Profiting from our Business Advantages - Red Deer, Canada's Economic Capital

In a study conducted by KPMG in 2006, Canada was ranked number one among all G-7 countries as the least expensive country in which to do business, with a cost advantage of 5.5 per cent over the United States.

Industrial land, construction and labor costs are lower in Canadian cities than their US counterparts.
Natural gas and electricity costs are dramatically lower in Canada, with Alberta cities having the lowest costs of all provinces.
Transportation costs are generally lower in Canada than they are in the United States. When looking at dollars per tonne, Canadian road transportation costs are 32% lower than rates in the United States. These savings are due in large part to favourable exchange rates and a higher gross vehicle weight in Canada.
The Region’s food processing facilities, metal fabrication facilities and corporate services have a lower annual cost index than other cities in North America’s Midwest.

Young, Educated and Productive Workforce
Reasonable Labour Costs
Competitive Corporate Taxes
Low Personal Taxes
Competitive Utilities and Services Electricity and Natural Gas
Water and Wastewater

Young, Educated and Productive Workforce

The Region’s young, diverse population provides an energetic and productive workforce.

The Alberta youth population grew by 99,200 people between 1995 and 2005. This represents a growth of over 26.0% over the last decade. This rate was more than 2.5 times greater than the growth rate for Canadian youth. The growth rate for Alberta youth was also 1.6 percentage points higher than that of the total working age population in Alberta. (Alberta Human Resources & Employment)
In 2004, Alberta's economic productivity was higher than any other province. Total value added per hour in Alberta was 106.5% of the Canadian average. Alberta's manufacturing sector also had the highest productivity of all provinces, partly because of its highly productive chemical, machinery and food processing industries. On a per capita basis, Alberta had the highest worker productivity in 2004. (Alberta Economic Development)
Between 2000 and 2004, Alberta's person-days lost due to labour disputes was the second lowest in Canada. In 2004, the estimated number of person-days lost to labour disputes in Alberta averaged 2.6 days per 10,000 paid workers, compared to 74.7 days per 10,000 paid workers nationally. (Alberta Economic Development)
Alberta's labour force consists of over 1.9 million well educated personnel. In 2005, 60% of the labour force, 25 years of age and older, reported holding a university degree, or post-secondary diploma or certificate. (Alberta Economic Development)
Red Deer College is one of the driving factors behind the educated workforce. It offers a diverse array of programs: applied degree; degree completion; university transfer; certificate and diploma; academic upgrading; trades & industrial training; distance learning; international opportunities and extension & part-time learning. The College also provides industry specific training to meet specialized skill requirements.

Related Links

Alberta Economic Development

Alberta Human Resources & Employment

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Reasonable Labour Costs

Canada’s salaries, statutory plans, and other benefits, are among the lowest of all countries studied in KPMG’s Competitive Alternatives report.

Alberta's minimum wage is Cdn $7.00 per hour.

According to the KPMG’s 2006 report, labour is a key location-sensitive component, representing 55 to 73 per cent of location-sensitive costs for manufacturing and 76 to 87 per cent for non-manufacturing operations.

Alberta Learning updated its Wage & Salary survey in 2005. Click here for a sample of Red Deer Region wage and salaries.

The Red Deer Region consistently ranks as having the lowest combined property tax and utility overhead costs for business in Canada.

The municipalities in the Region do not have business taxes.
Alberta has one of the most competitive tax environments in North America.
Alberta is the only province that does not have a provincial retail sales tax.

The government recognizes the importance of low corporate taxes in developing a strong economy. Low taxes help Alberta businesses compete in the global marketplace and attract investment to Alberta, meaning more jobs, stronger communities and a better quality of life for all Albertans. Since 2001, the government has made significant reductions to corporate income taxes.

Other countries are also recognizing the benefits of low corporate taxes, which makes it even more important that Alberta take steps to maintain its competitive advantage. Effective April 1, 2006, the general corporate income tax rate was reduced to 10 per cent, lowering taxes for Alberta businesses by $265 million in 2006-07. (Alberta Finance)

Alberta has no provincial capital or payroll taxes, which are common in the rest of Canada and the United States.

Corporate Income Tax Cuts Since 2000.

Comparison of Corporate Income Taxes

The Red Deer Region ranks as the second most cost-effective location in Alberta and the third lowest in Canada in which to live compared to the major Canadian cities listed in the chart below.

Alberta’s provincial personal tax rates are among the lowest in Canada. A two income Alberta family of four, earning $60,000 per year pays approximately $1,000 less in total provincial taxes, including health care premiums, salary taxes and other excise taxes, in Alberta than Ontario, and about $1,650 less than in Quebec
A two income Alberta family of four, earning $100,000 per year pays $2,300 less in total provincial taxes than in Ontario, and about $6,800 less than in Quebec.

Property Taxes (incl. Municipal & Provincial Education) and Utility Charges for Single Family Homes

Alberta has restructured the electricity and natural gas industries to provide a more efficient, competitive marketplace and a greater choice of providers for consumers.