Over the past two years, the KPMG Consulting Group, a British Columbia-based company, has been conducting a cost-comparison study of twenty-three major Canadian and American cities. The conclusion of the first study and all since then is that all Canadian cities were less expensive than all American cities. Even Canada's most expensive locations (Toronto and Vancouver) were more cost-effective than the least expensive US city (Hampton, Virginia).
In the latest study, conducted in July of this year, Charlottetown, Prince Edward Island was ranked as the lowest cost of any city in the study in six of the seven industries and in the overall ranking. In the overall average, the gap between Charlottetown and the second place city was the largest cost gap in the top twelve cities.
"The government of Prince Edward Island is proud of the proactive approach that we have taken in developing an economic climate that is attractive to many different sectors," said Catherine Callbeck, Premier of Prince Edward Island. "Our government has made economic development a priority and has achieved that goal by developing targeted strategies in key sectors."
The Canadian cities were chosen with one from each province, three from Ontario, two from Quebec, and the major centres in each area (mostly capital cities). The industries studied were auto parts, environmental systems, frozen foods, medical devices, pharmaceuticals, software production and telecommunications equipment.
"This study is independent confirmation that PEI's lowest cost environment combined with a highly productive work force and the most business sensitive tax policy ensures the highest rates of return for investors," said Robert Morrissey, Minister of Economic Development and Tourism. "Although the province has created an environment that makes it easier for private sector to do business, members of the business community have been instrumental in developing the industries."
The federal Department of Foreign Affairs and International Trade initiated the study to make the case that Canada was a lower cost location for investments in certain industries than cities in the US. The difference between this study and earlier versions is the comparison was based on specific cities in both countries, as well as model companies in specific industries in each city.