Executives across the United States perceive Canada as having a less favourable business climate than the U.S. in almost every aspect, according to the results of a Development Counsellors International survey.
Respondents were asked to compare the two countries on 14 different factors that would be used in a decision of where to locate a business expansion or new project. Those surveyed responded overwhelmingly that the U.S. had the better business climate.
Proximity to customers and presence of research institutions were the two factors that the executives saw as the most lacking in Canada when compared with the U.S., with 96% and 91.2%, respectively, choosing the U.S. as the better option.
The respondents also said the U.S. had was better in terms of quality and availability of sites and buildings (75.5%) and efficient transportation systems (71.1%).
Canada was selected by 58.6% of respondents as the better choice when it comes to having a business-friendly government. However, just under half of those surveyed – 49.5% – said that Canada’s overall tax burden was worse.
The only other category in which Canada scored higher than the U.S. was in quality of life, with 50.5% choosing the former.
The other categories in which the U.S. was seen as more attractive than Canada were:
- availability of a skilled workforce (68.3% favoured the U.S.);
- competitive incentives (68.1%);
- ability to recruit from outside of North America (61.8%
- low overall operating costs (59.2%);
- competitive labour costs (58.0%);
- availability of worker training (57.6%);
- utility costs (54.6%); and
- low overall tax burden (50.5%).
Those surveyed associate Canada with having a pool of skilled workers. The survey asked executives to name phrases or words that come to mind when they think of Canada, and the third most common response was “well-educated and quality workforce.” The number one choice was “cold,” and number two was “hockey.”
When it comes to where in Canada the executives would consider locating a business or project, Ontario was by far the top choice, with 80.4% saying they would consider that province, followed by British Columbia (30.4%) and Quebec (28.6%).
The complete report can be found here.
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