Lower Costs of Doing Business

Waterloo Region Most Cost Effective City in Canada To Do Business The Waterloo Region was named (2005/2006) the “Most Cost Effective” city in fDi (Foreign Direct Investment) magazine’s Canadian Cities & Provinces of the Future ranking. fDi is a publication of the UK-based Financial Times of London Group. The judges found Waterloo to be the most cost effective city in which to do business in Canada. The Waterloo Region ranked 2nd for “Best IT and Telecommunications.” The Waterloo Region ranked 3rd for “Best Transport.” Companies that locate in the area benefit from low real estate costs, reasonable wages and a stable work-force. Companies can therefore deploy their capital resources more efficiently, allowing them to achieve more significant milestones before having to raise additional capital. Investors benefit by getting more mileage out of each dollar they invest. Waterloo Region Cost Effective for Foreign Direct Investment fDi magazine: “FDI Canadian Cities & Provinces of the Future 2007”, recognized the Waterloo Region in the "Top 10 Small Cities of the Future" category (5th). The "Small Cities" category covers communities of 100,000 to 500,000 people. The Waterloo Region was recognized in the following areas: 2nd for "Best Human Resources" ·2nd for "Quality of Life" 4th for "Best Infrastructure" 5th for "Best Development and Investment Promotion"

2006 KPMG Competitive Alternatives Study Waterloo Region   Operation Index Rating (U.S. = 100) % Cost Advantage Over U.S. Manufacturing:     Aircraft Parts 93.3 6.7 Food Processing 95 5.0 Auto Parts 94.2 5.8 Specialty Chemicals 95.9 4.1 Electronics Assembly 97.2 2.8 Medical Devices Mfg. 96.5 3.5 Metal Machining 93.9 6.1 Pharmaceutical Products 96.1 3.9 Plastic Products 94.1 5.9 Precision Components 91.3 8.7 Telecom Equipment 97.8 2.2 Research & Development 95 5 Biomedical R&D 89.4 10.6

Canada Ranked Most Competitive G7 Nation

Canada is ranked the most cost competitive G7 nation by the Competitive Alternatives: KPMG’s Guide to International Business Costs study (March, 2008). The study of leading industrial countries compares after-tax costs of starting up and operating a business for a period of 10 years. It covers factors such as labour costs, taxes, transportation costs, energy costs and facility costs.

• Canada leads the G7 countries in terms of low business costs, with a cost advantage of 5.5 percent over the United States.
• Canadian cities rank better than many of their international counterparts. Costs are lower in Canadian cities compared to U.S. cities in all applicable North American region and population categories.
• Canada is cost advantaged in R&D and greatest in software and business process outsourcing operations.
• Waterloo Region fares well against other major Canadian urban areas, ahead of Toronto, Ottawa, Calgary and Vancouver.
• Waterloo Region ranks as the 5th lowest cost cities in the northeastern region of North America (98.2). Waterloo Region is competitive versus Tech Hubs (San Jose = 110.0, San Diego = 104.6, Vancouver = 104.2). Overall, total business costs in the Waterloo Region are just under the U.S. average.

Cost Advantage Even Better for Research & Development Operations

Striving to be one of the world’s most important locations for technological enhancement and development, Canada and Ontario offer research & development (R&D) incentives that provide superior cost advantages. The range of eligible expenses in Canada is more extensive than in the US, including 100% of R&D expenses, carry-forward amounts, bonusing for incremental R&D, and cash refunds in some cases. In addition, Canada has adopted a broader definition of what qualifies for R&D tax credits.