Category Archives: canadian

Canadian companies spending in 2014

 

Profit-Blog

 

 

 

Canadian companies spending for 2014 …as projected US economy growth will provide optimism. Have we heard this before?? In 2011, 2012 & 2013 similar projections of the US growing and recovery is near??

Private Canadian companies have hoards of stashed capital (5.7 trillion statistic via CIBC), yet uncertainty plagues their decisions and we currently see in Canada…growing workforce in “part-time”. Net employment change data announced every month reveals similar labour results to our neighbouring nation the US. Less full-time work created, more part-time and a revelation increasing “startup” ventures.

If we are to see Canadian companies opening their pocket books, this will happen solely because our international trade i.e. Europe, Asian, Latin & South American deals are starting to bring the “fruits of prosperity”. Presently, 80% of trade internationally is solely with the US.

Europe, Asia, Latin & South America contribute to a very small amount. Since 2008, our Canadian economic policy should have changed and diversified our trading portfolio…less dependant on US …more on other nations. As a nation, our strategy is late in the game and to see progression trade deals usually benefit within 5 -10 years. Can the Canadian economy sustain stagnation as we currently see and be patient for our neighbouring US to rebound? The US is creating a “black hole” for it’s current debt, US debt limit increased yet more to come in Feb 2014?? Optimism by other nations in the world ..mainly BRICS nations are losing confidence in the US monetary policy. Newly appointed FED chairman “Yellenator” is “status quo” for US. Nothing will change, “digital printing” press will continue…long term US currency heading for disaster.

Canadian companies have an opportunity to take the lead, be innovative and be the leader instead of the follower..as we have for so many years. I have always stated, in order for the Canadian economy to grow…it is not our government’s responsibility to inject growth. It is our entrepreneurial private companies to “charge ahead” and invest, purchase international companies to assist in their growth and evolve. Evolution is part of humanity and part of our thinking process…where are we Canadian companies in this stage of the game???