As an American, I almost find it comical that the U.S. is becoming a low cost country exporter of choice, especially to our socialist neighbor to the north, Canada. But according to World Trade Magazine, that's exactly what's happening at the moment. A recent article suggests that the U.S. is a midst of a transition from "buying to selling" from a global market perspective and the most important relationship in this regard is Canada. According to the article, "Already one of our prime trading partners and largest export market (some two million U.S. jobs are tied to exports to Canada), the declining U.S. dollar is making U.S. products something of a 'blue light' special north of the border."
So what industries will benefit most from the weak dollar? World Trade quotes the U.S. Commercial Services country profile which predicts that "the optimal prospect sectors are automotive parts and services, electrical power systems, building products, plastics materials, oil and gas field machinery, computers and software, medical equipment, agricultural machinery and equipment, water resources equipment and services, security equipment and franchising." So all you Canadians reading Spend Matters, you better get your total cost models ready to decide when it's best to pull the trigger on your global sourcing partner next door.
- Jason Busch