Cost Advantages

Provincial and Federal Cost Advantages

Thunder Bay benefits from being part of Ontario as well as Canada. Canada is an extremely business friendly country for business. It 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.

Top 3 Cost Competitive Countries infographic

Ontario offers competitive corporate tax rates, which are lower than the average federal-state CIT rate in the US. (Source: Ontario Ministry of Finance, 2017 Budget). Ontario also features a universal healthcare system, which means that average employer health costs per year for companies based in Ontario are 1/3 of the cost of the US average. (Source: MMK Consulting, 2016).

The Thunder Bay Advantage

Thunder Bay is the largest community on Lake Superior. Recent investment and innovations support a rapidly growing knowledge sector where health sciences, and ICT businesses can flourish.  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 services (such as international financial services and shared services centres). (Source: KPMG Competitive Alternatives 2016). Thunder Bay businesses benefit from these lower corporate service costs because of lower average wages for administrative and customer service level employees as well as financial professionals.

The KPMG 2016 Competitive Alternatives highlighted Thunder Bay for providing significant cost advantages for:

  • Video game production

  • Shared Service Centres

  • International Financial Services

  • Biomedical R&D

  • Electronic Systems Development

  • Software

Source: KPMG Competitive Alternatives 2016

Thunder Bay has zero development charges, affordable cost of land and buildings, and competitive construction costs, giving businesses superior opportunities for development.

Thunder Bay businesses benefit from Thunder Bay Hydro being the third-lowest cost electrical distributor in Ontario. Thunder Bay is well serviced by TBAYTEL as well as national communications providers enabling worldwide connection at an affordable rate.

Thunder Bay enjoys a central location within Canada, close proximity to the US and a well developed transportation network, allowing companies to maximize the use of air, rail, sea, and road transportation. This thriving city is surrounded by breathtaking landscapes, features a superior quality of life and a  lower cost of living for its residents.

For additional information please contact the Development Officer at (807) 625-3960 or visit our Contact Us page.

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