TORONTO—Despite ongoing uncertainty in global markets, mid-sized companies in the Americas are determined to grow their overseas presence over the next five years, according to a report.
The KPMG study found among mid-sized companies that are active abroad, 58 per cent plan to expand their global presence, while more another 68 per cent expect to see increased revenues from foreign operations over the next five years.
“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,” KPMG Canadian managing partner Dennis Fortnum said in a statement. “Emerging markets in Asia, South America and the Middle East are appealing because of their low-cost sourcing, high-growth sales and expansion opportunities.”
The report also found six out of ten companies surveyed said their revenues from foreign sources had increased between 2009 and 2011.
On average, respondents expect foreign revenue will grow 34 per cent over the next five years, with foreign partnerships the preferred route of expansion (84 per cent).
Although the U.S. remains a key avenue for growth, more private Canadian companies are choosing to diversify internationally to fuel growth now and not wait for the U.S. economy to rebound.