Alberta’s capital is No. 1 in midwestern North American in overall business costs, says a study by global professional services firm KPMG.

Edmonton also ranked No. 6 out of 98 world cities in this year’s Competitive Alternatives international cost-comparison study. The city’s score of 89.2 makes it No. 2 among world cities with populations of 500,000 to 1.5 million as well as first among 17 cities in midwestern North America. Canada was the overall cost leader out of 11 countries, with a nine-per-cent advantage over the United States.

Calgary is listed at No. 4 in the midwestern area, with a score of 91.4 overall. It trails Edmonton, Saskatoon and Winnipeg and is ahead of Salt Lake City and Colorado Springs.

Greater Edmonton achieved No. 1 rankings for cities 500,000 to 1.5 million in seven of 17 industries studied in the report: Agri-food, chemicals, electronics, medical devices, pharmaceuticals, telecom and back office. It was in the top four in all industries.

John Masters

“This report confirms that Edmonton remains one of the most cost-competitive cities in the world for business,” says Allan Scott, president of Economic Development Edmonton (EDE). “Remarkably, Greater Edmonton’s global-leading cost-competitive environment is being maintained in the midst of strong, sustained economic growth.”

In the 2002 Competitive Alternatives report, Edmonton ranked No. 1 in the world for cost competitiveness. The Conference Board of Canada projects Edmonton will grow by a robust 4.1 per cent in 2004, after posting three per cent growth or more in six of the past seven years.

Competitive Alternatives measures 27 significant cost components that are most likely to vary by location in North America, Europe and Asia-Pacific. The basis for comparison is the after-tax cost of start-up and operation over 10 years.

At the national level, the most expensive countries to do business were Japan and Germany.

Canadian cities continue to offer significantly lower costs than U.S. ones, even after allowing for the increased value of the Canadian dollar since 2002. “This is great news for Canada. As international companies determine where to invest and expand their businesses, this study will provide great evidence of the cost advantages Canada has to offer,” says Ivor Ruste, managing partner of KPMG Edmonton.

“The study results once again support Edmontonians who believe that ours is the best city, in the best province, in the best country,” says Ruste. “The low cost of conducting business combined with our superb quality of life makes Edmonton a very attractive place for companies and individuals . . .”