According to the Economist Intelligence Unit,
Canada ranks first among the G7 countries for its business environment for the forecast period 2019–2023. The country is dedicated to protecting its key industries, investing in innovation, and developing its workforce. It’s not surprising, therefore, that Canada saw the highest FDI inflow increase among the G7 — 60 percent — in 2018. In fact,
Canada boasts one of the most educated workforces in the world, with more than 55 percent of Canadians having graduated from postsecondary institutions. The nation’s welcoming approach to immigration further expands its talent pool.
In addition,
Canada has the ability to serve as a platform for global trade into and from North America. The re-negotiated NAFTA agreement — known as the Canada-United States-Mexico Agreement — maintains preferential access to and from the U.S. market. Canada has also expanded trade relations with Asia through the TPP, with Europe through CETA, and with nearly 40 other nations through various trade agreements.
The United States is ranked third among the G7 countries by the Economist Intelligence Unit for its business environment for the forecast period 2019–2023. Companies from all over the world want to do business in the U.S., and there’s
an emerging trend among individual states to support this international investment, which produces 23 percent of U.S. exports and funds 16 percent of U.S. innovation efforts.
Although the U.S. is well positioned to attract FDI,
foreign companies must still undertake comprehensive due diligence in order to make an optimal U.S. investment decision. Among the factors to consider are taxes and incentives, infrastructure at prospective sites, and, of course, the labor situation. In order to fulfill their workforce needs, foreign firms need to be aware of workforce trends and realize that
data alone may not give them a complete picture of the labor situation in a particular market. These companies should delve deeper into available workforce data to determine net migration versus overall population, graduation rates, proximity to competitors, and other staffing metrics.
Ultimately, whether setting up a facility in Canada, the U.S., or their home country, a company needs to ensure through a thorough site selection process that it is creating a framework for their new facility’s success.