Enterprise Saskatchewan

Don't just take our word for it. Independent analysts agree: the cost of doing business in Saskatchewan is competitive with other provinces and other jurisdictions around the world.

In 2010, international consulting firm KPMG released the latest edition of Competitive Alternatives: A Guide to International Business Location. This study compares the cost of doing business in 112 cities in 10 countries (Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, Mexico, Australia, and the Netherlands). The study includes four Saskatchewan cities: Saskatoon, Regina, Prince Albert and Moose Jaw. KPMG bases its rankings on costs for labour, taxation, facilities (industrial and Class A office lease rates), transportation, utilities, and interest and depreciation.

Saskatchewan passed with flying colours. Moose Jaw, Regina, and Prince Albert ranked 11th, 12th, and 13th respectively out of all 112 cities surveyed by KPMG. Saskatoon (21st) also finished in the top 20 per cent. In a comparison of 92 North American cities, Moose Jaw placed 9th, Regina 10th, Prince Albert 11th, and Saskatoon 19th.

All four Saskatchewan cities rated better than the Canadian index and ahead of large cities like Vancouver and Edmonton, as well as several small cities like Lethbridge and Brandon.

Best in the West: Saskatchewan’s cities hold four out of the top five spots overall among the 29 cities from the North American Midwest included in the study. Saskatchewan’s cities are the top four locations for food processing operations, and rank in the top quarter for all but three of the 17 industries examined.

Canadian Contenders: Regina ranks in the top third among 32 participating Canadian cities for nine out of 17 industries, with particular strengths in specialty chemicals and pharmaceuticals. Moose Jaw and Prince Albert rank in the top third for seven industries, with their best showing in the areas of corporate and IT services and R&D. Saskatoon is a top third cost leader for clinical trials and specialty chemicals.

Total Location-Sensitive Costs
All Industries
Source: KPMG 2010 Competitive Alternatives Report

When all costs are weighed-in, Regina has a slight cost advantage over Winnipeg (100.7) and a 2.7% advantage over Edmonton (102.7).

Along with KPMG, other independent analysts have a positive outlook on Saskatchewan’s business environment.

According to Statistics Canada, new capital spending by private and public organizations in Saskatchewan will achieve a record level of $17 billion in 2011. This will mark the fourth consecutive year that new investment in Saskatchewan exceeds the $14 billion mark.

Among nine major economic forecasters, five predict that Saskatchewan will have the best growth in Canada in 2011; seven of the forecasters expect Saskatchewan to be either first or second in 2012. The Conference Board of Canada forecasts that Saskatchewan will lead the country both years, with growth rates of 3.9% and 4.5%, respectively. RBC expects employment to grow by more than 2% each year (on average), or by about 10,000 jobs in 2011 and 12,000 jobs in 2012.

The Fraser Institute’s “Canadian Provincial Investment Climate 2010 Report” ranks Saskatchewan second among the provinces for 2010, with a score of 6.4 out of 10 (behind Alberta at 8.1 and ahead of BC at 5.6). Saskatchewan’s investment climate was ranked second for the second consecutive year, which compares favourably with a sixth place showing in 2005. Saskatchewan was rated the third-best mining investment jurisdiction in the world by the Fraser Institute in the international Annual Survey of Mining Companies 2010/2011. In 2009/2010, Saskatchewan ranked sixth.

Four Saskatchewan cities made the top 10 in the Canadian Federation of Independent Business report "Communities in Boom: Canada's Top Entrepreneurial Cities" released in October 2011: Lloydminster (2nd), Saskatoon (3rd), Regina (4th) and Moose Jaw (9th).

A recent economic impact study of the tenants of the Innovation Place research parks in Saskatoon and Regina and the Forest Centre in Prince Albert indicated the clients contributed just over $919 million to the economy of the province in 2010. 

The Association of University Research Parks (AURP) named Innovation Place the 2009 Outstanding Research/Science Park. Recognized for their role in supporting the growth of science and technology related economic development in the Province of Saskatchewan, Innovation Place became the second Canadian park to receive the award in its 13-year history.

The University of Regina and the Innovation Place Regina research park have their own strengths in areas such as informatics, energy and the environment, and health. The Petroleum Technology Research Centre at Innovation Place Regina is one of the premier facilities of its kind in North America.

Canada’s only synchrotron – the Canadian Light Source at the University of Saskatchewan – enables groundbreaking research in the medical and pharmaceutical sectors. 

Industrial land costs in Saskatchewan are among the lowest in Canada, and utility rates are competitive with the rest of the country.

Saskatchewan has a balanced and competitive tax regime:

• The Corporate Income Tax (CIT) rate for manufacturing and processing can be as low as 10% – one of the lowest in the country.
• The general CIT rate is 12%.
• The CIT rate for small business is currently 2.0%.
• There is no Payroll Tax and no Health Premium levied in Saskatchewan, unlike some other provinces.
• Saskatchewan’s top marginal rate for Personal Income Tax is the fifth lowest in Canada, and this is the only province in Canada to offer a universal child tax credit.
• At 5%, Saskatchewan's Provincial Sales Tax rate is the lowest of the nine provinces that charge PST.

* NOTES:

1. British Columbia, Ontario, Québec, New Brunswick, Nova Scotia, and Newfoundland & Labrador harmonize their PST with the Federal Goods and Services Tax (GST), which allows businesses to claim input tax credits on sales tax paid on business inputs, and effectively eliminates the impact of sales tax.
2. Québec and Prince Edward Island apply their PST on top of the 5% GST. This moves Quebec’s provincial rate of 8.5% to an effective rate of 8.93%, and PEI’s rate of 10% to an effective rate of 10.5%.