Manufacturers among Deloitte’s Best Managed winners

Winners outpaced Canada's forecasted 3% economic growth rate.

March 25, 2014   by PLANT STAFF

TORONTO — The winners of Deloitte’s Canada’s Best Managed Companies program showed resolve and the ability to build and grow sustainable businesses for the long term with double digit growth, according to the Toronto-based professional services firm.

Deloitte says the companies that made the list outpaced Canada’s forecasted 3% economic growth rate and those that have significant export sales grew in international markets by more than 40%. Growth is being achieved by  focusing on key areas such as profitability, talent, M&As, productivity and innovation.

The award recognizes Canadian privately owned and managed companies with revenues over $10 million for outstanding business performance and innovative management. Manufacturers and industrial firms that made this year’s list include:

“Best Managed companies lead the way with a clear vision focused on growth in new markets and product lines to drive profitability. They put the right people with the right skill sets in place,” said John Hughes, Deloitte Canada’s managing partner of Growth Enterprises, and national leader of Canada’s Best Managed Companies program.

Many companies focused on cost cutting to match expected declines in revenue during the 2009 economic crisis. But Deloitte says as the economic picture improves, these companies are coming out ahead because focus has moved from cost cutting to growth and profitability, and a concentration on specific segments or customer bases that generate higher revenue growth and profitability.

The best also engage their people in conversations to help team members understand the organization’s overall purpose and vision. Working conditions, opportunities for growth, training and development, along with self-reflection through non-routine questionnaires have been integral to determining the right approach to winning.

When it comes to M&As, the best look for deals that will extend market reach, find economies of scale for purchases and develop talent pools that build strategies to reach new markets and customers, Deloitte says.

Deloitte found lagging firm-level investment and risk taking by mature Canadian companies in areas like technology and machinery and equipment leaves Canada behind the US and other developed countries. The best are working to close the gap by making investments in enterprise resource planning systems and customer relationship management systems that increase productivity.

Investments in technology and infrastructure have seen above average returns for greater employee productivity, accelerated growth and development in new products and services.

Continued investments in capital assets and technology also drive innovation that boosts profitability. Deloitte has identified companies that are expanding operations to capture more complex multi-national projects with multiple disciplines and partners to drive innovation.

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