Location Canada 2015

www. locationcanada.com

CANADA

2015

The Canadian Advantage: Competitive Costs/Low Taxes

FDI in Canada Continues To Advance

Canada Is Ready to Help Your Company Feed the World

Canada Leading the Smart Grid Charge

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%

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CANADA L ET T ER F R OM THE

MINIS T E R OF INT E R N ATI O N AL TR ADE On behalf of the government of Canada, it gives me great pleasure to welcome readers of the 2015 edition of Location Canada magazine.

With a strong economy and solid business fundamentals, Canada remains one of the best places in the world for international business and foreign direct investment. Canada’s combined federal-provincial corporate income tax rate is among the lowest in the industrialized world. Over the past decade, Canada has continually outperformed most of its G-7 peers in the growth of its economy, employment, and per capita income. Our sound economic policies have drawn high praise from some of the world’s most influential financial organizations. According to KPMG’s 2014 Competitive Alternatives report, overall business costs in Canada are the lowest in the G7, 7.2 percent lower than those in the U.S. Forbes and Bloomberg both rate Canada as the best country in the G-20 to do business, and for the past seven years, the World Economic Forum has rated our banking system as the soundest in the world. We are also among just a handful of nations with a triple-A credit rating. Our government is proud of these accolades, which provide assurance to business investors for the success and security of their investments in Canada.

Canada’s economy is already well integrated into key global economies. Through the North American Free Trade Agreement, we offer businesses

established in Canada preferential access to a North American market of more than 480 million consumers. This number will increase to nearly one billion consumers when the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) enters into force. Additionally, the Canada-Korea Free Trade Agreement (CKFTA), which came into force on January 1, 2015, provides a gateway into the dynamic and fast-growing Asian marketplace. CETA and the CKFTA are major achievements for Canada under our government’s pro-export and pro-investment Global Markets Action Plan (GMAP). We are confident that they will deliver profound benefits to the Canadian economy and to those who invest here.

Investing in Canada clearly makes excellent business sense. We offer a strong, stable financial system; low taxes; one of the highest standards of living in the G-20; a business-friendly environment; world-class infrastructure; easy access to markets; and a workforce that is highly educated, innovative, and fully committed to economic success.

I invite you to learn more about Canada’s worldleading business advantages — and why Canada continues to be a top destination for investment — within these pages and at www.investincanada.com.

The Honourable Ed Fast MINISTER OF INTERNATIONAL TRADE LOCATION CANADA | 2015 C3

CANADA ADS/PTOFILES

CO NT E N T S

MANITOBA

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

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Winnipeg: Alive with Opportunity greg@economicdevelopment winnipeg.com www.economicdevelopment winnipeg.com

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NOVA SCOTIA

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Nova Scotia Business Inc. info@nsbi.ca www.nsbi.ca

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ONTARIO

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Brampton: A People-Powered Economy edo@brampton.ca www.Brampton.ca/b-more

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Mississauga: Business is a Human Race People Make the Place economic.development@ mississauga.ca www.winthehumanrace.ca

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Minister’s Letter

FEATURES

C6 Competitive costs and low taxes

The Canadian Advantage

help to fuel the diverse economy on display in Canada’s 10 provinces and three territories.

C11 Federal and provincial tax cuts and FDI in Canada Continues To Advance

new investment programs have proven a strong draw for foreign investors in machinery, equipment, and facilities in Canada.

C16 International agri-businesses looking

Canada Is Ready to Help Your Company Feed the World

for a talented labor pool, market reach, incentives for R&D, and other tax credits are locating and expanding in Canada.

C20 Smart grids and smart buildings work Canada Leading the Smart Grid Charge

together to save energy and keep the production line moving.

Published by:

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© 2015 C4 LOCATION CANADA

Ontario, Canada info@investinontario.com InvestInOntario.com

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City of Orillia edc@Orillia.ca www.Orillia.ca BusinessinOrillia.ca

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

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CANADA

THE CANADIAN ADVANTAGE Competitive costs and low taxes help to fuel the diverse economy on display in Canada’s 10 provinces and three territories.

By STEVE STACKHOUSE-KAELBLE

W

hy pick a location in

operations. According to KPMG’s report, in addition to

Canada? There are

federal R&D tax incentives, “most Canadian provinces

numerous factors that

also offer provincial R&D tax incentives at rates that vary

regularly vault the

from 10 to 20 percent, with some of these tax credits being

nation toward the top of

refundable.” Meanwhile, according to KPMG, “Canada

international rankings

ranks first for digital services operations, primarily due

of business-friendly

to significant provincial incentives that provide financial

environments — from

support to video game producers and other digital media

Forbes to Bloomberg and beyond. Right at the top of the list are Canada’s competitive business costs, starting with taxes.

One KPMG report — which added up a range of

industries.”

Labor-related advantages also attract a lot of attention.

Among members of the Organization for Economic

business expenses from statutory labor costs to sales

Cooperation and Development, Canada has the most highly

taxes — lauded Canada’s tax structure as the most

educated workforce. It’s also a very diverse workforce,

business-friendly in the developed world. Tax-related

Mair adds. “Multilingual capabilities are a strong asset in

costs in Canada were 46.4 percent lower than in the United

the major cities in Canada,” he says.

States, according to KPMG’s “Focus on Tax,” which also

And the business environment also smiles upon those

listed Toronto, Vancouver, and Montreal as the most tax-

employers that feel the need to import certain types of

competitive of 51 major international cities.

expertise if necessary, he adds. “One advantage is the easier

That fact comes as a surprise to a lot of people, notes Glenn Mair, director at MMK Consulting Inc. in Vancouver.

ability to bring in talented people from overseas to operate in Canada, compared to the U.S.”

“It’s an advantage that is often not understood or perceived,” he says. “The tendency is to view Canada as being a high-tax jurisdiction, which certainly is not the case.”

Though its tax advantages are not always widely

ONTARIO — AN AUTOMOTIVE POWERHOUSE Growth is in the air in the most populous province, Ontario, home to 13.7 million people. The bullish economic

appreciated, Canada definitely has a reputation for being

outlook produced by the Ontario Chamber of Commerce

technology-friendly, Mair says. “A real strength we see is

cites a variety of positive factors, from growth in the

the support for R&D activities, with permanent R&D credits

neighboring United States to the decline in the value of

both federally and in most provinces.”

Canada’s dollar to falling oil prices (the National Bank of

KPMG certainly noticed, declaring that Canada is best-in-class when it comes to the tax structure for R&D

C6 LOCATION CANADA

Canada earlier this year referred to the decline in oil prices as a “$5 billion tax cut” for the residents of Ontario and

Quebec). The chamber expects economic growth this year to

America, and its R&D operations produce advances in

be up by about 40 percent over 2014 and double what it was

everything from composites to connectivity.

in 2013, and the outlook is just as rosy for 2016.

It’s not just automotive connectivity that’s advancing in

The forecast calls for growth across the province, and

Ontario — the province is home to North America’s second-

across a broad swath of industry sectors. Most types of

largest cluster of information technology. Ontario is a tech

manufacturing, for example, are on the upswing in Ontario,

hub in general, employing nearly half of the nation’s R&D

and agriculture and tourism have strong outlooks as well.

personnel and home to the headquarters of half of Canada’s

Ontario and neighboring Michigan are rivals for the

top 10 corporate R&D spenders.

title of the continent’s leading automotive producer. The

Ontario is Canada’s leader in life sciences. It has a thriving

province’s auto sector includes assembly operations for five

food and beverage manufacturing sector, an aerospace

major auto producers, plus more than 700 parts suppliers.

industry with more than $5 billion in revenues, a significant

In fact, about one in seven Ontario jobs is directly or

mining sector, and one of the continent’s leading financial

indirectly tied to the auto industry. Ontario plants have

sectors, which provides work for some 350,000 people.

turned out about 16 percent of the continent’s vehicles in the past five years, and the auto sector pumped $16 billion into the Ontario economy last year.

QUEBEC — A LIFE SCIENCES & AN AEROSPACE LEADER The second-most-populous province is Quebec, which

Hoping to build on that prominence and further promote Ontario’s auto sector, the province last spring joined forces

8.2 million people call home, according to Statistics Canada.

with the Canadian Automotive Partnership Council and

Like Ontario, it’s a leader in life sciences, with major players

the federal government to create a new subcommittee. The

including nearly a dozen of the world’s most prominent

group will offer strategic advice on boosting investment and

pharmaceutical companies. Needless to say, it’s a hotbed of

ensuring the sector’s long-term success. Already, Ontario’s

research expertise, making it an attractive spot for an R&D

auto plants produce some of the highest-rated cars in North

location.

Percentage of Individuals Aged 25–64 Having Attained Post- Secondary Education – To Top 10 OECD Countries 60

53.0 47.0

50

47.0

44.0

43.0

A US

ea or K S.

42.0

%

40

41.0

41.0

41.0

40.0

40.0

30 20 10 0

a

ad

n Ca

l ae Isr

n pa Ja

UK

rg d d lia ay ra an ou rw t lan l s b o e n Ir N m Fi Au xe Lu

Source: OECD, Education at a Glance, Interim Report, January 2015

LOCATION CANADA | 2015 C7

CANADA O N TA R I O ’ S I N V E S T M E N T- R E A D Y C E R T I F I E D S I T E S Companies are increasingly looking to get their new facilities up and running as quickly as possible in order to gain a competitive edge.

With that in mind, Ontario’s Investment Ready: Certified Site Program (InvestInOntario.com/CertifiedSite), the first province-wide program of its kind in Canada, was launched in December 2013.

Since the program’s launch, seven sites have been certified. The criteria were designed in partnership with Deloitte Consulting Canada to ensure they meet the standard information requirements of site selectors and companies looking for their next strategic location. Each certified site undergoes a comprehensive review process with a committee comprising government departments responsible for land use planning, development, and environmental oversight in the province.

Certified site in Johnstown Industrial Park, Edwardsburgh Cardinal, Eastern Ontario, Canada

The certified sites must be a minimum of 10 acres in size; are designated and zoned to permit a range of industrial uses; fully serviced (electricity, gas, water, wastewater, telecommunications, at or 100 meters to the property line); free of major development constraints, including restrictions on title, identified flood zones, and the presence of significant natural environmental features. A certain level of due diligence has also been completed at the certified sites, including environmental, archaeological, species at risk, and heritage/cultural assessments.

Providing proactive information, removing unknowns, and reducing development constraints for industrial land simplifies the site selection process for potential investors and minimizes risk for unforeseen delays. According to Brad Duguid, Ontario Minister of Economic Development, Employment and Infrastructure, “Ontario has ranked number one in North America for foreign capital investment for two years in a row1, highlighting the fact that businesses are choosing Ontario as a destination to grow and expand their business. Businesses want to minimize uncertainty, and by providing information such as zoning, ownership, transportation access, utilities servicing, and details of completed assessments, we can help investors make informed decisions.”

1

http://www.ftbsites.ft.com/forms/fDi/report2015/files/The-fDi-Report-2015.pdf

The province’s aerospace sector accounts for nearly half

accounting for roughly $6 billion in annual exports each

of Canada’s aerospace sales, and Montreal is considered one

year. And the province’s technology sectors are respected,

of the world’s top three aerospace centers. Local, provincial,

active, and growing — microelectronics expertise is

and federal governments aim to keep it that way — recent

building, information and communications technologies

evidence of that included a spring 2015 announcement of

provide work for 176,000 people, and the province has a

$11 million in funding for aerospace projects at more than a

growing multimedia sector. Those into Wii gaming have

dozen local companies. The funding is expected to generate

Quebec’s workforce to thank for such titles as “Assassin’s

more than $78 million in investment. Ground transportation

Creed” and “Prince of Persia.”

also is highly active in Quebec, with more than 600 companies working on advancements in areas ranging from commercial transportation to electric buses.

Food and agribusiness operations are strong in Quebec,

C8 LOCATION CANADA

BRITISH COLUMBIA — NATURAL RESOURCES ARE KEY Across Western Canada, natural resources are a key

The Canadian Advantage

to the economy, which means the global collapse in oil

turnaround from the growth of 4 percent or more that it had

prices has not been welcome news. Be that as it may, the

been enjoying in recent years. The government’s forecasters

Conference Board of Canada reports that British Columbia

do expect some GDP growth for 2015, but just half a

could still see some of the country’s most robust growth this

percent. Subsequent years should be brighter, at least if oil

year, thanks in part to the diversity of its economy. Factors

gradually recovers, as many economists predict.

include healthy consumer confidence, U.S. growth, and a

Though oil is expected to remain a drag on Alberta’s

solid housing market.

economy for at least a couple of years, all is not lost. U.S.

British Columbia has a long history in forestry, mining,

economic growth is expected to boost the province’s

and fishing. Its liquefied natural gas sector has been riding a

non-energy industries, including agriculture, forestry,

growth wave, and though it has seen its struggles, there are

and manufacturing. For example, plastic and chemical

still growth prospects for the export of LNG, including to

manufacturing has been healthy, with strong levels of

expanding Asian markets. The prospects for exports to Asia

investment and increased exports on continued boosts in

go far beyond LNG, in fact. Stronger ties with Japan, China,

industrial capacity. And even as the petroleum outlook

Korea, and India have helped British Columbia strengthen

became increasingly glum last year, Calgary enjoyed such

its status as a global transportation and trade hub for all

positive headlines as the 200-job opening of a Sears Canada

kinds of goods and people from across North America.

fulfillment center and plans for a Compass Compression

Home to 4.6 million, British Columbia is a forward-

fabrication facility.

thinking place, particularly in and around Vancouver.

Opportunities are growing in such areas as green technology, digital media, and life sciences. It’s one of the

SMART TALENT

world’s top video gaming industry hubs, and more than 1,100 digital media companies are innovating not just in gaming but also in digital film, television, and interactive advertising. Among recent highlights, Sony Pictures Imageworks officially opened its new headquarters in

Nova Scotia produces more post secondary graduates per capita than any other province with 1 in 4 residents having a degree.

downtown Vancouver this past summer. Also new to the picture is the Microsoft Canada Excellence Centre, a training and development operation.

The many efforts aimed at growing the area’s

SMARTER LOCATION

prominence in green technology include the Greenest City Action Plan, with a goal of making Vancouver the world’s greenest city and boosting its reputation for green enterprise. There were roughly 20,000 “green jobs” in 2013,

We’re the gateway to North America.

and the effort is expected to boost that past 30,000 by 2020.

ALBERTA — OIL-DEPENDENT This province, home to 4.1 million people, is particularly oil-dependent, and as such has been particularly hard-hit

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by the fall in oil prices — they’ve dropped by more than 50 percent since mid-2014, according to the provincial government. The Conference Board of Canada suggested Alberta’s economy could shrink in 2015, quite the

AREA0462.indd 1

12/08/15 LOCATION CANADA | 2015 C9

7:14 PM

CANADA MANITOBA — ECONOMICALLY DIVERSE A variety of researchers examining Manitoba have all reached similar conclusions — this province of 1.3 million

fuel clusters active in such things as agriculture, life sciences, and mining technology, along with information technology.

people benefits from economic diversity. That’s one reason it has fared so well in Conference Board of Canada forecasts, which indicate that Manitoba will exhibit some of Canada’s most robust growth in 2015 and 2016. The organization

ATLANTIC PROVINCES — NATURAL RESOURCEBASED ECONOMIES The four provinces along the Atlantic range in

expects Winnipeg to have the strongest growth of any city

population size from the 942,700 residents of Nova Scotia

in the western half of Canada, other than Vancouver.

to 146,300 on Prince Edward Island. Some 753,900 call

That economic diversity shows up in the list of

New Brunswick home, while 527,000 reside at addresses

prominent industry sectors, including food processing,

in Newfoundland and Labrador. A common denominator

agricultural technology, heavy vehicle manufacturing such

of these provinces is a strong reliance on natural resources,

as buses, aerospace, green technologies, information and

including oil and forest products. Food processing is big,

communications technologies, mining and petroleum,

as well, from seafood to Prince Edward Island potatoes.

and financial services. The province has enjoyed healthy

In the latest Conference Board forecast, Newfoundland

investment, according to the Manitoba Bureau of Statistics,

and Labrador was one of just two provinces expecting an

even during the most recent economic downturn.

economic decline in 2015.

That holds true across the private sector, including in manufacturing.

Keeping the winning streak alive is the goal of a $60

Among the manifestations of the area’s determination to foster growth and build upon its business-friendly environment are the Department of Business and Office of

million National Research Council facility announced

Regulatory and Service Effectiveness created recently by the

recently in Winnipeg. It’s a “Factory of the Future”

Nova Scotia government. The aim is to align public, private,

facility intended to spark development and testing of new

and social enterprise sectors across neighboring regions,

manufacturing technologies and processes.

and promote a common agenda of economic growth.

Meanwhile, there are ongoing efforts to boost existing

SASKATCHEWAN — THE “BREAD BASKET” Home to 1.1 million, Saskatchewan is sometimes referred to as the “Bread Basket of Canada” or even the “Bread

industries — for example, the New Brunswick and federal governments earlier this year announced new financial support to strengthen the oyster industry.

Basket of the World,” which offers a strong clue to the importance of agriculture in its economy. In fact, more than 40 percent of Canada’s farmland lies within Saskatchewan,

THE THREE TERRITORIES — PRISTINE BEAUTY Among the largest but least populated parts of Canada

and the province typically grows half of the country’s

are the three territories stretching to the north of the 60th

wheat, among other crops. Livestock farming is prominent

parallel toward the Arctic Circle. About 43,600 reside in

as well, and as one would expect, the province relies on a

the Northwest Territories, and given that its economy is

variety of agricultural support industries.

tied strongly to such resources as gold, diamonds, oil, and

Minerals and other resources also play a role in this

natural gas, it’s not surprising that it has had Canada’s

province’s economic picture. It’s a world leader in the

highest per-person gross domestic product. The resource-

export of potash and uranium, and oil production is

focused picture is similar in the Yukon and Nunavut

significant as well. Meanwhile, there are significant

territories, each of which is home to between 36,000 and

initiatives that aim to diversify the economy, including

37,000 people. And the territories also benefit from tourist

Saskatchewan Opportunities Corp.’s support of the

dollars, drawn by the pristine beauty across the northern

technology sector. Its Innovation Place technology parks

portion of Canada. ••

C10 LOCATION CANADA

CANADA

FDI IN CANADA CONTINUES TO ADVANCE Federal and provincial tax cuts and new investment programs have proven a strong draw for foreign investors in machinery, equipment, and facilities in Canada.

By HOWARD SILVERMAN, President & CEO; and MARC BEAUCHAMP, Vice President & Partner; The CAI Global Group

I

n 2015, Canada remains an attractive FDI destination with tax cuts on an already highly competitive corporate rate and with new investment programs in its largest provinces. Canada continues to feature an advantageous environment for research and development by fostering links between subsidiaries, educational institutions, and clusters. With the potential implementation of trade agreements such as the Comprehensive Economic and Trade Agreement (CETA) with the European Union or the TransPacific Partnership (TPP) with Asia, Canada will position itself even better for FDI as a market neighboring the United States with export, logistics, and supply chain integration potential. Also in recent months, updates to corporate tax rates and investment programs have been presented following the latest budgets at the federal level and in the largest provinces, Ontario, Quebec, and British Columbia (BC).

The federal government’s 2015–2016 budget delivers tax cuts for corporate and small business income rates. According to numbers for 2015, Canada ranks as the

second-lowest corporate income tax rate for OECD members, behind only Switzerland, at 15 percent. In the 2015–2016 budget, the federal small business rate decreased from 13.12 percent to 11 percent. Moreover, Canada ranks first in the G-7 countries for ease of tax payment and ninth in the world, according to a joint PwC-World Bank study.

Additionally, starting in 2017, the government will implement the seven-year break-even Employment Insurance (EI) premium rate-setting mechanism,

LOCATION CANADA | 2015 C11

CANADA which will ensure that EI premiums are no higher than needed to pay for the EI program over time.

Under the proposal, any cumulative surplus recorded in the EI Operating Account will be returned to employers and employees through lower EI premium rates once the new mechanism takes effect.

TRADE AGREEMENTS AND TARIFF-FREE ZONES Once CETA comes into force, foreign investors in Canada will have guaranteed preferential access to both the European and North American markets; this represents nearly 980 million consumers with a combined GDP of US$37 trillion, or nearly one half of the world’s output of goods and services.

Canada’s major free-trade negotiations, with the Trans-Pacific Partnership and bilaterally with India and Japan, mean further enhanced market access is on the way for firms investing in Canada. Through tax and tariff export-related programs, Canada provides benefits to businesses comparable to those found in foreign trade zones (FTZ) in other countries, while having the advantages of not being site-specific.

In 2015, Canada became the first country in the G-20 to offer a tariff-free zone for industrial manufacturers. Canada’s initiative applies across the entire country, making Canada one large FTZ for firms importing equipment, machinery, and

manufacturing inputs. This allows importing of goods necessary for added productivity and free of duty charges, further contributing to lowering production costs for businesses.

The implementation of the FTZ as of January 1st offers corporations the ability to establish their facilities anywhere across Canada, not only in specific FTZs as in other countries. This creates an undeniable advantage for Canadian site location for FDI. A MANUFACTURING INVESTMENT DESTINATION Canada’s combined federal and provincial income tax rates are lower than in the U.S. And, along with zero percent tariffs on equipment and machinery as of 2015 with the implementation of the national tariff-free zone, Canada has established its leadership as an investment destination for the manufacturing industries.

In order to support continued investment in machinery and equipment and help bolster productivity, the government of Canada’s Economic Action Plan 2015 proposes to provide manufacturers with an accelerated capital cost allowance (CCA) at a rate of 50 percent on a declining-balance basis for eligible assets acquired after 2015 and before 2026.

Providing the new incentive for this extended period of time will help to provide businesses with planning certainty for larger projects, where the investment may not be completed until several years after the

G-7 RANKINGS ECONOMY

RANK

TAX PAYMENTS

TIME TO COMPLY (HRS)

TTR (%)

Canada

9

8

131

21.0

UK

16

8

110

33.7

U.S.

47

11

175

43.8

Germany y

68

9

218

48.8

France

95

8

137

66.6

Japan p

122

14

330

51.3

Italy y

141

15

269

65.4

Source: PwC — Canada tops all G-7 nations in ease of paying corporate taxes, Jan. 20, 2015

C12 LOCATION CANADA

FDI in Canada Continues To Advance

investment decision is made, and for longer-term investments with multiple phases.

By allowing a substantially faster write-off of eligible investments than the usual 30 percent declining-balance rate, this measure will defer taxes and allow businesses to recover the cost of capital assets more quickly. After four taxation years, more than 90 percent of the cost of the asset will have been deducted. In the absence of the accelerated CCA, lower annual deductions would have meant that it would take seven taxation years to deduct 90 percent of the cost of the asset. The deferral of tax associated with this new accelerated CCA is expected to reduce federal taxes for manufacturers by $1.1 billion over the period from 2016–17 to 2019–20.

The most recent federal budget also proposes to provide $100 million over five years, starting in

2015–16, for the creation of the Automotive Supplier Innovation Program to help Canadian automotive suppliers gain a competitive edge through new innovative products and processes. Of this amount, $50 million over three years, starting in 2015–16, will be reallocated from the Automotive Innovation Fund, and new resources of $50 million over two years will be provided starting in 2018–19. The program will help research and development projects to become commercially viable by supporting product development and technology demonstration on a cost-shared basis with participating firms.

The Automotive Supplier Innovation Program will complement existing initiatives supporting the automotive sector, such as the Automotive Innovation Fund, by strengthening Canada’s parts supply base and creating a favorable environment for automotive

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LOCATION CANADA | 2015 C13

CANADA FEDERAL AND PROVINCIAL TERRITORIAL RATES FOR INCOME EARNED BY A GENERAL CORPORATION (EFFECTIVE JAN. 1, 2015 AND 2016) PROVINCIAL RATES

M&P INCOME

ACTIVE BUSINESS INCOME

INVESTMENT INCOME

British Columbia

26.0%

26.0%

26.0%

Alberta

25.0%

25.0%

25.0%

Saskatchewan

25.0%

27.0%

27.0%

Manitoba

27.0%

27.0%

27.0%

Ontario

25.0%

26.5%

26.5%

Quebec

26.9%

26.9%

26.9%

New Brunswick

27.0%

27.0%

27.0%

Nova Scotia

31.0%

31.0%

31.0%

Prince Edward Island

31.0%

31.0%

31.0%

Newfoundland and Labrador

20.0%

29.0%

29.0%

Source: KPMG, Income Tax Rates for General Corporations, 2015

research and development, while providing firms with new opportunities to enter global supply chains.

PROVINCIAL STRATEGIES The three largest provinces — Ontario, Quebec, and British Columbia — account for an important part of FDI into Canada. They offer many new investment perspectives for the coming years with updated or recently launched strategies for FDI attraction including the following: Ontario — Ontario’s Jobs and Prosperity Fund was launched in 2015. It is a 10-year, $2.7 billion fund to support a dynamic and innovative business climate, and improve productivity and market access for Ontario companies and sectors. The Jobs and Prosperity Fund includes three streams: • New Economy Stream is available for projects with at least $10 million in eligible project costs. It is aimed at projects in Ontario’s key sectors, including advanced manufacturing, life sciences, forestry, and information and communications technologies.

• Food and Beverage Growth Fund is available for food, beverage, and bioproduct processing projects

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across the province with more than $5 million in eligible costs.

• Strategic Partnerships Stream provides funding for industry partners that develop enabling technologies for Ontario’s priority sectors. This stream is available for partnerships with at least $10 million in eligible costs. It focuses on technologies with the potential to transform multiple industries across Ontario.

Quebec — Two new investment plans were launched by the government of Quebec in 2015: The Stratégie maritime (or Maritime Strategy) is a project to develop the St-Lawrence River’s potential in Quebec with investments in logistics, the maritime industry, and tourism, while the Plan Nord seeks to develop northern Quebec and its abundant natural resources.

In the next five years, Quebec is to invest $1.5 billion in the Maritime Strategy and $1.3 billion in the Plan Nord strategy.

Quebec has also made changes to its business tax rate for corporations and small businesses in its latest budget. The general tax rate will be gradually reduced by 0.4 percentage points from 2017 to 2020. These rate

FDI in Canada Continues To Advance

reductions will come into force on January 1 of each of these years.

new mine allowance by four years to include eligible expenditures incurred before 2020.

British Columbia — The province’s 2015–2016 budget does not change corporate tax rates; however, certain business tax credits were extended or enhanced, including entertainment and media industry tax incentives, training tax credits, the small business venture capital tax credit, and the BC Mining FlowThrough Share Tax Credit. Additional incentives have been created or extended for the aerospace, agriculture, and maritime industries.

The budget provides a one-year increase of $3 million to the small business venture capital tax credit program. This will allow for up to $10 million in additional equity financing for qualifying new corporations in 2015.

The British Columbia budget also extends the new mine allowance for four years to Dec. 31, 2019.

The new mine allowance is intended to encourage investment and new mine development in BC, and permits an operator to claim an additional allowance equal to one third of the capital cost of a new mine or an expansion of an existing mine commencing production in reasonable commercial quantities after 1994 and before 2016. The budget also extends the

CANADA, A LEADER IN MANUFACTURING FDI FOR YEARS TO COME The level of foreign direct investment in Canada advanced by $40.3 billion to $732.3 billion in 2014.

U.S. direct investors increased their holdings by $19.5 billion to $361.4 billion, accounting for almost half of all direct investment in Canada. Furthermore, the foreign direct investment position in the Canadian manufacturing sector was up from $11.2 billion to $215.7 billion in 2014.

Moreover, in the last year, the value of the Canadian dollar has gone from 0.93 USD to 0.79 USD as of July 10th, representing a 15 percent drop. This has made Canada more attractive for multinationals, as some manufacturing costs have reduced proportionately. Attracted by its advantages in fiscal policy, taxation, exchange rates, as well as availability of skilled workers among other factors, investors have viewed Canada as an optimal choice for industrial FDI in equipment, machinery, and structures. Now, with a lower currency value and new investment programs, Canada is bound to continue as a leader in FDI for years to come. ••

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

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CANADA

CANADA IS READY TO HELP YOUR COMPANY FEED THE WORLD International agri-businesses looking for a talented labor pool, market reach, incentives for R&D, and other tax credits are locating and expanding in Canada.

By BRIAN MORRIS, Chair, Ontario Food Cluster; Business Development Consultant, City of Hamilton, Ontario

F

rom nutritional shakes to breads to fresh pasta and pizza and organics, international companies are showing a healthy appetite for investments in Canada’s agriculture and agri-food sector.

They are attracted by a wide variety of agricultural products, a robust inspection regime that meets or exceeds most global standards, currency valued more than 20 percent below the U.S. dollar, a strong talent base, and forward-thinking provincial and federal governments.

Due to the North American Free Trade Agreement (NAFTA), Canada enjoys access to over 460 million consumers and a combined GDP of $18.7 trillion across Canada, Mexico, and the U.S. When the historic Canada and European Union Comprehensive Economic and Trade Agreement (CETA) comes into force in 2016, almost 94 percent of EU agricultural tariff lines will be duty-free for Canadian agri-food companies.

In an era of climate change and drought that is dramatically impacting many agricultural regions of the world, it is well worth noting that Canada contains the world’s largest renewable fresh water resources to support its nearly 70 million hectares (170 Canada Bread Company facility

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million acres) of farmland.

Additionally, successive reductions in the U.S. cattle herd over a prolonged period due to drought and high feed prices resulted in extremely tight supplies and record prices in 2014. Hog prices also increased significantly as the spread of Porcine Epidemic Diarrhea virus (PEDv) led to a high level of mortality in piglets and reduced U.S. supplies by around 2 percent.

Canadian livestock producers benefitted from these conditions. Total Canadian livestock receipts increased by 19 percent in 2014 to reach a record $25.5 billion, largely due to the price impact of declining herds and low slaughter animal availability. Prices for slaughter animals increased by 25–30 percent.

In tandem with a declining cost of feed grains, this translated into sharply higher average incomes for Canadian hog and cattle farms.1

BY THE NUMBERS By the numbers, the Canadian agriculture and agrifood sector:2 • Generates $106.9 billion, accounting for 6.7 percent of Canada’s GDP • Provides one in eight jobs in Canada, employing over 2.2 million people • Is the largest of all manufacturing industries in Canada, accounting for 16 percent of the total manufacturing sector’s GDP in 2013, and 16.7 percent of all manufacturing jobs • Is focused on U.S. exports, with the United States accounting for 50.8 percent of total exports; China accounting for 11.2 percent; and Japan, the EU, and Mexico accounting for another 17 percent combined • Is seeing strong export growth, with an increase of 10.8 percent in 2013 to $23.4 billion to the U.S., while exports to non-U.S. markets grew by 6 percent to $22.7 billion • Enjoys government R&D investment of $643 million, and a further $130 million from the private sector • Is supported by Agriculture and Agri-Food Canada’s “Growing Forward 2” program to enhance the competitiveness of agri-food sectors (A federalprovincial-territorial initiative, the program will provide $3 billion of funding between 2013 to 2018.)

• Is on a sustained growth trajectory, with the value of food processing shipments more than doubling between 1992 and 2013 to $98.8 billion CANADA’S FOOD INDUSTRY DRAWS FDI Ontario offers Canada’s largest concentration of agri-food companies — 3,200 strong — that choose to invest in what’s called the “Ontario Food Cluster” for its easy proximity to the U.S. market and unmatched diversity of 200 agricultural commodities from 57,211 farms, including 669 certified organic farms.

Those farms are bolstered by a provincial talent base of 740,000 researchers, industry employees, and

agricultural innovators who have built a reputation for reliable, sustainable sources of raw materials, state of-the-art automated food-processing methods, and food safety standards.

Five recent foreign direct investments in Ontario underline Canada’s appeal for international agri-food companies: In 2013, Canada Bread Company Ltd. sold Olivieri Foods, its fresh pasta and sauce business, to Spain’s Ebro Foods in a $120 million deal. The next year another foreign company came shopping for the Canada Bread Company, with its sale to Mexico-based Grupo Bimbo for a blockbuster valuation of $1.8 billion.

Also in 2014, Germany’s Dr. Oetker GmbH opened a $135 million frozen pizza plant, warehouse, and distribution center in London, Ontario3 — its first in North America — capable of producing 27 million pizzas per year. Dr. Oetker then promptly purchased Canada’s McCain Foods’ pizza business to further its strategic goal of establishing itself as a leader in Canada as well as expanding its position in the U.S. Northeast, with the goal of manufacturing 50 million4 pizzas per year.5 Not to be outdone by Dr. Oetker, Aryzta AG, a Swiss-based global food business, purchased Oakrun Bakery, and its 237,000-square-foot plant that produces fresh and frozen products, for $340 million.6 Such investments are happening elsewhere across Canada. After its investments in Ontario, Grupo Bimbo purchased the iconic Canadian snack cake brands Jos. Louis and May West, along with the bakery division of Quebec-based Saputo Inc. for $120 million in late 2014.7 Then in June of this year, America’s WhiteWave Foods Co. acquired Vega, a British-Columbia-based maker of plant-based nutrition products like powdered shakes and snack bars, for $550 million.8 R&D TALENT AND INNOVATIONS International agri-businesses appreciate the

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CANADA Canadian talent story. Canada invests more in higher education R&D as a share of the economy than does any other G7 country, and it offers one of most favorable tax treatments for R&D among the G7. The Canadian system of tax credits and accelerated tax deductions covers eligible costs including agri-food business salaries, overhead, capital equipment, and materials. Canadian tax credits can reduce the aftertax cost of $100 in R&D to less than $41.9 As an example, the Ontario Food Cluster is the nexus for strong talent links between industry and public sector R&D via networks and organizations including the Advanced Foods and Materials Network (AFMNet); Soy 20/20; Ontario AgriFood Technologies (OAFT); Program in Food Safety, Nutrition and Regulatory Affairs; and the Guelph Food Technology Centre. Each year the center consults with over 1,500 businesses in the food and beverage industry, trains more than 3,000 professionals, and provides services that reach across the globe to 26 countries in eight languages.

The University of Guelph is a Canadian agrifood innovation powerhouse. U.S. News and World Report ranks Guelph 12th in the world, fifth in North America, and first in Canada in its survey of the Best Global Universities for Agricultural Sciences, based on the respective reputations and research in the field University of Guelph science complex

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including horticulture, food science and nutrition, dairy science, and agronomy. The University of Guelph has produced a host of products and technologies including:10 • Omega-3 fortified eggs, milk, and cheese • Nearly 100 varieties of soybeans, many destined for Asian markets for tofu, natto, and soymilk, based on numerous partnerships with companies and organizations • Cattle vaccine against shipping fever Bovine Respiratory Disease (BRD) complex, recently licensed to Boehringer Ingelheim Vetmedica Inc. • Human immunotherapies against Clostridium difficile (C. diff) licensed to Stellar Biotechnology • The world’s first edible, organic, monodisperse nanomaterial derived from corn with applications in personal care and nutraceuticals • Mars Horsecare Perform’N Win electrolyte drink for racehorses • Yukon Gold potatoes OTHER ADVANTAGES While Canada has a reputation for vast expanses, it’s a little-known fact that most Canadian cities are within a two-hour or less drive from the U.S. border.

Recent multibillion-dollar investments in port, rail, road, and air transport offer supply-chain efficiencies.

Canada’s welcoming approach to international companies is reinforced by the fact that one in five Canadians has a mother tongue other than English or French; Asian and European languages are spoken extensively. And Canada leads the G7 for the administration of justice and offers equal opportunities for all individuals.

Given that the agriculture and agri-food sectors generate $106.9 billion or 6.7 percent of the national GDP and provide one in eight jobs in Canada, that welcoming approach is particularly responsive to business expansion in these sectors. Canada offers an uncapped number of work permits available to foreign workers, a fast and straightforward process for intra-company transfers, and special programs to help recruit required R&D talent.

Are you hungry yet?

Canada’s ready to help your company feed the world. •• (Endnotes) 1 2015 Canadian Agricultural Outlook, Agriculture and Agri-Food Canada 2 An Overview of the Canadian Agriculture and Agri-Food System 2015 3 http://www.theglobeandmail.com/report-on-business/droetker-builds-ontario-plant/article18748722/ 4 http://www.lfpress.com/2014/05/20/how-about-50-millionpizza-pies-a-year 5 http://metronews.ca/news/london/1131720/dr-oetker-sayslondon-plant-is-key-after-mccain-foods-takeover/ 6 http://www.thespec.com/news-story/4910290-oakrunacquired-by-swiss-food-giant/ 7 http://business.financialpost.com/investing/saputos-snackcake-business-being-bought-up-by-mexican-ownedgrupo-bimbo?__lsa=e873-96e8 8 http://www.foodprocessing.com/industrynews/2015/ whitewave-to-acquire-vega-maker-of-powdered-shakesand-snack-bars/ 9 http://www.ontariofoodcluster.com/why-ontario/ 10 http://guelph.ca/wp-content/uploads/Agri_Food_Value_ Prop_Final.pdf

78% of global CEOs rank human capital as the #1 priority*

The competition for highly-skilled, motivated people is on.

That puts your business in a human race. And Mississauga, Ontario – Canada, is where you win it. Talent, networks, a world of cultures, easy and fast access to major markets.

Right here. What else do you need to know?

VISIT WINTHEHUMANRACE.CA TO START NOW.

*Source: PwC 15 th Annual Global CEO Survey 2012

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CANADA

CANADA LEADING THE SMART GRID CHARGE

Smart grids and smart buildings work together to save energy and keep the production line moving.

By JIRI SKOPEK,

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Managing Director, Energy and Sustainability, ECD JLL

he electricity grid has been called the single most important engineering achievement of the early 20th century.

How ironic it is that our present digital society — even as demand for electricity skyrockets — still relies on an infrastructure that draws much of its legacy from the era of horse-drawn

carriages.

Thankfully, in Canada, we are entering a new era for the electrical grid, and that’s good news for Canadian manufacturers. Across the country, there is increasing awareness of the need for a smarter electrical grid system, and both the public and private sectors are contributing toward that goal.

THE GRIM REALITY FOR MANUFACTURERS Blackouts and brownouts come at a tremendous cost to the economy in general — but to manufacturers, when the production line stops, there are immediate and profound consequences to the bottom line. And that’s as true for our clusters of clean technology companies working on cutting-edge devices and software, as it is for our many traditional manufacturers in the aerospace, automotive, and other traditional manufacturing sectors.

Even so, consistent access to reliable power is only one problem resulting from our antiquated system. Another concern is our vulnerability to the

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effects of climate change; the unpredictability of storm events, peak demand for air conditioning due to unprecedented heat waves, and security issues because of the grid’s centralized structure stand out as liabilities as a consequence of the interdependency of grid components and risk of cascading failure.

The existing system across Canada and all of North America, with its reliance primarily on coal, is also bad for climate change. There are additional concerns about falling behind in terms of global competitiveness as we see Asia and the European Union embrace advanced electrical grid technologies such as renewable energy, automated distribution, and advanced battery storage.

CANADIAN BUILDINGS AND THE GRID: READY FOR A MORE SYMBIOTIC RELATIONSHIP? One beacon of change in Canada comes from the province of Ontario, which has recently accomplished moving to a coal-free electrical grid. While coal-free may not make sense for every province, the move has helped move other advances — like smart grid innovations and the use of renewables — from “good idea” to an installed reality.

Meanwhile, just as the utilities sector hasn’t greatly changed since Thomas Edison, the building industry has not evolved much in the past three quarters of a century. Our buildings still tend to be built for the long term, are unresponsive to the changing

needs of the occupants, and often require expensive upgrades and redesigns to accommodate end-user requirements. Many new buildings still do not install energy management systems that can integrate with smart grid functionality, even for jurisdictions that offer it.

So how can we provide more electricity to meet rising demand, increase reliability and quality of power supplies, increase energy efficiency, and integrate low-carbon energy sources into power networks? And on the other side of the coin, how can we make our buildings more efficient and more responsive to the needs of occupants? The answer is

“smart grids” and “smart buildings.”

SMART GRIDS FOR SMART CANADIAN MANUFACTURERS Smart grids consist of interconnected loads and distributed energy resources — including renewable energy — that act as a single controllable entity with respect to the grid. Within a smart grid system, advanced communications and controls integrate the different energy sources, energy loads, and energy storage and make “smart” decisions in collecting the energy and move it around in any direction — when and as needed. Within a smart grid, discrete elements

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CANADA can connect or disconnect from the grid, enabling them to operate in both grid-connected or island mode. This greatly improves the flexibility, resiliency, and efficiency of electrical supply, and changes the way building operators think about and interact with the electrical system, for example, by generating their own electricity and even sending electricity back into the grid.

More good news for Canadian manufacturers: Canada is a leader in the development of smart grid technology. According to a 2014 report from the Global Smart Grid Federation,1 “With 49 percent smart meter penetration, almost 5GW in distributed generation, over 4000 electric vehicles, and almost 1,100 charging stations, Canada has rallied behind the smart grid since 2007, becoming one of the earliest adopters of smart grid technology.” The report also cites Ontario, Quebec, Alberta, and British Columbia as provinces that are leading the charge to offer smart grid infrastructure.

SOLVING THE ENERGY STORAGE CHALLENGE Providing electricity in a reliable manner means that the energy can travel from where it is stored to where it is needed, when it is needed. This sounds simple, but since electricity cannot be stored at grid scale in a cost-effective way, utilities have had to find ways to “shave” demand at peak times.

In the past, this was done primarily through demand response programs, where energy users agreed to adapt their usage to off-peak night hours in exchange for lower rates for energy. New technologies now enable utilities to offer automated demand-response programs — for example, automatically shutting off energy to a hot water heater for just a few minutes — a minor change that a customer would not notice. However, if we multiply those small savings by hundreds or thousands of households, or many dozens of large commercial buildings, these “mini-shavings” add up to noticeable reductions at peak times. This profound change is partly due to advances in control

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systems, data sensors, and machine-to-machine communications.

SMART GRID, SMART MANUFACTURING FACILITIES There are many parallels between a smart grid and a smart building. The same sensors and wireless technologies that are the basis of grid upgrades are used in buildings in similar ways and go far beyond current machine-to-machine applications, remote monitoring, control of building HVAC and lighting.

The conversation is also about how the smart grid will shape the connected building. Remote operation, big data, deep analytics and fault detection, renewable energy, automatic demand response, and time-of-day billing are all exciting aspects at the building level that will be driven by the maturity of smart grid.

When buildings become part of the energy community, it will bring about two-way energy transactions, market positions, and position trading for distributed energy. This new two-way interconnectivity between smart buildings and smart grids — whereby buildings are not only buyers, but also sellers of energy — will, in turn, shape behaviors.

For example, by providing an added catalyst for accurate data, this will likely bring about radical change to the whole issue of benchmarking building net energy.

Many manufacturing facilities are uniquely suited to produce energy and contribute to the grid, with the land and the zoning to install many types of renewable energy power generation such as solar panel “farms” or wind turbines. Offering those onsite also increases reliability; when the grid goes down, onsite power can be generated at the source.

We have the technology today to transform the energy relationship between buildings and the grid as well as make buildings more energy-efficient and resilient. Yet, businesses and utilities have been slow to keep pace with technological advances. Although a small but increasing number of buildings are now “smart,” and many municipalities have invested in

CANADA LEADING THE SMART GRID CHARGE

some form of smart grid technology, the reality is that the real estate industry has been lagging, and few municipal grids have the capability for two-way interaction with smart buildings.

A NEW ERA IN POWER GENERATION Despite current challenges, smart grid infrastructure throughout Canada is coming — and the government is taking steps to make sure that this new era in power generation comes online smoothly and as rapidly as possible. In 2012, the Standards Council of Canada published “The Canadian Smart Grid Standards Roadmap: a strategic planning document” designed to enable manufacturers, municipalities, and other organizations to operate under a shared set of technical standards. Developed by a committee of more than 20 public and private sector experts, the Council noted the nature of this emerging technology — and the necessity of it for economic development and support for Canadian businesses. The foreword to the report notes, “Smart grid technologies will enhance the reliability, resiliency, and efficiency of the electric network, as well as improve environmental performance by enabling consumers to play a more active role in their energy use decisions and helping to integrate renewable resources such as wind…

As these technologies mature and are brought into the marketplace, standardization will become increasingly necessary to ensure the development of an efficient and effective smart grid.”

As onsite power generation becomes more affordable, and improved battery storage technology makes it possible to store energy until it is needed, some buildings already are becoming self-powered at least part of the time. Such buildings tend to rely on renewable energy such as solar, wind, and geothermal energy in combination with highefficiency refrigerators, LED lights, and green building materials, while accessing municipal power when needed.

By creating microgrids and providing energy

from renewable sources such as wind or solar, smart buildings can help reduce greenhouse gas emissions, while also providing a safeguard against grid disruptions caused by natural or manmade disasters.

Although North America in general, and Canada in particular, has typically lagged behind when it comes to integrating technology into our energy systems, early adopters like Ontario, Quebec, Alberta, and British Columbia have been paving the way for future progress.

THE ECONOMIC IMPACT The economic impact of upgrading the old grid to a smart grid is indisputable. According to the Conference Board of Canada,2 for every $100 million invested in power system assets, real GDP will be boosted by $85.6 million and roughly 1,200 personyears of employment will be created. In other words, for each $100 million invested, 1,200 jobs will be created for one year. And much of that growth will come from the manufacturing sector.

Manufacturers in Canada can seek to better understand the smart grid infrastructure available to them in their locations by requesting up-todate information from their local utility. To better understand smart grid infrastructure across the nation, resources are available from the Standards Council of Canada3; the Canadian Electricity Association; and local, provincial, and federal government websites and industry groups.

As the technology continues to advance and more manufacturing companies opt-in to make their businesses increasingly environmentally friendly, we expect that the application of smart energy will continue to gain momentum, with Canadian manufacturers leading the way for the rest of the world. •• Notes: 1 http://www.globalsmartgridfederation.org/2014/02/27/1170/ 2 http://www.electricity.ca/media/news/CEAFactSheet2015.pdf 3 https://www.scc.ca/en/about-scc/publications/roadmaps/canadian-smart-grid-standards-roadmap

As managing director of Energy and Sustainability with ECD JLL, Jiri Skopek provides advice to owners and managers of large portfolios on sustainable development in the fields of design, asset and facility management, emergency preparedness, business continuity, and building intelligence.

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WINNIPEG

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ALIVE WITH OPPORTUNITY OF ALL URBAN MUNICIPALITIES

analyzed in KPMG’s Competitive Alternatives (2014) report, Winnipeg, Manitoba, Canada, boasts 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, and to Europe and Asia.

Within a 24-hour drive, Winnipeg-based 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

among the world’s “Top7 Intelligent Communities” in 2014, MoneySense magazine considers Winnipeg the second-best place to live among Western Canada’s large cities, and KPMG reports that Winnipeg is the No. 1 most cost-effective locale for aerospace manufacturing in western U.S. and Canadian cities. 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.

Greg Dandewich, Senior Vice President Economic Development Winnipeg Inc. Suite 300-259 Portage Avenue Winnipeg, Manitoba, Canada R3B 2A9 204-954-1997 • Fax: 204-942-4043 greg@economicdevelopmentwinnipeg.com www.economicdevelopmentwinnipeg.com

CENTREPORT CANADA

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N O RT H A M E R I C A’ S L A R G E S T T R I - M O D A L I N L A N D P O RT CENTREPORT CANADA is a tri-modal inland port and foreign-trade zone located in the heart of the continent in Winnipeg, and at the hub of international trade gateways moving in all geographical directions. Many highprofile companies call CentrePort home: Boeing Canada, Magellan, MacDon, GE Aviation, Paterson Global Foods, Bison Transport, and North West Company.

As Canada’s only tri-modal inland port and FTZ, significant investments are underway 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 1 railways (CN, CP, and BNSF), CentrePort is a major international trucking hub and features a 24/7 worldwide cargo airport.

CentrePort also offers big-city advantages such as abundant, skilled labor; industry-focused training

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programs and incentives; and competitive wages (15–25 percent lower than Ontario and Western Canada).

Also, combined corporate taxes are 33 percent lower in Canada than in the U.S..

These advantages have helped attract nearly 40 new companies to CentrePort’s 20,000-acre footprint — industrial land that is ideal for any size of development.

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 www.CentrePortCanada.ca

BRAMPTON

A PEOPLE-POWERED ECONOMY

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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 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.

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 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 • Brampton has been included in the Top 10 MidSized 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, nine 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 BRAMPTON.CA/B-MORE.

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 www.Brampton.ca/b-more LOCATION CANADA | 2015 C25

MISSISSAUGA:

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BUSINESS IS A HUMAN RACE People Make the Place

THE KNOWLEDGE ECONOMY is a human race — the competition between the best companies in the world for the brightest minds in business, science, technology, and all manner of industry.

Mississauga is where leading companies win that competition. Skilled, well-educated, inquisitive people in the hundreds of thousands comprise this city’s greatest advantage. So much so, that when landing at Pearson International Airport in Mississauga, Ontario, Canada, the port of entry sign might easily read “Welcome to Our Talent Pool.”

Over 62,000 companies call Mississauga home.

Over 1,400 multinationals turn on the lights here every morning. As do 380 life sciences companies, 4,200 technology companies, and a growing network of entrepreneurial go-getters that stretches from one of the world’s great fresh water lakes on Mississauga’s southernmost border to the farmlands just north and to the west.

What makes each of these organizations special and successful is the talent that works there.

Mississauga is truly a community of great people from all over the world. And they’re all very busy creating a wonderful future here, not only for

themselves, but also for their families and the next generation of the new economy.

So for business leaders who see people and access to markets as critical to what happens next, Mississauga becomes a natural choice.

A Place Made for People When you put this much talent in one place, economic stability and opportunity also lead to other welcome benefits.

Options in unique cultural experiences from around the world are growing. Transit is expanding. Our city plan prioritizes green space, green living, and safe neighborhoods for children. Mississauga is the 760,000 people who make it better every day. Lifestyle, economy, smart local government with a plan — it all adds up to a distinct advantage in the human race.

Mississauga is a premium location for any organization that depends on amazing people or barrier-free access to one of the world’s greatest markets. Connect with our network of Economic Development Office specialists and peers in any business category for a more detailed perspective at winthehumanrace.ca.

Susan Amring, Director, Economic Development City of Mississauga 300 City Centre Drive, Mississauga, ON, Canada L5B 3C1 1-800-456-2181 • Fax: 905-896-5931 economic.development@mississauga.ca www.winthehumanrace.ca C26 LOCATION CANADA

ONTARIO CANADA

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ONTARIO GENERATES 37 percent of Canada’s GDP and is the eighth-largest economy in North America. Ontario has been the North American leader in attracting greenfield capital investment for two consecutive years according to fDi Intelligence — with US$7.1 billion being received in 2014. Savvy business leaders across many industries are attracted to the province for a number of reasons:

Competitive Business Costs Ontario offers the lowest overall business costs when compared to all G7 countries. In addition, the province has an R&D cost advantage of 18.8 percent relative to the U.S.

Access to the $19 Trillion NAFTA Market and Global Markets Ontario has a modern, efficient and widely networked transportation system delivering access to the U.S. and locations abroad. This sophisticated infrastructure facilitates C$844 million in daily twoway goods trade between the U.S. and Ontario.

Highly Talented Workforce Ontario’s 44 colleges and universities consistently produce more graduates in science, technology, engineering, and math (STEM) than any other region in the G7. Additionally, 65 percent of Ontarians have postsecondary education.

live and work. Ontario offers key benefits such as universal healthcare and a world-class educational infrastructure, and our cities consistently rank in the top tier of various safety and desirability indexes.

Investment Made Easy Ontario understands the tremendous amount of work that goes into site selection and the importance of having a trusted partner in the process. We offer a one-window approach, bringing together a coordinated team of municipal, provincial, federal, and industry representatives with the contacts, expertise, and information required to make an investor’s life a little easier.

In addition, Ontario’s Investment Ready: Certified Site Program provides easy access to key information about properties, including locations and ownership, transportation access, and utilities servicing, thus doing much of the upfront due diligence for you.

Why Ontario?

Ontario’s competitive business costs, prime access to market, skilled workforce, innovation ecosystem, and high quality of life make it one of the world’s most sought after regions for business investment.

Innovation Lives in Ontario Ontario has a unique innovation ecosystem that is conducive to building partnerships that drive business success and profitability. The level of collaboration between government, educational institutions, research facilities, and businesses is rarely replicated elsewhere.

A Quality Lifestyle Everyone desires a safe and welcoming place to

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 info@investinontario.com InvestInOntario.com LOCATION CANADA | 2015 C27

CITY OF WOODSTOCK, ONTARIO

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THE CROSSROADS OF BUSINESS

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 longterm 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.

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 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.

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 WWW.COMETOTHECROSSROADS.COM 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 C28 LOCATION CANADA

CITY OF ORILLIA

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S AY G O O D B Y E T O B U S I N E S S A S U S U A L !

Come to Orillia, where your business and your way of life will thrive.

ORILLIA HAS BEEN RANKED one of the top six Canadian cities to invest in, and among the top 60 Canadian cities to live in.

between Lakes Simcoe and Couchiching, Orillia also offers a waterfront playground for your staff when it’s time to unwind or do business with nature as a creative backdrop.

Located about an hour north of Toronto, the City of Orillia sits at the crossroads of two of Ontario’s major roadways, putting your business at the center of the action. Lake Simcoe Regional Airport, with passenger, freight, and full Canada Customs service, is just 10 minutes away.

Orillia also offers superb healthcare at Soldiers’ Memorial Hospital, a state-of-the-art 230-bed regional hospital that recently underwent an $83 million redevelopment and expansion project.

We offer 150 fully serviced acres awaiting your business vision, and Lakehead University’s construction of a $45 million regional campus brings youthful vibrancy to the city plus a steady stream of employment candidates. A streamlined development approval process and zero industrial development charges will help you get right down to business!

Orillia is blessed with abundant and accessible natural beauty and the place to take full advantage of fourseason recreational opportunities all close at hand. Nestled

Dan Landry, Manager of Economic Development City of Orillia 50 Andrew Street South Orillia, ONT L3V 7T5, Canada 705-325-4900 Dlandry@Orillia.ca www.orillia.ca BusinessinOrillia.ca

Site and Facility Planning E-mail Newsletter This Week

Area Development editors aggregate the most industry-relevant site and facility planning features and commentary from the best sources around the web. Also included is a roundup of the most important news items from the Area Development Online News Desk.

The Insider

Exclusive online content including the latest industry-wide studies and research as well as features from Area Development magazine focusing on all aspects of site and facility planning.

Delivering What the Others Don’t For more information or to sign up, go to

www.areadevelopment.com/newsletter

LOCATION CANADA | 2015 C29

W T

NOVA SCOTIA BUSINESS INC. WHETHER YOU’RE LOOKING to invest, relocate or expand in Canada, take a look at Nova Scotia first. If you are not yet familiar with our province, allow Nova Scotia Business Inc. to show you why our talent, geographic location, reputation, and research and development capabilities are attracting world-leading companies to establish operations here. Our team of investment attraction executives will open doors for you in Nova Scotia. You’ll be amazed at the unparalleled support you’ll receive as you consider Nova Scotia as your next growth location.

Nova Scotia Business Inc. 1800 Argyle St #701 Halifax, NS B3J 3N8 Canada 902-424-6650 Toll-free: 800-260-6682 info@nsbi.ca www.nsbi.ca

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.

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.

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

Find the Right Location for Your Next Project.

FacilityLocations is a GIS map-driven, online economic development directory used to research potential locations during the business re-location or expansion process.

FacilityLocations.com C30 LOCATION CANADA

I am Brampton’s power snack.

NAFTA Foods and Packaging, making Brampton the gingerbread capital of North America.

Brampton is about you, about what you can be, about what we can be together.

A fusion of imagination, potential and entrepreneurship. Together, we will cook up new possibilities. Like the ones NAFTA Foods and Packaging uses at their state-of-the-art headquarters in Brampton, the gingerbread capital of North America. Discover what our fast-growing, people-powered Canadian city economy can do for you. Scan the QR code or visit peoplepoweredeconomy.ca

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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

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