Montreal tops international list of competitive cities : KMPG

[ChrisDVD]

Canada ranks 2nd among 10 countries for cost competitiveness, says KPMG

THE CANADIAN PRESS 03.29.2016

 

TORONTO - Accounting giant KPMG says Canada has proven to be second most competitive market in a comparison test of 10 leading industrial countries.

 

In its report, KPMG says Canada lags only behind Mexico when it comes to how little businesses have to pay for labour, facilities, transportation and taxes.

 

The report, which compared the competitiveness of a number of western countries along with Australia and Japan, found that a high U.S. dollar has helped Canada stay affordable despite rising office real estate costs and lower federal tax credits.

 

When it comes to corporate income taxes, it found that Canada, the U.K. and the Netherlands had the lowest rates overall due to tax incentives to support high-tech and research and development.

 

KPMG also looked at the competitiveness of more than 100 cities worldwide. It ranked Fredericton, N.B., as the most cost-effective city in Canada due to low labour costs and continued low costs for property leases.

 

Montreal topped the list among 34 major cities in North America, followed by Toronto and Vancouver. The three Canadian cities beat out all U.S. cities.

 

Although there have been concerns over the impact of a weakening loonie on the economy, having a low Canadian dollar has actually been "a driver in improving Canada's competitiveness and overall cost advantage," KPMG said.

 

As a result, that has made it more attractive for businesses to set up shop north of the border than in the U.S., it said.

 

http://www.montrealgazette.com/business/canada+ranks+among+countries+cost+competitiveness+says+kpmg/11817781/story.html

[Né entre les rapides]

I read the KPMG report.

 

No surprise here. The low CAD has been the MAIN (my emphasis) driver in improving Canada's competitiveness.

 

As far as Montreal topping Toronto, the report notes that the gap (in Montreal's favour) is small and has been diminishing.

 

My conclusion: continuing good news, but caution needed.

[Né entre les rapides]

and what happens when you survey major corporations and they realize they can't do business in the international language of global business and have trouble attracting talent? What are the cost(s) associated with this?

 

Well, it is difficult to provide a fully encompassing answer, but I shall note the following:

 

1) Cost competitiveness is one thing, but not everything: New York City, London and other global cities are more expensive, yet they remain the preferred locations for most top business activities.

 

2) It remains possible and profitable as well to conduct SOME international business from a Montreal location, but just not all kinds.

 

3) Paris has retained its status as a top tier city, despite it not being a predominantly English speaking community.

 

4) Notwithstanding point 3) above, the (English language) convenience of Dublin, Ireland, has attracted several American corporations seeking a foothold in the European Union + Eurozone.

 

5) In several countries not having English as a national language, I have found that for certain positions (eg. marketing, global procurement) within major corporations which have the whole world as their market, full knowledge of English IS a primary job requirement, while a knowledge of the local language is merely a plus.

 

6) Montreal acts as a sort of interface between predominantly unilingual French Rest-of-Quebec and the Rest of the World (including the Rest of Canada). A fair balance must be maintained between its «Frenchness» and its «Englishness» . When I wrote «Continuing good news, but caution needed» in my previous post, I certainly had this issue in mind.

[mont royal]

In today`s global market, multilingualism is a growing measure of talent. That is in fact one measure of why Montreal ranks so highly, we have probably the highest percentage of multilingual speakers in North America. Unilingual anglos, who assume that by only speaking what they maintain to be the ìnternational language of business, they are therefor perfectly equipped for the global market, are finding themselves at an increasing disadvantage. Clearly, speaking English is essential, but it no longer, by itself , cuts the mustard as a criteria for defining talent.

[ToxiK]

In today`s global market, multilingualism is a growing measure of talent. That is in fact one measure of why Montreal ranks so highly, we have probably the highest percentage of multilingual speakers in North America. Unilingual anglos, who assume that by only speaking what they maintain to be the ìnternational language of business, they are therefor perfectly equipped for the global market, are finding themselves at an increasing disadvantage. Clearly, speaking English is essential, but it no longer, by itself , cuts the mustard as a criteria for defining talent.

 

The true language of business is the language of your customers.

[Flo]

Lots of people nurture the ill- and pre-conceived idea that English shall make them highly employable in Germany, France or China. In these markets, knowledge of English is not essential at all and most importantly you better master the native language. If I was a Quebec (could be MTL-based) employee, assessing a candidate speaking solely English, on a language knowledge standpoint alone, I would most probably ditch his application because French is not only a business language in the province but also a means of bonding with colleagues, clients, prospects and a solid medium for appreciating the corporate environment and philosophy. Mastering several languages is an attribute expressing cultural enrichment and open-mindedness. I believe the Province shall fare fantastically with a language policy putting forward business proficiency of English as a prerequisite while promoting the perfect mastery of the French language in schools and colleges. The importance of language is 1 out of 20-or-so criteria used to evaluate the success of doing business. The way some people disproportionately overestimate that criterion is disparagingly ludicrous

[hockey19]

http://montrealgazette.com/storyline/yeah-yeah-canada-is-no-2-among-top-global-markets-but-montreal-we-are-king-of-cities

 

"In its report, KPMG says Canada lags only behind Mexico when it comes to how little businesses have to pay for labour, facilities, transportation and taxes."

 

Studies can be easily taken out of context. I'd like to highlight an important nuance.

 

This ranking is based on most "competitive" market for business. Not "best" market. Competitive implies cheap: cheaper labour, cheaper facilities i.e. rent, transportation (subsidized) and taxes (we do have low corporate tax rates).

 

Two Mexican cities are ranked ahead of Montreal because the cost of doing business is cheap there, not because they are the best for doing business.

[Né entre les rapides]

Lots of people nurture the ill- and pre-conceived idea that English shall make them highly employable in Germany, France or China. In these markets, knowledge of English is not essential at all and most importantly you better master the native language.

 

My comment will specifically address your point, and nothing else. (A broader assessment has already been provided above.)

 

So I decided I would seek a real life example. For my first attempt, I selected a well-known multinational company based in Germany, namely Adidas. In jobs search, I selected «Germany» as job location, and «sourcing» as job function. For a Director position, here is what I found in terms of language(s) requirements: fluent English (required), German (advantageous).

 

Of course, a single case is not a sufficient base for a Quid Erat Demonstrandum, but it gives an indication. You are welcome to further explore this matter!

[Flo]

My comment will specifically address your point, and nothing else. (A broader assessment has already been provided above.)

 

So I decided I would seek a real life example. For my first attempt, I selected a well-known multinational company based in Germany, namely Adidas. In jobs search, I selected «Germany» as job location, and «sourcing» as job function. For a Director position, here is what I found in terms of language(s) requirements: fluent English (required), German (advantageous).

 

Of course, a single case is not a sufficient base for a Quid Erat Demonstrandum, but it gives an indication. You are welcome to further explore this matter!

 

For the last couple of years, I've been mining through German job databases and as your first trial suggests: you got yourself an exceptional high-profile expat hit. To be fair with non-Germans looking forward to get professional experience in Germany, English-speaking jobs are getting very scarce and even more so as the days go by... even Munich is saturated with American wives who squandered 10 years of their lives jobless coz they don't speak German... and German job centers would prompt them to submit their resumes in German... even more so in France where what is going to be the next big thing is that sense of aversion gaining momentum within the local community in regard to those monolingual anglophones who set up their businesses (Goodyear case study) in a New-York minute and shut down even faster the second business climate drifts lower than expectations. If you believe you will be kicking ass by ignoring the host country's native language, behaviours and other local market subtleties... you won't stand one month in your new venture and I would be surprised if the Government, trade union, administration allowed you to settle in

[Né entre les rapides]

For the last couple of years, I've been mining through German job databases and as your first trial suggests: you got yourself an exceptional high-profile expat hit. To be fair with non-Germans looking forward to get professional experience in Germany, English-speaking jobs are getting very scarce and even more so as the days go by... even Munich is saturated with American wives who squandered 10 years of their lives jobless coz they don't speak German... and German job centers would prompt them to submit their resumes in German... even more so in France where what is going to be the next big thing is that sense of aversion gaining momentum within the local community in regard to those monolingual anglophones who set up their businesses (Goodyear case study) in a New-York minute and shut down even faster the second business climate drifts lower than expectations. If you believe you will be kicking ass by ignoring the host country's native language, behaviours and other local market subtleties... you won't stand one month in your new venture and I would be surprised if the Government, trade union, administration allowed you to settle in

 

I do not dispute your findings at all, in fact I am not even surprised. Let me admit I had purposely selected a category of employment (sourcing for a large multinational company) where I was expecting that a command of the English language would be of outmost importance, the reason being simply that that the dealing would take place primarily in Asian countries, where the local manufacturers could not be expected to speak German, but would have at least a minimal knowledge of English.

 

I believe the same would hold true in sales and in finance (for international transactions). But of course for domestic operations (your Goodyear case being a good example), command of the local language should be an absolute requirement. Same with government jobs. In total, it is clear that the vast majority of jobs in any country require a (fair to good to excellent) command of the local language. Only a minority of jobs entail significant international interfaces.

 

So back to Montreal:

 

1) Can we conduct business in English with (most of) the Rest of the World? Certainly YES, better in fact that most other non-English speaking countries. And as a bonus, we have a unique advantage in French, which opens doors in large parts of Europe and Africa.

 

2) Is there a possibility, as in your example of American spouses «who sqandered 10 years of their lives jobless coz they dont't speak German» that the same could happen in Montreal? --Much less so, because there remains a large English speaking community in the city. But the dream job he/she was having back at home may not be available here--not only a matter of language...

 

3) Still, is there a possibility that some (even many) American executives would refuse to move to Montreal because of the language issue ? --No doubt, but as long as you can find others who are willing (even eager!)... But at the same time, there may be many other reasons than language, which attract or repulse.

 

4) Regardless, I believe that Montreal's future depends much more on the success of its home grown entrepreneurs, than on its ability to attract foreign subsidiaries (Toronto had already won that game by the 1950's). When necessary, we already have, by most accounts, the ability to use English in our dealings with the Rest of Canada, the USA and beyond.