Trade missions are focusing on natural connection points, to the benefit of regional exporters

In just one day at a Chicago trade mission, Nova Scotia businessman Shawn Levangie landed a contract to sell his Dartmouth-based Trail Blazer Products Ltd. lawn and garden gadgets in branches of a major United States retail chain. A matchmaker had arranged for Levangie to meet a buyer from Ace Hardware, which has 5,000 stores across the U.S. The Ace buyer told Levangie they wouldhave a deal as long as Trail Blazer could get sales representation. Levangie did that afternoon. “It worked out amazingly for us,” says Levangie. “Probably the majority of our business is the result of those shows. It’s an exciting distribution we’ve built, with Chicago as the hub.”  

Levangie now makes regular business trips to Chicago and sells millions of dollars’ worth of outdoor tools and lawn and garden items in big stores such as Walmart, Sam’s Club, and Menards. Through a referral received in Chicago, Trail Blazer is supplying 150 branches of Acklands-Grainger across Canada. “We flew all the way to Chicago for a branch two streets away to stock our products,” says Levangie. “It was all due to the efforts of the matchmaker. So much work is done ahead of time. I don’t think any one of us could do it alone.”

Luckily, businesspeople don’t have to do it alone. Trade missions are regularly run by Team Canada Atlantic (TCA), a partnership of the Atlantic Canada Opportunities Agency (ACOA), the federal government, industry bodies, and the Atlantic provinces. To date, TCA has organized 14 missions to U.S. cities, including Boston, Atlanta, New York, Washington, and Florida. In the last decade, TCA has been to Chicago four times, in 2004, 2005, 2006, and 2008. In total more than 500 Canadian companies have participated in 3,665 meetings with buyers, agents, and business owners. Matchmaking is handled by high-end companies such as Xomix and Market Access International Inc. The result: $41 million in sales.

Chantal Glass, the Canadian trade commissioner in Chicago, says trade shows raise Atlantic Canada’s profile and that Midwestern companies “are becoming more aware of the innovative technologies in Atlantic Canada” and of Atlantic ports such as Halifax, Saint John, and St. John’s. Boosting trade and links to the U.S. Midwest is desirable because Chicago is an international financial centre with a diversified economy, plus a major transportation and distribution site. Glass says the Consulate General prioritizes drug and software development, manufacturing, aerospace and defence, transportation, energy and clean technologies, medical instrumentation, renewable energy, and food production.

Participating companies are carefully selected by the Trade Commission’s regional offices and are briefed to help them target partners. At the 2008 event, a mission within the mission, called the Technology Partnering Initiative, produced 32 business meetings scheduled for seven Atlantic Canadian companies, and a partnership with the MIT Enterprise Forum of Chicago allowed all seven to pitch to 120 investors.

Mike Johnston, the president and CEO of Bedford-based TeamSpace, a software solutions company, presented at the MIT Forum and made many important contacts. “These events are very well-organized,” says Johnston. “I found Chicagoans open to new ideas. They are willing to make partnerships and put us in touch with other members of their networks.”

Nova Scotia entrepreneur Darren Gallop went to Chicago to conduct market research. He’s the founder of Sydney, N.S.-based Marcato Digital Solutions Inc., which produces web-based management solutions for musicians, managers, and cultural industries; his products will be used to manage the entertainment program at the 2011 Canada Winter Games, which Halifax is hosting. Gallop wanted to understand Chicago’s sophisticated high-tech sector, and he met with legal firm Wood Phillips, which specializes in IT law in the U.S.

John Fanning, an ACOA business development officer and seasoned mission organizer, says 2008 was a breakthrough event, which is good news considering he spent three months in Chicago preparing for the show (three earlier missions had been held in 2005). Fanning stressed that Atlantic Canada has a lot to offer Chicago businesspeople interested in investing in Atlantic Canada. Advantages include government tax incentives and research grants to help keep development costs down. The region also has a well-trained workforce; there are 17 universities in Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador.

The region also has an excellent communications and business infrastructure and a transportation network that offers easy access by rail and road to the Eastern Seaboard and Europe via the seaports. Plus, there’s a cultural similarity between Chicagoans and Atlantic Canadians: both are known for their friendliness. “I love the people of Chicago,” says Fanning.

Mike Johnston of Bedford, N.S.-based TeamSpace agrees the cultures mesh well. “We have a well-educated workforce with a sense of humour. Clients are happy to visit us,” he says, adding that Atlantic Canada is rich in IT companies such as TeamSpace that are busy working for people outside the region. “Our people are top tier,” he says. “In the last couple of years, we’ve been getting awards and recognition.”

Trail Blazer’s Shawn Levangie believes Chicagoans appreciate the excellence of Atlantic Canadian customer service. “Chicago is an aggressive place in terms of business but it’s the system that’s aggressive, not the person,” he says. “In Atlantic Canada we’re problem-solvers, and we have the opportunity to be attractive on price and still be profitable. There are many multinationals based in Chicago. I’d advise others to join the trade missions and make contacts.”