Invest Sault Ste. Marie
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WELCOME TO SAULT STE. MARIE 1 Table of Contents EXECUTIVE SUMMARY ..................................................................................................................... 3 1. Introduction ............................................................................................................................. 3 2. Cost of Doing Business ............................................................................................................ 4 2.1 Labor Rates ............................................................................................................................ 4 2.2 Real Estate ............................................................................................................................. 5 2.3 Infrastructure ........................................................................................................................ 6 2.4 Provincial and Local Taxes ..................................................................................................... 7 2.5 Economic Incentives .............................................................................................................. 8 2.6 Airport Access ........................................................................................................................ 9 2.7 Government Debt ................................................................................................................ 10 2.8 Federal Funding Support ..................................................................................................... 10 3. Workforce .............................................................................................................................. 11 3.1 Colleges and Universities ..................................................................................................... 11 3.2 Workforce Stability .............................................................................................................. 13 3.3 Knowledge and Skill Set Base .............................................................................................. 14 3.4 Net Migration Potential ....................................................................................................... 16 3.5 Population and Scalability ................................................................................................... 18 3.6 Resource Availability ........................................................................................................... 20 3.7 Labour Competition ............................................................................................................. 23 4 Business and Political Environment 4.1 Business and Political .......................................................................................................... 24 4.2 Political Support .................................................................................................................. 24 4.3 Technology and Vendor Ecosystem…………………………………………………………………………………25 5 Quality of Life 5.1 Cost of Living ..................................................................................................................... 255 5.2 Housing ................................................................................................................................ 25 5.3 Commute ........................................................................................................................... 256 5.4 Education ........................................................................................................................... 266 5.5 Climate and Geography ..................................................................................................... 277 5.6 Arts and Recreation ........................................................................................................... 288 2 EXECUTIVE SUMMARY Sault Ste. Marie offers a compelling location to establish business operations. This document provides detail about the community, its assets and business environment. From the many strengths and advantages to locating in Sault Ste. Marie, we would like to highlight a few key points for your consideration: Economic incentives from the Northern Ontario Heritage Fund and other Sault-focused funding programs offer significant advantage and could exceed $5 million dollars Training programs offered by Sault College and Algoma University combined with support from the Canada Ontario job grant offer an excellent path for employee training and will help ensure a qualified and capable workforce Sault Ste. Marie offers a high quality of life for staff with affordable housing, low commute times and a natural environment that is second to none Political support from all levels of government will be very high - Sault Ste. Marie is currently served by Conservative MP Terry Sheehan and Liberal MPP David Orazietti who serves as the Minister of Government and Consumer Services Business support organizations go above and beyond in Sault Ste. Marie and will receive a strong support environment from employment service organizations, Sault Ste. Marie Innovation Centre and Sault Ste. Marie Economic Development Corporation Sault Ste. Marie has momentum - the City of Sault Ste. Marie’s credit rating was upgraded to A-A Stable by Standard & Poor’s in 2015; the Canadian Federation of Independent Business released a 2012 report titled “Communities in Boom: Canada’s Top Entrepreneurial Cities” and Sault Ste. Marie ranked 2nd in Ontario ahead of Toronto, Ottawa and London. The City is investing in new quality of place amenities and business support services that will drive prosperity in the future. We invite your company to be a part of this growing and revitalized community and look forward to establishing a new office for your organization in Sault Ste. Marie in the near future! 1. Introduction Sault Ste. Marie has a long and fascinating history and is one of the oldest French settlements in North America and was at the crossroads of the 3,000-mile fur trade route, which stretched from Montreal to Sault Ste. Marie and to the North country above Lake Superior. This area was originally called Baawitigong, meaning "place of the rapids," by the Ojibwa, who used the site as a regional meeting place during whitefish season in the St. Mary's Rapids. After the visit of Étienne Brûlé in 1623, the French called it "Sault de Gaston" in honour of Gaston, Duke of Orléans, the brother of King Louis XIII of France. In 1668, French Jesuit missionaries renamed it Sault Sainte Marie, and a fur trading post was established and the settlement expanded to include both sides of the river. Sault Ste. Marie was founded because of its strategic location in the middle of the Great Lakes. It’s industrial history stretches back to 1894 when industrialist F.H. Clergue harnessed the hydro 3 power of the rapids to establish an empire, including a steel company and paper mill. From this time, the community has emerged as a resilient one that enjoys its beautiful surroundings and position as a border community, situated on the international boundary between Ontario and Michigan. LOCATION Located along the border of the United States and at the heart of the Great Lakes 560 km northwest of Detroit 680 km northwest of Toronto POPULATION Source: Statistics Canada 2011 Sault Ste. Marie, Ontario – 75,000 + District of Algoma - 115,870 MAJOR INDUSTRIES Traditional . Forestry/wood products . Metal manufacturing/products . Lottery and gaming . Contact Centre . Tourism Emerging . ICT . Alternative Energy . Specialty manufacturing MAJOR EMPLOYERS . Essar Steel Algoma Inc. (Metal Manufacturing/Products) . Sutherland Global Services Contact Centre (IT Support) . Agero Contact Centre (Roadside Assistance Contact Centre) . ARAUCO/Flakeboard Company (Forestry/Wood Products) . McDougall Energy (Oil & Propane) 2. Cost of Doing Business 2.1 Labor Rates The labour force of Sault Ste. Marie is made up of over 67,130 persons. Over 55.1% of the population of Sault Ste. Marie aged 15+ are participating in the labour force. Participation Rate: Sault Ste. Marie 55.0% Mississauga 57.2% Ontario 65.2% Source: Statistics Canada 2015 4 In Ontario, salaries and wages are competitive with those in United States jurisdictions. When total compensation rates are compared, Ontario provides even more of a cost advantage, largely because of publicly funded health care. Ontario Wage Rates (Hourly) The following are average wages by general occupation for Ontario: National Occupational Classification (NOC) 2010 2011 2012 2013 2014 2015 2016 Management occupations $34.69 $35.31 $37.25 $38.27 $39.63 $39.83 $41.95 Business, finance and administrative occupations $21.19 $21.70 $22.36 $22.94 $23.48 $24.13 $25.80 Natural and applied sciences and related occupations $31.17 $32.12 $33.11 $33.47 $34.36 $34.39 $35.78 Health occupations $26.26 $26.78 $27.16 $28.00 $28.26 $28.70 $29.25 Occupations in social science, education, government $32.22 $28.90 $29.58 $30.19 $30.96 $31.20 $31.34 service and religion Occupations in art, culture, recreation and sport $22.57 $22.98 $23.14 $23.70 $23.89 $25.83 $23.12 Sales and service occupations $15.16 $15.41 $15.79 $16.16 $16.40 $16.76 $16.42 Trades, transport and equipment operators and related $25.59 $22.36 $22.77 $23.39 $23.94 $24.49 $24.97 occupations Occupations unique to primary industry $19.60 $20.38 $21.27 $21.82 $22.62 $23.36 $22.77 Occupations unique to processing, manufacturing and $21.87 $19.11 $19.46 $19.62 $20.18 $20.69