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Site Selection Report 2019 SITE SELECTION REPORT www.gotothunderbay.ca 02 Why Thunder Bay Thunder Bay is a thriving business centre nestled in a breathtaking landscape. Natural resources abound, making forestry and mining historical key industries for the region. With a focus on investment and diversification, Thunder Bay has created a stable and competitive business environment capable of supporting innovation in a variety of sectors including mining, aviation, health sciences and advanced manufacturing. Thunder Bay’s central location within Canada and access to US and international markets through its extensive transportation network allow businesses to use Thunder Bay as a key location in their supply chain. Research & Development Institutes TRANSCANADA and private labs are supporting HIGHWAY TRANSCANADA exploration across many industries CONTINUES TO HIGHWAY WEST COAST TIMMINS, ONTARIO CONTINUES TO in Thunder Bay. This research EAST COAST WINNIPEG, MANITOBA 770 KM and innovation is assisting in 685 KM the diversification of Thunder THUNDER BAY NORTH BAY, ONTARIO SUDBURY, ONTARIO 1105 KM Bay’s economy, improving health 995 KM care for Northern communities, OTTAWA, ONTARIO commercialization in renewable 1465 KM energy, bio-refining, and mineral INTERSTATE SAULT SAINT MARIE, ONTARIO 29 DULUTH, MINNESOTA 690 KM extraction and refining. 314 KM TORONTO, ONTARIO 1375 KM These institutes are also securing MINNEAPOLIS, MINNESOTA MILWAUKEE, WISCONSON BUFFALO, NEW YORK their future development by 556 KM 945 KM 1603 KM DETROIT, MICHIGAN encouraging greater participation of INTERSTATE 1263 KM younger generations in careers based 35 CHICAGO, ILLINOIS CONTINUES TO on sciences and math. MEXICAN BORDER 1060 KM When compared to US cities such as Minneapolis, Thunder Bay has 22% lower costs for digital industries, 21% lower R&D costs, and 22% lower costs for corporate services. (Source: KPMG Competitive Alternatives 2016). LABOUR COSTS FACILITY COSTS TRANSPORTATION COSTS 1st 2nd 3rd 1st 2nd 3rd 1st 2nd 3rd Mexico Canada Italy Mexico Germany Canada Japan Canada Germany Canada is the only county in the world to achieve a top 3 ranking in all categories. Source: KPMG Competitive Alternatives 2016 Site Selection Report: 2019 03 Supply Chain Thunder Bay is centrally located in Canada; the gateway to Ontario’s Location/Transportation Network Northwest; and is extremely close (70km, 43.5mi) to a major US border crossing. With an extensive transportation network, businesses Road can optimize their shipping options 300 km/186 mi to based on the final destination of their Interstate 35 linking to goods by utilizing a mixture of air, sea, 70 to the US-Mexico border. rail, and road transportation. kilometers from the 346 km/215 mi from the Businesses in Thunder Bay benefit Pigeon River crossing Fort Frances/International from this network which allows easy to the US market Falls border crossing. access for importing raw materials and delivering final products internationally. Thunder Bay’s location and existing supply chain infrastructure is ideal for businesses that need to access not only North Rail America, but a global market. Access to 2 major railways, Canadian National (CN) & 20,000 Canadian Pacific (CP). Telecommunications With 5 major national fibre optic kilometers of CN Rail track Provides access across cables going through Thunder Bay, through Canada & US Canada, through the US, and the city is well serviced by most ports on 3 coasts. national communications companies as well as TBaytel, which is owned by the City of Thunder Bay. The multiple fibre trunks run through the city and are connected to the Water largest data centre and carrier hotel Largest outbound port on the in Toronto, Canada. TBaytel has a 110 Great Lakes-St. Lawrence year history in Thunder Bay and has th Seaway System. grown to be the largest independently largest owned communications company port in One of Canada’s largest in Canada. Tbaytel employs over Canada warehousing and trans- 400 people in Thunder Bay and 6 shipment complexes. they provide the fastest internet connection in the city as well as reliable mobility, tv internet, telephone and security services for business clients. Air 2 hour flight from major centres in the Access to Raw Materials rd US and Canada. busiest Northwestern Ontario is a strong contributor to Canada’s gold mining airport in Airport moves over 800,000 Ontario industry, producing 19% of Canada’s 3 passengers per year. gold in 2018. New business sectors also benefit from being situated along Lake Superior which contains 10% of the Earth’s available fresh water. Site Selection Report: 2019 04 34% 30% % % 27 up to 26 $310 per m2 up to $157 per m2 $0 1 3 Ontario Italy Germany France Thunder City of City of Canada US Bay Vancouver Toronto Healthcare Healthcare Costs Costs Low Taxes Low Site and Building Costs Low Healthcare Costs Ontario has a combined provincial Thunder Bay offers extremely One area in which Canadian (11.5%) and federal (15%) corporate competitive land costs, construction companies are much more income tax rate of 26.5%, making costs, and zero development competitive than their US Ontario’s combined general federal- charges, making it an ideal location counterparts is healthcare. Ontario provincial CIT rate lower than the for expansion and new construction. has a universal healthcare system, average of G20 countries and lower Thunder Bay has a large amount of which means that average employer than the average federal plus state land zoned for new development, health costs per year for companies CIT rate in the United States. offering commercial, industrial, and based in Ontario are 1/3 of the cost aviation space. of the US average. Cost Overview Canada is consistently ranked highly competitive on major cost factors including labour, transportation, and taxes. Canada also has a lower dollar value, which increases profits when selling to the US and global markets. When compared to US cities such as Minneapolis, Thunder Bay has 22% lower costs for digital industries, 20.8% lower R&D costs, and 21.8% lower costs for corporate services1. Average wages in Thunder Bay are lower than the Ontario, and Canadian averages. Thunder Bay also has zero development charges, affordable cost of land and buildings, and competitive construction costs, giving businesses superior opportunities for development. This thriving city is surrounded by breathtaking landscapes, features a superior quality of life and a lower cost of living for its residents. 1(Source: KPMG Competitive Alternatives 2016). Site Selection Report: 2019 05 Leading The Way in Business Development 94% $9.5m 35,000 employment rate to conduct health research youth engaged in the within 2 years of at The Northern Superior Science graduation from Ontario School outreach programs Lakehead % of Medicine 18 since 1999 University 90 years employer satisfaction rate Oshki-Pimache-O-Win with graduates of Education and Confederation Training Institute College established in 2000 Leading Edge in Health Leading Edge in Bio-Refining Leading Edge in Mining Thunder Bay Regional Research The Centre for Research & Innovation The Centre of Excellence for Institute aims to develop innovative in Bio-Economy drives a competitive Sustainable Mining and Exploration health care techniques from concept bio-economy industry within Ontario, encourages research, education, to clinical trials to commercialization, transforming renewable forest and outreach regarding the nature supporting scientists and clinicians resources into novel new products, and impacts of mineral resource at every step. materials and fuels. exploration and extraction. Education Thunder Bay is home to two major educational institutions, Confederation College and Lakehead University. Lakehead University ranked in the top 10 Canadian Universities to attend for a primary degree in the 2019 Maclean’s University Rankings, and it has been ranked as the top Canadian University for Undergraduate Research by Research Infosource. Lakehead University is home to Canada’s newest medical school, the Northern Ontario School of Medicine. The Oshki-Pimache-O- Win Education and Training Institute provides post secondary education programs and training for people of the Nishnawbe Aski Nation and other learners. All of these educational institutions are pro-active in the ongoing development of the skill sets needed by employees to enable companies in Thunder Bay to maintain their competitive advantage. Site Selection Report: 2019 06 Incentives / Funding Programs Thunder Bay is committed to supporting the advancement of our businesses. There are numerous incentives and funding programs for new and expanding businesses to take advantage of. These opportunities have been organized by municipal, provincial, and federal programs. Northern Ontario % Heritage Fund Corporation $ 35 The NOHFC provides financial 260M assistance to businesses that are committed to the economic growth Refundable Investment and diversification of Northern Has been invested Tax Credit offered to Ontario. through FedNor Canadian Controlled since 2011 Private Corporations on qualified expenses SR&ED FedNor This federal program supports % Focused on supporting businesses in businesses that are investing in 50 the North, FedNor provides funding innovation. Companies that complete assistance for community projects scientific research and experimental as well as private sector initiatives development in Canada may qualify Funding up to designed to improve the economic for tax rebates through the SR&ED 50% on
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