A new report indicated that Montreal is the best North American metropolis in terms of competitive operative costs for businesses.
The recent Competitive Alternatives 2014 by KPMG study revealed that the Montréal metropolitan region’s operating costs are 8 percent lower than the United States (across all sectors), beating out 33 other Canadian and U.S. cities with populations of at least two million people.
“Greater Montréal’s cost advantage jumped from 5.7% in 2012, to 8.0% in 2014, which is largely due to a weaker Canadian dollar,” said Dominique Anglade, CEO of Montréal International, a non-profit organization dedicated to economic development. “We definitely need to leverage this advantage, as competitive operating costs are one of the key factors considered by foreign investors looking for a site, in addition to access to the market and workforce availability.”
The cost advantage varies significantly from sector to sector. The Montréal metropolitan region stands out with specific tax credits, particularly within the video game industry (23.5 percent), software design (16.0 percent), R&D (18.6 percent) and international financial services (20.6 percent).
“This notable advantage enhances Greater Montréal’s attractiveness for strategic activity sectors in its knowledge-intensive industries,” said Anglade. “We are seeing increased convergence of operating costs between industrialized nations, thus incentives have become a crucial decision factor for businesses considering where to set up.”
The Competitive Alternatives study provides a detailed comparative analysis to help companies (including startups) decide where to locate their operations. The study compares 26 cost factors over a 10-year period for 131 cities in 10 countries. A country’s cost advantage is based on the average costs in the largest cities in each country.
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