecasting slower revenue and profit growth in 2019.

When asked about revenue projections, only 6% of SMEs forecasted a 5.1-10% growth rate, a significant decline from 2018 where 28% of respondents forecasted the same rate. But despite these lower forecasts, the majority of SMEs (78%) believe their role is important to the overall health of the economy. They also remain optimistic about the state of global and local economies and are putting strategies in place to drive revenue growth, increase efficiency and boost bottom lines.

“These results are very clear when it comes to our country’s approach to trade,” says Lisa Lisson, President of FedEx Express Canada. “Put simply, it is vital that SMEs and their ability to compete on the global stage remains a priority in Canada, to contribute to economic growth. Looking at how we achieve this growth, we know there is a huge opportunity for Canadian SMEs to harness the digital economy – and they should absolutely be using it to their advantage.”

By their nature, Canadian SMEs are resilient — a characteristic that helps drive their success. The optimism for future prospects is perhaps indicative of the faith they have in their abilities, despite the headwinds that might be present in the Canadian economy.

Canadians are multilingual and thanks to our diverse multicultural policies, we are understanding of other cultures. These are traits that are essential to be successful in international trade and coupled with a strong network of Canadian Business Councils, Canadian Chambers of Commerce and the Trade Commissioner Service with Global Affairs Canada there is tremendous opportunity for Canadian SMEs to grow.

Given the paradigm of the Canadian global mind frame, the entrepreneurial spirit, Canadian ingenuity, and resources that are unprecedented around the world, the potential for Canadian SMEs to compete internationally and become successful is tremendous.

The Global Canadian Business Forum agrees with Lisson when she said. “Canada needs to pursue a comprehensive pro-growth, pro-competitiveness agenda that can help strengthen our global economic leadership. With 99.5% of the world’s population outside Canada, we need to continue to find ways to reduce barriers to Canadian goods and services around the world.”