www. locationcanada.com
CANADA A Global Business and INNOVATION LEADER At the FOREFRONT of
Advanced Manufacturing WIDENING the
Channels of Trade A COMPETITIVE
Tax Regime Opportunities in CLEAN TECHNOLOGY
2014
HERE’S
YOUR NEXT
BIG IDEA 64% OF ONTARIO’S WORKERS HAVE A POST-SECONDARY EDUCATION The highest percentage in the G7
50% REDUCTION IN R&D COSTS Ontario’s R&D incentives are among the most generous in the world
26.5% CORPORATE TAX RATE Ontario’s combined provincial/federal corporate tax rate is lower than the U.S. federal/state average. Since 2010, it’s dropped 5.5 points to 26.5%
Ontario, Canada is a dynamic growth engine where new thinking and ideas flourish, where pioneering and creative people are tackling today’s challenges. You need to be where growth is happening. Make Ontario your next big idea. Paid for by the Government of Ontario.
YourNextBigIdea.ca
Paid for by the Government of Ontario.
AREA0304.indd 1
21/07/14 8:37 PM
CANADA
CO NT E N T S
ADS/LOCATION PROFILES ALBERTA
C23, C24
C17
Alberta’s International Region — Where Innovation & Entrepreneurialism Converge www.internationalregion.com info@internationalregion.com
MANITOBA
C5, C25 CentrePort Canada — North America’s Prime Development Opportunity www.CentrePortCanada.ca Diane.Gray@ CentrePortCanada.ca
C10
C14
14.00% 12.00%
8.00%
Invest in New Brunswick — Your Natural Choice
6.00% 4.00%
www.investnb.ca
2.00%
Business Environment of the G-7 Countries, Rank for Forecast Period 2014-2018
NEW BRUNSWICK
C11, C26
10.00%
0.00%
1st
United States 2nd
China
Russia
Canada
tatistics derived from Wikipedia
3rd
ONTARIO
C16, C28
4th 5th
City of Brampton Economic Development Office
RANK
6th 7th
www.brampton.ca/b-more Canada
U.S.
Germany
U.K.
France
Japan
C2, C27
Italy
Source: The Economist Intelligence Unit, March 2014
C6
C20
C4 Minister’s Letter
C14 Canada to Widen Its Channels of Trade
FEATURES
Although it’s not without challenges, implementation of Canada’s trade agreement with the EU would have many benefits as well as an economic impact on world trade.
C6
A World Leader in Business and Innovation
Its well-educated and skilled workforce, superior transportation infrastructure, safe and secure banking system, low tax rates, and enviable quality of life continue to make Canada a top choice for investment.
C10 AtManufacturing the Forefront of Advanced A leader in innovative manufacturing, Canada recognizes and supports its knowledge-based, high-tech industries.
Published by:
C17 A Highly Competitive Tax Landscape Foreign investors are drawn by Canada’s competitive tax regime, which is among the nation’s many advantages for business.
C20 Canada’s Clean Little Secret Canada’s clean-technology sector — including water, wind, solar, smart grid technology, and more — offers numerous opportunities and advantages to relocating or expanding companies.
Ontario Investment and Trade Centre www.InvestInOntario.com info@InvestInOntario.com
QUEBEC
C7, C9 Aéroports de Montréal — The Ideal Real-Estate Partner www.admtl.com
C19, C28 CRÉ Vallée-du-hautsaint-laurent — Take Advantage of the New Montreal Beltway www.hub-30.com
LOCATION CANADA EXCLUSIVE ONLINE CONTENT…
In Focus: Toronto Named World’s “Most Intelligent” Community
400 Post Ave. • Westbury, NY • 11590 516-338-0900 www.areadevelopment.com LOCATION CANADA | 2014
C3
CANADA L ET T ER F R OM THE
MINIS T E R
On behalf of the Government
skilled labor. Further, we are improving Canada’s public
of Canada, it gives me great
infrastructure, deepening our trade and investment
pleasure to address readers
relationships in the largest and fastest-growing markets in
of the 2014 edition of Location
the world, and improving our country’s fiscal framework by
Canada magazine.
returning to a balanced budget in 2015. Our government
With a robust economy and strong business fundamentals, Canada remains one of the
continues to create the conditions that attract global investors to communities across Canada. Clearly, investing in Canada makes excellent business
best places in the world for
sense. We offer a strong, stable financial system; low
international business and
taxes; one of the highest standards of living in the G-20; a
foreign direct investment. Indeed, in the aftermath of the
business-friendly environment; world-class cities; spectacular
worst global recession in a generation, Canada has continued
natural landscapes; and an innovative, well-educated, and
to outperform its G-7 peers in the growth of its economy,
multicultural workforce. I believe that Canada offers the very
employment, and income while achieving the lowest net-
best value proposition when it comes to global investment.
debt-to-GDP ratio in the group. Forbes and Bloomberg both
Canada also has trade links to the world. Through
rate Canada as the best country in the G-20 with which to
the North American Free Trade Agreement, we offer
do business, and for the past six years, the World Economic
businesses established in Canada preferential access to
Forum has rated our banking system as the world’s soundest.
a North American market of over 470 million consumers.
We are also among just a handful of nations in the world with
This increases to nearly 980 million consumers once the
a triple-A credit rating. This provides assurance to business
Canada-European Union Comprehensive Economic and
investors about the security of their investments in Canada.
Trade Agreement comes into force. And in March 2014,
Our government is working to ensure that Canada continues to be a top destination for business investment. Through Economic Action Plan 2014, we are continuing
Canada signed a free-trade agreement with Korea, opening an important gateway into Asia. I invite you to learn more about Canada’s world-leading
to bolster the competitiveness of the Canadian economy
business advantages — and why Canada continues to be a
by investing in the manufacturing sector, encouraging
top destination for investment — within these pages and at
innovation, and increasing the training and availability of
www.investincanada.com.
The Honourable Ed Fast MINISTER OF INTERNATIONAL TRADE
C4
LOCATION CANADA
Choose CentrePort Canada
canada
centreport canada, winnipeg
united states
mexico
Key advantages: Tri-modal inland port and Foreign Trade Zone Corporate taxes 33 per cent lower than the US Industrial land for any size of development Low energy and business costs Skilled, abundant labour available Incentives available Supported by
AREA0314.indd 1
13/08/14 7:26 PM
CANADA
A WORLD LEADER I N BU S I NE S S A N D I NNOVATION Its well-educated and skilled workforce, superior transportation infrastructure, safe and secure banking system, low tax rates, and enviable quality of life continue to make Canada a top choice for investment. BY MARK CRAWFORD
Business Environment of the G-7 Countries, Rank for Forecast Period 2014-2018 1st 2nd 3rd 4th
AS ONE OF THE LARGEST INDUSTRIALIZED global example, Canada has an abundance of natural resources and
6th
RANK
economies, Canada has plenty to offer the business world. For
5th 7th
energy, skilled and well-educated labor, and thriving clusters of high-tech industries. It also has a strong, stable financial system; progressive business environment; low corporate
Canada
U.S.
Germany
U.K.
France
Japan
Italy
Source: The Economist Intelligence Unit, March 2014
taxes; and one of the highest standards of living in the world. A key part of that standard of living is Canada’s
“In Canada we have access to a highly skilled workforce
internationally acclaimed postsecondary education system,
and are close to many of our major clients and partners,”
which produces thousands of highly skilled graduates every
comments Colin Folco, modernization manager for
year, across all fields. The result is a diverse workforce that has
Dieffenbacher North America, an OEM for the wood, plastics,
one of the highest proportions of postsecondary graduates of
and metal industries. “Establishing a plant here in Ontario is a
any Organization for Economic Cooperation and Development
strategic decision that we have never regretted.”
(OECD) country — an increasingly important site selection
One of the best reasons for doing business in Canada is that
factor for knowledge-based companies. According to Aon
it has many outstanding connections to top markets around the
Hewitt’s 2013 People Risk Index, three major Canadian cities
world. It starts in North America, where Canada has access to
— Toronto, Montreal, and Vancouver — are among the 10
almost 500 million consumers. Its strongest relationship is with
lowest-risk cities in the world for recruiting and employing
the U.S. — in fact, no country has an economic connection with
workers. Canada’s immigration system is also highly effective
the United States like Canada does. Three-quarters of Canada’s
in attracting and retaining top talent from other countries.
total exports are delivered to the U.S. Canada is also the United
Another Canadian strength is its modern, well-maintained
States’ largest foreign supplier of energy.
transportation infrastructure for moving goods, especially for international trade. The Asia-Pacific Gateway and Corridor Initiative consists of nearly 50 large-scale infrastructure
FISCAL RESPONSIBILITY Canada has enjoyed consistent growth across a variety of
projects totaling up to $3.4 billion, which will enhance
markets, ranging from traditional industries like agriculture,
connectivity with foreign markets, especially those in Asia.
forestry, and energy to knowledge-based industries like
C6
LOCATION CANADA
Location, location, location. To be at the heart of one of the world’s aerospace capitals – that’s why developers like you are choosing to do business in Greater Montreal. By setting up shop here, you’ll be in close proximity to two world-class industrial sites, Dorval and Mirabel, Quebec’s highly-skilled workforce, and a network of the world’s top suppliers and subcontractors. And with the vast amount of commercial space available, you’ll have plenty of room, not only to get your business started but to take it wherever you want to go. By choosing to develop in Greater Montreal, you’re investing in the success of your business.
admtl.com
AREA0248.indd 1
17/04/14 5:54 PM
CANADA information and computer technology, aerospace, and life
Besides NAFTA, Canada is also committed to opening new
sciences. From 2008 to 2012 Canada led the G-7 with an
markets around the world to diversify its economic opportunities.
average real GDP growth rate of 1.2 percent. Canada has also
Canada recently reached a historic trade agreement in principle
maintained the G-7’s lowest net debt-to-GDP ratio. Canada
with the European Union (EU). Once the Comprehensive
is also expected to remain a top G-7 performer through 2017
Economic and Trade Agreement (CETA) becomes active, foreign
(Forbes predicts a GDP growth rate of 1.8 percent in 2014) and
investors in Canada will have preferential access to both NAFTA
to return to a balanced budget in 2015–2016.
and EU consumer markets. Combined, these two markets are
This kind of fiscal responsibility is an important factor in spurring investor confidence and economic growth. In 2013, for the sixth year in a row, the World Economic Forum
valued at US$35 trillion — nearly 50 percent of the world’s total output of goods and services. The Canada-Korea Free Trade Agreement, which represents
ranked Canada’s banking system the soundest in the world.
Canada’s first free-trade agreement in the Asia-Pacific
Banks in Canada are highly capitalized and, during the Great
region, is projected to create thousands of new jobs and
Recession, not a single Canadian bank or insurer failed.
boost the Canadian economy by $1.7 billion once activated. In
Therefore, it is no surprise that Canada is consistently
fact, Canada has concluded free-trade agreements with nine
ranked among the “top countries for business” on numerous
countries over the past five years. Negotiations are also under
surveys. The Economist Intelligence Unit (EIU) has identified
way with multiple Pacific-Rim countries through the Trans-
Canada as the best country among the G-7 in which to do
Pacific Partnership, as well as bilaterally with India and Japan.
business over the next four years (2014–2018). A key reason
Canada is also the first G-20 country to make itself a
for this is Canada’s steadily falling tax rates. Federal corporate
tariff-free zone for manufacturers by eliminating tariffs on
tax rates have been reduced from 28 percent in 2000 to 15
manufacturing inputs, machinery, and equipment. When
percent in 2012 — bringing the combined provincial and
factoring in the accelerated capital cost allowance (CCA) for
federal rate to an average of 26 percent, well below the
machinery and equipment, along with other deductions and
comparable rates of most other G-7 countries, and well below
credits, foreign investors are pleased to discover that Canada
that of the United States. A 2013 KPMG study also indicates
has one of the lowest overall tax rates on new business
that Canada’s corporate income-tax rate has decreased more
investment among OECD countries and the G-7.
rapidly than that of any other country. QUALITY OF LIFE TRADE AND INVESTMENT Canada’s robust, business-friendly environment continues
Surveys continue to place Canada in the top 10 for quality of life (for example, Harvard Business School’s Social Progress
to stimulate both domestic and foreign investment. According
Imperative, which ranks 132 countries based on social and
to The Economist Intelligence Unit’s business environment
environmental factors, scored Canada first in 13 of the 54
rankings, Canada is ranked as the fourth-best investment
categories, including access to advanced education, health
location in the world for 2014–2018 (up from seventh place for
and wellness, access to basic knowledge, and personal safety).
2009–2013) behind Singapore, Switzerland, and Hong Kong. Thanks to the North American Free Trade Agreement (NAFTA),
Canada is well known for its spectacular natural landscapes, well-educated and multicultural population,
Canadian businesses have easy access to one of the largest
world-class universities, universal healthcare system, and
and highest-value consumer markets in the world (Canada, the
modern, diverse, and safe cities.
United States, and Mexico), with an annual economic output
“Canada has been home to my family over the last five
valued at US$18 trillion. Millions have been spent by Canada
years,” says David P. Homer, president of General Mills
and the U.S. to streamline border commerce, including improved
Canada. “Canadian cities have strong neighborhoods, a lot of
clearance processes for pre-authorized shipments and bilateral
public and open spaces, and great schools. It’s a great place
teams of Customs officials at key crossing points.
to enjoy life — a really vibrant and fun place to be.” ••
C8
LOCATION CANADA
THE IDEAL REAL-ESTATE PARTNER Two World-Class Aero-Industrial Sites Aéroports de Montréal (ADM) and its two world-class airports, Montréal-Trudeau and Montréal-Mirabel, offer you the most favorable opportunities for locating or expanding your firm. At the Heart of Montréal’s Aerospace Industry Greater Montréal is one of the world’s three aerospace capitals, along with Seattle and Toulouse. It is among the rare places in the world where all the main components of an aircraft are manufactured within a 20-mile (30-kilometer) radius. Nearly two-thirds of Canadian production is centered here. More than 250 businesses are located at ADM’s two airports, generating a grand total of 60,000 direct and indirect jobs. Montréal’s aerospace industry boasts prime contractors, equipment manufacturers, among the world’s top subcontractors and suppliers, as well as a qualified and competitive labor force and unique training centers. The presence of all these key industry players explains why the Greater Montréal region is renowned for its leading-edge expertise in the design, manufacturing, integration, overhaul, and repair of aircraft and aeronautical subsystems. FOR MORE INFORMATION please contact: Real Estate and Commercial Services Aéroports de Montréal Telephone: 514-394-7201 Fax: 514-394-7356 Developpement.IndustrielADM@admtl.com
admtl.com
AREA0300.indd 1
Montréal-Trudeau: Ideal for logistics and aeronautics • 14 million square feet (1.3 million square meters) available for aeronautical development • Located in Québec’s industrial and aerospace heartland • 20 minutes from downtown and accessible via several highways • 4,000-acre (1,620-hectare) site where more than 25,000 people already work • Canada’s largest MRO and aircraft manufacturing center • A congestion-free international airport • More than 30 carriers serving 130 destinations Montréal-Mirabel: Focusing on all-cargo, aeronautics, light manufacturing, tourism, and recreational • 50 million square feet (4.6 million square meters) of land and buildings available for lease • Located in the Laurentians, Québec’s top tourism region • Easy access to all services and a quality labor force • An industrial zone where more than 4,000 people already work • Québec’s second-largest aerospace hub • An aerospace training center and engine test facilities • An international airport with 24/7 cargo and general aviation operations • A regional base for business aviation • A unique motorsports complex
FOLLOW THEIR LEAD! MIRABEL Bombardier Aéronautique Mecachrome Canada Pratt & Whitney Canada Inc. Aérolia Canada Turbomeca Canada (Groupe Safran/Safran Group) Avianor Inc. L-3 Communication MAS Les Investissements Nolinor École des métiers de l’aérospatiale de Montréal Fedex UPS DHL Purolator Worldwide Flight Service Canada Inc. CAE LG Cloutier Aéronautique Inc. DORVAL Bombardier Aéronautique Air Canada Air Inuit Ltée Aero Mag 2000 (YUL) Inc. Air Transat Inc. Aeroterm Kelly Aviation Center Montreal Les entrepôts frigorifiques Conestoga Air Creebec Skyservice Starlink Aviation Execaire (Innotech) Aviation Inc.
21/05/14 7:52 PM
CANADA
AT THE FOREFRONT OF ADVANCED MANUFACTURING A leader in innovative manufacturing, Canada recognizes and supports its knowledge-based, high-tech industries. BY MARK CRAWFORD
INVESTMENTS IN ADVANCED MANUFACTURING
chief operating officer for the Natural Sciences and
TECHNOLOGIES — for example, nanotechnology,
Engineering Research Council of Canada. “The program
composite materials, injection molding, microelectronics,
provides a way to bring together competing companies in
software, computer systems, lasers and photonics, robotics
pursuit of solutions to shared problems.”
and automation — are a must these days for companies that
About $8 million of this funding will be directed to the
want to stay competitive in the global marketplace. These
Refined Manufacturing Acceleration Process (ReMAP).
advances are essential for improving quality, throughput,
ReMAP’s goal is to foster collaboration among academic
efficiency, and controlling costs.
partners, research organizations, and private-sector
“We did a scan of manufacturing around the world
companies to pursue R&D that supports the electronics
and found a complete transformation,” states Sheila
sector. The 25-member manufacturing research network has
Botting, senior practice partner with Deloitte Real Estate,
committed $11 million of its own resources to the research.
a consulting firm in Toronto, Ontario. “It’s no longer
“Our government is investing in science and technology
traditional manufacturing; it’s going into advanced
that drives business innovation and moves ideas from
manufacturing. We have to embrace that.”
the laboratory to the marketplace more efficiently,” says
And that’s exactly what Canada is doing.
Minister of State for Science and Technology Ed Holder. “ReMAP is positioning Canadian manufacturers to improve
SUPPORTING INNOVATION The Canadian government has launched several
processes and materials in high-tech industries that create jobs and prosperity for Canadians.”
initiatives designed to support innovation in its advanced manufacturing industries. For example, it recently awarded
LEADING ADVANCED MANUFACTURING INDUSTRIES
$49.7 million to four research networks through its
G ICanada’s knowledge-based, high-tech manufacturing
Business-Led Networks of Centers of Excellence program
industries are an important part of the Canadian economy.
that targets research and development (R&D) challenges.
Overall, Canada’s manufacturing economy generated about
“Companies are attracted to business-led networks
$591 billion in sales in 2013 and accounted for half of all
because they see clearly how these kinds of collaborations
industry R&D. Four of its leading advanced manufacturing
add value to their bottom line,” comments Janet Walden,
industries — aerospace, automotive, medical devices, and
C10
LOCATION CANADA
AREA0313.indd 1
13/08/14 7:21 PM
CANADA information and communications
and intellectual property for GE
technology (ICT) — generated
Aviation’s facilities around the
about $340 billion in revenue
world.
(about 60 percent of total
“Advanced manufacturing
manufacturing output) and
is changing both the products
continue to invest in cutting-edge
we make and how we make and
R&D that confirms Canada’s
service them,” says Jeff Immelt,
international reputation as an
chairman and CEO of GE. “Our
innovation leader.
new facility in Bromont is about
AEROSPACE: Canada’s civil aircraft production is the third highest in the world, generating more than $25 billion in 2013.
GE Aviation’s new Global Robotics, Instrumentation and R&D Centre in Bromont, Que., will develop advanced robotic processes.
increasing our speed of innovation and refocusing the way products are designed, manufactured, and serviced for our customers in Canada and for global markets.”
With annual R&D and capital investments of more than $1.7 billion, the Canadian
AUTOMOTIVE: With more than 1,300 automotive
aerospace manufacturing sector is also one of the most
manufacturing and supplier facilities, Canada’s automotive
R&D-intensive in the country, increasing R&D expenditures
industry accounted for about 12 percent of the country’s
nearly 40 percent from 2008 to 2013.
manufacturing GDP in 2012 and 16 percent of vehicle
Much of this work is carried out through public-private
production in North America. Annual capital investment by
partnerships. For example, the Composite Innovation
Canada’s major players — Chrysler, Ford, General Motors,
Center in Winnipeg is Canada’s largest composite
Honda, Toyota, Hino, Motor Coach Industries, PACCAR,
technology center. It has undertaken hundreds of projects
and Volvo — averaged $3 billion from 2002 to 2011.
with industry partners and government agencies, including
Annual investments by the automotive industry
developing bio-composites and other renewable materials
and its partners in R&D averaged about $455 million
for industrial-grade parts. Another research partnership
annually from 2002 to 2012. The Automotive Innovation
— the New Consortium for Aerospace Research and
Fund provides support for leading-edge innovation in
Innovation in Canada — was launched in 2014 and will
automotive manufacturing, especially for greener products
support collaborative research by private companies,
and processes. To date, investments have leveraged up to
academic institutions, and research organizations.
$1.6 billion in R&D and innovation investments in Canada’s
Major aerospace companies in Canada include Boeing,
automotive sector. Auto21 is another leading research
GE Aviation, Eurocopter, Bombardier, Bell Helicopter, Pratt
partnership that supports automotive R&D at more than 45
& Whitney Canada, and Rolls-Royce. These companies and
academic institutions across Canada.
others manufacture a wide variety of products including
In partnership with the Canadian and Ontario
commercial and business aircraft, helicopters, aircraft
governments, Magna International has invested more than
engines, full flight simulators, landing gear systems,
$400 million to develop new automotive products and
advanced composites, and robotics. They also invest
technologies. For example, the company has successfully
millions of dollars every year in advanced research. For
advanced its capabilities to produce class-A, carbon-fiber
example, in 2013 General Electric Aviation opened its $61.4
composite body panels at the production rates needed for
million Global Robotics, Automation and Instrumentation
the automotive industry. Automotive components made
R&D Centre in Bromont, Quebec. The new facility will
from these advanced materials are essential for increasing
develop advanced robotic processes, software applications,
fuel efficiency and controlling manufacturing costs.
C12
LOCATION CANADA
AT THE FOREFRONT OF ADVANCED MANUFACTURING
“With our unique formulations and production
INFORMATION AND COMMUNICATIONS
expertise, we’ve been able to take our carbon-fiber
TECHNOLOGY (ICT): ICT is one of Canada’s greatest
processing and know-how to the next level,” says Tom
high-tech strengths. Canada’s top 250 ICT companies had
Pilette, vice president of Product and Process Development
combined revenues of $85 billion in 2013, up 2.4 percent
for Magna Exteriors. “By continuing to develop vehicle
over the previous year. Canada is home to global companies
parts and systems with cutting-edge materials, we are able
like BlackBerry, Open Text, and CGI Group. Canadian
to assist our customers meet fuel-economy and emissions
ICT expertise includes mesh networks, WiMAX (wireless
standards for their cars and trucks.”
communications standard), radio-frequency identification (RFID), fiber optics, satellite applications, next-generation
MEDICAL DEVICES: Canada has a strong medical-device
networks, M2M (communication between wireless and
market that is anchored by companies like Nordion, Titan
wired devices), and cloud computing applications.
Medical, Abbott Point of Care, Baxter, Covidien, Hologic,
The ICT industry leads all other industry for private-
Johnson & Johnson, Medtronic, Roche, Smith & Nephew, Sorin
sector R&D, capturing about 35–40 percent of all private
Group, and Zimmer. In 2011, Canada’s medical-device market
R&D expenditures in Canada (ICT R&D expenditures
was valued at about $6 billion, with an average annual growth
totaled more than $5 billion in 2011). Key research areas
rate of 7 percent between 2006 and 2011. Popular medical
are digital media, software, wireless, energy efficiency,
devices from Canada include medical imaging equipment,
cloud computing, nanomaterials, next-generation power
prosthetics, home healthcare equipment, analytical equipment,
amplifiers, and imaging software.
and dental implants and materials. Innovative medical devices that were developed in
Major international companies continue to invest hundreds of millions of dollars in new R&D centers across
Canada and are used around the world include:
the country. Ericsson, for example, is one of the top-10
• Halifax-based MedMira’s three-minute flow-through
R&D investors in Canada (in 2012 it spent more than $325
diagnostic HIV test
million in R&D). Last year the company announced its
• A high-resolution, intra-operative magnetic resonance
next research investment — building a global ICT center
imaging (MRI) system developed by Winnipeg-based IMRIS
in Vaudreuil-Dorion, Quebec, that will develop next-
• The world’s first biosynthetic cornea, which is implanted
generation technology and cloud-based services. The center
in the eye and injected with stem cells to promote the
will begin operations in early 2015.
growth of a new cornea In addition to these discoveries, Medtronics of Canada,
“Our new high-tech center represents our commitment to the region and will contribute to building the ICT
in partnership with the Montreal Heart Institute, has
ecosystem in Canada,” states Mark Henderson, president
developed a unique cardiac cryoablation catheter system.
and CEO of Ericsson Canada.
The cryoballoon is inserted through an artery and delivers
And New Brunswick has been steadily building a niche
a refrigerant that freezes sections of tissue to eliminate
subsector of information technology (IT), centralized in
unwanted electrical signals that contribute to irregular
Moncton. This is anchored by BMM Testlabs Canada, which
heart rhythms. To date more than 25,000 patients around
provides compliance and testing services to the regulated
the world have been treated with this system, which is
lottery industry and announced two expansions over
manufactured in Montreal.
the course of six months creating up to 200 IT jobs. GLI
“Medtronic remains committed to Canada,” says Neil
Testlabs, which also specializes in gaming compliance, also
Fraser, president of Medtronic of Canada. “We look forward
announced an expansion of their Moncton office, while
to continuing to advance our medical technologies here and
Nova Scotia-based Karma Gaming, a creator of mobile
delivering innovative health-system solutions for patients
games for the regulated lottery industry, announced it was
around the world.”
bringing a development studio into the area.
••
LOCATION CANADA | 2014
C13
CANADA
C AN ADA T O W IDE N ITS CHANNELS OF TRADE Although it’s not without challenges, implementation of Canada’s trade agreement with the EU would have many benefits as well as an economic impact on world trade. BY LESLIE WAGNER, Director of Project Management and Development, Ginovus
SINCE 2009 THERE HAS BEEN DISCUSSION OF A NEW TRADE AGREEMENT between Canada and the European
THE BENEFITS The United States is currently Canada’s largest trading
Union (EU). When (if) this trade agreement is signed, it will
partner and the European Union is the second-largest
be the largest bilateral initiative since the North American
export destination. Canada ranked 12th in major trading
Free Trade Agreement (NAFTA). It will be known as the
partners with the EU, which, not surprisingly, was led by
Comprehensive Economic and Trade Agreement or CETA.
the U.S., China, and Russia. When the agreement goes into
The primary purpose of the agreement is to promote
effect though, some 98 percent of all tariff lines between
trade by eliminating tariffs and reducing nontechnical
Canada and the EU will immediately be zero, with the
barriers to support the flow of goods, services, investment,
remaining duties being eliminated over a period of seven
and labor. An agreement in principal was reached
years. Given the export-oriented nature of Canada’s
in Brussels on Oct. 18, 2013; the broad outline of the
economy, widening the channels for trade with the EU,
preliminary details, should they be finalized, will foster
which accounted for 19.2 percent of world GDP in 2012,
growth and employment on both sides of the Atlantic.
would provide benefit to Canada over the long term.
The timeline for implementation remains unclear; ratification is not likely until 2015, and the agreement must
SERVICE SECTOR IMPACTS — The Canadian service
first be “legally scrubbed” and translated before the chief
sector accounts for more than 70 percent of the nation’s
negotiators initiate the agreement. The European Commission
economic activity. However, significant barriers exist today
must then seek the European Parliament’s approval, requiring
for providing cross-border services — one of which is the
consent by each of the 28 members of the European Union. The
lack of mutual recognition of qualifications.
full impact of the trade deal will not occur until all provisions
One of the goals of CETA is to promote the flow
come into effect, which is likely to be several years after the
of services including management, engineering and
trade pact is finalized. Once fully implemented, impacts —
technical, and computer and information services through
many favorable some not so favorable — will be realized by
programs such as the mutual recognition of professional
many industry sectors within the Canadian and European
qualifications. This mutual recognition framework would
economies and perhaps a few other economies as well.
allow the relevant professional organizations or authorities
C14
LOCATION CANADA
CANADA TO WIDEN ITS CHANNELS OF TRADE
in the EU and Canada to
AGRICULTURE IMPACTS
EU TRADE — 2011
collaborate and jointly work
— The EU is a very valuable
out the technical details of
export market for Canadian
qualifications that would be
14.00%
agricultural and processed
recognized in professions
12.00%
agricultural products (PAPs).
such as architecture,
10.00%
However, EU tariffs can
engineering, and accounting.
8.00%
impose a real burden on
Mutually credentialed
6.00%
Canadian exporters and
qualifications could then
4.00%
considerably limit their
be brought under CETA
2.00%
ability to effectively compete
eliminating barriers to doing
0.00%
business.
United States
China
Russia
Canada
Statistics derived from Wikipedia
in the EU market. For example, the EU currently levies a tariff equivalent to
LABOR — To further support trade in services and
$114 per ton on Canadian oats, which over the last five
investment, CETA will make it easier for firms to move staff
years has been estimated to add as much as 51.7 percent
temporarily between the EU and Canada. This will make
to the price. This negative financial impact, created by
it easier for European and Canadian companies to operate
tariff levies, has been a significant barrier for oat growers
their companies in foreign markets.
interested in doing business in the EU. With the elimination of the tariffs, the barriers are removed and the free market
PUBLIC PROCUREMENT — CETA would cover new ground by opening all sub-levels of government to bilateral
opportunities are opened. The EU processed agricultural industry will also benefit
procurement markets. For example, in 2011 procurements
from CETA as PAPs tariffs will be eliminated, and the EU
by Canadian municipalities were estimated at C$112 billion
is Canada’s major import source of wine — about half
or almost 7 percent of Canadian GDP; this municipal
of its imports. The tariff elimination is complemented
procurement spending would, under CETA, be open to EU
by the removal of other relevant trade barriers that will
companies for procurement bidding.
significantly improve access to the Canadian market for European wine and spirits.
INVESTMENT — One of the key pillars of economic relations between the EU and Canada is investment. In
SUSTAINABLE DEVELOPMENT — The EU and Canada
2012, the EU represented the second-largest source of
have in CETA reaffirmed their strong commitment to the
foreign direct investment (FDI) in Canada at approximately
principles and objectives of sustainable development.
$171 billion of total FDI into the country. Similarly, the EU
This means that investment and trade relations should
served as the second-largest destination for Canada’s direct
not develop at the expense of the environment or of
investment abroad at $181 billion.
social and labor rights, but instead foster a mutually
CETA will remove or alleviate barriers, thereby improving legal certainty and predictability for businesses,
supportive environment between economic growth, social development, and environmental protection.
which will likely increase the FDI comfort level. One of the principal barrier removals involves increasing the investment thresholds that trigger formal review from
SOME CHALLENGES Despite an overall net positive impact for the Canadian
$344 million to $1.5 billion for EU investments. A clear
and EU economies, the impact of the agreement may
motivation of the agreement is to make it easier for smaller
not be a win for all economies. CETA may have far-
FDI investments to be made.
reaching implications for the U.S.-EU trade negotiations,
LOCATION CANADA | 2014
C15
which makes the timing of the Trans-Atlantic Trade and
a list of EU standards on automobiles, which will make the
Investment Partnership (TTIP) negotiations critically
EU exporters more competitive in the Canadian market.
important and time-sensitive. The intent of the trade
The EU-Canada trade negotiations have broad
agreement between the U.S. and the EU is very similar to
implications for North America. A successful CETA
that of CETA in that it aims to remove trade barriers in a
negotiation will make it even more important that the EU
wide range of economic sectors to make it easier to buy
and U.S. negotiate the TTIP or U.S. exporters will face
and sell goods and services. Talks began in July of 2013,
increased competition in both markets and some North
and an advisory group made up of 14 individual experts
American supply chains will be disrupted.
representing balanced interests was created and has been meeting regularly since January of 2014. A longstanding Canadian objective has been to develop
Interestingly, when (if) CETA gets completed, it could lay the groundwork for earlier implementation of TTIP, in which case the next step could be to integrate NAFTA. Mexico’s free-
additional markets and be less dependent on the United
trade agreement with the EU was fully implemented in 2010
States. When fully implemented, CETA is expected to lead
and is in need of modernization. Integrating the EU — which
to almost a 25 percent increase in two-way trade in goods
accounts for some 35 percent of world trade — with NAFTA
and services between Canada and EU, and some of this
— which accounts for another 15 percent — would create a
increase will likely be at the expense of U.S. exporters. U.S.
trading bloc that accounts for more than half of world trade.
exporters will be further impacted by the agreement on
A combined TTIP and NAFTA would provide a powerful
technical regulations. For example, Canada will recognize
template for a 21st century trade system. ••
C16
LOCATION CANADA
AREA0252.indd 1
17/04/14 6:17 PM
CANADA
A H I G HLY COMPETITIVE TAX LANDSCAPE Foreign investors are drawn by Canada’s competitive tax regime, which is among the nation’s many advantages for business. BY HOWARD SILVERMAN, President & CEO, The CAI Global Group
FOREIGN INVESTORS ARE ATTRACTED to Canada’s strong
combined federal-provincial statutory corporate income
economic fundamentals, its highly skilled workforce, its
tax rate has come down from approximately 42 percent
proximity to the U.S. market, and its abundant resources.
in 2000 to 26 percent today (weighted average), making it
With few exceptions, Canada offers full national treatment
more attractive for businesses to locate in Canada. These
to foreign investors within the context of a developed open-
changes in tax policy have also made it more attractive
market economy. Also, one of Canada’s most attractive
for businesses to invest in capital goods (new machinery,
features as an FDI destination is the skills and education of
equipment, and structures). Canada now has the lowest
its workforce. With high rates of high school and university
and, hence, the most tax-competitive marginal effective tax
attainment, high literacy rates, and strong student skills,
rate (METR) on capital investment in the G7 and one that is
Canada provides an interesting environment capable of
below the OECD average.
providing a trained workforce.
A recent study from KPMG, Competitive Alternatives 2014: Focus on Tax, revealed that Canada remains the most
A LOW TAX REGIME Canada has witnessed a remarkable transformation in
tax-competitive country for business globally. Among the countries studied, Canada has the lowest total tax index
the business tax landscape. Once known for having one
(TTI) at 53.6. In other words, total tax costs in Canada are
of the highest corporate income tax rates in the developed
46.4 percent lower than in the United States (Figure 1).
world, Canada now has one of the lowest rates of the Group
The U.S. has a TTI of 100.0 and represents the benchmark
of Seven (G7) leading industrial economies and is near the
against which all locations are scored.
middle of the pack of OECD countries. Canada’s corporate tax rate dropped in 2012 as the last phase of federal cuts took effect. This tax cut is consistent
TAX-COMPETITIVE CITIES Toronto, Vancouver, and Montreal take the top three
with the global trend in the reduction of corporate tax rates,
spots among major international cities in 2014 (Figure 2). While
but Canada’s rate fell faster than other countries’ rates
Toronto ranked first overall among the 51 major international
during the year, according to KPMG’s Global Corporate
cities studied, Vancouver ranked ahead of Toronto in 2012, but
and Indirect Tax survey of tax rates affecting business. The
dropped behind Toronto in the 2014 rankings. This change in
LOCATION CANADA | 2014
C17
CANADA ranking is due to several
Figure 1
factors, including British
2014 RANK
Columbia’s corporate
place for TTI this year, COUNTRY
TOTAL TAX INDEX
tax rate increase from 10 percent to 11 percent,
2012 RANK
2014
2012
Change
primarily due to an innovative property tax provision that rewards owners who improve
1
Canada
53.6
59.1
-5.5
1
2
United Kingdom
66.6
73.3
-6.7
3
tax) to PST (provincial
3
Mexico
70.2
63.6
6.6
2
to increase. Bio-pharma
sales tax), and the
4
Netherlands
74.5
77.2
-2.7
4
and e-business incentive
elimination of the BC
5
United States
100.0
100.0
0.0
5
enhancements also
credit (which provided
6
Australia
112.9
125.1
-12.2
7
a partial exemption
7
Germany
116.3
122.0
-5.7
6
from school taxes for
8
Japan
118.6
152.3
-33.7
8
STRONG INDUSTRIAL
industrial property).
9
Italy
135.8
152.9
-17.1
9
SECTOR RANKINGS
Smaller Canadian
10
France
163.3
179.7
-16.4
10
the final reversion from HST (harmonized sales
industrial property tax
cities, in addition to the
their properties, thus causing assessed value
helped Quebec City secure this spot.
Despite the everchanging landscape of
Source: KPMG, Competitive Alternatives 2014: Focus on Tax
larger international ones,
Canadian industries,
were also studied as part
Canada’s 2014 sector
of the 2014 report. The 15 Canadian cities featured ranked ahead of their U.S. counterparts; however there are some changes this year in the national rankings. Edmonton has moved up from second place in 2012 to first place in 2014 and is the most tax-competitive city in Canada. The reason for this is that former tax leader, Saskatoon, has dropped to sixth place in 2014, primarily because of the changes made to the Saskatchewan R&D tax credit in 2012. Atlantic Canada remains a highly tax competitive region in Canada with Moncton, Fredericton, St. John’s, and Halifax rounding out the top-five tax-competitive cities in the country. Additionally, when taking overall costs into account, the KPMG study revealed that Moncton (NB) is the lowest-cost business location in Canada and the U.S. Quebec City moved up to ninth
C18
LOCATION CANADA
rankings remained strong.
Figure 2
Canada ranked first in the digital
RANKING AND TOTAL TAX INDEX FOR FEATURED CANADIAN CITIES (international and smaller cities) 2014 Rank
City
2014 Total Tax Index
1
Edmonton, AB
42.7
2
Moncton, NB
42.9
3
Fredericton, NB
43.0
4
St. John’s, NL
43.8
5
Halifax, NS
47.9
6
Saskatoon, SK
48.8
7
Charlottetown, PEI
49.5
8
Toronto, ON
51.6
9
Quebec City, QC
54.0
10
Niagara Region1, ON
54.4
11
Vancouver, BC
54.5
12
Montreal, QC
55.6
13
Kamloops, BC
55.8
14
Winnipeg, MB
55.9
15
Sudbury, ON
56.8
1 Niagara Regional Municipality
services sector with a low TTI (17.1) (Figure 3). This is primarily due to significant provincial incentives that provide support to video game producers and other digital media industries. Canada remains in first place in this sector because of federal and provincial income tax credits for R&D. Canada’s top ranking for research and development makes it an ideal location for companies involved in the R&D sector. Canada ranked second behind the United Kingdom in the corporate services sector, while it also ranked second behind Mexico in the manufacturing sector. CREATING FREE-TRADE ZONES Canada has implemented a major new initiative that will eliminate tariffs on all manufacturing inputs by 2015 —
A HIGHLY COMPETITIVE TAX LANDSCAPE
the first country in the G20 to offer a tariff-free zone for industrial manufacturers.
still offering all the benefits of
Figure 3
a traditional FTZ.
CANADA’S SECTOR RANKINGS AND ASSOCIATED TAX COST ADVANTAGE
Canada’s initiative applies across the entire country,
PROVINCIAL PROGRAMS Sector
making the country one large FTZ for firms importing manufacturing inputs. Canada’s FTZ-type programs offer investors the vitally important advantage of geographic flexibility.
2014 Sector Rank
2014 Sector Tax Index
1 1 2
17.1 30.6 69.8
82.9% 69.4% 30.2%
2
65.5
34.5%
Digital R&D Corporate Services * Manufacturing
% Tax Cost Advantage vs. U.S.
Provincial incentives have basically remained consistent offering competitive programs for FDI investments. The provinces of Ontario and Quebec have recently undergone elections, and although new programs
*Corporate services represent front and back office type operations
Canada’s programs do not
have been announced, the
restrict investors to a handful
details of these programs
of locations that may be distant from their target markets.
have yet to be articulated. Both Ontario and Quebec are
In effect, programs such as the Duty Deferral Program,
offering competitive incentives for investment projects
the Export Distribution Centre Program, and Exporters of
meeting the new criteria. Once the details of these new
Processing Services Program make it possible to create an
programs are announced, the criteria should be similar to
FTZ environment exactly where the business needs it, while
those offered in the past.
••
LOCATION CANADA | 2014 AREA0270.indd 1
C19
13/05/14 6:06 PM
CANADA
CA NAD A’ S C LEA N L I T T L E S E CR E T Canada’s clean-technology sector — including water, wind, solar, smart grid technology, and more — offers numerous opportunities and advantages to relocating or expanding companies. BY SEAN DYKE, Chair, Ontario Clean Technology Alliance
YOU KNOW THE STEREOTYPES about Canadians. We’re
and more. The province also generates 37 percent of Canada’s
inherently modest and polite; we never toot our own horns;
GDP and is home to nearly 50 percent of all employees in
and we don’t fly our flag too high so as not to offend anyone.
high-tech and knowledge-intensive industries, including clean
Luckily, there are experts from other countries and wellknown organizations to do that for us. KPMG says Canada
energy and clean tech. But clean-tech hotspots can be found all over Canada. In
is the most tax-competitive country for businesses on the
British Columbia there are some 200 clean-tech firms, and
planet. For the fifth consecutive year, the World Economic
many of them are focused on clean and renewable energy
Forum rates Canada’s banking system as the world’s soundest.
as well as clean transportation systems. Global leaders
According to The World Bank, Canada has one of the simplest
include fuel-cell developer Ballard Power Systems Inc.,
business start-up processes with a single procedure that takes
and alternative-vehicle fuel systems using natural gas and
around five days. Canada is also a world leader when it comes
liquefied natural gas from Westport Power Inc.
to education, according to a new study from the Organization for Economic Cooperation and Development. I really want to tell you about Canada’s clean little secret (because we’re too forthright and inherently honest to have any other kind). If you are thinking of starting, relocating,
In Alberta, clean tech follows the province’s leading economic sectors, energy and agriculture. Companies are developing expertise in fuels from biomass, water conservation, land management, and sustainable fertilizers. In Quebec, the province’s clean technology agency, Écotech
or expanding an environmental, clean-energy, or clean-
Québec, says there are some 500 clean-tech firms there.
technology company, you need to consider Canada. Ontario,
Hydroelectricity expertise is a strong suit in Quebec because
Canada’s most populous province — the one that borders
of the province’s long history of large hydroelectric projects.
New York, Michigan, Ohio, Pennsylvania, and Minnesota —
Three provinces in Canada’s Atlantic region — Nova
has Canada’s greatest concentration of environmental and
Scotia, New Brunswick, and Newfoundland and Labrador
clean-technology companies. According to the 2014 Canadian
— have ready access to wind, solar, and tidal power, as well
Clean Technology Industry Report, 35 percent of clean-tech
as oil and gas reserves in the Atlantic Ocean; as a result,
companies in Canada are located in Ontario, with the clean-
the region attracts a growing number of renewable energy
technology sector serving industries including aerospace,
firms. One company that has the world in its business plan
automotive, smart grid and utilities, oil and gas, agriculture
is CarbonCure Technologies, which has devised a way to
C20
LOCATION CANADA
CANADA’S CLEAN LITTLE SECRET
inject carbon dioxide waste
A municipal example
into the production of green
of water industry synergy
concrete. This carbon capture
within the Ontario Clean
technique holds the potential
Technology Alliance is the
to revolutionize the building
City of Burlington, located
industry.
in the Halton Region on the
Ontario’s environmental $8 billion in annual revenues and $1 billion in export earnings. Canada’s national clean-technology industry revenue is $11.3 billion and projected to grow to $26 billion by 2018. With global markets for clean technology at $1 trillion and poised to triple this decade, Canada offers a world-leading, highly educated talent base with excellent growth opportunities, a low-risk
city is home to the Canada
Courtesy: Halton Region
sector is worth an estimated
shores of Lake Ontario. The Centre for Inland Waters, the Wastewater Technology Centre, and the birthplace of ZENON Environmental before its purchase by
A water purification plant in Halton Region, Ontario, installed a revolutionary approach to improved membrane filtration called ZeeWeed. It is from Zenon Environmental Ltd./GE. Membrane hollow fibers are simply suspended in an open tank facilitating the conversion of conventional plants.
business environment, and
General Electric in 2006. Today, General Electric Water & Process Technologies occupies one-third of the center’s 5,500-squaremeter (59,201-square-foot) space for ongoing R&D. Specialized facilities include research and operational laboratories, in-house pilot
generous targeted tax credits to global companies seeking
plant demonstration facilities for wastewater and biosolids
growth.
processing and advanced treatment, a mechanical workshop,
That all sounds almost immodest, doesn’t it? However, here are some examples to back up those almost un-Canadian boasts.
and warehouse facilities, as well as an on-line sewage loop from an adjacent wastewater treatment plant. Burlington is also home to 253 water-related businesses including Anaergia (global head office), Eco Waste Solutions
WATER TECHNOLOGY
(North American head office), and Endress+Hauser Canada
Let’s start with water, because Canada is North America’s
Ltd. (Canadian head office).
freshwater champion, with almost 9 percent of our total area covered by water. The Great Lakes, our most important
WIND TECHNOLOGY
freshwater source that we share with our American cousins,
While the Niagara Region of Ontario is known worldwide for
are the largest system of fresh, surface water on earth,
its magnificent waterfalls and associated hydro power, it also
containing roughly 20 percent of the world’s freshwater supply.
has a series of national and international wind investments
With 10 percent more clean-technology companies than
by companies including Capital Power Corp., Enercon Canada
any other province in the country, and 900 water-industry-
Inc., Niagara Region Wind Corp. (NRWC), NextEra Energy
specific companies, the Ontario government’s Water Sector
Canada, Senvion SE (formerly REpower Systems SE), Samsung
Strategy also includes targeted provisions for growing the
Renewable Energy Inc., and TSP Canada Towers Inc.
water industry and maintaining its position as a global water innovation leader.
The wind power infrastructure investment leverages the province of Ontario’s visionary Green Energy Act of 2009
LOCATION CANADA | 2014
C21
CANADA that helped ignite growth in the production of clean and
Inc., announced an investment of US$12 million for a
renewable energy. Since 2009, Ontario’s Clean Energy Strategy
7,000-square-meter Ontario facility to manufacture thin-film
is helping to build on the $27 billion in private-sector clean
solar laminates. And a German company, KACO new energy
energy investments attracted to the province. Ontario’s clean-
Inc., opened KACO Canada in London, Ontario, to produce as
energy sector has already created 31,000 jobs, and more than
much as 0.7 GW of inverters.
30 clean-energy companies have set up shop in the province. Foreign companies — including Denmark’s Avanti Wind
SMART GRID TECHNOLOGY
Systems, Helukabel USA, Inc., and Synergy Cables USA
Ontario, as well as several other provinces, are inviting clean-
Ltd. — have recently set up shop in Ontario, attracted to
energy technology companies from around the world to invest
its wind energy ecosystem. And wind turbine manufacturer
in research and development and advanced manufacturing to
PowerBlades Inc., a wholly owned subsidiary of German-
help improve electricity systems worldwide.
based Senvion SE (formerly REpower Systems SE),
The new Cisco Chair in Smart Grid will focus research on
chose Welland, also in Ontario’s Niagara Region, as the site of
the full integration of information science and technology
a blade production factory that will serve the province’s wind
concepts for the power grid in order to enhance its effective
project needs as well as supply the rest of the North American
performance of key components such as storage and
market.
renewable resources. The new Chair is part of Cisco’s ongoing
And, in 2011, Korea-based Daewoo Shipbuilding & Marine Engineering (DSME) celebrated the grand opening of a stateof-the-art wind tower manufacturing facility in Trenton, Pictou County, Nova Scotia, known as DSTN.
sponsorship of research initiatives at the University of Waterloo, Ontario. The 200,000-square-foot, $40 million GE Grid IQ Global Innovation Centre in Markham, Ontario, is designed to foster innovation and global collaboration to improve the efficiency,
SOLAR TECHNOLOGY
reliability, and security of the world’s electrical grids.
Last year, Swiss-based ABB Ltd., the leading power and automation technology group, and its Ontario consortium
FEDERAL GOVERNMENT HELP
partner Bondfield Construction, won an order from Canadian
Canadian clean-technology companies in every province
Solar Solutions to supply a 100-megawatt (MW) turnkey
have some highly targeted help at the federal government
photovoltaic (PV) solar project for the Grand Renewable
level. As a key contributor to the dominant concentration
Energy Park in Ontario. The project is part of a $5 billion
of clean-technology companies across Canada, Sustainable
investment by Samsung Renewable Energy and partners to
Development Technology Canada (SDTC) helps energize
create a green energy cluster of wind and solar power, sources
the development and demonstration of a clean-technology
with the capacity to generate 1,369 MW of renewable energy.
ecosystem that can — and should — be taken advantage
Going back a few years to 2010, Enbridge Inc. and First
of by international clean-tech companies. With over $600
Solar, Inc. achieved commercial operation of the 80 MW
million allocated to more than 246 technology projects across
Sarnia, Ontario, Solar Project, one of the largest operating PV
Canada, Sustainable Development Technology Canada has
facilities in the world. It generates about 120,000 MWh per
successfully leveraged an additional $2.2 billion in funding
year of emissions-free power, enough to power about 12,800
from project partners including global clean-technology
homes.
companies.
The following year, Algatec Solar AG, Germany, announced
Sorry if you already knew about Canada’s clean little secret,
a facility in Windsor-Essex, Ontario, and an investment of $10
but we Canadians want to make sure the world knows about
million in the province. Algatec Solar Ontario manufactures
our success. ••
photovoltaic (PV) modules. In Windsor-Essex, United Solar, a subsidiary of U.S. company Energy Conversion Devices
C22
LOCATION CANADA
Note: All figures in this article are Canadian dollars unless noted otherwise.
AREA0303.indd 1
21/07/14 8:33 PM
LEDUC-NISKU Where Innovation & Entrepreneurialism
CONVERGE Leduc-Nisku Economic Development Association
Alberta’s International Region is the area located 20 kilometers south of Edmonton, Alberta’s capital city. The region is comprised of Leduc County, the city of Leduc, the towns of Beaumont, Calmar, and Devon, as
comprehensive transportation networks in North
well as the villages of Thorsby and Warburg.
America, which includes an international airport
Ranked one of the Top 25 Places To Do
with advanced cargo capabilities and 24-hour
Business in Western Canada (Alberta Venture,
operations. Access to an expanded intermodal
2012), there is opportunity in Alberta’s
rail yard and both the High Load Corridor and
International Region. A diversified industry
CANAMEX Trade Corridor (which connects
Rod Valdes
portfolio — including energy (upstream oil
Canada with the United States and Mexico by
Business Development
and gas), agri-foods, advanced manufacturing,
road) combine to provide easy access to major
Officer
logistics, and retail/commercial opportunities —
national and international markets.
5911 50 Street,
encourages a broad range of business investment.
Leduc, Alberta, Canada T9E 6S7 Office: 780-986-9538 Toll Free: 1-844-986-9538 Fax: 780-986-1121
Regional assets such as the Agrivalue
in population over the last eight years. More
Development Centre, Enform Training Facility,
than 56 percent of the regional population has
Canadian Welding Bureau Advanced Training
postsecondary education providing access to a
Centre, Canadian North Pilot Training Centre,
talented and skilled workforce.
and CanmetENERGY Devon Research Centre
Business advantages include the lowest
provide infrastructure and services that support
corporate provincial tax rate in the country, no
and enhance the establishment of business
provincial sales tax, capital taxes, or payroll taxes.
ventures within the region. Access to world-class
Our region is a strong, diversified, sustainable, and
postsecondary educational institutions, healthcare
integrated business community that is responsive
facilities, cultural attractions and venues, along with
to growth. Alberta’s International Region is the ideal
the high quality of life observed within Alberta’s
location for business investment due to its
International Region.
strategic location, thriving economic environment,
The region is also home to one of the most
www.internationalregion.com info@internationalregion.com LOCATION CANADA
expansive growth, including a 35 percent increase
Processing Business Incubator, Food Processing
recreation and extracurricular activities add to
C24
Alberta’s International Region has witnessed
competitive tax regime, and market access.
CENTREPORT C ANADA NORTH AMERICA’S Prime Development Opportunity
CentrePort Canada Inc.
CentrePort Canada Inc. is a tri-modal inland port (rail, truck, and air cargo) and Foreign-Trade Zone located in the heart of North America
offers big-city advantages such as abundant
in Winnipeg, Canada — a major metropolitan
labor, a skilled workforce, and training incentives;
center, which ranked first in 2014 as the most
competitive wages (15–25 percent lower than
cost-competitive city for business in the North
Ontario and Western Canada); and a diverse
American Midwest.
manufacturing industry of original equipment
With Winnipeg outperforming 26 major cities such as Chicago, Denver, Minneapolis, and Phoenix (KPMG), many high-profile companies call
manufacturers, tier 1 suppliers, and secondary suppliers, making raw materials easier to source. CentrePort also provides a clear transportation
CentrePort home: Boeing Canada, Magellan, Paterson
advantage — shipping to Williston from Winnipeg is 20
Diane Gray
Global Foods, Bison Transport, Winpak, and North
to 50 percent cheaper than from other regional centers’
President and CEO
West Company.This low-cost and location advantage
cities (Chicago, Kansas City, Oklahoma City, Denver, and
Suite 100-259
has also helped to attract more than 30 new
Houston), while shipping times are up to 75 percent
Portage Avenue
companies to CentrePort’s 20,000-acre footprint.
faster (comparison for a Canadian trucking company
Winnipeg, MB, Canada R3B 2A9 204-784-1300 Fax: 204-784-1308
Located just one-hour north of the U.S. border at Pembina-Emerson, CentrePort offers direct access
shipping LTL for 1,000- and 5,000-lb. pallets). Being at CentrePort has other benefits —
to a North American consumer population of 100
combined corporate taxes are 33 percent lower in
million living within a 24-hour drive, and is at the
Canada than the U.S., employee healthcare costs
hub of international trade corridors heading in all
are government-funded, and Winnipeg has the
directions, including south to the U.S. and Mexico and
lowest published energy costs in North America.
east-west along Canada’s Asia-Pacific Gateway. CentrePort is particularly well positioned for
As Canada’s only tri-modal inland port, significant public investment has been made in
companies servicing resource-rich developments
improving highways. A new $212 million CentrePort
including North Dakota’s Bakken oil fields (400 miles
expressway is now open and moving cargo more
to Williston); Ontario’s “Ring of Fire” (438 miles to
quickly and efficiently. CentrePort also features a 24/7
Thunder Bay); Saskatchewan’s potash region (356
international cargo airport, and access to three class-
miles to Regina); northern Manitoba’s hydro and
one railways (CN, CP, and BNSF).The corporation is
mining developments (473 miles to Thompson); and
currently developing a common-use rail facility and
Alberta’s oil sands (1,015 miles to Fort McMurray).
adjacent industrial park for rail-intensive business.
With Winnipeg being the nearest major city to the Bakken (population over 700,000), CentrePort
www.CentrePortCanada.ca Diane.Gray@CentrePortCanada.ca
With these advantages, industrial land at CentrePort is ideal for manufacturing and assembly, warehousing and distribution, agribusiness, food processing and packaging, and transportationrelated logistics. LOCATION CANADA | 2014
C25
NEW BRUNSWICK NEW BRUNSWICK — Your Natural Choice
Invest New Brunswick
Invest New Brunswick is your single point of contact for companies and site selection professionals exploring business locations and expansion opportunities in New Brunswick, Canada.
New Brunswick wants to be your long-term business partner.Tailor made incentives — including
New Brunswick is strategically located along
payroll rebates, capital cost programs, research and
the Eastern Seaboard of North America, bordering
development funding, and regional funding — are
the state of Maine. New Brunswick has a time
designed not only to attract you, but also to help
zone advantage (GMT - 4:00) and is connected to
grow your investment.
worldwide markets by land, sea, rail, air and leadingedge fiber-optic technology. Our seaports are closer
Sectors of Interest:
Jonathan Barteaux, Director,
to Europe than any U.S. seaport, and we have two
• Advanced manufacturing
Foreign Investment
ice-free deepwater ports for year-round efficient
520 King Street, Suite 850
shipping.
• Aerospace and defense — land-based systems and simulation and technology • Mining • Information technology • Finance
Fredericton, New Brunswick CANADA 1-855-746-4662 Fax: 506-444-4277
Invest NB’s focus is to develop foreign direct investment opportunities by providing the necessary
• Insurance
support and incentives to ensure the success of your
• Back office operations
business. Our programs are designed to make your expansion or new business venture trouble free by
KPMG’s 2014 Competitive Alternatives study once
working with you through every step in the process.
again confirmed New Brunswick as the lowest
Your success means our success.
cost business location in Canada and the United States.The study revealed that labor costs in New
A personal Investment Officer will provide
and 15 percent lower than the G7 average, while
consultation and assistance; sourcing of realtors,
European companies can potentially reach up to 20
developers, contractors, shippers, and utilities; as
percent savings on their total operating costs. New
well as a tailor-made financial incentive package,
Brunswick’s cost advantage continues to provide
while acting as your liaison with local communities,
foreign companies with opportunities for a stronger
and more.
bottom line.
www.investnb.ca C26
LOCATION CANADA
Brunswick are 16 percent lower than the U.S. average
turnkey services including recruitment and training
Make your natural choice. Invest in New Brunswick, Canada.
O N TA R I O, C A N A D A
Ontario Investment and Trade Centre
35th Floor, Eaton Centre P.O. Box 1 250 Yonge Street Toronto, Ontario M5B 2L7 Canada
1-416-313-3469 (international) Toll-free: 1-800-819-8701 (North America) Fax: 1-416-325-6375
Smart business leaders across industries are increasingly recognizing Ontario as an exceptionally sound and stable place to do business. Ontario generates 37 percent of Canada’s national GDP and is home to almost 50 percent of all employees in high tech, financial services, and other knowledge-intensive industries. Locating in Ontario gives companies access to the $19 billion NAFTA market and its more than 470 million consumers. Competitive Business Costs According to KPMG’s Competitive Alternatives 2014, Canada offers the greatest overall business cost advantage in the G7, with business costs 7.2 percent lower than the U.S. average. In addition, Ontario’s corporate income tax rate is lower than the average of G20 countries and lower than the average federalstate CIT rate in the United States. Both help make Ontario one of the most competitive jurisdictions for new business investments. A Top Destination for FDI Ontario, Canada, continues to far outperform its competitors as the number-one jurisdiction in North America in attracting foreign direct investment (FDI) projects. According to the 2014 FDI Intelligence (a division of Financial Times), in 2013 Ontario attracted $7.23bn in FDI, accounting for more than one-tenth of FDI in North America. Most Educated Workforce in the G7 Sixty-four percent of Ontario workers have
a postsecondary education. With 20 universities and 24 colleges available for students to train in all disciplines — from skilled trades to the most advanced areas of science, engineering, and business — it is no wonder Ontario has the most educated workforce in the G7. Fifty Percent Reduction in R&D costs Ontario’s R&D incentives are among the most generous in the world. New ideas flourish in Ontario, where more than $14.6 billion is spent on research and development each year by industry, governments, hospitals, academic and research institutions, and private nonprofit organizations. Making Investing Easy Ontario offers a one-window investment service for multinational companies, providing information, advice, and introductions to the people networks that make investing in Ontario easy. In addition, the recently launched InvestmentReady Certified Site Program provides easy access to key information about properties, including locations and ownership, transportation access, utilities servicing, and complete due-diligence information. Ontario’s environment of innovation, competitive business costs, and access to market make it one of the world’s most dynamic regions for business investment.
InvestInOntario.com info@investinontario.com LOCATION CANADA | 2014
C27
C I T Y O F B R A M P TO N City of Brampton Economic Development Office 2 Wellington Street West Brampton, ON, Canada, L6Y 4R2
With a population approaching 600,000, Brampton is the ninth-largest city in Canada and the third largest in the Greater Toronto Area (GTA). Brampton is the second-fastest-growing city in Canada, averaging growth of 4.2 percent per year (or 18,000 new residents annually). With a median age of 34.7, this young, educated, and multicultural workforce of 171,000 strong continues to grow, with residents representing more than 209 different cultures and speaking more than 89 languages. Adjacent to Canada’s largest airport, Toronto Pearson International, Brampton is home to the largest intermodal railway terminal in Canada and has immediate access to an extensive network of transcontinental highways. At the center of Canada’s major transportation corridors and located near the U.S. border, Brampton is within a day’s drive of 158 million consumers. Brampton has a successful, diversified economy and is home to more than 8,600 businesses. Seventy-two percent of Brampton’s economic base is comprised of
www.brampton.ca/b-more 905-874-2650 1-888-381-BRAM
service-producing companies and 28 percent is comprised of goods-producing companies. With all that Brampton has to offer, it’s no wonder companies like Medtronic, Coca-Cola Bottling Company, and Loblaw are headquartered here. Awards/Designations • Voted Top-10 American Cities of the Future — Best Business Friendliness and Best Infrastructure, Mid-Sized City 2013/14 — FDI Magazine (Financial Times of London) • AAA credit rating designated by Standard & Poor’s, eight consecutive years • Designated by the World Health Organization as an International Safe City
Experience what a people-powered economy can do for you. It all begins at the City of Brampton.
C28
LOCATION CANADA