Despite a global downturn in outbound FDI from the US, big businesses still see Canada as a key investment market
According to new research from TMF Group, in association with Forbes Insights, 50% of US-based multinationals still view Canada and its neighbours as central to their corporate investment and growth plans.
The study, 'Venture Further: what drives international expansion and investment by US businesses?', canvassed the views of 250 US-based C-Suite Executives to explore the motivations and challenges of US-headquartered multinationals in taking their organization into a new international market. Respondents were drawn from a wide selection of industries and from organizations with annual revenues ranging in size from $250 million to over $5 billion. Respondents were asked into what regions their organizations had invested in the last two years, as well as where they planned to invest in 2017/18.
Key findings included:
Despite global FDI downturn, half of US-based multinationals plan to maintain cross-border investment to Canada (and its neighbors) over the next two years 1 in 4 investors are looking for new talent or sources of capital 1 in 3 stress the importance of thorough research and local market knowledge Commenting on the findings Jason Gerlis, Regional Director (North America) at TMF Group, said: "Despite the downturn in global FDI across all markets, it's encouraging that US investors are still looking to Canada and its neighbours to achieve their growth ambitions."
He continued: "While there is still some uncertainty arising from talks of import taxation potentially being levied by the Trump administration on Canadian manufactured goods, particularly in the automotive sector, Forbes' Magazine has still ranked Canada as #10 it its global 'Best Countries for Business 2017' and #1 for business in the Americas.
"Indeed, the World Economic Forum has consistently declared Canada's banking system to be one of the most stable in...