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Think Canada when growing the U.S. Channel

American companies from multiple verticals have already been expanding into Canada for quite some time. For forward-thinking U.S.- there has never been a greater time to take advantage of this trend northward.

The U.S. Channel is steadily growing and for those seeking amazing growth opportunities, Canada continues to be a prosperous land of opportunity. That’s why American companies from many verticals have been expanding into Canada for quite some time. For forward-thinking U.S.-based Information and Communications Technology (ICT) solutions providers, there has never been a greater time to take advantage of this trend northward. Here are a few fast facts about Canada:

– Canada and the U.S. share the longest trade border in the world thanks to the North American Free Trade Agreement (NAFTA)  

– Cross-border trade is stronger than ever: In 2022, Canada and the U.S. traded more than $1.2 trillion worth of goods and services (that’s almost two-thirds of Canada’s global trade)  

– Out of the G7 countries, Canada has the second highest projected real GDP growth for both 2023 and 2024, according to IMF’s World Economic Outlook  

– Canada’s top industries include technology, finance, automotive, manufacturing, media & entertainment, aerospace, and gaming.  

For almost a decade, most recently through my role with Telarus, I’ve had the amazing opportunity to work closely with the U.S. Channel. In that time, I’ve seen triple-digit growth from supporting U.S. partners selling into Canada. When I posed the question to the U.S.-based trusted advisors and consultants – do any of your U.S. clients have offices or opportunities in Canada – the answer was yes. In Canada, the Channel infrastructure already exists to service this market, allowing us to blur the border for our partners – It’s that easy.” – Matt Heron, Vice President, International Sales at Telarus


Key Market for Innovation

Canada has a strong and proud culture of innovation, especially around science and technology. When it comes to emerging technologies like Artificial Intelligence (AI) and Machine Learning (ML), Canada continues to lead the charge in finding ways to leverage them for everything from commerce and manufacturing to sustainability, healthcare, and other types of scientific research. For example, the Canadian government has provided $355 million in grants to ScaleAI, an innovation supercluster focused on leveraging AI to build intelligent supply chains across numerous verticals. Strong investment is helping make Canada a leader in this area on the global stage.

Another example of how Canadian innovation stands out is the adoption of robotics. Canada’s federal government has invested $250 million in next-gen manufacturing capabilities, including advanced robotics, machine learning, and 3D printing — and the investments are paying off. In 2022, global robot density reached a high of 151 robots for every 10,000 employees. In Canada, that number was roughly 31 percent higher at 198 robots per 10,000 workers. These kinds of investments are contributing to the rapid growth of the robotics market in Canada. Statista predicts this sector of the Canadian economy to generate USD 1.38 billion in revenue by 2028.

From a U.S. Channel perspective, it’s important to remember that this innovation isn’t occurring in a silo. From a business standpoint, we very much live in a global village. The companies operating within these Canadian markets, especially American-based ones, have business needs that depend on cross-border and even global partnerships with trusted advisors and consultants. That’s a key opportunity for the U.S. Channel.

For US tech advisors looking to expand into new markets, Canada offers a wealth of possibilities, with its information and communications technology market expected to see strong double-digital growth at about 10% CAGR between now and 2027. If you’re completely new to the Canadian market, I recommend working with a partner who understands how to navigate the landscape.” – Emanuel Bertolin, Chief Revenue Officer, AppDirect.

Hotbed for Tech Talent

Canada is also a leader in attracting top tech talent with one of the most STEM-educated workforces in the world. Toronto, Vancouver, Montreal, and Ottawa rank among the top 10 cities for North America’s tech sector, comparable to several tech-focused U.S. cities, such as New York, Dallas/Ft. Worth and Seattle. In fact, Toronto alone added nearly 64,000 tech jobs over the last four years, the second-highest number of tech jobs across North American cities.

Vast market potential for opportunity-seeking U.S. Channel members

As noted earlier, American businesses have been expanding north of the border for years, attracted by the huge potential of the thriving Canadian market. According to Dun and Bradstreet, an impressive 59,000 American-based companies have already established offices or locations in Canada. However, the potential number of prospects for the U.S. Channel extends far beyond this, presenting an expansive, untapped market of businesses with pressing IT and connectivity needs.

Let’s look at the automotive industry, for example. In Canada, it is not just composed of the major vehicle manufacturers. Related businesses that automotive manufacturers rely on include:

– Advanced manufacturing companies that provide robotics and automation technologies

– Digitalization and industrial IoT companies that manufacture vehicle sensors and monitoring devices

– Automotive software developers

– Auto parts and suppliers

– EV-related businesses

– The natural resources sector that procures the raw materials needed for auto production

– Each of the companies within these different types of verticals will have their own needs for various ICT solutions, which the trusted advisors and consultants of the U.S. Channel are perfectly poised to fulfill with the right partnerships in Canada.

Canada: A Land of Booming Opportunity for the U.S. Channel

The idea is simple yet powerful. American companies and their expanding ecosystem of partners and suppliers will require vital connectivity (and a host of other services/solutions) as they grow their footprint within Canada. As these businesses continue to adopt applications leveraging AI, ML, Big Data, public/private clouds, and more, they will need a trusted advisor that can deliver consultative expertise and guide them to the solutions they require. That is where your opportunity for growth lies. Although forward-thinking U.S.-based consultants and trusted advisors have been shifting their focus northwards already, there is still an abundance of untapped opportunities that the U.S. Channel is perfectly positioned to capitalize on.

At BCE Global – USA, a Bell Canada company, we clearly see the wealth of opportunity that exists for the U.S. Channel. For those Channel members considering their Canadian opportunities, the trick lies in finding the right partner to drive their speed-to-market and help catalyze their growth. We have access to more than 180,000 miles of fiber spanning North America connecting 10 million businesses and homes. With access to 160 PoPs and data centers in Canada and the U.S., we can provide our partners with access to a highly resilient, extensive footprint that provides connectivity to key hyper scalers, cloud, and other data center providers.” – Ivan Mihaljevic, President at BCE Global – USA

For the U.S. Channel, expanding into the Canadian market is a smart investment and is going to be an optimal choice for growth in 2024 and beyond. By aligning its trajectory with that of the vast number of American businesses entering or expanding within Canada, the U.S. Channel will be in the perfect position to foster even more innovation and new business opportunities. It’s a snowball effect already heavily in the making and it’s one that you, as a member of the Channel, should ride. Think Canada. Think Growth.

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