Serving Canadian Business Abroad

1
Serving Canadian Business Abroad

• Brian Parrott
• Seattle
• September, 2003

2
From Seattle we serve
SEATTLE
3
Our Region

• 11.6 million people.
• I-5 corridor from Bellingham to Eugene - 6.5
  million people.
• Relatively young population.

4
More Statistics

• Robust household Incomes.
• 6.2 million jobs in region.
• High unemployment rates.
• More than 34 of population has some college
  education
• 4.7 million homes.

5
Home To

• 3 of top ten wealthiest Americans
• Fortune 500 Companies

6
Market Attributes

• Manageable Market Size
• Over 11 million consumers
• 300,000 Canadians
• Proximity and affinity to Canada
• West Coast lifestyles
• Regional Distribution Centres
• Innovative Businesses

7
Export Opportunities
Aerospace
Clean Energy
Agri-Foods Wine
Value Added Building Products
Life Sciences
ICT
8
Agri-Food SectorOverview

• 50 Billion Market
• Major Distribution points for Pacific Northwest
• Seattle (Western Wa.)
• Portland (including Northern California)
• Spokane (Eastern Wa and Montana)
• Headquarters to Major Industry Players Costco
  and Albertsons
• 6 of exports to region are Agri-food.

9
Major Players

• Revenue
• Albertsons (Boise, ID) 38 B
• Costco (Issaquah, WA) 38 B
• Winco (Boise, ID) 1.6 B
• Haggen (Bellingham, Wa) .6 B
• Brown Cole (Bellingham, Wa) .3 B
• C K Market (Brookings, Or) .28 B
• Tidymans (Spokane, Wa) .28 B

10
Agri-Food SectorWhats Happening?

• Consolidations/Amalgamations.
• Sector upsizing/downsizing.
• New Interest in Value.
• Market Trends Anything goes!
• Healthy - Decadent
• Club packs Single serving
• Convenience Slow Foods

11
Shopping for Health

• 52 look at nutrition facts on the labels
• 26 purchase a food item based on label
• 34 decide against a purchase based on label
• 42 have purchased organic food to improve their
  health
• 12 understand GMOs
• 60 say biotech is ok

12
Agri-Food Where Are the Opportunities?

• Retail
• Institutional
• Ingredient

• Complimentary partnerships
• Direct (internet, catalog, direct mail)
• Offshore (pass-through)

13

Best Opportunities - Retail (High-end, Specialty
Natural)

• QFC 85 Stores
• Larrys Markets 6 Stores
• Wild Oats 7 Stores
• PCC 7 Stores
• Thriftways Indep
• Whole Foods 1 Store

14
Upcoming Events
Oct 23 Export Preparation Seminar - Vancouver Oct
24 Export Preparation Seminar - Calgary Nov
7-9 Northwest Nutritional Foods Show -
Seattle Nov 20-22 Fish Expo Seattle Jan
10-13 Portland Gift Show Jan 18-20 Winter Fancy
Food Show - San Francisco Jan 24-28 Seattle Gift
Show Apr 18-20 Northwest Foodservice Show -
Portland
15
Building ProductsMarket Overview

• Robust housing market continues.
• Year over year growth in building permits in both
  Washington and Oregon.
• NAHB Housing Market Index highest in 2 years.
• Canadian Building Product exports about 7 of
  total.

16
Single Family Building Permits 2002

• Washington 40,200
• Oregon 22,186
• Idaho 13,488
• Alaska 3,003
• Total 78,874

17
Canadian Building Productsa Northwest tradition

• Easy access to NW Markets
• Canadian products are readily accepted
• Similar construction techniques
• Canadian quality is excellent
• A compelling story to tell

18
Upcoming EventsBuilding Products

• October 2-5, 2003 5th Annual Seattle Home Show.
  

19
Aerospace IndustryMarket Overview

• Home to Boeing Commercial - an economic driver
  and largest exporter from region.
• 150 companies in sector.
• Canadian presence already known
• 1.5 billion in sales to Boeing
• 200 companies already doing business with Boeing

20
Aerospace IndustryOpportunities

• Continued good growth prospects for 737s
• 7E7 New design for more efficient aircraft
• about 12 immediate partners
• location assembly only
• Unmanned Vehicle RD

21
Life Sciences Industry Market Overview

• 190 biotech medical technology companies in
  Washington state alone.
• Seattle area ranks 9th in the US.
• Cutting edge research from state universities and
  nationally recognized research centers is
  foundation basis for ½ of companies.

22
Life Sciences Industry Market Overview

• Recognized expertise in
• systems biology,
• bioinfomatics,
• genomics,
• cancer ultrasound
• technologies

23
Current R D Effort

• therapeutic products (51),
• diagnostics (26),
• other areas of ag,
• contract research,
• bioinfomatics, genomics

24
Opportunities - Bio

• Opportunities for research collaborations, tech
  transfer, access to funding, conducting clinical
  trials, contract research manufacturing
• Washington Biotech Biomedical Assoc.
  www.wabio.com

25
ICT in Pacific Northwest Market Overview

• 50 billion/annum in revenues.
• 90,000 employees.
• 6000 IT related firms in Washington alone
• Microsoft, Amazon.com, Starbucks, RealNetworks,
  Intel, HP, ATT Wireless, Boeing, Planar,
  Infocus.

26
ICT in Pacific Northwest Market Overview

• IT is again an engine for job growth and
  expansion.
• Microsoft alone plans to hire 3,000 people in the
  next 12-18 months.

27
ICT in Pacific Northwest Market Info

• Recent market studies include
• analysis and overview of WA specialties in
  wireless.
• a gaming study with contact information for 50
  gaming related companies in Seattle

28
ICT in Pacific Northwest Opportunities

• Gaming
• Wireless applications
• Point" solutions - (software apps that solve a
  specific smaller network problem that lead to
  immediate ROI)
• Biometrics
• Partnering with MSFT

29
Upcoming Events Technology

• Sept. 9 Tech Futures Conference Seattle (booth
  hosted by the Canadian Wireless Telecom Group).
• Sept. 25-26 Digital Government Technology
  Conference - Seattle.
• Nov. 17 West Coast Security Forum - Vancouver
  (featuring speakers from Port of Seattle and Port
  of Tacoma).

30
Upcoming Events Technology

• February 2004 Pacific Northwest Aerospace
  Association annual meeting and proposed Canadian
  mission.
• March 2004 3rd annual Invest Northwest
  Conference - Seattle - 65 companies from WA, OR,
  BC AB

31
Investment

• Active Venture Capital Market in Seattle/Portland
• Focus on Biotechnology, IT and increasingly Clean
  Energy
• Competitive process requires
• Solid Business Plan
• Innovative ideas/products
• Solid management/experience
• Canadian partners
• Relationships

32
Market Access

• Heart of Market 2 hours from Pacific Highway
  Border Crossing (5th largest on Canada-US border)
• NAFTA allows easy access for goods.
• Security Issues being worked out.
• Customs Brokers invaluable partner

33
Exporting to Pacific Northwest Conclusions

• Market size that of 1/3 all of Canada
• Within 2-3 hours drive
• Competitive but rewarding
• Be persistent and aggressive, but patient
• Find Niche
• Use Consulate

34
Our Team

• Brian Parrott, Senior Trade Commissioner
• Business Development Section Manager
• Clean Energy Technologies, Oil and Gas services
• Allan Edwards, Investment Officer
• Promoting investment into Canada
• Martine Moreau, Trade Commissioner
• Aerospace, transportation, professional services,
  Export USA Program

35

• Doug McCracken
• Agriculture, fish, food and wine products
• Jane Shaw
• Biotech, life sciences, environmental
  technologies, apparel, native arts crafts
• Jim Sheehan
• Building products/home hardware, furniture, govt.
  procurement
• Brian Vescovi
• Information technologies, telecoms, security

36
How to Contact Us

• Canadian Consulate General Seattle, Washington
• 412 Plaza 600 Building
• Seattle, WA 98101-1286
• Telephone [phone]
• Fax [phone]
• Website www.seattle.gc.ca