Coopers & Lybrand's "Trendsetter Barometer" interviewed CEOs
of 410 product and service companies identified in the media as the fastest
growing U.S. businesses over the last five years. The surveyed companies
range in size from approximately $1 million to $50 million in revenue/sales.
NEW YORK CITY, September 27, 1994 -- For growth companies, the North American Free Trade Agreement has initially meant export opportunities in Canada and Mexico, not relocating jobs to these countries, as some opposed to the agreement had anticipated. These are the results of the most recent "Trendsetter Barometer" survey issued by Coopers & Lybrand L.L.P. today.
"Trendsetter" found that, of the 21 percent of America's growth companies that have become more active in Canada and Mexico since Congressional approval of the agreement last year, nearly all (20 percent) are exporting goods and services. This group far outnumbers the only 5 percent that have set up manufacturing facilities and joint production facilities in the two countries, and the 4 percent that are importing more goods and services from either nation.
"So far, fears of jobs being lost to Mexico and Canada are unfounded, at least among the nation's fastest growing firms," says George Auxier, national director of Entrepreneurial Advisory Services for Coopers & Lybrand, the international professional services firm.
Since the passage of NAFTA, 13 percent of "Trendsetter" companies have increased their exports to Mexico, and, among those, most (9 percent) have found it a strictly one-way street. Only 3 percent have also set up production there and only 1 percent are also importing more from Mexico. Most of those that import are involved in a two-way exchange. Similarly, 13 percent of "Trendsetter" companies have increased their exports to Canada, and, among those, 8 percent have not increased their imports in tandem. Only 2 percent have also set up production there, and only 3 percent are also importing more from Canada.
"As yet no tidal wave of American jobs has swept across the border, as some had speculated," adds Auxier. "On the contrary, it appears that America's growth companies are currently viewing opportunities in the two countries purely as territorial expansion."
"Trendsetter" companies that are now more active in Canada or Mexico expect substantially higher growth rates over the next 12 months than their peers that have not recently stepped up their activity in these two markets: 32.9 percent, or nearly 30 percent higher than their less peripatetic counterparts.
"It is noteworthy that only those firms that have increased their marketing of goods and services to the two countries expect accelerated growth," notes Auxier. "Those that have established joint production ventures may be looking for long-term advantages, since they expect only average growth over the next 12 months."
"Trendsetter" companies that recently expanded their activities in these markets are planning more hires than those that did not. More than 8 in 10 (84 percent) of the growth firms that have become more active in Canada and Mexico since NAFTA look to add employees over the next 12 months, with a composite increase of 19.2 percent in workforce. Among those that did not become more active, a smaller majority (73 percent) plan to add a composite 14.5 percent to their workforce, or 32 percent less, in the upcoming 12 months.
Surprisingly, the most active "Trendsetter" companies were not necessarily the largest: although a greater proportion of firms with 100 employees or more increased their activities in Canada or Mexico, the average firm was below the norm in size, with 98 employees, compared to 164 in all other growth firms.
Product sector growth companies were more likely to report increased activity in NAFTA countries: 58 percent compared to 42 percent among service firms. Among product firms, processing, manufacturing and transportation companies were most active; among service firms, finance and media companies led the way.
Coopers & Lybrand's "Trendsetter Barometer" is developed and compiled by the firm's Entrepreneurial Advisory Services group with assistance from the opinion economic research firm of Business Science International. At each Coopers & Lybrand office, an Entrepreneurial Advisory Services team is available to serve the needs of growing and midsize companies.
One of the world's leading professional firms, Coopers & Lybrand L.L.P. provides services for enterprises in a wide range of industries. The firm offers its clients the expertise of more than 16,000 professionals and staff in offices located in 100 U.S.cities and, through the member firms of Coopers & Lybrand (International), more than 66,000 people in 125 countries worldwide.
COOPERS & LYBRAND L.L.P.
Extraído de: http://www.tradecompass.com/news/trends/108.html