CHEMICALS. PERFECT INDUSTRY CHEMISTRY.
Canada finished first in the G7 with a 4.5 percentage point cost advantage over the U.S. – making a huge difference to your bottom line. These are findings from the Competitive Alternatives: KPMG’s Guide to International Business Costs, 2006 edition which provides a comprehensive analysis of chemicals production costs in nine countries and 128 cities in North America, Europe and Asia-Pacific. In Canada, the chemicals and chemical products sector encompasses over 2,000 companies with shipments of an estimated Cdn$50 billion and global exports of over Cdn$27 billion in 2005.
KPMG’s chemicals model examined smaller producers of speciality chemicals in limited volumes for niche markets, such as production of industrial and consumer cleaning products, solvents, adhesives and fragrances.
THE BOTTOM LINE:
- Canada ranks No.1 in the G7 as the most cost-competitive investment location in the chemicals industry sector.
- Canada offers the lowest labour and benefit costs in the G7 and one of the lowest effective corporate income tax rates in this sector.
- Furthermore, all top 10 positions are occupied by Canadian cities, which lead G7 locations as the most cost-competitive places for chemicals manufacturing, with Moncton leading the way.
LOW-COST HOT SPOTS
1. Moncton
2. Charlottetown
3. St. John’s
4. Sherbrooke
5. Saskatoon
6. Halifax
7. Edmonton
8. Winnipeg
9. Quebec City
10. Chilliwack
