International Business, Finance and Credit

Globalization of the Supply Chain

Wed, 01 Sep 2010 12:20:03 +0000

As total cost continues to grow in importance throughout the supply chain, we are noticing an increasingly global supply chain, impacting even Tier 2/Tier 3 suppliers. Companies are now leveraging the global supply base to lower their material acquisition cost, and where possible, leveraging the ongoing strength of the Canadian dollar to stretch…

- Author: Mike Brownhill

Economics of Foreign Expansion

Tue, 03 Aug 2010 15:30:46 +0000

A common problem experienced by Canadian exporters is the inability to finance foreign expansion, be it due to internal risk tolerances or inability to access funds. Many companies wrongly see foreign expansion as an absolute requirement for their future wellbeing. Foreign expansion isn't for everyone - there are many cases of Canadian…

- Author: Mike Brownhill

The Financial Rebound – Is it enough?

Mon, 05 Jul 2010 12:07:38 +0000

At this point in 2010, public automotive parts companies have reported financial reports if not twice, at least once. What we are all seeing is (largely) a return to profitability among the supply base, which is driven by i) increased production volumes, and ii) improved cost containment. On paper and in theory, this looks great - the industry…

- Author: Mike Brownhill

SR&ED Credits – Unlock this great asset!

Thu, 03 Jun 2010 12:48:40 +0000

Many automotive companies in Ontario fail to realize on their SR&ED expenses and the associated liquidity possibilities. Companies are well aware of how to file & claim for their SR&ED refunds, but few companies seek to leverage these refunds with their financial institutions. Most financial institutions are happy to create new lines…

- Author: Mike Brownhill

Cancelled/Down-sized programs – the perils of the new reality

Mon, 03 May 2010 15:48:37 +0000

Parts manufacturers face a new risk as the OEM's become leaner and more decisive in their new vehicle strategy - downsizing of program volumes. While this in itself is not a new risk (manufacturers have long had to adjust to the realities of decreased production volumes), the new reality has brought forward the possibility of volumes being greatly…

- Author: Mike Brownhill

Private Equity in the Automotive Industry

Thu, 01 Apr 2010 12:34:12 +0000

The financial turmoil of the preceding two years have brought to light (once again) the role of private equity in the automotive industry. In recent years, there have been numerous cases of companies changing between being public corporations and private equity held entities - what does the near future hold?

It is likely that private equity is…

- Author: Mike Brownhill

Does timely payment imply good credit?

Mon, 01 Mar 2010 14:14:15 +0000

Over the course of my career I have heard many people downplay the obvious credit risks in some of their clients, taking comfort instead in their prompt payment on previous dealings. Are these companies playing it smart or taking risks with their assets?

One of the first things I learned in my career was that there are two key determinants in…

- Author: Mike Brownhill

EDC – more than Insurance!

Fri, 05 Feb 2010 16:23:35 +0000

Export Development Canada (EDC) seems to be known within the Canadian automotive supply chain almost exclusively as a provider of Accounts Receivable Insurance (ARI). While EDC is a dedicated provider of ARI within the OEM automotive industry, they also offer a wide variety of other services. Did you know that EDC can potentially assist you with…

- Author: Mike Brownhill