Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.
While U.S. exporters will find opportunities across best prospect sectors outlined in this guide, U.S. businesses are finding new business opportunities in several of Canada’s key industrial, governmental, and consumer sectors.
Canada is one of the world’s largest aerospace markets with US$17 billion in revenues in 2020 supporting 207,000 jobs. Canada ranks first worldwide for civil flight simulator production, fourth in civil aircraft production and third in civil engine production. Montréal, Québec is the world’s third largest aerospace hub after Seattle, Washington and Toulouse, France.
Canada is the largest destination for U.S. exports of high-value agricultural products, with a 23% market share in 2021 and a value of US$18 billion. Consumer-oriented agricultural products are foods typically sold directly in supermarkets and used in restaurants. These high-value exports support over 130,000 jobs in the United States, and many of the suppliers are small and medium-sized businesses.
Canada is the second largest automotive market in North America, highly integrated with the United States and Mexico through the United States-Mexico-Canada Agreement (USMCA). Imports represent approximately three quarters of the new vehicles market. Most global vehicle manufacturers are present in Canada including five of them with local assembling lines: Ford, General Motors, Stellantis, Toyota, and Honda. In addition to auto sales, the automotive aftermarket annual retail value was relatively stable in 2021 and is estimated by the industry at over US$19 billion.
The Canadian defense industry contributed close to US$7.12 billion in GDP and 78,000 jobs across Canada’s economy in 2020. Of the economic contribution reported, US$5.26 billion is directly attributed to the defense industry and value chain. In general, the total economic contribution by the sector to Canada’s economy between 2018 and 2020, increased by close to US$1.7 billion in GDP, and 13,900 jobs.
Canada is one of the leading countries globally utilizing renewable energy: hydro, wind, solar, biomass, along with significant developments in geothermal and marine energy. Renewable energy represented approximately 66% of total electricity generation in 2021. Canada ranks as the United States’ second leading renewable energy market, after Mexico.
Canada has a very strong homegrown technology sector that is expected to grow through 2025. The Canadian ICT sector is highly trade dependent, importing US$37.5 billion in goods and exporting US$17.7 billion around the world in 2021. The United States is the second largest supplier of ICT goods to Canada.
Public-Private Partnership opportunities exist within Canada’s public infrastructure and government projects. In 2016, the Government of Canada unveiled the Investing in Canada Plan to invest over US$139B in key infrastructure sectors through 2028. This plan is underway and investments in infrastructure projects are expected to support the growth of Canada’s construction industry. As of mid-2021, over 73,000 projects, with combined investments of over US$76B, have been approved for communities across the country.
In consumer product sectors, Canada’s wide ethnic diversity and high level of consumer disposable income provide broad food and consumer goods selling opportunities. Bridging all the country’s industrial, governmental, and consumer buying channels is eCommerce, a large opportunity for U.S. exporters who seek to access the Canadian market. For example, in 2021 there were over 27 million eCommerce users in Canada, and it is estimated that retail eCommerce sales will total US$40.3 billion by 2025.
Mechanisms for facilitating trade at the U.S.–Canada border include pre-inspections and associated technological advances that streamline regulatory processing making “just-in-time” delivery of goods and services more efficient and strengthening cross-border supply chains. This provides enhanced opportunities for U.S. firms seeking to enter the Canadian aerospace and automotive sector supply chains.