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We offer:
Come grow your business in Ontario.
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FACT
In their forecast of the global business environment through to 2009, the Economist Intelligence Unit (EIU) ranked Canada as one of the best countries in the world to do business, thanks to our openness to foreign trade and capital, high-quality infrastructure and opportunities within the North American marketplace.
The rise of the global business model revolutionized international business.
Today, large and small companies locate their manufacturing, product assembly, R&D and contact centres wherever they find the best combination of talent, cost-efficiencies and market access.
Ontario, Canada, has emerged as an efficient, North American hub for global business. During the past ten years, foreign direct investment in key sectors—automotive, ICT, chemicals—has soared and exports have grown by more than 50% as multinationals recognized the tremendous advantages of doing business here.
What's behind Ontario's success? We offer:
Come to where the world does business. Come to Ontario.
From the moment the first Corolla came off the assembly line in 1988, Toyota Motor Manufacturing Canada (TMMC) has been on a roll. The award-winning Cambridge, Ontario facility employs 4,300 workers who produce more than 300,000 Corolla, Matrix and Lexus RX330 models a year. In fact, Cambridge is the only plant outside Japan to build the Lexus, a tremendous vote of confidence in the company's Ontario operation. Now, in another vote of confidence in Ontario, Toyota has chosen Woodstock, a small town in the province's busy auto corridor, for the site of its new North American assembly plant. Slated to be up and running in 2008, the $900 million flexible facility will have the capacity to build 150,000 units a year and will start by producing the RAV4 sport utility vehicle. "Ontario is a great place to build cars," says TMMC President Ray Tanguay. "We couldn't have expanded into Woodstock without access to a skilled labour pool, excellent transportation system and a very supportive Ontario government."
| Total trade = exports + imports | US$ (millions) | Percent of Total |
|---|---|---|
| United States | 255,925 | 79.3 |
| China | 10,413 | 3.2 |
| Mexico | 9,395 | 2.9 |
| Japan | 6,356 | 2.0 |
| United Kingdom | 5,385 | 1.7 |
| Germany | 4,007 | 1.2 |
| South Korea | 2,122 | 0.7 |
| France | 2,037 | 0.6 |
| Italy | 2,001 | 0.6 |
| Taiwan | 1,787 | 0.6 |
| Total: Top Ten | 299,428 | 92.8 |
| Total: All Countries | 322,704 | 100.00 |
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In 2004 total trade (exports plus imports) topped $322.7 billion—double what it was ten years ago. Our auto industry produces one-sixth of all vehicles built in North America. Our advanced manufacturing sector is helping to shape the future with its innovative processes and products. Our information technology and telecommunications companies are world leaders. Our life science sector—pharmaceuticals, medical devices and biotech—is a North American hotspot.
And as Canada's manufacturing, R&D and financial centre, Ontario has been the destination-of-choice for about 40% of the billions of dollars in international investment that pours into Canada each year.
We're part of the affluent $13.8+ trillion NAFTA market, which allows Ontario products to enter the U.S. and Mexico duty-free when 62.5% of their content is manufactured here. Ontario-based companies can bid on the procurement contracts of the U.S. and Mexican governments and state-owned corporations.
We also have solid business connections with Europe and Asia. Total trade has grown to more than $13 billion with leading countries and more than $20 billion with Asian leaders.
Companies come to Ontario because of the market access; they expand because of the quality. Toyota, for example, manufactures its luxury Lexus RX 330 here—the only place in the world outside Japan with a Lexus mandate.
International business is growing rapidly in Ontario.
Paris, France-based Messier-Dowty is the world leader in the design, development, manufacture and support of landing gear systems and its Toronto facility plays an important role in the company‘s success. Charged with designing, testing and manufacturing systems for all regional and business aircraft within Messier-Dowty worldwide, the Toronto facility also produces gears for some military aircraft and builds many of the components that go into the landing gear. Its clients include some of the biggest names in aerospace including Boeing, Bombardier, Raytheon and Dassault. The 200,000 square-foot Messier-Dowty Toronto facility, which underwent an expansion in 1997, employs 530 highly educated and skilled people and features a state-of-the-art final assembly area where the systems are fully assembled and tested prior to delivery to the customer. "Our location in Ontario gives us access to a pool of the kind of highly skilled people we need," says Tim Whittier, Director of Marketing for Messier-Dowty Toronto, who points out that the company is actively involved in co-op programs with a number of Ontario universities. "Also advantageous is our proximity to the U.S and a sophisticated transportation system that lets us get our systems and components to our clients quickly."
FACT
The Windsor-Detroit border crossing is the busiest trade gateway in North America. Every day, 9,000 trucks use it—a quarter of all Canada-U.S. truck traffic—and they carry over $300 million worth of just-in-time deliveries. Canada and the U.S. are expanding the capacity of this crossing with $240 million in infrastructure improvements.
Products, people and ideas flow smoothly in and out of Ontario. Our transportation and telecom infrastructures are extensive, sophisticated and integrated with U.S. systems.
Advanced telecommunications networks offer unsurpassed reliability and speed and seamless international connections. Fifteen road, rail and marine border-crossings provide access to the U.S. market. With four international airports and a network of regional airports, business centres like Toronto, Ottawa, Thunder Bay and London are only a two-to-three hour flight from major U.S. cities like Detroit, Chicago, New York and Boston. Toronto's Pearson International Airport is serviced by more than 65 airlines which provide same-plane service to 43 cities in the U.S. and 42 cities abroad.
Ontario has embraced the global business model. We have the market access, connections and experience to help your company grow.
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Doing business around the world requires special expertise.
We have it, and that's one of the reasons why so many companies build their international operations in Ontario.
Six of the world's largest automotive companies and eight of the world's 10 largest chemical companies are here. So are nearly all the global biotech giants and international leaders in ICT and aerospace.
Many Ontario operations have global mandates for key products, including ATI Technologies, DaimlerChrysler, DuPont Canada, GM, Husky Injection Molding Systems, IBM, Magna International, Messier-Dowty, Nortel Networks, Research in Motion (RIM) and Toyota.
Thanks to its success in highly specialized manufacturing, GlaxoSmithKline's Canadian operation, headquartered in Mississauga, is expanding. The 250,000 square-foot manufacturing and development facility, which already produces more than 75 different medications, is getting a $23 million (Cdn) expansion to fulfill 22 new global manufacturing mandates. The U.K.-based company is also investing $1 million (Cdn) in MaRS, a not-for-profit corporation located in downtown Toronto that brings together the best-in-class in science, business and academia to accelerate commercialization of medical discoveries. GSK produces and ships $2 billion (Cdn) worth of medications a year, 80 per cent of which is exported, many to more than 70 countries around the world. "Our Mississauga facility produces a wide range of innovative medicines to treat children living with HIV in Africa, malaria patients in the developing world, and allergy sufferers here in Ontario," says GSK President and CEO Paul Lucas. "To be successful, we rely on Ontario's highly skilled work force to provide the knowledge and ability to take an idea from the lab to the marketplace."
In 2003 Arvato Services, a subsidiary of the German-based international media service provider Bertelsmann, was looking to add near-shore capabilities to its existing centres. A leading global provider of integrated and customized outsourcing services for Fortune 500 companies in the IT, consumer electronics and travel industries, Arvato had a list of key criteria. "A lot of due diligence goes into the selection for a new site," says Stephen Guhr, Director of Operations for Arvato Services. The c ompany combined its own research with that of site selectors to choose Kitchener, Ontario for its first near-shore centre. "The most important factor in our business is a supply of highly qualified and diverse labour," says Guhr. "Kitchener offered skilled workers with a wide range of language skills, which is essential for servicing our clients." It also offered available space, sophisticated telecommunications service, proximity to the Greater Toronto Area (GTA), and a strategic location from which to expand its operations. Arvato Services opened its Kitchener location in May 2003 with 150 customer service professionals which more than tripled to 475 by September 2004. Says Guhr, "We're definitely looking to grow some more."
FACT
Canadians rank third in the world when it comes to high-speed Internet access, according to a recent report by the Geneva-based International Telecommunication Union. High-speed connections are seen as a key to future sales and profit growth.
We understand global business. We have cultural and business affinities with the U.S., Europe and Asia that smooth the way for international trade, investment and project partnerships.
In a recent Economist survey of 90 countries, only Finland and Sweden ranked higher than Canada for honesty and reliability in business.
We observe best-in-class intellectual property and privacy regulations. Our legal, accounting and marketing firms understand the needs of international business.
We operate on Eastern Time. At most, this means a three-hour time difference within North America and same-day business access to Europe.
As one of the most multicultural societies in the world, we're fluent in more than 100 languages including French, Spanish, German, Japanese, Mandarin, Cantonese, Korean and Punjabi.
We also make it easy to bring together worldwide research or production teams. Work visas for key employees and their families can usually be obtained within days.
When it comes to doing business in the global village, we're right at home.
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The bottom line for global business success rests on workforce skills and competitive costs—two areas in which Ontario excels.
Growing knowledge-based industries, whether they're in advanced manufacturing, ICT development, biotech or contact centre services, need access to a large pool of educated, skilled and reliable workers. They find it in Ontario.
| Ontario's workforce is: | ||
| • | well-educated | A higher percentage of our workers have post-secondary education than in any G7 country. |
| • | skilled | A network of 20 universities and 24 colleges trains students in every field from the skilled trades to the most advanced areas of science, engineering and business. |
| • | dependable | Our workers' on-the-job average is 8 years, in manufacturing it's 9 years and that translates into lower training costs. |
| • | ethnically diverse | We speak more than 100 languages which means we can work with your customers and suppliers in their own language, anywhere in the world. |
A workforce with advanced skills
From Windsor to Ottawa and into Northern Ontario, throughout Ontario's Innovation Corridor, world-leading companies collaborate with more than 150 university, college and public research centres to speed new discoveries and processes from the lab to the marketplace.
When it comes to core operating costs, Ontario businesses have a distinct advantage.
KPMG's comprehensive 2006 Competitive Alternatives study of international business costs reported that Canada's costs are the most competitive of the G7 countries (U.S., U.K., France, Germany, Italy, Japan and Canada). In its city-by-city comparison, the same study showed that Toronto, Ottawa, Sudbury, Sault Ste. Marie and Waterloo offer cost advantages over 60 cities across North America, Europe and Japan.
Ontario's combined (provincial and federal) general corporate income tax rate is almost 4 percentage points below the U.S. average and our payroll taxes are the lowest of the G7 nations.
And employee health care benefits cost Ontario manufacturers about half as much as their U.S. counterparts—6.8% versus 13.2% of wages. In Ontario, most services such as doctor's fees, tests and hospital stays are paid through the public health system.
Innovation costs are low and R&D talent is plentiful in Ontario.
More industrial and university-based R&D is performed in Ontario than anywhere else in Canada. Leading-edge research is conducted in virtually every area of ICT, advanced manufacturing and life sciences. We have incubators, research parks and technology transfer offices throughout the province.
The Ontario government has committed close to $1.4 billion over four years to support research and commercialization at our universities, colleges, hospitals and research institutes.
Our 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.
We have the people. We have the know-how. It's no wonder savvy investors keep Ontario on their short-list of global locations.
When fast-growing San Jose, California based Nuvation decided to
expand its design capabilities by establishing a satellite design centre,
the company looked at a number of possible sites, including India, the
Pacific Rim, Eastern Europe and Canada. A global leader in electronics
design services (EDS) whose clients include HP, DaimlerChrysler, Lucent,
Fujitsu and Agilent, Nuvation needed a location that could provide a
supply of top-tier engineering talent, competitive business costs and low
IP and business risk. "In the end, the decision was easy," says Chris
Hallahan, Nuvation's VP Sales & Marketing. "The one place that fit the
bill was Waterloo, Ontario. It delivers superlative design talent, highly
competitive business costs, a similar culture, language and laws and an
entrepreneurial spirit that matches ours." There's also Waterloo's relative
proximity to the company's headquarters and customers. "Many of our
clients are increasingly averse to the risk and efficiency loss inherent
in offshoring," says Hallahan. "Waterloo maintains our quality of
engineering and productivity, and at an even greater value to our clients
thanks to a favourable exchange rate."
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FACT
Our universities and colleges produce more than 29,000 graduates a year in mathematics, engineering and sciences.
The ideal business location is big enough to support growth but small enough to offer easy access to decision-makers.
In Ontario, we think we've got the balance just right.
At almost $400 billion, our GDP is larger than that of Switzerland, Belgium, Sweden or Austria, and big enough to support a broad base of manufacturing and financial and business services. In many ways, Ontario is a microcosm of bigger markets.
And we are growing. Between 1993 and 2003, Ontario's economy grew faster than any of the G7 nations. Real GDP growth averaged 3.7% per year. Looking ahead, our GDP is forecast to grow 3.2% annually through 2006–2008 while inflation is expected to remain below 2% per year.
But at the same time, with a population of less than 12.5 million, we are small enough so that global business leaders and investors can make a big impact.
Decision-makers listen and respond to what investors need. Regulatory systems have been streamlined.
Site permitting is much quicker here than in many jurisdictions. Business start-ups require only two simple steps here, compared to as many as 20 needed in other industrialized countries.
All the necessary infrastructure is in place—buildings, transportation, telecom. The result? Faster turnarounds, so that companies can get on with growing their businesses.
We have an environment designed for global business success and the high quality of life that goes with it.
We're a multicultural society that welcomes people from around the world. No matter where you come from, you'll find a community in which you will feel at home.
And the choice of after-hours pursuits is endless, from sophisticated urban nightlife to relaxing at a lakeside cottage.
It's this combination of business advantages and quality of life that is leading more commercial investors to choose Ontario for their global business expansion.
When French-based Lisi Automotive—a leader in engineered fasteners
and safety critical components—decided to build a North American
facility, the company had a list of requirements that had to be met.
Lisi was looking for a location that offered skilled labour—some fluent
in French—competitive business costs and proximity to its tier-one
customers in the U.S. and Canada. The ability to grow the business was
an important consideration as well. After investigating four potential
sites, Lisi chose the Greater Toronto Area (GTA). Situated in the heart
of the North American auto industry, the GTA delivered everything the
company was looking for—including the ability to get up and running
quickly. It took just three months from renting a building to the start of
production. "In setting up our operation here in the GTA, we‘ve been
impressed with the culturally diverse talent pool and with how relatively
easy it‘s been to recruit and retain highly motivated and skilled workers,"
says Martin Beley, Chief Operating Officer. Lisi began production in
July 2002. It quickly attracted new customers and is already planning to
double its manufacturing capacity over the next two years.
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Let us help you quickly find the data and contacts you need.
Please visit our website, www.2ontario.com or call us at
1-800-819-8701 (North America) or
00-800-46-68-27-46 (U.K. and Europe) for:
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Ontario Investment and Trade Centre
250 Yonge Street, 35th Floor
Toronto, Ontario, CANADA M5B 2L7
Tel: 416 313-3400
Fax: 416 360-1817
1-800-819-8701 (North America)
00-800-46-68-27 (U.K. and Europe)
e-mail: info@2ontario.com
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