More than half of mid-sized companies (58%) plan to expand their global presence in the next five years, finds a KPMG survey.
Further, 68% expect to see increased revenues from foreign operations during this time.
“With the value of exports to the U.S. softening and the wavering U.S. market, mid-sized Canadian companies are looking elsewhere for potential growth opportunities,” says Dennis Fortnum, Canadian managing partner, KPMG Enterprise.
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He adds, “Emerging markets in Asia, South America and the Middle East are appealing because of their low-cost sourcing, high-growth sales and expansion opportunities.”
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The survey also found:
- Six out of ten companies said their revenues from foreign sources had increased between 2009 and 2011;
- Respondents expect foreign revenue will grow 34% over the next five years;
- 84% say foreign partnerships are the preferred route of expansion;
- More private Canadian companies are choosing to diversify internationally to fuel growth now, instead of waiting for the U.S. economy to rebound.