Competitive Analysis

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SASKATCHEWAN/BEAR HILLS RURAL DEVELOPMENT CORPORATION AREA

Competitive operating costs

Abundant natural resources and rich land base

Large capital investment potential

Competitive infrastructure to support growth

Strong work ethic and service attitude

Affordable housing costs

Excellent education infrastructure

Clean environment

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COST COMPARISON ASSESSMENT/COST COMPETITIVE ASSESSMENT

Cities

Canadian-Sask
Regina/Saskatoon/Yorkton

Canadian
Calgary, Alberta/Winnipeg, Manitoba/Moncton, New Brunswick

United States
Des Moines, Iowa/Minneapolis, Minnesota/Sioux Falls, South Dakota/Billings, Montana

Sectors

Manufacturing, Agricultural Biotechnology, Agricultural Equipment, Environmental Systems, Pharmaceuticals, Medical Devices, Software, Telecommunications Equipment

Variables

Facility Investment, Labour, Telecommunications, Transportation, Taxation, Exchange Rates, Depreciation

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US COST COMPARISON

Overall cost of doing business is lower in Saskatchewan than in cities of the Central Plains.
Variables affected by site selection are more than 12% less than in the US.
This equates to a 4% overall cost advantage across all sectors.
Combined lower employer and labour costs produce real benefits for Saskatchewan relative to the US.
Industrial land Costs in Saskatchewan Communities tend to be lower than in other cities examined.

	90	95	100	105	110	115	120	125	130
Yorkton	xxxxx	xxx
Saskatoon	xxxxx	xxxxx	x
Regina	xxxxx	xxxxx	x
Sioux Falls	xxxxx	xxxxx	xxxxx	xxxx
Billings	xxxxx	xxxxx	xxxxx	xxxxx	xx
Des Moines	xxxxx	xxxxx	xxxxx	xxxxx	xxxxx	x
Minneapolis	xxxxx	xxxxx	xxxxx	xxxxx	xxxxx	xxxxx	xxxxx	x

Cost based on 10 consolidated sectors

Construction costs are lower in Saskatchewan compared to all sites.
Electricity costs in Saskatchewan are lower than US centres examined.
In comparative cost ranking, Saskatchewan centres ranked better than all other centers.
Start-up costs including land and construction show a 29% advantage compared to Alberta (Calgary), and an 18% advantage compared to Manitoba (Winnipeg).
Saskatchewan economic opportunities are based on future growth of pork-related industries, biotechnology and agricultural equipment and manufacturing.

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RELATIVE IMPORTANCE OF KEY LOCATION SENSITIVE COSTS

57%	Labor
12%	Taxes
12%	Depreciation
10%	Transport
6%	Interest
2%	Electricity
1%	Telecommunications

Overall Saskatchewan has a clear competitive advantage when compared to US cities examined. The same is true with Toronto and Vancouver, however, to a lesser degree, with its prairie neighbours. Different tax structures create environments that allow specific sector benefits in different jurisdictions.

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