I recently read a Fortune magazine interview with "superstar investor" Mohamed El-Erian. While he was offering advice on how to plan overseas investments since the US market no longer offers growth potential, what he said also struck me as very relevant to Canadian exporters.
During the interview he offers several intriguing analogies including one that refers to flying a plane, or the world economy, where the giant engine is the US consumer and the fuel is debt. He believes that we are now in the stage where the fuel to this giant engine has been cut-off and that the pilot now has to switch to several smaller engines that represent multiple offshore markets. No body wants to be on a plane where the captain says he has to switch engines, but once the switch is made everyone will feel safer as they no longer have to rely on just one engine.
"It's a good thing in the sense that it's a more balanced world. I think most of us would rather be on a plane with multiple engines. So as long as we can get out of our comfort zones, this is actually a better world if we know how to invest. But it means doing things differently."
Substitute investing with exporting and this analogy suits the current situation our industry faces. The crucial point is that we need to do more and expect to do it differently in order to successfully switch from depending on the single, giant engine. For BC Wood members, the Japanese market should be one of these key engines.
You can read the entire interview at the URL below.