KPMG report outlines growth strategies and new market opportunities
TORONTO, Ont. – The current economic environment provides opportunities for companies to thrive. According to a recently released KPMG report, Strategic Growth and New Markets, the top strategies for growth, based on a survey of manufacturers, include process improvements, investment in R&D and technology, and global expansion.
KPMG, in partnership with CLB Media, surveyed 175 private and public
companies and engaged in dialogue with senior executives from Canadian
manufacturing companies to discuss their current growth plans. The
resulting report outlines these executives’ views on growth strategies
and challenges, together with KPMG analysis and comment.
Nearly half (45 percent) of the companies surveyed identified process
and efficiency improvements as their most important growth strategy,
while more than 40 percent said that new product development and
technology was their main path to growth.
"Investing in R&D today can generate cash flow, and keeping up with
technology and processes will be critical when the economy turns
around," the report explains. "Now is not the time to shut down R&D
spending and fall behind your competition."
The survey also found that the importation of goods and services from
non-Canadian vendors and the use of non-Canadian vendors or
distributors were the main international growth strategies being
pursued. However, nearly half of the respondents indicated that they
were disappointed with their global expansion experience.
KPMG’s advice: "Companies with a foreign expansion bug do not
necessarily have to commit wholeheartedly to a market by setting up
foreign corporations…First, determine how a foreign market might help
your strategy, and then plan your approach…A balance between foreign
and domestic supplies for key materials can help ensure your operations
The report concluded that by revamping processes and cost structures,
managing cash costs and enhancing the strength of balance sheets,
companies can exploit growth opportunities.
To access the white paper, click here.