The cost of doing business in British Columbia can be much lower than in other top North American locations. Labour, power, and facility costs are generally lower, and so are corporate income tax rates.
Compared with the west coast of the United States, many industries can achieve total annual operating cost savings of up to 18 per cent. These industries include content development, electronics assembly, advanced batteries, and qualified international business activities.
Annual Operating Costs
(Index Vancouver = 100.00)*
Exchange rate for cost comparisons: US$1 = C$1.02
|Vancouver, British Columbia
|San Diego, California
|San Francisco, California
Source: KPMG Competitive Alternatives Cost Model; Ministry of Jobs, Tourism and Skills Training, 2013
*This index shows how much it would cost to operate in selected locations for every $100 of location-sensitive costs in Vancouver. Location-sensitive costs include labour, power facilities, and taxes.
**Registered in the International Business Activity Program. Assumes a maximum of 100 per cent corporate income tax abatement.
British Columbia’s affordable and reliable electrical power gives businesses a significant opportunity to reduce operating costs. Our rates are less than half those in Toronto and New York, and Boston and are very competitive with those of other North American cities. Our affordable rates and innovation in the clean energy field provide abundant and environmentally sustainable power resources.
- Reliable, renewable and low-cost hydroelectric power supplies more than 95 per cent of British Columbia's electricity needs. The rest is mainly natural-gas-fired power.
- A comprehensive transmission and distribution system delivers uninterrupted power to all regions of the province. BC Hydro has an Average System Availability Index of 99.935 per cent, even during extreme weather and other disruptive events.
- British Columbia is Canada’s second-largest producer of natural gas.
- Our Energy Plan promotes development of conventional and alternative power sources, such as wind and biomass power. It also promotes green “run of the river” projects, in which a river’s natural flow and elevation are used to create power.
Other Operating Costs
British Columbia offers notable savings on other key business costs, including real estate and labour. Factory lease rates in Vancouver, for example, are less than half of those in London. Labour costs are generally lower than those on the west coast of the United States.
Class A Office Rental Rates
US$ per square foot
Source: Cushmand & Wakefield, MarketBeat Across the Globe 3Q 2012
|Class A Office Rental Rates in Downtown Core
||Annual Rental Rates
|U.S - Seattle, WA
|Canada - Vancouver, BC
|U.S. - Los Angeles, CA
|U.S. - Chicago, IL
|U.S - Houston, TX
|U.S. - Austin, TX
|U.S. - Boston, MA
|Germany - Frankfurt
|U.S. - San Francisco, CA
|India - Mumbai
|Australia - Sydney
|China - Shanghai
|Singapore - Singapore
|India - Delhi
|China - Beijing
|Japan - Tokyo
|Hong Kong - Hong Kong
|U.K. - London, West End