According to KPMG’s recent Competition Alternatives study, Greater Montreal enjoys on average a 15% cost advantage against U.S. cities, with Toronto following as a close second (see Figure 1). It means of the 20 largest North American cities, Montreal is the most competitive in terms of cost, based on factors like labour, transportation, taxes, utility and facility costs, and 20 others.
Figure 1 – Operating cost competitiveness index for major North American cities. Source.
Doubling from 8% last year, the current operating cost advantage is partly due to the Canadian Dollar’s depreciation in comparison to USD. Another contributor is the collection of government incentives promoting sectors like R&D in Canada.
While 15% is an average cost advantage across multiple industries, some Canadian sectors enjoy even more advantageous boosts. For example the clinical trial management sector profits from a 31% advantage, followed closely by the video game industry, international finance services, and biomedical R&D.
The significant structural cost advantage, abundance of highly qualified labor (4 universities in Montreal), high quality of life, and amazing tax credits and grants make Montreal a natural location for technology development firms.
How R&D Partners can help
R&D Partners has helped numerous US, UK, French, and other international firms set up in Montreal. Contact Mike Lee for assistance or more information.