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).

Comparative CIT rate infographic

Low Taxes
Ontario has a combined provincial (11.5%) and federal (15%) corporate income tax rate of 26.5%, making Ontario's combined general federal-provincial CIT rate lower than the average of G20 countries and lower than the average federal plus state CIT rate in the United States.

Development Costs comparison infographic

Low Site and Building Costs
Thunder Bay offers extremely competitive land costs, construction costs, and zero development charges, making it an ideal location for expansion and new construction. Thunder Bay has a large amount of land zoned for new development offering commercial, industrial, and aviation space.

Comparative healthcare costs infographic

Low Healthcare Costs
One area in which Canadian companies are much more competitive than their US counterparts is healthcare. Ontario has 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.


Business Infographic


The Thunder Bay Advantage

As the regional hub for health services in Northwestern Ontario, Thunder Bay serves a catchment population of 250,000 in a geographical area the size of France, and is a leading destination for clinical, teaching, research and health system leadership. Recent investment and innovations support a rapidly growing medical device and remote healthcare sectors 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.

Contact(s)

Video Resources

Downloadable Files

Medical Devices Report

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Health Sciences Report

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Accelerating Excellence in Medical Research and Innovation in Ontario's Northwest

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