Cost of Doing Business

It costs less to do business in New Brunswick and Greater Fredericton is one of the most cost-effective places in North America to operate.

CANADA RANKS AS LEAST-COSTLY COUNTRY FOR BUSINESS
Among the 11 nations examined, Canada ranked as the least costly place to do business with a cost index of 91, edging out Australia, with a cost index of 91.5. At the other end of the spectrum, Japan and Germany, with cost indexes of 113.9 and 123.8 respectively, earned the dubious distinction as the most expensive countries in which to do business.
By Larry Cusack and Stuart MacKay, Comparing Global Business Costs, Business Facilities:The Location Advisor Magazine

LABOR COSTS
Labor fringe benefits comprise up to 40 per cent of a payroll costs. New Brunswick has one of the lowest mandated wage benefits in North America at 16.24 per cent. While Fredericton’s average family income is above the Canadian national average, wage rates for high-demand professions like computer programming, engineering and mechanical trades are anywhere from five per cent to 15 per cent lower than anywhere else in North America.

Average Salary by Occupation - Fredericton has lower average salaries by occupation than most Canadian and US jurisdictions. Cost advantages in Fredericton are most striking in high-demand occupations like information technology and precision manufacturing.

Average Cost of Sites - Compared with nine jurisdictions in the Canada and United States, Fredericton has the lowest overall labor costs. Average labor costs in research and development, software and manufacturing sectors are consistently lower than other sites.

ENERGY COSTS
Much of Fredericton’s energy needs are serviced by NB Power — a provincial Crown corporation offering costs as low as 25 per cent of U.S. industrial rates.


Reliability is one of the hallmarks of energy supply in Fredericton: the electric power grid designed to ensure uninterrupted flow 24 hours a day, seven days a week.

While larger US and Canadian industrial centres suffer more and more costly and disruptive brown-outs, the lights are always on in Fredericton.

Enbridge Gas services Fredericton’s natural gas users. With plentiful natural gas reserves off the coast of Nova Scotia and the planned construction of an LNG terminal and extraction plant just one hour away, Fredericton has clean-burning, efficient fuel sources readily at hand.

REAL ESTATE
Land is plentiful in New Brunswick. Fredericton has many industrial and business parks offering high-quality, technologically-advanced commercial space at below-competitive rates. Lease costs per square foot are among the lowest in North America. Industrial lease and construction costs in the light manufacturing industry are among the lowest in North America. Fredericton’s flexible leasing arrangements and commercial tenancy legislation allow business to tailor occupancy arrangements to best suit their purpose.

	Canada Select - The New Brunswick Appeal 2005 Reference Source for the International Business Community A Site Selection Special Section, May 2005 Download (505 kb)
	Canada Select - The New Brunswick Appeal 2005 Reference Source for the International Business Community A Site Selection Special Section, May 2005 Download (505 kb)
	Canada Select - The New Brunswick Appeal 2005 Reference Source for the International Business Community A Site Selection Special Section, May 2005 Download (505 kb)
	Canada Select - The New Brunswick Appeal 2005 Reference Source for the International Business Community A Site Selection Special Section, May 2005 Download (505 kb)