I have been working with Canadian companies looking to expand into the U.S. market for over 11 years. Many of the companies I work with are manufacturers or warehouse/distribution operations in the Southern Ontario area. They tend to be small to medium size companies that have some percentage of U.S. sales and/or are purchasing U.S. based raw materials.
Though each has their own needs and plans for expansion, they all see the U.S. as an opportunity for growth. Here are just a few of the common reasons why Canadian companies expand to the U.S.
- Expand Market
Gain access to a market 10 times larger than the Canadian market
- Drive Sales
Have a “Made in the U.S.” label and be branded as an “American” company
- Win Contracts
Compete for lucrative government and military contracts
- Reduce Bridge Costs
Remove or reduce costs and delays associated with international bridge crossings, duties, etc. for Canadian products going to U.S. customers
- Reduce Shipping Costs
Remove or reduce costs and delays associated with shipping raw materials from U.S. suppliers to Canadian operations
- Mitigate Liability
Reduce the risk of U.S. based lawsuits and tax liabilities to the Canadian company
- Lower overall costs
Reduce hydropower costs for lower operating costs
When a Canadian company has determined U.S. expansion is the best next step for their business, Buffalo Niagara is the perfect landing spot.
Buffalo Niagara’s proximity to the border allows business owners to manage both operations, hire a similar workforce, lower real estate and hydropower costs, and engage with the region’s vast network of cross-border experts.
Each company expands their business in slightly different ways. Some set up a U.S. address only, some start with a small sales office or distribution operation, and some set up full-blown manufacturing operations. We have the resources to help you understand what is involved with an U.S. expansion and resources to help you identify the right location and workforce.
Check out our list of Canadian companies that have expanded their business into Buffalo Niagara and are now part of the business community. You may find some familiar names but also notice that each expansion was unique, varying is type and size.