Location Canada 2013

WWW.LOCATIONCANADA.COM

2013

GREATER Than

Innovative HIGH-TECH Sectors

The Bicoastal Gateway to NORTH AMERICA

A Thriving Economy Meets NEW-AGE Challenges

the SUM of Its PARTS

CANADALOCATION

AREA0115.indd 1 7/29/13 4:45 PM

Template w green rules 7/29/13 10:07 AM Page 1

n behalf of the government of Canada, it gives megreat pleasure to address readers of the 2013 edition

of Location Canada magazine.

Canada remains one of the best places in the world for inter-national business and foreign direct investment, with a robust econ-omy and strong business fundamentals. Indeed, in the aftermathof the worst global recession in a generation, Canada has contin-ued to outperform its G-7 peers in terms of job creation, eco-nomic growth, income growth, and our debt-to-GDP ratio. Forbes

magazine has rated Canada as the best country in the G-20 for business and the WorldEconomic Forum has rated our banking system as the world’s soundest for the past fiveyears. We are also among just a handful of nations in the world with a triple-A credit rat-ing. This provides assurance to business investors here and abroad about the security oftheir direct investments in Canada.

Our government is working to ensure thatCanada continues to be a top destination for for-eign investment that benefits Canadians andinvestors alike. Through Economic Action Plan2013, we are bolstering the competitiveness ofthe Canadian economy by investing in the man-ufacturing sector, encouraging innovation, andincreasing the availability of skilled labor.Further, we are improving Canada’s public infra-structure, deepening our trade and investmentrelationships in large and fast-growing marketsin the world, and improving our country’s fiscalframework by returning to a balanced budget

in 2015. Our government continues to create the conditions needed to attract the global investors who create jobs and new sources of economic growth and prosperity in communities across Canada.

Clearly, investing in Canada makes excellent business sense. We offer access to aNorth American market of over 460 million consumers. We also offer a strong, stablefinancial system; low taxes; one of the highest standards of living in the G-20; a business-friendly environment; world-class cities; spectacular natural landscapes; and an innovative,well-educated, and multicultural work force. Canada truly provides a preferred destinationfor global investment.

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

THE HONOURABLE ED FAST

Minister of International Trade and Minister for the Asia-Pacific Gateway

WWW.LOCATIONCANADA.COM C3

LETTER FROM THE MINISTER

O

Our government isworking to ensure

that Canada continues to be a

top destination for foreign investment

that benefitsCanadians andinvestors alike.

Minister’s LetterC3

Features

Canada — Greater Than the Sum of Its PartsC4A combination of beneficial attributes across a diverse industrialand geographic landscape has madeCanada a global economic leaderand attractive place to invest.

Innovative High-Tech SectorsC11Canada’s clean energy, ICT, life sciences, and advanced manufacturingsectors are clustered around sevenvibrant metropolitan areas.

Canada’s Thriving Economy Meets New-Age ChallengesC18The aggressive use of incentive tools has provided meaningfulopportunities for Canadian-basedbusinesses to offset costs associatedwith growth.

The Bi-Coastal Gateway to North AmericaC21Canada’s national government has developed and is now implementing a series of gateway and corridor strategies in order tobecome the preferred route into and out of North America.

Sponsors IndexC24

TABLE OF CONTENTS

Exclusive OONNLLIINNEE ContentExclusive OONNLLIINNEE Content

Canada Lays OutWelcome Mat for Entrepreneurs

400 Post Ave., Westbury, NY 11590

516-338-0900

www.areadevelopment.com

Published by:

Minister'sLetter 7/31/13 11:13 AM Page C3

anada’s economy contin-ues to rock. By just about

any standard, Canada’s economicperformance dominates the G-7and the G-20, thanks in part to itseconomic diversification. Notonly is Canada well-known for itstraditional industries of mining,energy, lumber, agriculture, andfisheries, but its knowledge-based sectors like biotechnologyand life sciences, nanotechnolo-gy, advanced manufacturing,information and communicationstechnology (ICT), and aeronauticshave gained international reputa-tions as well.

Why does Canada have sucha track record of success? Thebiggest factor is the Canadiangovernment’s commitment tocreate a fertile business climatethat is supported by a number

of competitive advantages,such as low business costs andcorporate tax rates, a highlyskilled and educated workforce, strong R&D incentives,and a stable banking environ-ment. When integrated togeth-er, these advantages create aclimate that supports innova-tion, business growth, anddiversification. Robust, long-term public-private partner-ships among federal andprovincial governments, aca-demic institutions, and private-sector companies have resultedin the development of strongindustries that are achievingchange on a global level.

FISCAL STABILITY Corporations want to invest in

a country that has a solid track

record of fiscal stability and rea-sonable, predictable economicmanagement — which startswith government. Canada is oneof the most financially stablecountries in the world. With thelowest debt-to-GDP ratio in theG-7 in 2011, Canada expects tohold this leading positionthrough the 2012–2013 forecastperiod.

For the fifth consecutive year,the World Economic Forum(WEF) has declared Canada’sbanking system to be the sound-est in the world. This was alsoproven by the Great Recession —during the financial crisis, not asingle Canadian bank or insurerfailed, and none requiredbailouts. In addition, according toGlobal Finance magazine, six ofthe top 10 safest banks in North

C4 LOCATION CANADA

CANADA —GREATER THAN THESUM OF ITS PARTS

By Mark Crawford

A combination of beneficial attributes across a diverse industrialand geographic landscape has made Canada a global economicleader and attractive place to invest.

C

LOCATION CANADA

Canada Greater Than 7/30/13 12:27 PM Page C4


America are Canadian. Standard& Poor’s has also reaffirmedCanada’s AAA credit ratings — allof which confirm that it’s veryhard find a better place to investbusiness capital.

TALENTED WORK FORCEAs indicated by the

Organization for Economic Co-operation and Development(OECD), Canada’s work force isone of the most highly educatedin the world, with half its work-ing-age population holding atleast a high-school education.Canada also has the highest per-centage of individuals achievingat least college or universityeducation among OECD mem-ber countries. The overall skilllevel of Canada’s work force isalso tops. For example, theavailability of qualified engineersin Canada is the highest in theG-7, according to the Institutefor Management Development(IMD).

A highly skilled work force is abig reason the ALTEN Group — aFrench engineering firm that spe-cializes in aerospace, telecommu-nications, life sciences, and automanufacturing — decided toestablish its Canadian headquar-ters in downtown Montreal, withplans to create 200 high-techjobs within three years.

“Montreal has a big pool oftalent that we can tap, with itstop-notch universities and engi-neering schools, and this is a keyto developing our Canadian pres-ence,” says Maxime Leca, man-

aging director of ALTEN Canada.“The region excels in several cut-ting-edge technology fields, andthe business environment is alsovery positive.”

Canada also does a great jobof creating a leadership pool tomanage its talented workers —the WEF ranked Canada secondin the G-7 for the quality of itsmanagement schools. SixCanadian schools of manage-ment are also ranked among thetop 100 in the world according tothe Financial Times (UK) GlobalMBA rankings for 2013. In addi-tion, according to a study thatmeasured the extent to whichmanagement education meetsthe needs of the business com-munity (World CompetitivenessYearbook 2012), Canada rankedfirst in the G-7.

BUSINESSCOMPETITIVENESS

KPMG’s 2012 CompetitiveAlternatives study indicatesCanada has the second-lowestbusiness costs among G-7 coun-tries and a 5 percent cost advan-tage over the United States. Keydrivers are as follows:

• Canada’s overall tax rate onnew business investment issubstantially lower than in allother G-7 countries.

• Canada’s combined federal-provincial general corporateincome tax rate is lower thanin most other G-7 countries(and about 13 percent lowerthan in the U.S.)

• According to ForbesPublishing, Canada was high-ly ranked in a number of categories, including the

2.52.0

1.6

SOURCE: World Bank, January 2013

1.61.4

1.21.1

0.7

0.3

2.0

1.5

1.0

0.5

0.0

CANADA GERMANY FRANCE JAPAN ITALYU.S. U.K. E.U.

REAL GDP GROWTH IN G-7 COUNTRIES, 2002-2011 (%)


The Ideal Real-Estate Partner

AÉROPORTS DE MONTRÉAL

Two World-Class Aero-Industrial SitesAéroports de Montréal (ADM) and its two world-class air-

ports, Montréal-Trudeau and Montréal-Mirabel, offer you the

most favorable opportunities for locating or expanding your firm.

At the Heart of Montréal’s Aerospace IndustryGreater Montréal is one of the world’s three aerospace

capitals, along with Seattle and Toulouse. It is among the

rare places in the world where all the main components of

an aircraft are manufactured within a 20-mile (30-kilometer)

radius. Nearly two-thirds of Canadian production is centered

here. More than 250 enterprises are located at ADM’s two

airports, generating a grand total of 60,000 direct and indi-

rect jobs.

Montréal’s aerospace industry boasts prime contractors,

equipment manufacturers, among the world’s top subcon-

tractors and suppliers, as well as a qualified and competitive

labor force and unique training centers. The presence of all

these key industry players explains why the Greater Montréal

region is renowned for its leading-edge expertise in the

design, manufacturing, integration, overhaul, and repair of

aircraft and aeronautical subsystems.

Montréal-Trudeau:Ideal for logistics and aeronautics

• 14 million square feet (1.3 million square meters) avail-

able for aeronautical development

• Located in Québec’s industrial and aerospace heartland

• 20 minutes from downtown and accessible via several

highways

• A 4,000-acre (1,620-hectare) site where more than

25,000 people already work

• Canada’s largest MRO and aircraft manufacturing center

• A congestion-free international airport

• More than 30 carriers serving 130 destinations

Montréal-Mirabel:Focusing on all-cargo, aeronautics, light manufacturing,tourism, and recreational

• 50 million square feet (4.6 million square meters) of land

and buildings available for lease

• Located in the Laurentians, Québec’s top tourism region

• Easy access to all services and a quality labor force

• An industrial zone where more than 4,000 people

already work

• Québec’s second-largest aerospace hub

• An aerospace training center and engine test facilities

• An international airport with 24/7 cargo and general

aviation operations

• A regional base for business aviation

• A unique motorsports complex

• 24 all-cargo carriers

FOLLOW THEIR LEAD!Aerospace design and manufacturing

• Bombardier Aerospace

• Mirabel-Mecachrome Inc.

• Pratt & Whitney Canada

• Aérolia

Maintenance, repair, and overhaul

• AeroToy Store

• Air Canada

• Avmax Group

• Avianor Group

• Innotech-Execaire Aviation Group

• L-3 MAS

Training

• Institut de formation aérospatiale

Engine test centers

• Pratt & Whitney Canada

Logistics distribution centers

• Aeroterm

• FedEx

• Purolator

• Spire Freezers

• Everest Cold Storage

FOR MORE INFORMATION please contact:

w w w . a d m t l . c o m

Real Estate and Commercial Services

Aéroports de Montréal

Telephone: 514-394-7201Fax: 514-394-7356

AREA0117.indd 1 8/8/13 3:09 PM

Template w green rules 8/8/13 11:59 AM Page 1

Countless opportunities.

Infi nite possibilities.

To be at the heart of one of the world’s aerospace

capitals – that’s why developers like you are choosing

to do business in Greater Montreal. By setting up

shop here, you’ll be in close proximity to two

world-class industrial sites, Quebec’s highly-skilled

workforce, and a network of the world’s top suppliers

and subcontractors.

And with the vast amount of commercial space

available, you’ll have plenty of room, not only

to get your business started but to take it

wherever you want to go. By choosing to develop

in Greater Montreal, you’re investing in the

success of your business.

Location, location, location.

DORVAL MIRABEL

AREA0113.indd 1 7/18/13 5:06 PM

Template w green rules 7/26/13 3:45 PM Page 1

amount of red tape involvedin starting a business (thirdplace) and investor protec-tion (fourth place).

• Canada ranks first among theG-7 and OECD countries forthe lowest number of proce-dures required to establish anew business.

• The Economist IntelligenceUnit (EIU) (February 2013)ranked Canada highly for itsinfrastructure, market oppor-tunities, low tax rates, andforeign trade and exchangecontrols.

Therefore, it is not surprisingthat Canada is considered to bethe best place to do business inthe G-7 over the next five years,according to the Economist

Intelligence Unit. It also rankedfifth overall out of 82 countries inthe Economist Intelligence Unit’sglobal business rankings for theforecast period 2013–2017. AndCanada led the G-20 and stoodfifth overall in Forbes latest(November 2012) 141-countryannual study on the “BestCountries for Business.”

RESEARCH ANDDEVELOPMENT

Canada currently offers one ofthe most favorable tax treat-ments for R&D among the G-7— especially for biotechnology,pharmaceuticals, and advancedmanufacturing. Canada providesa system of tax credits and accel-erated tax deductions for a wide

variety of R&D expenditures.Eligible costs include salaries,overhead, capital equipment,and materials. These tax-basedtreatments allow companies tosignificantly reduce their R&Dcosts through direct investmentor sub-contracting in Canada.The nation’s generous R&D taxincentives save companies, onaverage, 30 cents on a dollarinvested in R&D in Canada. R&D-intensive sectors also enjoy thelowest costs in the G-7, thesebeing about 10 percent lowerthan in the United States.

Angiotech, a pharmaceuticaland medical device companyfounded in 1992 by then-med-ical-student William Hunter, canattest to the support of theNational Research Council’sIndustrial Research AssistanceProgram (NRC-IRAP) in helpinghis company turn scientific ideasinto groundbreaking treatmentsolutions — including a productthat has been implanted in overfour million patients in the world.“The role of the Canadian gov-ernment in supporting private-sector research through programssuch as the NRC-IRAP is extreme-ly important for supporting ourculture of innovation,” saysAngiotech’s CEO Hunter.

In a move that further confirmsthis deep belief in assisting high-tech startups, Prime MinisterStephen Harper recentlyannounced a new initiative calledthe Venture Capital Action Planthat will help high-growth compa-nies access venture capital to

C8 LOCATION CANADA

CANADA GREATER THAN THE SUM

*The Legatum Prosperity Index ranks countries based on 89 variables grouped into 8 sub-indexes which are averaged using equal weights. The sub-indexes are economy; entrepreneurship & opportunity; governance; education; health; safety & freedom; personal freedom; and social capital.

LEGATUM PROSPERITY INDEX* G-7 Ranking

1st2nd

3rd4th

5th6th

7th

RANK

CANADA GERMANY FRANCE JAPAN ITALYU.S. U.K.

SOURCE: Legatum Institute, London, October 2012


build their businesses and createjobs. The plan includes $400 mil-lion to help increase private-sec-tor investments in early-stage riskcapital, and to support the cre-ation of large-scale venture capi-tal funds led by the private sector.

“Our government understandsthat Canada’s long-term econom-ic competitiveness in the emerg-ing knowledge economy needsto be driven by globally competi-tive, high-growth businesses thatinnovate and create high-qualityjobs,” says Prime Minister Harper.“We will provide the resourcesneeded to put Canada’s venturecapital industry on the path tosustainability and ensureCanada’s high-potential firmshave the resources they need tosucceed.”

ECONOMIC PERFORMANCEAccording to Consensus

Economics, Canada was a topperformer among the G-7 in GDPgrowth from 2009 to 2012.Similarly, recent OECD statisticsalso rank Canada as a top per-former among G-7 countries andfurther predict Canada’s economywill continue to be an internation-al leader through the 2013–2014forecast period. Canada hasstormed back from the GreatRecession, recovering more thanall the output and the jobs thatwere lost during the downturn.

Over the past decade, Canadahas witnessed a substantialgrowth in both inward and out-ward foreign direct investment(FDI), reflecting its international

reputation as a good place to dobusiness, as well as its strongconnections to global supplychains. Canada was the second-largest recipient of global FDIinflows per capita in the G-20from 2007 to 2011. Canada’sinward FDI stock reached C$607billion in 2011, almost twice whatit was in 2001. Expansion ofCanada’s outbound FDI — itsdirect investment abroad — isequally impressive, increasingfrom about C$400 billion in 2001to almost C$700 billion in 2011.

Much of Canada’s economicsuccess is a result of its long-established trading relationshipswith the United States andMexico, all of which can operateon a modern, well-integratedtransportation system that is oneof the best in the world. As amember of the North AmericanFree Trade Agreement (NAFTA),Canada has access to more than450 million consumers and acombined GDP of about $18 tril-lion — the most lucrative marketin the world.

The U.S. is Canada’s number-one trading partner. ManyCanadian manufacturing centersare actually closer to U.S. marketsthan American production sites— for example, 17 of Canada’s20 largest cities are within a 90-minute drive of the United States.Automated permit ports,transponder identification sys-tems, and joint processing cen-ters are among the innovativetools that Canada is using tofacilitate the flow of goods and

services across the border. Canada also continues to

strengthen its trade relationshipswith Asia-Pacific markets andEuropean centers. For example,Canada will soon finalize a tradeagreement with the EuropeanUnion (EU), its second-largesttrading partner. With more than500 million consumers and aGDP of over $17 trillion, the EU isthe world’s largest integratedeconomy. A trade agreementwith the EU will be Canada’smost significant trade initiativesince NAFTA and bring strongeconomic benefits, especially forAtlantic Canada and the provinceof Quebec.

“Our government is committedto jobs, growth, and long-termprosperity,” states the HonorableEd Fast, Minister of InternationalTrade. “Quebec’s chemicals andplastics industry is one of theprovince’s largest manufacturingsectors, employing tens of thou-sands of people. EU demand forvalue-added and specialty prod-ucts is growing in a wide varietyof areas. Quebec’s strengths andexpertise in this sector mean thatits companies are well placed tomeet this demand in the lucrativeEU market.”

QUALITY OF LIFECanada is a land of immense

natural splendor that provides itscitizens with affordable living andhealthcare, excellent education,and an abundance of opportuni-ties for professional and personalgrowth.


LOCATION CANADA


According to the 2012 Legatum ProsperityIndex, Canada ranks first in the G-7 and sixthamong 142 countries in terms of overall pros-perity — determined by 89 variables in eightcategories: economy, entrepreneurship andopportunity, governance, education, health,safety and freedom, personal freedom, andsocial capital.

In 2012 the World Bank stated that Canadahad the highest standard of living in the G-7 andthe second highest in the G-20, as measured bygross domestic product (GDP) per capita.According to the OECD, Canada has the sec-ond-highest quality of life in the G-7 and one ofthe lowest income disparities when compared toother G-7 nations. The Reputation Institute ranksCanada as having the highest reputation rankingamong 50 countries based on several indicators,including a high quality of life, a safe place tolive, an advanced economy, an effective govern-ment, and an appealing environment.

Canadians appreciate multicultural diversityand welcome immigrants from around the world.In fact, Canada has one of the world’s most mul-tilingual societies with over 200 languages iden-tified as the mother tongue. Some of the world’smost cosmopolitan cities, including Toronto,Vancouver, and Montreal, add diversity toCanada’s vibrant social landscape, as well asoutstanding educational and employmentopportunities.

In March 2013 Toronto became NorthAmerica’s fourth-largest city with an estimatedpopulation of 2.8 million (only Mexico City, NewYork City, and Los Angeles are larger). Toronto’spopulation is growing by about 40,000 peopleevery year, drawn by the wealth of social andeconomic opportunities it offers.

“We are attracting people from across NorthAmerica and other parts of the world,” saysToronto Mayor Rob Ford. “These figures showthat Toronto is one of the most desirable loca-tions for people to live and work.”

All told, its outstanding economic perform-ance, fiscal stability, talented work force, gener-ous incentives, and enviable quality of life, makeCanada the perfect place to establish a businessand put down roots. LC

The right people.

The right connections.

The right place.

An educated and skilled work force, direct access to various transportation modes, attractive real estate, leading edge technology and home to four post-secondary institutions all combine to make Oshawa an excellent location for a

new or relocating business. Let us help you find YOUR right place in Oshawa, Ontario, Canada.

City of Oshawa, Economic Development Services 1-800-667-4292 I [email protected] I www.oshawa.ca

AREA0114.indd 1 7/25/13 6:23 PM

Canada Greater Than 7/31/13 11:21 AM Page C10

INNOVATIVE HIGH-TECH SECTORS

By Mark Crawford

Canada’s clean energy, ICT, life sciences, and advanced manufacturing sectors are clustered around seven vibrant metropolitan areas.

ne reason Canada is aworld leader in knowledge-

based industries is its integratedapproach to driving economicgrowth through innovation. Notonly does Canada provide lucrativeresearch and development (R&D)tax credits and incentives for high-tech projects, it also aggressivelysupports entrepreneurial efforts,intellectual property rights, and theimmigration of highly skilled busi-ness workers and leaders.

High-tech R&D, commercializa-tion, and manufacturing areanchored in high-tech clusters inmajor cities across Canada.Common features among theseclusters are federal and provincialinitiatives and funding, strongresearch programs, collaborationswith academic institutions, andincubator resources for small high-tech startups. This kind of pro-innovation environment is espe-cially attractive to major foreigninvestors who want to enter a market,

become key players, and minimizetheir learning curves. Thrivinghigh-tech clusters also attractworld-class talent from overseas.

Much of Canada’s high-techdevelopment and commercializa-tion takes place in seven key clus-ters surrounding Vancouver,Calgary, Winnipeg, Toronto,Waterloo, Montreal, and Halifax.The companies in these clustersrecognize that by working togeth-er and supporting each other theybring more attention and prosper-ity to all — and perhaps evenmake a discovery that changesthe world in a spectacular way.

FROM CONVENTIONALENERGY TO CLEAN TECH

Alberta is home to more than 60percent of the country’s convention-al crude oil reserves and all of itsheavy oil and oil sands reserves.Many of the world’s largest interna-tional oil and gas companies haveestablished headquarters in Calgary,

driving almost $75 billion in energy-related projects across the province.

Although oil and natural gas arethe major energy targets, Calgaryis also the base for a steadily grow-ing Sustainable and RenewableEnergy (SURE) sector. The city hasbeen successful in attractingnational research initiatives that areexploring new ways of controllinggreenhouse gas emissions andincreasing efficiencies of renewableenergy and energy systems andtechnologies. Collective energyknowledge and advancements intechnology, along with the supportof many research and postsec-ondary institutions, think tanks, andinnovators within government andindustry, are driving collaborationwithin the SURE cluster.

Ranked as one of the world’smost cosmopolitan cities,Vancouver also has one of thelargest clean-tech industries inNorth America. The NationalResearch Council (NRC) of


O

LOCATION CANADA

CanadaHighTechSectors 7/30/13 12:57 PM Page C11

Canada, which was recentlyranked as one of the top organi-zations in the world for its fuelcell research, conducts much ofthis work at its state-of-the-artcenter in Vancouver.

In true cluster behavior, thepresence of NRC, along with theInnovation Clean Energy Fund,which provides funding to com-panies with promising renewableenergy technologies, has broughtstrong growth in this sector.Vancouver is currently home to25 percent of all clean-tech com-panies in Canada. One of theseleaders is Ballard Power Systems,a manufacturer of protonexchange membrane (PEM) fuel-cell technology that is being usedacross an increasingly wide rangeof applications and industries. Forexample, Nokia SiemensNetworks recently partnered withBallard Power Systems — a col-laboration that “allows us toleverage our expertise to deliveran emergency-ready alternativepower solution for mobile net-works during outages caused bynatural calamities and commercialgrid failures,” says LarryStapleton, vice president of salesat Ballard Power Systems.

AN ICT LEADER With 30 percent of Canada’s

40,000 ICT firms, Toronto,Ontario, is also one of the largestICT clusters in the country. InSeptember 2012 Toronto-basedIBM Canada, in collaborationwith the federal and provincialgovernments, opened its IBM

Canada Leadership Data Centrein nearby Barrie — one of themost advanced computing facili-ties in the country and part of thecompany’s $175 million IBMCanada Research andDevelopment Centre network.

“This new facility provides aflexible foundation ingrained inbest practices so we can deliveressential services to help organi-zations and partners better man-age data, reduce operating costs,improve productivity, and gaincompetitive advantage,” saysJohn Lutz, president of IBMCanada.

Also in Ontario, the Waterlooregion known as the TechnologyTriangle, which consists of thecities of Cambridge, Kitchener,and Waterloo, has become a pre-ferred destination for technologystart-ups, incubators, accelera-tors, and young inventors. Hightechnology in the “Triangle” issupported by three acclaimeduniversities, a college, and morethan 150 research organizations,including the Perimeter Institute(where physicist StephenHawking is a DistinguishedResearch Chair) and the Institutefor Quantum Computing. Morethan 22 percent of all spin-offCanadian information technologycompanies have gotten their startin University of Waterloo incuba-tor programs.

And over half of Alberta’sfastest-growing companies are inthe ICT sector, which includesinformation technologies, elec-tronics, telecommunications, and

wireless. An important asset forCalgary-based ICT companies isInnovate Calgary, a partnershipbetween Calgary Technologiesand University TechnologiesInternational. This full-serviceorganization provides technolo-gy-transfer and business-incuba-tor services to advanced-technol-ogy businesses, entrepreneurs,and researchers. Started in 2010,Innovate Calgary has evaluatedover 1,500 discoveries, securednearly 700 patents, and devel-oped or assisted in the creationof over 40 spin-off companies.

Winnipeg, Manitoba, wasrecently chosen as the site of anew cloud computing centerowned and operated byCanadian Tire Corp. The facilitywill be home to a digital contentwarehouse, application and test-ing labs, and a high-performancedata center. Winnipeg’s burgeon-ing technology community,media-savvy graduates, and rep-utation as a gaming hub wereamong the factors influencing thelocation decision. The province ofManitoba also offers a data pro-cessing tax credit.

LIFE SCIENCES CLUSTERS Toronto’s biotech cluster is the

largest in Canada, with estab-lished headquarters for nearly 50global pharmaceutical andbiotechnology companies, as wellas numerous research facilities. Anew addition is SunnybrookResearch Institute’s recentlyopened Centre for Image-GuidedTherapeutics. The $160 million,

C12 LOCATION CANADA

HIGH-TECH SECTORS


150,000-square-foot facility pro-vides space for more than 300research and clinical teams thatare working in partnership with30 leading biotechnology compa-nies and other organizations onnew devices and treatments.

The Greater Montreal,Quebec, region, is a major worldcenter for biotechnology. Thelargest amount of biotech R&D inCanada is conducted in Montreal,including work on aging, neuro-science, cancer, cardiovascularand metabolic diseases, genetics,genomics, and proteomics. In2011 Montreal ranked sixthamong North America’s largestmetropolitan areas in life sciencesemployment. Over $1.6 billion inventure capital was invested inMontreal’s life sciences industrybetween 2001 and 2011.

Greater Montreal is wheremany internationally recognizedbiotechnology companies areheadquartered, including AlethiaBiotherapeutics, Bio-K PlusInternational, and Caprion, aleader in proteomic services.

Caprion has experienced growthof 35–40 percent over the pastfew years, a trend that shouldcontinue as the company devel-ops its own diagnostic tools forcancer and other diseases.

“Greater Montreal has a signif-icant pool of talent trained in thescientific disciplines that are criti-cal for our success,” indicatesMartin Leblanc, president andCEO of Caprion. “It also has peo-ple with vital management andbusiness development skills.What we have is a completeecosystem, a unique cluster inNorth America that bringstogether players capable of col-laborating and adopting commonstrategies.”

Halifax — a major port and theregional growth engine for NovaScotia and the Atlantic Canadaregion, as well as one of the mostcompetitive Canadian cities fordoing business — supportsanother life sciences cluster. Forexample, the Brain Repair Centre,based at Dalhousie University, isan internationally acclaimed part-

nership that brings together morethan 100 world-class researchersand physicians to find treatmentsfor Parkinson’s, Alzheimer’s, spinalcord injury, and other brain disor-ders. Halifax is also home to aworld-class marine research clus-ter that includes DefenseResearch and DevelopmentCanada; the Bedford Institute ofOceanography, DalhousieUniversity; and Lockheed Martin’sTechnology Collaboration Center.

Manitoba’s biotechnology sec-tor is one of the fastest-growing inCanada, with a focus on biomed-ical R&D and agricultural biotech-nology. Winnipeg is home to theNational Research Council’sInstitute for Biodiagnostics,Canada’s most advanced researchfacility for developing nuclear andother magnetic resonance imag-ing technologies.

ADVANCEDMANUFACTURING

Although the Waterloo,Ontario, Technology Triangle isbest known for ICT, it is also a

LOCATION CANADA

AREA0116.indd 1 7/29/13 4:52 PM


center for automotive manufactur-ing and research and develop-ment. The Waterloo Centre forAutomotive Research at theUniversity of Waterloo is one ofCanada’s top automotive researchcenters. Employing more than 75automotive researchers, the cen-ter represents the largest universi-ty-based automotive activity inCanada and works in partnershipwith automotive manufacturersand suppliers, including ToyotaMotor Manufacturing Canada,which operates an assembly plantin Cambridge.

“Manufacturing is all aboutpeople, and I believe that wehave some of the best people inthe world right here in Ontario,”says Ray Tanguay, chairman ofToyota Motor ManufacturingCanada. “That is one reason wehave been so successful.”

Canada’s 400-plus aerospacemanufacturing and services com-panies have a worldwide reputa-tion for quality, value, perform-ance, and reliability. In 2011,Quebec exported nearly $7 billionworth of aerospace products,accounting for almost two-thirds ofCanada’s total aerospace exports.

Montreal is Canada’s largestaerospace cluster and is wellknown for its expertise in aircraftfabrication and assembly, enginemanufacturing, avionics, mainte-nance and repair, and landinggear. Major aerospace companiesin Montreal include BombardierAerospace, Bell Helicopter TextronCanada, and Pratt & WhitneyCanada. Montreal is also home to

more than 10 aerospace researchcenters, including the CanadianSpace Agency and the AerospaceManufacturing Technology Centre(AMTC) at the NRC Institute forAerospace Research.

In March 2013 BombardierAerospace announced it plans totest-fly its new CSeries of aircraftthis summer. Designed for thegrowing 100- to149-seat market,this new family of airplanes com-bines advanced materials andleading-edge technology, such asPratt & Whitney’s newPurePower® Geared Turbofan™engine, which recently achievedTransport Canada type certifica-tion and will power the CSeriesaircraft. These planes will be upto 12,000 pounds lighter thanother aircraft in the same seatcategory and provide passengerswith a best-in-class, wide-bodycabin environment. At the end of2012, Bombardier had bookednearly 400 orders and commit-ments for the new line of aircraft.

“The CSeries is a game-chang-er in a changing economic envi-ronment,” says Mike Arcamone,president of BombardierCommercial Aircraft. “Specificallyadapted for airlines that want toincrease the productivity of theiraircraft, the extra capacity seatingoption allows us to offer the high-est seating capacity in its marketsegment, with the best-in-classseat mile costs and comfort.”

Another major focus in today’saerospace sector is compositemanufacturing. Boeing, MagellanAerospace, and Advanced

Composite Structures all haveoperations in Winnipeg,Manitoba, with Boeing’s compos-ite manufacturing facility thelargest of its kind in NorthAmerica. Winnipeg is also hometo the Composites InnovationCentre (CIC), a public-privatepartnership that supports R&D fornew composite materials andtechnologies for manufacturingindustries. Researchers are inves-tigating how agricultural fiberssuch as hemp and flax can beincorporated into compositematerials to manufacture partsthat are lighter weight, cheaper,and more sustainable to make. Ifsuccessful, these “biofibers”could even replace fiberglass inengineered plastics. The CIC alsoplans to develop the first-evergrading system for biofibers, aswell as develop a database forthis information.

“It is essential to understandthe quality of these biofibers toensure consistency,” says SimonPotter, sector manager for productinnovation at the CIC. Once thedatabase is completed, CIC couldbecome the leading biofiber-test-ing facility in the world.

And also in Manitoba, GEAviation is expanding its $50 mil-lion, 122,000-square-foot cold-weather engine-testing facility inorder to make it functional year-round. The “one of a kind” facilityjust opened in 2012 on the cam-pus of Winnipeg’s internationalairport, which is located within theCentrePort footprint. (CentrePortis Winnipeg’s inland port.) LC

C14 LOCATION CANADA

HIGH-TECH SECTORS


CANADA’S THRIVINGECONOMY MEETSNEW-AGE CHALLENGES

By LESLIE WAGNER, GINOVUS, Economic Development Advisory Services

The aggressive use of incentive tools has provided meaningfulopportunities for Canadian-based businesses to offset costsassociated with growth.

anada is one of theworld’s weathiest nations,

with a population of approxi-mately 34.4 million people andthe 11th largest economy in theworld based on gross domesticproduct. Often referred to as theland of a thousand stereotypes,the nation may be entitled to abit of boasting based upon theoverall health and stability of theeconomy, strength of financialsystems, and success in economicdevelopment efforts.

Comprised of 10 provinces and3 territories, Canada is a majorexporter of oil, minerals, automo-biles, manufactured goods, andforest products. The top federalincome tax rate is 29 percent andthe top corporate tax rate is 15percent. Other significant taxesinclude the value added tax (VAT)

and a property tax. The overalltax burden amounts to approxi-mately 31 percent of total corpo-rate domestic income.

Canada’s highly competitiveregulatory framework promotesbusiness formation and opera-tion. With no minimum capitalstandards, starting a company inCanada requires only one proce-dure. Flexible labor regulationsenhance employment and pro-ductivity growth. The govern-ment of Canada prioritizes world-class infrastructure as a conduitfor more prosperous communi-ties, stronger economies, and acleaner environment.

The federal government workshand in hand with the provinces,territories, municipalities, andFirst Nations to support programson a nationwide scale. Provinces

typically administer the federalprograms on behalf of their indi-vidual regions. A prominent para-digm of this is the BuildingCanada Fund, a fund allocated toindividual provinces based onpopulation whose purpose is toinvest in public infrastructureowned by provincial, territorial,and municipal organizations. Thecollaborative effort of the federalgovernment and the sub-federalentities it supports is proving tobe successful in building a strongeconomic environment forgrowth and competitivenessthroughout Canada.

While the overall health andstability of the Canadian economyis thriving, there have been someunique challenges at the provin-cial level, most of which havebeen responded to with a strate-


C

LOCATION CANADA

ThrivingEconomy 7/30/13 1:05 PM Page C15

gic approach to improvement andaggressive use of financial incen-tives to help attract new businessand help existing companiesgrow. A closer look follows.

ALBERTAThe thriving economy in

Alberta holds its foundation in thenatural advantages of theprovince. Oil sands and oil andgas make energy a key economicdriver for the area. In addition toits natural resource assets, Albertaboasts one of the lowest overalltax rates in Canada and is theonly province with no provincialretail sales tax. On top of thisfavorable business environment,Alberta does not impose taxes oncapital or payroll at the provinciallevel, as is common in otherprovinces and the United States.

One challenge facing theprovince is Alberta’s ability tomaintain a strong supply of skilledlabor, especially for employerswho have a large number ofworkers reaching retirement age.Accordingly, measures to increasethe availability of skilled workersare in process, including immigra-tion policy initiatives, increasedparticipation for underemployedsegments of society, increasedproductivity and innovation, andefforts to raise the awarenessabout job opportunities to thoseoutside of the region. TheSoutheast Alberta WorkforceDevelopment Strategy includes ablueprint to inform, attract, retain,and develop the work force in thearea.

BRITISH COLUMBIAThe provincial corporate tax rate

in British Columbia is divided into ageneral corporate tax rate and asmall business corporate tax rate.The general corporate tax rate is 10percent, making the overall tax ratein British Columbia 25 percent. Thesmall business corporate tax rateapplies to businesses with less than$500,000 in annual income and is areduced rate of 2.5 percent.

British Columbia helps supportits regional economic develop-ment efforts with a Small BusinessTax Credit Fund of $33 million.These are tax credit awards to eli-gible new businesses that havebeen operating for less than twoyears. The incentive value can beup to 30 percent of the compa-ny’s annual income, with a maxi-mum value of $60,000. Eligiblebusinesses include those withinthe industries of community diver-sification, interactive digital mediadevelopment, research and devel-opment of proprietary technolo-gy, destination tourism, cleantechnology, and prescribed manu-facturing and processing.

MANITOBACorporate tax rates around 27

percent continue to place thisprovince in a competitive environ-ment. Manitoba has one the mostdiverse economies in Canada,with manufacturing making up thelargest sector (12 percent ofGDP), and finance, farming, andone of the country’s largest mediacompanies rounding out othermajor industries. Manitoba is con-

tinuing to build opportunitiesthrough resources and technolo-gy, competitive corporate busi-ness taxes, and a solid work force.

Manitoba’s Action Strategyfor Economic Growth is focusedon seven key areas that have setthe framework for the province’scontinued success: educationand skills, research and innova-tion, supporting investment,affordable government, growingimmigration, Manitoba’s greenenergy advantage, and buildingcommunities.

NEW BRUNSWICKRebuilding New Brunswick is

the economic developmentaction plan for New Brunswick2012–2016. Outlined in the planare initiatives to address the chal-lenges facing the economy inNew Brunswick, including anaging population, a relativelyweak labor market, and limitedtrade initiatives.

The Northern New BrunswickEconomic Development andInnovation Fund is specifically forthe northern counties of NewBrunswick and available for qualify-ing projects in existing companiesfor growth and development ofcapital resources; adoption of infor-mation and communication tech-nologies; research, development,and innovation; improving strategicinfrastructure; and advanced workforce development. The fund willprovide incremental assistancetotaling $200 million over a four-year period from April 2011through March 2015.

C16 LOCATION CANADA

CANADA’S THRIVING ECONOMY


USA

CANADA

It’s time.Get to know Chatham-Kent.It’s time.Get to know Chatham-Kent.

What are you waiting for?

· Corporate TAX rate 30-40% BELOW many

comparable state tax rates

· Excellent R&D TAX CREDIT program. Available

FUNDS to SUPPORT INNOVATION

· LOWEST R&D COSTS among the G7

· Labour TRAINING SUPPORT grants

· Equipment INVESTMENT GRANTS & LOW COST LOANS

· ONE TIER local government

· DEDICATED project manager is your CONTACT

for all LOCAL and PROVINCIAL APPROVALS

1.866.542.5994ckforbusiness.com

[email protected]


NEWFOUNDLAND & LABRADOR

Newfoundland and Labradorstruggled when the fishing indus-try collapsed in the early 1990s,but the province has made animpressive recovery with record-breaking employment levels inrecent years. Employers are readyto hire a strong and able workforce to continue momentum.

Economic development effortshave been strong, as can be seenin the development of theEconomic Diversification andGrowth Enterprises Program(EDGE), which provides incen-tives to encourage significantnew business investment in theprovince to help diversify theeconomy and stimulate new pri-vate-sector job creation. Incentiveopportunities include:

• A 100 percent rebate onprovincial corporate incometax and the provincial healthand postsecondary educa-tion tax for a period up to 15years depending upon thebusiness location

• A 50 percent rebate on fed-eral corporate income tax

• A further five-year period ofpartial rebates on both provin-cial and federal taxes, declin-ing by 20 percent in eachyear of the phase-out period

• A 100 percent rebate onmunicipal property and/ormunicipal business taxes fol-lowed by a five-year phase-out of such rebates withinmunicipalities that partici-pate in the EDGE program

NOVA SCOTIANova Scotia is battling a work

force decline expected to reduceits available work force by 20,000by 2014 (mostly due to retirees).Over the last 20 years, thisprovince has experienced lesseconomic growth than any otherprovince in Canada. Nova Scotiahas many economic developmentincentives available, and a majornew program was recentlyannounced. The Nova ScotiaJobs Here Program, under theauspices of the ProductivityInvestment Program, providesincentives for businesses to bemore productive, innovative, andcompetitive. The Jobs HereProgram is aimed at three mainobjectives for growing the neces-sary work force to support eco-nomic growth in the province:

1. Learning the right skills2. Growing the economy

through innovation3. Helping businesses com-

pete on a more global levelBusiness incentives available

under the ProductivityInvestment Program include:

• Payroll Rebate — Payrollrebates are available to compa-nies that are locating or expand-ing in the province. The payrollrebate is a return of a company’seligible gross payroll (withhold-ings). The amount is dependentupon on the economic benefitgenerated to the province and isgenerally paid out annually overa term of five years or less.

• Workplace Innovation andProductivity Skills Incentive —

This job training incentive providesfunding to companies to encour-age investment in skills develop-ment and certification, as well asto help companies adapt to newtechnologies and processes,improve productivity, and strength-en global competitiveness.

• Research and DevelopmentTax Credit — This program pro-vides companies investing inR&D up to a 35 percent credit oneligible investment.

ONTARIO Ontario promotes its competi-

tive work force as a differentiatorand engine for business growth.Sixty-four percent of adults in theOntario province have completedpostsecondary education.Ontario’s combined federal-provincial corporate income taxrate of 26.5 percent is lower thanthe average of G-8 and G-20countries and lower than the aver-age federal-state corporateincome tax rate in the U.S.

Ontario offers incentive pro-grams to support its economicdevelopment efforts to both exist-ing businesses and communities.

The Eastern OntarioDevelopment Fund (EODF) is adiscretionary fund designed tosupport regional economic devel-opment efforts by creating jobs,attracting investment, and promot-ing innovation. The funding streamis available for established busi-nesses that invest in excess of $10million and create 50 or more jobs.

The Southwestern OntarioDevelopment Fund (SWODF) is a

C18 LOCATION CANADA

CANADA’S THRIVING ECONOMY


Inth

eCEN

TRE OF EVERYTHING

CentrePort Canada—Canada’s only tri-modal inland port and

foreign trade zone. Unlimited development opportunities,

unparalleled transportation assets, large-scale industrial sites.

Connecting business to the world with a modern network of

rail, truck and air cargo routes.

Winnipeg’s growth is outpacing much of Canada. Skilled,

stable, abundant workforce. Corporate taxes 33 percent lower

than the United States.

Grow your business… in the middle of it all.

204.954.1997economicdevelopmentwinnipeg.com

204.784.1300centreportcanada.ca


discretionary fund that supportsregional economic developmentby creating jobs, attracting pri-vate-sector investment, and pro-moting innovation, collaboration,and cluster development insouthwestern Ontario.

The Strategic Jobs InvestmentFund (SJIF) is a discretionarygrant and loan program designedto support leading-edge invest-ments and jobs in Ontariofocused on clean/green technolo-gies, financial services, informa-tional and communication tech-nology, and life sciences. In orderto qualify for funding, a companymust meet minimum projectthreshold requirements.

PRINCE EDWARD ISLANDWith significant focus on inno-

vation, Prince Edward Island’seconomic development effortsare highly innovative.

The Innovation PEI initiative isfocused on advancing economicdevelopment by investing in peo-ple, innovation, and infrastruc-ture. Key sectors that have dis-played high potential for eco-nomic growth within the provinceare being targeted, includingaerospace, bioscience, informa-tion technology, financial servic-es, and renewable energy.Incentive tools are available tobusinesses to help them attractand expand industry including:

• Innovation and DevelopmentLabor Rebate — A refundablewage rebate of 37.5 percent isavailable to projects in support ofthe development and/or com-

mercialization of new products,processes, and services.

• Specialized Labor TaxRebate — This is a lower labortax rate used to hire and recruitkey leadership personnel in themanagement and technical spe-cialist areas for companies estab-lishing operations where knowl-edge and skill is not yet availablein the local labor market.

Tax holidays for targetedindustries are available, as areprograms based on capitalinvestment and performance-based job creation.

QUEBECQuebec’s ministries of Finance,

Tourism, and EconomicDevelopment have recentlymerged to form the new Ministryof Finance and the Economy(MFEQ). This province offerssome of the lowest tax rates inCanada, with an overall corporatetax rate of approximately 27 per-cent. There are several economicdevelopment programs in placeto assist growth in the region.

The Quebec EconomicDevelopment Program (QEDP)supports the economic develop-ment efforts of the region, includ-ing entrepreneurship, businessperformance, and investment.

The objectives of theCommunity Futures Program(CFP) include stability, economicgrowth, job creation, developingand maintaining sustainable com-munities, and competitive localeconomies in rural areas.

Infrastructure programs support

improvements, rehabilitation, andexpansion of existing communityinfrastructure. Incentive programscome in the form of grants, non-repayable and repayable contribu-tions, depending on the pro-grams. Nonprofit, public, or para-public organizations and FirstNations governments are eligiblefor grant programs.

SASKATCHEWANA number of economic devel-

opment incentives help supportgrowth. New capital investment inSaskatchewan hit an all-timerecord of $20.2 billion in 2012,according to a report by StatisticsCanada. The incentives below areaimed at offsetting business costsof a growing corporation:

• Manufacturing andProcessing Investment Tax Credit— This nonrefundable income taxcredit is designed to encourageplant and equipment investment.This credit is available to all man-ufacturing and processing corpo-rations with some allocation oftaxable income to Saskatchewan.

• Research and DevelopmentTax Credit — This 15 percentcredit is fully refundable forCanadian-controlled private cor-porations; up to $3 million isavailable for qualifying researchand development expenses.

• Municipal Property TaxAbatement — Municipalities areable to offer five-year propertytax abatements. The amount ofthe incentive, qualifications, andmanagement are defined permunicipality. LC

C20 LOCATION CANADA

ADVANCED MANUFACTURING


THE BI-COASTALGATEWAY TONORTH AMERICACanada’s national government has developed and is now implementing a series of gateway and corridor strategiesin order to become the preferred route into and out of North America.

hile our Great WhiteNorth neighbor is one of

the United States’ largest tradingpartners, Canada also has agrand history of shipping andlogistics ties to Europe and Asia.The nation’s vast reserves of natu-ral resources and its own innova-tion and manufacturing prowesshave found favor in marketsaround the globe. Logistics andfreight movement are now theareas of excellence that Canadaaspires to, and the country isbuilding a set of strategies tobecome the preferred gatewayinto and out of North America.

To do this, the national gov-ernment has developed and isnow implementing a series ofgateway and corridor strategiesacross the country. Each is a

direct partnership betweenTransport Canada and all of theaffected provinces. The strategiesare intended to provide a com-prehensive approach towardtransportation, defining eachgateway as a multimodalentry/exit point through whichgoods and international passen-gers move through local, region-al, and international markets.Each gateway then connectsthrough one or more trade corri-dors, defined as a multimodallinkage of international passengerand/or freight flows betweenmajor markets.

Each of the three gatewaystrategies (Atlantic, Ontario-Quebec, and Asia-Pacific) isintended to be an integratedpackage of policy and long-term

infrastructure investment toadvance Canada’s strategicadvantage for logistics and eco-nomic development. Execution ofeach strategy has explicit stepsincluding:

• Infrastructure — Throughexamining the current andexpected demands andcapacity upon key facilities inthe transportation network,the country and provincesare determining where tomake key investments. Thisincludes identifying andeliminating critical barriers to flow.

• Promotion and marketing —By understanding how marketsare changing, the country isdeveloping plans for marketingand trade missions to specific


W

LOCATION CANADA

By Christopher Steele, COO AND NORTH AMERICA PRESIDENT, Investment Consulting Associates

BicoastalGateway 7/30/13 1:13 PM Page C21

industries around the globe.• Border efficiency and security —

International trade involvesborder crossings by defini-tion. Canada’s strategieshinge on having securitymeasures that are robust andstill allow for the timely pas-sage of goods and passen-gers. The U.S.-Canada bor-der is of particular impor-tance, and Transport Canadahas been working with itsU.S. counterparts for years todevelop effective practices.

• Policy and regulatory issues —The government is explicitlyworking with the private sec-tor to understand how poli-cies impact business and todevelop regulations that min-imize undue negative busi-ness impacts, while achievinga safe, secure, efficient, andenvironmentally responsibletransportation system.

• Technology — Strategies

include developing systemsthat maximize the ability ofthe transportation system toimprove accessibility, easetraffic and congestion, andlimit the adverse impacts offreight and passenger move-ment in areas such as theenvironment.

• Knowledge and skills — Aspart of the overall policy, thegovernment is makinginvestments in education andwork force development toensure that there is a robustskills base available to bothindustry and the public sec-tor to allow for the continuedsustainability of the system.

• Governance — The gatewayapproach depends uponpartnerships and collabora-tion across modes of trans-portation, across borders,and across the public andprivate sectors. Policies andinvestments are specifically

intended to complementmarket-oriented transporta-tion needs, while creating apositive climate for privateinvestment and also safe-guarding the public interest.i

Each of the gateways is takingan approach that includes eachof the above steps, but with aneye toward its specific circum-stances and opportunities goingforward.

EAST COAST GATEWAYSIn 2010, Transport Canada —

in cooperation with the provincialgovernments of Nova Scotia,New Brunswick, Prince EdwardIsland, and Newfoundland &Labrador — published a full“Atlantic Gateway and TradeCorridor Strategy.” This plan wasan explicit attempt to buildopportunities for the region’seconomic success through posi-tioning it as a logistics centerlinking Europe to the NorthAmerican heartland. The plan’svision speaks for itself: “Canada’sAtlantic Gateway and TradeCorridor is a strategic, integrated,and globally competitive trans-portation system for internationalcommerce to and from NorthAmerica.”ii

The Atlantic region alreadyhandles significant levels of inter-national trade, and exportsalready contribute to about onethird of the region’s GDP.Significant export markets includerefrigerated cargo, agriculture,forestry, energy, minerals, andseveral manufactured products.

C22 LOCATION CANADA

BI-COASTAL GATEWAY

Vancouver Waterfront

BicoastalGateway 7/31/13 11:18 AM Page C22

The provinces have also placed apriority on energy and containertrade, with specific targets inAfrica, Central America and theAntilles, Europe, the Middle East,and North and South America.

THE ASIA PACIFIC GATEWAYFirst announced in 2006,

Canada’s Asia Pacific Gatewayand Corridor Initiative (APGCI) isa network of transportation assetsand corridors across westernCanada. By investing in infra-structure, the Canadian federalgovernment plans to strengthenthe country’s overall trade posi-tion, particularly as it concernstrade with Asia. Main investmentsinclude strengthening road, rail,and air connections between thePacific ports of Vancouver andPrince Rupert and various pro-duction and logistics centersacross the country.iii

The initiative is also aimed atmaking the Canadian transporta-tion network a more attractivealternative to companies in theU.S. Pacific Northwest andMidwest looking to move materi-als to and from Asia. The initia-tive focuses on gateways andcorridors, providing fully integrat-ed ways of moving goodsbetween North American andAsian markets. For example, byinvesting in the CanadianNational and Canadian Pacificrailroads — as well as in infra-structure at key border crossings— the Canadian transportationnetwork can provide a seamless,one-carrier network to bring

materials from Asia to marketssuch as Memphis, Minneapolis,and Chicago.

THE CENTRAL PASSAGEWhile not as world-changing

as the fabled Northwest Passage,the Ontario-Quebec ContinentalGateway and Trade Corridor isthe third major corridor and per-haps the most immediately signif-icant to the nation’s plans foreconomic growth. The Ontario-Quebec set of logistics channelsdiffers somewhat from theAtlantic and Asia-Pacific in thefollowing ways:

• Consumer population andproduction density — Thisgateway corridor providesdirect access to major NorthAmerican markets with over135 million consumers over avery short distance (roughly1000 km).

• Existing economic presence— Investment in this corridoris necessary to maintain eco-nomic health, as it is alreadythe main economic corridorof Canada. The governmentestimates the value of tradein the corridor at about $560billion, or roughly threetimes the combined value oftrade in the two otherCanadian gateways.

• Integration with existing mul-timodal Infrastructure — Themultimodal transportationsystem already supports theformation of a formal corri-dor organization. Theregion’s infrastructure

includes four modes alongthe St. Lawrence-Great Lakescorridor and connects to theNorth American heartland.

In each of the three major cor-ridors, a clear agreement hasbeen signed among the affectedprovincial governments, as well asthe government of Canada. Eachalso has identified an explicitcoordinator to reach out to itscounterparts in the United States.Each strategy has outreach to thepartners in the United States asan explicit work task.iv

DATA MANAGEMENT AND A COMPREHENSIVEFRAMEWORK

While each of these initiativeshas provided advantages forCanada, Transport Canada hasbeen working to collect andinterpret data across the nationalsupply chain to seek out andaddress choke points and investin other enhancements. Originallymeant as a means for keeping aneye on Canada’s performanceagainst the U.S. and Mexico,Canada’s data collection from pri-vate logistics and shipping firmsmeasures the flow of goods fromWest Coast ports and throughvarious channels in the nationalsupply chain, and examines whenand how they arrive at their desti-nations.v The country’s commit-ment to working with privatefirms in a partner relationship(rather than looking solely onCustoms data, for example) pro-vides a much more robust assess-ment of what is actually happen-


LOCATION CANADA


ing across the system.While the current phase of the

project is focused upon goods mov-ing from the West Coast ports toand from the interior, subsequentwork will focus upon the supplychain between Antwerp as well asother European ports to cities in theCanadian and U.S. interior. Putanother way, the data initiative willspecifically build upon and enhancethe existing gateway and corridorinitiatives. In fact, the entire nationalcorridor exercise and data infrastruc-ture suggest an analogy to a private-sector network optimization exer-cise, but one which specificallybrings the private sector and public

infrastructure together in a compre-hensive fashion. If successful,Canada could provide a new modelon how to use freight and passengertransportation networks and datamanagement to drive national eco-nomic development. All thatremains to be seen are the results. LC

Christopher Steele is globalCOO and the North Americanpresident of InvestmentConsulting Associates, a businessconsulting firm specializing inlocation strategy, site selection,industrial development, and busi-ness attraction. He previouslyserved as president of the Real

Estate Line of Business atTranSystems and as a senior manager in Ernst & Young’s RealEstate Advisory Services Group.He may be reached at [email protected] or you may follow his tweets at @icanortham.

Notes:i National Policy Framework for Strategic

Gateways and Trade Corridors. Office of theMinister of Transport, 2009

ii Atlantic Gateway and Trade Corridor Strategy,2010. Office of the Minister of Transport, 2010

iii http://www.asiapacificgateway.gc.ca/apgci.html – accessed July 1, 2013

iv Ontario-Québec Continental Gateway andTrade Corridor Backgrounder. Transport Canada,the Ministry of Transportation of Ontario, and theMinistère des Transports du Québec

v Presentation given by Transport Canada at the International Transport Forum, Leipzig,May 2012

C24 LOCATION CANADA

BI-COASTAL GATEWAY

INDEX

SP

ON

SO

RS

MANITOBA

CentrePort Canada C19Located in Winnipeg, Manitoba — the heart of the continent and one-hour north of the U.S. border —CentrePort Canada is a tri-modal (rail,truck, air cargo) inland port and for-eign-trade zone that provides accessto North American and global markets.CentrePort offers a range of savings,including corporate income taxes thatare 33 per cent lower than in the U.S.Diane Gray, President and CEOCentrePort Canada Inc.259 Portage Ave., Suite 100Winnipeg, Manitoba R3B 2A9204-784-1300 I Fax: 204-784-1308Diane.Gray@CentrePortCanada.cawww.CentrePortCanada.ca

Economic Development C19Winnipeg Inc.Economic Development Winnipeg Inc.(EDW) is the lead economic develop-ment agency for Winnipeg. EDW facil-itates global investment promotionand attraction, local business retentionand expansion, as well as targetedmarketing initiatives to advance keyindustries and define future economicgrowth for the city of Winnipeg. Greg Dandewich, Senior Vice President Economic Development Winnipeg Inc. (EDW)259 Portage Avenue, Suite 300Winnipeg, Manitoba R3B 2A9204-954-1982 or 1997 I Fax: 204-942-4043greg@economicdevelopmentwinnipeg.comwww.economicdevelopmentwinnipeg.com

ONTARIO

Chatham-Kent Economic C17Development ServicesChatham-Kent businesses appreciatethe skilled work force, the location toCanadian and U.S. markets, the lowbusiness operating costs, and the widerange of greenfield and turnkey prop-erties. This single-tier, municipally gov-erned community has taken anaggressive stance on attracting newinvestment by providing dedicatedproject managers to assist companieswith their development plans.Michael F. Burton, DirectorChatham-Kent Economic Development Services445 Grand Avenue WestP.O. Box 944Chatham, Ontario N7M 5L3519-351-7700 I Fax: 519-351-7852ckeds@chatham-kent.cawww.ckforbusiness.comwww.chatham-kent.ca

City of Oshawa C10Oshawa (population: 155,000) offersthe right people and opportunities forsustainable business growth. Locatedonly 60km from downtown Toronto,Oshawa is one of Canada’s fastestgrowing areas and connects companieswith convenient access to the country’slargest consumer market.Economic Development ServicesCity of Oshawa2nd Floor, Rundle Tower, City Hall50 Centre Street SouthOshawa, Ontario, L1H 3Z7905-436-5617 I 1-800-6-OSHAWA (1-800-667-4292)[email protected]/business

County of Simcoe C13Ideally situated just north of theGreater Toronto Area, stretching fromthe shores of Lake Simcoe to GeorgianBay, Simcoe County’s combination oflocation, lifestyle, and opportunitymakes it a great place to live and dobusiness. The region’s diverse commu-nities and natural amenities inspire res-idents and the business community.Robert Lamb Manager, Economic DevelopmentCounty of Simcoe1110 Hwy. # 26Midhurst, Ontario L0L 1X0705-726-9300 x1045 I Fax: [email protected]

City of Woodstock C2Woodstock, Ontario, is centrally locatedin the heart of southern Ontario.Situated at the crossroads of super-highways 401 and 403, we enjoy thebest ground transportation system in the province. With our relaxed andaffordable lifestyle you will see why yourbusiness belongs at the Crossroads!

Len Magyar, Development CommissionerCity of Woodstock500 Dundas StreetP. O. Box 1539Woodstock, ON N4S 0A7519-539-2382 x 2112 I Fax: 519-539-3275lmagyar@cityofwoodstock.cawww.cometothecrossroads.comwww.cityofwoodstock.ca

QUEBEC

Aéroports de Montréal C6, 7Greater Montréal is among the rareplaces in the world where all the maincomponents of an aircraft are manu-factured within a 20-mile (30-kilometer)radius. Nearly two-thirds of Canadianproduction is centered here. Morethan 250 enterprises are located atADM’s two airports, generating agrand total of 60,000 direct and indirect jobs.Stephanie Lepage, Manager, MarketingAéroports de Montréal800 Place Leigh-CapreolBureau 1000Dorval, Quebec H4Y [email protected]


Documents

Location Canada 2013