Location Canada 2014

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.

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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

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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

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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.” ••

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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

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LOCATION CANADA

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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.

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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

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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. ••

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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

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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

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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

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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.

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LOCATION CANADA