EN - Wins and challenges Exporter perspectives

Wins and challenges Exporter perspectives

Posted by The CCC Team on September 15, 2018 at 11:39 AM

Each year we survey our Canadian exporter customers to learn more about their needs and challenges in pursuing contract opportunities with foreign governments. Here’s what they told us, and how CCC services help navigate some of the main obstacles to export success.

Competition is steep

More than half (57%) of the exporters we surveyed said price competitiveness and international competition were challenges for them — with 25% ranking it their top challenge overall. Fortunately, price isn’t the only point of differentiation you have to work with, and CCC’s government to government (G2G) contracting model provides other ways to make your offer stand out. Eighty-six percent of exporters surveyed said CCC’s ability to provide assurance of contract delivery was one of the top advantages in this respect. Further, 73% said the accelerated time to contract through CCC’s sole-sourcing capability was an important competitive differentiator.

Decisionmakers can be hard to access

The second most-cited challenge (52%) for exporters was access to procurement decisionmakers in foreign governments — ranked highest by a full 22% of companies we talked to. With extensive relationships around the world and a long and growing list of memoranda of understanding (MOUs), CCC can help overcome this hurdle as well. More than three-quarters (77%) of clients surveyed said they valued CCC’s ability to raise their profile with senior decisionmakers. Seventy percent said the Canada brand helped boost their credibility, while 71% said partnering with government improved their access to high-level government officials.

Mastering local procurement practices and dealing with risk can be daunting

Learning the market is challenging for exporters generally. The complexities of government procurement can make it even harder, straddling public-sector and commercial considerations. Add to this political and business risks that can arise in foreign markets, and exporters can begin to feel quite vulnerable. Forty-six percent of companies we surveyed cited local procurement practices and 45% cited risks associated with the political or business climate as challenging for them. Again, CCC’s G2G contracting approach offers some decisive advantages: 71% of exporters said they valued CCC’s ability to negotiate contracts that advanced their interests and 79% valued the reduced contract and payment risk that comes from having CCC serve as an intermediary.

Credit and financing can be barriers

Capital-intensive projects such as those related to infrastructure or clean technology deployment often demand access to credit and financing — to ensure healthy cash flows and capacity to deliver over the life of the contract. Thirty-nine percent of exporters agreed this was a challenge for them, with 13% ranking it topmost. While CCC doesn’t provide financing, our involvement reduces the overall project risk, making it more appealing for lenders and financiers to get involved. We help build that financing and/or credit into the project package to put the strongest possible offer forward, often working with our partners at Canada’s export credit agency, Export Development Canada.

Do any of these challenges sound familiar? We can help. Contact CCC at 1-800-748-8191, or email info@ccc.ca.

Tags: Exporter Challenges



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