MEDICAL DEVICES. CALIBRATING HEALTHY RETURNS.
Canada finished first in the G7 with a 4.1 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 medical devices production costs in nine countries and 128 cities in North America, Europe and Asia-Pacific. The Canadian medical devices sector consists of over 500 firms generating sales of approximately Cdn$3 billion in 2003, with exports representing about 60 percent of the Canadian industry total sales.
KPMG’s medical device model reviewed a manufacturer of mechanical medical devices, such as prosthetics.
THE BOTTOM LINE:
- Canada ranks No. 1 in the G7 as the most cost-competitive investment location in the medical devices sector.
- Canada offers the lowest labour and benefit costs in the G7 as well as the lowest interest and depreciation costs.
- Seven Canadian cities rank among the top 10 low-cost G7 locations, with Moncton No. 1, followed by Sherbrooke, Charlottetown, St. John’s and Halifax.
LOW-COST HOT SPOTS
- Moncton
- Sherbrooke
- Charlottetown
- St. John’s
- Halifax
- Edmonton
- Saskatoon