Translation industry Canada: Partnering to increase global competitiveness

In the global language industry, the visibility of a handful of high-profile full-service providers masks a fundamental characteristic of the sector: taken together, small- and medium-sized companies which rely on a large pool of freelancers dominate the market. Canada is no exception. In Canada, the fragmentation of language services supply is seen as a formidable challenge to the competitiveness of its providers. A national initiative to promote the domestic industry, which includes encouraging collaboration, may just have international appeal.

Text by Nancy A. Locke

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Translation industry Canada: Partnering to increase global competitiveness

Despite a brisk and sometimes dizzying series of mergers and acquisitions, market fragmentation remains a defining characteristic of the language industry worldwide. An Allied Business Intelligence Report published in 2002 noted: “According to one estimate, there are so many translation agencies in the U.S. (over 3,000) that no one company can claim to have more than one percent of the market share.” In 2005, the independent research and consulting firm Common Sense Advisory identified 20 industry leaders worldwide who together still claim less than 20 percent of the market – leaving 80 percent to thousands of smaller companies.

Canadian studies with a more narrow national focus echo the global reports. In addition, they identify the dominance of small- and medium-sized companies of the domestic market as an obstacle to the national industry’s ability to compete effectively in the ...