As a Canadian it appalls me to see our dollar being beaten up and hovering 30% less valuable than the greenback!
As a business owner I am subject to having to rethink my purchases of software, who and where I hire future resources, relooking at expansion ideas, even the disruption of my merger and acquisition plans as I must take into account the huge markup that now exists. I have to be prepared to cope with the notion of how currency fluctuations, hedging US and Canadian currencies and where the workforce comes from.
It got me thinking how interesting this must be to the millions of business owners, VPs and directors that are awaiting to make tough spending decisions on large transformation projects, IT deployments, or retaining consultants south of the border. They are now so much better positioned to be able to use this fiscal deviation to their advantage.
Some of our US partners still don’t necessarily follow movements in Canadian currency and aren’t aware of the potential advantages available to them if they shop north of the border. As Canadian business people we need to educate and get the message out – the skills, experience and knowledge are available with some very attractive fiscal benefits.
Perhaps in manufacturing with very long supply contracts it’s difficult to move quickly to take advantage of market fluctuations such as this. However, in the service industries it’s easier to respond and right now there’s a good chance to further some of your strategic initiatives at a lower cost than you’d maybe planned.
If you’re reading this from the US then my message is that all it takes is to scope the web for potential Canadian companies that do the work that is required by your organization and invite them to the dance. Even if you don’t choose them, you will be able to keep your preferred vendors honest, and who knows you may actually see such a difference that the choice may be an easy one on who you would go with.
The cost of travelling from a major Canadian city or coming from all over the US is pretty equitable, there’s no risk of hidden expenses from that perspective. If the skilled labour exists locally, then it may or may not make a lot of sense to look north. But all it really takes is a second opinion on your required needs.
Enjoy your competitive advantage and here is praying as a Canadian I get to enjoy that opportunity in the not so distant future.