Competitive Alternatives
Backgrounder
March 2016
The Competitive Alternatives study compares business costs and other competitiveness
factors in more than 100 cities, in 10 countries. The study is intended to help Canadian
and international businesses make informed global business decisions and assist
economic developers and corporate site selectors in understanding these costs across
a broad range of jurisdictions.
Included below is a breakdown of the main study findings for Canada. It includes the three largest Canadian cities ranked
against major global cities (with populations greater than 2 million), as well as rankings for all 17 Canadian cities featured
in the study.
To speak with a KPMG subject matter expert about this study, please contact: [email protected].
CANADA
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The study reveals Canada as the most cost competitive mature market for business.
The rise in the value of the US dollar during 2015 is the main driver of the improved cost results for Canada – Canada’s
overall cost advantage relative to the US increased from 7.2 per cent in 2014 to 14.6 per cent in 2016.
A strong US dollar offset some trends toward higher local business costs in Canada, including increases in lease costs for
downtown and suburban office space, increases in costs for industrial land, and reductions in federal R&D tax credits.
All Canadian cities included in the study were found to be more cost competitive than any of the US cities featured.
Canada ranks second (behind Mexico) in all four sectors examined, with its strongest result in the R&D services sector,
with a cost advantage of 27.7 per cent relative to the U.S. baseline.
From a tax perspective, Canada, the UK and the Netherlands offer the lowest effective rates of corporate income tax
across a range of business sectors, all helped by tax incentives designed to support R&D and/or other high tech activities.
COMPARING CANADIAN CITIES AGAINST MAJOR CITIES
Montreal, QC (2016: 9th / 17 cities; 2014: 8th / 15)
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The study’s Executive Summary features a comparison of 29 major global cities selected from among the 111 study cities.
In that list, Montreal has the 3rd lowest business costs among the 29 major global cities, ranking behind only two major
cities in Mexico, Monterrey and Mexico City.
Montreal ranks 9th among the 17 featured Canadian cities and 11th among all 111 featured cities.
Since 2014, Montreal has benefited from a reduction in industrial lease rates and the greatest reduction in transportation
costs of any Canadian city. At the same time, Montreal has also been negatively impacted by reductions in some Quebec
incentive programs, including a reduction in the R&D wage tax credit from 17.5% to 14.0% and the elimination of a special
27.5% R&D tax credit rate for biomedical firms.
© 2016 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.
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Within the Northeast US/Central Canada region, Montreal ranks 4th with costs lower than two other Canadian cities and
all 17 US cities compared.
Within Canada, Montreal ranks 2nd for low transportation costs, equal 2nd for industrial leasing costs, and 4th for
electricity costs. However, Montreal has the highest property tax costs among the 17 cities compared.
Montreal’s strongest results are in the manufacturing and the digital services sectors, ranking 6th in Canada in both
sectors. In comparison, Montreal ranks 13th in corporate services and 14th in R&D services.
Within the manufacturing sector, Montreal achieves its best results in the food processing and plastic products industries,
having the 2nd lowest costs among all 17 Canadian cities in these two industries.
Toronto, ON (2016: 12th / 17 cities; 2014: 11th / 15)
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The study’s Executive Summary features a comparison of 29 major global cities selected from among the 111 study cities.
Toronto is listed as having the 4th lowest business costs among the 29 major global cities, behind only two cities in
Mexico (Mexico City and Monterrey) and Montreal.
Toronto ranks 12th among the 17 featured Canadian cities and 14th among all 111 featured cities.
Since 2014, Toronto moved down one place in the Canadian rankings, due to changes in the featured cities.
Since 2014, changes in local cost factors for Toronto were typical with the exception of labour costs. Toronto saw the
lowest increase in total labour costs among the 17 Canadian cities over the last two years, with savings in employee
benefit costs being the primary driver of this change.
Within the Northeast US/Central Canada region, Toronto ranks 5th with costs lower than Gatineau (QC, National Capital
Region) and all 17 US cities compared.
Among the 17 Canadian cities compared, Toronto has the lowest transportation costs, is second lowest (equal with
Montreal) for industrial facility leasing costs, but has the highest electricity costs.
Toronto’s strongest results are in the manufacturing sector, ranking 7th among Canadian cities, and in the digital services
sector, ranking 9th. In comparison, Toronto ranks 15th in both R&D services and corporate services.
Within the manufacturing sector, Toronto achieves its best result in advanced batteries and fuel cells, ranking 2nd among
the Canadian cities, while it ranks 3rd for both food processing and plastic products manufacturing.
In the digital services sector, Toronto stands out for video game production, ranking 5th among the Canadian cities, ahead
of Montreal (6th). Ontario’s Interactive Digital Media Tax Credit substantially enhances Toronto’s performance in this
industry.
For international financial services, Toronto’s 16th-place positions it as the second most expensive city in Canada.
However, compared to other major financial centers, Toronto’s ranking of 19th among 111 cities places it ahead of Sydney
(31st), Frankfurt (44th), Tokyo (92nd), Chicago (102nd), London (106th) and New York (111th).
Vancouver, BC (2016: 15th / 17 cities; 2014: 15th / 15)
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The study’s Executive Summary features a comparison of 29 major global cities selected from among the 111 study cities.
Vancouver has the 5th lowest business costs among the 29 major global cities in that list, behind cities in Mexico (Mexico
City and Monterrey) and Canada (Montreal and Toronto) but marginally ahead of Manchester (the lowest-cost major city in
Europe).
Vancouver ranks 15th among the 17 featured Canadian cities and 17th among all 111 featured cities.
Since 2014, Vancouver has effectively moved up one place in the rankings, having moved ahead of Edmonton since the
last study. However, the net addition of Gatineau to the study means that Vancouver’s actual ranking remains unchanged
at 15th place.
Over the two year period, Vancouver saw the second lowest increase in total labour costs among the 17 Canadian cities
(behind only Toronto), with low growth in all labour cost categories contributing to this outcome. Vancouver also saw a
© 2016 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.
greater decline in transportation costs than many Canadian cities. However, rising facility costs continue to be an issue for
Vancouver.
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Within the Pacific US/Canada region, Vancouver ranks 2nd (behind only Kelowna). Costs on the US West Coast are
generally higher than in other regions of the US, and Vancouver ranks ahead of all of its US West Coast competitors,
including: Portland, Seattle, San Francisco, Los Angeles and San Diego in cost competitiveness.
Within Canada, total labour costs in Vancouver are lower than in the other big Canadian cities, aided by very low costs for
statutory plans (i.e. Government Pension Plans, Public medical plans, Unemployment insurance, and Workers’
compensation). Low utility costs also represent an advantage for Vancouver, with the 3rd lowest costs for both electricity
and natural gas. However, Vancouver has the highest industrial land costs and the highest office leasing costs among the
17 Canadian cities compared.
Vancouver’s strongest results are in the manufacturing sector for industries with significant export orientation, thanks to
the global access provided by Canada’s largest port. Vancouver ranks 10th among the 17 Canadian cities in the
manufacturing sector. In comparison, Vancouver ranks 12th in corporate services and 15th in digital services. In the R&D
services sector, Vancouver ranks 17th (last), with Vancouver’s high facility costs playing a significant role in the total cost
picture for this sector.
Vancouver also fares well for international financial services, ranking ahead of both Toronto and Calgary in this industry
that is a source of strong competition between the three cities.
COMPARING THE TOP 17 RANKED CITIES FEATURED IN THE STUDY
Fredericton, NB (2016: 1st / 17 cities; 2014: 4th / 15)
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Fredericton ranks 1st for having the lowest business costs in Canada in 2016. Globally, Fredericton ranks 3rd among all
111 featured cities, behind two Mexican cities in the study.
This marks the first time that Fredericton has topped the list of Canadian cities included in Competitive Alternatives.
Moving up from 4th among Canadian cities in 2014, low increases in labour costs and reductions in lease costs (especially
for industrial) pushed Fredericton past Moncton, Charlottetown and Quebec City.
Within the New England/Atlantic Canada region, Fredericton ranks 1st overall with the lowest costs among the 11 cities
compared in this region.
Fredericton ranks 3rd in total labour costs (including all statutory and benefit costs), within Canada. Fredericton also
benefits from having the 4th lowest costs in Canada for purchasing industrial land.
The manufacturing and R&D sectors are where Fredericton sees its strongest results, ranking 1st and 2nd respectively
among the 17 Canadian cities. In comparison, Fredericton ranks 3rd in corporate services and 5th in digital services.
Within the manufacturing sector, aircraft parts, pharmaceuticals and precision components are among the specific
industries where Fredericton sees its best results, ranking 1st in Canada.
Moncton, NB (2016: 2nd / 17 cities; 2014: 1st / 15)
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Moncton ranks 2nd among the 17 featured Canadian cities and 4th among all 111 featured cities.
Since 2014, cost factor changes in Moncton have generally been in line with other Canadian cities, except for a rise in
industrial lease rates.
Within the New England/Atlantic Canada region, Moncton ranks 2nd with costs lower than three other Canadian cities and
all six US cities compared.
Within Canada, Moncton comes in 2nd lowest for total labour costs and industrial land costs.
Moncton’s strongest results are in the R&D services sector, where it ranks 1st in Canada, and the corporate services
sector where it ranks 2nd (behind Charlottetown). In comparison, Moncton ranks 3rd in manufacturing and 4th in digital
services.
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firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
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Within the manufacturing sector, medical devices, specialty chemicals and telecom equipment are among the specific
industries where Moncton ranks 1st in Canada.
Quebec City, QC (2016: 3rd / 17 cities; 2014: 3rd / 15)
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Quebec City ranks 3rd among the 17 featured Canadian cities and 5th among all 111 featured cities.
Since 2014, higher than average reductions in office leasing costs and transportation costs for Quebec City were partially
offset by reductions in tax incentives (see also Montreal), but still helped Quebec City to both move ahead of
Charlottetown in the rankings and maintain its 3rd place ranking within Canada.
Within Canada, competitive costs for office leasing and electricity (both 4th in Canada) and for transportation and
industrial facility construction (both 5th) are the main factors that assist Quebec City’s favourable result.
Within the Northeast US/Central Canada region, Quebec City ranks 1st overall with the lowest costs among the 23 cities
compared in this region.
Quebec City is strongest in the digital services sector (e.g. digital entertainment, software design, etc.), ranking 1st among
the 17 featured Canadian cities. In comparison, Quebec City ranks 4th for R&D services (e.g. biotechnology, product
testing, etc.) and 5th for both manufacturing and corporate services.
Within the manufacturing sector, Quebec City ranks 3rd among the Canadian cities in the metal components and the
precision components industries.
Charlottetown, PE (2016: 4th / 17 cities; 2014: 2nd / 15)
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Charlottetown ranks 4th among the 17 featured Canadian cities and 6th among all 111 featured cities.
Since 2014, Charlottetown has particularly benefited from the decline in world oil prices, as many PEI firms depend on oil
due to the unavailability of piped natural gas. However, increases in suburban office lease rates and total labour costs also
impact Charlottetown’s results and dropped its ranking two places.
Even with the increases in labour costs and office lease costs that Charlottetown has experienced since 2014, it continues
to have the lowest costs among the 17 Canadian cities for both of these cost factors. However, Charlottetown also has
some of the highest costs in Canada, with the highest total utility costs and the highest combined effective corporate tax
rate among the 17 Canadian cities. Between these extremes, Charlottetown’s overall results are still very strong, ranking
in 4th place.
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Within the New England/Atlantic Canada region, Charlottetown ranks 3rd, with costs lower than two other Canadian cities
and all six US cities compared.
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Charlottetown’s strongest results are in the corporate services sector, where it ranks 1st among the Canadian cities for
both professional services and support services operations. In comparison, Charlottetown ranks 3rd for R&D services, 4th
for manufacturing and 10th for digital services.
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Within the manufacturing sector, Charlottetown ranks 3rd for medical devices manufacturing and 4th for several industries
including aircraft parts, metal components and pharmaceuticals.
Barrie, ON (2016: 5th / 17 cities; 2014: n/a)
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Barrie ranks 5th among the 17 featured Canadian cities and 7th among all 111 featured cities. This is the first year that
Barrie has been included in the study.
Within the Northeast US/Central Canada region, Barrie ranks 2nd with costs lower than four other Canadian cities and all
17 US cities compared.
Within Canada, Barrie offers the lowest costs among the 17 cities compared for both industrial leasing and industrial
facility construction. Barrie also enjoys the 2nd lowest property tax costs and 3rd lowest costs for transportation and office
leasing.
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firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
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Barrie’s strongest results are in the manufacturing sector, where it ranks 2nd in Canada, and the digital services sector
where it ranks 3rd. In comparison, Barrie ranks 7th in R&D services and 8th in corporate services.
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Within the manufacturing sector, Barrie ranks 1st in Canada for four of the 12 operations examined – advanced batteries,
food processing, metal components and plastic products.
Halifax, NS (2016: 6th / 17 cities; 2014: 5th / 15)
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Halifax ranks 6th among the 17 featured Canadian cities and 8th among all 111 featured cities.
Since 2014, cost factor changes in Halifax have been fairly typical, other than a large increase in cost of natural gas.
Halifax’s ranking is one place lower in 2016, because 5th-ranked Barrie (ON) represents a new addition to the study.
Within the New England/Atlantic Canada region, Halifax ranks 4th with costs lower than St. John’s (NL) and all six US
cities compared.
Within Canada, Halifax ranks 4th among the 17 cities for both salaries/wages and total labour costs. Halifax also ranks 6th
in Canada for industrial land costs.
Halifax’s strongest results are in the corporate services sector, where it ranks 4th in Canada, and the R&D services sector
where it ranks 5th. In comparison, Halifax ranks 8th in manufacturing and 11th in digital services.
Within the manufacturing sector, Halifax achieves its best result for pharmaceuticals, ranking 5th among the Canadian
cities, while it ranks 6th in Canada for medical devices and telecom equipment manufacturing.
Winnipeg, MB (2016: 7th / 17 cities; 2014: 7th / 15)
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Winnipeg ranks 7th among the 17 featured Canadian cities and 9th among all 111 featured cities.
Since 2014, Winnipeg has maintained its 7th place Canadian ranking.
Within the Midwest US/Canada West region, Winnipeg ranks 1st overall with the lowest costs among the 27 cities
compared (4 Canadian cities and 23 US cities).
Within Canada, Winnipeg has the 2nd lowest costs for industrial facility construction and the 4th lowest costs for industrial
facility leasing among the 17 cities compared. Winnipeg also enjoys the lowest electricity costs and the 2nd lowest
effective corporate income tax rate (assisted by Manitoba’s 20 per cent R&D tax credit).
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Winnipeg’s strongest results are for R&D, where it ranks 5th among the 17 featured Canadian cities. In comparison,
Winnipeg ranks 9th in both corporate services and manufacturing and 12th in digital services.
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In the manufacturing sector, Winnipeg ranks 4th among the 17 Canadian cities in each of the following industries –
electronics assembly, medical devices and specialty chemicals.
Sault Ste. Marie, ON (2016: 8th / 17 cities; 2014: n/a)
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Sault Ste. Marie ranks 8th among the 17 featured Canadian cities and 10th among all 111 featured cities.
Within the Northeast US/Central Canada region, Sault Ste. Marie ranks 3rd with costs lower than three other Canadian
cities and all 17 US cities compared.
Sault Ste. Marie ranks 1st in Canada for industrial land costs and among all 111 cities compared, Spartanburg (SC) in the
US, is the only city with industrial land costs lower than Sault Ste. Marie.
Within Canada, Sault Ste. Marie ranks 3rd for industrial facility construction costs and, combined with its low land costs,
ranks 1st for total investment required in land and construction to build a new factory. Moderately low office lease costs
(5th in Canada) also help Sault Ste. Marie’s total cost ranking.
Sault Ste. Marie sees its best results in the digital services sector, where it ranks 2nd in Canada. In comparison, Sault Ste.
Marie ranks 6th in corporate services, 8th in R&D services and 15th in manufacturing.
Within the manufacturing sector, Sault Ste. Marie achieves its best result for specialty chemicals, ranking 10th among the
Canadian cities, while it ranks 11th for electronics assembly, pharmaceuticals and telecom equipment.
© 2016 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.
Montreal, QC (2016: 9th / 17 cities; 2014: 8th / 15) see above
St. John’s, NL (2016: 10th / 17 cities; 2014: 13th / 15)
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St. John’s ranks 10th among the 17 featured Canadian cities and 12th among all 111 featured cities.
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Within the New England/Atlantic Canada region, St. John’s ranks 5th, with higher costs than the other Canadian cities in
this region but still with lower costs than in all six US cities compared.
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St. John’s experiences the highest transportation costs among all Canadian cities and it also has some of the highest
facility-related costs in the country. These costs ameliorate some of the benefit of St. John’s below-average labour costs.
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St. John’s now has the lowest effective corporate income tax rate among all 111 cities in this study, assisted by a large
provincial tax rate reduction for manufacturers, as well as R&D tax credits and the new digital media credit.
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St. John’s strongest results are in the digital services sectors (8 th in Canada). In comparison, St. John’s ranks 10th in
corporate services and 11th in both R&D services and manufacturing.
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Within the manufacturing sector, high transportation costs are a particular issue for St. John’s in industries producing highvolume, lower-value products. As a result, St. John’s has the highest costs in Canada for the metal components, plastic
products and advanced batteries and fuel cells operations examined. However, for low-volume, high-margin products,
Newfoundland and Labrador’s manufacturing and R&D-friendly tax provisions can result in very low total costs in
industries such as electronics, pharmaceuticals and specialty chemicals.
Since 2014, St. John’s has moved ahead of both Toronto and Saskatoon in the ranking of Canadian cities. Many firms in
St. John’s rely on oil due to the unavailability of piped natural gas, so the global drop in oil prices has positively impacted
business costs in the city. The introduction of a provincial tax credit for digital media production has also helped to improve
the results for St. John’s.
Kelowna, BC (2016: 11th / 17 cities; 2014: n/a)
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Kelowna ranks 11th among the 17 featured Canadian cities and 13th among all 111 featured cities.
Within the Pacific US/Canada region, Kelowna ranks 1st overall with the lowest costs among the 14 cities compared in
this region (2 Canadian cities and 12 US cities).
Among the 17 Canadian cities compared, Kelowna has the 2nd lowest electricity costs (behind Winnipeg), 2nd lowest
office leasing costs (behind Charlottetown) and 3rd lowest statutory plan costs for labour. However, Kelowna also has
above-average salary/wage costs and the highest factory leasing costs among the 17 cities.
Kelowna sees its best results in the corporate services sector, ranking 7th among the 17 Canadian cities. In comparison,
Kelowna ranks 9th in R&D services and 13th in both digital services and manufacturing.
Within the manufacturing sector, Kelowna achieves its best result in food processing, ranking 7th among the 17 Canadian
cities.
Toronto, ON (2016: 12th / 17 cities; 2014: 11th / 15) see above
Gatineau, QC (National Capital Region) (2016: 13th / 17 cities; 2014: n/a)
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Gatineau ranks 13th among the 17 featured Canadian cities and 15th among all 111 featured cities.
Gatineau represents the Quebec portion of the Ottawa/Gatineau National Capital Region. Consistent with all cities in this
study, the analysis reflects metro-area salary/wage levels but the specific operations are assumed to be located in
Gatineau and therefore subject to Quebec taxes.
Within the Northeast US/Central Canada region, Gatineau ranks 6th, with higher costs than the other Canadian cities in
this region but still with lower costs than in all 17 US cities compared in this region.
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firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
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Gatineau’s strongest results are in the digital services sector, ranking 7th among Canadian cities. In comparison, Gatineau
ranks 12th in both manufacturing and R&D services, and 14th in corporate services.
Within the manufacturing sector, Gatineau achieves its best result in food processing, ranking 6th among the Canadian
cities, and in advanced batteries and fuel cells, ranking 7th.
Total costs in Gatineau were found to be marginally higher than in Toronto. Costs for office leasing, industrial land,
electricity, property tax and income tax are lower than in Toronto. Salary/wage levels are only marginally lower than in
Toronto (likely influenced upwards by the presence of the federal government and the local tech cluster) while higher
loads for statutory/benefit costs in Quebec result in higher total labour costs than in Toronto. Costs for transportation,
natural gas and industrial facility construction are all higher in Gatineau than in Toronto.
Saskatoon, SK (2016: 14th / 17 cities; 2014: 9th / 15)
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Saskatoon ranks 14th among the 17 featured Canadian cities and 16th among all 111 featured cities.
Since 2014, costs in Saskatoon have increased notably and the city has been surpassed in the rankings by St. John’s.
Saskatoon has also fallen behind both Toronto and the Northern Ontario cities in the rankings (Sudbury in 2014, now
Sault Ste. Marie in 2016).
Over the two year period, Saskatoon saw a larger increase in salary/wage costs and employee benefit costs than any of
the other Canadian cities, and also saw a large increase in electricity costs after the provincial utility made changes to its
available rate tariffs. Decreases in office leasing costs in Saskatoon were not sufficient to offset these other increases.
In the Midwest US/Canada West region, Saskatoon ranks 2nd among 27 cities, finishing ahead of Edmonton, Calgary and
all 23 US cities examined in this region.
Within Canada, Saskatoon continues to offer the lowest property tax costs among the 17 featured cities, natural gas costs
are below average, and so too are statutory labour costs. However, high transportation costs (2nd highest in Canada) and
high costs in all factors related to facilities, including industrial leasing costs (3rd highest in Canada), add to total costs in
Saskatoon.
Saskatoon’s strongest results are in the R&D services sector, ranking 10th among Canadian cities, and in the corporate
services sector, ranking 11th. In comparison, Saskatoon ranks 14th in digital services and 16th in manufacturing.
In the R&D sector, Saskatoon ranks 7th among the Canadian cities for clinical trials management.
Within the manufacturing sector, Saskatoon achieves its best result in specialty chemicals, ranking 7th among the
Canadian cities, and in electronics assembly ranking 8th.
Vancouver, BC (2016: 15th / 17 cities; 2014: 15th / 15) see above
Edmonton, AB (2016: 16th / 17 cities; 2014: 14th / 15)
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Edmonton ranks 16th among the 17 featured Canadian cities and 19th among all 111 featured cities.
Edmonton (19th) is the first city in Canada to be out-ranked by an overseas city, Manchester (UK) came in at 18th among
the 111 cities.
Since 2014, Edmonton has fallen behind Vancouver in the rankings, despite recent decreases in downtown office lease
costs and utility costs. Growth in labour costs in Edmonton (compared to 2014) and an increase in the corporate income
tax rate contribute to higher business costs in Edmonton.
Wage/salary costs in Edmonton remain higher than in most Canadian cities (16th among the 17 Canadian cities), although
very low statutory plan costs help to moderate Edmonton’s total labour costs down into 13th place. Edmonton offers very
low natural gas costs (ranking 2nd), property tax costs (ranking 3rd) and its transportation costs are in-line with the
average for the 17 Canadian cities (ranking 9th). However, office leasing costs are still high (even after some decline) and
rank 15th among the 17 Canadian cities.
© 2016 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.
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While Edmonton is currently suffering through the impacts of lower oil prices, the effects of economic slowdowns take time
to trickle through the economy. Office rents tend to move relatively quickly with the economy and study data shows
downtown rents in Edmonton in late 2015 were down by 17 per cent compared to the same time period in 2013. Wage
levels take longer to adjust, as slower wage growth for retained workers and potentially lower wage rates for new hires
gradually blend to form a more competitive overall wage structure.
In the Midwest US/Canada West region, Edmonton ranks 3rd among 27 cities, finishing ahead of Calgary and all 23 US
cities examined in this region.
Edmonton’s strongest results are in the R&D services sector, ranking 13th among the 17 Canadian cities, and in the
manufacturing sector, ranking 14th. In comparison, Edmonton ranks 16th in both digital services and corporate services.
Within the R&D sector, Edmonton ranks 12th among the Canadian cities in electronic systems development and 13th in
biomedical R&D.
Within the manufacturing sector, Edmonton’s strongest results are in food processing, ranking 10th and in advanced
batteries and fuel cells, ranking 11th.
Calgary, AB (2016: 17th / 17 cities; 2014: n/a)
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Calgary ranks 17th and is the most expensive among the 17 Canadian cities featured in this study. Despite this domestic
ranking, it is important to note that Calgary still ranks well from an international perspective. Calgary ranks 20th among all
111 featured cities, with only three non-Canadian cities topping Calgary in the rankings – Mexico City, Monterrey (Mexico)
and Manchester (UK).
Within the Midwest US/Canada West region, Calgary ranks 4th, with higher costs than the other Canadian cities in this
region but still with lower costs than in all 23 US cities compared in this region.
Within Canada, Calgary has the lowest natural gas costs among the 17 Canadian cities compared. Industrial building
construction costs are also relatively competitive (ranking 4th) and transportation costs are below average (ranking 7th).
However, Calgary has the highest salary/wage costs in the country, although these are marginally offset by low statutory
labour costs. Costs to purchase industrial land in Calgary are the second highest in the country (only Vancouver is higher).
Calgary sees better results in the R&D sector, ranking 16th among the 17 Canadian cities. In comparison, Calgary ranks
17th (most expensive) if manufacturing, digital services and corporate services.
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Within the manufacturing sector, Calgary’s highest rankings are in food processing, ranking 9th, and in plastic products,
ranking 12th.
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For the corporate services sector, when comparing cities that serve the oil and gas industry, Calgary’s ranking of 21st
among 111 featured cities places it ahead of Melbourne (23rd), Fargo (35th), New Orleans (66th), Dallas-Ft. Worth (84th)
and Houston (95th)
Contact us
Tonique Bedeau
National Manager, Communications
T: 416.777.3241
E: [email protected]
Julie Bellissimo
National Manager, Communications
T: 416.777.3988
E: [email protected]
© 2016 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.