Fredericton, NB ranks 1st for most competitive city for business in the country
Today, KPMG in Canada released its Competitive Alternatives 2016 report, revealing Canada as the most cost competitive mature market for business. The high value of the US dollar has enabled Canada to maintain its competitiveness and status in the international rankings, despite higher local business costs such as lease costs for downtown and suburban office space and reductions in federal R&D tax credits. The study, which is conducted biennially, looks at more than 100 cities and 10 countries around the world, examining 26 significant business cost elements, including labour, facilities, transportation, utilities and taxes.
“Over the past year, the weakening Canadian dollar and its potential impacts on the future of our economy have caused concern among Canadians. This study sheds light on a more positive outlook, highlighting that the high value of the US dollar has actually been a driver in improving Canada’s competitiveness and overall cost advantage. While we wait to see where our economy is headed, this study continues to demonstrate Canada’s position as a cost competitive location for business,” said Greg Wiebe, Partner, KPMG.
Mexico, a NAFTA partner and the only high growth/emerging country included in the study, ranks first overall among the 10 countries in the study, with lower business costs than any of the mature market countries examined.
Among 111 cities featured in the study, 17 were Canadian. Fredericton, NB ranks as the most competitive in Canada, having edged ahead of 2014’s leader, Moncton, NB. The study also reveals that all Canadian cities are more cost competitive than any of the US cities featured; and Montreal, Toronto and Vancouver rank among the most competitive major cities worldwide.
“Each Canadian city included in the study, amongst many others across the country, will benefit from the federal government’s commitment to driving investment in transportation, climate mitigation and social infrastructure. This commitment will continue to make Canada an attractive investment opportunity for organizations and their employees, setting the stage for our competitive future,” said Brad Watson, National Practice Leader, Infrastructure, KPMG.
Canada vs. the world
Rankings and cost index results for all countries (listed from lowest cost to highest cost)
|2016 Rank||Country||2016 Cost Index1||% Cost advantage versus US2||2014 Rank|
|High Growth Markets|
Canadian and US cities (all cities with metropolitan populations of 2 million or more), Montreal, QC continues to be the most cost competitive in Canada, followed by Toronto, ON and then Vancouver, BC, ranking ahead of all 31 large US cities.
The rankings of the 17 Canadian cities paint an interesting picture of the costs associated with doing business in Canada:
Rankings and cost indices for featured Canadian cities (listed from lowest cost to highest cost)
|2016 Rank||City2||2016 Cost Index2||2016 Rank||City2||2016 Cost Index2|
|4||Charlottetown||83.9||13||Gatineau3 (National Capital Region)||85.8|
|8||Sault Ste. Marie||85.0||16||Edmonton||86.4|
Competitive Alternatives report [PDF 5.63 MB]
Canadian regional backgrounder [PDF 256 KB]
@KPMG_Canada – #BizCosts #CompAlt16
About KPMG's Competitive Alternatives Study
KPMG's 2016 Competitive Alternatives study provides an independent comparison of international business locations in more than 100 cities in 10 countries around the world.
Competitive Alternatives is a biennial KPMG study that focuses on business locations in the NAFTA marketplace, as well as leading mature market countries in Europe and Asia Pacific. KPMG initiated this study to help Canadian and international businesses make informed global business decisions. Competitive Alternatives is also intended to assist economic developers and corporate site selectors in understanding these competitiveness issues across a broad range of jurisdictions.
To access the full report, please visit CompetitiveAlternatives.com.
Exchange rates per USD used in the Competitive Alternatives 2016 study are as follows: AUD $1.39, CAD $1.34, EUR €0.91, JPY ¥121.44, MX $16.76 and UK £0.66.
KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm of KPMG International Cooperative (“KPMG International”). KPMG member firms around the world have 174,000 professionals, in 155 countries.
The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss entity. Each KPMG firm is a legally distinct and separate entity, and describes itself as such.
National Manager, Communications
KPMG in Canada
National Manager, Communications
KPMG in Canada