Panel 1 Canada s Investment Advantage

Size: px

Start display at page:

Download "Panel 1 Canada s Investment Advantage"

Scot Copeland
5 years ago
Views:

Panel 1 Canada s Investment Advantage Competitive Alternatives 2014 - KPMG s Guide to International

1 Panel 1 Canada s Investment Advantage Competitive Alternatives KPMG s Guide to International Business Location Costs 8 th Chinese Enterprises Outbound Investment Conference April 2014 Jamie Samograd

2 Presentation Outline 1. About Competitive Alternatives 2. International cost results 3. Cost trends 4. City results 5. Other competitiveness factors 6. Further information 2

3 About Competitive Alternatives

4 About the Study Extensive guide to Business Locations is 10 th published edition Ranks locations based on business costs - 10 countries, 100+ cities - 19 industries, 26 business cost factors - Separately compares non-cost business factors 6 months of research 50,000+ data elements Can be used as reference for: - Relocation, Expansion, Merger, Acquisition or Offshoring 4

5 Analysis Framework 5

6 International Locations 100+ cities in 9 mature and 1 emerging country * Not all study cities are shown due to space constraints 6

7 Industries and Sectors Overall Results Services Sector Manufacturing Digital Services Software development Video game production R&D Services Biomedical R&D Clinical trials management Electronic systems develop and test Corporate Services International financial services Shared services center Advanced batteries Aircraft parts Auto parts Electronics assembly Food processing Medical devices Metal machining Pharmaceuticals Plastic products Precision components Specialty chemicals Telecom equipment 7

8 Top Highlights For Canada Ranked #1 among 9 mature markets studied Business costs 7.2% lower than the US Business costs increased by 0.7% since 2012 Canada is among 4 countries (France, UK and Netherlands) that offer the lowest effective corporate income tax rates across business sectors 8

9 International Cost Results

10 Cost Components Analyzed 10

11 International Cost Results % cost advantage/disadvantage relative to US Source: Competitive Alternatives, KPMG LLP (Canada),

12 Sector Results Digital Services % cost advantage/disadvantage relative to US Source: Competitive Alternatives, KPMG LLP (Canada),

13 Sector Results R&D % cost advantage/disadvantage relative to US Source: Competitive Alternatives, KPMG LLP (Canada),

14 Sector Results Corporate Services % cost advantage/disadvantage relative to US Source: Competitive Alternatives, KPMG LLP (Canada),

15 Sector Results Manufacturing % cost advantage/disadvantage relative to US Source: Competitive Alternatives, KPMG LLP (Canada),

16 Cost Trends

17 Cost Trends Since 2012 Canada Back in first place among mature markets Cost index down from 95.0 to 92.8 Significant cost factor trends - 3% currency depreciation against the US$ - Decrease in office facility lease costs - Decrease in sea freight rates - Decrease in natural gas rates - Increase in industrial facility lease costs - Increase in air freight rates - Increase in electricity rates 17

18 Taxes Tax costs: - Include income, property, sales, capital, other taxes - Represent up to 14% of location-sensitive costs - Effective income tax rates are calculated net of generally applicable tax credits and incentives: Lowest 2 nd 3 rd Digital services Canada UK France R&D France Netherlands Canada Corporate services UK Canada Netherlands Manufacturing UK Canada Netherlands 18

19 City Results

20 Regional Results Major International Cities - Mexico City Toronto Milan Paris London Los Angeles Frankfurt Sydney Tokyo New York City Total operating costs, including taxes United States = 100% 20

21 Costs Across North America 21

22 Regional Results US/Canada Pacific population > 2 million - Vancouver, BC Portland, OR Las Vegas, NV Riverside-San Bernardino, CA Sacramento, CA San Diego, CA Los Angeles, CA Seattle, WA San Francisco, CA Total operating costs, including taxes United States = 100% 22

23 Regional Results US/Canada Northeast Population > 2 million - Montreal, QC Toronto, ON Cincinnati, OH Cleveland, OH Pittsburgh, PA Baltimore, MD Detroit, MI Philadelphia, PA North Virginia (Metro DC), VA New York City, NY Total operating costs, including taxes United States = 100% 23

24 Regional Results US/Canada Northeast Population < 2 million - Quebec City, QC Niagara Region, ON Sudbury, ON Youngstown, OH Lexington, KY Charleston, WV Saginaw, MI Indianapolis, IN Buffalo, NY Wilmington, DE Trenton, NJ 99.5 Total operating costs, including taxes United States = 100% 24

25 Regional Results New England/Atlantic Canada - Moncton, NB Charlottetown, PE Fredericton, NB Halifax, NS St. John's, NL Bangor, ME Providence, RI Manchester, NH Burlington, VT Hartford, CT Boston, MA Total operating costs, including taxes United States = 100% 25

26 Other Competitiveness Factors

27 Other Competitiveness Factors Broad array of factors influence location decisions 27

28 Other Competitiveness Factors Competitive Alternatives main report also includes a comparison of other competitiveness factors - Non-cost factors that influence location decisions - Separate from the primary analysis of business costs Aspects of the business environment compared - Economic conditions - Labor availability and skills - Innovation - Infrastructure - Regulatory environment - Quality of life and cost of living

29 For Further Information

30 For Further Information Full results available from - Download reports and summaries - Profiles of all cities included in the study - Access detailed study results - Compare selected countries and cities - Results for all 19 industry operations - Assess sensitivity to exchange rates - Contact study leaders 30

31 Jamie Samograd The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International. 31

The MetLife Market Survey of Nursing Home & Home Care Costs September 2004

The MetLife Market Survey of Nursing Home & Home Care Costs September 2004 Mature Market Institute The MetLife Mature Market Institute is the company s information and policy resource center on issues