Invest in the Greater Toronto Area

Transcription

1 Invest in the Greater Toronto Area ICT Industry Overview

2 Greater Toronto Marketing Alliance (GTMA): Who we are Mandate: To attract foreign direct investment into the Greater Toronto Area (GTA). 29 municipalities, 35+ private sector companies - all in one place. Public-private, non-profit corporation. Staff of five to facilitate investor s needs. 24-member board of directors. 35-member Honourary Board. The single point of contact for foreign companies that are establishing their business in the GTA. Provides economic, sectoral & community profile information. Coordinates meeting itineraries and visitation programs. Provides free & confidential advisory services.

3 To-date the Collaborative Efforts of the GTMA Partners Have Helped 113 Foreign Companies Start Operations in the GTA New Investments Have Resulted In: Over 4,640 new direct jobs. Approximately 2 million sq. ft. of occupied office and manufacturing space Over $6 million annually in property taxes Over $440 million annually to GTA s GDP. Giving a boost to GTA sectors: Business Services / Energy / Finance / HR / ICT / Agri-Food / Life Science / Digital Media / Advanced Manufacturing / Retail / Warehouse / Packaging to name a few. *Based on estimates given by the City of Toronto (2010): $3/sq ft and $95,000/employee

4 The Greater Toronto Area (GTA) is the largest metropolitan area in Canada About the GTA GTA Quick Facts Area of 2,700 sq miles (7,000 sq km) 20% of Canada s GDP. Population of 6.1 million (9.2 mill in 2036) 58% holds post-secondary education. 50% born outside of Canada. 40% of Canada s business headquarters and 14% of Canada s businesses. Within 90 mins of 135 million people. Access to Great Lakes 95% of North America s fresh surface water.

5 Economic Engine of Canada: Growing Market About the GTA Toronto, 2004 The GTA is projected to be the fastest growing region of Ontario. The population of the GTA is forecasted to increase: From 6.1 million to 9.2 million by This will account for almost two-thirds of Ontario s net population growth. Toronto, ,211 High-rise buildings Toronto, 2023 Source: Scott Dickson, Creative Director

6 Diverse economy offers compelling landscape About the GTA The GTA s strong and diverse economy are largely intertwined with one another. GTA Industry North America Ranking Food & Beverage Automotive & Adv. Man. Financial Services ICT Film & Media Design Life Science 2 nd 2 nd 2 nd 2 nd 3 rd 3 rd 3 rd GTA Key Players A diverse economy is important because it will increase collaboration and competitiveness and lower risk. The GTA s unique strength in diverse sectors differentiates itself from most other major North American cities.

7 Cisco plans to create 1,700 jobs in Ontario ICT Industry Profile Cisco will invest $4 billion for a major expansion of its global research & development facilities. This is the largest job-creating announcement in the history of the province s tech sector. The Ontario Government will deliver up to $220 million in support of this initiative. Cisco chose Ontario because of our strong universities, competitive tax rates, a stable economy and loyal employees.

8 Multinational ICT Firms in the GTA ICT Industry Profile Location of choice for foreign ICT companies. Rank (2012) Company 1 IBM 2 HP 3 Cisco 4 Microsoft 5 Oracle 6 Xerox 7 Honeywell 8 Wipro 9 SAP Top 25 ICT Multinational Companies Operating in Canada All of the top 9 ICT Multi- National s are based in the GTA. 19 of the top 25 ICT Multi- National s operating in Canada are located in the GTA. SOURCE: Branham 300, 2013 Edition

9 IT Centre of Canada ICT Industry Profile The GTA employs around one-third of Canada s ICT labour force. Located in the region are two of the best schools for engineering and ICT-related studies in the world, the University of Toronto (UofT), ranked 14th and the University of Waterloo (UW) ranked 39th. They attract some of the brightest students from Canada and around the world.

10 North America s 3 rd Largest ICT Cluster ICT Industry Profile GTA s ICT companies report combined revenue of over $52 billion The sector is dominated by small firms (under 100 employees). Nearly 83% have fewer than 10 employees and nearly 98% have fewer than 100 employees. 39.6% of the Top 250 Canadian ICT Companies are headquartered in Toronto.

11 Testimonial - IBM ICT Industry Profile IBM, MARKHAM, GTA IBM Canada increased its R&D expenditure from $397 million in 2008 to $569 million in Its micro-electronics branch, which operates entirely in the GTA, generates almost $2 billion annually in export revenue. We re very fortunate to be headquartered in Markham. We ve been around for a long time, and have seen a lot of growth in Canada the GTA in particular. The GTA has all the ingredients for why you would invest somewhere great diversity base, great access to skills and innovation it s the hub of commerce here in Canada. Pat Horgan, VP of Manufacturing, Development & Operations, IBM, Canada SOURCE: VANTAGE Greater Toronto, ICT Issue

12 The World Economic Forum rated Canada s banking system as the soundest in the world for five years in a row Reasons to Invest in the GTA Toronto ranks 3 rd in City with lowest risk in the world to recruit, employ, and relocate employees. (Aon Consulting Global Research Centre, 2013) Canada s financial system is mature, sophisticated, and wellmanaged. Financial stability is underpinned by sound macroeconomic policies and strong, prudential regulation and supervision. The five large banking groups that form the core of the system are conservatively managed and highly profitable. The GTA is home to: 10 domestic banks and 39 foreign bank subsidiaries and branches. Headquarter of 89% of the foreign banks operating in Canada: American Express, Citco, Goldman Sachs, ICICI Bank, ING Direct, Northern Trust, UBS and many others. The Toronto Stock Exchange, ranked 8th largest in the world based on domestic market equity capitalization, and the world leader in mining industry financing

13 Location for 40% of Canada s headquarters Reasons to Invest in the GTA Located within an 800 kilometre (500-mile) radius of 139 million customers. Located within 90 minutes of: New York Chicago Boston Washington Toronto s proximity to these markets makes the region an ideal place to headquarter North American operations. The headquarters of 37 companies with over $600M in annual revenue are located in the GTA.

14 With the lowest Net-Debt-to-GDP ratio in the G7, Canada s corporate taxes will remain competitive. Reasons to Invest in the GTA According to the 2013 PwC Report, Canada has 8 th best tax system in the World Provincial (Ontario) 12% 11.5% 11.5% 11.5% 11.5% Federal 18% 16.5% 15% 15% 15% Total 30% 28% 26.5% 26.5% 26.5% SOURCE: [1] 2012 KPMG Competitive Alternatives [2] Ontario & Canadian Budgets Percent Combined Federal-Ontario General Corporate Income Tax OECD Average Ontario G20 Average G8 Average US Average SOURCE: Ontario Ministry of Finance 2013

15 World Class Education GTA Universities/Colleges Reasons to Invest in the GTA Ontario Universities/Colleges Most educated workforce in the G8 64% of the Ontario labour force aged holds a post-secondary degree or equivalent. Universities/Colleges located in the GTA University of Ontario Institute of Technology Ontario College of Art & Design Ryerson University University of Toronto York University McMaster University Queen s University Trent University Centennial College Durham College George Brown College Humber College Seneca College Sheridan College In addition, 14 Universities & 18 Colleges are located within 90 minutes drive from the GTA

16 35% of all R&D conducted in Canada takes place in the GTA Reasons to Invest in the GTA GTA Leaders of Innovation Atomic Energy of Canada Bell Canada Enterprise Inc. Ericsson Canada Inc. GlaxoSmithKline Canada Hoffman La Roche IBM Canada Ltd. Magna International MDS Inc. Ontario Power Generation Inc. Open Text Corporation Rogers Communications Inc. Sanofi-Pasteur Search Engine People TELUS Corporation 360 Incentives After-Tax Cost of $100 R&D Expenditure, Small and Medium Sized Manufacturers, 2013 Gross expenditure Actual after-tax expenditure Note: data as of June R&D expenditure (general) R&D expenditure (at eligible Ontario research institutes) $ $ $50.54 $39.31 Sources: Ontario Ministry of Finance and Canada Revenue Agency

17 Extensive and superior infrastructure Reasons to Invest in the GTA Toronto Pearson International Airport is Canada s busiest airport, processing over 45% of Canada s air cargo. Pearson offers non-stop and same-plane service via 75 carriers to 180 destinations worldwide. Halton Region is undertaking the largest infrastructure program in the region, estimated at $1.44 billion over the next 3 years to support water, wastewater, and transportation system. The GTA placed 2 nd in transportation and infrastructure among 27 global cities. Public Transportation GO Transit, Toronto Transit Commission (TTC), Brampton Transit, Burlington Transit, Durham Region Transit, MiWay (Mississauga Transit), Oakville Transit, Milton Transit, York Region Transit and VIVA Highway system Extensive highway system connects the GTA to the North American market (400 series highways: 401, 403, 400, 404, 410, 407 ETR, and QEW). The Union Pearson Express (UP Express) is an airport rail link service that will run between Canada's two busiest transportation hubs: Union Station in Downtown Toronto, and Toronto Pearson International Airport in Mississauga. The project, estimated to cost C$456 million is to be completed in time for the 2015 Pan American Games.

18 A Multicultural Population stimulates a welcoming and rich business environment Reasons to Invest in the GTA One of the world s most international cities; 50% of population born outside of Canada. Over 163 languages and dialects are spoken in the GTA In 2011, three-quarters (74.5%) of Canada's foreign-born population were able to conduct a conversation in more than one language Chinese The GTA continues to be a national hub for new immigrants into Canada and is one of the major contributors to GTA s economic strength relative to other Canadian cities. Dutch Ukrainian German Vietnamese Other Greek Polish Arabic Spanish Italian Punjabi Portugese Tagalog Canada is home to 6.8 million foreign-born residents, or 20.6 per cent of the population. Almost one in five people living in Canada is a visible minority. (Statistics Canada, 2011) We get the best and the brightest young people from around the world. We have an incredible opportunity for innovation, for entrepreneurial activities, for learning from each other, for having a diverse labor force. (Toronto s former Mayor, David Miller, 2012)

19 Premier Region for Quality of Life Reasons to Invest in the GTA No. 2 in places where people would want to live in the world Reputation Institute, 2013 The GTA offers its residents the best of both worlds the relaxed pace of a small community or the hustle and bustle of a large multicultural centre. Ranked 2 nd in health, safety, security Ranked 3 rd for most promising city of opportunity among 27 global cities (Cities of Opportunities PWC, 2012)

20 Let us help you succeed in the Greater Toronto Area! Is the single point of contact for the GTA Provides economic, sectoral & community profile information Presents the competitive business case for investing in the GTA Provides introductions to public sector officials and private companies Coordinates meeting itineraries and visitation programs Free & confidential advisory services in: corporate legal / accounting & taxation / immigration matters / staffing & recruitment / financial services / real estate visit us at: