March 1, 2010

Buy America deal good for some firms

Canadian small- to medium-sized enterprises (SMEs) can now capitalize on projects associated with the U.S. stimulus package after Canada’s recent exemption to the Buy America clause, says the head of UPS Canada.

The exemption means Canadian businesses can now bid on projects funded by the US$787 billion economic stimulus package in 38 states. U.S. Stimulus-related projects require everything from computer technology and infrastructure materials, to medical technology and construction.

“These projects are an extraordinary opportunity for Canada’s small- to medium-sized businesses to grow, broaden their horizons, and get a foot in the door of the biggest consumer market in the world,” said Mike Tierney, president, UPS Canada.

Tierney added that Canadian businesses still have a competitive advantage south of the border, noting that the Canadian dollar has not yet reached parity with the U.S. dollar, offering the U.S. government the possibility of realizing significant cost savings.

The exemption to the Stimulus Package opens the gate to Canadian SMEs looking to make strategic supply chain partnerships with U.S. counterparts through the import and export of raw materials or finished products.

“Many of these projects will rely heavily on natural resources that are abundant in Canada, including obvious resources like oil and natural gas, but also wood, copper, aluminium, and many others,” Tierney said.

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