KPMG - Red Deer, Canada's Economic Capital

Red Deer Region a cost effective place to do business

It is 4.9 percent more cost effective to do business in the Red Deer Region than the United States, according to KPMG’s 2010 Competitive Alternatives study.
This is a 2.1 percent improvement in competitiveness from Red Deer's results in 2008.
Competitive Alternatives; KPMG’s Guide to International Business Location compares business costs for 136 cities in ten countries: Australia, Canada, France, Italy, Japan, Germany, Mexico, the Netherlands, the United Kingdom and the United States.
The four business areas used in the study were:
- manufacturing,
- research and development,
- software, and
- corporate services
Using the United States as a baseline, Mexico is the lowest-cost country with a cost advantage of 18.2 percent. Canada is second with a 5 percent cost advantage over the United States.

As the United States gains a competitive edge from their weak dollar, it’s important for the Red Deer Region to focus on other non-cost values to remain competitive and attract businesses. These values include availability of skilled labour, economic conditions and market, quality of life, infrastructure and innovation.

^{KPMG identified Red Deer’s emerging industries as biotechnology, distribution and logistics, and high-tech manufacturing.

These industries have all benefited as they are linked to some of the strongest cost advantages in Canada.

Clinical trails, product testing, biotechnology research and development, corporate and I.T. services, web and multimedia, software design, and pharmaceutical production are the most cost effective.}

The Red Deer Region is also ranked seventh out of 25 major western Canadian cities.

The study is published every two years and measures 27 significant cost components that are most likely to vary by location including labour, taxes, real estate and utilities. The basis for the cost comparison is the after-tax cost of startup and operation over a 10-year planning horizon.

The study is available from ww.competitivealternatives.com.