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International Profile: Saskatchewan: Canada's Fastest Growing Economy
by the Saskatoon Regional Economic Development Authority and the Saskatchewan Ministry of Enterprise an
Saskatchewan has been dubbed the new “it” province in Canada's national media and BMO Nesbitt Burns describes it as “Canada's new rising star.”
Broad-based economic growth has delivered new wealth. Saskatchewan is outperforming the national average in all of the key economic indicators and, if it was a country, it would be the fifth richest per capita in the developed world.
For a century, Saskatchewan's economy has been defined by agriculture. Now, the economic champions are super-sized natural resources such as oil, gas, potash and uranium — commodities that are in high demand around the world and found in rich abundance in Saskatchewan.
Potash - Saskatchewan is the world's largest producer of potash used as fertilizer. Five years ago, $30 million was invested in exploring potash in Saskatchewan. This year, approximately $360 million will be invested.
Uranium - Saskatchewan has the world's richest deposits of uranium and the world's largest uranium mining industry, accounting for about 30 percent of world production.
Energy - Saskatchewan is the second-largest producer of crude oil in Canada, the third largest producer of natural gas and the third largest coal producer. Oil production has more than doubled in the last 16 years, and the province has one of the hottest oil plays in North America in the Bakken Formation.
Agriculture - Farming, the traditional Saskatchewan industry, is contributing to growth and enjoying the limelight as well. Exports are growing at a nation-leading rate and are predicted to set a record for total investment in Saskatchewan for the fourth consecutive year.
Saskatchewan is home to Canada's premier ag-biotechnology cluster in Saskatoon. The cluster has achieved international status with expertise in biofuels and bioproducts, crop research and nutrition, health and wellness.
Spotlight On Saskatoon
Saskatoon is the province's largest city (population over 240,000) and has been making international headlines of its own. The city has been featured in Germany's leading business newspaper Börsen-Zeitung and the country's leading real estate magazine Immobilien Manager.
In April 2007, Foreign Direct Investment magazine, published by the Financial Times Group, ranked the city among the 10 most promising small cities in North America in its “City of the Future” competition.
Industries well-suited to conducting business in Saskatoon include:
Mining – Mining has done well in this region because of the rich natural resources available including uranium and potash. The city is home to PotashCorp and Mosaic, which produce almost two-thirds of the world's potash. Cameco Corp. and Areva, the world's largest uranium producers, are also located in Saskatoon.
Manufacturing – Manufacturing in Saskatoon is a highly developed and diverse economic sector. This sector accounts for almost 10 percent of Saskatoon jobs, while Saskatoon is home to more than 35 percent of the provincial manufacturing jobs.
Saskatchewan has the lowest manufacturers' and processors' corporate tax rates west of Quebec. As well, the province has highly competitive utility and tax rates and the lowest provincial sales tax among the nine provinces levying the tax. Even with an increasing Canadian dollar and transportation costs, the Saskatoon region's manufacturing sector grew in 2007 by just less than 5 percent. The city's sector created more than 2,000 new jobs in the past five years. Eighty-five percent of Saskatoon-based manufacturing companies export their products.
Transportation – Saskatoon is widely recognized as one of the best and most cost effective locations for the warehousing and distribution of goods throughout North America and the world, particularly because of the extremely low outgoing transportation costs. Even with rising gas prices, the costs are still competitive.
Life Sciences – The life sciences sector, relatively new in the economy, is experiencing substantial growth and the Saskatoon region is reaping the benefits. With high-quality labor available and revenues growing, the life sciences sector is one of the strongest in the region. It includes companies in the bioprocessing, biotechnology, health sciences, natural health products (nutraceuticals) and pharmaceuticals industries. Companies in this sector are involved in a variety of research, development and manufacturing activities that use biological processes and techniques.
Saskatoon is home to the University of Saskatchewan, the only Canadian university to house six life science colleges. These include agriculture, dentistry, medicine, nursing, pharmacy and nutrition, and veterinary medicine, as well as a major teaching hospital on the same campus.
University research revenue has nearly tripled in the past decade. The University of Saskatchewan is a member of the “$100 Million Club,” securing more than $100 million in research funding.
A strong life sciences community provides a comfortable backdrop for easy networking and cross-research possibilities.
Technology – Saskatoon's technology community is a strong and diverse group, including companies in information technology and telecommunications with services that include satellite control, monitoring and communications, digital communications, automation and robots.
There are more than 70 companies in this sector that provide a variety of services including programming, software, systems integration, data processing, information retrieval and maintenance and repair. Saskatoon is also the home of Canada's only synchrotron, the Canadian Light Source.
Workforce
One of Saskatchewan's greatest advantages is its youthful population. Out of all Canadian provinces, Saskatchewan has the highest percentage of people less than 20 years old. This resource of young people will give the province a tangible competitive advantage in the future, and will in fact be a major part of the engine that drives the provincial economy.
On A Roll
There are unprecedented opportunities in Saskatchewan; so many that global investors now know exactly where Saskatchewan is on the map.
Saskatchewan has it all: the resources from potash and uranium to forests and abundant and productive agricultural land; the people who make up a youthful, highly skilled and energetic workforce; the competitive environment; and the economic climate.
To learn more about conducting business in Saskatchewan, visit www.sreda.com and www.ei.gov.sk.ca.