Atlantic Canada leads the country with the most cost competitive region for business 

The KPMG study examines 26 key business cost elements, including labour, taxes, real estate and utilities, in 16 featured Canadian cities and compares more than 110 cities in 14 countries around the world.

"Atlantic Canada is becoming an increasingly attractive location for international business," said Brent Spencer, Office Managing Partner for Moncton and Saint John with KPMG in Canada. "Each city included in the study showcased strengths for particular sectors, but with a common thread of a very competitive labour force."

In terms of cost competitiveness for individual cities, sectors, and industries, Moncton leads all Canadian cities in both the R&D and corporate services sectors. Meanwhile, Fredericton edges out Moncton in the rankings for the manufacturing sector, Halifax ranks first among the Canadian cities for low costs in the digital services sector, and Charlottetown and Halifax tie for low costs in aerospace manufacturing. In St. John's, the energy boom has resulted in rising business costs, causing St. John's to rank 11th among the Canadian cities in this study, down from 7th in 2010. Compared to six New England cities included in the study, the Atlantic Canadian cities generally come out ahead, although Bangor, Maine, outperforms some Atlantic Canadian cities for some manufacturing industries and for corporate support services.

Rankings and cost indices for featured Canadian cities
(Listed from lowest cost to highest cost)

**Business costs in this table are expressed as an index, with the United States being assigned the baseline index of 100.0. A cost index less than 100 indicates lower costs than the US.  A cost index greater than 100 indicates higher costs than the US.  For example, an index number of 95.0 represents a 5.0 percent cost advantage relative to the US.

Across Canada:

• Montréal ranks seventh among the 16 featured Canadian cities. Low or moderate transportation costs, industrial leasing costs, and electricity costs help Montréal's ranking. It also has the lowest business costs among the 30 largest cities in Canada and the United States (all with metropolitan populations of 2 million or more).
• Toronto ranks 12th among the 16 featured Canadian cities. Moderate industrial leasing costs, transportation costs and natural gas costs are advantages for Toronto relative to the other Canadian cities, while high labour costs add to the total cost picture in Toronto.
• Calgary ranks as the most expensive among the 16 featured Canadian cities, but still ranks as being more cost effective than 42 international cities studied. Relatively high wages, suburban office leasing costs, and electricity costs all add to Calgary's total cost picture, while low natural gas costs represent a plus for Calgary.
• Vancouver ranks 14th among the 16 featured Canadian cities. Vancouver has the highest office leasing costs among the 16 featured Canadian cities, for both downtown and suburban office space, while relatively low utility costs benefit Vancouver.

Canada vs. the Globe

Among the nine mature markets studied, Canada ranks third for business costs, with costs 5.0 per cent lower than in the US. While the United Kingdom and the Netherlands rank only marginally ahead of Canada (by 0.5 and 0.3 percentage points, respectively), the favourable results for these countries are due, in part, to devaluations of the euro and the pound resulting from the European debt crisis.

"Canada continues to be a competitive place to do business," said Elio Luongo, Canadian Managing Partner, Tax. "Despite Canada's sluggish productivity rates, our cost position did not change from our previous study in 2010, and that tells us that through the current global economic turbulence, and despite the strong loonie, we are standing our ground."

Rankings and cost indices for featured countries
(Listed from lowest cost to highest cost)

About KPMG Competitive Alternatives Study

KPMG's 2012 Competitive Alternatives study provides an independent comparison of international business locations in more than 110 cities in 14 countries around the world (developed and high growth economies).

The study looks at a wide range of issues when assessing competitiveness for business, with a primary focus on business costs, but also population and demographics, education and skilled labour, innovation, infrastructure, economic conditions, regulatory environment, cost of living, and personal quality of life. It also examines cost competitiveness of locations for different industry sectors including manufacturing, digital, research and development, and corporate services.

The study enables business executives to take an initial scan of how business costs compare among a variety of cities in leading countries. It also assists KPMG professionals and economic developers in their work with businesses considering relocation or expansion, and enables policy makers to help determine the impact of a proposed tax and/or incentive policy change on the cost competitiveness of their jurisdictions.

To access the full report, please visit www.competitivealternatives.com.

Exchange rates per USD used in the Competitive Alternatives 2012 study are as follows: AUD $0.99, BRL $1.80, CAD $1.02, CNY ¥6.36, EUR €0.74, GBP £0.64, INR 50.75, JPY ¥77.33, MXP $13.64 and RUB 31.07.

About KPMG

KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm of KPMG International Cooperative ("KPMG International"). KPMG member firms around the world have 145,000 professionals, in 152 countries.

The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss entity. Each KPMG firm is a legally distinct and separate entity, and describes itself as such.

Follow @KPMG_Canada for more facts from the Competitive Alternatives 2012 study.

For more information, contact:

Kathleen Killen
Senior Manager, Media Relations
KPMG in Canada
(416) 777-3447
kkillen@kpmg.ca