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Two years ago Wayne Jang faced a challenge. Customers for the modular furniture he produces in his Richmond, BC, factory were pleased with the mid-range workstations, desks and bookcases he produced for them but they wanted more.
Could CWC Modular Industries think about meeting their needs for low end product as well, they asked. They wanted to go head on with chain operations such as Staples.
Mr. Jang looked West to China. He spent six months doing his research, visiting factory after factory in the province of Guangdon. He enlisted the help of friends and relatives living in Southern China. Finally he narrowed the field to three potential factories.
Today CWC is in the first stages of becoming an importer as well as a manufacturer. Product from China is shipped in containers to his recently expanded Richmond factory, inspected for quality and then shipped to customers. The plan, he says, is to start shipping directly to his distributors as soon as he is certain quality can be maintained.
CWC will continue producing high end, custom furniture in British Columbia plus any items that demand a fast turnaround. That market, however, is limited in its growth potential. Imports of much less expensive work stations have given new life to the company, he explains.
"I think they are going to add significantly to our company's growth," says Mr. Jang.
Wayne Jang is on the leading edge of a growing trend among Canadian businessmen, says Jean-René Halde, President and CEO of BDC.
"He realizes that whether a business is big or small, we all operate in an increasingly global marketplace," says Mr. Halde. "The focus has to be on maintaining that ability to compete."
While in past much of the focus among Canadian businesses has been on increasing productivity, that is but a single element in a well managed company, he continues.
"What is absolutely essential is that ability to compete," he says. "You often hear entrepreneurs say global competition has no impact on them, no relevance. That may be true today but what about tomorrow?"
''While all companies should continue to improve internal processes, increase efficiency and streamline management, they must also look outward," Mr. Halde says.
"If I had a single message for Canadian businesses it would be to lift your eyes towards the horizon," he says. "Understand that we can no longer afford to focus within our own boundaries and within the boundaries of North America."
Granted the United States is Canada's largest trading partner; 40% of Canada's GDP comes from North-South trade. But vast new opportunities are opening for Canadian companies, especially in Asia.
China – with nearly 1.5 billion people – is a prime example, says Mr. Halde. Today the Chinese personal and corporate savings rate equals 47% of that nation's GDP. The central government, however, has said its goal is to reduce that to 40%. The result will be an unprecedented demand for consumer goods.
India also affords unique opportunities as do the former Soviet Bloc nations. Canadian companies are finding both new markets and new sources of production in Latin America, Asia, the Mid-East and Europe.
"There are vast new markets opening up and terrific opportunities to reduce production and operating costs," says Mr. Halde. "The first step is to look around and identify potential opportunities. The next step is to investigate, to do research. BDC can help with that."
It can also provide the necessary financing. In Mr. Jang's case that meant expanding his Richmond factory to physically handle containers full of imports. It also meant initial financing of the import operation.
The result, however, is a new form of company, one that is a hybrid of manufacturer and importer, a company with a foot solidly in Canada and another in a major global marketplace.
Mr. Jang and CWC Modular is just one example of what Canadian companies can do to become international players.
"BDC has proven very forward looking," says Mr. Jang. "It was right there when we needed financing to expand into China. BDC's support is going to make a significant difference in our future."
Looking to the future is the essence of what BDC does, says Mr. Halde.
"Our focus and our mandate is to help create Canadian success stories. In past our nature was not to be international traders. That has to change," he says. BDC is committed to helping small and mid-market companies make the transition. We want all of them to be able to reap the benefits of becoming global companies."
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