Business Advantages
As the lowest-cost investment location in North America for the plastics sector, Canada offers several key business advantages to plastic product manufacturers. Energy and labour costs less here, and so does R&D.; These factors help make Canadian-based companies winners in a North American plastics market worth US$175 billion annually.
-
Least expensive investment location in North America for plastics manufacturing, and the second lowest globally. Canada has a 6.4 per cent cost advantage over the United States. Canada’s ranking in this sector has climbed to second place from fourth since 2002. (source: KPMG’s 2004 world business cost study)
-
Significant cost advantages compared to European countries . Canada’s advantage ranges from 3.8 percentage points over the United Kingdom to 20.8 percentage points over Germany.
-
Machinery and moulds used to make plastic products are a key determinant of a company’s productivity and international competitiveness. Canada has a world-class cluster of companies producing plastics processing machinery and moulds. Canada is also the world’s second-largest exporter of moulds and the seventh-largest exporter of machinery and auxiliary equipment. (Source: Trademap)
-
R&D;: Canada also offers the most generous research and development tax treatment among G-7 countries, and lower corporate taxes and payroll benefit costs than the United States. (Source: KPMG study 2004)
-
Significant new capacity investments in synthetic resins with the future development of Arctic and offshore gas in eastern Canada.
|
International Cost Comparison
Plastics Industry
|
|
Country
|
Cost Index
( U.S. = 100.0)
|
|
Australia
|
91.3
|
|
Canada
|
93.6
|
|
United Kingdom
|
97.4
|
|
France
|
97.9
|
|
Luxembourg
|
99.6
|
|
United States
|
100.0
|
|
Italy
|
101.4
|
|
Netherlands
|
101.9
|
|
Germany
|
114.4
|
|
Iceland
|
120.1
|
|
Japan
|
129.1
|
|
Source : KPMG Competitive Alternatives, 2004
|