by Mark Paddock WESTERN PROVINCES C a n a d a

With its rolling fields, rushing rivers and proud history as a trading center, the province of Manitoba (pop. 1.1 million) is the geographic heart and soul of Canada. To be exact, the province lies between Ontario and Saskatchewan, and borders on the U.S. Midwest. From this prairie perch, Manitoba, with its diverse economy, created 10,000 new jobs in 1995, growth that government and business anticipate will continue.

One positive indicator for this is the rise of Winnport Logistics Ltd., a consortium of businesses located in Winnipeg (pop. 680,000) that is promoting the city as an international freight shipping center. The group, which has received a preliminary grant of US$3.6 million, plans to build a facility at the city airport to handle truck, rail and air cargo, as well as activities such as warehousing and product assembly. If Winnport leaders achieve their goals, 6,000 jobs could be created in the province and 4,300 more could appear across Canada. It's an appropriate initiative for an economy that is export-based; in 1994, provincial exports to the USA totaled $2.4 billion.

Winnipeg's Red River beckons as a trading post-cum-tourist attraction. Canada's lowest-cost big city, Winnipeg is known as an international freight shipping center. (Photo courtesy of Travel Manitoba)

"There are many advantages for this type of operation to succeed and grow here," says Winnipeg Mayor Susan Thompson, who cites "a 24-hour airport, our strategic location in the center of North America, lower land costs and operating costs and a talented, hard-working work force." Not to mention the fact that the province houses the country's second-largest rail center and 11 of the largest inter-provincial trucking companies.

Winnipeg, the lowest-cost, big city in Canada, is also attractive for light manufacturers, according to site selection specialists at The Boyd Co. of New Jersey. In fact, the province has the second-lowest average manufacturing wage in the country, and utility and land costs are low.

Manitoba's extensive fiber-optic cable network has also made it a popular place to build telephone call centers, says Stuart Duncan, secretary of the provincial Economic Development Board. He points to the 14 call centers already operating in the province, employing more than 3,500 people. Among the companies that route their calls through Winnipeg are transportation giants CN, CP Rail as well as Canada Post Corp.

Winnipeg also boasts the country's third-largest aerospace industry; and, in Churchill, to the north, a commercial space launch site called Spaceport Canada will open in 1997.

All this activity leads Duncan to conclude that the province's economy is "coming off a strong year in '95 because it's so diversified. We don't tend to be boom or bust -- we're stable." The provincial government has also done its part for the local economy by refusing to increase major taxes for eight years, and, in 1995, balancing the budget for the first time in more than two decades.

As a province built around the frontier spirit, Manitoba also lays claim to being a place where immigrants feel comfortable. In addition, Winnipeg is home to its own ballet company and symphony orchestra. Companies that have relocated or expanded operations here enjoy the lowest electricity rates in Canada, low housing prices and a low violent crime rate.

Whitehall Provincial Park: The lure of the great outdoors is one of Manitoba's greatest assets. (Photo courtesy of Travel Manitoba)

Like most of Western Canada, Saskatchewan (pop. 1 million) has an export-oriented economy based on cereal crops, fertilizer and natural gas and oil. In the past, the province's claim to fame was its wheat crop, but these days Saskatchewan is known equally well as the country's leading center for agricultural biotechnology research.

This accomplishment is partly the result of government's Agriculture 2000 plan which started in 1993 and its Partnership for Renewal, a 10-year economic strategy that is now four years old. Together, the programs seek to diversify the agricultural industry through bio-technological methods.

In Saskatoon (pop. 190,000), the number of companies working in this field jumped by a whopping 300 percent between 1992 to 1994.

"When you're talking about plant biotechnology, Saskatoon is the place in North America," says Steve Meister, communication manager for AgrEvo Canada Inc., one of the largest companies in this field. "There is no other city that could equal the expertise that's been assembled there."

AgrEvo, a German-owned company, has its North American headquarters in Regina (pop. 180,000) and a research facility in Saskatoon. It is expanding the latter with help from Ag-West Biotech, a non-profit government agency. While Meister says the expansion will create up to 30 jobs directly, Premier Roy Romanow expects "spin-off benefits in the millions of dollars for the local and provincial economies."

High-technology expansion is happening in other areas as well. Pelorus Navigation Systems Inc. of Alberta, which makes aircraft navigation systems, decided to build a new plant in Saskatoon last year. Company president Ed Fitzhenry says he likes the fact that the city has metal fabricators who make high-quality products. He's also fond of the province's low rent and labor rates, its highly educated workers with their solid work ethic, and its small population.

In 1995, the provincial government made businesses feel even more welcome when it introduced a non-refundable Investment Tax Credit of 9 percent for plant and equipment acquisitions for first-time processing or manufacturing activities. Also, a tax break of up to 7 percent is available to processors and manufacturers on the existing corporate income tax rate of 17 percent, and businesses do not have to face provincial payroll taxes or health-care premiums.

These financial perks combine nicely with Saskatchewan's low cost of living: an average house price in Regina is $55,500, according to the real estate firm Brookfield LePage. The province also boasts two national parks, and numerous places to hunt and fish, a Canadian Football League franchise (in Regina), and more museums per capita than any other province.

Located between British Columbia and Saskatchewan, the province of Alberta (pop. 2.5 million) is arguably one of the best sites to set up a business in Canada. Why? Simply because it has no payroll or general capital taxes, no provincial sales tax and a combined federal/provincial personal income tax rate that is the lowest in the country. Also, Alberta has eliminated its provincial deficit.

As a result, Alberta's strong economy -- based on resource-based industries such as forestry, oil and gas, agriculture and tourism -- gained 36,000 new jobs in 1995. Meanwhile, Alberta supplies 24 percent of Canada's agricultural production and is well-known for its cattle ranches.

But it's the oil and gas industry that is central to the economy; it directly employs 75,000 people and accounts for one-fifth of the province's GDP. Over the next 25 years, oil production is expected to triple, and government has created new laws to help companies beginning oil operations.

Edmonton (pop. 897,000) is the oil industry's supply and service center; its National Hockey League franchise, the Oilers, was named to honor this fact. The capital of Alberta, Edmonton, is situated right in the middle of Canada's four western provinces. This strategic location has made the dynamic city Western Canada's nucleus for transportation of all kinds -- ranging from railway and highways to air.

Edmonton offers an excellent business climate for investors: Its costs are stable and predictable, and the city is proud of its balanced budget. In addition, it boasts one of the lowest costs of living of any major city in Canada, one of the most educated and reliable labor forces in the country and is an excellent place to raise capital (the Canadian Western Bank is headquartered here).

This enviable reputation as a well-run city, with low taxes and a healthy business climate has fueled Edmonton's tremendous growth in the manufacturing sector over the past few years (9-plus percent in 1994). Recently, the city has been caught up in a "high-tech fever," and at the core of this new impetus lies the University of Alberta, one of the largest and most respected universities in Canada (ranked fifth, nationally, in sponsored research).

In recent months, an obvious unity of purpose and synergy has developed between the university and the city's business community. New patents and commercial spin-offs are becoming commonplace as a result of this new-found relationship.

Calgary (pop. 920,000), meanwhile, is Canada's second-largest head-office city, and getting bigger. For example, CP Rail recently decided to move its head office to Calgary from Montreal, bringing 730 positions.

"Calgary is centrally located in the time zones and the office space [300,000 square feet] was available," explains Barry Scott, CP senior manager. He also notes that it is a modern city that has "all the things you're looking for, like a good transportation infrastructure."

Alberta's high-technology industry also has enjoyed growth lately, thanks in part to several research parks that focus on medical biotechnology, electronics and engineering. Other initiatives include the Western Economic Partnership, a joint provincial-federal initiative to develop communications technology.

"These are the kind of things needed to make a high-technology company tick in a globally competitive world," says Ed Fitzhenry, president of Calgary-based Pelorus Navigation Systems Inc. In turn, this helps diversify the economy, moving it away from a resource-based structure. "We don't have to exploit non-renewable resources in order to be successful," he adds.

Alberta has a fertile cultural life, as well. Every summer, the province celebrates its ethnic diversity with two Heritage Days. Edmonton has at least six major, annual festivals; Calgary has a winter festival and the Calgary Stampede, the biggest rodeo in the world. In terms of pro sports, both cities are home to Canadian Football League and National Hockey League teams. For amateur athletes, the northern countryside is renowned for sport fishing, while the northern reaches of the Rocky Mountain range provide a home for three national parks and world-class skiing.

Located on Canada's Pacific coast, British Columbia's population of 3.5 million enjoy the warmest climate in the country and a quality of life that is hard to match. Add to this a steadily growing economy, and it's no wonder that B.C. -- a.k.a. "Lotus Land" -- is the most attractive spot for "in-migrants" and immigrants alike.

Grouse Mountain provides a panoramic view of Vancouver from the gondola ride in the summer and ski trails in the winter. (Photo courtesy of Tourism Vancouver)

Notwithstanding a climate that often allows residents to ski in the morning and golf in the afternoon, B.C. traditionally has been driven by its export industries. One-quarter of the province's GDP is derived from exports, many from forestry and mining. However, in 1995, service-producing industries such as trade gained 45,000 jobs, for a provincial net gain of 29,000. Clearly, its high-profile status as a finance and trade center was B.C.'s biggest asset last year.

B.C. sends 36 percent of its exports to the Pacific Rim, and has developed many ties with that region, thanks in large measure to Vancouver's large Asian population. The British Columbia Investment Office (BCIO), formed four years ago to facilitate private-sector investment, recruits Asian investors and helps them through the web of government regulations they must follow.

Vancouver (pop. 1.7 million) is the province's largest city and Canada's largest port. It is an International Maritime Center, which means international shipping companies can receive tax concessions if they relocate there, says Michael Track, a project manager with the BCIO. He says about 12 companies have taken advantage of this regulation, each bringing between 50 and 100 jobs to the city. Vancouver is also an International Financial Center; qualifying businesses that relocate receive a 100 percent provincial tax refund.

As a result, in terms of commercial and industrial real estate, the city hasn't missed a beat. Second only to Toronto in office vacancy rates, the overall rate in that city fell to a Canada-wide low of 8.9 percent (with 846,000 square feet of absorption), while industrial vacancy rates dipped below 3.5 percent.

Construction activity was highlighted by the completion of the beautiful and functional Library Square project, now fully leased to provincial and federal agencies. Two other major facilities that opened in 1995 were the Ford Center for the Performing Arts and GM Place. (The latter is the fiber-optic friendly home of the Grizzlies of National Basketball Association and the Canucks of National Hockey League.)

Despite their height, these new buildings were dwarfed by activity in B.C.'s high-tech sector. It is here, in the triangle formed by Vancouver, Seattle and Portland, that software, electronics and biotechnology have enjoyed growth second only to that in Silicon Valley. The nearby home of Microsoft Corp. in Redmond, Wash., is one reason. Another is the large technology-literate pool of workers, thanks to computer science programs at Simon Fraser University, the University of B.C. and the University of Victoria.

Even before the information technology sector heated up on the West Coast, the weather was hot and the scenery breathtaking. "People know Vancouver has high-quality living conditions, education and beautiful mountains," says investment officer Track. Sharing this sentiment is Susan Shaw, a manager with semi-conductor manufacturer PMC Sierra in Vancouver. "From a recruiting perspective, the area is one of the best draws around. It offers everything from skiing to sailing and a very gentle climate."

Beachcombing in the shadow of Vancouver's skyline is just one of the pleasures of visiting or living in "Lotus Land." (Photo courtesy of Tourism Vancouver)

Culturally, Vancouver also attractive, says Shaw. And, if the superior quality of life was ever in doubt, the Corporate Resources Group of Geneva has underscored the fact by consistently ranked it one of the best cities in which to work and play.

Mark Paddock is a freelance writer who now lives in Toronto.

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

Return to SiteNet