Auto Service World
News   November 26, 2003   by Auto Service World

Interest In Canadian Market Strong, says Logistics Executive

The interest in the Canadian automotive aftermarket is strong due to continuing growth, says the president of a third party logistics organization.
"The interest in the Canadian market is strong," Robert Schacter, president of G.O.S.S. Industries International Inc. "I am speaking to people regularly and they are all looking at coming up across the border."
Schacter says that the strength of the Canadian dollar as compared to the U.S. dollar has heightened interest. "It is simply not as prohibitive as it once was," he says, but he adds that many companies are still unsure of how to effectively and efficiently enter a market that is new to them.
"We can make it that much easier for them to operate in Canada," he says. He says that succeeding in the Canadian market requires gaining the confidence of the marketplace.
"The Canadian customer base wants to see a Canadian inventory. The U.S. supplier says that if they get the business, then they’ll put the inventory in." Schacter says that this approach handicaps growth.
"They need to be committed and show the Canadian client base that they are committed. Putting inventory in shows a commitment on their part. Also, there is the issue of crossing the border. It is much easier when you are sending a truckload versus a skid load or less."
He says that this applies whether a company is looking at G.O.S.S. or another similar organization. "Overall, there is the belief among U.S. suppliers that Canada is an easier market to penetrate than Mexico or South America."

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