Canada '96

A Special Feature of Site Selection

by David Napier CANADA Positioned for Profit

Call centers were the brightest spot on the nation's economic landscape, as almost every province sought larger slices of the growing telecommunications pie. Activity on the information highway heated up and exports continued apace. Amidst all this change was one constant: a superb quality of life.

The biggest news of the past year saw premiers coast-to-coast focusing on fiscal reforms. In Ontario, for instance, deficit battling has been the battle cry of the new Progressive Conservative government headed by Premier Mike Harris, who initiated the "Common Sense Revolution" in which spending reforms play a key role.

Harris' tough stand hasn't stopped business leaders in Canada's most populous province from adopting a healthy outlook on the future. In fact, a recent survey of 670 business owners and senior executives by Dun & Bradstreet indicated that Ontario respondents were the most positive about Canada's economic outlook, a fact D&B attributes to the "pro-business stance" of the new government.

Meanwhile, in Quebec, the economic fortunes of Canada's only French province are still with the rest of Canada after a victory -- albeit paper-thin -- by the pro-unity forces in a fall referendum. While the issue of separation no doubt will be raised again in the future, the geographical certainty of Quebec's large markets is a constant. Whoever rules Quebec is master of 7.3 million consumers.

Canada's four western provinces fared better than some of the country's other six provinces and two territories in the past year. Alberta, Saskatchewan, Manitoba and British Columbia are emerging from the latest recession with their natural resources intact and their sights set on prosperity. Vancouver, British Columbia's biggest city -- and brightest economic star -- enjoyed stable real estate and saw its high-tech sector grow. And the National Basketball Association's expansion franchise, the Grizzlies, came out to play.

Toronto, ranked as one of the top 10 cities in the world for business, fairly shimmers at dusk. (Photo courtesy of Ontario Ministry of Economic Development, Trade and Tourism)

On the East Coast, there was almost as much activity. "There's a sense of excitement in the province, and I don't think that's an exaggeration," says Linda Laffin of the Nova Scotia Economic Renewal Agency. "When Americans think of the East Coast, the traditional images pop to mind," she says, alluding to fishing boats and seagulls, "but when they come here they see there is much more to it." This includes a burgeoning high-tech industry, advanced research and development -- especially in the areas of multimedia and health care -- and numerous call centers.

On the international stage, Canada as a whole continues to impress for many of the same reasons individual provinces have been popular -- namely, a cooperative spirit, a superior quality of life, and low corporate taxes and labor costs. In the latter category, the hourly labor costs in manufacturing were 30 percent lower than the Great Lakes states (after adding in health care costs and other payroll taxes and contributions.) Real wages range from US$15.90 in Ontario to $17.07 in New York to $23.02 in Michigan.

Manitoba, the geographic heart and soul of Canada known for its fields of golden wheat, is evolving into a diverse economy. (Photo courtesy of Travel Manitoba)

The favorable figures don't stop there. The World Bank estimates that Canadians enjoy second highest per capita wealth (following Australia) due to vast natural resources and significant investments in training and education. A well-honed infrastructure leads business leaders polled for the World Competitiveness Report, 1995, to rank Canada third in terms of its telephone lines, computers and computer power per capita. As for the quality of life enjoyed by Canucks: Canada ranked first among 160 countries in the United Nation's Human Development Index, based on longevity, education and living standards.

So, with the world's economy rebounding, companies may want to consider setting up or expanding operations in Canada. Now more than ever, the work force is eager, government is pro-business and opportunities are abundant.

David Napier is a freelance writer and editor based in Toronto.

Read more about the four regions of Canada
Atlantic Quebec Ontario Western Provinces

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