The Greater Toronto Area GTA

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The Greater Toronto Area (GTA) Canadas Economic
Powerhouse GTA Manufacturing Overview
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Greater TorontoWhy the right choice!

• Economy - A highly diversified economy, a major
  contributor to Canadas GDP.
• Cost - Canadas business center, Toronto, is one
  of the lowest cost centers in the world.
• Labor - Has a well-educated and creative talent
  pool with a rich blend of cultures.
• Location - Toronto is central to North American
  business.
• Quality of Life - Toronto is an attractive
  location for any international business.

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A location in the GTA offers the best access to
North Americas top markets.
The GTA is within a 500 mile radius (one-day
drive or 1 hour flight) where you can access 135
million people, compared to 70 million for New
York at a comparable distance.
Source Ontario Investment Service.
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The GTA contributes 1/5th of Canadas GDP.
GTA has a population of over 5.5 million. The GTA
consist of 25 municipalities, including the City
of Toronto and 4 regions. The area of the GTA is
7,000 Sq. Km. or 2,300 sq. miles.
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Greater Toronto Area is the 5th Largest
City-region in the US Canada.
Sources 2003 Municipalities estimates, U.S.
Census Bureau (2003 Estimates), Greater
Washington Initiative.
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Immigration continues to be an excellent source
of diverse and highly skilled people for the GTA.
The GTA with 169 different countries of origin is
surpassed only by the U.N. with 190 member
countries.

• 44 of the GTAs population was born outside of
  Canada, the highest of Canadas metropolitan
  areas.
• Multilingual capabilities make the region an
  attractive location for firms doing business
  around the world, with over 100 languages spoken.
• GTA attracted over 27,000 individuals between the
  ages 15-29 in 2001.
• 50 of immigrants under the age of 35 have a
  university degree.

Source Census Canada 2001, The Toronto Star, Jan
22, 2003.
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The GTA offers businesses one of the most highly
diversified economies in the world.
Source Institute for Competitiveness
Prosperity, 2002.

• With a current labor force of 3.1 million, by
  2031,
• 4.1 million jobs will exist in the GTA.

Source Statistics Canada, 2000.
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Transparent access to all of North America

• GREATER TORONTO businesses have assured access to
  all400-million people inNorth Americas
  11-trillion market
• In addition to eliminating tariffs, NAFTA
  assures
• free transport of goods
• free movement of staff
• protection of investment and intellectual
  property
• product certification

Source CIA World Fact Book 2000
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The GTA is in close proximity to major U.S.
border crossings.

• Canada/U.S. Smart Border - focus on new
  technologies and infrastructure to improve
  movement of goods/ services.
• Commercial border crossings usually average less
  than 10 minutes.

Source Canadian Consulate General, Detroit,
December 2004.
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Ontarios Road and Rail Network
The CPR Intermodal Terminal in Vaughan is one of
the most advanced containerized freight
facilities in Canada. The CN Brampton location is
one of Canadas largest intermodal terminals.
The terminal handled over 565,000 units in 2002,
98 trains per week or 5,096 trains a year.
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Top ten manufacturing sectors by employment.
GTA 2005 (Total Manufacturing Employees
482,600)
16.7
Transportation Equipment
8.4
Food
8.1
Computer Electronic Product
At 11.2 Automotive is a key sub-sector of
Transportation Equipment
7.8
Fabricated Metal Product
7.5
Plastics Rubber Products
7.3
Chemical
6.8
Printing Related Support Activities
6.8
Furniture Related Product
5.7
Clothing Leather Allied Product
4.8
Machinery
0
10
20
30
40
50
60
70
80
Number of Employees (000's)
Source Ontario Labour Market Monthly Highlights
December 2005 Labour Force Survey, Statistics
Canada.
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Southern Ontario is also home to Canadas largest
concentration of advanced manufacturing firms

• Share close association with the automotive,
  electronic and plastics industries.
• Industry strength and support is evident through
  a focused and growing apprenticeship system
  supplying machinists and tool and die makers.
• Continued innovation and excellence in custom
  products have spurred new and growing
  sub-sectors robotics and automation, plastics,
  packaging and machine tools, compressors, pumps,
  construction and mining, materials handling
  equipment and sawmill and woodworking machinery.
• Ontarios broad advanced manufacturing base is
  evident in the GTA including motor-vehicle parts
  and assembly, electronics and appliances,
  plastic, chemicals and food processing.

Source Canadas Manufacturing Hub, Profile
Ontario 2004, The Core of Canadas Machinery
Industry, Ontario Investment Service, 2002.
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a large segment of these are located in the GTA
or within a 2 hr drive.

• Key subgroups (1) manufacturers of stand-alone
  production machinery and equipment, and (2)
  systems integrators.
• Diverse nature of the GTA and Southern Ontarios
  manufacturing economy means expertise and
  innovation in custom production technologies for
  various downstream industries
• Automotive assembly
• Automotive parts production
• Plastic and rubber products
• Electronics
• Examples of key players include General Electric
  Canada, Husky Injection Molding Systems, Kodak
  Canada and Xerox Canada, each with over 1,000
  employees in the GTA.

• Information communications technologies
• Biomedical equipment
• Pharmaceuticals
• Food processing

Source Toronto Business Market Guide 2004, The
Toronto Board of Trade.
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The GTA is home to over half of Ontarios
advanced manufacturing firms.
Source Toronto Business Market Guide 2004, The
Toronto Board of Trade.
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Aerospace sector in the Greater Toronto Area.

• 5.5 billion in aerospace products and services
  sold and exported to more than 80 countries from
  Ontario.
• The GTA is home to head office and major
  facilities of top aerospace and defense companies
• 19,000 people are employed in the GTA Aerospace
  sector
• Exports represent close to 70 of total revenues,
  with almost two thirds being exported to the U.S.
  and increasing penetration into Europe and Asia

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Key aerospace manufacturers in the Greater
Toronto Area.

• Company Employees
• Bombardier Aerospace 1000-4999
• Boeing Toronto Ltd. 250-499
• Honeywell International Inc. 1000-4999
• Northrop Grumman Canada Corporation 500-999
• Pratt Whitney Canada Inc. 500-999
• Spar Aerospace 500-999
• Menasco Aerospace 500-999
• MacDonald Dettwiler and Advanced Robotics Ltd.
  500-999
• Magellan Aerospace Corporation 500-999
• Messier-Dowty 500-999
• Northstar Aerospace Inc.
  500-999

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For the 2nd year in a row, Ontario surpassed
Michigan in vehicle production.
2005 Top Vehicle Manufacturing Jurisdictions in
North America
In Canada, the GTA is the 1 automotive cluster
servicing both domestic and international markets
Source Wards AutoInfoBank, February 2006.
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The GTA is the 2nd largest automotive cluster in
N. A.

• 6 major auto assembly plants
• Over 500 parts manufacturers
• 48 of Ontarios total vehicle production is
  based in the GTA
• 1.25 million vehicles in 2005

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2 billion since 2000
1.62 billion since 2000
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Industry leaders in automotive assembly and parts
manufacturing include
Source Automotive Parts Manufacturers
Association, 2004 (APMA)
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Ontario is the center of the Canadian plastics
industry and

• The Ontario Plastics Industry accounts for
• 63 of Canadian shipments of plastic products
• 61 of raw material
• 85 of mould makers
• 60 of employment in the Canadian plastics
  industry
• 60 of Canadian plastics firms and almost half of
  resin capacity

Source Ontario Investment Service Plastics
Ontario A Dynamic Industry Leader, 2003.
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the GTA is the heart of the provinces plastics
cluster.

• Ontario ranks 3rd highest in plastics output in
  North America, behind California and Ohio.
• The GTAs plastics industry employs roughly
  40,000 people, almost half of the Ontario
  plastics employment base (83,000).
• Fourteen of the top major plastics-related firms
  are headquartered in the GTA, accounting for more
  than 31,000 employees alone.

• 50 of Ontarios custom molders and composite
  fabricators are in the GTA
• 85 of provinces plastics machinery
  manufacturers
• 68 of provinces plastics processors and
• 40 of Ontarios plastics raw material suppliers
  are all in the GTA.

Source Toronto Business Market Guide 2004, The
Toronto Board of Trade.
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Plastics packaging-related companies in the GTA
Source Contact Toronto The Top Ranked
Employers in the Greater Toronto Area The
Toronto Board of Trade, 2001.
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The GTA ranks 3rd in terms of employment in ICT.
Employment Level in Major North American
Metropolitan Areas, Private Facilities of 100
employees, 2003
Source Greater Toronto Information
Communications Technologies Industry Profile
EB Data, 2004.
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Leading computer electronics manufacturers
include
Inc.
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Location of major semiconductor and printed
circuit board manufacturers in the GTA.
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Greater Toronto is the 4th largest Pharma/Biotech
cluster in North America.
Employees (Thousands)
Source Institute for Competitiveness and
Prosperity, 2002.
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Top Biopharma employers include
More than 30 firms with 100 plus employees and
most have major RD operations in the GTA

• Domestic Firms
• Apotex
• MDS Laboratories
• Patheon
• Novex Pharma
• Novopharm
• Taro Pharmaceuticals
• Janssen Ortho

• International Firms
• GlaxoSmithKline
• Aventis Pasteur
• AstraZeneca
• Bayer
• Novartis
• Eli Lilly
• CIBA Vision
• Pfizer

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When it comes to costs, the GTA offers very
attractive cost advantages relative to competing
jurisdictions.
Cost Index
Source KPMG Competitive Alternatives 2004,
revised February 2006.
Costs include labor, facilities ,
transportation, utilities and taxes. Index
(US100.0) CND 1.00 US 0.85
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Low Corporate Taxes
34 basic U.S. Federal tax rate

• Ontario has the lowest combined Corporate tax
  rate among US mfg. jurisdictions.
• Even if you receive a state tax holiday in the
  U.S., Ontarios combined federal and provincial
  taxes are lower than the 34 basic U.S. federal
  tax rate.
• There is no restriction on repatriation of
  profits.

Combined federal, provincial (or state), and
local income tax rates for large manufacturing
and processing firms. Source Ontario Investment
Service, 2004.

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Local universities colleges help advance the
innovation technological needs of industry.

• Academic Technology Research Centers
• University of Toronto Center for Information
  Technology
• Ryerson Polytechnic University Center for
  Computing Engineering
• York University Technology Enhanced Learning
• Centennial College Advanced Technology
  Institute
• Sheridan College Communications, Culture
  Information Technology, Center of Excellence
• Durham College Manufacturing and Information
  Technology Center
• University of Ontario Institute for Technology
  Manufacturing Engineering Program Integrated
  Manufacturing Center