Manitoba's Action Strategy for Economic Growth
Supporting Investment
Investments in Manitoba deliver strong returns for investors and create new
economic growth, jobs and opportunities for Manitobans. Manitoba offers
investors a competitive and cost-effective business environment, a skilled
and well-educated workforce, excellent transportation links, low industrial
and commercial land costs, and electricity costs that are among the lowest
in the world.
Since 1999, Manitoba’s annual capital investment has increased by 48% from $5.4 billion to almost $8 billion. In 2006, Manitoba’s increase in capital investment was 14.2%, second highest among all provinces. In 2007, capital investment in Manitoba is expected to grow another 11.3%, more than double the 4.6% increase predicted for Canada as a whole.
Robust investment in both residential and non-residential projects added
strength to the construction industry in 2006. Led by a 42.1% increase in the transportation and warehousing sector and a 37.9% increase in the wholesale
trade sector, investment in construction is projected to grow by 13.7% in 2007.
Major investments in Manitoba planned or currently under way in 2007 include:
- Winnipeg Airport Authority - $585 million redevelopment project to modernize and expand the province’s air transportation capabilities;
- Husky Energy - $145 million expansion of its ethanol plant in Minnedosa to increase production capacity to about 130 million litres annually;
- CVRD Inco Limited – $135 million investment to modernize and expand its Manitoba operations;
- Health Sciences Centre – $35 million Siemens Institute for Advanced Medicine will focus on advancements in neurosciences, infectious diseases, advanced imaging and medical informatics; and
- Shape Foods – a $30 million facility under construction to produce natural Omega-3-rich flax oil and meal in Brandon that would be the first of its kind in North America.
The Red River Floodway Expansion represents a significant investment in the future by the federal and provincial governments. Construction to date has already raised the level of protection provided by this unique project to the level of a one in 300 years flood.
Manufacturing is one of the most important sectors of Manitoba’s economy,
employing approximately 70,000 people. In 2006, capital investment in
manufacturing increased by 16%, with a 30% increase expected for 2007.
Manufacturing shipments in 2006 increased to $14.2 billion – a 5.2%
increase, second among Canadian provinces and well above the 0.6%
decline nationally.
To encourage more investment by the manufacturing sector, Budget 2007 increased the refundable portion of the Manufacturing Investment Tax Credit to 50%. As well, Manitoba continues to participate in the Advanced Manufacturing Initiative which has assisted over 175 Manitoba companies to adopt efficient manufacturing practices to increase productivity in the workplace.
Investment in the mining and oil and gas sectors has also seen strong
growth. In 2006, investments in mining grew 20.4%, following a 28.9%
increase in 2005.
In 2006, PEAC recommended that the province move toward “single window” service delivery for business, with a focus on reducing red tape and adopting a more client-focussed service model to better support business.
Manitoba Competitiveness, Training and Trade is leading the initiative to improve service delivery to business, beginning with:
- expanding BizPaL: the on-line service that provides Canadian businesses with one-stop access to permit and licence information for all levels of government, delivered in partnership with federal, provincial and municipal governments, to include more Manitoba municipalities;
- introducing on-line filing for the Retail Sales Tax and electronic remittances for other business taxes; and
- broadening the use of the common business identifier to make it easier to do business with more areas of government.
Manitoba continues to encourage investment in the provincial economy by:
- making strategic investments in provincial infrastructure, including an additional $4 billion commitment for highways over 10 years;
- broadening the Community Enterprise Development Tax Credit to support direct investment in emerging enterprises; and
- maintaining a commitment to small businesses and the jobs they provide through sectoral training partnerships, mentoring services through BizCoach Manitoba and tax reductions.
