Why Invest in Ontario?
An extensive transportation network of five international airports, 13 Canada custom airports, and 14 road, 7 rail and marine borders crossing to the U.S. connect the province with markets in North America and around the globe. Ontario Manufacturing Communities Alliance communities are located within two hours of the U.S. The Ontario Manufacturing Communities Alliance works across the province to research locations that offer your business that most strategic fit. At the Ontario Manufacturing Communities Alliance, our job is to help you make the best decisions for the growth and prosperity of your business.
Benefits of Ontario
- University and colleges in Ontario offer a variety of co-operative and on-site learning opportunities for their students to interact directly with Ontario’s manufacturing companies.
- Over 60 percent of the population has completed secondary school education or higher.
- Ontario is the largest province in population with a location well over 14 million residents.
- Daily two-way goods trade between Ontario and U.S. in 2017 was valued at $966 million (CAD)
- An extensive transportation infrastructure allows for quick access to over 460 million consumers in North America and beyond.
- Millennials (age 18 to 34) are the largest generation in the urban populations within the province.
- Through Canada’s diversity immigration policies, Ontario has over 150 different languages spoken.
- Revenues from the manufacturing industry were $718.4 billion in 2021.
- Manufacturing exports totalled $162,405,138 in 2021.
- The manufacturing sector had over 776 thousand jobs in 2021.
Global Reputation for Manufacturing and Access to 460 Million Consumers
Canada’s largest province by population, Ontario has a global reputation for manufacturing and access to over 460 million North American consumers through the North American Free Trade Agreement (NAFTA) that has nearly tripled trade between Canada and the U.S.
Generous R&D Tax Incentives
Canada’s R&D tax incentive program is one of the most generous in the world. When tax credits are factored in, the after-tax cost of $100 in R&D spending can be reduced to less than $41. Canada supports private-sector innovation through the federal Scientific Research and Experimental Development (SR&ED) program and related provincial tax incentives. The result is that businesses in Canada enjoy the lowest R&D costs in the G-7—10.7 percent lower than those in the U.S.
Ontario-Canada’s Globally Cost-Competitive Economy
The list of reasons to invest in the Ontario Manufacturing Alliance starts with Canada’s exceptional economic fundamentals. Canada means lower costs, according to KPMG Competitive Alternatives 2016 Report, Canada ranks second in the Top 10 countries with the lowest businesses’ costs ahead of Germany, Japan, and the United States. The KPMG Report found that Canada cost of doing business was 14.6 percent lower than the United States.
One of reasons these lower costs in Canada is universal health care which means that employer health care costs are 50% lower compared to the United States. Ontario boasts one of the world’s best and most cost-effective health care systems. The Ontario Health Insurance Plan (OHIP) provides excellent coverage to all residents at little cost to the individual and at surprisingly low costs to the government (in 2007, the U.S. spent approximately 16 percent of GDP on health care, compared to 9.1 percent in Canada).
The universal health care system is one of the contributing factors that reduce the cost of operating a business in Ontario, helping to sustain one of the lowest payroll taxes and benefit deduction rates in North America.
In the KPMG Report Canada Ranked:
- 1st in corporate tax rates
- 2nd in labour
- 2nd in transportation
- 2nd in manufacturing
- 3rd in facility costs; and
- 3rd in R&D costs.
Canada has continued to outperform peers in terms of job creation, economic growth, income growth and debt-to-GDP ratio.
Canada a Lead on the Global Stage
United Nations’ Human Development Report ranks Canada in the top ten nations for quality of life (based on life expectancy, education, and real income)
Diverse Population
Ontario has one of the most diverse populations in the world
Canada has designed its immigration provisions with business in mind. The Canadian government understands that to be successful you need your team on the ground, that is why the corporations are allowed to transfer their senior personnel to Canada with very little red tape.
Canada's Sound Banking System
Canada is also among just a handful of nations in the world with a triple-A credit rating. This provides assurance to business investors about the security of their direct investments in the Ontario Food Cluster.
Canada’s business operating costs are the second lowest in the G-7 and five percent lower than those in the U.S., according to the most recent KPMG analysis.