2005-2006 Annual Report: Program for Export Market Development (PEMD)

PEMD-Industry

This section deals with PEMD-Industry funds already committed before the program's closure and it covers the three components: Market Development Strategy (MDS), New to Exporting Companies (NEC) and Capital Project Bidding (CPB). The MDS was focussed on assisting companies with the implementation of a simple marketing plan designed to penetrate an international market. The NEC provided assistance to companies that were new to exporting to introduce them to export market without undue financial strain. Finally, the CPB supported Canadian companies in bidding for major capital projects outside Canada by contributing to the costs of bid or proposal preparation at the pre-contractual stage.

A strategic review of the program in 2003/04 determined that PEMD-Industry was no longer in line with clients needs. That program element was closed in April 2004 as part of the government-wide effort to reallocate funds. Small and medium size enterprises, however, continue to receive assistance through the Virtual Trade Commissioner, through the Department's regional offices in each of Canada's provinces, and through more than 140 embassies and consulates abroad. Furthermore, in 2005/06, the Government of Canada continued with its Enhanced Representation Initiative (ERI) in the United States. The US has long been identified as the most important target market for PEMD-Industry clients. Despite the program's closure, the commitment of funds prior to the closure was honoured. Contracts for those funds were to expire in 2006.

Throughout 2005/06, some 23 companies still benefited from previously committed funding on some 35 projects, for a total of $487,116. Most of the projects (33) were under MDS which accounted for disbursements totalling $469,010. Two projects were executed under CPB for an amount of $18,106. There were no funds spent on NEC projects.

PEMD-Industry contributions were repayable based on certain levels of sales realized over two to four years as a result of activities funded under the program. Company repayments in 2005/06 amounted to $368,032 which is understandably less than in previous years given that funding is no longer available, but it still represents 75% of the disbursements made to companies in that period. Sales resulting from activities initiated under PEMD during that period were reported at $13,257,107.