It was Steven Kay’s dream job: designing toys for the company he owned, The Orb Factory. "Even as a kid I was designing toys and sharing them with the neighbourhood children," he says. "I really didn’t have a large vision at the beginning but the incredible growth potential was there." From its 1993 birth in Halifax, the company quickly grew to become a leading maker of innovative toys, craft kits, puzzles and educational products. The Orb Factory works directly with parents and children to develop international award-winning products sold in over 20 countries.
But the U.S.’s post-9/11 economic downturn threatened everything. "It really hit bottom last year," Kay recalls. "As a slump progresses, stronger and stronger companies go down. And with the shift in the value of the U.S. dollar, our margins were gone. It was quite a big shock. And in the same period, our prices went up."
The Orb Factory could keep doing business the old way or it could dive into the global economy. "We were forced to ask hard questions," he says. "Did we want to move to Asia and reduce our expenses enough to save the company? I wish it wasn’t this way--it’s not our philosophical preference--but it’s what we had to do to stay in business." And ultimately, he adds, it saved jobs here that would’ve been lost if the company had been forced out of business.
Hunting for a new manufacturing partner is always challenging--searching for a partner halfway around the world is especially daunting. But when The Orb Factory participated in SmartBusiness, it found help. The Greater Halifax Partnership’s innovative business retention and expansion initiative aims to determine what issues are impeding business growth and then solve them. To do that, SmartBusiness account executives are meeting with 700 businesses this year. "It was a really good experience," Kay recalls. "They put us into contact with a lot of resources we didn’t know were out there."
For example, they linked up with International Trade Canada (ITC). "We connect companies in Nova Scotia to our network of trade officials in Canadian Embassies around the world," explains Ron Rose, Senior Trade Commissioner in ITC’s Halifax office. "Basically, we launch exporters." Working with the ITC team, The Orb Factory was able to ensure it found the right Asian partner. "When Mr. Kay met with SmartBusiness officials, they noted that he was having trouble getting bona fides for partners in Asia," Rose says. We connected them with ITC’s officials in the Canadian embassy in Beijing and The Orb Factory found a reliable partner. “SmartBusiness provides us with opportunities to work with the business community,” says Mr. Rose. “It’s a great way for us to find companies that we can help to grow through contacts with foreign markets.”
"SmartBusiness was very helpful," says Kay. "It’s the same thing wherever you do business: communication is essential. That’s why this help has been so valuable... We’ve been working with our Chinese manufacturer since January and things are going very well. These successes enable us to keep our head office in Halifax and keep jobs in our community."
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