KPMG’s Competitive Alternatives Study 2014
Montréal, March 27, 2014 – Ms. Dominique Anglade, President and CEO of Montréal International (MI), welcomes the latest ranking by KPMG placing Greater Montréal in the top spot among the most competitive metropolises in North America (excluding Mexico) for operating costs.
The Competitive Alternatives 2014 study shows that the Montréal metropolitan region has operating costs, for all sectors, that are 8.0% lower than the United States, beating out 33 other Canadian and U.S. cities with populations of at least two million people.
“Greater Montréal’s cost advantage jumped from 5.7% in 2012, to 8.0% in 2014, which is largely due to a weaker Canadian dollar. We definitely need to leverage this advantage, as competitive operating costs are one of the key factors considered by foreign investors looking for a site, in addition to access to the market and workforce availability,” explained Dominique Anglade.
This cost advantage varies significantly from sector to sector: “The Montréal metropolitan region stands out with specific tax credits, especially for the video game industry (23.5%), software design (16.0%), R&D (18.6%) and international financial services (20.6%). This notable advantage enhances Greater Montréal’s attractiveness for strategic activity sectors in its knowledge-intensive industries,” added Ms. Anglade.
“We are seeing increased convergence of operating costs between industrialized nations, thus incentives have become a crucial decision factor for businesses considering where to set up,” concluded Ms. Anglade.
The Competitive Alternatives study provides a detailed comparative analysis to help organizations decide where to locate their operations. The study compares 26 cost factors over a 10-year period for 131 cities in 10 countries. A country’s cost advantage is based on the average costs in the largest cities in each country.