Seminar on impact of China on Canadian manufacturing held in Montreal
Montreal, QC -- Tenaquip, a Montreal-based industrial equipment and supplies distributor, joined with the Ivey Busi...
Montreal, QC — Tenaquip, a Montreal-based industrial equipment and supplies distributor, joined with the Ivey Business School Alumni Association, London, Ont., to host a seminar at the St. James club May 18, 2004, on "The Impact of Chinese Manufacturing on the Future of Canadian Manufacturing."
Speaker Paul Beamish, director of the Ivey’s Asian Management Institute and a leading authority on the subject, reviewed China’s position as the world’s lowest cost manufacturer in many industries and the implications for Canadian manufacturing.
The presentation explored the Canadian business sectors most likely to be affected by this growing trend while also highlighting the benefits to Canadian companies of effective China sourcing strategies.
China is the world’s fastest growing economy, with a rapidly growing manufacturing sector that positions it as a major player in global supply chains. Tenaquip, a distributor of maintenance, repair, safety and operations supplies, is one of the many Canadian companies to source certain product lines directly from Chinese manufacturers and, in so doing, has registered increases in sales volume and market share.
One extremely competitive area of its industrial supplies business, working gloves, has been especially successful for Tenaquip. Since sourcing in China, the company has been able to pass along significant cost reductions of up to 25% to customers, securing annual sales growths of 50% for the past five years in that particular product category, while adhering to the highest product standards.
According to Tenaquip president Ken Reed, quality is maintained regardless of origin, with products from Chinese manufacturers as from all other suppliers undergoing the company’s rigorous safety and quality control process.
"Our mission is to provide customers with the quality products they have come to expect from Tenaquip, be they manufactured in Asia, Europe or North America," he said. Quality assurance also explains the company’s focus on buying directly at the source, and only from those manufacturers whose capabilities ensure strict compliance with product specifications.
The Richard Ivey School of Business at The University of Western Ontario (www.ivey.ca) offers full-time undergraduate (HBA) and graduate degree programs (MBA and PhD), Executive MBA programs and programs in executive development and entrepreneurship. Ivey has campuses in Mississauga, Toronto and London (Ontario), and in Hong Kong, giving the school a unique perspective on China.
Tenaquip was founded in 1968 and now employs over 260 people, operating out of more than 250,000 sq ft of offices, warehouses and showrooms in Montreal, Toronto, Ottawa, Kingston, Cornwall, Belleville, Brantford and Cambridge. It distributes over 110,000 brand-name maintenance, repair, safety and operations products.