Location Canada
Location Canada provides an introduction to direct investment into Canada for the global-minded company with practical advice and guidance about facilities deployment, labor force skills, taxes and incentives, and more. Atlantic Canada: A Safe Port in an Economic Storm
New Age of Trade
Is ICT Still a Driving Force?
Foreign Direct Investment, Productivity, and Country Growth: An Overview
In fact, a quiet confidence simmers nearly everywhere you go, a sense that tough times can produce opportunities if people are willing to work together. And over the past decade, government and business leaders have been doing just that as they’ve striven to imagine a future for the region that leverages knowledge and innovation for long-term, sustainable prosperity.
Perhaps the most tangible example of interprovincial partnership in the past year was a historic agreement between New Brunswick and Nova Scotia to reduce barriers to business, trade, and skilled labor. The Partnership Agreement on Regulation and the Economy, which was signed in Halifax, Nova Scotia, this past February, involves improved, standardized, and harmonized regulation; mutual recognition of professional and trade credentials; and clear, consistent requirements for business. New initiatives will be added as opportunities are identified.
“Removing obstacles to business and the movement of skilled workers makes good sense any time, and even more so during a period of worldwide economic challenge,” said Nova Scotia Premier Rodney MacDonald at the time of the signing. “We are working hard, with a number of measures, to strengthen our economy, and this agreement with New Brunswick is another step in the right direction. It will help make it easier for businesses to operate and grow in both of our provinces.”
Added New Brunswick Premier Shawn Graham, “As the list of cooperative ventures grows, we will start to see more and more common rules for both provinces, reducing the administrative time taken to understand and comply with the differences. The agreement is also about co-operation between the two provinces and systems — and projects that will help us spend taxpayers’ dollars more efficiently and provide better services to citizens.”
Such measures are expected to involve the other provinces in the region, as the Council of Atlantic Premiers continues to meet to explore new ways to jointly strengthen their economies and burnish the image of their respective jurisdictions as business-savvy and sophisticated for domestic and international start-ups and expansions.
Meanwhile, the region’s fundamental advantages as a business location remain as compelling as ever: one of the most skilled and educated labor forces in North America, attractive tax and financial incentives, excellent transportation infrastructure and port facilities, an incomparable quality of life, and an enviable cost structure. According to the most recent KPMG Competitive Alternatives study (2008), “Atlantic Canada offers the most consistently affordable business costs within Canada, with only 1.7 points separating Moncton [New Brunswick], Fredericton [New Brunswick], Charlottetown [Prince Edward Island], and Halifax [Nova Scotia].” The report ranks all four of these cities ahead of all New England cities examined, including Manchester, New Hampshire; Burlington, Vermont; and Hartford, Connecticut.
Responding to the Downturn
If the age of big business has come crashing to a halt (at least for the moment), then the era of big government is ascending. Central banks the world over have cut interest rates to the bone. Many have introduced radical new measures to keep their financial systems from collapsing completely. Interest rates in both Canada and the United States have been at 50-year lows. The U.S. Federal Reserve cut its target rate to practically zero, and the Bank of Canada’s earmark rate is mere basis points above this.
The Government of Canada has followed its American counterpart by taking the most activist role in the economy since the New Deal. It’s approach — captured in the January budget this year — marries aggressive tax cuts with spending on infrastructure. The total stimulus package is expected to be close to $40 billion over two years, which amounts to roughly 2.5 percent of national gross domestic product. (Unless otherwise indicated, all dollar figures are in Canadian dollars.)
In reality, this commitment is far less than that made by the United States and many other nations, where stimulus spending amounts to between 5 and 10 percent of overall productivity. Canada’s decision, according to the International Monetary Fund, is both reasonable and prudent, and positions the country to emerge into recovery more quickly and healthier than several of its trading partners.
Given these new circumstances, the provincial governments are expected to play a significant role in delivering the funds. According to the Atlantic Provinces Economic Council (APEC), this could be a mixed blessing. “Cash-strapped Atlantic provincial governments may need to borrow in order to contribute matching infrastructure funding,” says APEC in its Winter Outlook, 2009. “However, they may be reluctant to do so when their own budgets are heading into deficit territory. Both New Brunswick and Prince Edward Island are now expecting larger deficits in the current fiscal year, partly due to a deteriorating economy. Newfoundland and Labrador could be facing several years of deficit if oil prices remain below US$50/barrel.”
On the other hand, APEC reports, “Provinces may be quite willing to borrow for infrastructure programs where they have already participated in setting priorities. Prince Edward Island, for example, is boosting its capital spending over the next three fiscal years while New Brunswick is providing a two-year boost. The jump in capital spending in both provinces in 2009 amounts to about 0.7 per cent of provincial GDP. Numerous road, bridge, and other infrastructure projects are already identified for shared cost expenditures in all four provinces.”
In other words, according to APEC, the potential advantage of the economic downturn is that it has brought the debate on the merits of government action out from behind closed doors and into new corners of Canadian society.
Rebooting for Future Prosperity
In recent years, all governments in the Atlantic provinces have been building what they call “capacity”: in New Brunswick, the clarion is “self-sufficiency”; in Prince Edward Island, it’s “bioscience”; in Newfoundland and Labrador, it’s “energy independence”; and in Nova Scotia, it’s “building for growth.” But whatever each calls it, it’s the same language, and it sends the same message: Atlantic Canada is open for business — now more than ever. Every Atlantic province naturally presents its best face, but all are now beginning to understand that they are stronger together than apart.
Referring to the province’s recent progress, despite the economic downturn, New Brunswick’s Graham said in his 2009 State of the Province address, “Laying the cornerstones of self-sufficiency did more than provide the foundation for 20 years down the road. It gave us the base upon which to stand when the storm clouds began to gather last summer.” Graham has also added another component to the mix: tax reform. According to APEC, the change is almost revolutionary: “A flat 10 percent personal tax rate and a reduction of the general corporate tax rate to 5 percent will be fully phased in by 2012. To pay for these tax decreases, [a] select committee advised an increase in the harmonized sales tax (HST), but the government is still considering its options.”
Looking to Prince Edward Island, look no further than its youthful activist premier Robert Ghiz. Under his direction, the Island’s aerospace industry has expanded its reach dramatically, as recorded international exports increased from about $38 million in 2006 to more than $100 million last year. Highly machined components from Prince Edward Island are being shipped to 29 different countries.
Indeed, most of the export growth in this sector last year occurred outside the main U.S. market. The value non-U.S.-bound shipments exploded from $6 million in 2006 to more than $48 million in 2007. Exports to the European Union grew from $1 million to $25 million, while shipments to Africa increased from $3 million to $12 million. And even despite the impact of the higher value of the Canadian dollar against its American counterpart, exports to the United States rose by 16 percent. The provincial government reports that the aerospace industry in Prince Edward Island maintains annual sales of about $275 million; it employs nearly 1,000 highly skilled workers.
For Nova Scotia, the future is all about building new opportunities for business investment and expansion from the ground up. In a recent newspaper editorial, MacDonald wrote: “My government’s three-year, $1.9 billion infrastructure plan [is] called Building for Growth, [which] is one of the largest infrastructure programs in our province’s history. In the short term, it will create and maintain about 20,000 jobs. In the longer term, the plan speaks to our vision of what Nova Scotia can and will be in the years to come.” He promised investment in schools, information technology, green energy, and transportation projects, and said Nova Scotia had become the most connected jurisdiction in North America, with broadband Internet access available to all homes and businesses in the province.
Finally, Newfoundland and Labrador continues to weather the world’s economic maelstrom with characteristic common sense and good humor. According to APEC, the province’s offshore oil sector continues to progress, with Husky Energy planning to spend $800 million on the East Coast in 2009. Meanwhile housing boomed across the province last year, supported by optimism about future offshore developments and inward migration. “This reversal in migration trends has, at least temporarily, ended a continuous loss of population that began in 1993,” says the APEC report. “Newfoundland and Labrador’s population increased by an estimated 1,500 people over the last four quarters.”
STUDIES/RESEARCH/PAPERS
OCO INSIGHT: A New Investment Paradigm 7/21/2009 
Global Investment Promotion Benchmarking 2009 5/14/2009
The United States and Canada: Toward a Better Border 5/01/2009
Foreign Direct Investment, Productivity, and Country Growth: An Overview 4/30/2009
American Wind Energy Association Annual Wind Industry Report (2008) 4/29/2009
2009 Global Shared Services Survey 3/26/2009
Future-Proof Plans 3/20/2009
New Age of Trade 1/16/2009
Made in North America: Has NAFTA Made Us Competitive? 6/01/2008
2008 Competitive Analysis Study Compares Business Costs in North America, Europe, and Asia-Pacific Region 4/01/2008
National Contact
Canada — Your Partner for Success. Whether you are considering business expansion or new investment opportunities, Canada should be top of mind as your investment destination of choice. A first-rate business climate, an economy that fosters innovation, and an exceptionally well-educated work force are only a few good reasons to choose Canada.
Iréna Harris
1251 Ave of the Americas
New York, NY 10020
212-596-1672
Manitoba
Manitoba has an exceptional business climate; extremely competitive business costs; a highly skilled, knowledge-based, multilingual work force; a business-friendly government; robust, modern infrastructure; and an unsurpassed quality of life. Strategically located in the heart of North America, Manitoba is a competitive location for doing business, with flexible and cost-effective intermodal transportation services providing worldwide shipping by rail, air, road, and sea. A Manitoba business location can give your company the competitive advantage it needs.
Donald Callis, Marketing Manager
Industry Economic Development & Mines
10th Floor - 259 Portage Ave
Winnipeg, MB R3B 2A9
204-945-1451
Fax: 204-945-3977
New Brunswick
Be in a place where business costs are slashed by as much as 30 percent and you save as much as 40 percent on payroll and mandated benefits. Where a faithful work force averages over eight years with the same employer. Where telecommunications is world-renowned and energy is fail-safe. Business is booming, the economy is growing, and our affordable lifestyle lets you live the dream. Be more profitable. Be in New Brunswick.
Lori Armstrong
P.O. Box 6000
670 King Street, 5th floor
Fredericton, NB E3B 5H1
506-444-4897
Fax: 506-444-4277
New Brunswick
Greater Moncton was ranked as the #1 place to do business in Atlantic Canada and the New England states by the 2008 KPMG Competitive Alternatives Study and was named one of the world’s Top 7 Intelligent Communities of 2009 by Intelligent Community Forum (ICF). Greater Moncton is targeting IT, advanced manufacturing, life sciences, and aerospace.
Isabelle LeBlanc
Marketing & Communications Manager
910 Main St. Ste 101
Moncton, NB E1C 1G6
506-858-9550 Ext 104
Fax: 506-859-7791
Ontario
Ontario combines the best educated work force in the G7, ideal access to market, international and domestic suppliers, state-of-the-art telecommunications and infrastructure, and an excellent quality of life.
Maureen Hall, Account Representative
Marketing Branch
900 Bay Street
5th Floor, Hurst Block
Toronto, ONT M7A 2E1
416-325-6689
Fax: 416-325-6375
Ontario
With a modern infrastructure, a vibrant work force, and immediate access to an extensive network of transcontinental highways, seaways, and Canada’s Pearson International Airport, Brampton is connected to global markets and ready for business challenges of any size.
Don Eastwood, Director, Economic Development
33 Queen Street, West
1st Floor
Brampton, ONT L6Y 1L9
905-874-3849
Fax: 905-874-3849
Ontario
Mississauga is Canada’s sixth-largest city, with a diverse, knowledge-based economy, including leading clusters in information communication and technologies, life sciences, financial services, and advanced manufacturing. The city is home to Canada’s largest international airport and within a day’s drive of North America’s richest markets. With more than 59,000 businesses, Mississauga offers companies a cost-competitive base in the heart of a major road, rail, and international air network.
Marie K. Fitzpatrick-Hall
300 City Centre Drive
Mississauga, ONT L5B 3C1
800-456-2181 Ext 5019
Fax: 905-896-5931
Ontario
Niagara, Canada, is a hub for emerging industries, including interactive media, bio manufacturing, health and wellness, and green technology. Niagara is well-placed in the North American marketplace, situated within a one-day drive of 50 percent of Canada/U.S. population, 60 percent of North American industrial market, and 75 percent of Canada/U.S. purchasing power.
Alan Teichroeb
VP, Business Development & Services
2201 St. David's Road
P.O. 1042
Thorold, ONT L2V 4T7
905-685-1308 Ext 1_3421
Fax: 905-688-5907
Ontario
For Your Business…For Your Life. Located on the shores of Lake Couchiching and Lake Simcoe, Orillia is just under an hour away from the Greater Toronto area. In Orillia, you will find everything you need to build your business and your life. Where it all comes together…naturally!
Robert Lamb, Manager of Economic Development
Economic Development Commission
50 Andrew Street, South
Orillia, ONT L3V 7T5
705-325-4900
Fax: 705-325-1612
Ontario
Sharing a border with Minnesota offers the Rainy River District the best of two nations. Companies have access to Canadian and U.S. markets daily via air and major highways. The district’s hub is Fort Frances, offering large-city advantages and small-town convenience, including fully serviced land, affordable housing, a developed industrial site, and low-cost electric service.
Geoff Gillon, Economic Development Officer
608 Scott Street
Fort Frances, ONT P9A 1H6
800-465-8502 Ext 1
Fax: 807-274-6989
Ontario
Sarnia-Lambton, Ontario, Canada: Service industrial land at southwestern Ontario–Michigan border, averages $20,000/acre. On major highway, rail, and water shipping routes. Home of Canada’s Bioindustrial Innovation Centre. University and college R&D. Award-winning development team to assist with your location plans.
George Mallay, General Manager
265 Front Street, North
Suite 107
Sarnia, ONT N7T 7X1
800-972-7642
Fax: 519-332-1686
Ontario
Sault Ste. Marie is strategically located at the center of the Great Lakes, providing convenient and multimodal access to the international marketplace. Sault Ste. Marie has a population of over 75,000 (126,000 including the surrounding area) with access to 60 million consumers within 500 miles (800 kilometers). Sault Ste. Marie is experiencing unprecedented economic growth as a result of economic diversification efforts and Sault Ste. Marie’s advanced competitive advantage. Development Sault Ste. Marie is aggressively pursuing the following sectors: manufacturing (value-added steel and forest products); multimodal and transportation; health; education; information technology/e-commerce; energy and environment; bio-industry; aviation; retail and tourism development.
John Febbraro, Director, Industrial Marketing
99 Foster Drive
P.O. Box 580
Sault Ste. Marie, ONT P6A 5N1
800-461-6020
Fax: 705-759-2185
Ontario
Every business demands a center of gravity, and Stratford, Ontario, Canada, is precisely that — geographically, economically, technologically, and with a depth of talent that’s as deep as it is unsung. Stratford, located in southwestern Ontario, couldn’t be more central to Canada’s most advanced logistical and intellectual assets.
Randy Mattice, Economic Development Officer
City Hall
PO Box 818
Stratford, ONT N5J 6W1
519-271-0250 Ext 282
Fax: 519-271-.2783
Québec
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. Montréal’s aerospace industry boasts prime contractors and equipment manufacturers, among the world’s top subcontractors and suppliers, as well as a qualified and competitive labor force and unique training centers. Join them and take advantage of North America’s best aerospace environments!
Stephanie Lepage, Marketing Manager
1100 Rene-Levesque West
Suite 2100
Montreal, Québec H3B 4X8
514-394-7290
Fax: 514-394-7155
Saskatchewan
Enterprise Saskatchewan is a bold and innovative approach to creating sustainable economic growth in Saskatchewan. It is a special agency for coordinating the province’s growth agenda, led by key economic development and community stakeholders with one ultimate goal: to ensure Saskatchewan has a competitive environment that will attract investment at every level.
Ms. Jacki Litke, Communications Officer
4th Floor
2103 Eleventh Avenue
Regina, SK S4P 3V7
306-787-2234
Fax: 306-787-8447
Saskatchewan
Situated an hour northwest of Saskatoon, Saskatchewan, the city of North Battleford is a modern urban center with tremendous growth potential for business. Affordable real estate and well-developed commercial and industrial districts position North Battleford to become one of the most important communities on the Prairies.
Denis Lavertu, Director, Business Development
1291 - 101st Street
PO Box 460
North Battleford, SK S9A 2Y6
306-445-1718
Fax: 306-445-0411
