Some Facts

The "best place in the world to live", according to United Nations criteria

Centrally located in North America and in Canada

Central standard time zone

570,269 square kilometres of land and 81,631 square kilometres of fresh water

Democratic government run on the parliamentary system, with a Lieutenant Governor and an elected Legislative Assembly

Legislation and day-to-day operations determined by a Premier and Cabinet, with input from the Official Opposition

Population of more than 1,025,000

Population split 63 per cent urban, 37 per cent rural, and containing a broad mix of racial and ethnic backgrounds

12 cities, 146 towns, 376 villages and 297 rural municipalities

More hours of sunlight than most other places in North America

Moderate climate with four distinct seasons

Temperatures range from +25 degrees Celsius (on average) in summer, to -25 degrees Celsius (on average) in winter

Economic Overview
In 1994-95, Saskatchewan became the first Canadian province to balance its budget in the 1990s

In 2000-01, Saskatchewan balanced its provincial budget for the seventh fiscal year in a row

The province's financial plan calls for balanced budgets to fiscal year 2003-2004

From 2001-02 to 2003-04 total provincial debt will decline by approximately $162 million. This debt reduction, combined with continuing economic growth, will result in the debt-to-GDP ratio falling from 35.7 per cent at the end of 2000-01 to 31.2 per cent

The 2000-01 budget is highlighted by sweeping reforms to personal income tax, new investments in health care and plans for system renewal, reduced property and fuel taxes for farmers and major investments in education, highways, and infrastructure

Saskatchewan's GDP (inflation adjusted) grew from $18.3 billion in 1992 to $23.8 billion in 1998, an increase of $5.5 billion or 30 per cent

Employment grew from 448,500 in 1992 to 480,100 in 1999, an increase of 31,600 jobs

Saskatchewan's economic growth is forecast to continue for at least the next five years

Saskatchewan's economic outlook targets annual growth of 2.7 per cent in the GDP, and annual job growth of over 4,000, through the end of the year 2004

Business Environment
Saskatchewan is committed to creating and nurturing an environment that allows businesses of all sizes to grow and prosper.

The provincial sales tax has been cut from nine percent to six per cent, which will encourage consumer spending, economic growth and job creation

Removal of the provincial sales tax on toll-free phone services has encouraged national companies and organizations -- Sears, CIBC and the Canadian Cancer Society -- to establish telephone call centres in Saskatchewan

Removal of the provincial sales tax on direct agents used in manufacturing and processing has resulted in many business expansions

The corporation income tax rate for small businesses has been reduced by 20 per cent, and now stands at eight per cent

The corporation income tax rate on profits made by manufacturers and processors may be reduced, from 17 per cent to as low as 10 per cent (the lowest in western Canada), depending on how much manufacturing these companies do in Saskatchewan

Manufacturers and processors are eligible for a six per cent tax credit on capital purchases for their businesses

There is a 15 per cent research and development non-refundable provincial tax credit for a wide array of industries

The Saskatchewan film industry is eligible for a 35 to 40 per cent employment tax credit

Provincial sales tax on aviation turbo fuel has been reduced to 3.5 cents per litre to encourage the airline industry to increase fuel purchases in Saskatchewan

Cost of Doing Business
The overall cost of operating a business in Saskatchewan is much less than in other Canadian provinces and the United States.

Industrial land in Saskatchewan cities sells for as little as $60,000 per acre (unserviced for $25,000), while prices can range from $400 to $34,000 per acre in smaller centres; industrial rents and land costs are the lowest in Canada

Construction wages are about 20 per cent less than the Canadian average

Saskatchewan has the most stable wage rates in Canada, with the lowest average annual wage in many industrial sectors

There is no payroll tax for employers

Saskatchewan's central time zone and central location in North America make it easy to do business throughout the continent

Competitive transportation costs and a solid infrastructure of road, rail and air transport make Saskatchewan a convenient distribution centre - only a day away by land from a market of five million people, and only two days from access to more than 80 million people in Canada and the United States

Crown corporations in Saskatchewan supply electricity, natural gas, water and telecommunications services to commercial and residential customers at rates that compare favourably with the rest of Canada

Other things that can reduce your business costs in Saskatchewan include ready access to raw materials, a growing research infrastructure and pockets of business strength that you can tap into, such as agricultural biotechnology and information technology

Investment Opportunities

Six Strategic Sectors: As we move toward the 21st century, much of Saskatchewan's economic growth and job creation will come from increased exports. A more accessible global market place will present the province with many opportunities to expand its export base. But that global market place will also be more competitive.

To prepare for these challenges and opportunities, Saskatchewan's economic strategy identifies six sectors where Saskatchewan can build on its strengths to realize economic growth. These sectors are:

- agri-value processing and manufacturing
- advanced technology
- energy
- mining
- primary forestry and wood products
- tourism and cultural industries

The following sections provide an overview of each sector, including Saskatchewan's accomplishments, key organizations and companies, the competitive advantages for prospective investors and specific opportunities for investment or business ventures.

Food Processing

A Large Dynamic Industry:

Saskatchewan's $2.0-billion food processing industry (including beverages) has more than 300 processors and about 7,500 employees

Food processing is Saskatchewan's largest manufacturing industry accounting for 33 per cent of the province's total manufacturing output

Saskatchewan food processing shipments grew by 32 per cent from 1993 to 1996, the fastest rate of growth of any province in Canada. Shipments grew a further 26 per cent in 1997

Saskatchewan foods and beverages are sold within the province, across Canada and around the world; exports out-of-Canada account for 20 per cent of food industry sales and are growing rapidly

A wide variety of traditional as well as new food products, are processed in Saskatchewan including:
- Flour products and bakery mixes
- Edible oils
- Beef, pork and chicken products
- Specialty livestock products
- Dairy products including products made from goat’s milk
- Jams, jellies and other preserves
- Prepared salads
- Seed and table potatoes
- Food products with certified organic or kosher status
- Specialty food, snack foods and confections
- Nutraceuticals and functional food

Animal feeds are processed in Saskatchewan from a wide variety of grains and forages

Analysts predict most agricultural expansion in the 21st-century will centre on crops grown for non-food products. Saskatchewan is well positioned in this area, with growing industries producing such products as:
- automotive parts from flax straw/fibre
- cosmetics from oats
- ethanol from grain, as a gasoline additive
- linseed oil from flax, for the paint and linoleum industries
- printer's ink from canola oil
- paper from flax fibre

Competitive Advantages
A clean and pristine environment

High-quality crops and livestock herds

An established food processing industry

Comprehensive supporting infrastructure

A wide variety of raw products at low cost

Strong research and development support

Central North American location with excellent transportation services to serve both domestic and off-shore markets

A hard-working, well-educated, skilled and productive work force

A lower overall cost of doing business/operating

A lower cost of living and a healthy and safe lifestyle

Project financing from a variety of sources

Opportunities

There are many opportunities for new or expanded activity in Saskatchewan's food processing industry, including:

Meat processing and slaughtering:
- Beef, pork and chicken processing
- Specialty meat processing

Animal feeds:
- Commercial pre-mixes, ingredients, bean/pea protein, processed forages

Flour milling and bakery products:
- Wheat and durum wheat flours
- Specialty bakery products

Oilseed processing:
- Edible oils from canola and flax

Pulse crop products:
- Secondary processing (splitting, sorting, processing
- Packaged products

Fruit Products:
- Wines, jams, pie fillings, syrups

Specialty and gourmet foods:
- Organic products
- Specialty livestock

Nutraceuticals and functional foods:
- Herb/spice based products
- Dietary supplements and medicinal herbs

Non-food and non-traditional food products:
- Dermaceuticals (oats)
- Building materials from wheat straw (strawboard)
- Interior automotive panels using flax fibre
- Special canola oils for detergents
- Biodegradable lubricants
- Bio-diesel fuel
- Hemp fibre
- Pharmaceutical products based on flax

Advanced Technologies

Canadian Light Source Synchrotron

The biggest science project in Canada in a generation is under construction at the University of Saskatchewan campus in Saskatoon.

The Canadian Light Source Synchrotron is a unique football field-sized national facility that will light the way to a new era of science and innovation for academic, institutional and industry applications.

Synchrotron light is an extremely bright source of infra-red, ultraviolet and x-ray energy that can be used to probe the structure of matter and analyze physical, chemical, geological, environmental and biological processes.

Millions of times more intense than conventional medical X-rays, synchrotron light allows for matter to be "seen" at the atomic level, thereby enabling scientists to analyze molecules, biological samples and materials with higher accuracy and precision than ever before possible.

Construction has begun, with the building that will house the synchrotron to be completed in December 2000. The CLS synchrotron is slated to begin partial operation by the end of 2003, and be fully operational by 2008.

The CLS is supported by a highly developed research community at the University of Saskatchewan, and by Canada's largest research park, Innovation Place in Saskatoon.

Synchrotron light has numerous applications in a wide variety of scientific research and practical fields, including:
- probing the structure of matter
- investigating chemical reactions
- developing new drugs and medicines
- designing new microchips and more powerful computers
- manufacturing tiny biomedical implants
- creating new materials such as stronger metal alloys for airplane wings
- investigating the effects of pollutants on the natural world
- manufacturing microscopic machines such as motors that can fit through the eye of a needle
- development of new ultra-thin lubricants
- analyzing ore samples to determine the value of mining finds

Electronics and Instrumentation

Highlights
- Electronics & Instrumentation generates sales of $400 million annually, or about 6% of the province’s manufacturing output
- Employs 1,500 people in 24 companies
- Since 1994 industry sales have grown more than 66%
- Exports account for more than 80% of the sector’s total sales
- Provider of strategic enabling/productivity enhancing technology tools to Saskatchewan’s traditional economic sectors
- A key employer of Saskatchewan university and technical school graduates
- Major strengths lie in the development of specialized monitor and control niche products and related engineering solutions

Products and Services
- Electrical and communications cable for power distribution and telecommunications
- Monitoring equipment for the agriculture industry
- Collision avoidance systems for mining equipment
- Toxic gas monitoring systems for industrial and military applications
- Supervisory control and data acquisition systems (SCADA)
- Environmental monitoring systems
- Electronic load cells, weigh scales & toll road equipment
- Telephony test gear, internet head end equipment for cable systems
- Routers and bridges for office networks
- Satellite tracking, telemetry & command (TTC) systems and
- Satellite test equipment and terrestrial communications gateways
- Wireless communications products

Information Technology and Telecommunications

Saskatchewan's ITT sector earns $1.6-billion annually

It employs 8,000 people in nearly 200 companies

One of the province's fastest growing industries, with an average annual growth rate of more than eight per cent

Saskatchewan is a world leader in:
- telecommunications
- satellite control, monitoring and communications
- digital communications
- instrumentation
- automation and robotics
- computer software
- geographic mapping systems
- health care management systems
- computerized banking

ITT applications are stimulating growth in areas as diverse as:
- veterinary science
- potash mining
- banking
- crop farming
- publishing
- lumber milling
- office services
- petroleum refining

ITT expertise being exported around the globe by Saskatchewan companies includes:
- banking
- insurance
- health care
- agriculture
- geographic information systems (GIS)
- utilities
- government systems

Just about any time electronic financial transactions take place in Canada, whether it's a chartered bank, credit union, trust company or even the Bank of Canada, it's handled by Saskatchewan-based CGI Information Systems -- to the tune of $2.1-billion a day, or $20-trillion a year

Saskatchewan-based ISM Information Systems Management is Canada's largest provider of information systems management services and a major supplier of network management services to the private and public sectors

ISM has established a national "Centre of Competency" in Regina to provide "year 2000" transformation services to clients from across Canada

Saskatchewan's ITT breakthroughs
Built components of the space shuttle program's Canadarm in the late 1970s

Became the first "wired" jurisdiction on the globe in 1984, when SaskTel installed what was then the world's longest commercial fibre optic system

SaskTel was the senior advisor on design and installation of the telecommunications system for the Eurotunnel in 1994

The first province in Canada to start "pay-for-view" cable television service

The first province to replace multi-party rural telephone lines with individual line service

Saskatchewan Wheat Pool was the first in Western Canada to use satellite technology in livestock sales, and first to computerize the elevator system

The first province to introduce a "personal medication diary" on a broad scale

The province maintains and manages a drug database recognized world-wide for its research value

The first in North America to introduce automated banking machines

First in the world to:
- develop an automated health card system
- introduce on-line point-of-sale transactions
- become a foreign supplier of instrumentation for Japanese satellites

Instrumentation systems
Saskatchewan's sensor technologies date to early space science work begun in the 1940s at the University of Saskatchewan

Today, Saskatchewan produces state-of-the-industry instruments ranging from satellite remote-sensing devices, to geographic information systems (GIS), to environmental detection and monitoring equipment

Software
Software research is performed at seven facilities at Saskatchewan's two universities

The Software Technology Centre in Regina provides training in software engineering and promotes university-industry co-operation

The University of Regina is home of the first undergraduate software systems engineering program in Canada

Saskatchewan's software community can boast numerous leading-edge developments in geographic mapping systems, atmospheric remote sensing and object-oriented technology

Internet
Saskatchewan was the only province in Canada that included provincial content on the Internet as eligible for funding under the Canada-Saskatchewan Infrastructure Works Program

Saskatchewan's Crown telecommunications provider, SaskTel, has made the Internet accessible to every business and resident in the province -- offering a province-wide Internet service for the same cost in both urban and rural areas

Other 'Net services include:
- access to the Internet through commercial services
- interactive subscription services through cable television systems
- a province-wide public library electronic network
- community-based "free-nets"

Cable television
The first province to start pay-for-view services

An important deliverer of the expanding services that make up the information superhighway

Fibre optic networks allow interactive subscription services

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