Opportunities and challenges for Quebec companies in Europe

While Premier François Legault is at the Hannover Trade Fair in Germany to promote the Quebec economy, entrepreneurs are accompanying him to try to access or strengthen their footholds in European markets.

Based in Bromont, C2MI helps companies develop new products. For the moment, the company has no customers in Germany, but its Business Development Manager, Marco Gauvin, is at the Hannover Fair to try to change that, despite the challenges.

“It’s hard to do business with (the Germans) because they’re very protectionist, in terms of their country and their culture, but not in terms of tariffs,” he explains outside his company’s booth at the fair after a chat with Legault.

“There’s a lot of bureaucracy”

It’s not just companies that are going to the Hannover Fair. Polytechnique Montréal is also there to “renew relationships with entrepreneurs and partnerships” and advance its research, says its vice-president of communications, Jacqueline Wallace.

She asserts that the context with the United States is also having an impact on Polytechnique Montréal. But the German market also has its challenges, admits Wallace.

She says that the U.S. context also has an impact on Polytechnique Montréal. But the German market also has its difficulties, admits Wallace.

“There’s a lot of bureaucracy here. (…) There are challenges, certainly of language, of culture too,” she explains, adding that there are also ‘a lot of opportunities’.

“Germany is very advanced in terms of innovation. So there’s a lot of development in different sectors that can help us in Canada too,” adds Wallace.

Premier Legault keeps repeating that, given the context of uncertainty provoked by President Donald Trump, Quebec companies must look to other markets, particularly in Europe.

Companies already well established

There are, however, some Quebec companies that are already well established in Germany and Europe. This is particularly true of CGI, which is “well established in the German manufacturing sector”, explains its Director of Consulting Services, Freight Transport and Logistics, Magali Amiel.

The IT consulting firm has nearly 5,000 employees in Germany. In total, 43,000 CGI employees work in 10 European countries.

“We’re here to present Quebec companies that come to us and put them in touch with customers,” says Magali Amiel at the Hannover Fair.

Relying on European defense

Premier Legault argues that Quebec can benefit from the European Union’s €800 billion rearmament plan.

Lévis-based scanner specialist Creaform already has partnerships with the European defense sector.

In particular, its scanners can be used for maintenance applications. “Damage or corrosion analyses on fighter aircraft, etc.,” gives the example of Pierre Tanguay, sales manager for Germany, Austria and Switzerland.

“We’re a reliable player. We’ve been working with the military and the defense industry for over ten years,” he adds.

A Quebec company looking to expand into Europe can ask Investissement Québec for help.

“One of our objectives when we accompany companies abroad is to put them in touch with each other. (…) Because Investissement Québec has local employees, we are in a position to provide access to these major principals,” explained Hubert Bolduc, President of Investissement Québec International, on Sunday in Hanover.

Legault is on an economic mission in Germany until April 2. He is accompanied by some 100 members of the Quebec business community.

–This report by La Presse Canadienne was translated by CityNews