Inside The Booming Canadian Tech Industry: Stocks To Watch

Canada is giving the U.S a run for its money when it comes to tech talent and innovation. Friendly immigration policies have seen the North America nation draw more U.S companies across the border in recent years.

Canadian Burgeoning Tech Industry

Toronto is slowly emerging as a tech hub having enjoyed the most brain gain over the past five years. Just like San Francisco, Toronto continues to stand out as a strong tech talent hub as more U.S companies continue to move their operations into the country.

The brain boom stems from the establishment of the Global Talent Stream that has enhanced the processing of highly skilled foreign workers. The program has allowed companies to relocate highly skilled employees into Canada faster.

Over the past two years, Canada has successfully attracted more than 24,000 highly skilled professionals. Technology firms have benefited a great deal from the friendly immigration policies, which has allowed them to tap some of the finest talent in diverse industries.

The fact that Canadian workplaces are billed as the most welcoming in the world is another reason why most highly skilled professionals are moving up North. In addition to offering a friendly working environment, gender balance in workplaces is another attribute that continues to propel Canada on the world map.

A booming tech industry is expected to continue driving the overall economy through the creation of new job opportunities. A report by the Atlantic Provinces Economic Council indicating that technology firms contributed as much as $6.1 billion to the Atlantic Provinces economy paints a clear picture of the technology industry impact on the economy.

According to APEC, there were close to 43,000 people working in the Atlantic provinces digital industry sector in 2016

“This report highlights the importance of this sector to our regional economy. Our focus at TechImpact has always been on driving economic prosperity through the development of our technology sector,” said Cathy Simpson, CEO of TechImpact.

Fast Growing Canadian Tech Companies

Investors looking to gain exposure to Canada’s burgeoning industry will always be spoilt for choice given the array of companies providing exciting opportunities.

CGI Inc. (TSE: GIB.A) is an information technology and business process, service company that continues to enjoy robust growth. The stock has gained more than 20% since the start of the year on investors reacting to robust revenue growth. The company is currently growing at 19% CAGR, with revenues growing by 9.5%.

Sierra Wireless, Inc. (TSE: SW) should be an ideal pick for investors looking to gain exposure to the manufacturing and commercialization of cellular wireless devices. The company supplies wireless communications and information technologies to some of the biggest markets in the world.  The company’s products offer recurring revenue with long term assured growth ideal for generating long-term shareholder value

Kinaxis Inc. (TSE: KXS) is one of the most followed tech companies in Canada, given its high returns over the years. The company boasts one of the highest expected growth in the TSX, having emerged as a crown jewel in the supply of cloud-based subscription software for supply chain operations. The company has diversified its service revenue streams having signed deals with the likes of Toyota and Volvo. The future can only be bright for the company as everything moves to the cloud.

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