Track the Tiger - Alberta
One of North America's leading financial institutions, TD Financial Group, has affectionately dubbed Alberta the "western tiger." The province is recognized internationally for its globally competitive tax environment, efficient and modern infrastructure, highly skilled work force, and aggressive investment attitude.
"Albertans have seized the opportunity to make better lives for themselves and their families since the early days of this land," explains Clint Dunford, minister of economic development. "Alberta's economy is strong today and promises so much for the future, in large part because of our history of rising to a challenge."
Global Insight, a national economic think tank, recently released a study finding Albertans' living standards are the highest in Canada - about 19 percent higher than the Canadian average. This explains why more people move to Alberta than to any other province in Canada, and why they stay in Alberta to make their careers, raise their families, and often to start their own businesses. And, adding to the allure of the fourth-largest province in Canada are Alberta's landscapes, which include mountain ranges, large expanses of boreal forest, and phenomenal recreational venues.
A Safe and Abundant Energy Supply
In 2005, Alberta is celebrating its first hundred years as a province. This centennial is a time to build on successes, establish new areas for future growth, and, of course, to remember significant points in the province's history.
The discovery of oil was pivotal in Alberta's history. Until 1947, Alberta was primarily an agriculturally based economy. For the first half of the twentieth century, the rich soil provided for the population in a mostly regional marketplace. With the landmark discovery of oil in a small community just outside Alberta's capital city of Edmonton, the region turned into a hub of oil and gas activity. In the years that would follow, the town and eventually the province would grow and prosper because people seized the opportunities that the discovery of energy created.
Moreover, Alberta's vast supply of energy creates a wonderful chance for other countries including the United States, India, and China to meet their own domestic energy needs. There is unlimited potential for those interested in reaping the rewards of such riches, says Dunford. "Alberta has the means, expertise, and dedication required to help solve other countries' domestic energy concerns," he adds.
"We are seeing record amounts of investment into the energy industry from around the world," explains Dunford. This is no surprise, given that Alberta has the world's second-largest proven oil reserves. The province's oil sands are located in northeastern Alberta. These precious oil sands contain an estimated 1.7 to 2.5 trillion barrels of oil trapped in a complex mixture of sand, water, and clay.
In fact, after Saudi Arabia, Canada ranks second-largest in terms of global proven crude oil reserves - about 15 percent of world reserves - and the majority of these proven reserves are found in Alberta's oil sands - over 174 billion barrels. Most of these reserves have yet to be tapped.
Alberta's vast supply of energy resources goes beyond the oil sands. Alberta also accounts for about 80 percent of the natural gas produced in Canada and approximately one half of the coal mined nationally each year.
Alberta's extensive energy infrastructure is made up of more than 300,000 kilometers of pipeline. It is long enough to circle the earth more than eight times. This network took about 60 years to build.
Trade and Investment Opportunities
Value-added industries in Alberta have been established and fostered by the province's immense energy sector and growing demand from countries around the world. Manufacturing and new technologies - such as wireless communications, global positioning systems, software, and new media - have all been built because of the critical mass of expertise that supports Alberta's large energy sector.
Additionally, petroleum from Alberta's energy sector yields many lucrative, value-added products. There are, in fact, about 3,000 products made from crude oil including gasoline, ink, crayons, bubble gum, dishwashing liquids, deodorant, eyeglasses, records, tires, ammonia, and heart valves.
An Ideal Location and High Investment Rates
No matter what goods or services a particular company provides, proximity to trade routes is essential to secure maximum profit. Alberta is ideally located for businesses that need open access to the lucrative North American free-trade market. The Edmonton-Calgary corridor (Alberta's two largest cities) has proven to be particularly valuable for both domestic and foreign investors.
Alberta is an outstanding investment destination that consistently records the highest per capita investment rates in Canada, largely driven by massive investment in the oil sands. Global investment experts predict energy sector investment will remain strong in the coming years. However, investment in information and communications technology, utilities, tourism, and business services is also expected to grow.
Increased investment in a wide range of value-added industries is expected to continue to broaden the provincial economy and keep it strong in the future. Globally, Alberta exports are strong, particularly in gas and gas liquids, crude petroleum, and petrochemicals. These goods are Alberta's three largest exports, accounting for more than two thirds of the province's export trade.
Today, the province's economy is increasingly global, focused on adding value to the goods and services it exports. Alberta is taking its place on the global economic stage.
British Columbia's $156 Billion Economy "Firing On All Cylinders"
This could well prove to be a glorious decade for British Columbia," says RBC Financial Group's Chief Economist Craig Wright. All indicators point to a continuing robust economic performance:
•The province's real gross domestic product grew by 3.3 percent in 2004, outpacing growth in the G-7 countries, and in Canada as a whole, for the third consecutive year;
•The capital cost of major projects currently under construction is estimated at $25 billion, with a further $40 billion worth of investment proposed;
• New business incorporations reached almost 28,000 in 2004, a 10 percent increase over 2003;
• International exports rose by 11 percent in 2004 to $31.6 billion. Exports to the Asia-Pacific region jumped by 17 percent to more than $8 billion;
• Employment grew by 2.3 percent in 2004 to 2.06 million, and the labor force continues to grow as result of increasing participation rates and inflows of workers from rest of Canada and the world - almost 40,000 people per year are moving to British Columbia.
A Resourceful Economy
British Columbia's major resource industries - forestry, mining, and oil and gas - are profitable and growing. Wood products companies are investing hundreds of millions of dollars in the province, creating the world's largest and most productive manufacturing facilities, such as Canfor's "super sawmill" in Houston, B.C. Mineral exploration is surging, and three new mines opened in 2004 with more on the way. Natural gas and oil exploration and production are continuing at record levels.
British Columbia's tourism industry, currently serving more than 22 million visitors a year, is heading to new peaks. A $565 million expansion is under way to triple the Vancouver Convention and Exhibition Centre by 2008. Fifty resort development projects, representing billions of dollars in new investment, are under way or planned throughout the province.
British Columbia is one of North America's leading gateways to the Asia-Pacific region, and experts are saying that China could soon become the province's biggest overseas market. Chinese visitors to British Columbia are predicted to increase from about 80,000 per year to 300,000 annually within a few years.
British Columbia is also a low-risk, competitive location for serving this burgeoning market. Soprema Inc., a manufacturer of roofing materials, recently transferred production from France to its British Columbia operation to meet unprecedented demand in China. Nisshin Flour Milling of Japan recently celebrated the official opening of its $25 million flour mill in British Columbia and has announced plans to build a third production facility in the province.
British Columbia is also gaining international recognition for its emerging technology and creative clusters, such as electronic games and computer animation, wireless technologies, software development, and alternative energy. Electronic Arts, Vivendi, Buena Vista Games (Walt Disney), Nokia, IBM, Business Objects, Honeywell, Alcatel, Intel, and Ballard have product development centers in the province; and local biotechnology companies are partnering with top industry players such as Novartis Ophthalmics, Aventis Pharma, Roche, and Boston Scientific.
Competitive Business Climate
British Columbia's record of success is underpinned by a competitive business climate, offering one of the lowest overall business tax burdens in North America, as well as a business-friendly regulatory environment - 37 percent of all provincial regulations have been eliminated since 2001. A recent survey of North American venture capitalists ranked British Columbia number four as a place to do business.
Substantial public investment in infrastructure and services are supporting expansion of British Columbia's regional economies. The 2005-06 provincial budget has committed $100 million in additional funding for health research, $6 billion over three years for advanced education and training, and $3 billion for transportation.
Investment in primary and secondary education ensures that students in British Columbia receive a first-rate public education in preparation for advanced training or employment. In math, science, reading, and problem-solving tests administered by the Organization for Economic Cooperation and Development, British Columbia high school students rank slightly ahead of their Japanese peers, and well ahead of students in the United States.
In 2010 British Columbia will be in the world spotlight as host of Olympic and Paralympic Winter Games. Hosting the games is expected to generate $10 billion in economic activity and offers an unparalleled opportunity for British Columbia-based companies and their partners to gain international exposure.
Manitoba Means Business
Manitoba has one of Canada's most diversified economies, helping to make this province the most stable economic performer in the country. It is the only province in Canada to see 14 consecutive years of private capital investment growth, with 2004 growth at a robust level of 8.1 percent. Manitoba's manufacturing shipments increased 10.4 percent in 2004, outpacing the Canadian average for the second consecutive year, while the province's foreign exports grew by 7.5 percent.
Key Clusters Manitoba's diverse economic base is strong in many areas including:
Manufacturing: Aerospace components, buses, furniture, farm equipment, windows, clothing, and outerwear - Manitoba makes it all. High productivity and access to a skilled and reliable work force help Manitoba's manufacturing exports to grow and encourage export-driven expansion. Some of the more well-known firms enjoying success in Manitoba's thriving business environment are New Flyer Industries, Biovail Corp., Vansco Electronics, and the Cangene Corp.
Financial Services: Canada's largest mutual fund company (Investors Group) and largest insurance company (Great-West Lifeco Inc.) are the cornerstones of Manitoba's financial services sector.
Agriculture/Food Processing: Manitoba's rich soil and clear skies - plus the energy and innovation of its agricultural community - allow a province with 4 percent of Canada's people to produce 10 percent of the nation's agricultural products. Significant food processors located here include Maple Leaf Foods, McCain's Midwest Food Products, and JR Simplot.
Biotechnology/Life Sciences: Manitoba is home to Canada's fastest-growing biotechnology sector. Growing clusters of research-based private-sector firms and public research institutions give Manitoba an expanding international profile in agriculture and health biotechnology, pharmaceuticals, and medical and diagnostic services. Some of the province's more prominent success stories include the Canadian Science Centre for Human and Animal Health, which is the home of Canada's new Public Health Agency; Smartpark at the University of Manitoba; the St. Boniface General Hospital Research Centre; and the National Research Council's Institute of Biodiagnostics.
Information/Communications: Manitoba's ICT industry has internationally competitive expertise and products. The province hosts a wide array of ICT companies, including two large Manitoba-based multinationals - Manitoba Telecom Services and CanWest Global. This core strength is bolstered by the local operations of several ICT multinationals including IBM, whose Manitoba operation employs more than 500 people, and EDS, which employs over 300 Manitobans.
Hydroelectricity: Powered by Manitoba Hydro's reliable, renewable, and low-cost electricity, Manitoba has a definite energy advantage. The province has abundant hydroelectric capacity, the lowest published rates in North America, and enjoys high system reliability and superior power quality. A Hydro Quebec survey revealed that Manitoba is the most competitive in terms of published electrical rates for large industrial customers.
Strategic Tax Incentives
Manitoba has implemented numerous tax initiatives that benefit businesses that choose to locate here. For example:
•The corporate income tax rate has been reduced from 17 percent in 1999 to 14.5 percent in 2006, and will be reduced to 14 percent in 2007.
•The small business income tax rate has been reduced from 8 percent in 1999 to 4.5 percent in 2006, and will be reduced to 4 percent in 2007.
•The 10 percent Manufacturing Investment Tax Credit was recently broadened to apply to purchases of both new and used buildings, and machinery and equipment; and the first 2 percent has now been made refundable.
•The Manitoba R&D Tax Credit has been increased to 20 percent of eligible expenses, making it one of the most attractive in Canada.
Manitobans are educated and highly skilled, even by the standard of a country that has the highest postsecondary education rate in the world. Four universities - including western Canada's oldest - and three community colleges, plus a variety of vocational and technical learning centers, ensure that Manitoba's work force is both trained and motivated. Combined with remarkably low employee turnover rates, this commitment to education and training gives Manitoba's businesses a tremendous edge over the competition.
Boeing Canada Technology, Motorcoach Industries, Biovail Corp., Dow Chemicals, Maple Leaf Foods, Standard Aero Ltd., Monsanto, Allstream, Pillsbury, 3M Canada, and Magellan (Bristol) Aerospace are just a few of the multinational corporations that have chosen to establish or expand their operations in Manitoba. Their reason for doing so is simple - Manitoba's combination of low operating costs, skilled labor, and central location is simply too attractive to pass up.
Saskatchewan Gateway to Opportunity
today's knowledge-based global economy, every metropolis is a gateway
to the world. Everyone has a vision to sell. Locations are served up to
mobile professionals and entrepreneurs like a Sunday buffet. The
competitive edge has expanded to include lifestyle factors as well.
offers opportunities that attract people and companies from all over
the world - opportunities like no other jurisdiction. How else does a
land-locked prairie oasis produce the world's leading expert on the
remains of the shipwrecked Titanic? Research opportunities are a
specialty, that's how.
University of Regina (U of R) is a global leader in energy and
environmental research, and offers a world-class cluster of
climate-change expertise. With neighbors in the Regina Research Park
like the Petroleum Technology Research Centre and numerous industry
partners, the U of R is at the forefront of developing technologies to
capture and store carbon dioxide. The outcome is enhanced oil recovery,
reduced greenhouse gas emissions, and unprecedented economic and
In Saskatoon, the province's largest
city, cab drivers don't blink an eye at delivering international
scientists from the airport to their new homes near the Canadian Light
Source synchrotron. Residents no longer question why someone from
California relocates to the "land of living skies." Saskatchewan is a
gateway to opportunity and a getaway in terms of lifestyle.
Canadian Light Source, at the University of Saskatchewan, is Canada's
largest science project in a generation. The colossal research
structure is used to examine life's smallest building blocks. It is a
crucial tool for keeping Canada competitive in cutting-edge areas like
pharmaceuticals, biotechnology, advanced materials, telecommunications,
and electronics. The synchrotron is a career-maker for researchers and
an investment attraction magnet for the province.
fact that the Conference Board of Canada recently ranked Saskatoon as
one of Canada's leading cities in terms of growth speaks volumes about
available opportunities. The Conference Board also placed Saskatoon at
the top in terms of economic diversity. Saskatoon's growing economy is
a reflection of the entire province.
In 2004, Saskatchewan's
economy recorded the third best real gross domestic product (GDP)
growth rate in Canada. Economic forecasters are expecting a further
expansion for Saskatchewan's economy. Manufacturing shipments, potash
production and sales, uranium share prices, mineral exploration
expenditures, oil and natural gas production, international exports,
and retail sales are all up.
This prairie land has a plethora of
super-sized resources. Saskatchewan is the world's largest producer of
potash and uranium. Its oil and gas industry is the second largest in
Canada. So far, Saskatchewan's oil industry has accessed only a mere 15
percent of the potential trillion dollars worth of oil waiting beneath
the surface. Diamond-bearing kimberlite fields that are the largest in
the world are being explored and may lead to an entirely new industry
for the province.
While the economy is bullish, the relationship between public service and private enterprise certainly isn't.
role as government is to help Saskatchewan businesses sustain that
marketplace momentum by developing policies and making infrastructure
investments that ensure a continued climate for growth," Saskatchewan
Industry and Resources Minister Eric Cline says. "We are at our best
when public and private sectors are on the same path toward growth and
Saskatchewan has traditionally been a
resource-based province. Moving into a knowledge-based economy has
meant supporting new science and technology for the benefit of old
For example, mining in Saskatchewan is one of the
most technologically advanced industries in the world. New science has
made Saskatchewan home to 30 percent of Canada's agro-biotech industry.
With 44 percent of Canada's cultivated farmland, the province supplies
crops for pharmaceuticals, detergents, fuel, paint, lubricants, paper,
textiles, and, naturally, food.
Less Is More
course, big isn't always better; take the cost of doing business, for
example. According to an international KPMG study, the cost of
conducting business in Saskatchewan's four major cities is among the
lowest in cities across North America, Europe, and Japan.
cost of living is another example. Housing costs are lower, and owning
a home is affordable. The healthcare system is second to none, and
there are no healthcare premiums. The provincial sales tax of 7 percent
is the lowest of any province that charges a sales tax. It costs less
to get to and from work because the maximum commute time in any of
Saskatchewan's cities is about 20 minutes.
far more than tangible economic opportunities and benefits.
Saskatchewan offers lifestyle. The quality of life is high, but the
cost is not. That makes Saskatchewan a great place to live and raise a
family, and a great place to locate or invest in a business.