The Manitoba Advantage
| The Manitoba Advantage - (PDF size 2,020 k) |
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For many Manitobans, the heart of their province is “The Forks” of the Red and
Assiniboine rivers. For thousands of years, people have come to The Forks to
meet, trade and gather provisions. As early as 1,000 BC, Aboriginal peoples were
camping there for extended periods, taking advantage of this key crossroad in the
continental trade and transportation network.
With the arrival of Europeans, The Forks became an important location for both the Hudson’s Bay Company and the North West Company to store and ship supplies to trappers and furs to traders. Eventually, Fort Douglas and Fort Gibraltar (later renamed Fort Garry) were built near there.
Over the decades, the area was transformed from an outpost to a metropolis.
Manitoba, created in 1870, became the Gateway to the West and the heart of trade, commerce and production on the Prairies. Winnipeg, the new province’s capital, sprang up around The Forks and became the first home for tens of thousands of migrants coming west seeking opportunity. By 1891, Winnipeg’s population had rocketed to 150,000 from just 25,000 in 1871 as Manitoba became one of the fastest growing places in North America.
In 2007, Manitoba remains a critical component of the international economy. The province retains an integral role in a far-reaching trade and transportation corridor. The variety of goods and services produced has grown immensely. The community of Winnipeg, which developed from the temporary provisioning site at The Forks, is now one of North America’s major cosmopolitan centres, competing successfully in the global marketplace. Products and services are shipped from Manitoba to the rest of the world, produced by leading firms like Boeing Canada, Bristol Aerospace Limited, Standard Aero, Palliser Furniture Ltd., CanWest Global Communications Corp., Great- West Lifeco Inc., Investors Group, Agricore United, the North West Company, Motor Coach Industries, New Flyer, CVRD Inco Limited, Cangene, Biovail Corporation, Apotex Inc., Winpak Ltd., Pollard Banknote Limited and Bühler Industries.
Manitoba remains a focal point for both immigration and economic opportunity, a meeting place for people of many cultures and languages. Manitoba’s diverse cultural mix has now been enriched by decades of immigration from Europe, Africa, Asia and the Americas.
Along with English, French and First Nations languages like Cree and Ojibway, you will
hear Manitobans speaking languages like Tagalog, Chinese, Vietnamese, Japanese, German,
Icelandic, Ukrainian, Polish, Italian, Portuguese, Spanish, Hindi and Punjabi.
With more than 10,000 new immigrants making Manitoba their home each
year, the province’s cultural fabric will continue to strengthen.
A vibrant business sector, economic opportunity, a rich cultural history and high levels of immigration – these are all part of Manitoba’s personal and business advantage. A unique set of assets that we call “The Manitoba Advantage” includes:
- a productive, well-educated and multilingual labour force
- an extremely favourable business cost environment, including competitive office and land costs, low construction costs and affordable taxes
- one of North America’s lowest electricity costs with highly reliable, renewable and environmentally responsible hydro-electricity
- modern and extensive communications infrastructure
- an extensive network of research and development facilities, supporting innovation and technology diffusion
- a convenient mid-continent location in the North American central time zone
- cost-effective transportation links and intermodal facilities providing shipping by road, rail, air and sea
- an extremely favourable cost of living, including among the lowest auto insurance rates and gasoline taxes in Canada
- reliable and accessible public services, including quality universal public health care and education
- safe communities, a dynamic cultural and artistic community, and an attractive natural environment within easy reach – all of which contribute to an unsurpassed quality of life.
This budget paper provides details on The Manitoba Advantage, including business and personal costs and taxes, facts on Manitoba’s quality of life and Manitoba's Arts and Culture Advantage.
What is The Manitoba Advantage?
Manitoba has the most stable provincial economy in Canada. Over the last
ten years, real GDP growth has been most consistent among provinces. To a
large degree, this stability stems from the diverse economy. No single industry
dominates the economic landscape. Rather, the province is home to several
important industries producing a wide range of industrial and consumer
goods: aerospace, bus manufacturing, food processing, health products
and research, financial services, cultural industries, electricity, chemicals,
agriculture and transportation. This economic certainty contributes to a more
stable workforce and a predictable local business climate.
Manitoba’s published hydro-electricity rates are among the lowest in the world. Manitoba Hydro, one of North America’s major electricity companies, has generating capacity of over 5,000 megawatts (MW) and tremendous potential for future growth. Over 98% of the province’s electricity is generated by clean, reliable and environmentally desirable water-powered facilities. In 2006, Manitoba became home to a new 99 MW wind farm, adding even more clean energy supply to Manitoba’s electricity portfolio.
Manitoba is located at the heart the mid-continental trade corridor. Winnipeg is the largest distribution centre between the Pacific coast and Toronto, and the only major city between Vancouver and Thunder Bay with direct U.S. rail connections. These factors position Manitoba to further expand trade and transportation links. Winnipeg’s extensive and modern rail car marshalling facilities can handle over 5,000 rail cars per day. Several of Canada’s top for-hire trucking carriers are headquartered in Winnipeg. Over 500 for-hire motor carrier firms operate in Manitoba, and 90% of these operate interprovincially or internationally. Together, Manitoba’s intermodal transportation facilities offer substantial flexibility and cost savings to business, with ready access to the world’s largest market.
A flexible and convenient air transportation system is vital to business success. Winnipeg James Armstrong Richardson International Airport is one of the few major North American airports that operate 24 hours a day. The airport is also one of the most reliable in the world, averaging less than two hours down time per year. It offers a broad range of services, including international carriers, commuter airlines, jet freight and extensive cargo and courier facilities. In 2006, it served a record-high 3.4 million passengers, an increase of five per cent from 2005, and moved over 155 million kilograms of air cargo. Currently, the Winnipeg Airports Authority is undertaking an extensive, multi-year capital improvement program with total investment of $585 million, including the construction of a new air terminal building. The project will be completed by the end of 2009.
Churchill is the only deep-water port in the prairie region. Located on Hudson Bay, the
port brings Atlantic Ocean trade to Western Canada. The Port of Churchill, owned by
OmniTRAX Inc., offers shippers major cost advantages for ocean shipping
to and from Europe, Africa and Latin America. The Port has four deep-sea
berths to allow loading and unloading of cargo and grain from vessels with
up to 60,000-tonne capacity. Last year, Churchill saw 488,000 tonnes of
goods go through the Port.
Manitoba has an abundance of natural resources. The mining industry extracts and processes a diverse mix of minerals including nickel, copper, zinc, cesium, tantalum and oil. Together, these products were worth $2.5 billion in 2006. Manitoba has a large and long-established forestry industry that produces paper, newsprint and lumber. The inland commercial fishing industry is one of Canada’s largest, accounting for one-quarter of Canada’s commercial freshwater catch. A temperate climate, rich soil, fresh water and a large land base have made Manitoba a key agriculture producer. Careful management of Manitoba’s natural endowments ensures the sustainable development of these resources now and in the future.
Manitobans enjoy advanced connectivity through a comprehensive telecommunications infrastructure. Broadband services are widely available and the extensive cellular network covers virtually all of the province’s population.
Research and innovation continue to play an important role in Manitoba’s economic growth and diversification. The province has a strong and growing knowledge cluster in a number of fields, although the research and development (R&D) presence is most notable in life sciences. Private industry, government and post-secondary institutions all contribute to the province’s growing R&D infrastructure.
Manitoba's Investment Boom |
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| Manitoba is in the middle of a capital investment boom. Total capital investment since 2005 is up 27%, double the national increase. Both private and public investment have increased significantly, with private investment up 18% – the strongest in Canada along with Alberta – while public investment is growing 34%, third strongest among provinces. Private capital spending in Manitoba has increased for 16 consecutive years, the longest private capital investment growth streak in Canada. The Conference Board of Canada forecasts that total investment spending will remain strong in 2008 with projected growth of 9.7%, second highest among provinces. |
Manitoba remains committed to providing quality public services such as
health care. There are no premiums or personal charges for medical services
in Manitoba for either employers or individual Manitobans. This is a major
advantage over U.S. locations for both businesses and residents. In the U.S.,
employers offering benefits paid an average of almost US$11,500 per employee
for family health care insurance in 2006.
Having the skills and knowledge to take on the challenges of the 21st century is a prerequisite for a prosperous and growing economy. Manitobans enjoy a quality public education system, including affordable, high-quality post-secondary education opportunities in several universities and colleges. Higher education continues to be affordable in Manitoba, with undergraduate tuition among the least expensive in Canada. Over 21,000 students attend the University of Manitoba, the largest of Manitoba’s five universities, on a full-time basis with another 5,600 attending part-time studies. The University offers a wide range of post-secondary programs, including graduate programs, sciences and arts, medicine, law, architecture, fine arts, engineering and agriculture. Another 13,500 students are enrolled in full- or part-time study at Manitoba’s other four universities. As well as university study, almost 15,000 students are enrolled in full- or part-time study at Manitoba’s three community colleges.
Competitive operating costs and taxes have made Manitoba one of the least expensive provinces in Canada to do business. More details on Manitoba’s business cost advantage can be found in Appendix 2, Manitoba’s Competitive Environment for Manufacturing.
Manitoba’s Quality of Life Advantage
Manitoba’s capital, Winnipeg, is a growing cosmopolitan centre of 700,000,
and workers enjoy the benefits of convenient and community-minded
living. The average commuting distance to work in Winnipeg is about seven
kilometres, the lowest of any Canadian city with population over 500,000.
With half of the province’s population reporting voluntary service, it is clear that Manitobans care. Manitobans are among the country’s leaders in terms of volunteer activity with community, social and charitable groups. Similarly, more Manitobans donate to charity on a per capita basis than residents of any other province or territory in Canada. This reflects Manitobans’ community spirit and long tradition of helping others. The Government of Manitoba also provides indirect contributions to culture through tax credits on charitable donations. In 2004, over $639 million was donated to all registered charities in the province, including $333 million from individual taxpayers. Through charitable donations tax deductions, Manitoba contributed $100 million in 2004, including $53 million in tax credits to individual taxpayers.
Winnipeg has an active and vibrant artistic and cultural scene, including the
Winnipeg Art Gallery, the Manitoba Museum, the Royal Winnipeg Ballet, the
Winnipeg Symphony Orchestra, the Manitoba Theatre Centre and many other
live theatre groups. Manitoba also boasts many contemporary cultural attractions.
Manitoba’s diverse population has created a rich and rewarding mosaic of cultural and artistic accomplishments. For more details, see The Manitoba Arts and Culture Advantage.
In November 2004, the new $135 million, 15,000-seat multi-use sports and entertainment facility, the MTS Centre, opened in Winnipeg. With superb acoustics and excellent sightlines, the world-class MTS Centre venue is drawing numerous entertainment events to Manitoba. In 2006, an entertainment industry survey showed that the Centre had become the third-busiest venue in Canada and was among the top 30 venues in the world. The location of this state-of-the-art facility in downtown Winnipeg has also acted as a catalyst for further development of Winnipeg’s downtown district.
Manitoba has a long sporting tradition. There are professional sports teams in
the Canadian Football League, American Hockey League and the Northern
Baseball League. The sport of golf came to the province in the early 1800s
and now, with more than 120 golf courses, Manitoba has one of the highest ratios of golf
courses to golfers in Canada. Manitoba also has the second-highest golfing participation rates
in Canada with almost 30% of Manitobans teeing off in the province last year. In 2006,
Manitoba played host to the Grey Cup. In April 2007, Manitoba is hosting the International
Ice Hockey Federation World Women’s Championships.
Manitobans respect and enjoy their natural environment. Beaches, lakes, rivers and parks are integral parts of Manitoba’s quality of life. Manitoba is a province of 100,000 lakes –you’re never far from sports like fishing, canoeing, kayaking, sailing or swimming, or to just relax at one of Manitoba’s world-class beaches. Proximity to lakes and affordable vacation homes has given Manitobans one of the highest rates of vacation home ownership in the country. Winnipeg is green – the city is home to the largest urban forest park in Canada, and Winnipeg is also home to the largest mature elm tree urban forest in North America. Winters offer extensive family recreation opportunities for skiing, curling, snowmobiling and (of course) hockey! Whether you are an observer or a participant, the choices for recreation are almost endless.
Conclusion
Budget 2007 builds on Manitoba’s considerable advantages. To show Manitoba’s cost competitiveness in more detail, two appendices are attached. The first, Interprovincial Comparison of Annual Personal Costs and Taxes, compares provinces’ living costs and tax levels for a variety of family types. The second, Manitoba’s Competitive Environment for Manufacturing, provides a detailed comparison of the taxes and costs faced by representative manufacturers in various Canadian and U.S. cities.
