Canada tops in industrial cost-competitiveness
Ottawa, ON -- Feb. 4, 2002 -- A new study ranks Canada as the leading cost-competitive industrial country in the wo...
Ottawa, ON — Feb. 4, 2002 — A new study ranks Canada as the leading cost-competitive industrial country in the world. The study, Competitive Alternatives: Comparing Business Costs in North America, Europe and Japan, was conducted by the management consulting firm KPMG. The 2002 study marks the third consecutive time that Canada has come out ahead of other industrialized nations.
“The KPMG study shows that Canada is still the low-cost leader among industrial nations,” said Canada’s international trade minister, Pierre Pettigrew. “As the overall lowest-cost country for conducting business, Canada offers distinct and compelling advantages to those global firms seeking the best location to establish or expand their operations.”
The 10-month international study of leading industrial countries provides comparative after-tax costs of starting up and operating a business for a period of 10 years, taking into account factors such as labour costs, taxes, transportation costs, energy costs and facility costs.
Canadian cities ranked higher than many of their international counterparts. In particular, Canadian cities scored higher than U.S. cities in all five North American regions and Canada averaged 14.5% cost savings for international investors over the U.S.
The report examines a number of industries in 86 cities in Austria, Canada, France, Germany, Italy, Japan, the Netherlands, the United Kingdom and the United States.
Canada ranked first in seven of the industries studied and posted impressive advantages in manufacturing, research and development, software and corporate services.
Most European countries now rank ahead of the U.S. in cost competitiveness. As in the 1999 study, Japan has the highest business cost structure among the leading industrialized countries.
The KPMG study was sponsored by 45 economic development agencies in Austria, Canada, Italy, the Netherlands, the United Kingdom and the United States. The full report is available at www.competitivealternatives.com. The web site also features an interactive costing model that can determine the impact of fluctuating exchange and interest rates.
“Canada has created one of the most attractive investment climates in the world,” commented federal industry minister Allan Rock.
By Bill Roebuck, Editor