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Attracting manufacturing investment to Niagara

Posted by Greg Chew on Aug 16, 2016 3:47:31 PM

advantages of investing in niagara for industrial manufacturers

General Electric, Northern Gold Foods, Atlantic Biodiesel, Cytec Canada and Welded Tube of Canada are just five examples of recent manufacturing investments in Niagara. Most notable amoung them may be GE, as their choice to relocate their gas-engine plant to Canada and then Welland, Ontario, was based on attractive financial incentives, location, available land and an aggressive pursuit of their business.

Niagara has become a region committed to growing forward and developing new strategies to attract and expand its manufacturing base. Over the past few years, new incentives have been introduced, a Foreign Trade Zone designation has been awarded, new research facilities have been built and transportation options have expanded.

This combination of factors has allowed Niagara to shine as a destination in Ontario worthy of manufacturing investment.


Canada as a manufacturing investment option

Area development, one of the world's most respected voices on site selection recently published an article positing Canada as a leader and a strong draw to foreign investors in the machinery, facilities and equipment industries.  This designation is due to a number of factors including corporate tax rates and cuts, tariff-free zones for industrial manufacturers, investment programs and research and development. The low Canadian dollar is also an attractive factor, allowing for dramatically reduced manufacturing costs.

 

Investment incentive: Strategic access

Niagara offers one of Canada’s most strategic locations for global businesses, offering access to all 460 million of North America’s consumers, with 50% of this population within a day’s drive. The advantage of Niagara’s location is heightened by its close proximity to the United States border. A combination of highway, rail, air and water transportation options allow for an ease of transportation of goods throughout North America.

With new transportation options expanding into the Region like Go Train access and daily flight service to Toronto, the Niagara labour market will grow.

 

Investment incentive: Cost advantages

The low Canadian dollar has dropped manufacturing costs for some foreign companies and multinational businesses by 15%.  Cost advantages also lie in Niagara’s development charge and tax incentive programs including the Gateway CIP and Niagara’s new designation as a foreign trade zone. One of the main cost advantages of manufacturing investment in Niagara is Canada's low corporate tax rates, the lowest amoung the G7, approximately 15% lower than major American cities. 

 

Investment incentive: Advanced manufacturing research and education support

The recently completed Walker Advanced Manufacturing Innovation Centre at Niagara College was built to support innovation and growth of Niagara’s manufacturing businesses. This school/research centre has created a supportive manufacturing environment in Niagara and its services are open to the over 850 small to mid-size manufacturers. Niagara’s skilled work force is also supported by Brock University in St. Catharines and McMaster University in Hamilton.

 

Investment incentive: Serviced industrial land supply

Heavy advanced manufacturers seeking serviced development land will find an abundance of options in Niagara. From Fort Erie’s Stevensville Industrial Park to Welland’s Canal Bank Road acreage, the options and locations are advantageous. Connecting with a Niagara commercial realtor and a Niagara economic development office will give you access to site selection support, access to key information and the expertise you need to navigate the industrial land options in Niagara.

 

Most importantly, Niagara offers a business friendly environment to manufacturers. The Regional and municipal economic development offices work collaboratively with manufacturers to facilitate a smooth development process. This practice of conducting business is the selling factor for investing in and relocating your business to Niagara.   

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Topics: Industrial development

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