Location Canada 2016 by Area Development

CANADA

Annual 2016

Minister’s Message: Canada’s Competitive Advantage Looking to Canada to Satisfy Your Workforce Needs A Leader in FDI Attractiveness The “Northern Secret” of Canada’s Cities Revealed Connecting to the World from Canada www.locationcanada.com

Feel free to judge us by the companies we keep. Join industry-leading businesses like Canon Canada, Coca-Cola, Rogers Communications, Air Canada and Loblaw who call Brampton home. A young, educated, highly skilled and multicultural workforce. A strong economy. World-class transportation corridors to major markets. Room to grow. Need we say more?

Discover why weâ&#x20AC;&#x2122;re the best business decision youâ&#x20AC;&#x2122;ll ever make. peoplepoweredeconomy.ca

Brampton, Ontario, Canada

AREA0599.indd 1

21/07/16 6:23 PM

CANADA MESSAGE FROM CANADA’S MINISTER OF INTERNATIONAL TRADE

As Canada’s Minister of International Trade, it gives me great pleasure to welcome readers of the 2016 edition of Location Canada. There has never been a better time to invest in Canada. Our country offers investors an attractive business environment, abundant human and natural resources, and vibrant, connected communities with the highest quality of life among 60 countries. Canada’s real competitive advantage is its people. Canada offers businesses the most educated talent pool among OECD countries. Canadians are also global citizens with connections to the rest of the world. Together, Canadians have created a stable and inclusive democracy with world-class clusters of innovation and government as a supporting partner. Canada’s dynamism is reflected in our economy. Forbes, Bloomberg and the Economist Intelligence Unit all rate Canada as the best country in the G20 to do business. According to KPMG’s 2016 Competitive Alternatives, overall business costs in Canada are 14.6 percent lower than the U.S. KPMG also concluded that the federal government’s commitment to driving investment in transportation, climate mitigation, and social infrastructure will continue to make Canada an attractive investment location. In addition, Canada’s total business tax rate is the second-lowest in the G20. It should come as no surprise that a survey of more than 4,000 business decision-makers ranked Canada as the best country in the world to headquarter a company.

Furthermore, Canada’s economy is highly integrated into the North American economy and benefits from the region’s cross-border supply chains. In 2018, we will celebrate the 25th anniversary of the North American Free Trade Agreement (NAFTA) with the U.S. and Mexico. Since NAFTA entered into force, Canada has added trade agreements in Central and South America, Asia, and Europe, and our Comprehensive Economic and Trade Agreement (CETA) with the European Union is expected to enter into force in early 2017. CETA is one of the most ambitious and progressive trade agreements ever concluded by either Canada or the EU. When it comes into force, Canada will have free-trade agreements with more than 40 countries with nearly 1.2 billion consumers and a combined GDP of almost US$39 trillion, making Canada an ideal base for any company. Canada is open for business. With our solid banking system, deep and highly skilled talent pool, innovative entrepreneurs, low taxes, easy access to markets, generous support for research and development, and strong commitment to free and open trade, Canada should be your preferred destination for investment. A key part of my mandate is to make Canada an even better place to invest. This includes working to facilitate access to the services foreign investors need to make investing in Canada more attractive. I invite you to learn more about Canada’s competitive advantages within these pages and on our Invest in Canada website.

The Honourable Chrystia Freeland MINISTER OF INTERNATIONAL TRADE 2016 53

CANADA CONTENTS Business Environment of the G-7 Countries, Rank For Forecast Period 2016–2020 1st 2nd 3rd

Rank

4th 5th 6th 7th

Canada

U.S.

U.K.

Germany

France

Japan

Italy

Source: The Economist Intelligence Unit, May 2016

ADS/PROFILES MANITOBA

61, 69

CentrePort Canada — North America’s Largest Tri-Modal Inland Port DGray@CentrePort.ca www.CentrePortCanada.ca

53 Minister’s Letter

61, 69

FEATURES

56 Canada: A Leader in FDI Attractiveness

Canada’s new federal government is expected to build on the nation’s already enviable position for foreign direct investment, which is enhanced by numerous tax and other financialincentives.

62 The “Northern Secret” of

Canada’s Cities Revealed

Advanced technology companies are drawn by Canada’s overall cost and other advantages, while recognizing the synergism found in its urban centers. Published by:

54 LOCATION CANADA

Winnipeg: Say YES! to Winnipeg

64 Looking to Canada to

Satisfy Your Workforce Needs

The solution to the high-skills talent gap is closer than you think.

vince@yeswinnipeg.com www. economicdevelopmentwinnipeg.com

ONTARIO

52, 70

Brampton — A People-Powered Economy

67 Connecting to the

World from Canada

Canada’s logistics infrastructure and trade connections can be quite beneficial to foreign investors and shippers.

edo@brampton.ca PeoplePoweredEconomy.ca

66, 72

Quinte Economic Development Commission chris@quintedevelopment.com www.quintedevelopment.com

55, 71 400 Post Ave. • Westbury, NY • 11590 516-338-0900 www.areadevelopment.com

lmagyar@cityofwoodstock.ca www.cometothecrossroads.com

Industry is at a Crossroads. It’s called Woodstock, Ontario, Canada.

On highways 401 and 403, at the junction NE "@M@CH@M /@BHƥB @MC "@M@CH@M -@SHNM@K Q@HK RDQUHBD Ŕ @S SGD KNFHRSHB@K BQNRRQN@CR NE -NQSG America – Woodstock sees enough business to know how much – and how rapidly – our world is changing. At the intersections of industry and agriculture, productivity and sustainability, and the last economy and the next one, here’s a place that doesn’t just support how business is done today – here’s a place that also supports how business will be done tomorrow. 519-539-2382 x2115 information@cityofwoodstock.ca cometothecrossroads.com

AREA0442.indd 1

14/07/15 9:35 PM

CANADA CANADA: A LEADER IN FDI ATTRACTIVENESS Canada’s new federal government is expected to build on the nation’s already enviable position for foreign direct investment, which is enhanced by numerous tax and other financial incentives. By HOWARD SILVERMAN, President & CEO; and MARC BEAUCHAMP, Vice President & Partner;

The CAI Global Group

Business Environment of the G-7 Countries, Rank For Forecast Period 2016–2020 1st

CANADIAN TAX ENVIRONMENT As in the past, Canada encompasses the lowest total 56 LOCATION CANADA

3rd 4th

Rank

anada remains a favorable destination for foreign direct investors. In comparison to its G-7 counterparts — the United States, Germany, United Kingdom, Japan, France, and Italy — Canada ranks first for its business environment for the forecast period 2016–2020, according to the Economist Intelligence Unit. Additionally, Canada’s infrastructure investment index, which measures the potential for investment and growth in economic infrastructure, is the best in the G-7. The ease of which a corporation can establish itself in Canada in comparison to the other G-7 members is astonishing. According to the World Bank Group, it requires 1.5 days to establish a business in Canada, while the OECD average entails 8.2 days. This is primarily due to the low level of Canadian procedural requirements — two in Canada versus five as an OECD average. In addition to the low regulatory processes, Canada possesses the lowest business costs. According to KPMG’s annual “Competitive Alternatives” study, Canada, once again, ranks first with the highest percentage cost advantage relative to its neighbor to the south — the United States. In fact, Canada dominated in the digital, research and development, manufacturing, and corporate services industries. When breaking down the manufacturing industry, Canada encompasses the lowest cost in all the sub-categories in manufacturing: aerospace, agri-food, automotive, chemicals, electronics, green energy, medical devices, metal components, pharmaceuticals, plastics, precision manufacturing, and telecommunications.

2nd

5th 6th 7th

Canada

U.S.

U.K.

Germany

France

Japan

Italy

Source: The Economist Intelligence Unit, May 2016

corporate tax rate in the G-7, at 21.1 percent, with the UK and the U.S. following at 32 percent and 43.9 percent, respectively, according to PricewaterhouseCoopers’ “Paying Taxes 2016” report. In addition to the low corporate tax rate, Canada possesses several tax credits that are beneficial to corporations entering or expanding within the country, as follows: SR&ED: One of the primary tax credits is the Scientific Research and Experimental Development (SR&ED) credit. This credit has dual benefits as it allows corporations to deduct the eligible expenditures from income for tax purposes; additionally, it provides an investment tax credit, ITC, which enables a corporation to reduce their income tax payable. If the claimant is a CCPC, Canadian-controlled private corporation, it can obtain 35 percent of the SR&ED expenditures as a 100 percent qualified refundable ITC, up to a maximum of $3 million. If the expenditures are not SR&ED qualified, the rate drops to 15 percent. All other corporations, nonCCPC, can obtain a non-refundable ITC at a rate of 15

percent, which can be utilized to minimize the tax payable.

“

The ease of which a corporation can establish itself in Canada in comparison to the other G-7 members is astonishing.

Regulation 102 New Certification Tax Waiver: Many multinational corporations desire to send employees for work into Canada. However, due to the additional income tax consequences, not all employers are willing to do this. Employment income earned by non-residents in Canada is taxable at the same rate and regulation as that earned by residents employed in Canada. Regulation 102 allows for the exemption of such taxes to be paid by non-residents on the condition of a tax treaty being present between Canada and the non-resident’s country of residence. In the past, the employer had to submit an application for each non-resident employee. However, as of January 2016, the Canada Revenue Agency has created a new certification tax waiver permitting the employer to submit one application for all of its non-resident employees, thus easing the process for foreign companies to send their skilled labor to Canada to work and train at their Canadian subsidiaries. The limitations to the tax waiver are as follows: U.S. residents who expect to earn no more than $10,000 or residents of a country with a tax treaty with Canada who expect to earn no more than $5,000. Additionally, the employee can only be employed up to 45 days in Canada and can only remain in the country up to 90 days in order to qualify for Regulation 102.

Additionally, the holiday permits companies to be tax exempt from contributions to the HSF, Health Service Fund, for the portion of employee salaries allocated toward the investment project.

PROVINCIAL ATTRACTION The Canadian federal and provincial governments have always been strongly supportive in the growth of the business community. Whether to expand a local business or attract foreign corporations to establish themselves in Canada, the governments have often provided financial assistance in the form of grants, loans, and tax benefits in order to grow the economy. The largest provinces in Canada by population are Ontario, Quebec, and British Columbia. Naturally, these provinces also attract the greatest proportion of FDI, and they also offer attractive incentives for business growth.

“

Quebec’s Large Investment Tax Holiday: As the name states, the tax holiday can be granted for large investments projects within the province of Quebec. Such projects consist of $100 million in investment within the industries of manufacturing, wholesale trade, warehousing and storage, and data processing and hosting. The tax holiday lasts throughout 15 years and may not exceed 15 percent of the total eligible investment expenditures. The benefit created by the program permits companies to be exempt on future income taxes generated due to the profits from the investment project.

Ontario: In 2015, Ontario launched the Jobs and Prosperity Fund (JPF). The duration of the fund is 10 years and its resource value is $2.7 billion. The JPF encompasses three streams of business: new economy, food and beverage growth, and strategic partnerships. The new economy stream concentrates on investment projects valued at a minimum of $10 million in eligible costs within the key sectors of advanced manufacturing, life sciences, forestry, and technologies. The food and beverage growth stream is tailored to companies in food, beverage, and bioproduct production with projects totaling a minimum of $5 million in eligible costs. The third stream, strategic partnerships, concentrates on partnerships within the key sectors listed in the new economy stream with projects totaling a minimum of $10 million. The JPF emphasizes projects that entail the following three criteria: incremental productivity, incremental exports, and innovation. Furthermore, the 2016 Ontario budget included the Business Growth Initiative, which will commit $400 million over the next five years. The initiative focuses on growing small and medium-sized businesses, while helping them to compete in international markets. It will also be highly Continued on page 60 2016 57

The Canadian FDI Forum 1st EDITION

Canada’s Competitiveness in Attracting and Retaining FDI The Omni King Edward Hotel, Toronto October 30 - November 1, 2016

PLAN TO ATTEND The Canadian FDI Forum is a limited seat boutique-style conference that provides Canadian EDOs at all levels and in all jurisdictions valuable insights and understanding of the current environment that makes Canada attractive for FDI. Area Development’s Consultants Forum, in cooperation with the CAI Global Group, is pleased to introduce the first Canadian FDI Forum whose program focuses on the key FDI investor interests and how Canada can best attract and expand FDI to jurisdictions within each province. This Forum provides Canadian EDOs with an opportunity to

hear the perspectives on the current investment criteria and how they affect the global site selection process. The program’s site selectors, industry leaders, site consultants, and location experts will provide delegates with information on best practices in their pursuit of foreign direct investment mandates.

Best Practices That Attract FDI This Forum presents an outstanding roster of speakers and panelists to discuss Canada’s advantages in policy, taxation, select markets, and workforce among other factors that can make your location an optimal choice for industrial and technology FDI.

Corporate Panelists: Winpak BackOffice Associates Ericsson Canada GSK Pharma Canada Bridgestone Consultants & Thought Leadership: Lawrence National Centre for Policy and Management Fisher & Phillips (former Toyota Motors North America) Werner Enterprises Cushman & Wakefield Site Selection Group The CAI Global Group Provincial Panelists: Opportunities New Brunswick Investissement Québec Ontario Ministry of Economic Development and Growth (More Speakers to be Announced)

For more information contact: Marc Beauchamp Vice President and Partner

CAI Global Group 615 René-Lévesque Blvd. West, Suite 1120 Montréal (Quebec) H3B 1P5 T: 514.982.0095, ext. 224 • F: 514.982.0096 m.beauchamp@caiglobal.com

The CAI Global Group is a consulting firm offering expertise in investment projects including financial incentives, site selection, and business strategies on the retention, expansion, and attraction of investment projects for multinational, national, and domestic companies. CAI offers economic development strategies based on the in-depth knowledge and hands-on experience of what investors are looking for in choosing an investment location for greenfield investments or reinvestment. 58

AREA DEVELOPMENT

Dennis Shea President/Publisher

Area Development Magazine The Consultants Forum 400 Post Ave, Westbury, NY 11590 T: 800.735.2732 ext. 208 • F: 516.338.0100 d s h e a @ a re a d e v e l o p m e n t . c o m

Area Development is considered the leading publication covering corporate site selection and relocation. Providing content since 1965, Area Development provides insight into the key factors, issues, and criteria that affect a successful location decision. The Consultants Forum has produced more than 50 events focused on the best practices for economic development when dealing with the corporate site selection process, trends, and policies.

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Program (as of August 12)

National Perspectives on Canadian FDI Policy Sunday 5:00 PM 6:00 PM 7:00 PM Monday 7:30 AM 8:30 AM 9:00 AM 9:45 AM 10:00 AM 11:00 AM 11:45 AM 1:15 PM 2:00 PM 3:15 PM 3:30 PM 4:30 PM 5:15 PM 6:00 PM 7:00 PM Tuesday 7:30 AM 8:30 AM 8:45 AM 9:30 AM 10:15 AM 10:45 AM 11:30 AM 1:00 PM 2:00 PM

Platinum

Registration Speaker and Sponsor Private Reception Opening Reception and Networking Dinner Networking Breakfast Opening Remarks Current FDI status and trends in Canada and beyond Networking Refreshment Break Canada’ global competitiveness for North American investment The U.S. experience in supply chain development and reshoring: what’s in it for Canada? Networking Luncheon Survey Review: Area Development’s First Annual Canadian Corporate and Consultants Survey Site Selectors’ Panel: A U.S. site selector’s perspective on Canada as an investment location Networking Refreshment Break Canadian executives of foreign multinationals on selling Canada to their U.S. and international investors Breakout roundtable sessions with panel executives and speakers End of Day One Networking Reception On the Town Dining - A free evening Speakers & Sponsors Dinner Networking Breakfast Welcome to Day Two - Opening remarks Economic development officials panel discussion on workforce development Economic Gardening: An affordable way of retaining and increasing foreign investment Networking Refreshment Break Ask Anything Q&A Closing Remarks Networking Luncheon Conference Closes

SPONSORS Gold

Silver

To Register: http://www.areadevelopment.com/consultantsforum/

AREA DEVELOPMENT | Q3/2016

CANADA Canada: A Leader in FDI Attractiveness Continued from page 57

10 9

Number of Procedures*

8 7 6

6 5

5 4 4 3

2 1 0

Canada

U.K.

France

Italy

OECD Average

U.S.

Japan

Source: Doing Business in 2016 – The World Bank Group, 2015 * A procedure is defined as any interaction of the company founder with external parties (government agencies, lawyers, auditors, notaries, etc.)

Infrastructure* Investment Index — G-7 Ranking 1st 2nd 3rd

Rank

4th 5th 6th 7th

Canada

U.S.

U.K.

Japan

Germany

France

Italy

Source: Global Infrastructure Investment Index, ARCADIS NV Consulting, May 2016 * Economic infrastructure is the core internal facility of a country that makes business activity possible, such as communication, transportation, distribution, finance, and energy supply.

driven by innovation and modernizing the regulatory system in order to ease the barriers to growth. Quebec: In 2015, the Quebec government stated its plan to invest $1.5 billion in the Maritime Strategy Program and $1.3 billion in the Plan Nord Strategy Program. In January 2016, Investissement Quebec, the provincial investment organization, updated the ESSOR program. This program is jointly controlled by Investissement Quebec and the Ministry of Economics, Science and Innovation. The program focuses on capital asset projects with expenditures over $250,000 and can provide an interest-free loan up to 50 percent of the eligible project costs. 60 LOCATION CANADA

Germany

The 2016–2019 Quebec Strategic Plan also outlined new, attractive investment incentives. The province plans on providing financing options to companies valued at $967 million, $1.021 billion, and $1.068 billion in years one, two, and three, respectively. British Columbia: Besides its logistical advantage to Asia, British Columbia provides several tax benefits for corporate investors. The International Business Activity (IBA) program refunds all income taxes paid on income that was earned on eligible international business activities. The province also exempts any provincial sales tax on the purchase of eligible machinery and equipment. Additionally, importation of innovative and technologically superior machinery and equipment is not subject to tariffs or duties. The province has been concentrating on investing in research and technological innovation. Some $415 million was invested in research infrastructure under the British Columbia Knowledge Development Fund; $152.5 million was invested in a world-class DNA research project; and $40.5 million was invested in the Centre for Digital Media.

FEDERAL SUPPORT The year 2016 began with a new federal government. As with all new governments, budgets are created and programs are later initiated to carry out the budgetary promises. To date, the budget has a strong stance on innovation and environmental benefits for the economy. The federal government is investing $2 billion over two years in the Low Carbon Economy Fund to support the reduction of greenhouse gas emissions. It also plans on investing $800 million over four years in support of innovation. No new specific program has been publicized to date; however, it will be interesting to see what programs become available in order to grow Canada’s already favorable FDI position. ••

Winnipeg

Best for FDI strategy and business friendliness among midsized cities in the North American midwest, as ranked by fDi Magazine in its American Cities of the Future 2015/16 report

Manitoba, Canada

OF A KIND CentrePort Canada, the country’s only trimodal inland port and foreign trade zone

Lowest business costs in Western Canada and lower than every U.S. city among municipalities surveyed, as ranked by KPMG Competitive Alternatives 2016

WE’RE HERE FOR YOU

Invest in a cost-competitive city celebrated for its diverse and stable economy, a place teeming with the talent to help accelerate your success. Winnipeg is home to CentrePort Canada, North America’s largest inland port, offering unparalleled access to world-class truck, rail and air cargo operations. Discover Winnipeg’s unique economic advantages at economicdevelopmentwinnipeg.com or call +1-204-954-1997.

AREA0623.indd 1

Connect your business to the world at centreportcanada.ca or call +1-204-784-1300.

18/08/16 9:14 PM

CANADA THE “NORTHERN SECRET” OF CANADA’S CITIES REVEALED Advanced technology companies are drawn by Canada’s overall cost and other advantages, while recognizing the synergism found in its urban centers. By MICHAEL DARCH,

he success of large U.S. suburban innovation centers like San Jose and Raleigh-Durham has created a hot-house effect of sky-high prices for rent and housing, extended commute times between disparate corporate campuses and research parks, and bidding wars on both talent and emerging companies. So while it’s easy to follow the path most travelled, there’s a northern secret being shared by global facility and workforce planning managers. Companies like Boeing, GE Aviation, Google, and Ubisoft are investing in Canada’s top 11 cities — Toronto, Montreal, Vancouver, Ottawa, Calgary, Waterloo Region, Quebec City, Winnipeg, London, Halifax, and Saskatoon. Let’s find out why.

CANADA’S OVERALL COST ADVANTAGES When it comes to the cost of doing business, Canada’s value proposition shines. Canada offers a 14.6 percent cost advantage overall to the U.S. according to KPMG’s Competitive Alternatives 2016 report. In knowledge-based services, Canada’s cost advantage is even more pronounced; R&D costs are 27.7 percent less expensive and digital services delivery is 26 percent cheaper than the U.S. baseline, beating every other country in the G7 by 5 percent–15 percent.1 Zooming out to the G20, Forbes rates Canada number one in the top-10 countries for business. And in a world of growing fiscal uncertainties, the financial infrastructure buttressing the cost advantages of Canadian cities is also rock solid. The World Economic Forum declared Canada’s banking system to be the soundest in the world for the eighth consecutive year running.2 Canada is also the most tax-competitive country in the G7, where total business tax costs are a very meaningful 46 percent lower than those in the U.S. In 62 LOCATION CANADA

President, Consider Canada City Alliance Inc.

Prime Minister Justin Trudeau helps to open the Google offices in the Waterloo region.

fact, KPMG rates Toronto, Vancouver, and Montreal the top three cities for tax competitiveness among 51 major international cities with populations of two million or more. SUPPORTING ECOSYSTEMS IN CANADA’S CITIES A Financial Times article entitled “Cities Not Countries are the Keys to Tomorrow’s Economies”3 underlined the importance of cities. It states, “To make wise decisions, investors and policymakers need to view the world not so much as a collection of countries but a network of cities…City economies now matter far more than national ones.” Globally recognized Canadian prosperity experts like Richard Florida and Don Tapscott underscore the point that Canada’s traditional strengths in resources and agriculture are bolstered by city-based educational institutions, business ecosystems, and valueadded innovation.4 5 Let’s begin with education. Canada offers the most educated talent pool among OECD countries, with 54 percent of individuals aged 25–64 having attained tertiary level education, compared to 45 percent in the U.S. In an age of increasing globalization, these highly educated Canadians are linguistically diverse, with one out of five Canadians speaking one of over

200 languages in addition to the national languages of English and/or French. The Canadian emphasis on education is long-term. In the “Learn Canada 2020” declaration, provincial ministers of education underlined “the direct link between a well-educated population and a vibrant knowledge-based economy in the 21st century; a socially progressive, sustainable society; and enhanced personal growth opportunities for all Canadians.”6 As to urbanization, Canada is known as a large and sparsely populated country, but many sophisticated location managers don’t realize that its vast land mass shelters a highly urbanized workforce concentrated along the country’s southern border with the U.S. Nearly 81 percent of the population is urban, making Canada surprisingly more city-centric than countries like the UK, Mexico, Taiwan, Germany and, remarkably, even China and India.7 Toronto, Canada’s largest city, is projected to be the 52nd most populous city in the world by 2020.8 Therefore, one could reasonably expect big-city problems, from pollution to transportation issues. Yet Toronto’s 2.6 million residents (there are 6.05 million in the Greater Toronto Area) celebrate The Economist’s ranking in the top five best places to live in the world. Vancouver and Calgary join Toronto on that prestigious list, making Canada the world’s dominant country in the rankings of the world’s top five cities.9 Another insight into Canada’s urban success stories is its ability to span its vast geography with what the Brookings Institution refers to as “networking assets,” or the relationships between entities — individuals, firms, and institutions — that have the potential to generate, sharpen, and accelerate the advancement of ideas. According to Brookings, strong ties occur between these assets when people or firms with a working or professional history that have higher levels of trust are willing to share more detailed information, and are more apt to participate in joint problem-solving.10 Let’s look more closely at some of the companies that have found success in Canada’s cities. SOME SUCCESS STORIES Global game developer Ubisoft started investing in Montreal in 1997. The company’s outlook for 2020 foresees $373 million in additional Canadian investment and 500 new jobs. According to Francis Baillet, Ubisoft’s vice president of Corporate Affairs, “Other regions offer one or more of these key success factors, but Greater Montreal stands out because it has succeeded in combining them into a socio-economic model that is closely aligned with our needs.”11 While Ubisoft’s Montreal operation holds the 63 LOCATION CANADA

distinction of being the world’s single-largest game development studio, the company has discovered the advantages of Canada’s urban centers and branched out into Toronto and Quebec City. Last October, the company expanded into a fourth urban center with the acquisition of mobile gaming specialist Longtail Studios Halifax, with plans for another 40-plus staff in that location.12 Google is another multi-city Canadian expansion success story. It was first drawn to the Waterloo Region’s famed institution for technology excellence with a 2007 purchase of a company there called Reqwireless. The University of Waterloo is now “one of our top three recruiting universities for Google as a whole, worldwide,” according to Steve Woods, the company’s senior engineering director in Canada. More than 350 engineers work on Google products in a 185,000-squarefoot office. Google now has several offices in other Canadian cities including Toronto and Montreal, and other leading tech companies have followed its lead on discovering the advantages of Canada’s cities. Apple has announced it will open a 22,000-square-foot space in Ottawa, and LinkedIn, Amazon, Facebook, and Salesforce all also call one or more Canadian locations home. More traditional industries have also found specific attributes in Canadian cities — Boeing and GE Aviation in Winnipeg, for example. Boeing has just completed a 150,000-square-foot expansion of its Murray Park Road site in Winnipeg. The building primarily houses additional work for the 737 MAX and the 787 Dreamliner. “This expansion, which is about the size of 12 Olympic swimming pools, ensures our Winnipeg site has the space and technology needed to build complex composite parts,” says Kim Westenskow, general manager of Boeing Winnipeg. “Placing this work in Winnipeg takes advantage of the local team’s design and manufacturing expertise. We’re very proud to be a top Winnipeg employer with a strong commitment to our local workforce and to the community at large.” “Winnipeg provides all of the benefits and advantages expected in large metropolitan centers,” confirms Daniel Verreault, GE Aviation’s Canadian director. Last year his company announced a $26 million investment into an existing $54 million aviation engine testing, research, and development center, with all upgrades expected to be completed by the fall of 2017. From jet engines and aerospace components to advanced software and digital entertainment, and much more, the northern secret of Canadian cities is one worth exploring. Continued on page 72

2016 63

CANADA LOOKING TO CANADA TO SATISFY YOUR WORKFORCE NEEDS The solution to the high-skills talent gap is closer than you think. By STEPHEN THOMPSON,

Senior Economic Officer, Ontario International Trade and Investment

ith the growing importance of a high-skills workforce, companies are feeling the pressure to tap into the brightest and savviest talent before their competitors. Adding to this pressure is the fact that it is no longer only typical technology companies that are seeking engineers, data analysts, and the like. Technology is disrupting every industry — in fact, in a 2016 PwC survey, 78 percent of U.S. CEOs expressed concern about the speed of technological change in their industry.1 Today, automakers are competing with technology companies like Apple and Google for the best autonomous vehicle technologies. Traditional defense contractors are competing with Silicon Valley giants and startups to advance in-demand technology ranging from data management to precision navigation and cybersecurity. Automation and big data are disrupting what we used to know about supply chain management and logistics. The rate at which the competition is plucking up high-skills talent is startling. The 2016 State of the CIO survey found that 49 percent of chief information officers expect to experience IT skills shortages through the rest of 2016.2 Also, the Harvey Nash/KPMG CIO Survey 2015 discovered that nearly six out of 10 CIOs believe skills shortages will prevent their organizations from keeping up with the speed of change. This represents a one third increase from just three years ago.3 To succeed going forward, companies need to seek talent that is not just smart, but nimble and prepared for the next technological disruption. For this, companies need only to look to Canada. It is consistently ranked by publications, such as Forbes, as one of the best countries for business, and has led all G-7 countries in economic growth over the past decade (2006–2015).4 Not only is Canada close to the U.S. geographically, 64 LOCATION CANADA

The University of Toronto’s Creative Destruction Lab gives students the opportunity to work alongside successful venture entrepreneurs.

but it is also familiar in culture and infrastructure. In addition, Canada continues to bolster its talent through further investments in education. So far, the results are impressive: Canada has the highest availability of qualified engineers in its labor force among G-7 countries, according to a survey conducted by the International Institute for Management Development (IMD). Canada’s largest province, Ontario, boasts the most highly educated talent pool among the Organization for Economic Cooperation and Development (OECD), with 67 percent of its adults having attained a postsecondary-level education, such as a college degree. This is significantly higher than the U.S. (44 percent), UK (45 percent), Germany (36 percent), and Japan (47 percent).5 CANADA: A FAMILIAR FACE AS COMPANIES BRACE FOR THE UNFAMILIAR Today, it is not enough to be book-smart — technology has drastically changed the traditional role

Qualified Engineers Availability Index 8.5 8.25 8.0

7.82

7.81

7.80

index

The University of of engineers. Now, they 7.5 Waterloo’s cooperative not only need to have learning model blends traditional technical 7.0 academic and practical skills, but they must 6.77 experience with an also (1) anticipate 6.5 6.34 impressive conversion new technological 6.27 rate post-graduation: advancements and adapt 6.0 approximately 20,000 quickly, and (2) have students are placed with interpersonal skills to about 6,500 employers understand organizational 5.5 each year.9 Engineering needs and communicate Canada France U.S. Italy Japan U.K. Germany technical information to a students alternate their Source: IMD, Rank among 61 economies considered in the World Competitiveness Yearbook 2016 non-technology audience. academic terms with In its survey, PwC professional experiences reported that 75 percent (e.g., four- to five-month of engineers say that stints at companies). a skilled, educated, and adaptable workforce should Unsurprisingly, the school has produced entrepreneurs be a priority for businesses.6 Advanced programs typically associated with Silicon Valley — e.g., the founders of OpenText, Instacart, messaging app Kik, and within Canada‘s universities — such as at Simon Fraser BlackBerry. University and the University of Toronto — conduct innovative, global research and regularly collaborate with TRIED AND TRUE private industry to commercialize these technological With these educational structures in place, major advancements. By doing so, students are groomed to have an entrepreneurial mindset within the confines multinational companies are flocking to Canada to take of a safe and nurturing place that allows them to advantage of this steady stream of talent. freely test their ideas. This forward-thinking outlook Recently, automaker General Motors (GM) announced is encouraged throughout Canada’s educational it would employ approximately 700 engineers in its system. It may be the reason why Canada ranks first Oshawa, Ontario, engineering center to advance overall for “entrepreneurial abilities” in the Global its autonomous and alternative-fuel vehicles. In the Entrepreneurship Development Institute (GEDI)’s 2015 increasingly competitive and crowded market of Global Entrepreneurship Index (GEI).7 high-tech automobiles, even the auto industry is now competing against Silicon Valley for the best talent. A fitting example of Canada’s collaborative advanced To that end, GM’s CEO Mary Barra recently cited programs is the University of Toronto’s Creative the University of Waterloo as one of the best sources Destruction Lab (CDL), which was created by the for math and science graduates. In fact, the university’s university in 2012. CDL, which has quickly become one graduates are the second most frequently hired in of the fastest-growing venture labs in the world, gives Silicon Valley, according to a 2015 report by Compass.10 students the opportunity to work alongside successful venture entrepreneurs to learn how to evaluate, manage, Though companies face a tightening labor market of and even finance tech startups, using experiential skilled workers, GM’s investment demonstrates that learning methods.8 the best science, technology, engineering, and math (STEM) talent still resides in the United States’ northern To answer the need for skillsets critical to early neighbor. career development, the University of Waterloo’s In addition, Microsoft announced a new engineering Professional Development program (WatPD) is center in Vancouver, British Columbia, called the designed to help students navigate the connections Microsoft Canada Excellence Centre (MCEC). This between the workplace, academic courses, and their new center will employ more than 750 people, the career path. While in the academic setting, students majority fulfilling the company’s need for developers. In are simultaneously prepared for the workforce. 2016 65

CANADA

“

addition to access to talent, the company also cited Vancouver’s proximity to its headquarters in Washington, which allows easier collaboration for major projects. This is a significant advantage for companies to outsource its high-skills talent to a region within close proximity, versus overseas. The ability to be able to access a top-tier talent base outside of the usual suspects, like Silicon Valley, and maintain a collaborative environment is truly an advantage to investing in Canada. Adding to the roster of powerhouses moving to Canada is General Electric (GE). GE Power will move its gas-engine plant from Wisconsin to Welland, Ontario, which is slated to begin production by early 2018. The Niagara-Welland region, home to Niagara College, not only gives GE access to engineers but also technologists and other skilled workers necessary to carry out its cutting-edge data science and analytics functions. At the time of the announcement, Heiner Markhoff, head of GE Power’s water and distributed-power business, mentioned that the region “provides a collaborative community environment that will attract talented employees.” Moreover, the region provides the unique advantage of being a 30-minute drive from the U.S. border — a key driver of GE’s decision to invest in the region.

Not only is Canada close to the U.S. geographically, but it is also familiar in culture and infrastructure.

LOOKING TO CANADA TO SATISFY YOUR WORKFORCE NEEDS

DON’T FORGET TO LOOK UP You might be surprised to learn that all three of these announcements were made in the span of one month. Perhaps, then, it will be less of a surprise when we continue to see more multinational companies leveraging Canada’s impressive talent base. Nearly 90 percent of those responding to Area Development’s 12th annual Consultants Survey revealed that labor is the reason their clients are moving their businesses to other countries.11 This trend is here to stay, and Canada is here to help. In an age where disruption is the new norm, companies shouldn’t have to sacrifice accessibility and reliability in order to access smart and savvy talent. One needs only to look up. ••

“

http://www.strategyand.pwc.com/perspectives/2016-technology-industry-trends http://core0.staticworld.net/assets/2016/02/08/state_of_the_cio_just_the_facts.pdf http://www.harveynash.com/group/mediacentre/Harvey_Nash_CIO_Survey_2015.pdf 4 http://www.forbes.com/pictures/mli45femig/7-canada/#1a207fc86a26 5 OECD, 2015. 6 https://www.pwc.com/gx/en/ceo-survey/2016/landing-page/pwc-19th-annual-global-ceo-survey.pdf 7 Global Entrepreneurship Development Institute (GEDI)’s 2015 Global Entrepreneurship Index (GEI). 8 http://www.rotman.utoronto.ca/Degrees/MastersPrograms/MBAPrograms/FullTimeMBA/Program/ CreativeDestructionLab.aspx 9 http://www.wsj.com/articles/why-silicon-valley-recruiters-are-flocking-to-ontario-1462385408 10 http://blog.compass.co/waterloo-the-david-vs-goliath-of-startup-ecosystems/ 11 http://www.areadevelopment.com/Corporate-Consultants-Survey-Results/Q1-2016/consultantsreveal-client-site-selection-facility-plans-8262.shtml 1 2 3

THE BAY OF QUINTE

Y INDUSTRY DEVELOPS HERE A Canadian logistics and manufacturing hub, the region is home to many multinational companies. With a central location between Toronto and Montreal, the Bay of Quinte’s access to major Canadian and U.S. markets lowers your ongoing operational costs and makes it easy to access the world! Start up is minimal due to the low cost investment ready land and available buildings, zero development charges and fast tracked development processes. Quinte Economic Development Commission’s experienced team provides confidential project support to reach your goals. LEARN ABOUT BUSINESS IN THE BAY OF QUINTE 1 866 961 7990

QUINTEDEVELOPMENT.COM

Representing the communities of Belleville, Quinte West and Brighton

66 LOCATION CANADA AREA0458.indd 1

11/08/15 3:04 AM

CANADA CONNECTING TO THE WORLD FROM CANADA Canada’s logistics infrastructure and trade connections can be quite beneficial to foreign investors and shippers. By BILL LUTTRELL ,

Senior Locations Strategist, Werner Global Logistics, Werner Enterprises

anada is the second-largest country in the world in terms of land, encompassing close to 10 million square miles. Needless to say, it has abundant natural resources and attracts substantial capital projects. Yet Canada’s 10 provinces and three territories hold a comparatively small population of 36.3 million people. Canada is a developed country and a member of OECD and has become the 11th-largest economy in the world. It is strategically located between the Pacific and Atlantic oceans, and its ports are closer to Asia and Europe than the ports serving the lower 48 states of its southern neighbor — the United States, which has the largest economy in the world. Canada also has a world-class highway system and is home to two Class I railroads. Yet, overall freight movement is highly concentrated along the southern border, as more than 80 percent of Canada’s population lives within a 200-mile distance from the Canadian/U.S. border. Just over 61 percent of the population live in the provinces of Ontario and Quebec, which lie directly above the center of the U.S. population, which is geographically separated by the Great Lakes. It is no wonder that both countries are each other’s largest trade and investment partners. As logistics has grown to be one of the most important criteria for both foreign direct investment (FDI) as well as international trade decisions, it is worthwhile to take a closer look at logistics in Canada in terms of external global forces and competitiveness and internal infrastructure. GLOBAL FORCES AND COMPETITIVENESS Canada is a natural resource based economy. Approximately 58 percent of Canada’s exports are commodities, particularly coal, oil and gas, potash, and

iron and ore. Lumber, agriculture, fishing, and fertilizers are also major exports. The latest global recession started in 2008 and the developed OECD countries were hit the hardest. Commodity prices soared, which helped Canada. Trade and investment (FDI) shifted to the emerging countries (ECs), most of which had significant natural resources. Financing flowed in, and many of these countries borrowed heavily to take advantage of the surging commodity prices. This was referred to as the “Super Commodities Era.” By 2014 the Super Commodities Era was over, as the volume of world trade could not keep pace with GDP growth. Commodity prices collapsed very quickly. The economies of most countries that were major exporters of commodities were hard hit, and the global trade volume has tumbled along with commodity pricing. Oil-producing countries were hurt the most, with prices 60 percent below what they were just three years ago. So much commodity capacity has been on the global market that it is only now that commodity pricing is 2016 67

CANADA believed to be hitting the “lower trough.” While the commodities downturn has slowed the Canadian economy to a sluggish level, capacity utilization rates in the non-commodity industries are high. This is good news; one rule of thumb in plant investment circles is when capacity utilization rates approach 80 percent, there is real pressure to build or create new capacity — new plants and facilities. However, one should keep in mind that in today’s globalized world, adding capacity does not necessarily mean the new capacity will be built at home, it can be built overseas. To make matters worse, global social and political unrest is making the world — and as a consequence global investment (FDI) — a bit riskier. FDI flows have responded to this risk by shifting attention back to a much safer arena with FDI now focusing more on developed OECD countries and developing Asia. Again, this may be to Canada’s benefit as it is a stable, developed OECD country and well positioned with investment and trade with Asia. This is welcome news as Canada’s unemployment rate still hovers around 7 percent. CANADA’S PORTS/AIRPORTS The easternmost provinces in Canada are not very densely populated. However, a major port is located in Halifax, Nova Scotia, and is the deepest of all of the ports located in North America. Halifax is a state-of-theart port and handles containers, bulk, break-bulk, Ro/Ro cargo, and freight. It is rail-served by Canadian Northern (CN). Almost half of its cargo is to/from Asia via the Suez Canal. Major industries in the provinces of Nova Scotia, Prince Edward Island (PEI), Newfoundland & Labrador, and New Brunswick include forestry, mining, and fishing. Moving westward, the provinces of Quebec and Ontario together comprise the largest industrial area of Canada, accounting for the majority of freight movement, including more than 80 percent of truck freight movement. The freight corridor running from Detroit, Mich., through Windsor, Ottawa, and Toronto (Ontario), and on to Quebec City is the busiest corridor in Canada. The Toronto to Quebec City portion is superhigh density. Likewise the corridor running from Toronto and Hamilton (Ontario) and down to Buffalo, N.Y., is a main freight corridor. Quebec province industries include utilities, forestry, mining, and aerospace, while Ontario province industries include automotive, manufacturing, and high tech. The Port of Toronto is the main port on the St. Lawrence Seaway. It has several container terminals as well as bulk, break-bulk, grain terminals, and an oil/liquid terminal. Montreal is served by both CN and CP (Canadian 68 LOCATION CANADA

Pacific) railways. From Montreal, CN dips down south to Detroit and Chicago, goes west to Kansas City, Mo., and continues south to Memphis and New Orleans. Western Canada is made up of four provinces along the southern border. Manitoba, Saskatchewan, Alberta, and British Columbia provinces’ industries include livestock, grains, agricultural equipment, oil and gas, potash, mining, and manufacturing. Winnipeg (Manitoba) serves as a gateway to the U.S. Midwest via highway and rail for both CN, which goes south to Duluth, Minn., and Chicago, and CP, which goes south to Minneapolis-St. Paul, Minn., Kansas City, Mo., and Chicago. Saskatoon (Saskatchewan) is a regional agricultural hub. Edmonton and Calgary (Alberta) are major players in the oil and gas industry and have intermodal rail terminals. Vancouver (British Columbia) is a port city on the Pacific Ocean above Seattle, Wash. The Port Metro Vancouver is a state-of-the-art port that handles roughly 50 percent of all container traffic for Canada. The port can handle the super Post-Panamax ships, has Ro/Ro service, large bulk and break-bulk terminals, and oil and liquids terminals, and is served by both CN and CP. Further north in British Columbia is Prince Rupert Port — also a state-of-the-art port with five world-class terminals. This natural deepwater port is served by CN railroad. Canada is home to numerous international airports including Quebec, Montreal, Toronto, Calgary, Edmonton, Vancouver, and Winnipeg, among others. International air cargo is serviced by these airports as well. Likewise, Canada has one the most extensive pipeline networks in the world. RAIL & TRUCKING Rail is king in Canada and is used widely due to the very long distances involved in freight movement. Declining shipping demand has hampered growth at both CP and CN, where shipping revenue and carload volume have dropped, including coal, crude oil, and grain. However, the railroads have been able to trim expenses and are poised to be in rather good shape when pricing and volume improves and predicted for 2017, when non-energy–related export growth should lead a recovery led by a lower Canadian dollar. Intermodal is widely available; however, trailer-onflatcar service (TOFC) — also historically referred to as piggyback — is available in the U.S. but is not available in Canada. The volatility of the Canadian dollar (CND) caused by the large swing in commodities influenced trucking freight as well. When the CND was stronger than the Continued on page 72

WINNIPEG:

Say YES! to Winnipeg OF ALL URBAN MUNICIPALITIES ANALYZED

in KPMG’s Competitive Alternatives (2016) report, Winnipeg, Manitoba, Canada, has the lowest business costs of any city in Western Canada — and it’s also lower than every U.S. city examined. One of Canada’s most diversified and stable economies, Winnipeg’s central North American location offers significant business advantages and investment opportunities. One hour from the U.S. border, Winnipeg is situated at the hub of four key trade gateways reaching across Canada, into the U.S. and Mexico, to Europe and Asia. Within a 24-hour drive, Winnipegbased businesses can access a population exceeding 100 million. Some of Canada’s largest transport companies are headquartered here, collectively providing over 1,000 local for-hire rigs. Winnipeg is also one of only two Canadian cities served by three Class 1 rail carriers and boasts an award-winning and world-class airport, which processes among the highest percentage of dedicated air cargo flights of any Canadian airport.

The Intelligent Community Forum named Winnipeg one of the world’s Top7 Intelligent Communities in 2016, MoneySense magazine considers Winnipeg one of the three best places to live among Canada’s large cities, and KPMG reports that Winnipeg is the No.1 most cost-effective locale for aerospace manufacturing among all major metropolitan areas in the U.S. and Canada. And in its biennial American Cities of the Future 2015/16 rankings, fDi Magazine ranks Winnipeg the leader in business friendliness among midsized cities in the North American midwest.

Vince Barletta, Leader YES! Winnipeg (an initiative within Economic Development Winnipeg Inc.)

Suite 300-259 Portage Avenue Winnipeg, Manitoba, Canada R3B 2A9 +1-204-954-1997 • Fax: +1-204-942-4043 vince@yeswinnipeg.com www.economicdevelopment winnipeg.com

CentrePort Canada — North America’s Largest Tri-Modal Inland Port

CENTREPORT CANADA INC. is a tri-modal inland port and foreign-trade zone (FTZ) located in the heart of the continent in Winnipeg, Canada, and at the hub of international trade gateways moving in all geographical directions. Many high-profile companies call CentrePort home: Boeing Canada, Magellan, MacDon, GE Aviation, Paterson GlobalFoods, Bison Transport, and North West Company. As Canada’s only tri-modal inland port and FTZ, significant investments are under way including the new CentrePort Rail Park, which will provide prime co-location opportunities for rail-intensive businesses. In addition to providing access to Winnipeg’s three Class I railways (CN, CP, and BNSF), CentrePort is a major international trucking hub and features a 24/7 worldwide cargo airport.

employee healthcare is paid by the government, and energy costs are the lowest in North America. These advantages have helped attract nearly 50 new companies to CentrePort’s 20,000-acre footprint — industrial land that is ideal for any size of development including manufacturing and assembly, warehousing and distribution, agribusiness, food processing and packaging, and transportation-related logistics.

Diane Gray, President and CEO CentrePort Canada Inc. Suite 100-259 Portage Avenue Winnipeg, MB, Canada R3B 2A9 204-784-1300 • Fax: 204-784-1308 DGray@CentrePort.ca

w w w. C e n t r e P o r t C a n a d a . c a

CentrePort also offers big-city advantages such as abundant, skilled labor, industry-focused training programs and incentives, and competitive wages (15–25 percent lower than Ontario and Western Canada). There are other savings as well — combined corporate taxes are 33 percent lower in Canada than the U.S., 2016 69

BRAMPTON — A People-Powered Economy

Experience what a people-powered economy can do for you. It all begins at P e o p l e P o w e r e d E c o n o m y. c a WITH A POPULATION OVER 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 per year). 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.

Sohail Saeed, Director Economic Development & Tourism City of Brampton Economic Development Office 2 Wellington Street West Brampton, ON, Canada L6Y 4R2 905-874-2650 • 888-381-BRAM edo@brampton.ca

P e o p l e P o w e r e d E c o n o m y. c a 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 8,700 businesses. Seventy-two percent of Brampton’s economic base is comprised of 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, Canon Canada, Coca-Cola Bottling Company, and Loblaw are headquartered here.

Awards/Designations • Brampton has been included in the Top 10 Mid-Sized American Cities of the Future 2015/2016 — Overall winner for FDI strategy — and included in the Top 10 in Mid-Sized American Cities for Connectivity and Business Friendliness • AAA credit rating designated by Standard & Poor’s • Designated by the World Health Organization as an International Safe City 70 LOCATION CANADA

City of Woodstock, Ontario The Crossroads of Business

interchange, while the Bysham Park Business Community is located just off Highway 2, approximately five kilometers from the Highway 2/401 interchange. A third business park, CommerceWay, opened in 2005 and is located along the north side of Highway 401. The fourth and newest, North East Business Park, is located less than one mile from the Toyota Motor Manufacturing plant. Industrial land prices range from $65,000 to $100,000 per acre, depending upon proximity to the Highway 401/403 corridor. All of our business parks are fully serviced.

THE CITY OF WOODSTOCK IS A DYNAMIC AND GROWING COMMUNITY of 40,000 located in the heart of southwestern Ontario at the crossroads of super highways 401 and 403. The city’s progressive actions have made it a leader in the region for conservation, environmental initiatives, and long-term commitment to managed growth. Woodstock has roots in both agriculture and manufacturing, as the recognized dairy capital of Canada and as home to Toyota’s second Canadian manufacturing facility. With a skilled workforce, affordable housing, and a new community hospital, Woodstock truly is a growing city with a lot of rural, small-town charm. In Woodstock, just-in-time delivery is a part of daily life. With an excellent supply of serviced and zoned industrial land, the community is eager to meet the needs of new and expanding businesses. Woodstock is capable of servicing a 100-acre industrial site for large-scale manufacturers.

Woodstock also maintains a business-friendly environment through such policies as no development charges on industrial construction. Our people know how to work hard and they have attained the skills to ensure the success of well over 140 manufacturers who make Woodstock their home. Combine all this with a relaxed lifestyle and real affordability and you’ll see why Woodstock continues to attract more than its share of new business. If you want to know more about Woodstock, visit our website at w w w. c o m e t o t h e c r o s s r o a d s . c o m

or call us at 519-539-2382, ext. 2115.

Len Magyar, Development Commissioner City of Woodstock 500 Dundas Street, P.O. Box 1539 Woodstock, ON N4S 0A7 519-539-2382, ext. 2112 lmagyar@cityofwoodstock.ca www.cometothecrossroads.com

The City of Woodstock owns and maintains four industrial business parks, all located in close proximity to the Highway 401/403 interchange. The Pattullo Ridge Business Park is located at the Highway 59/401 2016 71

QUINTE

Economic Development Commission THE BAY OF QUINTE REGION, a Canadian logistics and manufacturing hub, is home to multinational companies and innovative SMEs. Located between Toronto and Montreal and along highway 401, the Bay of Quinte’s access to major Canadian and U.S. markets lowers your ongoing operational costs and makes it easy to run worldwide logistics. Our low-cost investment-ready land and available buildings, zero development charges, and a fast tracked development process lower your startup costs. Procter & Gamble, Nestle, McKesson, and Kellogg have achieved success in the Bay of Quinte region.

Chris King, CEO Quinte Economic Development Commission P.O. Box 610 284B Wallbridge Loyalist Rd. Belleville, Ontario, Canada K8N 5B3 613-961-7990 • Toll Free: 1-866-961-7990 Fax: 613-961-7998 chris@quintedevelopment.com www.quintedevelopment.com

Let Quinte Economic Development Commission’s experienced team provide confidential project support and assist you in meeting your start-up goals. The Quinte Economic Development Commission represents the Bay of Quinte Region in Ontario, Canada, consisting of the City of Belleville, the City of Quinte West, and the Municipality of Brighton.

The “Northern Secret” of Canada’s Cities Revealed

Connecting to the World from Canada

Continued from page 63

Continued from page 68

Michael Darch is the founding president of the Consider Canada City Alliance Inc., which was started in 2007 with seven cities and expanded to the current 11 cities. On a national basis, its member cities represent 52.5 percent of Canada’s population, 56.8 percent of its GDP and, most importantly, 63.8 percent of GDP growth.13 Its mandate recognizes the fact that businesses choose cities rather than countries. ••

1 http://www.international.gc.ca/investors-investisseurs/assets/pdfs/download/Infographics.pdf 2 http://www.international.gc.ca/investors-investisseurs/assets/pdfs/download/Infographics.pdf 3 http://www.ft.com/cms/s/2/0221bb6e-cb9d-11e3-8ccf-00144feabdc0. html?siteedition=uk 4 http://martinprosperity.org/content/canadas-urban-competitiveness-agenda/ 5 https://www.thestar.com/news/canada/2016/05/06/how-toronto-can-become-a-globalcentre-for-innovation.html 6 http://www.statcan.gc.ca/pub/81-599-x/81-599-x2009003-eng.htm 7 https://en.wikipedia.org/wiki/Urbanization_by_country 8 http://www.citymayors.com/statistics/urban_2020_1.html 9 http://www.economist.com/blogs/graphicdetail/2015/08/daily-chart-5 10 http://www.brookings.edu/about/programs/metro/innovation-districts 11 http://www.montrealinternational.com/en/about-us/testimonials/makes-ubisoft-montreal-winner/ 12 http://considercanada.com/members-news/2015/10/20/ubisoft-acquires-halifax-basedlongtail-studios?rq=ubisoft 13 http://considercanada.com/blog/2016/6/20/cities-hold-the-key-to-strengthening-canadaseconomy

72 LOCATION CANADA

U.S. dollar a few years ago, shipping volume increased going north, as Canadian consumer demand was higher. Today, the opposite is occurring, there is a great increase in southbound shipping volumes as U.S. exports become more expensive to Canadians. The counter effect is that freight lanes and their volumes and pricing all follow suit. Head-haul lanes and back-haul lanes switch places as well, meaning it is now cheaper to ship to the U.S. from Canada than it is to ship from the U.S. to Canada. Investors and shippers into Canada must plan for occasional swings in the commodity and FOREX pricing by as much as 20 percent to 25 percent either way. IN SUM The Canadian market from a logistics standpoint is indeed beneficial — depending, of course, on the purpose of the investment or trade. Rules and regulations are only slightly different between the U.S. and Canadian marketplaces, for example. The physical logistics infrastructure of Canada is in very good condition and trade/investment opportunities continue to attract businesses. More important is for investors and shippers to do their due diligence and have a close understanding of the landing costs as various external economic conditions influence the marketplace — the same as would hold true with any other country. ••