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GREATER MONTRÉALTHE POWER
TO MAKE YOU SUCCEEDAttrActiveness FActors
2O13
–2O1
4
C A N A D A
U N I T E D - S T A T E S
MONTRÉAL
YUL
NEW YORK JFK
LOS ANGELESLAX
TORONTO YYZ
CHICAGO ORD
BOSTON BOS
ottAWA
Detroit
DALLAs
MiAMi
HoUston
AtLAntA
PHiLADeLPHiA
MinneAPoLis
vAncoUver
sAn FrAncisco
sAn DieGo
PHoeniX
seAttLe
cALGArY
cLeveLAnD
WAsHinGton
FLiGHt tiMe FroM MontréAL
NORTH AMERICABos Boston 1H2oYYZ toronto 1H2o JFK NewYork 1H53orD chicago 2H21LAX Los Angeles 6H28LHR London 6H4OCDG Paris 6H49
N o r t h S h o r e
L A V A L
M O N T R É A L
S o u t h S h o r e
Port oF MontréAL
MontréAL-MirABeL internAtionAL AirPort
YMX
YULMontréAL-trUDeAU
internAtionAL AirPort
GREATER MONTRÉALterritorY ForMeD oF 82 MUniciPALities
to toronto
to neW YorK
l o n g u e u i l
YHUMontréAL sAint-HUBert
LonGUeUiL AirPort
FOR FOREIGN DIRECT INVESTMENT STRATEGY
IN NORTH AMERICAN FOR THE MOST COMPETITIVE OPERATING COSTS
OF THE POPULATION IS BILINGUAL
CLUSTERSOF EXCELLENCE
AMONG MAJOR NORTH AMERICAN METROPOLITAN AREAS
NDLOWESTTAX BURDEN
THE COMMERCIAL POWER
THE ECONOMIC POWER
THE FINANCIAL POWER
THE INDUSTRIAL POWER
THE POWER
OF HUMAN CAPITAL
THE POWER
TO ATTRACT THE BEST
THE POWER TO HELP YOU
NAFTA-ZONE CONSUMERS
INCLUDING TWO INTERNATIONAL AIRPORTS PLUS ONE OF THE BUSIEST MARITIME PORTS IN NORTH AMERICA
NEW GRADUATES EACH YEAR
IN HIGH-VALUESECTORS
STUNIVERSITYURBAN CENTRE
AIRPORTS
HIP CITIES
ONE OF THE WORLD’S
ST
MAJORMETROPOLITAN AREA
ST
RANKIN THE AMERICAS
P.3
P.28
P.37
P.7
P.14
P.21
P.41
WHY INVEST IN GREATER MONTRÉAL
l o n g u e u i l
TABLE OF CONTENTS
2
TAB
LE O
F C
ON
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S
O5 / ThE iNduSTriAL POwEr7 WorLD-cLAss cLUsters oF eXceLLence
Industrial clusters with rallying projects for an innovative economy 29
Exellence in Aerospace 30
Exellence in Audiovisual 31
Exellence in Finance 32
Exellence in Logistics and Transportation 33
Excellence in Life Sciences and Health Technologies 34
Excellence in Information and Communications Technologies (ICT) 35
Excellence in Cleantech 36
O6 / ThE POwEr TO ATTrACT ThE BESTeXcePtionAL QUALitY oF LiFe
A region brimming with advantages 38
A quality of life that is renowned over the world 40
O7 / ThE POwEr TO hELP YOu Discover what Montréal International can do for you 42
2012-2013 Greater Montréal major successes and Montréal International key achievements 44
APPENdixMethodology 46
O1 / ThE COmmErCiAL POwErDirect Access to tHe nortH AMericAn MArKet
Take advantage of the potential of North America 4
An accessible hub 6
O2 / ThE POwEr OF humAN CAPiTALA PooL oF HiGHLY QUALiFieD WorKers
An educated workforce 8
A growing job market 9
A culture of innovation 10
A synergy of skills 11
A welcoming climate 12
A multicultural metropolis 13
O3 / ThE ECONOmiC POwErtHe Most coMPetitive oPerAtinG costs in nortH AMericA
Low operating costs 15
Competitive salaries 17
Affordable rent 19
Low, stable energy costs 20
O4 / ThE FiNANCiAL POwErAttrActive tAX treAtMent AnD tAiLor-MADe incentives
Attractive tax treatment 22
Tailor-made incentives 23
THE COMMERCIAL POWER
Direct Access to tHe nortH AMericAn MArKet
incLUDinG tWo internAtionAL AirPorts PLUs one oF tHe BUsiest MAritiMe Ports in nortH AMericA
nAFtA-Zone consUMers
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A STrATEGiC ChOiCETAKE ADVANTAGE OF THE potential of north america . . .
A metropolitan region encompassing a population of 4 million located in Québec —Canada’s largest province
Direct access through the North American Free Trade Agreement (NAFTA)
A strategic geographical locationA 9O-minute flight from Boston and New York City Less than a one-hour drive to the U.S. border
GREATER MONTRÉALQUÉBECCANADA
4 million inhabitants2 million workers GDP (2007 $): $161 billion
NORTH AMERICA (NAFTA) 460 million inhabitants
35 million inhabitantsGDP (2007 $): $1,6 trillion1
8 million inhabitantsGDP (2007 $): $307 billion
46O miLLiON CONSumErS
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Ranked as the fourth most attractive country for foreign investment by the Global Opportunity Index—Attracting Foreign Investment published by the Milken Institute in 2013 and by the Foreign Direct Investment Confidence Index 2013
Canada is considered “the #1 place to do business in the G7” for the 2013-2017 forecast period, according to The Economist Intelligence Unit (February 2013) and Invest In Canada (2013)
Note: $ and ¢ signs refer to both U.S. and canadian currency. Since 2010, the canadian and U.S. dollars have been close to parity (plus or minus 5%). 1 Sources: conference Board of canada, 2012 and Statistics canada, 2013. 2 Sources: world Bank Group, 2012, and invest in canada, 2013.
The most stable banking system in the world
A strong entrepreneurial culture
Canada’s banking system is considered to be the safest in the G7, according to Global Finance
Magazine (April 2012) the soundest in the world, according to the
World Economic Forum (2011), for the fifth consecutive year
Canada ranks #1 among G7 for the lowest number of procedures and least days required to establish a new business2
The fourth-best foreign investment climate in the world
1ST IN THE G7FOR DOING BUSINESS
AND THE EXCELLENCE OF CANADA
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Montréal’s airports Montréal-Trudeau International Airport: 14 million passengers in 2012
Direct flights to 130 destinations Montréal-Mirabel International Airport (cargo) Montréal Saint-Hubert Longueuil Airport
AN ACCESSiBLE huB A DENSE, EFFICIENT TRANSPORTATION NETWORK
1 Sources: world economic Forum, 2012, and invest in canada, 2013.
Three airports, including two international airports
One of North America’s busiest ports
An intermodal transportation hub: air, sea, land and rail
efficient flow of goods across borders
An effective public transit system
Canada is ranked 1st out of all G7 countries and 9th out of 132 countries assessed for the efficiency of various factors relating to access to markets, border administration, transportation and communications infrastructure and business climate to determine the ease of flow of goods across the border and to their final destination1
Société de transport de Montréal (STM): the best public transit commission in North America in 2010 according to the American Public Transportation Association (APTA)
68 subway stations on 4 lines (a 71 km network)
51 commuter train stations on 5 lines
Port of Montréal Transportation links to 100 countries Eastern Canada’s leading
container port Annual traffic of 28.4 million tons
in 2012
THE POWER
OF HUMAN CAPITALA PooL oF HiGHLY
QUALiFieD WorKers
OF THE POPULATION IS BILINGUAL
NEW GRADUATES EACH YEAR
mOrE ThAN
0 100,000 200,000 300,000 400,000 500,000
MONTRÉAL
TORONTO
VANCOUVER
OTTAWA
CALGARY
434,000
University graduates 3
5 largest metropolitan areas in Canada, 2000-2010
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AN EduCATEd wOrKFOrCE A BREEDING GROUND FOR TALENT SUSTAINED BY A WORLD-CLASS ACADEMIC NETWORK
130,000 college students and 70,000 vocational students4
6 full-service universities
Concordia UniversityMcGill UniversityTÉLUQ (Télé-université)Université de MontréalUniversité de Sherbrooke-Campus de LongueuilUniversité du Québec à Montréal (UQAM)
2 business and public administration schools
École nationale d’administration publique (ENAP)HEC Montréal
3 engineering and scientific research institutions
École de technologie supérieure (ÉTS)École Polytechnique de MontréalInstitut national de la recherche scientifique (INRS)
QS Best Student Cities 2O12 ranks Montréal as the best student city in Canada, 2nd in North America and 1Oth in the world
Canada’s university capital
Vocational and technical programs designed to meet businesses’ needs
a dense and diversified network comprising 11 university institutions as well as numerous colleges and vocational training centres
Top metropolitan area in the country in terms of the number of university- level degrees awarded (undergraduate, graduate and doctoral)1
170,000 university students, including 20,000 foreign students2
1 Source: Statistics canada, 2013. 2 Source: ministère de l’Éducation, du loisir et du Sport du Québec, 2012. 3 Source: Statistics canada, 2013. 4 Source: ministère de l’Éducation, du loisir et du Sport du Québec, 2012. 5 Sources: Bureau of labor Statistics (BlS), 2013; Statistics canada, 2013. 6 Source: aon hewitt, consulting, Global research center, 2013.
Total employment variation (%)5
20 largest metropolitan areas in North America, 2008–2012
HOUSTON
DALLAS
WASHINGTON
TORONTO
MONTRÉAL
CLEVELAND
MINNEAPOLIS
SAN DIEGO
SAN FRANCISCO
bOSTON
SEATTLE
MIAMI
DENVER
NEW YORk
PHILADELPHIA
ATLANTA
LOS ANGELES
PHOENIX
DETROIT
3.2%
-8% -6% -4% -2% 0% 2% 4% 6% 8% 10%
NEW YORk
TORONTO
MONTRÉAL
LOS ANGELES
bOSTON
CHICAGO
VANCOUVER
SAN DIEGO
SAN FRANCISCO
DALLAS
HOUSTON
PHILADELPHIA
MIAMI
SEATTLE
ATLANTA
WASHINGTON
DENVER
PHOENIX
MINNEAPOLIS
DETROIT
73
40 60 80 100
Overall risk associated with recruiting, employing and relocating workers index6
Largest metropolitan areas in North America available in the study, 2013
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A GrOwiNG JOB mArKET ONE OF NORTH AMERICA’S MOST DYNAMIC AND FLEXIBLE LABOUR MARKETS
Stable job growth, despite the global economic turmoil of recent years
workers
Easier recruitment for companies
3rd in North America and 4th in the world for low overall risk associated with recruitment, employment and workforce relocation
2 MILLION
High technology job concentration (%)1
20 largest metropolitan areas in North America, 2012
SEATTLE
SAN FRANCISCO
WASHINGTON
bOSTON
SAN DIEGO
DALLAS
MONTRÉAL
ATLANTA
TORONTO
PHOENIX
PHILADELPHIA
LOS ANGELES
ST-LOUIS
MINNEAPOLIS
CHICAGO
DETROIT
NEW YORk
MIAMI
HOUSTON
RIVERSIDE
7.2%
0% 3% 6% 9% 12% 15%
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A CuLTurE OF iNNOVATiON A PROMISING ENVIRONMENT FOR HIGH-TECH SECTOR EMPLOYERS
An omnipresent culture of creativity and innovation
7% of the workforce is employed in a higher learning sector—a rate comparable to that of Dallas and San Diego
concentration of high-tech jobs in North America
Th
hiGhEST
Montréal is recognized for its creativity and its educated, bilingual and cosmopolitan workforce, and we want to help keep the city at the “avant-garde” of major trends.
Nicolas Darveau-Garneau, Managing Director Google Québec
University research funding ($M)2
5 largest metropolitan areas in Canada, 2010
MONTRÉAL
TORONTO
VANCOUVER
CALGARY
OTTAWA
0 200 400 600 800 1,000 1,200 1,400
1,183
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A SYNErGY OF SKiLLS A UNIQUE CLIMATE OF COLLABORATION BETWEEN UNIVERSITY RESEARCHERS AND HIGH-TECH INDUSTRIES
Top metropolitan area in Canada for university research funding3
1O% increase in university research funding between 2OO9 and 2O1O4
Largest number of university researchers in Canada5
Greater Montréal offers life sciences companies a very welcoming environment, with a very open spirit of collaboration among universities, research institutions, industry and governments.
Neil Fraser, Président Medtronic Canada
The largest university research centre in Canada
A model based on collaboration and public/private partnerships
1 Note: concentration of high-tech jobs: number of high-tech jobs out of the total number of metro area jobs. See appendix for details on methodology. Sources: Bureau of labor Statistics (BlS), 2013; Statistics canada, 2013. 2 Source: Statistics canada, 2013. 3 Source: Statistics canada, 2013. 4 Source: Statistics canada, 2013. 5 Source: research infosource, 2012.
Greater Montréal provides a budding start-up like ours with valuable access to world-renowed researchers and a pool of potential partners accustomed to working together.
Michelle Laflamme, President and CEO Emovi
0.0% 0.5% 1.0% 1.5% 2.0%
TORONTO
MONTRÉAL
MIAMI
NEW YORk
WASHINGTON
SAN FRANCISCO
SAN DIEGO
SEATTLE
bOSTON
HOUSTON
LOS ANGELES
ATLANTA
PHILADELPHIA
MINNEAPOLIS
DALLAS
CHICAGO
DETROIT
PHOENIX
DENVER
CLEVELAND
1.0%
Net international migration rate1
20 largest metropolitan areas in North America, 2011-2012
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A wELCOmiNG CLimATE IMMIGRATION: A POWERFUL ECONOMIC DEVELOPMENT DRIVER
new immigrants each year
A society open to multiculturalism
Simplified procedures thanks to Montréal International
1 Note: Net international immigration rate: Net annual international migration as a % of total population. Sources: U.S. census Bureau, 2013 and Statistics canada, 2013. 2 Source: Statistics canada, 2013
did YOu KNOw?Montréal International helps companies recruit strategic foreign talent when necessary and provides assistance with procedures to obtain
official documents such as visas, work permits or extensions of stay. CONTACT Us fOR MORE INfORMATION.
> 4O,OOO
…it is easy to integrate. It’s a welcoming, open-minded and warm environment. Montréal is a vibrant city where there is great emphasis on culture and where you hear several different languages spoken. To me, offering children an opportunity to learn several languages growing up is priceless. Moreover, the food is great!
Paulo Magalhaes, Private bankerRBC Wealth Management
Bilingual population2
5 largest metropolitan areas in Canada, 2011
MONTRÉAL
OTTAWA
TORONTO
CALGARY
VANCOUVER
0% 10% 20% 30% 40% 50% 60%
54%
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A muLTiCuLTurAL mETrOPOLiS THE MOST BILINGUAL AND TRILINGUAL METROPOLITAN REGION IN CANADA
More than 1OO languages spoken - a key advantage for businesses with foreign markets
of the population is bilingual (French and English), compared to just under 8% in Toronto and Vancouver
5O%
residents speak English, that’s 6% more than in Vancouver
2.3 MILLION
The Montréal metropolitan region has undeniable advantages. These include a cosmopolitan, highly qualified workforce, competitive operating costs, an active research community, internationally renowned universities, reliable infrastructure, government assistance for electronic business development and location in a time zone that facilitates exchanges with both the Americas and Europe. It’s perfect for us!
kirsten Sutton, Vice President and Managing DirectorsAP Labs Canada
of the population is fluent in three or more languages, compared to 11% in Toronto and 9% in Vancouver
ALMOST 2O%
THE ECONOMIC
POWER
in nortH AMericA For tHe Most coMPetitive oPerAtinG costs
95 100 105 110 115 120 125
Total operating costs for an average of 19 activity sectors1 (Montréal=100)20 largest metropolitan areas in North America, 2013
MONTRÉAL
ATLANTA
CLEVELAND
TORONTO
DALLAS
PHOENIX
MIAMI
DENVER
MINNEAPOLIS
DETROIT
HOUSTON
PHILADELPHIA
CHICAGO
WASHINGTON
bOSTON
SEATTLE
SAN DIEGO
LOS ANGELES
NEW YORk
SAN FRANCISCO
100
1515
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LOw OPErATiNG COSTS RUNNING A BUSINESS COSTS LESS IN GREATER MONTRÉAL THAN IN ANY OTHER MAJOR NORTH AMERICAN METROPOLITAN AREAS
1 Note: list of the 19 activity sectors available in the appendix. Source: KpmG, april 2, 2013.
All sectors combined, the cost advantage over the average of North America’s 19 other largest metropolitan areas is more than 1O%
The most competitive operating costs of North America’s 2O largest metropolitan areas
1 ST
RANK
LOW OPERATING COSTS
Greater Montréal's cost advantage (%) compared to the average of the 19 other largest metropolitan areas in North America, 20131
VIDEO GAME PRODUCTION
INTERNATIONAL FINANCIAL SERVICES
PHARMACEUTICAL PRODUCTION
ELECTRONIC SYSTEMS TESTING
MEDICAL DEVICE MANUFACTURING
SOFTWARE DEVELOPMENT
10% 15% 20% 25%
21.7%
15.9%
14.8%
14.7%
14.5%
15.0%
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Competitiveness is supported by moderate costs (labour, rent, electricity) and targeted financial incentives
High-tech sectors boast an even higher cost advantage
Before they made their decision, my bosses asked me to study several Canadian cities. Montréal came out ahead in terms of competitiveness, creativity, attractiveness, critical mass, government programs, operating costs, and innovation. Like in 2007, Montréal International was beside me every step of the way. Very few cities have such highly developed support structures to help companies like ours to develop and recruit strategic talent. That’s extremely valuable.
Stéphane D’Astous, ex-General Manager Eidos-Montréal
1717
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1 Source: KpmG, april 2, 2013. 2 Notes: median salary of employees with 7 years' experience occupying the position in question. Data obtained from various public records such as U.S. Securities and exchange. Source: economic research institute, inc., 2013.
Median annual salaries for 8 typical professions2 Selection of 7 large cities in North America, April 1, 2013
MONTRÉAL TORONTO CHICAGO sAN DIEGO sEATTLE BOsTON sAN fRANCIsCO
R&D MANAGER (TECHNICAL) $104,152 $110,059 $11, 464 $119,115 $125,269 $127,339 $132,926
MANAGER $83,379 $88,365 $90,902 $92,161 $97,516 $99,344 $104,486
AERODYNAMICS ENGINEER $82,088 $87,016 $84,085 $86,172 $86,144 $91,142 $95,016
SOFTWARE DEVELOPER $86,418 $91,538 $93,430 $93 ,114 $96,288 $101,226 $106,729
INDUSTRIAL ENGINEER $74,131 $78,707 $74,221 $75,756 $76,021 $80,240 $83,603
COMPUTER PROGRAMMER $73,132 $77,664 $78,949 $78,070 $81,106 $85,136 $89,821
CHEMIST $63,272 $67,169 $66,449 $66,853 $66,048 $71,716 $75,123
SCIENTIFIC RESEARCHER $62,602 $66,666 $64,591 $65,101 $64,272 $70,209 $73,009
THE 1ST COST COMPETITIVENESS FACTOR
COmPETiTiVE SALAriES
Notwithstanding the high level of creativity and expertise of workers in Greater Montréal, salaries are lower than elsewhere in North America
GROss ANNUAL sALARy $75,000 $100 ,000 $125,000
QuébEC PENSION PLAN (5.025%) $2,341.65 $2,341.65 $2,341.65
QUÉbEC PARENTAL INSURANCE PLAN (EMPLOyEE: 0.559%, EMPLOyER: 0.782%)
$516.12 $516.12 $516.12
EMPLOYMENT INSURANCE (EMPLOyEE: 1.47%, EMPLOyER: 2.058%)
$944.62 $944.62 $944.62
HEALTH SERVICES FUND (2.7% IF gLObAL SALARy tOtAL LESS thAN $1M)
$2,025.00 $2,700.00 $3,375.00
LAbOuR StANDARDS bOARD (0.08%) $51.20 $51.20 $51.20
OCCUPATIONAL HEALTH AND SAFETY bOARD (0.60% IN SERvICE SECtOR)
$384.00 $384.00 $384.00
TOTAL $6,262.59 $6,937.59 $7,612.59
TOTAL COsT $81 ,262.59 $106,937.50 $132,612.59
Employer contributions ($)1
Québec, 2013
The employees, however, still enjoy one of the world’s highest standards of living
low mandatory benefit costs for employers
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SALARIES
Average office space rent ($/square foot/year)2
12 of the largest metropolitan areas in North America, 2013
MONTRÉAL
TORONTO
PHILADELPHIA
ATLANTA
HOUSTON
CHICAGO
LOS ANGELES
MIAMI
NEW YORk
bOSTON
SAN FRANSISCO
WASHINGTON
0 10 20 30 40 50 60 70
21
1919
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1 Notes: Vacation represents a minimum of 4% of salary pursuant to the act respecting labour standards. paid holidays (approx. 10 days or 4%) are included in gross salary. Source: BDo canada, 2013. 2-3-4 Source: Cushman & Wakefield, 2013.
2ND COST COMPETITIVENESS FACTOR
AFFOrdABLE rENT
office and industrial spaces are available at highly competitive rates in downtown Montréal as well as in the North Shore and South Shore business districts
Average rent for a Class-A office building 3 :
Average rent in the industrial sector 4 :
$21/sq. ft./yr.
$5/sq. ft./yr.
Average electricity rates (¢/KWH- including taxes)Small power, 10 largest metropolitan areas in North America, April 1st, 20121
Power – 40 kWConsumption – 10 000 kWhLoad factor 35 %
0 5 10 15 20 25
SEATTLE
HOUSTON
MONTRÉAL
MIAMI
CHICAGO
DETROIT
TORONTO
bOSTON
SAN FRANCISCO
NEW YORk
8.9
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3RD COST COMPETITIVENESS FACTOR
LOw, STABLE ENErGY COSTS
Rates among the lowest in North America
Stable electricity rates thanks to the hydro heritage pool which shelters rates from oil price fluctuations, and a low-cost natural gas outlook assured by huge continental reserves
Preferential energy rates available for major consumers: aluminum smelters, data centres, etc.
Major natural gas distribution infrastruc-ture: over 1O,OOO km of underground pipes serving 185,OOO residential, commercial, institutional and industrial customers across Québec
Notes: Some bills have been estimated by hydro-Québec and may differ from actual bills. exchange rate used for the study: $1 ca = $1 U.S. 1 Source: hydro-Québec, 2012. 2 Source: international Data corporation, 2012.
Average annual growth between now and 2015 in the number of cloud-computing related jobs in Greater Montréal—a total of 7,800 new jobs2
2O%
Aside from its cold climate, Greater Montréal, we believe, has numerous advantages such as a dynamic entrepreneurial spirit, bilingualism and a secure energy supply at a relatively affordable and predictable price.
Germain Masse, Operations Director OVH.com Canada
THE FINANCIAL
POWERtAiLor-MADe incentives
AMonG MAjor nortH AMericAn MetroPoLitAn AreAs
MONTRÉAL
TORONTO
MINNEAPOLIS
ATLANTA
PHOENIX
DETROIT
CLEVELAND
MIAMI
SAN DIEGO
bOSTON
SEATTLE
LOS ANGELES
SAN FRANCISCO
DENVER
NEW YORk
CHICAGO
WASHINGTON
DALLAS
HOUSTON
PHILADELPHIA
0 20 40 60 80 100 120
Average tax burden index for R&D sectors(Average for U.s. metropolitan areas = 100)20 largest metropolitan areas in North America, 2012
Comparison of corporate tax rate2
Selected Canadian provinces and u.S. states, 2013Effective tax rate (%)
20% 25% 30% 35% 40% 45%
ONTARIO
QUÉBEC(MONTRÉAL)
TEXAS
MASSACHUSETTS
ILLINOIS
NEW JERSEY
CALIFORNIA
26.9%
20.3
Manufacturing companies
Non-manufacturing companies
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4TH COST COMPETITIVENESS FACTOR
ATTrACTiVE TAx TrEATmENT
A competitive tax burdenRanked 2nd among the 2O largest metropolitan areas in North America in terms of the competitiveness of the business tax burden, all sectors combined 1
Particularly for R&D companiesThe lowest tax burden in North America for R&D companies, thanks to competitive tax rates and generous tax credits provided by the Canadian and Québec governments
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sCENARIO 1 ($): Scientific research and experimental development (SR&ED) tax incentive program 20144
Scientific research and experimental Development (SR&ED) Tax Credit Program
from the government of Canada
refundable, from the government of Québec
THE 5TH COST COMPETITIVENESS FACTOR
TAiLOr-mAdE iNCENTiVES
1 Note: includes 19 activity sectors, see the appendix for details. Source: KpmG, 2012. 2 Sources: investissement Québec and raymond chabot Grant Thornton, 2013. 3 Source: KpmG, 2012. 4 Source: « Deloitte, Tax Incentive Programs in Québec –IT, January 2011 », compilation: montréal international. Notes: (A) This model takes into consideration recent changes made to the Scientific Research and Development Tax Credit (2012) and is thus valid as of fiscal 2014. (B) only 80% of the amount paid to a subcontractor is eligible for a federal tax credit and 50% for a Québec tax credit. (C) For the purposes of calculating the combined rate of the credit, the tax credit from the government of Québec is applied against the federal tax credit.
Montréal International helped us gain a greater understanding of the financial assistance available in Québec and to present our project to the various government organizations. Their network of contacts is also very useful in terms of introducing us to prospective clients and partners.
Pierre Ribaute, President John Meunier Inc., a subsidiary of Veolia Environnement
fEDERAL QUÉBEC TOTAL
SALARY 1,000,000 1,000,000
REPLACEMENT AMOUNT @ 55% 550,000
SUbCONTRACTORSb 160,000 100,000
QUÉbEC sR&ED CREDITC - 192,500
1,517,500 1,100,000
FEDERAL CREDIT @ 15% AND QuébEC CREDIt @ 17.5%
227,625 192,500 420,125
AssumptionsA:
Private, foreign-controlled company
20 eligible employees @ $50,000 / year
100% of their work is related to eligible activities
Subcontractor: $200,000
15%17.5%
fEDERAL QUÉBEC TOTAL
SALARY 1,000,000 1,000,000
REPLACEMENT AMOUNT @ 55%b 550,000
QUÉbEC CDAE CREDITC 0
1,550,000 1,000,000
FEDERAL CREDIT @ 15% AND QUÉbEC CREDIT @ 30%
232,500 300,000 532,500
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subject to certain conditions, eligible activities are categorized under the 10 following NAICs2 codes:
334110 – Computer and Peripheral Equipment Manufacturing
334220 – Radio and Television broadcasting and Wireless Communications Equipment Manufacturing
334110 – Semiconductor and Other Electronic Component Manufacturing
417310 – Computer, Computer Peripheral and Pre-Packaged Software Wholesalers- Distributors
443120 – Computer and Software Stores
511210 – Software Publishers
51821 – Data Processing, Hosting, and Related Services
541510 – Computer Systems Design and Related Services
561320 – Temporary Help Services (under certain conditions)
561330 – Professional Employer Organizations (under certain conditions)
sCENARIO 2 ($): Combination of the provincial refundable tax credit for the development of e-business (CDAE) and the federal scientific research and experimental development (SR&ED), 20143
Refundable Tax Credit for the Development of e-Business
Covers 3O% of employee salaries up to $2O,OOO per job per year1
1 Note:The eligible amount per job per year will be $22,500 starting on January 1, 2016. 2 Note: North American Industry Classification System. 3 Notes : (A) This model takes into consideration recent changes made to the Scientific Research and Development Tax Credit (2012) and is thus valid as of fiscal 2014. (B) limited by other company expenditures. (C) The cDae does not reduce the amount eligible for the federal Sr&eD tax credit. Source: « Deloitte, Tax Incentive Programs in Québec –IT, January 2011 », compilation: montréal international. 4 Source: investissement Québec, 2013. 5 Notes: (A) This model takes into consideration recent changes made to the Scientific Research and Development Tax Credit (2012) and is thus valid as of fiscal 2014. (B) limited by other company expenditures. (C) The cDae does not reduce the amount eligible for the federal Sr&eD tax credit. Source: « Deloitte, Tax Incentive Programs in Québec –IT, January 2011 », compilation: montréal international.
TAILOR-MADE INCENTIVES
AssumptionsA:
Foreign-controlled private company
20 eligible employees @ $50,000/year
100% of their work is related to activities eligible for the CDAE and the SR&ED tax credits
fEDERAL QUÉBEC TOTAL
SALARY 1,000,000 1,000,000
REPLACEMENT AMOUNT @ 55%b 550,000
QUÉbEC CTMM CREDITC 0
1,550,000 1,000,000
FEDERAL CREDIT @ 15% AND QuébEC CREDIt @ 37.5%
232,500 375,000 607,500
CATEGORy 1 MULTIMEDIA TITLEs
CATEGORy 2 MULTIMEDIA TITLEs
bASIC CREDIT 30% OF ELIGIbLE LAbOUR COSTS
26.25% OF ELIgIbLE LAbOUR COSTS
bONUS FOR FRENCH-LANGUAGE AVAILAbILITY
7.5% OF ELIgIbLE LAbOUR COSTS
NOT APPLICAbLE
TOTAL37.5% OF ELIgIbLE
LAbOUR COSTS26.25% OF ELIgIbLE
LAbOUR COSTS
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sCENARIO 3 ($): Combination of provincial refundable tax credit for multimedia productions (CTMM) and the federal scientific research and experimental development (SR&ED) tax credit, 20145
Category 1:
Titles produced without being part of commission and destined for commercial markets
Category 2:
Other multimedia titles
UP TO 37.5%Refundable Tax Credit for the Production of Multimedia Titles
Covers 26.25% to 37.5% of wages
AssumptionsA:
Foreign-controlled private company
20 eligible employees @ $50,000 / year
100% of their work is related to activities eligible for the tax credit for multimedia productions and the SR&ED tax credit
Company is specialized
Multimedia titles are not part of an order and are available in French
Value of tax credits for production of multimedia titles4
TAILOR-MADE INCENTIVES
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ESSOR Fund for Major Projects Refundable and non-refundable contributions, loan guaranteesSectors: manufacturing, software publishing, private research centres, environmental services and tourism
Financial Assistance for Job Creation and Training
of eligible costs for the implementation of a training program
of costs incurred for the creation of a human resource department
1 Note: For the purposes of calculating the combined rate of the credit, the tax credit from the government of Québec is applied against the federal tax credit. 2 Note: Foreign workers hired by a Québec company may qualify for the assistance program.
100% of salary for the 1st and 2nd years
75% for the 3rd year
50% for the 4th year
25% for the 5th year
Tax Holiday for Foreign Researchers and Experts
Five-year Québec income tax exemption
5 YEARS
25%
5O%
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Strategic Aerospace and Defence Initiative (SADI)
Refundable contributions for up to 3O% of R&D project expenses
Tax Credit for Film Production ServicesUp to 44% combined tax credits for production services
25% in credits refundable by the government of Québec for eligible production costs
2O% bonus for extended labour costs incurred for eligible productions comprising special effects and computer animation (with scenes shot in front of a chroma key screen)1
16% non-refundable tax credits for eligible labour costs from the Government of Canada2
Refundable Tax Credit for International Financial Centres
3O% of salaries up to $2O,OOO per job per year
INDUSTRIAL
POWER
in HiGH-vALUe sectors
CLuSTErSOF ExCELLENCE
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DSecretariats, the organizations dedicated to developing the clusters, support businesses in various ways, such as:
By providing forums to discuss common issuesBy enabling key industry stakeholders to mobilize for major projects
iNduSTriAL CLuSTErS wiTh rALLYiNG PrOJECTS FOr AN iNNOVATiVE ECONOmY
2O%of total metropolitan region employment, or more than 400,000 jobs
Cluster secretariats contribute to:
› Cohesion
› Value chain optimization
› Competitiveness
› Growth
› Innovation
› Raising the Sector’s international profile
› Development of qualified workers
7 industrial clusters that bring together all the stakeholders in a given sector around common objectives and actions
Strong concentration of world leaders, qualified workers and dedicated research centres Numerous foreign investments and plenty of business opportunities
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Suzanne M. bENOîT
President Aéro Montréal
ExCELLENCE iN AErOSPACE
A few words from the cluster secretariat Aéro Montréal
The Montréal metropolitan region comprises almost all of Québec’s aerospace industry. This represents a critical mass of businesses, universities and research centres—making Montréal one of the world’s three main aerospace centres, along with seattle and Toulouse.
Québec benefits from the presence of four prime contractors that invest massively in R&D. Around this critical mass gravitates more than 200 businesses that are recognized for their flexibility, innovativeness, and quality workforce — including some 15 international- caliber equipment manufacturers and integrators.
1 Note: Due to data availability, the statistical portrait presented on this page covers mainly the aerospace industry in Québec. as Greater montréal represents 98% of all activity in the province, this portrait can equally be applied to the montréal region.Source: ministère des Finances et de l'économie du Québec (mFÉQ), 2012.
Aerospace has been part of Montréal’s DNA since aviation’s earliest days and this will never change. Today, our cluster boasts a concentration of businesses in a 30-km radius and outstanding links with educational institutions and the government. We are also fortunate to have key actors that are extremely well positioned at every step of the aerospace value chain. From design to maintenance and after-sales service, as well as manufacturing and final assembly, Québec’s aerospace industry comprises all critical aircraft lifecycle phases. Suzanne M. benoît, President, Aéro Montréal.
over 42,5oo highly qualified workers in 212 companies1
More than $12 billion in sales
5.7% annual growth between 199O and 2O12
Canada’s largest aerospace centre, with
5O% of workers 7O% of R&D spending
a financial aid program for strategic aerospace initiatives (see p. 27)
Numerous leading international companies:
Bell Helicopter Textron Bombardier Aerospace CAE Héroux-Devtek Pratt & Whitney Rolls-Royce and many others
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A few words from the cluster secretariat ActionMTL
Québec is recognized around the world for its talented and creative workforce. Reporting to the Québec film and Television Council, ACTIONMTL, the secretariat of Montréal’s audiovisual cluster, was set up in 2012 to promote the inventive potential of Montréal’s leaders in the sector and consolidate the region’s position as a major international production centre.
Combining European charm with North American modernity, Montréal can stand in for any large western city and Old Montréal offers myriad of possibilities for period shoots — two remarkable attributes.
In addition to an incredible variety of backdrops and decors, we provide competitive tax credits on creation and production labour costs. When you add our infrastructures, technological resources and wide pool of specialized talent in every visual effects field, we can offer foreign producers the ability to make any type of production that they need. Already a leading production centre, we are now the fourth-largest visual effects centre in the world and we will continue our ascension. Hans Fraikin, General Manager of ACTIONMTL
and Commissioner of the Québec Film
and television Council.
Hans FRAIkIN
General manager ACTIONMTL
Commissioner of the Québec Film
and Television Council
35,OOO jobs in more than 5OO companies
More than $25O million in direct economic spin-offs annually
Tax incentives of up to 44% for production services (see p. 27)
one of canada’s biggest film studios just 5 minutes from downtown
Numerous international visual effects leaders:
Digital Dimension Framestore Hybride Modus Rodéo FX Mokko and many others
Source: Québec Film and Television council, 2013.
ExCELLENCE iN AudiOViSuAL
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A few words from the cluster secretariat Finance Montréal
Montréal is the home base of the Canadian Derivatives Exchange and an up-and-coming financial centre. The sector’s business volume has made finance Montréal a premier industrial cluster in Québec. Along with Toronto, Montréal is the only Canadian city offering a full range of financial services.
Active since 2011, Finance Montréal promotes the region’s various assets to organizations in the financial sector. these assets include the region’s competitive costs, tax credits, pool of students and proximity to North America’s largest financial centres.
Within the next few years, this ecosystem’s four major development hubs are expected to consist of pension plans, derivatives, financial technology and financing for major infrastructure projects.
Eric LEMIEUX
Chief Executive Officer of Finance Montréal
Chief Executive Officer of International Financial
Centre of Montréal
1OO,OOO jobs in 3,OOO organizations
6.2% of the metropolitan region’s GDP
The 16th-largest international financial centre according to Global Financial Centres Index 2O13
Attractive refundable tax credit for international financial centres (see p. 27)
Top organizations:
National Bank Royal Bank of Canada TD Bank Caisse de dépôt et placement du Québec BMO Financial Group Desjardins Group Standard Life and many others
Source: Statistics canada, 2012.
ExCELLENCE iN FiNANCE
This awareness of our strengths is recent, and we still have work to do in terms of perceptions. Our achievements so far include creating the Montréal Institute of Structured Finance and Derivatives and the first FINTECH Financial technology forum in 2013. We’re only just getting started! Eric Lemieux,
Chief Executive Officer of Finance Montréal
and International Financial Centre of Montréal.
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62,OOO jobs at 4,OOO establishments
A natural access point to Europe
efficient infrastructure networks providing access to 46O million NAFTA consumers
Leaders:
Air Canada Canadian National Canadian Pacific Groupe Robert Logistec Oceanex Purolator Transforce UPS and many others
A few words from the cluster secretariat CargoM
Montréal’s logistics and transportation cluster, CargoM, was set up in December 2012 to promote the metropolitan region’s role as a recognized and attractive multi-modal platform.
As a freight transportation hub strategically located in Eastern North America, Montréal boasts a high concentration of air, maritime, road and rail trans- portation companies and transit operations firms. The region is also home to top-notch expertise, experienced workers and specialized institutions such as the Interuniversity Research Centre on Enterprise Networks, Logistics and Transportation (CIRRELT), the Montréal International Logistics Institute and hEC Montréal’s Carrefour logistique.
Mathieu CHARbONNEAU
Executive Director CargoM
Source: Statistics canada, 2012.
ExCELLENCE iN LOGiSTiCS ANd TrANSPOrTATiON
Montréal offers numerous benefits that assure the region’s continued prosperity in this field: rapid intermodality, extensive seaway access providing economic and environmental advantages, proximity to the continent’s major markets, ease of access to other major markets, and know-how. We now need to strengthen ties and establish perfor-mance indicators for the sector as a whole to promote our competitive advantages globally. This is our priority. Mathieu Charbonneau, Executive Director, CargoM.
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Nathalie OUIMET
Acting General Manager Montréal InVivo
45,OOO jobs in 6OO facilities
More than 12,OOO researchers and professionals in 3OO public and para-public organizations
A cost advantage of more than 14% for businesses in the sector, compared to competing cities
A tax burden for R&D companies that is 2 to 5 times lower than in competing cities
Internationally-renowned companies:
Covidien GlaxoSmithKline Halo Charles River Laboratories Preclinical Services Montréal Medtronic of Canada Merck Pfizer Canada Pharmascience Quintiles Sandoz Canada and many others
Sources: Statistics canada, 2012 and expertise recherche Québec, 2012.
ExCELLENCE iN LiFE SCiENCES ANd hEALTh TEChNOLOGiES
A few words from the cluster secretariat Montréal InVivo
Montréal has one of the highest concentrations of jobs in the Life sciences and Health Technologies sector in North America. It is also the only place in Canada—and one of the few in the world—where a company can complete the entire drug creation process, from basic research to marketing.
The completion of two mega-hospitals—currently the largest hospital infrastructure investment in the world—will further extend the profile of this cluster, which is already active in every sub-sector of its industry.
Our cluster is also distinguished by the spirit of open communication and the multidisciplinarity among the various stakeholders in our ecosystem, exemplified by the creation of the Québec Consortium for Drug Discovery, the NEOMED Institute and the Personalized Medicine Partnership for Cancer. Several major projects have become hugely successful in recent decades, and Montréal InVivo will do its part to encourage more of them, notably in its priority areas of excellence. Nathalie Ouimet, Acting General Manager,
Montréal Invivo.
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more than 92,ooo qualified employees in almost 5,OOO organizations
25% ICT GDP growth between 2OO2 and 2O12—twice that of the overall economy
A leader among North America’s 2O biggest metropolitan areas
Ranked 1st for lowest ICT business operating costs
targeted and highly competitive financial incentives (see pp. 24 and 25)
A concentration of leaders:
Bell Cgi Google IBM SAP Telus Ubisoft Videotron and many others
A few words from the cluster secretariat TechnoMontréal
Greater Montréal’s highly diversified Information and Communications Technologies (ICT) cluster continues to experience strong growth and is expected to attract a substantial amount of foreign investment in the coming years.
The software and services sectors account for around 50% of its activities, which make it an important horizontal cluster with ramifications in a multitude of activity sectors.
While often cited as a multimedia capital, Montréal is also one of the three largest centres of excellence in the immersion sector.
Lidia DIVRY
General Manager TechnoMontréal
Sources: Statistics canada, 2012 and institut de la statistique du Québec, 2011.
ExCELLENCE iN iNFOrmATiON ANd COmmuNiCATiONS TEChNOLOGiES (iCT)
We are fortunate that we can count on the rapid mobilization of our partners when the time comes to take a position or participate in major projects such as Montréal Métropole Numérique, which aims to usher Montréal into the ranks of the world’s Smart Cities. As far as our strengths go, I would add our critical mass of major companies working in tandem with our vast pool of small- and medium-sized businesses, our bilin-gualism and, of course, our capacity for innovation. We recently created a strategic and tactical support program for promising SMBs. Lidia Divry,
general Manager, technoMontréal.
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Denis LECLERC
President and Chief Executive Officer Écotech Québec
A few words from the cluster secretariat Écotech Québec
The first organization of its kind in Canada, Écotech Québec has been Québec’s cleantech cluster since 2009. Its members—of whom some 60% are located in Greater Montréal—work in every sector of the industry, and contribute to reducing energy consumption, optimizing use of resources or beneficially reusing waste streams.
Écotech Québec, which is highly focused on partnership and marketing, includes innovative SMbs, user organizations, institutional and private investors, and specialized research centres. the transition to a greener economy has already begun and the social and political desire to accelerate it provides a good growth opportunity to the entire sector.
Source: Écotech Québec, 2013.
ExCELLENCE iN CLEANTECh
In our world, the key to success is innovation which allows more efficient use of energy and resources. We form a horizontal cluster that is well structured and recognized for its entrepreneurial dynamism. We have been invited to join the select International Cleantech Network group—a network aimed at multi-plying business opportunities among the top-performing cleantech clusters. Denis Leclerc, President and Chief Executive Officer, écotech Québec.
More than 45O innovative companies active in one or more of these sectors:
energy (21%), energy efficiency (19%), water (18%), waste (17%), green chemistry (16%), soil (15%), air (13%), eco mobility (3%)
7O% of businesses in this cluster conduct business internationally
Around 2OO research groups and chairs
Favourable business climate:
Canada is the 7th most attractive country for cleantech companies according to the World Wildlife Fund and international research firm Cleantech Group
Leaders in the sector:
Biothermica Magnus Newalta Northex Environnement Odotech SCL Element Sonitec-Vortisand Volts and many others
THE POWER
TO ATTRACT THE BESTeXcePtionAL QUALitY oF LiFe
hiP CiTiES
ONE OF THE WORLD’S
HOUsING COsT (MONTRÉAL = 100),selection of metropolitan areas, 20121
0 100 200 300 400 500 600
MONTRÉAL
CHICAGO
TORONTO
VANCOUVER
bOSTON
SAN FRANCISCO
PARIS
NEW YORk
LONDON
100
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A rEGiON BrimmiNG wiTh AdVANTAGES NORTH-AMERICAN EFFICIENCY AND EUROPEAN CHARM: GREATER MONTRÉAL OFFERS WORKERS AND THEIR FAMILIES THE BEST OF BOTH WORLDS
Affordable housing—2O% less expensive than in Toronto or Vancouver
A very safe environment
efficient and accessible public services
The land of equal opportunity The land of equal opportunityOf all g7 countries, Canada ranks first in terms of equal opportunities for people of different origins4
Healthbasic health care provided at no cost to Canadian citizens and permanent residents
EducationMore accessible higher education, thanks to the lowest tuition fees in North America
World’s top city for undergraduate studies3
safetyLowest homicide rate (1.3 per 100,000 inhabitants) among North America’s 20 largest metropolitan areas (4.7 per 100,000 inhabitants on average) in 20112
1 Source: The economist intelligence Unit, 2013. 2 Sources: federal Bureau od investigation, 2013, Statistics canada, 2013. 3 Source: The economist intelligence Unit, 2013. 4 Sources: imD, 2012 and invest in canada, 2013; Note: equal opportunities: race, gender and family origin do not impede competitiveness.
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A COSMOPOLITAN AND BILINGUAL ENVIRONMENT THAT IS OPEN TO THE WORLD
A LIFESTYLE WHERE OPPORTUNITIES FOR CULTURAL DISCOVERY, FINE DINING AND OUTDOOR ACTIVITIES ABOUND
Montréal is one of the most pleasant cities I have seen to this point. Moreover, it is a very vibrant city that has a very interesting mix of European and American culture. I also appreciate how courteous the people are, the variety of sporting activities provided, the night life and the quality of food.
saurabh DAWRAManager Technical Solutions, Ericsson, who recently moved to Montréal and has lived on 4 continents
Montréal is also known for its ethnic and cultural diversity, lifestyle, safety and reasonable cost of living.
Raymond BENJAMIN Secretary General, ICAO
We like the quality of life a great deal. We regularly ski on weekends less than an hour away from Montréal. The children have integrated well, and we are pleased they are exposed to English. We had initially planned on staying three years, but we now know that we’ll be here for at least twice that long.
Kris JARDON Gynecologist-Oncologist Surgeon, Royal Victoria Hospital, arrived in Greater Montréal in August 2010
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A QUALITY OF LIFE THAT IS RENOWNED OVER THE WORLD TOP 1O
hip cities New York Times, 2011
BEST global destination NewNowNext Travel Awards, 2011
UNESCO City of Design since 2006
3RD
on the Best Summer Cities list Lonely Planet, 2011
number 1 in North America and number 11 globally on the index of bicycle-friendly cities Copenhagenize, 2013
TOP HOST CITY in North America for international association events Union des Associations Internationales (UAI), 2012
THE POWER
TO HELP YOU
For ForeiGn Direct investMent strAteGY
diSCOVEr whAT mONTréAL iNTErNATiONAL CAN dO FOr YOu
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YOUR PRIVILEGED PARTNER TO SUCCEED IN GREATER MONTREALMontréal International offers a single point of access to a series of personalized, free and confidential services. The organization can count on the expertise of some fifty professionals who are specialists in their fields.
Its mission is to contribute to the economic development of metropolitan Montréal and enhance its international status.
OUR MANDATES Attract, retain and expand foreign
direct investments
Attract, retain and expand international organizations
Attract, welcome and retain qualified foreign workers
Promote and strengthen Greater Montréal’s economic attractiveness and international status
OUR ACHIEVEMENTS Attracted $9.4 billion in foreign direct investment
since 2OOO
Helped over 56O foreign companies set up or expand operations
Helped more than 8,OOO strategic international workers relocate to the region
WWW.MONTREALINTERNATIONAL.COM
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created from a private/public partnership, Montréal international can help you set up, expand or create strategic alliances in the region. We can provide you with valuable advice to take advantage of timely business opportunities that will help your business grow.
STRATEGIC SUPPORT
We offer a wide range of comparative data on Greater Montréal’s business environment (market access, labour availability, operating costs, quality of life, etc.). some of these data can also be found in our numerous promotional publications.
SITE SELECTION DATA
Youcanbenefitfromourspecialrelationships with many federal, provincial and municipal partners,aswellasbusinessandfinancialnetworks,universities and training and research centres.
GOVERNMENT RELATIONS
our team of advisors can provide a complete rangeofsupportservicestohelpyouhirequalifiedinternationalworkers(helpwithobtainingofficialdocuments, integration of workers, etc.). You can also participate in our international recruiting missions.
INTERNATIONAL MOBILITY
take advantage of Montréal international’s unique expertise on Greater Montréal’s centres of competitiveness. You will have access to strategic advice and key information on the region’s high-growth sectors.
SECTORIAL EXPERTISE
Make the most of government programs available to foreign companies that invest in Greater Montréal. our team can inform you about thevariousfinancialandtaxincentivesonoffer andprovidehelpfuladviceonavailablefinancing for your type of project.
KNOWLEDGE OF FINANCIAL AND TAX PROGRAMS
TiTrE
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Beating 126 competitors across North and South America
IN “OVERALL NORTH AMERICAN CITY OF THE FUTURE” RANKINGS
2O12 jAnUArY APriL MAY jUne octoBer
First international “Commerce + Creativity” C2-MTL conference.
AErOLiA, the French leader in aerostructures and a specialist in the design and production of nose fuselage sub-assemblies announces an $82.4 M project that will create 15O jobs.
OVh.com, Europe’s top web hosting company, comes to Greater montréal. A $127 m project resulting in 12O new jobs.
The wOrLd CONGrESS ON iNFOrmATiON TEChNOLOGY is held in montréal.
$5O M project and creation of 2O5 jobs at mEdTrONiC.
CiCAmE éNErGiE, which specializes in the manufac-turing of transmission line and electrical distribution accessories, continues its expansion and opens a new 1OO,OOO square-foot facility in Greater Montréal.
FDi Magazine named Medtronic’s project the world’s best medical technology investment project around the world.
FOR FOREIGN DIRECT INVESTMENT (FDI) STRATEGY
GreAter MontréAL toPs FDi MAGAZine’s AmEriCAN CiTiES OF ThE FuTurE 2O13–2O14
GrEATEr mONTréAL mAJOr SuCCESSES ANd mONTréAL iNTErNATiONAL KEY AChiEVEmENTS
ST rd
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thanks to its robust and open economy, solid financial institutions and competitive tax treatment for businesses
IN “OVERALL AMERICAN CITIES OF THE FUTURE” RANKINGS
2O13 jAnUArY FeBrUArY jUnenoveMBre
wArNEr BrOThErS mONTréAL creates the Batman video game.
FrAmESTOrE, a world- leading visual effects and animation studio serving the film and televi-sion industries, sets up in Greater Montréal and creates 2OO jobs.
EriCSSON announces plans to build a 4O,OOO m2 global ICT centre in Greater Montréal —an investment of more than $1 B over 3 years.
The iNTErNATiONAL FEdErATiON OF AirLiNE PiLOTS’ ASSOCiATiONS (IFALPA) relocates from London to Montréal.
ADETEL Group, a french firm specia- lizing in the design of onboard electronic equipment, creates 1OO jobs when it sets up in Greater Montréal.
The ALTEN Group, a European leader in technology consul- ting and engineering (TCE), establishes its Canadian head office in Greater montréal and announces the creation of 2OO jobs.
IN “BUSINESS FRIENDLINESS” RANKINGS
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APPENdix METHODOLOGICAL NOTES
1–METROPOLITAN AREA COMPARISONS
To ensure greater objectivity and accuracy of the economic analyses presented in this document, reference metropo- litan areas have been selected according to demographic weight. thus, the basis of comparison chosen for the majority of indicators is for the 20 largest North American metropolitan areas by population. Canadian metropolitan areas have been selected on the basis of demographic data from Statistics Canada and u.S. metropolitan areas on the basis of estimates from the u.S. Census bureau. When Canadian and u.S. data are unavailable for a given period or are not comparable, the indicators are based on the five largest metropolitan areas in Canada or solely on the Montréal metropolitan area.
The geographical units referred to throughout this publi-cation are the Census Metropolitan Area (CMA) for Canada and the Metropolitan Statistical Area (MSA) and Combined Statistical Area (CSA) for the u.S.“North America” refers to the united States and Canada, but excludes Mexico.
the expressions “greater Montréal” or “Montréal” refer to the Montréal CMA. When there is no chronological data on the metropolitan area, the closest statistical universe is taken into consideration.
2–LABOUR
Canadian university data
University data used in this publication was compiled by Montréal International and based on universities with a presence in greater Montréal. For université de Sherbrooke, the École nationale d’administration publique (ENAP), the Institut national de la recherche scientifique (INRS) and Télé-université (TÉLUQ), ratios of 10%, 50%, 70% and 55% respectively were used to estimate the number of students enrolled in these institutions that are partially located in greater Montréal.
Although these rates were determined on the basis of information obtained from universities in Greater Montréal, the estimates presented in this publication may differ from the official numbers compiled by each of the institutions as they are derived from data provided by the Ministère de l’éducation, du Loisir et du Sport du Québec. the goal was to obtain a fair approximation of the number of students enrolled and the number of university degrees awarded in greater Montréal.
“People Risk Index”
“Highlights of the 2013 People Risk™ Index Ratings, Organiza-tion Risks Related to Recruitment, Employment and Redeploy-ment” by Aon Hewitt (Consulting, Global Research Center) is a global study comparing risks related to recruiting, employing and relocating workers. It comprises 5 main categories of indicators assessing global demographics, government support, education systems, talent develop-ment and employment practices.
Concentration of high-technology jobs
Data for Canadian regions is taken from Statistics Canada’s “Survey of Employment, Payrolls and hours” (SEPh). this source was preferred over Statistics Canada’s “Labour Force Survey” (LFS) as its methodology is similar to that used for the bureau of Labor Statistics “Quarterly Census of Employment and Wages” (QCEW) which is the data source on u.S. metropolitan areas. the SEPh in Canada and the QCEW in the u.S. do not include self-employed workers. It should be noted that data on u.S. areas are based on Metropolitan Statistical Areas (MSA). For each of the 20 major metropolitan areas, Montréal International
Metropolitan area statistical description Population
New York Combined Statistical Area 23,362,099
Los Angeles Combined Statistical Area 18,238,998
Chicago Combined Statistical Area 9,899,902
Washington Combined Statistical Area 9,331,587
San Francisco Combined Statistical Area 8,370,967
boston Combined Statistical Area 7,991,371
Philadelphia Combined Statistical Area 7,129,428
Dallas Combined Statistical Area 7,095,411
Houston Combined Statistical Area 6,371,677
Atlanta Combined Statistical Area 6,092,295
Toronto Census Metropolitan Area 5,941,488
Miami Metropolitan Statistical Area 5,762,717
Detroit Combined Statistical Area 5,311,449
Seattle Combined Statistical Area 4,399,332
Phoenix Metropolitan Statistical Area 4,329,534
Montréal Census Metropolitan Area 3,957,715
Minneapolis Combined Statistical Area 3,759,978
Cleveland Combined Statistical Area 3,497,711
Denver Combined Statistical Area 3,214,218
San Diego Metropolitan Statistical Area 3,177,063
Top 20 largest metropolitan areas in North America by population, July 1, 2012
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has compiled jobs in high-tech sectors as defined in the following 3- or 4-digit North American Industry Classification System (NAICS) codes:
Aerospace 3364 Aerospace Products and Parts Manufacturing
Life sciences 325 Pharmaceutical and Medicine Manufacturing 3391 Medical Equipment and Supplies Manufacturing 4145 Pharmaceuticals, Toiletries, cosmetics and sundries
Wholesalers-Distributors (code 4242 in the u.S.) 5417 Scientific Research and Development Services 6215 Medical and Diagnostic Laboratories
ICT 3341 Computer and Peripheral Equipment Manufacturing 3342 Communications Equipment Manufacturing 3343 Audio and Video Equipment Manufacturing 3344 Semiconductor and Other Electronic
Component Manufacturing 3346 Manufacturing and Reproducing Magnetic
and Optical Media 4173 Computer and Communications Equipment
and Supplies Wholesalers-Distributors (code 4234 in the u.S.)
5112 Software Publishers 517 Telecommunications 518 Data Processing, Hosting, and Related Services 5415 Computer Systems Design and Related Services 8112 Electronic and Precision Equipment Repair
and Maintenance
3–COSTS
Total operating costs
Data originated from the biannual KPMg “Competitive Alternatives” study published in 2012. Montréal International updated these data using the kPMG “Competitive Alternatives Interactive Cost Model”. this study measures the combined impact of 26 significant cost components that vary by location, as applied to 19 different industry operations (electronics assembly, shared services center, precision components, software development, telecom equipment, medical device manufac-turing, advanced batteries/fuel cells, clinical trials manage-ment, electronic systems testing, aircraft parts, auto parts, video game production, pharmaceutical products, specialty chemicals, plastic products, biomedical R&D, international financial services, food processing and metal machining), over a 10-year period.
4–TAXATION AND INCENTIVES
Business tax burden
For the “Competitive Alternatives 2012 Special Report: Focus on tax”, KPMg assessed the tax burden on businesses for each type of business. the tax burden on a business located in a given metropolitan area corresponds to the total tax. this is the sum of three components: Corporate Income Tax, Other Corporate Taxes and Statutory Labour Costs.
CrEdiTS
“greater Montréal. the power to make you succeed - Attractiveness factors 2013-2014” is published by Montréal International. The electronic version of this document is available at: www.montrealinternational.com Version française disponible Graphic Design Écorce source Montréal International Photos Luc Robitaille: pages 12, 13, 39 (left) Luce tremblay-gaudette: pages 3, 7, 9, 11 (down), 14, 17, 19, 20, 22, 28, 30 to 37, 38 (right), 39 (right), 40, 42 (up) Ubisoft: page 11 (up) Moment Factory: pages 16, 25 tourisme Montréal: pages 18, 38 (left), 45 bombardier: page 27 (up) bCTQ: page 27 (down) CAE: page 29 Centre de Commerce Mondial: page 41 Marc-Antoine Charlebois: page 42 (down) Legal deposit bibliothèque et Archives nationales du Québec Library and Archives Canada 3rd quarter 2013 PRINTED IN CANADA Paper Rolland Opaque 50 Cascades Fine Paper Group © Montréal International, 2013
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