2009: survival of the fittest
Operating in the eye of the worst storm to hit the Canadian and global economy since the Great Depression, the Canadian ICT industry fared well with three of its four industry sectors experiencing positive growth in 2009. Although combined revenues for the Top 250 fell approximately six per cent this year to $71.32 billion, success stories can be found throughout the listing, as 46 per cent of Top 250 companies generated double-digit expansion in 2009. With the economic outlook continuing to improve and cautious optimism abounding, companies in the Canadian ICT industry must begin to invest in their core activities and shift their focus from cost cutting to calculated spending. Canada’s ICT industry will bounce back, and the companies operating in it must be ready for the wave.
Moving forward: a call for action
In early 2009, with the economic storm firmly overhead, the Canadian government announced a sophisticated stimulus package, primarily focused on the protection and creation of jobs during the downturn. While some spend was allocated to expanding broadband Internet access to unserved Canadian communities, for the most part Canada’s ICT industry was left to fend for itself.
The past 12 months have illustrated that no industry is immune to difficult economic conditions, not even Canada’s rapidly expanding ICT industry, which grew by more than 40 per cent during the past decade.
Executives from leading ICT companies met with senior government officials in Ottawa in mid-2009 to assess the major challenges facing Canada and its digital economy. This was an admirable step in the right direction, with several pressing issues addressed throughout the event. However, immediate action must be taken now to prevent Canada’s ICT industry from falling further behind other developed nations.
The Canadian ICT industry is not and never has been in need of a bailout package, but more resources must be allocated to industries that improve the overall quality of life for Canadians and enhance this country’s ability to compete in what is now, more than ever, a global playing field. Canada’s ICT industry is reshaping this country’s healthcare system with the rollout of electronic health records across the majority of its provinces. It is innovating technology that allows businesses and individuals to stay connected, regardless of geographic location. Further, the Canadian ICT industry employs hundreds of thousands of Canadians in knowledge-intensive positions, contributing significantly to the overall well-being of this country’s economy. For too long, Canada’s ICT industry has fallen under the radar. It is time for both government and the industry’s leaders to support a promising sector that undoubtedly improves and enables the day-to-day lives of Canadians from coast to coast.
Mergers and Acquisitions PDF (1MB)
Branham300 Table of Contents - 2010
