Key Stats. Second highest small business concentration of major cities in Canada. - Statistics Canada, 2016

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2 Key Stats Second highest small business concentration of major cities in Canada. - Statistics Canada, 2016 Among the lowest business bankruptcy rates per capita of major cities in Canada. - Office of the Superintendent of Bankruptcy Canada, 2016 Highest head office concentration of major cities in Canada. - FP500 Database, 2017 In 2015, Calgary had the highest research and development expenditures among its Canadian peers: $826 per capita. - Deloitte, Benchmarking Calgary s Competitiveness,

3 Canada s Competitive Business Climate Canada ranks 1 st in Business Environment in the G7 and G20 The Economist Intelligence Unit, September 2017 Canada is ranks 2 nd in business and 2 nd overall in ease of starting a business in the G20 and 1 st in the G7 for lowest number of procedures and time required to establish a business Forbes, December 2016; Doing Business in 2017, The World Bank Group, 2016 Canada offers the lowest total effective tax rate* of the G7 *Sum of profit taxes, labour taxes and other taxes, PriceWaterhouseCoopers, Paying Taxes 2017 Canada ranks 1 st in potential for investment and growth in its economic infrastructure Global Infrastructure Investment Index, ARCADIS NV Consulting, May 2016 Canada ranks 1 st in Soundness of Banks in the G7 and 2 nd in the world Soundness of Banks World Rank, Global Competitiveness Report, Canada ranks 1 st on the Global Opportunity Index in the G7 and G20 for economic and institutional factors in attracting FDI Milken Institute, September 2016 Canada ranks 2 nd in Entrepreneurship of the G7 Global Entrepreneurship Index 2017, The Global Entrepreneurship and Development Institute, November 13, 2016 Canada s talent pool is the most highly educated among OECD countries Education at a Glance, OECD, September 2017 Canada ranks 1 st in the G7 in quality of life OECD, June 2016 Invest in Canada, October

4 Investment into Calgary De Beers Canada HQ Relocation Hainan Airlines Dominion Diamond HQ Relocation Company News Releases 44

5 FDI Investment into Calgary 14 FDI Projects in Jobs Created $339m Total Capital Investment Top 10 Companies with FDI Capital Projects ($million) Industry Sector Project Date Datto $ Communications August 2016 DHL Express $69.24 Transportation June 2016 doterra $43.32 Consumer Products June 2016 Bank of Tokyo-Mitsubishi (Canada) $22.04 Financial Services June 2015 Freepoint Commodities $22.04 Financial Services February 2015 PECO Pallet $20.16 Wood Products June 2015 IKEA $15.00 Retail June 2016 Woodside Petroleum (Woodside Energy) $13.52 Coal, Oil and Natural Gas January 2015 VeriClaim $8.14 Financial Services September 2016 ALE Roll-Lift $7.51 Industrial Machinery, Equipment & Tools April 2015 fdi Markets, January 2015 to December 2016; Company News Releases 45

6 Calgary CMA Businesses by Industry Real estate and rental and leasing, 2,405, 4.2% Professional, scientific and technical services, 11,767, 20.4% Management of companies and enterprises, 435, 0.8% All Industries: Finance and insurance, 1,880, 3.3% Information and cultural industries, 473, 0.8% Administrative and support, waste management and remediation services, 2,666, 4.6% 57,646 Transportation and warehousing, 2,260, 3.9% Educational services, 694, 1.2% Retail trade, 4,936, 8.6% Health care and social assistance, 4,475, 7.8% Arts, entertainment and recreation, 547, 0.9% Wholesale trade, 2,511, 4.4% Accommodation and food services, 3,324, 5.8% Manufacturing, 1,615, 2.8% Other services, 4,093, 7.1% Construction, 6,844, 11.9% Utilities, 97, 0.2% Mining, quarrying, and oil and gas extraction, 1,231, 2.1% Agriculture, forestry, fishing and hunting, 277, 0.5% Public administration, 79, 0.1% Unclassified, 5,037, 8.7% Source: Total with Employees, All Industries 58,780, Statistics Canada, June

7 Calgary CMA Business Establishments by Number of Employees 5-9 Employees 8, % Employees 5, % 1-4 Employees 37, % Employees 4, % Employees 1, % Employees % 500+ Employees % Employees % Source: Total with Employees, All Industries 58,780, Statistics Canada, December

8 Small Businesses per Capita Across Canada 37.4 Second highest small business concentration Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Source: Statistics Canada, CMA Population, 2016 and Canadian Business Counts, June 2017 Less Than 50 Employees (Per 1,000 Population) 48

9 Number of Self-Employed per Capita (per 1,000 population) Self-Employed per Capita and 10-Year Growth % % 37.8% % % % % % % 35% 30% 25% 20% 15% 10% 5% 10-Year Growth in Total Number of Self-Employed 0 Vancouver Edmonton Calgary Toronto Ottawa Montreal Alberta Canada 0% Source: Statistics Canada, 2016, per 1,000 Population 49

10 4,800 (2.7%) 2,100 (2.3%) 3,600 (2.2%) 10,900 (2.1%) 3,000 (4.1%) 6,700 (2.5%) 31,200 (14.4%) 24,000 (10.3%) 20,100 (17.6%) 27,900 (25.0%) 24,600 (24.0%) 19,000 (21.5%) 9,200 (9.6%) 19,800 (14.8%) 13,700 (13.3%) 50,700 (23.6%) 32,500 (24.2%) 32,500 (28.2%) 27,900 (21.9%) 10,900 (8.7%) 17,200 (22.8%) 24,000 (29.0%) 22,100 (21.0%) 9,200 (9.7%) 60,100 (30.9%) 54,100 (18.0%) 46,500 (14.4%) 27,500 (10.3%) 51,400 (10.1%) 82,000 (14.2%) 67,400 (22.9%) 74,500 (26.8%) 62,700 (23.0%) 137,900 (21.2%) 141,300 (27.6%) 125,300 (24.8%) Number of Self-Employed by Age Group 200, , , , , ,000 80,000 60,000 40,000 20,000 0 Vancouver Edmonton Calgary Toronto Ottawa Montreal Ages: Ages: Ages: Ages: Ages Ages 65+ Source: Statistics Canada,

11 City of Calgary Business Openings and Closures 4,500 4,000 3,842 3,795 3,500 3,000 2,500 2,674 2,444 2,435 2,000 1,978 1,500 1, Business Closures 5-Year Average ( ) Note: Exclusive of moves/relocations. Source: The City of Calgary Corporate Economics, October

12 Calgary CMA Number of Business Bankruptcies YTD Source: Office of the Superintendent of Bankruptcy Canada, Q

13 Business Bankruptcy Rates Across Canada Low business bankruptcy rates Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Source: Office of the Superintendent of Bankruptcy Canada, 2016, (Per 1,000 Businesses) 53

14 Head Offices per Capita (per 100,000 population) Head Offices per Capita Across Canada % 28.6% 35% Highest HQ Concentration in Canada % 15.9% % -11.1% % % % % 15% 5% -5% -15% 10-Year Growth Rate in Number of Head Offices 0 Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal 2017 Head Offices per Capita 10-Year Growth Rate ( ) -25% Source: FP Database, FP Database, Statistics Canada,

15 Number of Head Offices Across Canada Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal 2008 Number of Head Offices 2016 Number of Head Offices 2017 Number of Head Offices Source: FP Database, FP Database 55

16 Taxes Across Canada Competitive Tax Environment No payroll tax, no health care premiums and no PST. Vancouver / British Columbia Edmonton / Alberta Calgary / Alberta Saskatoon / Saskatchewan Winnipeg / Manitoba Toronto / Ontario Ottawa / Ontario Montreal / Quebec 2016 Total Effective Tax Rates (City Level) 35.3% 29.3% 30.1% 31.9% 36.3% 34.1% 37.7% 41.3% Provincial Sales Tax 7% 0% 0% 6%** 8% 8% 8% 9.975% 2016 Provincial Personal Income Tax 5.06% % 10% - 15% 10% - 15% 11% - 15% 10.8% % 5.05% % 5.05% % 16% % 2017 Provincial Corporate Income Tax (General) 11.0% 12.0% 12.0% 12%** 12.0% 11.5% 11.5% 11.8% 2017 Provincial Corporate Income Tax (Small Business) 2.0%** 2.0% 2.0% 2.0% 0.0% 3.5% 3.5% 8.0% 2016 Provincial Payroll Tax (Employer Health Premiums) 0% 0% 0% 0% 2.15% to 4.3% 0.98% % 0.98% % 2.7% % 2016 Land Transfer Tax 1% - 2% 0% 0% 0% - 0.3% 0% - 2% 0.5% - 2% 0.5% - 2% 0.5% - 3.5% 2016 Local, Provincial & Federal Gasoline Tax /L 23 /L 23 /L 25 /L 24 /L 24.7 /L 24.7 /L 33.2 /L 2017 Carbon Pricing* (per tonne of emissions) $30 $20 $20 $18 $18 $ Health Care Premiums (Annual) $0 - $900 $0 $0 $0 $0 $0 - $900 $0 - $900 $0 - $660 *Ontario and Quebec have cap and trade systems. Source: Trevor Tombe, UCSPP & Maclean's, December 2016 **As per Government of British Columbia Budget, April 1, 2017; Government of Saskatchewan, October 25, 2017; Government of Ontario, November 15, Sources: Revenue Canada, Government of Alberta, Government of British Columbia, Government of Ontario, Government of Quebec, Government of Saskatchewan, 2016 KPMG Competitive Alternatives: Focus on Tax Report; pwc Tax Facts and Figures, Canada

17 45.0% Calgary's Tax Advantage 41.3% 40.0% 37.7% 35.0% 30.0% 29.3% 30.1% 31.9% 34.1% 35.3% 10.8% 23.0% 25.0% 10.8% 10.9% 11.1% 15.5% 23.6% 20.0% 10.2% 15.0% 4.3% 5.2% 8.8% 6.7% 10.2% 10.0% 5.9% 5.0% 14.2% 14.0% 12.0% 11.9% 14.3% 8.2% 8.1% 0.0% Edmonton Calgary Saskatoon Toronto Vancouver Gatineau (National Capital Region) Corporate Income Taxes Other Corporate Taxes Statutory Labour Costs Montreal Source: KPMG Competitive Alternatives: Focus on Tax Report,

18 Estimated Commercial Property Taxes per $40.00 $35.00 $1,000 of Assessment FIGURES IN THIS CHART ARE CALCULATED BY MULTIPLYING THE COMMERCIAL TAX RATE BY 1000 TO GIVE THE TAXES PAID PER $1,000 OF ASSESSMENT. WHERE MILL RATES ARE APPLICABLE, THE MILL RATE IS MULTIPLIED BY THE MILL RATE FACTOR BEFORE CALCULATING THE RATIO. $37.75 Low commercial property taxes $30.00 $28.63 $26.40 $25.00 $20.00 $19.13 $18.45 $15.00 $13.86 $15.93 $10.00 $5.00 $0.00 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal It should be noted that The City of Calgary is consolidating the business tax (0.0427) with the non -residential property tax. This is an incremental process, culminating with the elimination of the business tax by Source: REALpac,

Reimagine Calgary. May 25, Calgary Economic Development s collaborative energy makes us a conduit, connector and catalyst Calgary.

Reimagine Calgary. May 25, Calgary Economic Development s collaborative energy makes us a conduit, connector and catalyst Calgary. Reimagine Calgary May 25, 2017 Calgary Economic Development s collaborative energy makes us a conduit, connector and catalyst Calgary. 1 Table of Contents 01 Setting the stage 02 Trends 03 Our Response