A new report indicates that Kelowna continues to be one of the most competitive mature markets for business in Canada.
KPMG in Canada released its Competitive Alternatives 2016 report on Wed. and among the 111 cities featured in the study, Fredericton, NB takes the top spot. All Canadian cities included in the study were found to be more cost competitive than any of the US cities featured. Among the 34 major 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, ranking ahead of all 31 large US cities.
Photo Credit: KPMG
Kelowna ranked 11th, ahead of Toronto, Vancouver, Calgary, and Montreal when the study was broken down by Canadian cities. Fredericton, ranks as the most competitive in Canada for the first time, having overtaken 2014's leader, Moncton, NB. This marks the first time that Fredericton has topped the list of Canadian cities, with low increases in labour costs and reductions in lease costs (especially for industrial) assisting Fredericton's ranking.
The Pacific region of the US and Canada represents the most costly region in this study. Business costs for the two Canadian cities in this region are above the Canadian average, while average costs for the 12 U.S. cities compared exceed the U.S. base. Only eight cities in the study have business costs above the U.S. baseline, with five of them being in the Pacific region.
Photo Credit: KPMGPacific US/Canada region rankings
The current high value of the US dollar provides a strong cost advantage for the Canadian cities compared, Kelowna and Vancouver, relative to their US regional counterparts. These cities enjoy a business cost advantage of more than 8.0 percentage points over Boise, Spokane and Portland, the lowest cost US cities in the region.
Photo Credit: KPMG
The report looked at the high value of the U.S. dollar and how it has helped Canada maintain its competitiveness and status in the international rankings. This is despite higher local business costs such as lease costs for downtown and suburban office space and reductions in federal tax credits.
Photo Credit: KPMG
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. Mexico landed in top spot, followed by Canada, Netherlands, and Italy for top countries.
"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.
Photo Credit: KPMG
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.
