reasons why Canada s Toronto area is home to the world s top engineering firms How your organization can benefit from investment in this region.
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1 reasons why Canada s Toronto area is home to the world s top engineering firms How your organization can benefit from investment in this region.
2 Halton Region: Your destination of choice This paper outlines why the Greater Toronto Area (GTA), specifically Halton Region located to the west of Toronto, is a highly sought-after location for companies in the engineering sector. It also explains why the region should be the destination of choice for your next investment. C a n a d a Ontario Ontario s Greater Toronto Area Halton is located 40 minutes west of Toronto and 1 hour from the U.S. border. Halton Hamilton 40 min. 1 hour Toronto Lake Ontario Niagara USA Halton provides quick access to Toronto s Pearson International Airport, which, after New York s JFK, handles the most international passengers in North America. The Greater Toronto Area: An Engineering Hub 2
3 Executive summary Construction and engineering industries are thriving in Canada. Fuelled by a growing number of multi-billion dollar procurement opportunities, Canada s construction and engineering industries are contributing more than $72 billion to the Canadian economy every year. As Canada continues to stake its claim as an engineering powerhouse, the Greater Toronto Area (GTA) has become a prime location for major multinational companies within the sector, such as Kiewit, Siemens, SNC Lavalin, ABB, Amec Foster Wheeler, and Hatch Mott MacDonald. Halton Region has been able to capitalize on the engineering industry s growth and advancement nationally, and now hosts one of the country s most prominent multidisciplinary hubs for consulting engineering and construction management. Firms located within the GTA prosper due to a growing number of significant government procurement infrastructure opportunities and the region s ongoing population growth. Companies with an established presence in Halton ABB Amec Foster Wheeler Hatch Hatch Mott MacDonald Kiewit Siemens SNC Lavalin Nuclear Ontario, Canada Locations of engineering firms with headquarters in Ontario Halton The Greater Toronto Area: An Engineering Hub 3
4 There are five reasons for the success of organizations who have chosen Halton Region as the location to establish their headquarters. 1 2 Affordability Canada is the most affordable industrialized nation to do business in and operating costs have consistently decreased in recent years. Access to Canada s most highly-educated talent pool The region is one of Canada s most highly educated communities and has the largest concentration of engineering professionals in Canada. Find out more about the GTA s thriving engineering sector and how your business can take advantage of billions in infrastructure opportunities Opportunities for procurement Canada is a global leader in infrastructure investment. Participation in Ontario s largest engineering cluster Halton s engineering cluster benefits from collaboration with the region s full spectrum of industry customers, partners and suppliers. Prospects for private-public partnerships Canada has positioned itself as the North American leader in Private-Public Partnerships (P3s), much of which is centred in the GTA. The Greater Toronto Area: An Engineering Hub 4
5 Reason 1: Affordability With business costs that are 7.2% lower than in the U.S., Canada is the most affordable industrialized nation in which to do business. Furthermore, operating costs have consistently decreased in recent years, enabling the country to remain competitive in the modern global economy. In addition to lower general business expenses, Canada is also a leader in research and development (R&D) costcompetitiveness, with related costs that are 15.8% lower than the United States (U.S.) Canada ranks second in Bloomberg s 2014 ratings of the most attractive countries to conduct business in, ahead of the U.S., which placed third. At 26.5%, Ontario s corporate income tax rate is lower than the G8 average of 30% and the U.S. average of 39.2%. Ontario s R&D incentives are among the most generous for industrialized countries. The provincial tax program can reduce the after-tax cost of every $100 spent in R&D to between $37 and $61 when combined with federal tax incentives. Under the Ontario Innovation Tax Credit, for instance, corporations can claim a 10% refundable tax credit for qualified expenditures on scientific research and experimental development. The overall costs of doing business within the GTA are lower compared to major North American cities. Combined Federal-Ontario general corporate income tax (CIT) rate Ontario 26.5% G20 Average 28.2% G8 Average 30% USA Average 39.2% Source: Invest in Ontario Business Cost Index CANADA 92.8 United Kingdom 94.6 Australia 99.3 USA Germany Source: KPMG Competitive Alternatives, 2014 edition (*BASE=100=USA) Overall Sector Cost Index Toronto vs. select U.S. and international cities Toronto 93.6 Vancouver 94.6 Atlanta 94.7 Miami 97.0 Chicago 99.1 Houston 98.0 New York City San Francisco Source: KPMG Competitive Alternatives, 2014 edition. The Greater Toronto Area: An Engineering Hub 5
6 Reason 2: Access to a highly-educated talent pool Canada has the highest level of tertiary education attainment in the world, and companies draw from the nation s deep pool of talent in fields ranging from science, technology, engineering and mathematics (STEM) to business. This high quality of labour is coupled with the second-lowest labour cost per employee among the G8 countries. Education Businesses in Halton have access to a highlyeducated pool of prospective employees. Halton has been able to attract highly-skilled individuals that are drawn by the region s safe communities and high standards of living. The region has the distinction of being one of Canada s most highly educated communities, where 74% of the region s residents have postsecondary degrees, compared to the Canadian figure of 64%. Total labor cost comparison* Service and manufacturing sectors Average per employee ($USD) UK 82,930 Canada 89,038 Italy 92,287 France 93,450 Japan 94,067 USA 102,249 Germany 104,440 *Includes salary and other employee benefits Source: KPMG Competitive Alternatives, 2014 edition Halton has one of the highest postsecondary education attainment rates in Canada. The Greater Toronto Area: An Engineering Hub 6
7 Engineering talent The GTA as a whole has the largest concentration of engineering professionals in Canada, with 29% of those with credentials in the field residing within the area. Businesses in Halton have direct access to future talent. Sheridan College and McMaster University s DeGroote School of Business both have campuses located in Halton. Additionally, 20 leading educational institutions are located within an hour s drive. Halton is centrally located in an education triangle of Canada s largest universities and colleges. Each year, nearly 5,000 students from surrounding universities receive degrees (bachelors, master s, and doctorates) in engineering, in addition to a significant number of graduates in the disciplines of computer science, mathematics and physical sciences. HALTON TORONTO Halton s proximity to leading Canadian academic institutions has enabled it s companies to establish and build on bonds with universities and colleges in order to foster collaboration. Siemens Canada, for instance, works closely with McMaster University, University of Waterloo, Mohawk College, Seneca College and Sheridan College to advance innovation, and provide support and training for students. HAMILTON LAKE ONTARIO NIAGARA USA The Greater Toronto Area: An Engineering Hub 7
8 Reason 3: Opportunities for procurement With an expected annual growth in infrastructure of 3.1% through 2025, Canada has emerged and established itself as a leader in infrastructure development. The Ontario provincial government s recent announcement of a 10-year $130 billion infrastructure plan is a further testament to the country s status as a global leader in infrastructure investment. This commitment will ensure that infrastructure development and upgrading will continue to be a key source of procurement opportunities in the future. Major infrastructure projects currently underway in Ontario PROJECT INVESTMENT VALUE ($ billions) Toronto Eglinton Crosstown LRT $5.3 Scarborough Subway Extension $3.3 Spadina Subway Extension $2.63 Lower Mattagami Hydroelectric Complex $2.6 Darlington Generation Station $2.5 Refurb-Definition Phase Ottawa Confederation Line $2.13 Gordie Howe International Bridge - Windsor - Detroit $2.1 New Oakville Hospital* $2.0 Hurontario-Main LRT - Mississauga $1.6 York Viva Bus Rapid Transit $1.4 The Ontario government is investing $130 billion in infrastructure. Port Hope Area Initiative $1.28 Finch West LRT $1.0 Highway 407 East - Phase 1 $1.0 *The value of the contract with Hospital Infrastructure Partners in 2010 dollars was approximately $2 billion. Over the 30-year life of the contract, when adjustments for anticipated inflation are made, the contract value is $2.7 billion (nominal). The contract cost covers the design and construction of the facility, building maintenance, life-cycle repair and renewal, as well as project financing. Sources: Infrastructure Ontario & The Top 100 Projects The Greater Toronto Area: An Engineering Hub 8
9 Consulting engineering in Canada is a $21.4 billion a year industry, ranking fourth among the world s largest exporters of engineering services. The industry has experienced significant sales and employment growth nationally, which has been fuelled by the growing number of multi-billion dollar private, public, and P3 infrastructure projects. Halton has been able to capitalize on this success, emerging as a preferred location for engineering firms. Construction and engineering firms in Ontario have benefited from major infrastructure projects that have been undertaken in recent years. Further procurement opportunities are in development with the announcement of the New Building Canada Plan, the largest and longest federal infrastructure plan in Canadian history. The initiative outlines a $53-billion infrastructure outlay across the country to be spread over the next 10 years. Engineering firms in Halton have cited the benefits of the region s central location, which provides access to the U.S. border and a market of over 9.5 million people within a one-hour drive. Renowned global engineering firms such as Siemens, SNC Lavalin, ABB, Amec Foster Wheeler, and Hatch operate offices in Halton. The region has become a prime location for both global engineering services firms and engineering intensive manufacturers. Consulting engineering in Canada ranks fourth among the world s largest exporters of engineering services. The Greater Toronto Area: An Engineering Hub 9
10 Reason 4: Participation in Ontario s largest engineering cluster In addition to hosting the county s most prominent multi-disciplinary hubs for consulting engineering and construction management, Halton region is part of the southern Ontario engineering cluster, which is home to the over 200 engineering firms headquarters, including: Competition sparks innovation. Halton s engineering cluster benefits from collaboration with the region s full spectrum of industry customers, partners and suppliers. Brookfield Infrastructure Partners Hatch Amec Foster Wheeler Golder Associates Exp Global Inc. CRA Holdings Inc. Conestoga-Rovers & Associates Limited IBI Group Inc. MMM Group Tetra Tech WEI Inc. AECOM CH2M Hill Arup Companies in Ontario have easy access to the $19-trillion North American market, the largest free trade region in the world. Additionally, firms are able to capitalize on a robust and diversified provincial economy that is expected to keep growing in the forseable future. Ontario s economic outlook Projected real GDP growth 2.5% 2.6% 2.1% (annual average) Source: Ontario Ministry of Finance planning projection The Greater Toronto Area: An Engineering Hub 10
11 Reason 5: Prospects for public-private partnerships Canada has positioned itself as the North American leader in public-private partnerships (P3s), much of which are centred in the Greater Toronto Area. As the Government of Ontario and other provincial governments across Canada embark on infrastructure projects, P3s are becoming a preferred means of project execution. Since 2006, there has been over $42 billion in AFP infrastructure projects in Ontario. Slated to be open to the public in December 2015, the $2.7 billion Oakville Trafalgar Memorial Hospital is one of the largest AFP projects currently under construction in Canada. Built on a 50-acre greenfield parcel of land, the 1.6 million square-foot facility is one of 13 such projects currently underway in Ontario that are valued at $1 billion or more. Since 2006, there has been over $42 billion in AFP infrastructure projects in Ontario. AFP is the equivalent model in Ontario of P3s across Canada and in other countries. The Greater Toronto Area: An Engineering Hub 11
12 Case Study: SIEMENS Siemens recently consolidated its Canadian business operations in a new central location in Halton. The company, which has 39 offices and 12 manufacturing facilities across Canada, was drawn to: the availability of easy access to customers, partners, and market opportunities; and corporate exposure along the busy, multilane Queen Elizabeth Way (QEW) highway. Siemens Canada believes in building strong ties with educational institutions in order to enhance innovation and R&D. The company s Halton location is less than an hour s drive away from 20 universities and colleges, a level of access that is unequalled in Canada. to grow Canadian and European business ties as a result of the new Canada-European Union Comprehensive Trade and Economic Agreement (CETA). CETA will eliminate barriers to trade and facilitate the movement of executives and professionals, Mr. Hardt says, pointing to Canada as the preferred base for European companies doing business in North America. The new Canada- European Union Comprehensive Trade and Economic Agreement will eliminate barriers to trade and facilitate the movement of executives and professionals Siemens Canada CEO Robert Hardt This multinational company, which posted Canadian sales of $2.7 billion last year (ending September 30), is building on its 100 year presence in Canada. Siemens Canada CEO, Robert Hardt, sees immediate opportunities The Greater Toronto Area: An Engineering Hub 12
13 FREE WEBINAR: Engineering Success in Canada s Greater Toronto Area Tuesday, September 15, :00 1:45 p.m. EDT Register now to learn how your engineering firm can profit from: Canada s low business costs Government procurement infrastructure opportunities Access to the largest concentration of engineering professionals in Canada Featured speakers Hatch Mott MacDonald will speak about their success in the region and discuss opportunities to access clients, talent, and the pipeline of infrastructure projects coming forward in the Greater Toronto Area. Halton Healthcare will present a case study on the new state-of-the art $2.7 billion Oakville Trafalgar Memorial Hospital one of Ontario s largest P3 capital infrastructure projects in recent years.
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