A recent report by Atlantic Provinces Economic Council, the council urged companies to use the current slowdown in economic activity to take stock, align to global change and seek the opportunities that come with it. And at Elevate we are already seeing these new opportunities.
In May, Atlantic exports dropped 50 per cent year over year and demand has since been recovering. By August, exports had recovered half their losses. The sudden shock to the global supply chain has altered government and individual company thinking and this provides new opportunities in global markets. Over reliance on a small group of countries has exposed fragilities that were either ignored or not thought of. Today we know them all too well and the after effects are being felt. Protectionism and now lower prices and demand.
Fred Bergman, senior policy analyst at APEC, highlights the impact on global value chains and is projecting a drop in spending this year. To counterbalance this, the report urges companies to increase their investment in developing e-commerce and expanding its digital capabilities to support the region in its recovery.
International exports in the region were worth $26 billion in 2019, supporting 118,000 jobs and 29% of the region's GDP. Bergman also calls for greater diversification in the countries the region exports to. This has been getting better over the years, moving away from the US to other countries, but there is more to do. Latin America, Europe and parts of Africa and Asia present good opportunities.
Speak to our Atlantic division at Elevate for more information, advice and counsel.