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Cambridge, Mass. -- Online business trade in Canada will reach $272 billion (all figures in Canadian dollars) in 20...


Cambridge, Mass. — Online business trade in Canada will reach $272 billion (all figures in Canadian dollars) in 2005, representing 18 per cent of all B2B transactions, according to a report from Forrester Research, Inc., Cambridge, Mass. The report predicts that $272 billion of the total $1.54 trillion in B2B trade conducted in Canada will be transacted online in 2005. On a provincial basis, Ontario and Quebec will emerge as online leaders.

“Although only 16 per cent of Canadian companies have a clear B2B strategy, they will increasingly recognize the benefits of the Net and come to depend on it to plan, source, distribute, and sell product over the next five years,” said James Sharp, a Toronto-based analyst for Forrester.

Canadian online business trade growth will vary across industries, dominated by automotive and petrochemicals. Due to tight links with the U.S. auto industry, Canada’s automotive supply chain will sell $91 billion online, with petrochemicals generating $46 billion. By 2005, 40 per cent of Canadian computing and electronics trade will go online, followed by maintenance, repair, and operations (MRO) supply chains, which will account for 24% of trade in paper and office products. Shipping and warehousing firms will help drive $13 billion in online trade by 2005, while food and agriculture face slow adoption with only $12 billion.

“By 2005, transacting business online will feel as natural as picking up the phone to call a supplier or hopping into a cab to visit a customer,” said Stuart D. Woodring, vice-president, research for emerging internet economies at Forrester.

Additional information can be found at www.forrester.com.