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Invest in PEI Prince Edward Island was recently ranked by a KPMG Study as among the most cost effective sites in North America to operate a business. PEI has the infrastructure, the workforce, and a government committed to business development and a strong economy, as well as fostering one of the best business environments in North America.
- A growing cluster of Aerospace companies are now taking off on
Prince Edward Island by taking advantage of the tax advantages in
Slemon Park. - Prince Edward Island is committed to the technologies of life through
the expansion of Life Sciences organizations. - Proximity to markets, competitive wage rates and a skilled workforce
are only a few of the advantages that has made the province such
an attractive destination for diversified manufacturing companies. - Prince Edward Island has a tradition of quality food products and
companies in Food, are taking advantage of this reputation. - Whether multimedia development, call centres or IT beta testing,
Prince Edward Island is the Smart Province for Information Technology
in Canada. - Film, television and new media are making a scene on Prince Edward Island.
THIS PROGRAM IS DESIGNED to assist Island businesses develop from start-up through to international exporting. Eligible projects for capital contributions cannot exceed $40,000 in eligible capital costs. Eligible projects for marketing assistance must not exceed $20,000 in eligible project costs. This program has two sub-programs:
Applicants engaged in retailing and services (to business or consumers)
are ineligible for assistance. Eligible activities are:
Eligible activities are:
The government of P.E.I. is committed to the successful establishment
of new business on Prince Edward Island. Prince Edward Island's smaller size offers more flexibility and quicker response time from key decision makers - critical factors when locating, relocating or expanding a business. If you want to develop a business idea that makes good business sense and makes good sense for Prince Edward Island, they will do everything possible to make it happen. - There Are a lot of People Working for You Premier Pat Binns often takes an active role in the assessment and planning of government involvement in projects. The interest is real, because good business opportunities are taken very seriously here. Prince Edward Island Business Development, the provincial business development corporation, has people devoted to making your business a success story on Prince Edward Island. That creates a definite advantage for aspiring business people. This office works every day with federal government representatives at the Atlantic Canada Opportunities Agency and Human Resources Development Canada to put together incentives and services to develop business on Prince Edward Island. - How They Work Like any good business, it takes a customer-first approach. This approach has worked, with numerous examples to prove it. McCain Foods opened a $40 million food processing plant and waste treatment facility just 12 months after their first call to government. Consider the time for legal and financial negotiations, complete environmental assessment, design and construction, and you can see that the government didn't hold anyone up. Watts Communications is an even more interesting case in point. A scant 90 days after announcing their plan to open a new call centre in Charlottetown, Watts opened its doors for business. The site? The former offices of Prince Edward Island Business Development. Within just 14 days of completing the original agreement, government moved its own people to different accommodations to provide the location and amenities Watts required.
- The Bottom Line Imagine the possibilities with a government partner who believes that its success lies in your success.
The purpose of this programme is to provide new and expanding industries, in all areas of PEI, with rental incentives similar to those available in the Summerside and Charlottetown industrial malls. A one-time financial assistance package is available to manufacturers and processors for leasing space, in any community on the Island, for the establishment or expansion of an eligible business. Assistance is in the form of a rental subsidy, to a maximum of $5 per square foot (not including utilities, taxes, inside maintenance, etc.), with a maximum term of one year, payable on a monthly basis. - Eligibility - Industrial Malls Incentive Program
The program also includes a student component for a $3,000 loan repayable by October 31 of the year in which the loan is made. Applicant must make a cash equity contribution in the business
equal to 30 percent of the loan; for students, the equity requirement
is 20 percent and may be in cash or in kind.
Aerospace is one of the fastest growing sectors of the Prince Edward
Island economy. This sector now represents 20% of total provincial
exports and the industry continues to gain momentum. Slemon Park, an industrial park located just outside of Summerside, is a 1,500 acre property, which includes an airport with two runways and numerous well maintained hangars ranging in size from 25,000 to 300,000 square feet and houses such companies as Honeywell, Atlantic Turbines, Testori Americas, Wieble Aerospace and TubeFab. Additionally, the Park has an on-site residential community with a full range of recreational facilities. A 20 year tax rebate incentive program took effect on January 1, 1993 and applies to eligible companies which establish operations at Slemon Park, Prince Edward Island. Eligible companies are defined as those engaged in aviation or aerospace-related businesses, which may include, but is certainly not limited to, original equipment manufacturers, strip and paint shops, repair and overhaul operations, training and various aviation support businesses. The tax rebate incentive program includes the following three taxes: - Corporate Income Tax - A full rebate annually on all Corporate Income Tax paid to the government of Prince Edward Island by aviation-related businesses for operations conducted at Slemon Park, Prince Edward Island.
- Tax Advantage
Note 1 - 1996 Canadian Average excluding PEI
- Objectives: - To create and stimulate employment and investment by increasing opportunities for Prince Edward Island residents working in the Prince Edward Island film industry for skills development, employment, creative expression and international marketing of film products; - To encourage and assist the development of the private-sector film and video industry in the Province in the areas of funding, marketing, promotion, training and education; - To increase the value of the Prince Edward Island economy; - To increase the national and international visibility of Prince Edward Island. Prince Edward Island Business Development encourages and supports those productions which have the greatest level of Prince Edward Island creative elements, including personnel. To fulfill these objectives, Prince Edward Island Business Development will offer programs of loans and investment to support film and video production activity in Prince Edward Island. In addition, Prince Edward Island Business Development will continue to offer a Locations Information Service.
The Prince Edward Island government through its lead business development agency, Prince Edward Island Business Development, has targeted the food industry for further growth and development. - Natural Attributes Spell Competitive Advantage The province is strategically located on the eastern seaboard of North America in close proximity to the lucrative New England and Mid-Atlantic markets. With the access to deep-sea ports, Prince Edward Island is a natural choice for firms looking to the European marketplace, or European Union firms looking at a beach-head for North American markets. - Attention low cost producers - Keen and Capable Partners - Product/Process Research and Development - Market Research and Development - Training - Capital/Working Capital Financing - Site Value
- Government Leads By Example - Advanced Infrastructure - Customized IT Training - Growing A Skilled Labour Pool - Ideal IT Beta Test Site - Call Here For Call Centres - Building An IT Culture - Community Access Program (CAP) - Information Technologies Association of PEI
- A loyal, accessible and increasingly skilled labour pool; - An advanced telecommunications infrastructure featuring ATM broadband technology; - Dynamic partnerships among government, education and private sector IT companies; - An ideal home for beta testing and pre-commercialization of IT products and solutions; - A world-class call centre site location; - A government committed to the information technology industry and the development of a friendly IT culture;
The Government of P.E.I. has identified life sciences, and in particular
biotechnology, as a priority sector for future economic development.
With historical strengths in the primary production sectors, the
Province enjoys a highly capable science research and development
life science community with the capacity to support private sector
endeavours in the application of the technologies of life science. - R&D Community
- Labour - The Value Proposal - Training Facilities - University of Prince Edward Island (UPEI) provides undergraduate degree programs in business administration, engineering, arts and sciences, nursing science and music. In addition, they have preparatory courses for medicine, law, dentistry and architecture and graduate degrees in education and veterinary medicine. - UPEI Atlantic Veterinary College is a teaching and research facility as well as an industry resource centre for Atlantic Canada. Since their start in 1991, the Atlantic Veterinary College has developed an international reputation specializing in aquaculture and veterinary pharmaceuticals. - Holland College offers 73 competency-based programs. Several of these programs have been developed as a result of special employer requirements. For example, Aircraft Maintenance Technician, Gas Turbine Repair and Overhaul Technician, Call Center and Customer Excellence Program, Welding Fabricator, and the Wood Technology Program, to name a few. - Private Training Facilities offer a variety of programs to upgrade and enhance employee business skills. - Business Facilities - It Costs Less to do Business in PEI
The Call Centre Industry in PEI Prince Edward Island provides call centres with a state-of-the-art telecommunications infrastructure; unparalleled service and ongoing site support; a loyal, educated and accessible work force and one of the most competitive business operating environments in North America. When it comes to call centres, Prince Edward Island is positioned as a world leader. Prince Edward Island is serviced by a submarine fibre optic cable connection to the national network and a second fibre optic connection via the Confederation Bridge. Each individual system is capable of carrying the entire network volume. All long-distance voice, data, and video switching is carried province wide on a 100 per cent digital network. The benefits of locating a Call Centre in Prince Edward Island are numerous, while many factors contribute to the overall business environment there is much evidence to indicate that Prince Edward Island would be a smart place to establish a call centre. On almost every tax that applies to business, Prince Edward Island has the lowest or near the lowest rate in Canada. For the call centre industry, Prince Edward Island has eliminated a number of taxes, there is no sales tax on toll free (800) inbound calls and no sales tax on outbound calls greater than 250,000 minutes. In a recent KPMG study comparing business costs found in 64 cities in Canada, the US, Europe and Japan. Charlottetown, Prince Edward Island ranked the third lowest cost city in which to operate a business. Prince Edward Island is noted for its low cost of real estate, both commercial and residential. Land costs for urban and suburban property is the lowest in Canada. A lower cost of living, affordable housing and low inflation rates have provided wage costs in Prince Edward Island that have been approximately 20 percent less than the Canadian average. In the call centre industry, hourly rates range from $8 to $11 (CND$) per hour for customer service agents with varying increases based on experience, bilingualism and technical expertise. Supervisor wages are between $11 and $16 per hour. Of those not working in Prince Edward Island who want to work, 44 per cent are actively seeking employment or attending school. Programs and facilities in the Prince Edward Island education system are second to none. Holland College is Prince Edward Island's community college with 13 campus locations across the Province. Based upon the present expected growth in call centre employment in Atlantic Canada, Holland College has developed the Call Centre and Customer Service Excellence Program. Holland College customized the training program to meet the needs of the call centre industry. Prince Edward Island is a bilingual province and ranks fourth in Canada in terms of bilingual population at more than 10 per cent. The number of residents aged 15 to 19 who are bilingual, increased 100 per cent in the past decade. The Education record is the best in Canada for French. The skills and quality of Prince Edward Island workers regularly exceed the expectations of employers. One in four workers here has been with the same employer for 11 years or more. One in ten workers has 20 years' tenure. The average job tenure is 91 months. Time lost to strikes and labour disputes is the lowest in Canada. Prince Edward Island Business Development works closely with several key development partners, including Aliant Inc.& Island Telecom Inc. as well as Holland College. These alliances ensure the development project is managed with a "provincial" focus in mind. Island Telecom Inc. is Canada's first province-wide broadband network enabling delivery of high-speed Internet content for industry, education, and government. Island Telecom can provide the fully redundant, fibre optic network required by world-class call centres. Scot MacDonald, Account Executive for the Information Technology sector of Prince Edward Island Business Development states "The Province is home to approximately a dozen call centres, two of the larger centres Watt's Communication and Online Support Inc, are inbound, technical support centres. Watt's Communications Inc. operates three separate facilities in Prince Edward Island and also has operations in Tasmania, Australia. Watts has more than 400 work stations and is just completing their third expansion since 1996. Online Support Inc. (OLS) employs more than 300 industry specialists providing two million support calls since 1996. OLS is currently building its second Charlottetown call centre facility after experiencing rapid growth in the internet service provider (ISP) customer support sector." "The Province has experienced significant growth in the inbound call centre business" stated Scot MacDonald, "The latest call centre to open in Prince Edward Island is Canshop.com, an online shopping site with head offices in Ottawa, Canada. Canshop.com located their Customer Relations Management centre in Montague, a small town located in the eastern end of the province. This Ontario-based company's decision to locate their state of the art customer contact center in Prince Edward Island provides an excellent example of how Prince Edward Island is being recognized as a competitive place to do business and that it can support the newest technologies in customer contact centres from anywhere within the Province." Scot noted, "The Province chooses not to develop inflexible programs that limit the ability to meet the needs of business owners seeking assistance. P.E.I. provides assistance to fit the needs of the business owner and based upon the business case. Projects must make sense for the developer and the Province of Prince Edward Island. The goal is really simple - to create success for you and your company."
Prince Edward Island Business Development Prince Edward Island (PEI) has gained a reputation for being an excellent place to start or expand a business. This is particularly true for the manufacturing sector. According to a recent KPMG study, Charlottetown, PEI is the lowest cost city (out of 64 studied across North America, Europe, and Japan) from which to operate a manufacturing business. The province has a readily available skilled workforce; it has a good infrastructure for producing and exporting; it's location provides easy access to markets in Europe and along the Eastern Seaboard. It has an open government that is flexible to accommodate business needs. The skilled labour force is, in part, due to the excellent training facilities available on PEI. The University of Prince Edward Island provides students with a high quality education. The Island's training institute, Holland College, has state-of-the-art programs in the specialty areas of welding and metal fabrication, electronics, and aerospace, just to name a few. PEI's telecommunications infrastructure is another attractive advantage for doing business on the Island. PEI is connected across the province and to the rest of the world via a broadband network, enabling business to flourish in both urban and rural areas. Manufacturing has become an area of significant growth for the province. This sector of the economy has increased by 71 per cent in the last five years and has become a major contributor to the province's export market. Exporting on PEI has doubled in the last five years. Now, close to 200 Island companies export their products or services from PEI. A major contributor to this increase was the opening of the Confederation Bridge. The 13 kilometer bridge connects Canada's smallest province to the rest of the country, improving upon the distribution of products to and from the Island. This link is permanent and provides easy access year round. The aerospace industry in PEI represents 20 per cent of the province's total exports. Slemon Park is an aerospace business park located outside of Summerside, PEI. The Park is a 1,500 acre property that includes an airport with two runways and numerous, well-maintained hangars ranging in size from 25,000 to 300,000 square feet. It houses such well-known companies as Allied Signal, Atlantic Turbines International, Testori Americas, Wiebel Aerospace and Tube-Fab. As the Park has grown so have the companies that do business there. Testori Americas provides comprehensive interior packages for aircraft and mass transit vehicles, including composite panels, luggage bins, and related components. In 1994, when Testori Americas set up shop in Slemon Park, it had 13 employees and total sales of $1 million. Today, the company has over 70 employees and $4.5 million in sales a year. Prince Edward Island Business Development (PEIBD) leads the business development effort for the province. Its role is central and critical to the government's overall objective of advancing sound business development initiatives. PEIBD works with manufacturing companies by tailoring programs to fit their needs, being as flexible and versatile as possible to attract investment to the province. PEIBD provides leadership in the implementation and support of economic development; solicits and supports investment, creating jobs and wealth for PEI; actively supports small business; encourages entrepreneurship and investment-risk sharing; actively promotes the province as a competitive place to do business; and provides leadership in trade development and export initiatives. While agriculture, tourism, fisheries still remain the three primary industries for PEI, non- traditional areas, such as manufacturing, are gaining in recognition.
- Prince Edward Island - October 2000 The province is enjoying a high level of consumer confidence in the wake of tax cuts and strong employment growth. After hovering in the 1.5 - 2 per cent range in the past two years, employment growth in the first eight months this year jumped to 6.5 per cent. The surge in employment will likely push the Island's jobless rate down three percentage points to the 11-12 per cent range in 2000. This would represent PEI's lowest jobless rate in two decades and a substantial drop from the 14-15 per cent unemployment rates recorded over the past five years. This positive development notwithstanding, PEI's unemployment rate will remain one of the highest in the country as other provinces are also enjoying healthy employment gains. The strength of consumer confidence is being reflected in buoyant retail sales. These increased a strong 10 per cent year to year in the first half 2000, extending the fast growth pace from last year when PEI led the country with a close to 10 per cent rise in retail sales. Elevated consumer confidence was also reflected in the second straight year of double-digit increases in both housing starts and residential building permits last year. Housing expenditures likely grew to an all-time high of a little under $150 million in 1999. However, even if this leads to housing expenditures remaining unchanged, spending will still be at a high level and stimulate construction activity and provincial growth. The province is receiving important growth support from business capital spending this year. Businesses plan to increase outlays on capital formation about six per cent in current dollar terms, with planned spending of $393 million representing the highest level in four years. Capital spending will be fairly evenly spread out among the retail, industrial and business sectors. The Island's Slemon Park industrial zone remains a popular destination for new investment in manufacturing facilities. One of the single largest projects planned is in the tourist sector and involves Rodd Hotels and Resort's $8 million resort complex where construction will begin this fall. This will provide an added boost to the Island's important tourist industry. Since the Confederation Bridge was completed in 1997, tourist revenues have increased substantially, totalling $284 million in 1999 or almost double the pre-Confederation Bridge level. The province is considering a large scale natural gas development program that may provide a significant boost to economic activity in the near future. The energy development scheme envisages tapping into Nova Scotia's Sable Island offshore gas reserves and involves construction of a pipeline that would raise the potential for using gas to generate electric power, province and giving access to large industrial users. A development proposal by Wescoast Energy Incorporated is currently being evaluated. Advances in the manufacturing and export sectors are being recorded as a result of the economic boom. Manufacturing shipments continue to increase at a moderate pace in the first half this year, following a fast 12 per cent gain in 1999. Growth is being led by increased activity in the food products industry. This accounted for close to 60 per cent of the $987 million in total manufacturing shipments last year, mainly on the back of increased revenues for fishery products (particularly lobsters) and vegetables (especially frozen french fries). The latter contributed to higher income for potato farmers who accounted for more than half of total farm cash receipts that rose 7.4 per cent to $346 million in 1999. Transportation equipment, largely related to the aerospace industry, continued to gain in importance, as shipments increased nearly 40 per cent in 1999 to $205 million and accounted for 21 per cent of total manufacturing shipments. PEI's information technology sector is relatively small but growing. The number of firms in the sector has increased to over 70 from 40 a year ago. The government is supporting the establishment of an information technology centre and entering into an agreement with GE Capital Information Technology Solutions who will maintain a business development office in Charlottetown. Employment in the Island's IT industry is expected to rise to 4,000 within two years from about 2,200 currently, and annual industry revenues are projected to double from an estimated $140 million presently, mainly generated from exports. Export growth will likely be in double digits for the fourth straight year in 2000. Preliminary estimates indicate export volumes rose about 20 per cent to $564 million in 1999. Foreign shipments are being spurred by soaring exports to the U.S., which ballooned 30 per cent last year. Shipments to the U.S. have more than doubled in the past five years, raising the U.S. share to 85 per cent of total exports from 60 per cent five years ago. Fresh and processed fruit and vegetables and fish and fish products account for the bulk of the Island's overall exports. - Third Straight Budget Surplus In recognition of the province's improved finances, the Dominion Bond Rating Service upgraded PEI's credit rating for long-term borrowings from BBB High to A Low in July. PEI already had an A3 rating from Moody's and is rated BBB by the Canadian Bond Rating Service. The province's strengthened finances are reflected in a manageable level of debt. While tax-supported debt will rise somewhat to a projected $860 million this year, this is expected to be a one-time increase and is related to additional funding to provincial crown corporations. PEI's debt-to-GDP ratio will edge up modestly this year, but it will remain the lowest in the Atlantic region and fourth lowest among all provinces. PEI has managed to put its fiscal house in order despite reduced federal funding. This will decrease three per cent to $340 million this year, resulting in federal funds declining to 38 per cent of total revenues. PEI has been gradually reducing its reliance on federal finance since the early 1980s. Total revenues are projected to decline this year because of lower federal funding, but a matching cut in program expenditures will keep the budget in surplus. PEI joined the provincial tax-cutting bandwagon last year and commend the province for providing a second cut in personal taxes this year. After reducing its personal tax rate for the first time ever in 1999, PEI is cutting taxes a further one percentage point to 57.5 per cent of federal taxes for the 2000 tax year. Its top personal marginal tax rate falls from 49.6 per cent to 48.8 per cent this year. Along with Nova Scotia and New Brunswick, these three Atlantic provinces are tied with the fourth lowest top marginal rate among all provinces. The province will move to a tax-on-income system in 2001. This system will free the province from adverse impacts on budgetary revenues stemming from changes in federal taxes. It will also provide the province leeway to create a system tailored to its own requirements. Six provinces will be switching to a tax-on-income system this year and the remaining four next year.
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Startup and Expansion
driving forces behind new job creation and capital spending.
The food industry in P.E.I. is comprised of many firms involved
in the agri-food, seafood, and beverage processing sectors. It is
the single most important contributor to the provincial economy.
By way of illustration, in 1997 total provincial manufactured output
was $877 million; of this amount food processing accounted for about
$625 million, or over 70 percent. 
P.E.I. is ideally positioned to take advantage of opportunities
made available by the information technology industry and the knowledge-based
economy. Since 1995, the Prince Edward Island government has officially
recognized information technology as a key priority sector and Prince
Edward Island has since experienced tremendous growth in multimedia
development, call centres, and IT beta-testing activity.
- PEI's Work Force - Values Education