Doing Business in Manitoba
TOP 10 Reasons

What do Indian businessmen look for in a land, as distant as the Province of Manitoba in Canada? Does it have adequate and well-developed industrial infrastructure - such as land, power, water, roads and transport and communication and connectivity? How strategically Manitoba is situated in terms of market growth? What about the availability of skilled manpower? What about the living conditions and healthcare? The Land of Lakes and salubrious surroundings, where the costs of setting up a business is among the lowest in North America, provides answers to all these questions and many more. Manitoba boasts a multi-racial population of friendly people, well-qualified and skilled workforce and a healthcare system that is affordable. All these factors have influenced the prospective investors to make a beeline for Manitoba. No, wonder the investment growth has been remarkable in Manitoba for more than a decade. Here we list 10 top reasons for doing business in Manitoba.

1. Lowest Hydroelectricity Costs in North America
Powered by Manitoba Hydro's clean, reliable, renewable and low-cost electricity, Manitoba has a definite energy advantage. It has abundant hydroelectric capacity, the lowest published rates in North America, a high system reliability and superior power quality. A recent survey revealed that Manitoba is the most competitive in terms of published electrical rates for large industrial customers.
For example, electricity rates for large industrial power users in New York City ranges from 11.98 cents to 12.93 cents per kilowatt hour, while rates in Chicago range from 4.76 cents to 6.76 cents per kilowatt hour. Rates for large industrial power users in Manitoba range from 2.57 cents to 3.19 cents per kilowatt hour.

2. A Well-Educated, Highly Skilled Workforce
Manitoba workers possess high levels of education, training and skills, and are respected by employers for their productivity, creativity and loyalty. The presence of outstanding post-secondary educational and training institutions with low annual tuition fees ($3,350 on average $500 less than the Canadian average) ensures that companies have ready access to a strong supply of highly-qualified younger workers.
Manitobans are educated and highly-skilled, even by the standard of a country that has the highest post-secondary education participation rate in the world. Four universities including Western Canada's oldest and three community colleges, plus a variety of vocational and technical learning centers, ensure that Manitoba's workforce is highly trained and motivated. Their institutions offer specialized training programs that are developed in partnership with business to ensure that training reflects industry's needs. Combined with remarkably low employee turnover rates, our commitment to education and training gives your business a tremendous edge over the competition.

3. A Business-friendly “Can Do” Attitude
Government officials at all levels are willing to work together with business leaders, in a spirit of cooperation that's intended to help private sector companies get things done. The Premier's Economic Advisory Council, a province-wide partnership of business, labour, education, and community leaders, provides the government with advice on crucial economic issues and innovative solutions.
What the Government says in Manitoba: We Mean Business.

4. A Strategic Location
Manitoba is located in the centre of Canada and at the northern end of the Mid-Continent Trade Corridor, which passes through Texas into Mexico and connects businesses to a central North American market of 100 million people. Our Central Time Zone is a major advantage for service-sector businesses.
Manitoba is the truck transportation capital of Western Canada and has an estimated 400 for-hire motor carriers, of which over 90% operate either inter-provincially or internationally. Five of Canada's 25 largest employers in for-hire trucking are headquartered here. On average, over 1,000 trucks cross the Manitoba-U.S. border every day.
Winnipeg is the only city in Western Canada on the main line for both the Canadian Pacific and Canadian National Railways. It also has three rail links to the United States. Modern rail yards in Winnipeg can handle more than 5,500 cars per day, and inter-modal terminals can process more than 200,000 containers per year.
Open 24 hours a day and only seven km from downtown, the Winnipeg International Airport serves approximately 3 million passengers per year and has increased its daily flights to major Canadian cities and to U.S. hubs. Expansion plans are underway for a new terminal building at the airport, to be completed in 2009.
Churchill, Manitoba's ocean port on Hudson Bay, is linked to the North American economy by rail and is the optimal route to key European, Mediterranean and African port destinations for the American Mid-West.
From May 31 to June 2, 2006, Winnipeg, Manitoba will host “Hemispheria 2006”, a major international conference aimed at developing and strengthening economic partnerships in North America. Hemispheria will focus on 5 topics: Security and Quality of Life, Prosperity, Aboriginal Affairs, Urban Centres and the North American SuperCorridor. Attending the conference will be senior government and business leaders from Canada, Mexico and the United States.

5. Low Overall Business Costs
Manitoba has some of the lowest business costs anywhere. Office space and industrial land are inexpensive and readily available.
An independent study of business cost competitiveness in the G-7 nations conducted by KPMG in 2004 ranked Winnipeg as 11th of 98 cities studied. According to the study, Winnipeg has:
• a 3.3% cost advantage over Sydney, Australia;
• a 6.8% cost advantage over Belfast, Ireland;
• a 24.6% cost advantage over London, England;
• a 28.0% cost advantage over Frankfurt, Germany;
• a 37.5% cost advantage over Yokohama, Japan;
and compared with US cities:
• a 13.6% cost advantage over Minneapolis;
• a 13.0% cost advantage over Chicago;
• a 12.3% cost advantage over Dallas;
• a 14.2% cost advantage over Houston; and
• a 19.2% cost advantage over New York City.
In addition, our leading-edge, competitive telecommunications environment, with several alternative long-distance carriers, keeps rates low in Manitoba, and our location in the Central Time Zone gives Manitoba business-hours access to the east and west coasts of both Canada and the United States.

6. A Diverse, Modern Economy
Manitoba has one of Canada's most diversified, dynamic and innovative economies, helping to make our province the most stable economic performer in the country for the past five years. Last year, Manitoba's economy outperformed Canada in overall growth, with almost all industries posting gains. Personal disposable incomes also outpaced the national growth rate, helping push home construction investment to its highest level in 15 years.
Manitoba's diverse economic base includes a vibrant manufacturing sector producing aerospace components, buses, furniture, farm equipment, windows, clothing and outerwear. Manitoba makes it all!
Manitoba's ICT industry has internationally competitive expertise and products. The province hosts a wide array of ICT companies, including two large Manitoba-based multinationals, Manitoba Telecom Services and CanWest Global. This core strength is bolstered by the local operations of several ICT multinationals including IBM whose Manitoba operation employs over 500 employees and EDS who employs over 300 Manitobans.

7. A Great R & D Climate and the Fastest-Growing Biotech Sector in Canada
Manitoba is home to Canada's fastest-growing Biotechnology and Life Sciences sector. According to Ernst and Young's 2004 Global Biotechnology Report, Manitoba had an 80% increase in the number of biotech companies, compared with Ontario's growth of 20%.
The report attributed the province's success to their government's aggressive bio-tech strategy. They work with their universities and hospitals to help the scientific community identify products with commercial potential and have helped scientists develop business models.
Partnerships in growing clusters of public research institutions and research-based private sector firms give Manitoba an expanding international profile in agro and health biotechnology, pharmaceuticals, and medical and diagnostic services.
Manitoba's Canadian Science Centre for Human and Animal Health the only level 4 biocontainment facility in the world with both human and animal health in one location was recently named as the home of Canada's new Public Health Agency. Referred to as “CDC North,” the Agency is responsible for infectious diseases, emergency preparedness and chronic diseases in Canada.
After considering both the federal and provincial R&D tax credits, the after-tax cost of one dollar of corporate R&D expenditure in Manitoba is between 42¢ and 45¢, depending on the size of the firm. The substantial cost advantages of performing R&D in Canada are also available to US firms which have Canadian subsidiaries or those which chose to contract with a Canadian firm or enter into joint-venture relationships.

8. Affordable Cost of Living and Exceptional Quality of Life
Manitoba's affordable cost of living, competitive levels of taxation, excellent recreational and cultural amenities and attractive quality of life, makes it easy for companies to attract and keep good employees. Houses, auto insurance, electricity, university or college tuition, all are available in Manitoba at the lowest prices in Canada.
According to the Institute of Chartered Accountants of Manitoba, "The Manitoba Government has demonstrated considerable fiscal discipline in slowly ratcheting down its taxpayer supported debt to GDP ratio, a 19.3% decline over the 1998-2003 period. It's 2003 debt to GDP rate of 18.8% stands second lowest of the studied jurisdictions, a notable achievement and below the Canadian average of 23.8%."
In fact, a family of four in Manitoba earning $60,000 per year is left with about $17,000 per year more, after paying the basic personal costs of taxes, housing, insurance and utilities, than the same family in neighboring Ontario.
Manitobans spend their disposable income on a rich array of cultural, entertainment and recreation choices, including the Royal Winnipeg Ballet, Winnipeg Symphony Orchestra and Manitoba Theatre Centre; a variety of multicultural facilities and festivals; professional football, hockey and baseball teams; 130 golf courses; and the best walleye fishing in the world.
9. Affordable, High-Quality Health Care System
Our health care system is a huge comparative advantage for Canada and for doing business in Canada. The cost is shared across society. And that means that companies in Canada enjoy huge savings over other markets, particularly in the United States, where corporations often have to provide full medical insurance to their employees.
This adds to the cost of doing business. In fact, in the U.S. for example, the big three auto makers spend more on health premiums for their employees than on the steel that goes into their vehicles. Chrysler estimates that it spends US$700 on employees' health benefits for every car produced in the U.S., compared to US$233 for each car produced in Canada.
Furthermore, a recent survey showed that two-thirds of small business owners said that health costs were their biggest problem.
In 2003, the average annual cost of employment-based health insurance for a family in Texas was:
• Employee's share US$2,568
• Employer's share US$7,007
• Total US$9,575
In 2003, the average annual cost of employment-based health insurance for a family in New York was:
• Employee's share US$1,812
• Employer's share US$7,627
• Total US$9,439
Source: Kaiser Family Foundation
Furthermore, USA Today reported that US health insurance premiums have jumped an average of 40% from 2000 to 2003.
Manitoba does not have premiums at all.
Charles Baillie, CEO of Toronto Dominion Bank, publicly recognized the economic value of a public not-for-profit system: "In an era of globalization, we need every competitive and comparative advantage we have. And the fundamentals of our health care system are one of those advantages."

10. An Abundance of Water
Our greatest natural resource is our abundance of clean, clear water. With over 100,000 fresh water lakes, nearly 30 per cent of all the water in North America runs through Manitoba and drains into the Hudson Bay. This water powers the province, providing business with clean, affordable, reliable energy. It also powers Manitoba's tourism industry, offering Manitobans a bounty of recreational activities, from swimming and sailing in the summer to ice fishing in the winter.
Manitoba has the location, the people and the power to grow your business.
Manitoba We Mean Business.
For more information on doing business in Manitoba visit www.manitoba-canada.com