Why invest in Ontario?
Ontario is a province with a reputation for business excellence, both across Canada and around the world. It is recognized as the commercial heart of Canada, as many corporations have their headquarters here. Aside from these characteristics, why should Chinese companies invest in setting up business in Ontario, or invest in Ontario-based businesses?
Here are the “Top Ten” reasons to consider, which you might have picked up on while navigating the ICA website, or otherwise should be considered.
- A welcoming environment for FDI and international business
Ontario welcomes Foreign Direct Investment, foreign businesses, foreign cultures and immigration. Ontario was a top-three FDI territory in North America for 2013, with 123 projects trailing only New York State and California. On a per-capita basis, it ranked number one. Cities like the Greater Toronto Area, the Ottawa National Capital Region and regions including Waterloo’s Tech Triangle all rank highly in terms of innovation and recognition for being ideal places for business investment and FDI.
- Reputation as a good place to do business
Ontario’s high GDP, reputation as a good place to do business, and tax rates for business are recognized as top reasons why companies from around the world locate here. Companies like Cisco, Toyota, and Roche Bioscience have made significant investments in Ontario recently. All three are leading R&D spenders according to Forbes and industry analysts.
- Reputation for successful FDI projects and expansion
Over one third of FDI in Ontario is expansion (35.75 percent) of existing investors. This demonstrates investors are able to succeed in Ontario and are willing to invest further. The forecasted top two sources of FDI going forward to 2017 are the United States and China. China is expected at the highest rate compared to 2011.
- Diverse spectrum of industries with FDI expansion
Manufacturing is expanding at a rate of 50% according to FDI Markets intelligence from the Financial Times. Click the link in item three for further details.The top four industries where FDI is expanding, at a rate of 60% are:
- Pharma & Medical Devices
- Access to market, speed of product to market
Ontario has excellent access to the market for many industries via air, (Pearson International Airport, Hamilton Airport and several others) rail (CN Rail), roads into New York and Michigan via Niagara Falls and Windsor areas. Both the lucrative U.S. market and high-income Ontario market provide great opportunity for Ontario based business. Ontario has a great reputation of getting products from design to market stage quickly with quality.
- Quality of life
Many positive factors influence quality of life in Ontario, including accessible health care, highly ranked educational institutions, provincial parks, safe cities, multiculturism and low unemployment rates relative to many other regions.
- R&D Programs
Ontario has abundant programs for Research and Development tax rebates and grants for qualifying new businesses, Regional Innovation Centres, as part of the Ontario Centres of Excellence provide a strong portfolio of programs for new business. Ontario businesses are encouraged to consider a variety of traditional and alternative sources for funding, which opens opportunities for FDI.
- Lower Cost of doing business
In several industries, Ontario is recognized as a more affordable place to do business than several of its peer provinces, states, and cities around the world.
- Deep and broad talent pool of employees and students
Quality of post-secondary education, co-op and apprenticeship programs are recognized to be very high, and multicultural nature of the province provides a supportive infrastructure for doing business with foreign businesses.
- Supportive of green, clean and sustainable business practices
Ontario has leading programs in recycling, embracing renewable sources of energy, and for water treatment. Ontario’s Green Energy and Green Economy Act from 2009 ensures the province doesn’t just preach the benefits of eco-friendly operations, Ontario practices what it preaches.