We were fortunate to have a long segment to discuss the week’s business news this past Saturday on the CBC News Network Weekend Business Panel (on live TV, you never know what the news morning might hold!).
Elmer Kim, Natasha Fatah, and I chatted about the following stories:
- Trade Tensions Between the US and China Heat Up. With the world’s two biggest economies enforcing $34 billion in tariffs on one another, where is the global economy heading? What’s next for Canada and companies in our country?
- Bombardier’s Latest Competitive Threat. As Boeing and Embraer announce a $4.75 billion joint venture to enhance production in the small jetliner market, what does this mean for Bombardier? Can the marketplace support both the C Series and E-Jet family?
With the newly enforced US/China tariffs expected to be only the beginning, it’s important for Canada to continue to stay the course on developing its global trade strategy. NAFTA talks have quietly continued, and with US and Chinese goods becoming less attractive cost-wise, Canadian companies have an opportunity to provide an alternate source of supply in some areas, particularly in terms of doing business with China. Canadian companies that seek to do so must ensure that they conduct targeted research to understand the opportunity, determine how to approach the market, and ensure that there is an appropriate implementation plan in place. Assuming that there are not any differences from a company’s current customers and line of business is usually a mistake. Advisors can be helpful, in terms of assisting companies with strategies to approach new markets efficiently and successfully.
In terms of the ongoing Bombardier and Boeing story, well managed companies understand who their current and potential competitors are, as well as with whom they might partner. Strategic partnerships position companies to achieve more than could be accomplished on their own, and both joint ventures (Bombardier/Airbus and Boeing/Embraer) are examples of that. Bombardier has the benefit of already being active in the marketplace with Airbus, providing an opportunity to maximize sales before the Boeing/Embraer deal is closed. What’s more, if both jets are truly what customers want, two providers could have the impact of building a bigger marketplace for their product.
As always, it’s great to be in the studio and to be able to share our thoughts on the week’s business news with CBC viewers. As I reach almost a year of having the privilege to do so, a special mention to the talented men and women who ensure that we are camera-ready; thank you!