Competitive Alternatives, KPMG's Guide to International Business Location

Selecting the best site for a business operation requires comprehensive consideration of many financial and non-financial factors, examined from both a business and personal perspective. The relative importance of these factors will vary significantly; not only for different industries, but also for individual firms within a particular industry.

Since its inception in 1995, KPMG's Competitive Alternatives study has provided independent analysis of the major cost and other factors that impact the site location decision. The MMK Consulting team has been instrumental in the development of this major international study since its inception, and has managed most aspects of the ongoing Competitive Alternatives series on behalf of KPMG.

Released on March 22, 2012 is the latest edition of Competitive Alternatives offers detailed analysis of business location factors in Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, the Netherlands, Russia, the United Kingdom, and the United States.

For full details on the Competitive Alternatives 2012 Edition, visit the study website (developed and maintained by MMK Consulting) at www.CompetitiveAlternatives.com.

In various previous editions of Competitive Alternatives, MMK Consulting professionals have been involved in analyzing business competitiveness in all of the following countries:

• Australia
• Austria
• Brazil
• Canada
• China
• France
• Germany
• Iceland
• India
• Italy
• Japan
• Luxembourg
• Mexico
• Netherlands
• Singapore
• Sweden
• Russia
• United Kingdom
• United States

Alberta Competitiveness Council, Report on Competitiveness

MMK Consulting assisted the Alberta Competitiveness Council with the development of its first annual benchmarking report, with an extensive role in the research, analysis, and authoring of this in-depth competitiveness benchmarking analysis.

The report places particular emphasis on the connections between innovation, productivity, and sustained economic prosperity, and represents a baseline against which progress on future competitiveness initiatives can be assessed.

Tax Foundation, Location Matters

MMK Consulting assisted the US Tax Foundation and KPMG with the methodology and model development for this extensive analysis of corporate taxes and incentives across all 50 US states. The analysis examines tax burdens for seven different industries, and separately analyzes the taxes paid by both established (mature) enterprises and those paid by newly-located operations eligible to receive tax incentives.

CompetitiveAlternatives.com Cost Model

Competitive Alternatives Special Report: Focus on Tax

As part of the Competitive Alternatives 2008,2010, and 2012 projects, on behalf of KPMG, MMK Consulting developed a special report focusing on comparing tax burdens in major cities in leading countries.

These studies calculate and compare the Total Tax Index and Total Effective Tax Rate for each country and city, including corporate income taxes, other corporate taxes, and statutory labor costs.

Between the 2008 and 2010 editions of Competitive Alternatives Special Report: Focus on Tax, on behalf of KPMG and the Ontario Ministry of Finance, MMK Consulting also developed a special update of this study, to assist the Ontario Ministry of Finance assess the impact on business of various tax changes being implemented in Ontario in 2010. A copy of this special report is available on the Ontario Ministry of Finance website.

Graduate Student Society Of UBC Vancouver, External Review

MMK Consulting completed a thorough organizational review of the Graduate Student Society to assess the effectiveness and efficiency of the existing organizational structures and develop recommendations for improvements. The project included both in-depth analysis of internal organizational structures, workflows, and capacity, as well as the relationships with key external stakeholders.

Economic Recovery in New Orleanss

Under the auspices of the International Economic Development Council's Gulf Coast Economic Recovery Volunteer Program, Glenn Mair of MMK Consulting spent a week in June 2007 working as a volunteer with the City of New Orleans Office of Recovery Management. New Orleans is still working on economic recovery efforts following Hurricane Katrina and the related flooding of more than 80 percent of that great city in August 2005. Glenn's work in New Orleans assisted in moving forward specific economic development trigger projects in 17 targeted recovery areas.

If you want to directly assist in recovery efforts in New Orleans, many charitable organizations are continuing to provide ongoing on-the-ground support to the many families still living in emergency accommodation. Among many worthwhile causes, New Orleans Area Habitat For Humanity is working on the construction of new affordable housing for displaced residents.

Canada – A Strategic Choice

On behalf of the Canadian Department of Foreign Affairs and International Trade (DFAIT), MMK Consulting researched and authored a series of six brochures highlighting Canada's investment value propositions for each of six industry sectors.

Drawing on a wide variety of data sources, these brochures established key location drivers and competitive advantages for Canadian and international clusters in the following industries: aerospace, biotechnology, business services, environmental technology, machinery manufacturing, and wireless and multimedia.

Competitiveness Analysis for North American Automotive Investments

In conjunction with KPMG, on behalf of Industry Canada and the Canadian Automotive Partnership Council, completed a detailed review of the automotive sector in Canada as compared to key US jurisdictions. This study was originally undertaken in 2003, and then later updated in 2008.

The review was broad-based, encompassing a wide variety of competitiveness issues including business costs, business incentives, labor force issues, logistics and border issues, and environmental considerations.

General Motors Canada, Beacon Project Review

For General Motors of Canada Limited (GMCL), MMK Consulting completed an independent review of GMCL's proposed Cdn $2.5 billion Beacon Project. This review was in the lead-up to the March 2005 announcement by GMCL that the Beacon Project is proceeding.

The Beacon Project will include new investments by GMCL in new vehicle programs, enhanced vehicle engineering activities, flexible vehicle manufacturing, new environmental technologies, employment skills and training, and the creation of a Canadian Automotive Innovation Network in partnership with leading Canadian universities.

Adelaide's Business Cost Competitiveness

MMK Consulting, in conjunction with KPMG, completed a project for the Government of South Australia to benchmark business costs for Australia, including four Australian cities, against the 2006 Competitive Alternatives results.

Building upon this analysis, a further study, for the Australian federal Department of Transport and Regional Services benchmarked business costs in a total of 28 Australian cities.

Vancouver Industry Sector Targeting Study

On behalf of Vancouver Economic Development Commission (VEDC), MMK Consulting completed an assessment of industry sector targeting opportunities for Vancouver.

The study assess both Vancouver's competitiveness and strategic fit for across all individual industries and identifies high, medium, and low potential sectors for development in Vancouver. This study was commissioned by VEDC as a preliminary step toward development of a citywide economic development strategy.

Construction Cost Escalation Trends in British Columbia

MMK Consulting has undertaken a number of studies for different clients analyzing the trends and outlook for construction cost escalation in British Columbia during the province's post-2000 construction boom.

Summarizing some of these findings is a presentation by Stuart MacKay of MMK Consulting to the Public Construction Council of BC.

Location Sensitive Cost Analysis for Data Centres

On behalf of the Atlantic Canada Opportunities Agency (ACOA), MMK Consulting completed an analysis of location sensitive business costs in the data centre industry.

The study assessed both physical characteristics and infrastructure requirements of typical data centre operations, and the detailed business costs for operating a prototypical facility in a total of 71 international cities.

Consumption of Tax-Supported Municipal Services

On behalf of the City of Vancouver, MMK Consulting analyzed in detail the demand for tax-supported municipal services from the residential and nonresidential property classes.

This report was commissioned as a resource document for use by the City of Vancouver's Property Tax Policy Review Commission.

R&D Tax Incentives for Research Companies in Sarnia-Lambton

On behalf of the Sarnia-Lambton Economic Partnership, MMK Consulting prepared a detailed analysis of business costs and R&D tax incentives in Sarnia-Lambton and competing Canadian and US jurisdictions.

This report contains a thorough discussion and comparison of the R&D tax credit systems in Canada (SR&ED) and the United States (R&E), and major sections of the report have been posted on the Sarnia-Lambton website.

Cost Competitiveness of the British Columbia Film Industry

On behalf of Vancouver Economic Development Commission, MMK Consulting completed an independent analysis of the cost competitiveness of the British Columbia film industry.

The study provides a detailed analysis of production costs for a major A-list movie in Vancouver, BC, as compared to Toronto, Los Angeles, and New Orleans.

A Comparison of Personal Taxes and Cost of Living In Alberta, Canada and the US

Commissioned by the Government of Alberta, this series of studies examined Alberta's competitiveness in terms of total cost of living for high-tech employees at five different salary levels. The studies confirmed that personal taxation costs in Canadian jurisdictions are higher than in the US, but also finds that this difference is largely offset by lower costs in Canada for housing, and for the purchase of general goods and services.

This series of studies was conducted by MMK Consulting, in conjunction with Runzheimer International, on an annual basis from 2002 through to 2005.

Business Costs in Iceland, a Comparative Study of 87 Cities

Using our experience from the Competitive Alternatives project, MMK Consulting assisted KPMG Iceland in undertaking a detailed comparison of business costs in Iceland, as compared to the cities included in the Competitive Alternatives study. The results of the study find Iceland to be favorably positioned in terms of business operating costs for many types of high-technology businesses and for service operations in general.

Other Projects and Studies

Many studies completed by MMK Consulting represent confidential studies that have not been publicly released. Studies completed by MMK Consulting include:

• Business location and economic development projects:
  • A study of business costs for financial services operations in major financial centers around the world.
  • An organizational plan and business plan for a new business investment attraction agency.
  • A study of anticipated trade and investment impacts on Canada from the strong economic growth of the Asia Pacific region.
  • A study of business costs in three specific sub-sectors of the agri-food industry in Canada and the United States.
  • A study of business operating costs in China and India.
  • The initial design of the business incentives to be offered in a proposed new tax incentive zone.
  • Assistance with the negotiation of incentives for an industrial facility expansion in Nova Scotia.
• Post-secondary education projects:
  • A review of the feasibility of a proposed private university.
  • A study of employee workloads at a post-secondary educational institution.
  • Business plans for university Athletics & Recreation, and Child Care Services departments.
  • A strategic business plan for a university field teaching and research facility.
  • Development of a capital planning and prioritization model for a major university.
  • Development of project case statements for three proposed major new academic buildings at a BC university.
• Transportation infrastructure projects:
  • A study of marine terminal development options for a major shipping company.
  • Analysis of financial implications for proposed port infrastructure development projects.
  • Multiple account evaluation studies related to various major highway infrastructure and bridge construction projects in Greater Vancouver.
• Other projects:
  • A program evaluation of a government funded habitat restoration program.
  • Various studies of the cost of municipal services consumed by different taxpayer groups in a number of BC cities.
  • An organizational review of the accounting function at a venture capital firm.
  • An assessment of the economic impacts and prospects of the salmon farming and wild salmon industries in British Columbia