Calgary has second highest business costs in Canada: study

 

Gina Teel, Calgary Herald

Published: Thursday, March 27, 2008

 

CALGARY - Calgary is now ranked the second most costly city in Canada in terms of business costs, says KPMG’s 2008 Competitive Alternatives study.

Calgary edged out Toronto to take over second place, behind Vancouver, which retains its No. 1 spot. Toronto, meanwhile, ranked fourth, behind Calgary and Chilliwack, B.C.

The study, last done in 2006, measured 27 significant cost components that are likely to vary by location, including labour, taxes, real estate, and utilities, which are applied to 17 business operations over a 10-year planning horizon.

Mark MacDonald, global director, competitive alternatives, KPMG, said the 2008 results for Calgary come as no surprise, given the significant economic success the city has experienced. With that success comes increases on the cost side, in inflationary pressures in the labour, property and facilities, he said.

“On the input side, which is what this study deals with, you have seen the result of economic success, and that is rising costs” he said.

Canada-wide, the study found the depreciated U.S. dollar is challenging Canada’s competitive edge.

gteel@theherald.canwest.com

KPMG’s 2008 Competitive Alternatives Study - PDF Download

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